In a significant shift concerning housing policies, the Chicago City Council voted on Wednesday to exempt two Northwest Side wards from the Northwest Side Preservation Ordinance, which was designed to protect residents from gentrification.
Aldermen Felix Cardona Jr. and Gilbert Villegas, representing the 31st and 36th wards respectively, introduced the amendment last month, citing complications faced by residents when selling properties as the primary reason for their decision.
Residents expressed concerns that the existing ordinance has been negatively impacting the real estate market, which prompted the aldermen’s action to pull their wards from the designated anti-gentrification zone.
The Northwest Side Preservation Ordinance allows tenants the opportunity to purchase their rental units before they go on sale, a program that faced delays prior to its implementation in March due to criticism from real estate agents and developers.
There was overwhelming support for other components of the ordinance, which became effective last October.
Although only a small portion of Cardona’s and Villegas’ wards were previously included in the ordinance, the decision to withdraw has reignited discussions among stakeholders from the real estate sector, affordable housing advocates, and progressive local officials.
The zoning committee passed the exemption measure after a short debate on Tuesday, and it sailed through the full City Council on Wednesday without any discussion. The ordinance takes effect immediately following its publication on the city clerk’s website.
Villegas criticized the original ordinance, describing it as flawed from the start.
In comments made before the zoning committee’s meeting, he stated that critical stakeholders were not included during the drafting process, leading to some concerns that had been raised coming to fruition.
The tenant’s right of first refusal program requires renters who wish to purchase their residences to create an association and match any existing offers on the property.
To assert their right under the program, they must acquire a pre-approval letter from a lender for buildings with four or fewer units within 30 days, or obtain a letter of intent for buildings with five or more units within 90 days.
If able to meet these requirements, tenants are granted up to four months to secure financing and finalize the sale.
However, Cardona and Villegas have expressed concerns about potential delays in selling properties and challenges in obtaining mortgage and title loans due to the ordinance’s requirements.
They fear that the process may invite legal challenges and pointed out the absence of an educational component to facilitate homeownership for tenants involved in the program.
“One of our primary concerns is whether our communities are truly prepared for home ownership under the conditions set by the ordinance,” Cardona remarked during the committee meeting.
He added that the initiative’s success depends heavily on the preparedness of prospective buyers, particularly those tenants who may be inexperienced in navigating the complexities of purchasing a home.
Notably, Cardona had previously voted in favor of the housing legislation and was a co-sponsor of the original ordinance.
Officials from the city’s housing and law departments indicated that they have held discussions with the aldermen along with representatives from home ownership loan agencies.
They promised to continue offering guidance to stakeholders while also exploring opportunities to enhance the pilot program.
In response to the recent amendments, a working group has been established with housing organizations from the Northwest Side to develop resources aimed at educating tenants about their rights under the ordinance.
However, the organizers at Palenque LSNA, who have significantly contributed to the policy’s development since 2015, voiced their disappointment over the decision to remove the two wards.
They criticized the exemption as a hasty and misguided action that lacked sufficient community engagement.
Villegas expressed a willingness to meet with Palenque LSNA to discuss concerns regarding the pilot program, emphasizing the importance of including other key stakeholders from the banking, lending, insurance, and real estate sectors.
He indicated readiness to consider reinstating the slivers of coverage area in the future, dependent on amendments to the pilot program that could address the issues he’s raised and foster collaboration among all parties.
“I told the sponsors early on that I would support this; however, if we started seeing issues, I would back out,” Villegas noted.
He added that he is open to revisiting the ordinance once any problems are resolved.
The tenant pilot program is currently set to expire on December 31, 2029. After that date, the Department of Housing will be required to conduct an evaluation to aid the City Council in determining the program’s future direction.
image source from：blockclubchicago
