Chicago Developers Pay Millions to Avoid Affordability Mandates – NMP Skip to main content

Chicago Developers Pay Millions to Avoid Affordability Mandates

Oct 16, 2015
Chicago Skyline

Chicago real estate developers would rather shell out millions of dollars in municipal fees than follow a city mandate to incorporate affordable housing units in their residential properties.

The Chicago public radio station WBEZ obtained a list of payments made by local developers to the city’s Affordable Housing Opportunity Fund and discovered that these developers paid $77 million over the past 10 years in order to avoid including affordable housing in their properties. These developments were almost all based in expensive residential neighborhoods with a conspicuous lack of diverse populations.

Under local mandates, developers are required to pay a fee if their properties do not meet a 10 percent level for affordable units. A new ordinance increased some fees from $100,000 to $225,000 per each unit not built. Chicago’s affordability measurement for homeowners is defined as a family of four earning $76,000 a year, while for rentals the definition covers a family of four earning $45,000.

The situation is mirrored for apartment complexes funded by federal low income housing tax credits. A WBEZ analysis found these developments were overwhelmingly based in Chicago’s South and West Sides, where the neighborhoods are far less expensive and overwhelmingly non-White.

While no developer responded to requests for an explanation on their opting out of the affordable housing mandate, 27th Ward Alderman Walter Burnett admitted failure in trying to bring affordable housing to his community.

“I allowed this to happen,” he said. “I allowed for one type of group of people with a certain amount of money in the neighborhood, and it needs to be mixed. So I said from here on out people are going to have to do some affordable over here. I can’t let them opt out anymore.” 

About the author
Published
Oct 16, 2015
Jobs Report Comes In Weak After Mortgage Rates Surge

Employers added just 29,000 jobs in September, sending Treasury yields lower and offering a potential counterweight to the recent rise in mortgage rates

Oct 02, 2026
Price Cuts Hit Four-Year High As Mortgage Rates Top 7%

More than one in five listings took a price cut in September, but pending sales still posted their sharpest annual decline since March 2025

Oct 01, 2026
Serious Mortgage Delinquencies Rise 19% After Five Months Of Improvement

ICE data shows 574,000 mortgages were at least 90 days past due in August, while early-stage delinquencies remained below year-ago levels

Sep 29, 2026
Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Sep 25, 2026
Mortgage Rates Break 7% Just As Builders Find A Way To Move Buyers

New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again

Sep 25, 2026
Borrowers Want Digital Closings, But Some Originators Remain Hesitant

ServiceLink finds 45% of surveyed LOs cite borrower reluctance as a barrier, even though most recent buyers say digital options would influence their choice of mortgage provider

Sep 23, 2026