Chicago mayor announces $1.25 billion for neighborhood development

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Chicago Construction News staff writer

If approved by city council, a planned $1.25 billion bond issuance announced last week could restructure the approach to equitable neighborhood development across Chicago.

“These bond proceeds will provide the city with much-needed resources to invest in our neighborhoods,” Mayor Brandon Johnson said. “This new direction will allow for greater flexibility than the tax increment financing program and provide critical assistance for new businesses, restaurants, affordable homes, and cultural facilities where they’re needed most; not just where there’s a healthy TIF district.”

Pending approval, the bond would provide $250 million for community improvements throughout Chicago every year for five years (2024-2028).

“The TIF expirations create an unprecedented opportunity to restructure City funding with more equitable methods like the $1.25 billion Housing and Economic Development Bond,” said Commissioner Boatright, referencing the substantial public support needed to complete major private investment projects on the West and South Sides. “As a more flexible form of financing, the bond will add to our existing tools to support a broader range of projects and better meet the unique needs of Chicago neighborhoods.”

DOH would use $625 million of bond proceeds to provide:

  • $360-390 million for the construction and preservation of affordable rental homes.
  • $210-240 million for the construction and preservation of homeownership, or affordable owner-occupied housing.
  • $20-30 million for the preservation of single-room occupancy structures.

DPD would use $625 million of bond proceeds to provide:

  • $400-500 million for neighborhood development grants
  • $80-115 million for small business support
  • $55-90 million for jobs and wealth building, including workforce training and missing middle housing infill development

If approved by council, bond proceeds could be allocated for neighborhood development projects starting later this year. Additional details about revenue and spending projections are available on the bond’s website.

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