Mayor Johnson Announces $1.25 Billion Commitment to Neighborhood Development

A planned $1.25 billion bond issuance announced by Mayor Brandon Johnson on Wednesday would restructure the City of Chicago’s approach to equitable neighborhood development and distance itself from the challenges of the primary public finance tool of previous administrations. “These bond proceeds will provide the City with much-needed resources to invest in our neighborhoods,” said Mayor Johnson. “This new direction will allow for greater flexibility than the City’s Tax Increment Financing program and provide critical assistance for new businesses, restaurants, affordable homes, and cultural facilities where they’re needed most — not just where there’s a healthy TIF district.” Pending City Council approval, the Housing and Economic Development Bond would provide $250 million for community improvements throughout Chicago every year for five years (2024-2028). The Department of Housing (DOH) and the Department of Planning and Development (DPD) would utilize the proceeds with fewer limitations involving geographic boundaries, eligible costs and market-driven variables that decrease TIF’s effectiveness in depopulated and disinvested neighborhoods. “The expiration of one third of the City’s 121 designated TIF districts over the next three years underscores the need for a new, more effective source of public financing,” said DPD Commissioner Ciere Boatright. “The TIF expirations create an unprecedented...