The Intent: Over 68,000 Chicagoans are currently experiencing homelessness, and the City needs flexible, dedicated revenue to create long-term, structural solutions to address this challenge. 

The Approach: As detailed in a draft Implementation Ordinance, the City’s plan is to prioritize permanent supportive housing and services. We are committed to a solution to homelessness that prioritizes affordable housing. Reducing the number of Chicagoans experiencing homelessness requires expanding and preserving the housing stock for extremely low-income Chicagoans. City departments including the Department of Family and Support Services and the Department of Housing continue to offer resources to those experiencing homelessness through rental assistance and necessary supportive services to help households stabilize. 

The Economic Impact: There are many factors that contribute to the volatility of the real estate market. There is little concrete evidence at this point that this one-time marginal tax at point-of-sale would have a major negative impact on the industry. The City included the results of an independent economic analysis from professors at University of Chicago. 

Accountability Measures: All appropriations will be subject to approval and oversight by the City Council through established budget processes. Community input will be ensured through the establishment of an advisory board composed of stakeholders with lived experience of homelessness. 

Barriers to Development: The City has many tools to encourage development. On December 11, 2023, Mayor Brandon Johnson signed Executive Order 2023-21, formally launching the Cut the Tape Initiative by directing fourteen relevant departments to work together to streamline City development processes, including zoning, financing, building permits, design review and more.