The Chicago City Council adopted new Affordable Requirements Ordinance (ARO) rules in 2015 which changed the fees property owners & developers pay for required affordable housing units that they decline to construct. Another one of the new rules was that the “in lieu fee” would increase annually, based on the inflation (as reported in the Consumer Price Index).

January 1, 2019, is just around the corner and the Chicago Department of Planning & Development (DPD) has posted next year’s in lieu fees. The increase is 1.61 percent.

The in lieu fee per unit for projects are changing as follows, and are based on the project’s location:

  • Low-Moderate Income areas: $51,388 to $52,214

  • Higher Income areas: $128,469 to $130,534

  • Downtown fee: $179,857 to $182,748

Whether the developer pays 2018 fees or 2019 fees depends on when the project is submitted to DPD for review. That means when a zoning change application is introduced to City Council, or a complete application for financial assistance was accepted by DPD.

MAPS can help you calculate the ARO in lieu fees, and our maps will determine in which income area a project lies. Contact us to get a project assessment.

Keep in mind that in lieu fees aren’t an option in Pilot Areas.