Politics
Chicago City Council Approves Logan Square Affordable Housing Inclusion Ordinance, Setting New Unit Requirements for Developers
The ordinance mandates that new residential projects of 10 units or more set aside 15 percent of units at below-market rates, with compliance reviews beginning in August 2026 for Logan Square addresses.
How we reported this
The Chicago City Council voted 35 to 15 on July 7 to pass the Affordable Housing Inclusion Ordinance, which applies directly to future construction projects in Logan Square and 12 other community areas. The measure requires developers to reserve 15 percent of units in buildings with 10 or more dwellings for households earning no more than 60 percent of area median income.
The ordinance responds to filings from the city's Department of Housing that documented a 22 percent rise in Logan Square median rents between 2023 and 2025. Council records show the vote followed three public hearings where testimony focused on permit applications already submitted for sites along Milwaukee Avenue and Kedzie Boulevard.
Requirements for New Projects and Existing Residents
Under the legislation, any Logan Square development receiving city permits after August 1 must include the affordable units on site or pay an in-lieu fee of $175,000 per required unit into the city's housing trust fund. Local renters seeking one-bedroom apartments priced at or below $1,050 monthly will gain priority placement through the city's centralized waitlist system managed by the Chicago Housing Authority.
Property owners who convert existing two-flats or three-flats into larger structures will also fall under the rule if the total unit count reaches 10 or more. City planning staff estimate that 18 projects currently in the pipeline for Logan Square will be subject to the new standard once permits are issued.
Budget Allocation and Next Steps
The ordinance draws $1.2 million from the 2026 city budget line item for housing compliance monitoring, according to the ordinance text filed with the city clerk. This amount covers three additional staff positions in the Department of Housing assigned to Logan Square and neighboring districts.
Enforcement begins with the first permit reviews scheduled for the week of August 4. Developers must submit affordability covenants recorded with Cook County before certificates of occupancy are granted. The city will publish quarterly compliance reports on its open data portal starting in January 2027.