Politics
River North City Council Approves 25 Percent Affordable Unit Mandate in New Housing Ordinance
River North residents seeking rental housing will encounter a new requirement that 25 percent of units in qualifying developments must meet income limits, matching the share set by three other municipalities in the same county.
How we reported this
The River North City Council on July 7 passed Ordinance 2026-45 by a 7-2 vote. The measure requires any residential project with 10 or more units to reserve 25 percent of those units for households earning no more than 80 percent of the area median income. The rule applies to permits submitted after January 1, 2027, and covers both rental and ownership projects inside the city limits.
How River North's Approach Compares
Three other municipalities in the county adopted a 25 percent set-aside last year. River North's version differs by applying the threshold to smaller projects and by tying the income limit to the county's annual median-income figure published each March. Council documents state that this alignment avoids the lower 15 percent floor used in two adjacent towns that updated their codes in 2025.
Local property records show River North permitted 312 new housing units in 2025. Under the new rule, an estimated 78 of those units would have fallen under the affordable category if the ordinance had already been in effect. The housing department's July 2026 agenda packet projects 150 such units per year once the rule reaches full implementation in 2028.
Effects on Daily Costs and Services
Residents who qualify for the units will pay rents capped at 30 percent of their income, a figure calculated each year from the county median. The same packet notes that the city will add two full-time housing compliance staff positions at a combined annual cost of $142,000, funded through existing permit fees rather than a new tax. Property owners outside the downtown core will see no immediate change in their tax bills from this vote.
The ordinance also directs the planning department to publish an annual report each March listing the number of units delivered and the average rent charged in those units. Developers may satisfy part of the requirement by paying a fee of $45,000 per required unit into a city housing trust fund, an option already used by two of the three peer municipalities.
City staff will begin drafting the administrative rules this month. A public comment period on those rules opens August 15 and closes September 15, after which the council is scheduled to review the final version in October.