Chicago City Council Passes $45M Affordable Housing Trust Fund Allocation for West Side

CHICAGO, IL — The Chicago City Council Committee on Housing and Real Estate approved a $45-million capital allocation on Saturday, directing municipal affordable housing trust funds to support community-led housing rehabilitations across the West Side.

Housing Trust Fund and Project Distribution

The funding, derived from surplus Tax Increment Financing (TIF) revenues and corporate developer affordable housing linkage fees, will co-finance the rehabilitation of 650 multi-family rental apartments and the construction of 120 new workforce townhomes in East Garfield Park, West Garfield Park, and Austin.

Under statutory covenants, 100% of the rehabilitated units are preserved as deeply affordable housing restricted to households earning at or below 50% of the Area Median Income (AMI) for a minimum of 30 years.

Community Wealth Building and Disinvestment Mitigation

The ordinance provides forgivable home repair grants of up to $25,000 for legacy single-family homeowners on the West Side, assisting long-term residents in repairing roofs, heating systems, and electrical wiring to prevent involuntary property displacement.

Community housing organizations praised the funding, noting that equitable investment in residential housing is essential to revitalize disinvested commercial corridors along Madison Street and Chicago Avenue.

Construction Phasing

Non-profit community development corporations will begin architectural procurement in September 2026, with construction work breaking ground across initial project sites in January 2027.