Key Takeaways

• Chicago is launching a $5.4 million project to build seven medium-scale homes in North Lawndale as part of its Missing Middle Housing Initiative.
• The initiative aims to address a 100,000-unit affordable housing shortfall by utilizing city-owned vacant lots for medium-density housing.
• Developers can acquire lots for $1, with potential construction assistance of up to $150,000 per unit to create affordable homes.

Project Overview

Developers recently commenced work on a project to build seven medium-scale homes in North Lawndale, Chicago. Valued at $5.4 million, this initiative is part of a broader effort to transform vacant city-owned lots into affordable “missing middle” housing, which includes duplexes, triplexes, and six-flats. This strategy aims to provide alternatives to both single-family homes and high-rise apartments. Funding is being sourced from a $1.25 billion, five-year housing and economic development bond.

According to the Institute for Housing Studies at DePaul University, approximately 8,800 vacant lots are owned by Chicago, primarily residentially zoned and located on the city’s South and West sides. These areas have endured decades of disinvestment and population decline. The Missing Middle Housing Initiative allows the city to sell these vacant lots for just $1 and offers up to $150,000 in construction assistance per unit for selected developers. The first phase of this initiative began last January.

In a statement, Mayor Brandon Johnson emphasized the initiative’s role in tackling the city’s housing crisis, stating it addresses critical disparities in homeownership access. Each project undertaken signifies collaboration between the government and the community, contributing to a more equitable and thriving urban environment.

Chicago currently faces an estimated shortfall of 100,000 affordable housing units. Experts suggest that missing middle housing could play a pivotal role in bridging the affordability gap, although its construction often encounters challenges from restrictive zoning and building regulations.

As part of the initiative, North Lawndale plans to develop a total of 115 units. The completed homes will target buyers earning up to 140% of the local area median income. Ciere Boatright, commissioner of the Chicago Department of Planning and Development, articulated the forward-thinking nature of the Missing Middle initiative as a “fast-track repopulation and wealth-building strategy.” He underscored the rapid progress made within a year of selecting developers via request for proposals, marking a significant step towards neighborhood revitalization and local wealth opportunities.

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