Category: Housing

Danielle Allen on the geography of power sharing and how I think it applies to Chicago

Danielle Allen is a professor of public policy at Harvard University. She also started the Allen Lab for Democracy Renovation at Harvard. Danielle was interviewed on the California YIMBY “Abundance” podcast, published December 21.

Danielle said something that I thought was extremely relevant to understanding why the way decisions on Chicago land use and zoning are made is defective and leads to bad outcomes (including segregation and lack of housing in higher-resource neighborhoods ).

Before I excerpt from the interview, here are three summaries of how Chicago land use and zoning decision making processes are, as I said, “defective”. They come from myself, Chicago Area Fair Housing Alliance (CAFHA), and the U.S. Department of Housing & Urban Development (better known as HUD).

My own summary: There are 51 ways – at least – to legalize housing in Chicago. The first is the collection of ordinances, regulations, and processes administered by City Hall (as well as the division of power within City Hall amongst the mayor’s office and the departments, and the influence exerted by same); the other 50 are the individual and idiosyncratic ways of the 50 alderpersons. Projects are entitled (approved) on a project by project and lot by lot basis. Every lot is zoned and its zoning district is fungible depending on if the local alderperson supports the change.

CAFHA: “The City of Chicago’s longstanding policy and practice of ‘aldermanic prerogative’ – whereby the City of Chicago delegates to the City’s 50 aldermen and alderwomen (“aldermen”) unfettered power over zoning, land use, city lots, and public financing, in order to decide where, if, and how affordable housing is built in their wards – discriminates on the basis of race, color, national origin, familial status, and disability, and perpetuates segregation on those bases, notwithstanding the city’s certifications it would overcome such segregation. These same policies and practices violate the City of Chicago’s duty to affirmatively further fair housing.”(CAFHA et. al. submitted this complaint to HUD in November 2018)

HUD: “The Department’s investigation indicates that the City affords each of its fifty wards a local veto over proposals to build affordable housing, and that many majority-White wards use the local veto to block, deter, or downsize such proposals. As a result, new affordable housing is rarely, if ever, constructed in the majority-White wards that already have the least affordable housing. The City acknowledges this effect of the practice, its historical use for the purpose of creating and maintaining patterns of racial segregation, and its continued use as a tool that effectuates racially motivated opposition to affordable housing. The City’s use of the local veto despite understanding its effects raises serious concerns about the City’s compliance with Title VI and Section 109.

“The Department understands that the local veto over affordable housing proposals is not a law or formal policy, but a practice arising from (1) the requirement that City Council approve all such proposals, and (2) the custom of only approving those proposals which have the affirmative support of the alderman for the ward in which the development is proposed. This investigation identified three ways in which aldermen wield the local veto to block, deter, or downsize proposals to build affordable housing:” [read the rest of they response to CAFHA’s complaint]

On to the interview!

This excerpted part of the conversation starts at 11:14.

Screen grab from the interview of Danielle Allen by Nolan Gray and Ned Resnikoff.

Ned Resnikoff: Nolan [Gray] and I have talked a lot about this idea that we need to, we need to bring back actual planning. So the idea that you have a sort of democratic process for for a citywide general plan, but then if something if a project conforms to that general plan, it’s like, well, the city, the community has already sort of planned to allow for that. And so I guess I’m curious how you think about that, like, is there? Is there a role for project by project planning? Or is it the sort of thing that should happen more at the citywide level or neighborhood level?

[Note that Chicago does not have a general or comprehensive plan. Another way to look at this is that Chicago’s zoning map is its comp plan.]

Danielle Allen: I think it can be either city wide or regional, it sort of depends on what the issue is, or neighborhood. If you take the case of land use in renewable energy contexts, it could literally be like the folks who sort of share the same wind footprint. And so do you think this is the hardest? Well, there’s many hard problems in this space.

But one of the hardest problems in the space is the fact that our current jurisdictional structures don’t always map the footprints of the affected community for a given issue.

[I bolded that statement. I think the issue where this is most relevant is housing production – the people who need or would use proposed housing is the affected community not mapped to the footprint of the Chicago alderperson’s jurisdiction and the application of that alderperson’s power is defined by one of 50 ways, leading to the outcomes of not building enough housing which are outlined in CAFHA’s complaint and HUD’s general agreement of the nature of the complaint.]

