Affordable Housing Initiatives Show Early Success in Chicago

Homeownership is a key part of building generational wealth, particularly in Chicago, where only 33.9% of Black families and 45.6% of Latino families own their homes, compared to 53% of white families, according to the Chicago Community Trust.

A program aimed at changing these statistics focuses on affordable homeownership for first-time buyers in the West Side neighborhoods of East Garfield Park and Humboldt Park. Chicago was selected in 2021 as one of five cities for the Connecting Capital and Community initiative, which is designed to enhance housing investments and create equitable homeownership opportunities.

This national initiative is spearheaded by the Washington, D.C.-based Center for Community Investment and funded by JPMorgan Chase. The Chicago Community Trust is leading local efforts, partnering with 20 organizations including the Garfield Park Community Council and Neighborhood Housing Services of Chicago.

The initiative's director, Lynnette McRae, highlighted that the focus is on collaboration to address the lack of affordable homes and lending in these communities. JPMorgan Chase initially pledged $1.95 million over three years, and has since contributed a total of $5.45 million, helping to raise $10.38 million overall for the initiative.

These funds assist with predevelopment costs, such as purchasing vacant lots and site preparation, and connect developers with needed capital. The initiative has partnered with six developers, including North Lawndale-based Inherent L3C, which is working on a Cook County pilot program to build 120 homes.

Currently, 78 vacant lots have been secured with the goal of constructing homes on 100 of those lots. As of November, ten new homes have been sold, and another seven are currently built, with three under contract and four available for purchase.

The homes are priced to be affordable for households earning up to 120% of the area median income, with prices ranging from $390,000 for three-bedroom homes to $436,000 for four-bedroom homes. A recent trolley tour allowed potential homebuyers to view completed homes and engage with housing counselors to learn about mortgage qualification.

In total, 72 first-time homebuyers have successfully purchased new or existing properties through this initiative. Plans for 2024 include the construction of two-flats in addition to single-family homes, as well as support for rehabilitation of aging homes.

McRae noted the aim is to continue lowering purchasing prices through interest rate cuts and down payment assistance, expanding the range of options available to potential homebuyers.