Amendment of Municipal Code Chapter 2-44 by adding new Section 2-44-170 regarding requirements for Low Income Housing Tax Credit Qualified Allocation plans

Votes › Housing and Real Estate › 47th Ward: Matthew J. Martin

Record number: SO2025-0017573
Type: Ordinance; category: Municipal Code Amendments
Status: Final
Sponsor: Matthew J. Martin (47th Ward)
Co-sponsors (2): Bennett R. Lawson (44th Ward), Leni Manaa-Hoppenworth (48th Ward)
Committee: Committee on Housing and Real Estate
Introduction Date: May 21, 2025
Final Action Date: Jul 15, 2026
Official record: Office of the City Clerk

Roll call: Passed Jul 15, 2026

49 yea, 0 nay. On motion of Alderperson Sigcho-Lopez, and unsuccessful motion to reconsider by Alderperson Mitchell, the matter was Passed. Voted at the City Council meeting of Jul 15, 2026.

Yea (49): Daniel La Spata (1), Brian Hopkins (2), Pat Dowell (3), Lamont J. Robinson (4), Desmon C. Yancy (5), William E. Hall (6), Gregory I. Mitchell (7), Michelle A. Harris (8), Anthony Beale (9), Peter Chico (10), Nicole T. Lee (11), Julia M. Ramirez (12), Marty Quinn (13), Jeylú B. Gutiérrez (14), Raymond A. Lopez (15), Stephanie D. Coleman (16), David H. Moore (17), Derrick G. Curtis (18), Matthew J. O'Shea (19), Jeanette B. Taylor (20), Ronnie L. Mosley (21), Michael D. Rodriguez (22), Silvana Tabares (23), Monique L. Scott (24), Byron Sigcho-López (25), Jessica L. Fuentes (26), Walter R. Burnett (27), Jason C. Ervin (28), Chris Taliaferro (29), Ruth Cruz (30), Felix Cardona Jr. (31), Scott Waguespack (32), Rossana Rodríguez Sánchez (33), William Conway (34), Anthony J. Quezada (35), Gilbert Villegas (36), Nicholas Sposato (38), Samantha Nugent (39), Andre Vasquez Jr. (40), Anthony V. Napolitano (41), Brendan Reilly (42), Timothy R. Knudsen (43), Bennett R. Lawson (44), James M. Gardiner (45), Angela Clay (46), Matthew J. Martin (47), Leni Manaa-Hoppenworth (48), Maria E. Hadden (49), Debra L. Silverstein (50)

Not voting (1): Emma Mitts (37)

Plain-language summary

Written by AI (claude-opus-5-5) from the ordinance text only: SO2025-0017573 Substitute Ordinance.pdf. AI can make mistakes; the official document always wins.

This ordinance sets new rules for how Chicago's Department of Housing handles construction budgets, change orders, and move-in approvals for affordable rental housing built with City money or tax credits. It lets developers keep and manage a project's contingency (backup) funds and make many construction changes without first getting City approval, while larger or key changes still need approval. It also requires the Department to publish regular public reports on affordable housing projects and on how long its reviews take.

Applies to affordable rental projects of 10 or more units getting City help, under housing tax credit plans published on or after January 1, 2027.
Each project gets a contingency reserve, generally held by the developer; leftover savings may be kept by the developer for uses allowed under City rules.
Most change orders do not need prior City approval if the developer certifies they follow the law. Prior approval may still be required for changes to unit count, unit mix, affordability, accessibility, or major features, or for large cost changes.
Move-in is allowed only after five conditions are met, including a final certificate of occupancy and an accessibility inspection by the Mayor's Office for People with Disabilities.
The Department must publish a yearly project status report and quarterly data on review times, starting by June 30, 2027 and ending June 30, 2032.

Money

$20,000: change orders that would use the greater of $20,000 or 20% of the remaining contingency reserve may require prior City approval

Who: Developers and sponsors of City-funded affordable rental housing, the Department of Housing, and residents who use the public reports are affected.

Where: Citywide in Chicago

Impact report

Written by AI from the official document. AI can make mistakes; the official document always wins.

This ordinance would set new rules for how the City's Department of Housing handles construction budgets, change orders, and move-in approvals for affordable rental housing it funds, and would require regular public reports on these projects.

