>> Amid rising costs and threats to federal housing grants, Chicago is facing a shortfall of nearly 120,000 affordable housing units.

Mayor Brandon Johnson's new green Social Housing initiative aims to address that shortage by creating a city owned nonprofit housing developer, the Chicago Department of Housing is now tasked with carrying out the mayor's vision to expand housing opportunities for residents.

Joining us now is the commissioner for the Chicago Department of Housing.

Castaneda.

Thank you so much for joining us.

Thank you so much for having your friend to.

So you write in Chicago Tribune op-ed that affordable housing is a misunderstood issue.

What do you think is misunderstood?

I think for a lot of people, they're very basic of the idea of like what does it mean to have affordable housing quiz, affordable housing for is one of those things that is often seen as for poor people or for others.

But at its core, affordable housing us just about can you afford your rent or your mortgage utilities without being rent burdened in Chicago, 51% of renters are rent burdened, which means that they're paying more than 30% of their income.

What we're looking for us to Chicago in which it is affordable for everyone to rent or own home.

How is creating more affordable housing for those who need it?

How is it beneficial to the rest of Chicago?

Affordable housing economic when we are able to have affordable housing when any one of us is able to afford the home in which we live.

We are able to spend on local businesses were able to contribute to the local economy and generally be part of a stable community.

Then there's green Social Housing initiative you will.

It was recently passed in City Council, of course, creating a city owned nonprofit housing developer.

It would offer low interest loans to developers with the goal of building 400 affordable units annually.

30% of each project must also be permanently affordable for households earning less than 80% of the area median income.

Tell us about the steps that your department has to take to deliver on this initiative.

Yeah, absolutely.

We're really excited that we were able to come to a place with city Council in which we were able to get this passed.

This will mean that we will be able to add to the production of affordable housing units every year.

In addition to what we were able to provide through low income housing tax credits.

So now that we have authorization from City Council, we're going to a seat at the next board.

The new board in order to get them confirmed by City Council and get them started on looking at deals and really getting this rolling out they're still concerned over which neighborhoods will be developed in that low income neighborhoods might be left out.

How are you all addressing Yeah, we really think of great social housing as the citywide initiative.

We know that there are some places where we will be able to begin with our projects.

But at the end of the day, we know that eventually we will be able to have increase social project, pre social housing project in each of the city.

77 community areas should not.

It would also be the biggest city to create this nonprofit housing development.

And sometimes when you're the first at something, it's a risky Why do you think this makes sense for the city?

Yeah.

So this is an innovative a proven model.

It is true that Chicago is the biggest city to take this on.

But at the end of the day, other cities have taken this on and we're just doing it at a larger scale.

We fully believe that there is a desire out there for low-cost capital that can really create not just the affordable units, but the market units that the city also needs the developers only slated to build 400 units year.

And as we've discussed, Chicago's need is is much greater than that.

When a focus on building more homes faster, the 400 unit would actually be the a number of affordable unit.

So that is actually the 30% of the total number of units that we would be looking to build in total.

And so we are looking to build faster.

The Department of Housing's other big undertaking has been to participate diligently in Mayor Johnson's cut the tape effort which aims to get affordable housing with shovels in the ground faster and at a pace that is necessary to keep up with them and in the city.

So then I mean, there's obviously the housing that would that would come as a result of the Green Social Housing initiative.

But it sounds like you're also saying that the cut, the tape initiative, would encourage other developers to contribute to the affordable housing shortage as well.

That is correct.

That the idea is that result or housing is one tool in the tool box.

But we have many tools in the tool box of that work in different neighborhoods.

And at the end of the day, re social housing as part of our growing the pie strategy.

So 3 cut the tape.

We are ensuring that our other tools in the tool box are also working up there best and highest use in order to deliver the units that we need in the city.

Some alders have said, you know, this is a good start, but this does not solve all of our affordable housing needs.

What more is there, you need?

Absolutely.

And we would wholeheartedly agree.

We have a shortage of almost 120,000 units in the city of Chicago.

And again, this is one tool in the tool box in one way in which we are addressing it.

We also need to do more for homeowners and helping to figure out how help people who want to buy a home, be able to afford to do that.

We need to build more and we need to build faster and other tools such as continuing to use our low income housing tax.

Credit resources will help us achieve that.

Let's talk a little bit about Aldermanic prerogative, which lets all people decide what gets built in their wards and what doesn't, of course, during the Biden administration, the U.S. Department of Housing and Urban Development found that it fuels segregation in Chicago, violating the civil rights of black and Latino residents by limiting the creation of affordable housing.

What is the status of ongoing negotiations to resolve that probe?

Yeah, because there are ongoing negotiations, unfortunately can't comment on the ongoing legal matter.

But there are ongoing negotiations.

I mean, in to that point, Bill, what or or what is your office doing to ensure that the creation of affordable housing does not?

>> Contribute to the city's segregation issues?

Yeah, I think initiatives like social housing are actually a really great example of our ability to build various parts of the city, including parts of the city that have traditionally not had enough affordable housing.

It also has a really good indication of our ability to with elected officials to ensure we are able to reach a point where it is something that we're able do in all areas and of warrants because we can get to a good point partnership building costs have continued to rise as the city is still, of course, continuing to build affordable housing units.

And you may not necessarily have control over those costs, obviously.

But what are you doing to ensure that as we get closer to the end of any project, the budget has ballooned beyond affordability?

Yeah, absolutely.

So this has been a huge part of our cut.

The tape work, which is how do we maintain amendment minimum standard?

How do we say that?

We don't just want units that are good enough, but that are good and decent units to families can live at the same time.

How do we ensure that out costs are not skyrocketing.

And so part of our work through the cut, the tape initiative.

>> Has been an update of the architectural and technical standards Manual which will have some updated ways in which we will looking be looking at cost controls.

And also at continuing to be able to move faster because ultimately one of the biggest things that it's a challenge to projects that makes them more expensive.

It's time.

And so we're really trying to address how do we make these things move faster?

And we've mentioned it a couple of times.

I want to be sure our viewers know we're talking about the cut, the tape initiative.

Explain for them, please what this does because you also shared some your report earlier this Just on Monday, we celebrated the one-year anniversary of the cut, the tape initiative launch.

tape is based on executive order that Mayor Johnson signed in December of 2023 where he asked 14 different city departments to work together on streamlining processes and figuring out what is getting in the way of development.

Are there any concerns that actions taken by the Trump administration might impact the costs of the work that you're planning?

Sure.

I think that, you know, like anything, you know, I was I was in loosening in the car on the way here.

And there's a lot of conversation about tariffs.

Those things are certainly a concern for us.

Also, the federal administration's budget from a couple of weeks ago.

Their initial sort of Ali included cuts things that are really important to us, like community development, block grants and home investment partnership funding.

Those are all ways in which we advance affordable housing.

And so we're certainly keeping a close eye on where those negotiations and up in Congress.

What's next?

What's next for for your office?

And of course, for this new initiative?

Yeah.

So the very next thing, of course, is, again, to seek the board of great social housing and make sure that we can get deals in front of us.

It's to release our updated architectural a technical standards manual and to continue some of the work that has already begun earlier this year.

Another initiatives such as rebuilt to Plano where we are taking vacant land and vacant buildings and ensuring that we're turning them back into good and productive use