Green Social Housing Ordinance Policy Recommendations

Affordability

Ensuring deep affordability within the Green Social Housing programming and offer procedures for prioritizing voucher holders.

Neighborhood Protections

Non-displacement principles, conducting displacement impact studies

Illinois Green New Deal

Tenant Protections

Relocation and screening policies, just cause protections, how to operate when income changes, process for addressing property management concerns, procedures for selecting property management companies.

Equitable Distribution of Units Citywide

Strategies for creating units in neighborhoods with lower rents and additional public benefits

Tenant Governance

Outlining of the powers for the Tenant Governance Committee.

Sustainability

Requirements for GSH to meet DPD Sustainability Policy and other sustainability measures

Affordability

    • Every development must be evaluated to determine a plan to maximize the number of units at 30% of AMI for inclusion with a goal of a third of affordable units (10% of total) in each development to be targeted at 30% or below AMI.

    • Set-aside $10 million from the $135 million in bonds funds for 40 deeply affordable units through MAUI-type payments (Multi-Year Affordability through Upfront Investment): increased capital at the front end to reduce debt. 

      • When possible, if there are outside funding sources for services the RIC should pursue adding permanent supportive housing units

    • Voucher holders

      • The RIC shall give first priority holders of portable housing vouchers (or functionally equivalent benefits) for placement in market rate units or affordable units at 80% of AMI for all applications. There would be an overlapping 30 day period for veterans and voucher holders where only they can apply.  In future rounds, voucher holders get priority over other tenants for units at those income levels.

    • Publicize through CHA and specific websites that people look at for voucher units.  Shelters and other programs for people experiencing homelessness, DFSS service centers, health centers, food banks, other social service agencies.  They would have to submit a publicity plan.  Strong marketing in community area

Tenant Protections

  • When buildings are rehabbed, tenants would have a right to return with costs covered for additional rent and moving in a temporary unit.  Tenants who choose not to return or who can't return in the case the a unit is being completely removed would be provided relocation assistance.  Onsite support would be provided for tenants to assist in plans for moving.  Tenants would have input into rehabs.

  • Item descriptioIf a current building needs to be rehabbed or a new building is purchased with existing tenants that needs to be rehabbed, all tenants will have a right to return unless their unit is being completely eliminated in the rehab.

    • If a tenant chooses not to exercise their right to return because multiple moves are too disruptive for their family or other reasons, they can opt-out of the right to return at the time when they must move for the rehab.  If they opt-out, they will receive:

      • Six times the median rent for a unit of the same bedroom size increased by $2,500 for any household with children, seniors, or a person with disabilities

    • If a tenant is forced to move out permanently because their unit will be eliminated they will receive:

      • Twelve times the median rent for a unit of the same bedroom size increased by $2,500 for any household with children, seniors, or a person with disabilities.

      • First preference for other available RIC units for which they qualify

    • For tenants that exercise their right to return, management must provide comparable temporary accommodations defined as “a substantially similar unit in terms of the size of the unit, building facilities, costs, and location within the city.”  Management must provide reasonable moving expenses including costs associated with transferring of utilities and internet and pay the difference between current rent and rent in temporary unit.  Tenants displaced will have a guaranteed right to return except in cases where the unit is completely eliminated. Existing tenants in purchased buildings do not have to meet screening criteria to return.

    • When a building is being rehabbed and everyone must move: 

      • The owner/developer must have a relocation coordinator for every building that can answer relocation-related questions and concerns for tenants at regular office hours 

      • The owner/developer must offer to meet and be available to meet individually with each tenant household if they choose to create a moving plan at least 120 days before the relocation begins, and again between 7 and 80 days prior to review the relocation plan again. 

      • Provide language access with all meetings and materials

      • The owner/developer must provide tenants with moving supplies including boxes, tape, insulation, and scissors. The owner/developer must pay or reimburse tenants for the cost of packing and moving items within 30 days of the completed move. 

      • Contractors must be informed and included in decision making about moving plans

      • Tenant Involvement- The Corporation will conduct a thorough community listening and visioning process with existing tenants that allows them to voice their thoughts and provide meaningful feedback and direction on the designing and development of these modifications. They will have the opportunity to speak with developers and shape the redesign process as it occurs. Input on sustainability features, unit size and amenities, etc.n

    • Criminal Background Screening

      • No criminal background screening will be conducted

    • Eviction screening

      • No eviction screening will be conducted

    • Credit Screening

      • No eviction screening will be conducted

    • Denials: Potential tenants must be informed in writing of why they are denied

  • Leases must be renewed except for a small set of exceptions related to non-payment of rent or lease violations. Rent increases must have a rationale and tenants receive 90-120 days notice depending on the circumstance.