Danielle continues… So that’s the kind of thing I’m wrestling with, and my lab is working on, is kind of having concrete cases where that’s true. And then how do you start to actually give people access to a governance structure that aligns with the actual footprint of impact? And how would you make that work given the existing legacy jurisdictional structures? So I don’t think we have answers to that question yet. But I feel like that’s the problem we have to solve.

So for example, again, renewable energy is basically a land use issue, right? Because it takes so much more land to source energy through renewable sources, whether solar or wind. So at the end of the day, it’s like, anybody who thinks about land use, we need you in the kind of climate conversation because it is just fundamentally a land use question. I think what we’re working on is the different structures, that kind of collective ownership, so that the benefits that could come from harvesting the renewable energy resource that you are somehow connected to either because you’re upwind or downwind or someplace in between, but if the wind gets used, you’re going to be affected by it. You know, those kinds of things might give us some new governance structures that can kind of come in and help us break through some of our impasses. That’s the sort of thing we’re trying to figure out, to align the need for that participatory element that does deliver the appropriate kind of empowerment, but is also driving towards something effective.

Illinois updates its affordable housing enforcement statute to take effect in 2026

Illinois has a statute that requires every covered municipality to have an affordable housing stock of 10 percent relative to its total housing stock. The Affordable Housing Planning and Appeal Act exempts only municipalities with population of under 1,000, and those “in which at least 10% of its total year-round housing units are affordable, as determined by the Illinois Housing Development Authority”.

IHDA updates a list of non-exempt municipalities – those not achieving the 10 percent standard – every five years, which it last did in December 2023 (the list of non-exempt local governments, or NELGs, and the full list of all municipalities).

List of 44 non-exempt municipalities ordered by lowest percentage of housing stock which is affordable.

Glenview is one of the non-exempt municipalities and this year has “had trouble” approving new housing. Although neither proposed development included affordable housing, to my knowledge, the developer of one proposal said that the project rents would be less than the median; my guess is that most rentals in Glenview are not other apartments but whole houses.

I’ve been keeping a list, on Twitter, of other municipalities that have “had trouble” approving new housing.

One of the updates in the AHPAA adopted in 2023 is that the definition of who can appeal a municipality’s rejection of a proposed affordable housing development has been expanded to, basically, include someone who could have lived in the development if it was built.

The revised definition for appellants also includes housing advocacy organizations that have an overlapping geographic focus. This new appellant definition takes effect on January 1, 2026.

IHDA’s FAQ answer to who is an appellant and can appeal a rejected affordable housing development proposal.

If you know of an Illinois municipality that has voted to reject an affordable housing development, or has through some kind of delay or inaction effectively rejected an affordable housing development, please let me know!

Prepare your kitchen for an induction stove in 2023

Abt now has a sub-$1,000 induction stove. People with children or soon-to-have children should be the first ones looking into how they can replace their gas-burning cooking equipment and improve indoor air quality.

While you’re window shopping, you’ll also need to check your electrical panel…is there a circuit in the kitchen with a 40 amp breaker? If not, you’ll have to hire an electrician to run a new circuit (and a 240 volt outlet) for the induction stove.

Two Chicagoans I know have swapped their gas-burning stoves for induction stoves. You don’t want your children breathing benzene.

One of them is expecting a baby next month, so he replaced the stove earlier this year and had this to say about it:

Historically it’s been that gas was the powerhouse: if you need boiling water quickly, anything else won’t cut it. That’s just not the case now. Our induction stove cooks absurdly fast – we’re talking boiling water for coffee in 2-3 minutes. Lunch, dinner, coffee: the quick cook time makes for real time savings.

I’ve never been one to have a clean stove – too many parts and nooks and crannies. The induction range is one surface that’s easy to wipe. Also, the buttons are all up top towards the back, so our kid won’t be able to turn gas knobs you’d find on traditional stoves.

Overall for our health, the kid’s health and development, and all the bells and whistles that came with the basic model, we are so happy with the purchase.

Upgrading the electrical wiring will take a few weeks, which means you should wait to buy the induction stove until after January 1, 2023, when the Inflation Reduction Act rebates on energy efficient appliances kick in.

If you want to switch now, you can easily buy a single zone portal induction cooktop. Use it to boil water for coffee, tea, or pasta, and start practicing. IKEA sells a portal induction cooktop but won’t deliver it curently.

