Chicago wrongly limited affordable housing with aldermanic prerogative, HUD says

The City of Chicago’s Limitations on Affordable Housing

The city of Chicago has been found to wrongly limit affordable housing by allowing City Council members to reject developments in their wards through the use of their aldermanic prerogative, according to federal investigators.

Investigation by the U.S. Department of Housing and Urban Development

The U.S. Department of Housing and Urban Development (HUD) has conducted an almost five-year civil rights investigation into the matter. HUD is now requesting Mayor Brandon Johnson’s administration to enter talks for an “informal resolution” of the investigation.

Lon Meltesen, regional director of HUD’s Office of Fair Housing and Equal Opportunity, stated in a letter that the investigation indicates that the city grants each of its 50 wards a local veto over proposals to build affordable housing. Meltesen highlighted that many majority-white wards use this local veto to block, deter, or downsize such proposals. Consequently, new affordable housing is rarely, if ever, constructed in these majority-white wards, which already have a shortage of affordable housing.

Meltesen emphasized that the Council members’ local veto power has played a significant role in creating patterns of segregation in Chicago. He noted that this veto disproportionately harms Black and Hispanic households, who are more likely to need and qualify for affordable housing compared to white households.

Complaint and Historical Context

The investigation was initiated following a complaint filed to HUD by the Chicago Area Fair Housing Alliance and nine other advocacy groups in November 2018. The complaint argued that Chicago Council members have “unfettered power” over zoning, land use, city lots, and public financing, enabling them to decide where, if, and how affordable housing is built in their wards. The groups claimed that this power, known as aldermanic prerogative, is discriminatory and violates the civil rights of those seeking housing.

The complaint traced the origins of the aldermanic veto back to the 1930s and highlighted the opposition it faced from Council members representing white neighborhoods. These Council members and their constituents viewed racially integrated public housing as a threat to their neighborhoods.

Patricia Fron, co-executive director of the Chicago Fair Housing Alliance, described aldermanic prerogative as a “tool to covertly reinforce segregation when legal forms were outlawed.” She stated that HUD’s letter to the city supports the findings outlined in the complaint.

HUD’s Previous Actions and City’s Response

This is not the first time HUD has called out discriminatory practices in the city. In May, then-Mayor Lori Lightfoot signed a binding agreement with HUD over another housing discrimination case related to the planned relocation of the General Iron scrap-metal operation to the Southeast Side.

In response to HUD’s recent concerns, city lawyer John Hendricks stated in a letter that the complainants failed to establish a violation of fair housing and civil rights laws. However, he expressed the city’s openness to a voluntary resolution.

HUD officials declined to comment on the letter, stating that the case is still open and no final determinations have been issued yet. Mayor Brandon Johnson’s spokesperson did not provide a comment on the matter.

Additional Concerns: Zoning Advisory Councils

In addition to the power of alderpersons, the 2018 complaint also addresses the use of local resident committees known as zoning advisory councils, which can limit housing options. The complaint argues that these groups are one of the most powerful tools used to influence affordable housing development, particularly in predominantly white wards. Similar groups in other white areas have effectively prevented the construction of low-income housing.

The complaint specifically mentions resident groups on the North Side and Northwest Side of Chicago, stating that they have tremendous power to influence aldermen and make final decisions regarding affordable housing. This power allows them to shut down proposals before the city’s Department of Planning and Development even considers them. As an example, the complaint mentions a proposal in Edison Park in 2017 for rental property that included four units of affordable housing. The proposal faced opposition from over 500 people and was ultimately defeated.

Read HUD’s Letter

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