Dive Brief:
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The Chicago Housing Authority and lawyers who have long advocated for desegregating the city’s public housing stock have struck a deal that will allow for the redevelopment of the Julia C. Lathrop Homes public housing project on the city’s northwest side to proceed, according to the Chicago Sun-Times.
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The dispute concerned the replacement of public housing lost during the project’s redevelopment. Under the deal, 525 replacement units and 105 new units will be built on the city’s north side for a total of 630 units.
- No construction timetable for the replacement housing was released, but the Sun-Times reported that attorneys will likely make the agreement part of a court order to be filed next week.
Dive Insight:
The deal comes amid mounting pressure on the city to include more public housing in redevelopment projects. Lathrop Homes, which was built in 1938 and has a spot on the National Register of Historic Places, is getting ready to be converted into a mixed-income development with plans calling for more than 1,100 rental housing units as well as open, public space.
The changes will eliminate 525 public housing units from the Lathrop site, drawing the ire of local housing advocates. The Sun-Times noted, however, that only 15% of the project’s 900 public housing units are currently occupied, the small share a result of years-long maintenance neglect.
Advocates hope the replacement units will restore public housing opportunities to the city’s north side.
Such calls for more public housing come as many U.S. metros, including Chicago, struggle to meet growing demand for more affordable housing as population levels rise and housing stock dwindles.
Chicago homebuilders recently lost a lawsuit that challenged the city's Affordable Requirements Ordinance. And the city of New York is poised to revive a tax break that encourages real estate developers to include more affordable housing in their projects. Voters in San Francisco addressed the issue on the West Coast by passing a measure this past summer that raises the share of affordable units required from 12% to 25% in residential developments of 25 or more units.
Part of the challenge surrounding low-income housing is the belief that it lowers overall home values in the area. But a recent study by real estate website Trulia of more than 3,000 low-income housing projects from 1996 to 2006 found that nearby residential property values were not significantly impacted.
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