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Lightfoot Issues 2023 Updates to Allocation Plan for Affordable Housing Development

The Lightfoot administration has issued the 2023 Qualified Allocation Plan (QAP), which determines more than 60% of the City of Chicago’s affordable housing resources. The QAP, which sets the rules for accessing federal Low-Income Housing Tax Credits (LIHTC), has been issued every two years under Mayor Lori Lightfoot, and this year’s edition includes the following additional priorities for developers: 

  • Dedicated resources for Permanent Supportive Housing, including a minimum 5% set-aside for PSH in all developments. 
  • Encouraging public transit and Divvy use for transit-served developments. 
  • Greater broadband infrastructure and connectivity. 
  • Emphasis on energy efficiency and decarbonization efforts in alignment with City’s Climate Action Plan, Energy Transformation Code and the Building Decarbonization Recommendations Report. 
  • Bolsters site-specific opportunities in Woodlawn, East Garfield Park, and Pilsen. 
  • Financial consultant fees no longer must be paid by the developer fee. A capped amount can be included in the Professional Fees budget category. Financial consultants must be unrelated third-party entities. 
  • For PSH developments, developers are allowed to request a 5% higher developer fee to fund a supportive services escrow to be used for the cost of supportive services to benefit residents. 
  • For PSH developments, developers are obligated to develop and implement an eviction prevention plan. 
  • Developers will be expected to follow tenant selection plan guidelines outlined in the LIHTC Affirmative Fair Housing Marketing and Tenant Screening Plan document. 
  • Developers and general contractors will be expected to hold bid forums and to solicit bids at a minimum with City of Chicago Assist Agencies to open opportunities for BIPOC contractors. 
  • Construction contingency will be allowed to cover errors and omissions within the AIA Standard of Care of up to 5%. 
  • Costs associated with the requirement to retain an experienced, independent cost-estimating firm are allowed to be included in the project budget. This third-party firm is ineligible to bid on the project. 

Inside The Story

Chicago Department of Housing

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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