You probably already have pots and pans that are compatible with induction stoves: All cast iron and many stainless steel cookware are compatible. Even some aluminum and nonstick are compatible if they have a magnetic plate on the bottom.

If you have an old-fashioned electric stove (the kind with coils or a glass stop), I personally would recommend replacing it with induction only when it’s broken. It doesn’t release toxins like gas-burning stoves, so there’s not a need to accelerate replacement.

Alternatively, buy and enjoy the speed and better air quality of a portable induction cooktop! You can check reviews on Wirecutter for their latest recommendation, or pick one up from IKEA.

N.B. I don’t earn any money from clicks on the links in this blog post. I selected Abt because they are a chain local to Chicago, and I conducted a survey of my Twitter followers in 2020 and the majority recommended buying appliances from Abt. I visited Abt’s showroom in Glenview in January 2022 (see photos below), and I was impressed by the store and the salesperson.

Allowing cottage courts in Chicago requires changing the zoning code

Cottage and bungalow courts (also called clusters and pocket neighborhoods) are a common multi-family design typology in cities outside of Illinois. You’ll find them in California (where they’re more often called bungalow courts) and Tennessee, for example. They are characterized by having multiple detached one or two-story houses on a single and compact development site. The houses commonly face a shared green space and have shared parking behind them.

A primary benefit of cottage courts – and smaller footprint housing, generally – is that it creates more for-sale detached houses (which are in very high demand in Chicago) while sharing land [1]. In other words, cottage courts create more detached houses using less land.

It is not possible to build a cottage court in Chicago because of how the zoning code is written. The purpose of this article is to discuss specific text amendments that would have to be collectively adopted in order to allow this housing type.

screenshot of a page from a guide about Missing Middle housing in Chattanooga, TN. The image has a site plan for a cottage court, an isometric view of the rendered cottage court, a narrative about the sample project, and statistics.
A sample cottage court intended for an audience in Chattanooga, TN, created by the Incremental Development Alliance.

Zoning code barriers in Chicago

  1. The Chicago zoning code allows only one principal building per lot. A detached house constitutes a principal building and only one of them is allowed. The code would have to be changed to allow more than one principal buildings per lot. If the city council wants to limit this allowance to cottage courts then other code would have to be modified to define a cottage court (similarly to how it has a definition of a townhouse). (Section 17-1-1300 – this anti-housing provision is in the first chapter of the Chicago zoning code!)
  2. Cottage courts should be fee simple [2], to make them easier to mortgage and sell, which means subdividing a lot into one lot per house. The Chicago zoning code does not allow subdividing a lot below the minimum lot area for the particular zoning district governing a lot. For example, currently in RS-3, if more than one principal building per lot was allowed, each cottage court house would have to occupy 2,500 s.f., which is an untenable size for cottage court development.
  3. Minimum lot area per unit standards also severely restrict development of cottage courts. To build four houses in an RS-3 zoning district one would need a 10,000 s.f. lot!
  4. Rear setbacks would need to be reducible, preferably without the need for a variation from the Zoning Board of Appeals. Because the houses are oriented to face a common green space at the interior of the lot (not at the front or rear of the lot), the rear of the house may be close to the side property line, violating the rear setback standard of ~30 feet.
  5. Side setbacks would need to be combinable or eliminated as a requirement for cottage court development, so that the houses could be closer together or the designer could have more flexibility in their orientation.
  6. Parking requirements would need to be more flexible, both in quantity and in design. Parking is currently allowed only in the rear setback, but these houses may not have a rear setback because of their inward orientation. To maximize shared green space parking requirements should be reducible for this housing type. The Chicago TOD ordinance may be relevant here, as it now applies in RM-5, and higher, residential zoning districts, but the cottage court needs to be allowable in the RS-3 and RT-4 zoning districts (as these are for more common).

Attorneys, designers, and developers: Are there any other Chicago zoning code standards missing?

