‘Starved of affordable housing’: Edgewater Officials Work to Implement Development

The 48th ward secured $22 million in Tax Increment Funding (TIF) for a future affordable housing project in Edgewater. 

The key funding for the development of an 11-story affordable housing project in Edgewater was secured through TIF and approved by the Community Development Commission Sep. 9. It’s the first Northside development spearheaded by the Bickerdike Redevelopment Corporation.

The building —  which will replace the Streets and Sanitations offices located at 5853 N. Broadway —  is expected to hold more than 90 fully electric apartments labeled as affordable housing. 

In accordance with Chicago’s Department of Housing and their area median income (AMI) chart, most units will be affordable for households earning up to 60% of the area’s median income, with 5 units set at a 30% AMI, according to Manaa-Hoppenworth. 

In compliance with the Affordable Requirements Ordinance, all rental units will be “100% affordable” for all households who fall under an 100% AMI, according to Bickerdike’s presentation to the Chicago Plan Commission.

Bickerdike, which has been developing affordable housing since the ‘70s, has completed projects in Chicago but has yet to build on the North Side until now.

While the process of securing funds for the project was elaborate, it remained a priority for the ward, according to Manaa-Hoppenworth.

“We in Edgewater have been starved of affordable housing,” Manaa-Hoppenworth said.

The approval process for the Edgewater project started with a discussion between community members over four years ago, according to Manaa-Hoppenworth, who said former Alderman Harry Osterman (48th) first raised the possibility of redeveloping the “underused” Broadway site. 

The proposal went through the Department of Planning and Development and the Community Development Commission, which approved the project’s funding early September.

Affordable housing projects like this rely on Low-Income Housing Tax Credits (LIHTC) — a program which provides federal funding for affordable housing. The Edgewater development secured funding through a combination of LIHTC and TIF. The tax credits are highly competitive, however. Manaa-Hoppenworth said the rate at which LIHTC proposals get approved by the state is slow. 

To drive the development of affordable housing projects forward, the alderwoman became a chief co-sponsor of the Green Social Housing (GSH) Ordinance, Mayor Brandon Johnson’s initiative to expand affordable housing while upholding sustainable development standards.

Through GSH, affordable housing projects like the one in Edgewater can rely on local money such as economic development bonds instead of LIHTC funding.

Manaa-Hoppenworth said she fears depending on federal subsidies to continue the development of affordable housing may not be the most beneficial avenue to housing justice. 

“We need to depend less on this federal government, who is very unfavorable to local cities like ours in Chicago,” Manaa-Hoppenworth said. 

In a neighborhood experiencing rising rents and low vacancies, there are many challenges for workers and families who would like to remain in the 48th ward. There are fewer options on the market for residents seeking stable housing, making it more difficult for people to consider Edgewater and establish themselves without concern over fluctuating rental costs. 

For this reason, access to transportation was vital in selecting the development site, according to the alderwoman.

In addition to bike spaces and a 17-car parking space lot, the building will also be just a block down from the Thorndale Red Line stop.

“The neighborhood has been a diverse neighborhood for a very long time and still is across race, class and ethnicity, and we like it like that,” Manaa-Hoppenworth said. “This is going to allow us to continue to attract and keep people in the neighborhood.”

The project is also appealing to younger residents, including local college students who often establish themselves in the area, said the alderwoman, whose own son recently graduated college. She said students often begin in small apartments in Edgewater or Rogers Park, where they experience the integrated city life through public transit and other public amenities before choosing to stay long term.

Third-year systems and analytics major Lekhna Gaddam, who started renting in Edgewater last July, agreed local students are a majority of the demographic in need of affordable housing north of Chicago. 

“Students especially need housing and unfortunately housing on campus is a lot more expensive and limited,” Gaddam said. 

Students have to wait for vacancies in the neighborhood and often rely on sheer luck to secure affordable housing near campus, according to Gaddam. 

Challenges like those reflect a larger need for accessible housing in the community to better accommodate the student experience, according to Manaa-Hoppenworth. 

“It’s a way to get a foothold in life and living in Chicago gives them a lot of freedom and opportunities,” Manaa-Hoppenworth said. “That’s what we want for everybody in our neighborhood.”

The project will next move to the City Council’s Finance Committee before going to the full city council. The ward hopes to break ground in the upcoming year, according to Manaa-Hoppenworth.