  • IRIC/owner can only terminate a lease, not renew a lease, or evict tenants in cases of (a) Repeated non-payment of rent, after failure to abide by all reasonable good faith attempts to come to an alternate or deferred payment agreements (b) material noncompliance (violating the lease, using the unit for criminal activity, or unreasonably denying the landlord access to the unit), (c) tenant refusal to renew the lease after the landlord’s request, and (d) removal or demolition of unit. 

    • Eviction notices must be sent by certified mail or other official mechanisms to ensure validity. 

    • Rents for affordable units can only increase according to the annually released AMI rents by DOH

    • RIC/owner must provide 90 days’ notice of a rent increase under 10% when the tenant has lived there for 3 years or less, and 120 days’ notice of a rent increase under 10% when the tenant has lived there for more than 3 years or above 10% when the tenant has lived there for any amount of time. 

    • Rent increases  must have a documented increase in expenses due to repairs, property tax increase etc as a reason for the increase in rent

      • A detailed justification shall include but is not limited to notification of living condition improvements such as updated amenities or building repairs. Included in this would be the associated cost of these improvements and their contribution to the resulting rental cost increases."

    • The Corporation shall review evictions from each development annually and require at least quarterly reports from property managers on evictions in their properties, including a breakdown of demographics of those impacted, and breaking down percentages of tenants of Market-Rate, Affordable and Deeply Affordable Units. The Board shall develop policy as needed to prevent the emergence of discriminatory patterns in evictions and/or eliminate such patternstem description

  • Tenant's rent will increase over two years if they move into a new AMI bracket and the next unit available will be rented to someone at the original income level. If a tenant's rent decreases, attempt will be made when possible to change their unit to a lower income unit type.

    • Tenants of Deeply Affordable, Affordable and Market Rate units shall only be required to provide proof of income at move in and be recertified every 3 years moving forward. 

    • If a tenant in an affordable unit’s income increases, they do not have to leave the unit.

      • Rent will go up to the level of their new AMI.  The rent increase will take place over 2 years with 50% of the difference each year.  The next available unit is rented to someone at the original income level (maintain income flow and affordability)

        • Ex.  Tenant A is an 50% AMI tenant and their income goes up to 80% of AMI.  Their rent goes up to 80% of AMI level over two years and the next affordable unit is rented at 50% of AMI

    • If an affordable tenant’s income decreases and they can no longer afford the unit they are in, when the next affordable unit available for which they are income eligible becomes available, then their unit will be converted to the lower income unit, and the lower income unit will be converted to the AMI they were originally at.  If a tenant who is at 30% of AMI and is not in a subsidized unit has a decrease in income or someone is at a higher AMI and there is no affordable unit, attempts will be made to find temporary assistance and/or a rental subsidy so they can stay in the unit.

    • If a market rate tenant’s income decreases and they can no longer afford the market rate rent and there is an affordable unit available for which they are income eligible, their unit can be converted to an affordable unit and the available unit becomes market ratetem description

  • Maintenance Concerns Escrow Accounts will be established at a non-profit partner and tenants can vote to send rent to the escrow account if property management is not making needed repairs.

    • The Board of the RIC shall select a community partner with experience representing tenants in disputes with landlords and property management entities to serve as an escrow holding agency for the purposes of Maintenance Concerns Escrow Accounts. 

    • A Maintenance Concerns Escrow Account is an account held by a non-profit third-party, that residents of Developments may collectively elect to send rent to in the event that property management does not respond to a demand to make repairs

    • If the building management fails to maintain anything in this list enumerated in the Chicago Landlord Tenant Ordinance, then the tenant union, tenant governance committee, or tenants in the building can provide notice to landlords about the repairs needed.  If after 14 days the repairs are not done, they can take a vote to withhold rent.  If a majority of the building or 75% of affordable tenants vote, then rents can be paid into the escrow account until such time as the property management/Board of the RIC have satisfactorily addressed concerns. 

    • If the building management fails to supply heat, running water, hot water, electricity, gas or plumbing then the tenant union, tenant governance committee, or tenants in the building can provide notice to landlords about the repairs needed.  If after 24 hours the repairs are not done, they can take a vote to withhold rent.  If a majority of the building or 75% of affordable tenants vote, then rents can be paid into the escrow account such time as the property management/Board of the RIC have satisfactorily addressed concerns. 

    • In either case, at the time of notification of the building management company of the problem, the RIC or building owner will be notified and a request for a formal review will be made

    • No late fees or other penalties may be leveled against tenants paying money into their MCEA and no retaliation can be made against tenants paying into the MCEA

    • Tenants vote to verify repairs have been made and rent is returned to property managertem description

    • Must be non-profit, mission driven to serve the residents and the community.

