Joint Committee: Finance; Housing and Real Estate meeting, April 14, 2025
- When: Mon, Apr 14, 2025, 12:30 PM (Chicago time)
- Where: City Council Chamber, 2nd Floor, City Hall, 121 North LaSalle Street - Chicago, IL 60602
- Status: Reconvened
- Video: https://vimeo.com/manage/videos/1075399678
- Transcript: full text (20,927 words, official captions)
Meeting notes
AI-written from the transcript. Speakers are inferred from cues in the recording, so treat names as estimates and check the video at the linked time.
The joint Committees on Finance and on Housing and Real Estate reconvened to consider a substitute ordinance establishing a not-for-profit Residential Investment Corporation to finance, acquire, own and operate permanently affordable, mixed-income, environmentally sustainable housing (the green social housing proposal). Department of Housing staff described changes made since the prior hearing, including adopted bylaws, four-year staggered board terms, the chief procurement officer on the board, FOIA, open meetings, ethics and Inspector General cooperation requirements, council approval of building sales, and annual reporting, and walked through example financing models. Members raised questions about Inspector General enforcement, fee and cost caps, board term length, the city's ability to amend the corporation's governance later, commitments from the Illinois Housing Development Authority, labor concerns about privatization, and the corporation's independence from the city. No vote was taken; the joint committee recessed until April 16, 2025 to finalize details, including with labor partners.
Topics: Green social housing, Residential Investment Corporation, Affordable housing finance, Labor and privatization, Inspector General oversight, Board governance
Agenda items discussed
- 19:05 Substitute ordinance establishing a not-for-profit Residential Investment Corporation for permanently affordable, mixed-income, environmentally sustainable housing (SO2025-0015560): deferred
Alderpersons who spoke
- Pat Dowell (chair): Said a definitive answer on the legality of future amendments could only be given in relation to a specific proposed amendment. (1:53:43)
- Byron Sigcho-López (chair): Said the committees would recess rather than vote in order to address labor concerns, and that the chairs had reached out to the Inspector General for a briefing. (2:04:09); Said the committees are very close and would use the time before Wednesday to finalize details with labor and incorporate members' feedback. (2:27:22)
- William Conway (alderperson): Asked whether preferred IHDA financing depends on the affordability component and whether there is concern about that program's stability under the current federal administration. (43:18); Asked whether the corporation keeps its equity stake after its investment is replaced by mezzanine debt and whether co-developers can also take money out. (45:07); Asked how changes in financing costs translate into greater affordability when the corporation may not own 100% of a building. (46:49)
- Michael D. Rodriguez (alderperson): Credited Manaa-Hoppenworth for her work but said an outstanding concern is ensuring the program does not privatize public union jobs, noting the federal administration cannot be counted on for support. (50:23)
- Anthony J. Quezada (alderperson): Asked whether the financial models include savings from the Assessor's affordable housing reassessment and whether the department has engaged the Assessor's office. (52:58); Credited the sponsor and community organizations and said government has a role to fill where the market has not addressed the affordable housing crisis. (54:14)
- David H. Moore (alderperson): Said the changes he requested were made, including consistent council approval language and quarterly reporting to the Finance Committee rather than only the chair. (55:24)
- Nicole T. Lee (alderperson): Asked that audit requirements for the corporation be codified to ensure transparency on how taxpayer money is spent. (57:04); Asked whether the corporation must eventually own and operate every development it invests in, including stalled projects where it holds a minority stake. (58:38); Noted the cost per affordable unit in the example models and asked how long it takes to reach stabilization and lease market-rate units. (1:02:32)
