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Old 05-11-2021, 08:37 PM
 
Location: Chicago, Little Village
4,542 posts, read 8,041,021 times
Reputation: 3439

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Quote:
Originally Posted by Bitey View Post
Again, I'm not talking about Section 8 as the post I responded to made no mention of it. I was responding to your "affordable housing" set-asides that make "market-rate" housing more expensive, which in turn increases the demand for "affordable housing," until you eventually have a virtual bifurcation in the housing market like you see in the city today.

We already have affordable housing out here in the suburbs, and you don't have to live in a marginal neighborhood to afford it either.
Section 8 vouchers could help meet the affordable set asides. This would encourage vouchers to be used in those new high opportunity developments, as opposed to them being used in places like Harvey or Dolton. It would also help remove the barriers that voucher holders face in moving into wealthy areas. Lack of units due to restrictive zoning and market forces which allow landlords to avoid them.

I think the Biden Administration will focus on this, just like the Obama Administration started to.
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Old 05-11-2021, 08:38 PM
 
18 posts, read 1,839 times
Reputation: 15
Quote:
Originally Posted by Bitey View Post
Again, I'm not talking about Section 8 as the post I responded to made no mention of it. I was responding to your "affordable housing" set-asides that make "market-rate" housing more expensive, which in turn increases the demand for "affordable housing," until you eventually have a virtual bifurcation in the housing market like you see in the city today.

We already have affordable housing out here in the suburbs, and you don't have to live in a marginal neighborhood to afford it either.
When has setting aside 20% for affordable housing made market rate more expensive? Can you cite a few examples where this is proven to have occurred.
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Old 05-11-2021, 08:54 PM
 
1,441 posts, read 405,677 times
Reputation: 1024
Quote:
Originally Posted by Don Cuccino View Post
When has setting aside 20% for affordable housing made market rate more expensive? Can you cite a few examples where this is proven to have occurred.
Remind me of this below..... on the city and downtown region and not suburbs.... on adding affordable housing in at market developments. Seems still it takes on a fee to pay instead to a fund for affordable housing perhaps elsewhere like maybe West Garfield?

Sorry if it has nothing to do with this odd discussion....

Saw this Curbed Chicago link when still in having a Chicago one....

I thought I read the the Chicago One skyscraper going up did something like either pay a onetime fee instead or promise to build the units elsewhere?

Title: The debate over how Chicago should build affordable housing, explainedhttps://chicago.curbed.com/2020/1/21/21075361/chicago-development-affordable-housing-requirements-aro-lightfoot

From the link.
How does the city regulate and build affordable housing?
- Chicago’s current Affordable Requirements Ordinance (ARO) mandates a minimum of 10 percent affordable housing in projects seeking a zoning change or financial assistance from the city.
- In certain areas of the Near North Side, Near West Side, and Milwaukee Avenue corridor, the percentage increased to 15 or 20 percent as part of a pilot program introduced by the city in 2017.

- Instead of choosing to build affordable units on-site, developers frequently take advantage of an option to pay "in-lieu fees," which goes to city initiatives like the Affordable Housing Opportunity Fund and the Chicago Low-Income Housing Trust Fund.
- Developers sometimes prefer to make these one-time payments because it is typically more profitable than charging lower rents over the lifetime of a building.

What’s wrong with the city’s affordable housing rules?
- Despite Chicago’s booming downtown, the ARO has failed to produce adequate affordable housing.
- Between 2007 and 2017, the ordinance accounted for just 440 new affordable units in market-rate developments.
- During that same time, the developers of 88 projects paid fees to avoid building affordable units on-site. Had the developers not been given that option, the ordinance would have produced more than 1,200 affordable units
, according to the Chicago Housing Initiative advocacy group.
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Old 05-11-2021, 08:57 PM
 
Location: Brackenwood
6,758 posts, read 2,785,234 times
Reputation: 14796
Quote:
Originally Posted by Don Cuccino View Post
When has setting aside 20% for affordable housing made market rate more expensive? Can you cite a few examples where this is proven to have occurred.
The cost to subsidize something is borne by the unsubsidized.

Increasing a producer's costs makes the producer's stuff more costly. I shouldn't have to explain an axiom to you.
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Old 05-11-2021, 09:12 PM
 
18 posts, read 1,839 times
Reputation: 15
Quote:
Originally Posted by Bitey View Post
The cost to subsidize something is borne by the unsubsidized.

Increasing a producer's costs makes the producer's stuff more costly. I shouldn't have to explain an axiom to you.
Affordable housing isn't subsidized housing, buyers still have to pay. I have rentals that I charge below market because I get a much wider choice of renters to choose from and it's much faster to rent. Still make a profit though not as much as other landlords, worth it because I have less hassle. Nobody subsidizes those apartments. So I'll ask again, where has setting aside 20% for "affordable" housing, not free, increased costs of other property
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Old 05-11-2021, 09:51 PM
 
Location: Brackenwood
6,758 posts, read 2,785,234 times
Reputation: 14796
Quote:
Originally Posted by Don Cuccino View Post
Affordable housing isn't subsidized housing
Yes it is. Forcing a builder to either a) sell a portion of their goods/services below market rate or b) pay into an affordable housing fund while passing on the difference to the rest their buyers is the literal definition of "subsidy."