    • Must be vetted by RIC for financial stability, any flags on  management team, outstanding litigation, training programs for its building management and maintenance staff, overall reputation in the community

    • Must offer services to residents such as assistance with paperwork for government and community programs and adding or changing utility needs, and arrange for needed services like transportation to doctor appointments, grocery shopping, etc.

    • Must be chosen by an RFP process

    • Contract to specify agreement to all rules of RIC and any applicable city, county, state, federal relevant statutes

    • Contract must include enforcement mechanisms and provisions for contractual non-compliance

Tenant Protections Continued

    • Allow for notarized statements or affidavits from tenants stating the amount and source of their income if they have an informal source of income

    • Property managers shall not discriminate against any person on the basis of immigration status. The Corporation, its agents and contractors shall refrain from requiring documents that are intended to establish immigration or citizenship status, including but not limited to social security numbers and IEN numbers, birth certificates or certificates of naturalization.

  • Tenant Unions will be allowed access to building facilities and may distribute literature in their organizing.  No retaliation may happen for organizing tenants.

    • RIC, it’s agent’s, partners or subcontractors agent’s shall not retaliate by increasing rent or decreasing services, threatening to evict or evicting a tenant because the tenant has organized or become a member of a tenants' union or similar organization. 

    • RIC, its agents, partners and subcontractors shall neither prohibit nor interfere with an occupant of a rental unit in the building, a guest invited by an occupant, or a tenant-organizing community group from organizing in the building or using common areas in that building to engage in organizing activities such as meetings or distributing literature to other building tenants.

    • Distribution of literature may include hanging or otherwise placing literature on the door of tenant units, or where that is not possible as a practical matter then the literature may be placed on the floor in front of tenant units. Such literature placed on or in front of the door of a tenant unit must plainly include the name and telephone number and address of a distributor that the affected tenant may contact to opt out of future doorway distributions of such literature.  

    • The RIC Board of Directors may establish other reasonable requirements as to the time, place, and manner, and volume, of Organizing Activities, so long as the requirements would not effectively prohibit or substantially interfere with Organizing Activities.Item description

    • If the RIC sells the property and no longer has a majority ownership share, it must require permanently affordable units.

    • It also must continue to require all existing tenant protections

  • Unit sizes, locations, and amenities shall be distributed equitably across income level of units.

    • Affordable and Deeply Affordable Units shall be the same size, quality, and have the same amenities afforded to them as the market rate units. 

    • As a guiding principle, there will be equity in the distribution of unit sizes to ensure that there are larger units available as affordable and deeply affordable.

      • In cases where the number of units precludes there from being an equitable or equal number of unit sizes and classes for affordable and deeply affordable and market rate, the preference should be for larger units to be made affordable over market rate.

      • In no event shall any new construction development solely consist of studios and/or one bedroom units unless it is an SRO building or senior housing 

    • The location of a unit should not be determined by the cost of the unit. 

    • Bathrooms in units shall have equal sized showers across various unit sizes and the shower sizes shall not be determined or minimized due to a unit's cost. 

    • Kitchens in units shall have equal sized refrigerators across various unit sizes and the refrigerator sizes shall not be determined or minimized due to a unit’s cost.tem description

    • Marketing must be accurate as to unit size

    • Tenants have the right to respectful communication with their property manager and with the Corporation, and these communications must be transparent, timely, and certified from the property owner or manager. 

    • Language Access: All application materials and information advertising the available units will be provided in the applicants preferred language and in the twenty most widely spoken languages other than English in the geography of the Development.

    • Non-retaliation: The Corporation, its agents and subcontractors, including any property manager contracted to manage a Development,   shall not retaliate against a tenant for complaining to any person regarding or a violation of City Code. 

    • No move in fees allowed

    • Mandatory disclosure from the landlord/property manager of past issues in rental units to prospective tenants.

    • Equal treatment for tenants in affordable units. The Corporation and it’s agents shall not discriminate against tenants or applicants who inhabit or apply for Affordable or Deeply Affordable Units

    • A Tenant Bill of Rights document must be available to tenants at the start of tenancy. 

    • Rent-to-income ratio used to determine eligibility should take into account all verifiable and lawful sources of income, such as vouchers, maintenance, disability payments, pensions, or other income supports including informal ones

Tenant Governance

    • Tenant Governance boards are responsible for establishing by-laws and a process for electing leadership, establishing community rules and expectations, providing feedback to property management, advocating on behalf of tenants for improved property management, conducting tenant association feedback processes related to the building, and manage a process to weigh in on quality of life budget . 