- Scott Waguespack (alderperson): Asked whether the ordinance includes any penalties for malfeasance or unethical conduct and whether the Inspector General would have any enforcement power over the corporation. (1:09:37); Asked whether there are safeguards to prevent city staff from doing the corporation's work. (1:14:03); Asked what guarantees the projected 2 to 5 percent equity rates and how a downgrade of city credit ratings would affect the corporation. (1:16:56)
- Raymond A. Lopez (alderperson): Asked whether the ordinance caps contract management or construction fees the corporation could pay. (1:25:38); Asked that fee ceilings be codified, citing wide swings in per-unit costs of recent affordable housing projects, and said he was disappointed the idea was not being entertained. (1:27:39); Asked which private developers and community partners advised on the ordinance and asked for a list through the chair. (1:32:55)
- Gilbert Villegas (alderperson): Asked the size and bedroom mix of units in the cost-per-unit examples and whether veterans' vouchers would be included. (1:35:04); Asked whether the state has committed to provide IHDA loans and how long funds would take to revolve in acquisition projects. (1:38:07)
- Jessica L. Fuentes (alderperson): Praised the collaborative revisions and said the ordinance addresses housing supply and affordability in her rapidly gentrifying, rent-burdened ward, while expressing confidence that privatization concerns would be resolved with labor. (1:41:07)
- Brendan Reilly (alderperson): Asked whether the council could later amend the ordinance to further restrict the corporation's bylaws once it is operational. (1:45:55); Said ex officio board members would be loyal to the current administration and called four-year board terms unacceptable. (1:53:58); Asked who consulted the Inspector General on the ethics and jurisdiction issues and noted no one had reviewed the ordinance with her. (1:55:04)
- Andre Vasquez Jr. (alderperson): Credited the administration for responding to feedback and agreed the Inspector General should be consulted. (2:05:31); Asked what liability concern drives the nonprofit structure. (2:06:34); Questioned how the corporation can be independent when department heads appointed by the mayor sit on its board and city staff provide support. (2:08:09)
- Walter R. Burnett (alderperson): Commended the department for responding quickly to concerns from the last meeting. (2:16:52); Asked what had been offered to labor and what a labor peace agreement would mean. (2:17:34)
- Desmon C. Yancy (alderperson): Asked whether the program could support mixed-use developments and community development corporations as co-developers. (2:19:49); Asked how the model would work in communities like South Shore where market and affordable rents are close, and how it differs from the CHA. (2:20:21)
- Leni Manaa-Hoppenworth (alderperson): Said rising rents and low vacancy in her ward make the tool important, especially near transit, though it is not suited to every neighborhood. (2:23:16); Said the corporation could reduce reliance on federal subsidies, cited models in Montgomery County and Atlanta, and said no vote would occur that day but she expects passage. (2:25:33)
Exchanges between members
- 50:39 Rodriguez congratulated Manaa-Hoppenworth for her work on the ordinance.
- 54:18 Quezada recognized Manaa-Hoppenworth's work on the ordinance.
- 54:51 Quezada echoed Rodriguez's point that government has a role to play in housing.
- 55:37 Moore thanked Chair Pat Dowell for her leadership on the ordinance.
- 1:34:23 Lopez followed up on a question raised by Waguespack about the Law Department's role.
- 1:43:51 Fuentes thanked Manaa-Hoppenworth for leading the ordinance.
- 1:45:04 Reilly thanked Manaa-Hoppenworth for her initiative.
- 1:46:02 Reilly built on a question Lee had asked about amending the ordinance after the corporation is operational.
- 1:50:39 Lopez followed up on Reilly's question about future amendments.
- 1:53:43 Dowell told Lopez a yes-or-no answer would depend on a specific amendment.
- 2:04:09 Sigcho-López responded to Reilly's concerns by announcing a recess and outreach to the Inspector General.
- 2:06:04 Vasquez agreed with Reilly that the Inspector General should be consulted.
- 2:13:42 Vasquez thanked lead sponsor Manaa-Hoppenworth.
- 2:15:58 Lee followed up on Vasquez's point about ex officio board members.
- 2:19:41 Yancy thanked Manaa-Hoppenworth for her work.
- 2:22:50 Manaa-Hoppenworth thanked chairs Dowell and Sigcho-López.
- 2:23:23 Manaa-Hoppenworth said her ward faces conditions similar to Fuentes's.
- 2:25:38 Manaa-Hoppenworth cited Reilly's point about uncertainty in federal policy.
- 2:27:22 Sigcho-López thanked Chair Pat Dowell and the housing team.