Who it affects

Affordable housing developers (sponsors): They would generally hold their project's contingency reserve, could keep cost savings and unspent reserve after completion within set rules, and would not need prior approval for most change orders if they certify the changes follow the law and funding rules.
General contractors on City-funded affordable housing: Change orders that are large, or that affect units, accessibility, or amenities, could still need Department approval, and change orders may not be split up to avoid review.
Tenants of affordable housing developments: Changes to unit count, unit mix, affordability limits, accessibility features, or amenities could require Department approval before they happen.
Residents with disabilities: Occupancy of a new affordable housing development would require confirmation from the Mayor's Office for People with Disabilities that it passed an accessibility inspection.
Chicago residents and taxpayers: The Department would publish yearly reports on affordable housing projects, including addresses, wards, unit counts, and costs, and quarterly data on how long its reviews take.
Department of Housing: It would have to follow these rules for projects under plans published on or after January 1, 2027, and could write rules to carry them out.

What changes

Most change orders on City-funded affordable housing would no longer need Department approval in advance if the sponsor certifies they follow the rules.
Large change orders and those affecting units, affordability, accessibility, or amenities could still need prior approval.
Move-in would be allowed only after a final certificate of occupancy, insurance, architect sign-offs, a punch list, and an accessibility inspection are complete.
The public would get at least yearly reports on affordable housing projects, including addresses, wards, units, and total cost.
The public would get at least quarterly data on how long the Department takes to process waivers, change orders, payment requests, and occupancy approvals.

Money

Change orders that would use the greater of $20,000 or 20% of the remaining contingency reserve balance may require prior Department approval.
Sponsors may keep cost savings and unspent contingency reserve after a project is finished, if allowed by law and funding rules and used for approved purposes.

When: Upon passage and publication; the new budget and change order rules apply to projects under Qualified Allocation Plans published on or after January 1, 2027, and public reporting must begin by June 30, 2027 and ends June 30, 2032.

Timeline

May 21, 2025: Referred, City Council. Two committees having been called, the Committee on Housing and Real Estate and the Committee on Committees and Rules, the matter was Referred to the Committee on Committees and Rules (Pursuant to Council Rule 42).
Apr 15, 2026: Referred, City Council. The matter was Referred to Committee.
Apr 15, 2026: Recommended for Re-Referral, City Council. The matter was recommended for Re-Referral by controlling legislative body.
Jun 10, 2026: Held in Committee, Committee on Housing and Real Estate. The matter was Held in Committee.
Jul 8, 2026: Recommended to Pass, Committee on Housing and Real Estate. The matter was recommended to Pass by controlling legislative body.
Jul 8, 2026: Substituted, Committee on Housing and Real Estate. The matter was substituted in Committee.
Jul 15, 2026: Passed, City Council (49 yea, 0 nay), at the City Council meeting. On motion of Alderperson Sigcho-Lopez, and unsuccessful motion to reconsider by Alderperson Mitchell, the matter was Passed.

Documents

w47 - o17573.pdf (Legislation)
SO2025-0017573 Substitute Ordinance.pdf (Legislation)

Lobbying and money

Computed links; money near a vote is not evidence that it influenced the vote.

Who lobbied on it

Illinois Housing Council: DISCUSSIONS AROUND ADVOCACY FOR ORDINANCE O2025-0017573 (1 filing, Jul 1, 2026 to Sep 30, 2026; Allison Clements; matched by record number)
Illinois Housing Council: REFORMS TO ARCHITECTURAL AND TECHNICAL STANDARDS MANUAL POLICIES; LEGISLATIVE LANGUAGE DISCUSSIONS AROUND ORDINANCE O2025-0017573 (1 filing, Apr 1, 2026 to Jun 30, 2026; Allison Clements; matched by record number)
Illinois Housing Council: ADVOCACY FOR ORDINANCE O2025-0017573 (2 filings, Apr 1, 2026 to Sep 30, 2026; Allison Clements; matched by record number)
Illinois Housing Council: IMPROVEMENTS TO THE AFFORDABLE HOUSING DEVELOPMENT PROCESS; ADVOCACY FOR ORDINANCE O2025-0017573 (1 filing, Jan 1, 2026 to Mar 31, 2026; Allison Clements; matched by record number)
Illinois Housing Council: ADVOCACY FOR ADVOCACY FOR ORDINANCE O2025-0017573 (1 filing, Jul 1, 2026 to Sep 30, 2026; Allison Clements; matched by record number)
Illinois Housing Council: LEGISLATIVE LANGUAGE DISCUSSIONS AROUND ORDINANCE O2025-0017573 (1 filing, Apr 1, 2026 to Jun 30, 2026; Allison Clements; matched by record number)

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