    • Tenant Governance board meetings must be open to all residents, publicized at least 3 days in advance, have notes or recordings of discussions and votes, and have translation services available upon request. 

    • Tenant Governance boards receive trainings every three years in property management and board governance from the RIC.

    • Tenant Governance boards should meet regularly with the Resident Advisory Committee to give development specific feedback to the group

    • Tenant Governance boards shall hold votes regarding placing money in the Maintenance Concerns Escrow Accounts

Neighborhood Protections

  • The RIC shall use Small Area Market Rents to determine rent, adopt principles of non-displacement, and conduct displacement impact studies in areas where more than 500 units of GSH are built.

    • Rents set to micromarket

    • Require an evaluation at the 10 year mark for development to see if more units can be transferred to affordable as they become open

    • Add principles statement to bylaws: The RIC is committed to equitably developing Green Social Housing so that it increases access to affordable housing in communities across the city while not contributing to existing pressures towards gentrification and displacement

    • Do preservation projects in wards with new construction to balance out development pressures

    • Every 5 years in communities areas where more than 500 units of Green Social Housing have been built, a displacement impact study will be conducted.  

    • Board would create equity committee to implement this study as well as look at other equity issues

    • Measures to consider for the study are:

    Potential risks:

    • Above-average increases in subarea rent compared to broader city or county wide trends

    • Subarea real estate market forecasts or market-strength indices

    • Signals of picking up in ‘flipping’ activity (less than 2 years of ownership and above average increase in value)

    • Seriously delinquent mortgages or Notices of Trustee Sales

    • Conversions of apartments to condominiums

    Potential Equitable Outcome Indicators:

    • Increase in supply of rent- and income-restricted housing units

    • Homeownership rates by race and ethnicity

    • Shares of owner- and renter-households, by race and ethnicity, who are severely cost-burdened

    • Affordability and availability of rental housing by income and number of bedrooms

    • Business ownership and jobs in Chicago by race and ethnicity 

    • Shares of residents, by race and ethnicity, within proximity to frequent transit

    • Shares of residents, by race and ethnicity, within proximity to parks and open space

    • Shares of school-aged residents, by race and ethnicity, in proximity to well-performing schools

Equitable Distribution of Units

    • Create at least 30% of units in neighborhoods with lower market rents by adding additional financing upfront, using portfolio approach (using higher rent units in higher rent neighborhoods to subsidize units in lower rent neighborhoods), or using a significant number of project based-subsidies.  Because units in the building that are considered affordable under the ordinance will technically be market rate for the neighborhood, add additional public benefits to those buildings:

      • Consult more with neighborhood groups on design, siting, and unit mix to ensure public benefits

      • Rent to more voucher holders

      • Add additional sustainability features: no electric bills, full electrification, compost, green space, solar

      • Locate near transit

      • Require all units in the building that fall under the definition of affordable in the ordinance to be pegged to AMI rents permanently

Sustainability

  • New Construction projects under the RIC must comply with a Pathway 2: Third-Party Building Certification. All projects must provide in-unit and common space cooling and work towards affordable energy for tenants.  Incentives will be provided for solar and increased air sealing.

    • New construction projects receiving funding from the Chicago Department of Housing’s Residential Investment Corporation (RIC) must comply with ‘Pathway 2: Third-Party Building Certification + Menu Items’ within the Department of Planning and Development’s (DPD) Sustainable Development Policy. Projects are required to follow the Project Construction Documentation and Post Construction Compliance Guidelines outlined in DPD’s Sustainable Development Policy. 

    • The Department of Housing and the Residential Investment Housing Corporation has no preference for which third-party certification developers choose and encourages certifications that match the site context, project plan, and community and future tenant input. All projects are encouraged to seek innovative approaches to building that promote both ecological and community resilience and regeneration. 

    • All new construction projects receiving funding from RIC must provide cooling systems in common indoor gathering areas of the building that must maintain cooling temperatures of 75 °F and 50% humidity when the external heat index exceeds 80 °F.

    • All RIC funded buildings must include in-unit cooling

    • Adopt a principle committing to low energy costs for tenants: Recognizing that everyone should have access to affordable and reliable energy, the RIC  is committed to reducing the disproportionate burden of energy costs on low-income and vulnerable households. No resident should have to choose between essential needs, such as food, shelter, and medical care, and their ability to heat or cool their home safely and adequately. This commitment is rooted in principles of energy justice and equity, striving for fair distribution of the benefits and burdens associated with energy systems.

    • Create incentives for buildings to add solar energy and improved air sealing through exterior insulation–this could be an expedited permitting process or access to additional funding.