[Chicago City Council] Legislative Analysis – Green Social Housing Ordinance
Executive Summary
Green Social Housing is a housing model that focuses on permanent affordability through publicly-owned housing with a focus on residents’ needs rather than a return on investment for private investors (such as real estate developers and private equity firms) on the speculative market. It uses public financing at the local level to invest in self-sustaining mixed income housing.
An ordinance was passed in the Chicago City Council on May 7, 2025 to create a redevelopment corporation with the purpose of creating Green Social Housing in Chicago. The ordinance overall meets the principles of Green Social Housing and is an important first step in creating a tool for development in Chicago that could fundamentally change how housing is created and who benefits from it. Beyond this first step, the Green Social Housing model in Chicago can be strengthened with additional provisions that could be created in rules or bylaws and by pairing it with other local tenant protections.
This report is meant to be a tool for advocacy organizations, legislators, legislative staffers, and the general public to be able to get an understanding of (1) what green social housing is, and how it compares to other housing frameworks, (2) what the current ordinance that passed through Chicago City Council does and how it lines up with principles of Green Social Housing, and (3) an analysis of how this impacts working class Chicagoans and increases their ability to afford and access good, stable, housing within the city.
Overall Recommendation
The Green Social Housing Ordinance that just passed through City Council does indeed work within the GSH principles. This will be explored in depth later in the report.
In order to strengthen the ordinance to increase affordability and sustainability, provide stronger tenant protections, and prevent against any unintended consequences we make the following recommendations to be codified in rules or bylaws that will follow the ordinance:
Clearly spell out what it means to “strive to include deeply affordable units” in every development including building partnerships with entities that provide subsidies, setting aside capital funds designated for deep affordability so that some projects can receive a larger portion of upfront funding to create more affordability, and developing partnerships with community lenders that will further the ability of the development entity to create more affordability.
Put in place protections to avoid development pressures that drive up rent by requiring displacement considerations to be part of the planning process for developments.
Ensure that market rate modeling that has been used for the creation of housing units is reflective of the micro-neighborhood, to ensure that the development is not furthering gentrification.
Provide relocation assistance to any tenants temporarily displaced from construction.
Add additional tangible sustainability requirements.
Give tenants right of first refusal to purchase if a property is going to be sold
Add anti-discrimination provisions such as requirements to protect potential tenants that have been involved in the criminal legal system or have been previously affected by predatory credit or evictions as well as ensuring that housing is available to all regardless of immigration status
Require that the public redevelopment corporation have at a minimum a majority ownership stake in each development
Specify a detailed process to ensure accountability for property managers if Resident Councils appeal to the development corporation to intervene
In addition, it is recommended that the City Council enact other tenant protection measures that support the work of the Green Social Housing’s project to provide long-term stability for tenants including:
Expand the Residential Landlord Tenant Ordinance to ensure that there are provisions to protect tenants from being evicted without Just Cause (taking the unit off the market, significant rehabilitation).
Expand the Northwest Side Housing Preservation Ordinance to other communities which is meant to disincentivize developers from re- ducing the market’s housing stock and gives tenants right of first refusal to purchase buildings
Pass rent stabilization legislation that would be enacted if a ban on rent control were lifted in Springfield to decrease the effects of gentrification and long-term residents being priced out of their homes
The push for decommodifying housing is a longer-term, structural change that will happen over time. And though this ordinance will not solve the housing affordability crisis for every Chicagoan, the passage of it is a large step in fulfilling the vision that every resident of this city can afford a home without being rent-burdened.
To read the full report, click here.