Examples of cottage courts

I know of a few cottage courts in Chicago (et. al. means there is an address range):

  • 7436 S Phillips Ave (et. al.). These were built prior to 1952, according to historic aerial images, and are individually parceled (see barrier #2 above).
  • 7433 S Euclid Pkwy (et. al.). The houses were built between 1938 and 1952, according to historic aerial images, and are individually parceled. Two of the parcels are vacant.
  • 1802 S Kildare Ave (et. al.). The houses were built after 1950.
  • 3020 N Waterloo Ct (et. al.). This townhouse court was built between 1970 and 1975. These houses are arranged like townhouses but they are not compliant with the present townhouse code (adopted in 2004) because they are too dense and have too little parking. The density is equivalent to 2.5 homes per standard lot (which, in Chicago, is 3,125 s.f.).
  • 511 W Deming Pl (et. al.) at Geneva Terrace. This looks like a hybrid cottage and townhouse cluster. It has a large front yard and a shared interior courtyard. Each of the five units is an individually owned and taxed parcel.

All of the images below are from the Missing Middle Housing website, created by Opticos Design, an architecture firm that has popularized the term “missing middle”.

Cottage court codes

Burlington, VT, approved a zoning plan in March 2024 that permits “cottage courts” in places “where lots make it feasible”. Read their new Neighborhood Code, which created the graphics below showing before and after the code change.

Graphics showing the new housing types that are allowed in the updated Burlington, VT, zoning code. (I made the collage.)

Notes

A tiny house village may also be considered a cottage court. The influential architecture firm, Landon Bone Baker, once designed a proposed tiny house village (knowing full well it was not legal) for Thresholds and Easter Seals in Chicago.

[1] It’s also assumed that sharing land means sharing land costs, and land costs are a significant part of purchasing a house. In the areas where demand for detached houses is the highest, land costs are also the highest. Cottage courts create more detached houses with less land.

[2] fee simple has a legal meaning, but here I mean “the house owner also owns the land beneath the house”, and the pair are collateral for the lender that, on paper, looks like any other detached house the lender has mortgaged.

Inclusionary zoning calculator will tell you how many units a developer can afford to make “affordable”

An “inclusionary zoning” calculator can help you determine how much affordable housing your town should require that developers build in their new construction residential buildings.

I learned about Grounded Solutions Network’s Inclusionary Housing Calculator at the second-ever YIMBYtown conference in Oakland, California, two weeks ago.

YIMBY (yes in my back yard) is a movement to reduce barriers to building more housing in order to be able to house everyone at a level they can afford. It’s a movement for other things, and it means a lot of different things to a lot of different people but the end result is that more housing needs to be built.

An interested person inputs a lot of values relevant to their local housing market into the IHC and it will calculate the cost of construction per unit and the rental income from those units, and then will figure the profit margin for the developer. What makes this “inclusionary” is that one also needs to enter the desired portion of units that are set aside as “affordable” (to people making a certain income) and subsidized by the developer’s rental income.

I put the IHC through a real world exercise by inputting as much data as I knew about a rejected proposal in Pilsen.

The first proposal from Property Markets Group had 500 units, and 16 percent of them were set aside (news on this and their subsequent proposals) [I cannot find the source of the “16 percent on-site” factor]. Chicago’s Affordable Requirements Ordinance, or ARO, requires that 10 percent of the units are affordable, and that 25 percent of those 10 percent must be built on site. The other 75 percent can be built on site, or the developer can pay an in-lieu fee per unit.

Needless to say, 16 percent on-site is much, much higher than 25 percent of 10 percent. A neighborhood organization, the Pilsen Land Use Committee, however, requires 21 percent in the area, and the city council member, Danny Solis, 25th Ward, adheres to.

PMG said they couldn’t go that high, and that’s what I wanted to test.

According to this Inclusionary Housing Calculator, could the developer make enough profit (considered as 10 percent) if the building had 21 percent of units as affordable?

In this exercise, the answer was “no, PMG could not make a profit if they had to set aside 21 percent of the units as affordable.”

But the calculator showed that they could earn a 12 percent profit if 16 percent of the units were affordable. 

Some of the inputs are actual, like the sale price of the land (found in the Illinois Department of Revenue’s transactions database), but I had to make up some inputs, including the apartments’ bedroom mix, and the future rental prices of those apartments.

Further reading

  • It’s tough for people to move into one of these set-aside apartments in Chicago (DNAinfo Chicago, July 28, 2017)
  • Inclusionary zoning cannot create enough affordable units (City Observatory, February 11, 2016)
  • Other housing cost calculators like this one (City Observatory, July 26, 2016)