Quote:
Originally Posted by Don Cuccino View Post
buyers still have to pay.
Yeah, at subsidized rates -- the difference being picked up by the non-subsidized buyers.

Next time you're at the doctor's office, ask them about the relationship between what Medicare and Medicaid patients pay versus what the rest of us pay. It'll go a long way toward solving the mystery of why health care is so expensive.

Quote:
Originally Posted by Don Cuccino View Post
I have rentals that I charge below market
Good for you I guess?
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Old 05-12-2021, 05:18 AM
 
Location: Chicago, Little Village
4,542 posts, read 8,041,021 times
Reputation: 3439
Quote:
Originally Posted by NoHyping View Post
From the link.
How does the city regulate and build affordable housing?
- Chicago’s current Affordable Requirements Ordinance (ARO) mandates a minimum of 10 percent affordable housing in projects seeking a zoning change or financial assistance from the city.
- In certain areas of the Near North Side, Near West Side, and Milwaukee Avenue corridor, the percentage increased to 15 or 20 percent as part of a pilot program introduced by the city in 2017.

- Instead of choosing to build affordable units on-site, developers frequently take advantage of an option to pay "in-lieu fees," which goes to city initiatives like the Affordable Housing Opportunity Fund and the Chicago Low-Income Housing Trust Fund.
- Developers sometimes prefer to make these one-time payments because it is typically more profitable than charging lower rents over the lifetime of a building.

What’s wrong with the city’s affordable housing rules?
- Despite Chicago’s booming downtown, the ARO has failed to produce adequate affordable housing.
- Between 2007 and 2017, the ordinance accounted for just 440 new affordable units in market-rate developments.
- During that same time, the developers of 88 projects paid fees to avoid building affordable units on-site. Had the developers not been given that option, the ordinance would have produced more than 1,200 affordable units
, according to the Chicago Housing Initiative advocacy group.
Yup, and some well-intentioned Alderman decided to create a "pilot zone" requiring 20% affordable set aside in Pilsen and Little Village, areas plagued by gang activity, based on a bike trail which was never built. Brilliant. Our tax dollars at work!

Yes, developers can buy out of the affordable unit requirement, and also reallocate them to "off-site" projects in less valuable areas. They frequently do that too.

City Council just passed an ordinance increasing the required percentage of affordable units, increasing the number of "triggers" which require them, and reducing the opt-outs. But why is Chicago the only Illinois municipality doing this? There are a lot of high opportunity suburbs which should be taking their fair share as well. For all the "Hate has No Home Here" and progressive voting patterns we're seeing in our suburbs, they're just not stepping up to the plate on this one.

I would really like to see the following: 1) a Statewide affordable housing requirement for all new apartment developments in IL, varying from 10-30% based on the average median income of the community; and 2) a massive outreach campaign to voucher holders encouraging them to move to high opportunity areas. Spend some of the gazillion dollars we're getting from the stimulus bill on that. I think that will create a more fair distribution of affordable housing in the state.
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Old 05-12-2021, 09:21 AM
 
Location: Chicago, Little Village
4,542 posts, read 8,041,021 times
Reputation: 3439
If anyone's interested, here's a summary of the revisions to the Chicago ARO...

The revised ordinance increases the affordable requirement downtown, in certain neighborhoods with low current levels of affordable housing, and in neighborhoods facing displacement of low-income residents from 10% to 20%. It also reduces the number of units that may be paid out with in-lieu fees from 75% to 50%.

Additionally, the revised ARO will:

Allow off-site units to be built in any part of the city lacking in affordable housing or threatened with displacement

Require that if the triggering development is in a transit-oriented development (TOD) zone the off-site units must also be in a TOD zone

Add mandates and incentives for developers to create deeply affordable and family-sized affordable units

Increase accessibility standards and adopt preferential leasing for tenants who need an accessible unit

Require income averaging at 60% and 50% area median income (AMI) tiers to accommodate more low-income earners

Add a 100% AMI tier when matched with subsidies for the lowest-income earners

https://www.chicago.gov/city/en/dept.../svcs/aro.html

The ordinance applies when a zoning change is granted that increases project density or allows a residential use not previously allowed, or the development is a "planned development" within the downtown area.
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Old 05-12-2021, 09:54 AM
 
1,619 posts, read 1,966,914 times
Reputation: 1920
The insanity continues. 2/3 of the city has nothing but affordable housing, but god-forbid a supertall luxury building in the Gold Coast doesn't.
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Old 05-12-2021, 09:55 AM
 
Location: Brackenwood
6,758 posts, read 2,785,234 times
Reputation: 14796
"Let's solve the housing affordability problem by creating even more disincentive to bring new housing to market!"
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