A $75 million housing initiative to address population decline and housing affordability on Chicago’s South and West sides is offering developers $1 vacant lots by the handful and subsidies for construction costs.
The Missing Middle Infill Housing Initiative will start with 44 city-owned lots in Lawndale, available for a buck each to developers who will deliver owner-occupied homes, the Chicago Tribune reported. The city is offering up to $150,000 in subsidies per housing unit to cover rising construction costs, and developers must purchase a minimum of five lots.
The program aims to create affordable homes in areas that have suffered from long-term disinvestment.
Developers have until Nov. 15 to apply for the lots, which are valued between $4,000 and nearly $50,000.
Funds for the initiative come from a $1.25 billion bond, approved by the city council in April, that aims to support affordable housing and economic growth throughout Chicago. The bond will provide $250 million a year for housing and economic development projects through 2028. Other projects receiving funds include CARE Manor in West Garfield Park, which secured $9.6 million, and Prairie District on the Near South Side, which was allocated $10.9 million for renovations.
“It’s really important for us to not just wait for the private market to pick up and get vertical development on the site,” Chicago Planning Commissioner Ciere Boatright said.
It’s an opportunity to put the vacant lots back in productive use, repopulate neighborhoods and create housing density, she said.
The program prioritizes multifamily buildings, with single-family homes expected to be priced under $300,000. Two- and three-flat homes will range between $450,000 and $700,000, while six-flats could cost between $1.35 million and $1.65 million.
The multifamily properties could provide naturally occurring affordable rental options from occupant landlords. The median household income in Lawndale is just over $30,000.
The program has faced delays due to funding challenges, but city officials expect construction to begin by next spring.
The initiative will expand to other neighborhoods like Englewood, Bronzeville and Auburn Gresham. Up to 750 new housing units could be built in these neighborhoods by 2028. With more than 7,000 vacant lots available citywide, there will also be opportunity for further expansion.
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North Lawndale lost 15 percent of its population between 2010 and 2022, said Alderman Monique Scott. The initiative could lead to higher housing costs in her community, but Scott supports the program, as it could turn 3,000 vacant lots into thriving residential spaces.
“Kids want to walk and see homes and grass and planters and not just lots that are filled with trash and high weeds,” Scott said. “I think that this will change the whole look of our community, and also offer incentive for people to come back into the community.”
— Andrew Terrell