Design and Construction Report staff writer
Chicago is the first major U.S. city to adopt a citywide model for developing permanent, affordable housing under green building standards.
The Green Social Housing (GSH) Ordinance creates the Residential Investment Corporation (RIC), to oversee development and management of mixed-income, environmentally sustainable housing. The model aims to address housing affordability while meeting the city’s climate and environmental goals.
Funded through a $135 million allocation from Mayor Brandon Johnson’s Housing and Economic Development Bond, the program will operate independently from the Department of Housing. Profits from RIC projects will be reinvested into future developments or used to increase affordability.
“With the passage of this ordinance, we are showing the nation what it looks like to take local, innovative action in the face of a growing housing crisis,” said Lissette Castañeda, commissioner of the Department of Housing.
The model responds to growing concern over the stability of federal housing programs, including the Low-Income Housing Tax Credit. City data show that more than half of Chicago renters are cost-burdened, spending more than 30% of their income on housing.
RIC will collaborate with private developers while maintaining majority ownership of housing projects throughout construction and long-term operations. The developments will be required to meet labor standards including the Illinois Prevailing Wage Act and support workforce equity through the city’s minority- and women-owned business programs.
The first GSH development is expected to break ground in 2026.
