Avondale is at the center of a heated debate as two Northwest Side alderpeople are advocating for the removal of their wards from an anti-gentrification housing ordinance that has drawn significant attention.
Aldermen Felix Cardona, Jr. (31st) and Gilbert Villegas (36th) introduced an amendment last week seeking to exclude their respective wards from the Northwest Side Preservation Ordinance. This legislation, which emphasizes the protection of two-, three-, and four-flat apartments, was passed by the City Council in September and came into effect in October.
The ordinance aims to aid longtime residents in neighborhoods like Avondale, Hermosa, Logan Square, Humboldt Park, and West Town in remaining in their homes. It does so by raising demolition fees for developers and facilitating the construction of two-flats instead of single-family homes.
Concerns from Cardona and Villegas primarily center around the ordinance’s complex pilot program that grants renters the right of first refusal to purchase their building if it is put up for sale. The pilot program, which faced several delays, ultimately launched in March after pushback from real estate agents and certain developers.
Under the program’s guidelines, renters can form an association to exercise their right of first refusal by matching any sale offers. They must provide a pre-approval letter from a lender to purchase a small building, or a letter of intent for larger properties within specified timeframes.
If tenants meet these stringent requirements, they are then afforded an additional four months to secure financing and complete the sale process. However, Cardona and Villegas assert these regulations complicate and delay sales, particularly affecting older homeowners eager to sell their properties.
“There’s a lot of red tape with this ordinance,” Cardona remarked, acknowledging that he initially supported it.
He emphasized, “People invested in their properties for many, many years, and even though it’s changing, these are older folks now and they can’t sell their property because they have to follow these rules.”
Cardona’s ward includes a small area in Avondale, while Villegas represents a corner of Humboldt Park within the program zone. Both aldermen have noted that the rules have impeded property sales and caused issues with securing mortgage and title loans.
“When it’s a free market, the person who wants to sell the building can sell it to anybody,” Villegas pointed out, highlighting concerns raised by Freddie Mac and Fannie Mae related to the right of first refusal.
He further criticized the law as flawed and vulnerable to legal challenges, stating, “In essence, we passed a law that’s flawed and opens us up to legal challenges.”
Their efforts coincide with a broader criticism of the pilot program, with local real estate groups and policy researchers expressing concerns that it adds time and expense for small landlords wishing to sell properties.
Critics argue that such complications could exacerbate affordability issues and contribute to a decrease in housing supply.
Organizations like Palenque LSNA, which have championed the policy since 2015, condemned Cardona and Villegas’s proposed amendment as an “attack” on the preservation ordinance.
The community group expressed that jeopardizing the existing stock of naturally occurring affordable homes is a significant misstep amidst challenges to constructing new affordable housing.
Ald. Anthony Quezada (35th), whose ward encompasses much of the ordinance zone and who succeeded in spearheading the original legislation, indicated that his office has only received two complaints related to obtaining insurance from title companies.
He emphasized that his office effectively worked with the affected property owners and city officials to address the isolated issues raised.
Quezada, along with the coalition that worked on the ordinance, plans to convene a meeting to discuss ways to streamline the program and eliminate barriers for property owners.
He remains hopeful that Cardona and Villegas will also engage in these discussions.
“We are committed to making this work for everyone,” Quezada affirmed.
He stated, “We want to do anything that will help to strengthen the spirit and intention [of the ordinance] and find ways to make it easier and streamline the process.”
Quezada mentioned that the coalition is open to making adjustments to the tenant’s right of first refusal component of the program, ensuring it aligns with the ordinance’s original mission.
Additionally, the Department of Housing is taking proactive steps by hiring a housing development coordinator. This new role aims to bolster support for key city initiatives, including the tenant’s right of first refusal program.
Felicia Bolton, a spokesperson from the housing department, affirmed this intent through her communications.
Kristen Cabanban, from the city’s Law Department, noted their ongoing collaboration with alderpeople to provide legal guidance regarding the ordinance.
She stated, “The Department of Law collaborates with alders and City departments in evaluating experimental programs like the Tenant Opportunity to Purchase Block (606) District Pilot Program and will assist in making modifications our clients request.”
The tenant’s right to purchase pilot program is set to expire on December 31, 2029, necessitating a study to assist the City Council in deciding its future beyond that date.
In the evolving landscape of housing policy on the Northwest Side, the coming months promise potential changes as stakeholders react to the ongoing discussions surrounding the preservation ordinance and its implications for residents, landlords, and the housing market overall.
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