Chicago is home to nearly 3 million people. According to the U.S. Census Bureau, more than two-thirds of Chicago households earn less than the Area Median Income for Cook County, which is $75,100 for a family of four.

The new Sweet Home Chicago ordinance proposes to allocate 20 percent of tax increment financing funds generated each year toward affordable housing for low-income Chicagoans.  TIF funds are a part of property tax designated to the district they came from and are used within the district.

The ordinance was introduced on March 10 and is working its way through the City Council. It was assigned to a joint committee on financing and housing and had its first hearing in July.

The committee’s next step is to meet on Sept. 21 with the mayor’s office, lawyers and the housing committee, according to Alderman Walter Burnett, Jr. (27th Ward), the

ordinance’s sponsor.

“The mayor’s office really has a lot of control of this, and basically they’ve been saying, ‘We’re not ready for you to

vote on this,’” said Julie Dworkin, director of policy for the Chicago Coalition for the Homeless. “But we have been having conversations with the mayor’s office.”

The ordinance currently has 22 aldermanic co-sponsors and 66 endorsements from various organizations.

“Before the group came to me about  Sweet Home, I was already speaking with people, telling them they should use TIF dollars to help developers,” Burnett said. “When they brought Sweet Home to me, it was right on target for what I’ve been working on for two years.”

The ordinance is led by the Sweet Home Chicago Coalition.  One of the organizations within the coalition is Action Now,  a grassroots organization working on economic, social and racial issues in Chicago.

“In the communities where we work, affordable housing is needed badly because foreclosures have destroyed communities,” said Aileen Kelleher, communications director for Action Now. “We’re trying to get affordable housing there so people have somewhere to live,

especially in the recession.”

The TIF funds generate around $500 million per year, according to Dworkin, which means this initiative would have about $100 million per year to spend. This could create up to 1,400 units with other funding sources including federal,  state,  private

funding and loans.

“It would also put people to work,” Dworkin said. “The industry has been really hurting. It would create jobs and not just in the construction industry, but all of the industries that support the

construction industry.”

She  estimated  3,000  jobs   would  be   created.

In order for a development to qualify for the money, 50 percent of the units would have to be affordable. For rentals, housing needs to be affordable to residents earning less than $37,700 for a family of four. However, citywide, 40 percent of the total units created have to be affordable to households earning less than $22,600 a year for a family of four. Units for purchase must be affordable to households earning less than $60,300 for a family

of four.

The ordinance itself has not had opposition, according to Dworkin. Alderman Ed Burke (14th Ward) and Alderman Ray Suarez (31st Ward) are the heads of the finance and housing committees, respectively.

According to Dworkin, Burnett asked Burke when they would vote on the ordinance, and he stated they would at the next finance

committee meeting.

Another factor in the ordinance’s future is Mayor Richard M.  Daley’s announcement that he will not run for election again, because the TIF funds are allotted by the mayor and his office.

“I think more people will do what they feel is right,” Burnett said.

Dworkin thinks their progress so far keeps things looking positive.

“If anything, it’s probably going to be a good thing because Daley will have less

self-interest in holding on to the TIF money,” Dworkin said. “It still remains to be seen.”

A similar law is in effect in California, where 20 percent of TIF funds in every district are used for low-income housing, according to Dworkin.

“[The ordinance] uses TIF funds for their intended purpose, which is to go back into the community, instead of creating a huge war chest of funds for the mayor,” Kelleher said. “It directly affects people in

Chicago’s communities.”

Chicago is home to nearly 3 million people. According to the U.S. Census Bureau, more than two-thirds of Chicago households earn less than the Area Median Income for Cook County, which is $75,100 for a family of four.The new Sweet Home Chicago ordinance proposes to allocate 20 percent of tax increment financing funds generated each year toward affordable housing for low-income Chicagoans.  TIF funds are a part of property tax designated to the district they came from and are used within the district. The ordinance was introduced on March 10 and is working its way through the City Council. It was assigned to a joint committee on financing and housing and had its first hearing in July.    The committee’s next step is to meet on Sept. 21 with the mayor’s office, lawyers and the housing committee, according to Alderman Walter Burnett, Jr. (27th Ward), the ordinance’s sponsor. “The mayor’s office really has a lot of control of this, and basically they’ve been saying, ‘We’re not ready for you to vote on this,’” said Julie Dworkin, director of policy for the Chicago Coalition for the Homeless. “But we have been having conversations with the mayor’s office.” The ordinance currently has 22 aldermanic co-sponsors and 66 endorsements from various organizations.“Before the group came to me about  Sweet Home, I was already speaking with people, telling them they should use TIF dollars to help developers,” Burnett said. “When they brought Sweet Home to me, it was right on target for what I’ve been working on for two years.” The ordinance is led by the Sweet Home Chicago Coalition.  One of the organizations within the coalition is Action Now,  a grassroots organization working on economic, social and racial issues in Chicago. “In the communities where we work, affordable housing is needed badly because foreclosures have destroyed communities,” said Aileen Kelleher, communications director for Action Now. “We’re trying to get affordable housing there so people have somewhere to live, especially in the recession.”The TIF funds generate around $500 million per year, according to Dworkin, which means this initiative would have about $100 million per year to spend. This could create up to 1,400 units with other funding sources including federal,  state,  private funding and loans. “It would also put people to work,” Dworkin said. “The industry has been really hurting. It would create jobs and not just in the construction industry, but all of the industries that support theconstruction industry.”She  estimated  3,000  jobs   would  be   created.    In order for a development to qualify for the money, 50 percent of the units would have to be affordable. For rentals, housing needs to be affordable to residents earning less than $37,700 for a family of four. However, citywide, 40 percent of the total units created have to be affordable to households earning less than $22,600 a year for a family of four. Units for purchase must be affordable to households earning less than $60,300 for a family of four. The ordinance itself has not had opposition, according to Dworkin. Alderman Ed Burke (14th Ward) and Alderman Ray Suarez (31st Ward) are the heads of the finance and housing committees, respectively.According to Dworkin, Burnett asked Burke when they would vote on the ordinance, and he stated they would at the next finance committee meeting. Another factor in the ordinance’s future is Mayor Richard M.  Daley’s announcement that he will not run for election again, because the TIF funds are allotted by the mayor and his office.“I think more people will do what they feel is right,” Burnett said.  Dworkin thinks their progress so far keeps things looking positive. “If anything, it’s probably going to be a good thing because Daley will have less self-interest in holding on to the TIF money,” Dworkin said. “It still remains to be seen.”   A similar law is in effect in California, where 20 percent of TIF funds in every district are used for low-income housing, according to Dworkin. “[The ordinance] uses TIF funds for their intended purpose, which is to go back into the community, instead of creating a huge war chest of funds for the mayor,” Kelleher said. “It directly affects people in Chicago’s communities.”