On July 20, 2022, the Chicago city council announced the passage of the Connected Communities Ordinance. The city ordinance introduces a host of new code and zoning changes that aim to encourage the development of affordable housing near public transit stations, spur economic activity through job access and creation, and promote better pedestrian safety near high-traffic transit stops.

The new ordinance creates significant changes for builders and residents across the city that could impact a number of development projects. Our team at Milrose Consultants helps to demystify the what and the why behind the new ordinance to better prepare construction professionals for the changes ahead.

The objectives of the Connected Communities Ordinance

The Connected Communities Ordinance is part of an effort by the city of Chicago to encourage the development of affordable housing near transit stations, creating more equitable access to public transportation and, by extension, the social, educational and economic opportunities the city has to offer.

The ordinance seeks to correct an earlier transit-oriented development (TOD) expansion made several years ago. While the last TOD ordinance succeeded in increasing development around public transit through incentive-based programs, subsequent research found that 90% of all development happened in the city's more affluent districts, negating many of the good intentions that initially drove the project.

The city council recognized this problem and sought to correct past mistakes, concluding that Chicago is simply too large and diverse to be served by a standardized approach. The ultimate objective of the ordinance is to make Chicago more affordable and accessible to all of its residents, irrespective of residence or socioeconomic status.

The Connected Communities Ordinance rests along three pillars: encouraging greater employment opportunities and economic activity, providing more affordable housing near public transit and increasing pedestrian safety around transit stations.

1. Encourage greater employment opportunities and economic activity

When Chicagoans who don't own cars can't access public transportation, it severely limits their ability to find and secure employment in other parts of the city. This lack of job opportunities disproportionately impacts disadvantaged areas of the city, which reinforces socioeconomic and racial inequities.

The new ordinance not only encourages job growth directly through the development of new properties, it also creates greater access to jobs throughout the city, helping to connect the city's underserved neighborhoods to the city's wealth of job opportunities.

TOD incentives now apply to property development in all parts of the city with high-frequency bus routes (as well as those within a 5-minute walk to those areas). Those incentives include significant parking reductions, a more generous floor-area ratio and expedited approval processes for faster development.

Parking requirement reductions

Parking construction, in particular, is a major hindrance to affordability. It costs roughly $29,000 to build above-ground parking in Chicago, but many of those parking spots go unused near transit stations. Costs are typically pushed down to tenants, who are forced to pay higher rents for parking spots they don't use, limiting residency to only those who can afford to pay.

Coupled with other affordability mechanisms, the parking requirement reduction decreases the amount it costs builders to construct housing units near transit stations, making it easier for residents to buy or rent and increasing access to a much larger share of the population.

2. Providing more affordable housing near public transit

The Connected Communities Ordinance encourages the construction of affordable housing units in the city's most underserved communities. The hope is this will not only create more equitable access to the city's resources and spur economic activity, but help undo racial and socioeconomic disparities and create more equitable outcomes for all.

In addition to the parking requirement reductions mentioned above — which benefit both residents and developers, who can now use their resources to build residential property for cheaper — there are also new restrictions on deconversions in low-affordability, multifamily areas.

Developers are no longer permitted to convert affordable, multifamily units into single-family houses in designated zones, which raises the value on those properties and makes space more limited. A zoning change would be required to undertake conversion projects.

3. Increasing pedestrian safety around transit stations

Some parts of the city still lack proper safety protocols for pedestrians near transit stations, which resulted in 83 deaths within a half mile of rail stations in 2021. Accidents disproportionately occurred in the most disadvantaged parts of the city, suggesting an inequitable commitment to high safety standards for all of the city's residents.

The new ordinance mandates the construction of pedestrian-friendly curb cuts and driveways within a half mile of rail stations, making it safer for pedestrians in areas with a high volume of foot and vehicle traffic. Moreover, the regulations also require new developments to prioritize pedestrian safety by submitting a transportation management plan, which details the steps to be taken to promote safety.

The ordinance also calls for the construction of residential bike parking in new residential buildings near a TOD-designated area. Not only does this encourage the use of bikes around transit areas, it also protects bicyclists when driving near high-traffic transit stations.

Milrose Consultants help demystify code and zoning changes

Chicago's new Connected Communities Ordinance promises to create sweeping changes for people in disadvantaged communities across the city. New incentives, parking reductions, safety requirements and other changes present both new opportunities and possible headaches for construction professionals.

That's why it's important for construction professionals to speak to a qualified code and zoning analyst to understand how the city's recent changes could impact their projects and deadlines. Reach out to our team at Milrose Consultants to speak to one of our expert analysts.