Mayor Johnson Unveils $50M Affordable Housing Initiative
Chicago's mayor announces major funding program targeting South and West Side neighborhoods, aiming to create 2,000 affordable units over three years.
Mayor Brandon Johnson announced a sweeping $50 million affordable housing initiative Tuesday morning, marking one of his administration’s most ambitious efforts to address Chicago’s mounting housing crisis.
The comprehensive program, dubbed “Housing for All Chicago,” will allocate funding across three primary areas: new construction of affordable units, rehabilitation of existing properties, and down payment assistance for first-time homebuyers. The initiative targets neighborhoods on the South and West sides that have historically faced disinvestment and limited affordable housing options.
“Every Chicagoan deserves a safe, affordable place to call home,” Johnson said during a press conference at the Harold Washington Library Center. “This initiative isn’t just about building houses – it’s about building stronger communities and ensuring our city remains accessible to working families.”
The funding breakdown allocates $25 million toward new construction projects, with a goal of creating 1,200 affordable rental units over the next three years. An additional $15 million will support rehabilitation efforts for existing properties, potentially creating 800 additional affordable units. The remaining $10 million will provide down payment assistance grants of up to $25,000 for qualified first-time homebuyers earning up to 120% of the area median income.
Priority neighborhoods identified in the initiative include Austin, Englewood, North Lawndale, Garfield Park, and Roseland – areas where median home values remain significantly below the citywide average but have shown signs of economic momentum in recent years.
The announcement comes as Chicago faces a severe affordable housing shortage, with recent data from the Chicago Metropolitan Agency for Planning showing the city needs approximately 120,000 additional affordable units to meet current demand. Rising property values and inflation have exacerbated the crisis, pushing many longtime residents out of their neighborhoods.
“This funding represents real hope for families who have been priced out of the communities they’ve called home for generations,” said Maria Rodriguez, executive director of the Coalition for Affordable Housing Chicago. “We’re particularly encouraged by the focus on rehabilitation, which preserves neighborhood character while expanding housing options.”
The initiative will be funded through a combination of sources, including $20 million from the city’s Tax Increment Financing districts, $15 million in federal Community Development Block Grant funds, $10 million from the Chicago Housing Trust Fund, and $5 million in corporate partnerships. The mayor’s office emphasized that no property tax increases will be necessary to fund the program.
Developers and community organizations can begin applying for funding starting March 1, with the first round of awards expected by May. Priority will be given to projects that incorporate energy-efficient design, include community spaces, and demonstrate partnerships with local workforce development programs.
The new construction component emphasizes mixed-income developments, requiring that 30% of units remain affordable for households earning 60% or less of the area median income for a minimum of 30 years. Developers must also commit to hiring at least 25% of construction workers from the local community.
For rehabilitation projects, the program offers forgivable loans to property owners who agree to maintain affordable rents for a minimum of 15 years. Properties must meet energy efficiency standards and accessibility requirements under the Americans with Disabilities Act.
The down payment assistance program expands on existing city efforts, with streamlined application processes and counseling services provided through partnerships with local community development corporations. Recipients must commit to living in the purchased home for at least five years.
“We’ve seen how targeted investment can transform neighborhoods while keeping them affordable for existing residents,” said Alderman Jason Ervin of the 28th Ward, whose district includes portions of the West Side targeted by the initiative. “This program strikes the right balance between development and displacement prevention.”
Critics have questioned whether the funding level is sufficient to meaningfully address Chicago’s housing needs, noting that comparable cities have allocated significantly more resources to affordable housing initiatives. However, Johnson’s administration emphasized that this represents the first phase of a broader housing strategy.
The mayor’s office projects that the initiative will create approximately 400 construction jobs and generate $75 million in economic activity across targeted neighborhoods. A workforce development component will provide training opportunities for local residents interested in construction and property management careers.
Implementation will be overseen by the Chicago Department of Housing, with quarterly progress reports provided to the City Council. Community input sessions are scheduled for each target neighborhood over the next six weeks to gather resident feedback and identify specific local needs.
The initiative also includes provisions for anti-displacement measures, requiring developers receiving city funding to provide relocation assistance for any displaced tenants and offering existing residents first right of refusal for new affordable units.
Johnson indicated that the program’s success could lead to additional funding rounds, with the administration exploring options for a dedicated affordable housing revenue stream through potential state legislation.
Applications and program guidelines will be available on the city’s website beginning March 1, with information sessions scheduled throughout February in each target neighborhood.