Find below answers to frequently asked questions regarding the October 2024 application round for the Missing Middle Infill Housing initiative. The FAQ will be updated as needed during the application process.

What is the Missing Middle initiative?

The Missing Middle initiative is a community improvement strategy designed to reverse decades of systemic disinvestment that created thousands of vacant lots and "missing" middle-density buildings across the South and West sides. It leverages City land and public financing for construction of new market-rate homes.

Led by the Department of Planning and Development (DPD), the pilot program is initially offering 44 vacant City lots in North Lawndale for redevelopment as one- to six-unit residential buildings. The program will expand to other communities in future phases.

Where can I find information about the Missing Middle initiative and how to apply?

Refer to the Missing Middle webpage on the City’s website for background information, application process details and webinar registration. Applicants must attend or watch at least one informational webinar being held on October 9 and 10 in order to complete an application.

When and how can I apply for the Missing Middle initiative?

Applications will be accepted until 11:59 p.m. Friday, Nov. 15, 2024, through DPD’s ChiBlockBuilder land sales portal. When visiting ChiBlockBuilder, select “Missing Middle” under the “Property Sales Program” drop-down menu to apply for a specific Missing Middle cluster.

What are the requirements for submitting an application?

Eligible City-owned parcels are being offered in six clusters, each containing at least five parcels, and applicants must apply for at least one cluster. Applications must include a projected development plan with construction timelines, conceptual design plans and a draft pro forma​. Eligible housing types include single-family homes, townhomes, two-flats, three-flats or six-flats.

Is DPD offering financial assistance to developers for the Missing Middle initiative?

DPD is offering financial incentives in the form of land cost write-downs ($1 per parcel) and up to $50,000-$150,000 subsidies per housing unit, depending on an evaluation of the developers’ proposed financing plans. Funding is allocated from Mayor Brandon Johnson’s 2024-28 Housing and Economic Development Bond.

Are there any affordability requirements for housing developed under the Missing Middle Initiative?

The maximum per-unit sale prices must be commensurate for households with an income of 140% of the area median income. For any development proposed under the Missing Middle that includes more than 10 units of housing on contiguous sites, the City’s Affordable Residential Ordinance (ARO) will apply. Sites may be considered contiguous if they do not front the same right-of-way but are adjacent across an alley. Further review may be required to confirm whether the ARO applies to a certain proposal. There are no income limits for home buyers of non-ARO units.

Will the eligible City parcels require environmental assessments and/or remediation?

For detailed information on the environmental requirements that apply to all eligible Missing Middle parcels, please see the “Environmental Requirements” section on page 9 of the Missing Middle Program Guide.

Will any Missing Middle parcels require a zoning change?

All parcels are in the RT-4 Residential Two-Flat, Townhouse and Multi-Unit District, which allows for the eligible housing types to be developed without a zoning change. One of the requirements for the Missing Middle program is to propose developments that are as-of-right.

How will applications be evaluated and when will selected applicants be announced?

Applications will be evaluated based on the applicant’s experience with developing similar projects, the financial feasibility of the project, the design quality of the proposal, the number of units proposed and the overall catalytic impact on the community.

Applicant selections are expected to be announced in December 2024 or January 2025.

What is the expected timeline for construction for selected applicants?

Upon selection, developers will be expected to expeditiously advance to lot acquisition, permitting and vertical construction, with the intent of starting construction in spring 2025. Selected developers will be expected to obtain permits via the Department of Buildings’ Self-Certification Permit Program.

What are the expectations for selected applicants who are seeking financial assistance through Missing Middle?

Developers seeking financial assistance must enter into a Redevelopment Agreement (RDA) with the City. The RDA establishes certain requirements related to the development schedule, financing plan, land acquisition and City departmental approvals, among others.

Will the City’s construction requirements apply to developers under the Missing Middle initiative?

Yes. The selected respondent must comply with the City’s construction requirements. During construction, at least 26% of qualified project costs must be paid to City-certified Minority Business Enterprises (MBEs) and at least 6% must be paid to City-certified Woman Business Enterprises (WBEs). In addition, Chicago residents must perform at least half of all construction-worker hours. Projects must pay prevailing wage rates for all construction jobs.

Does the Chicago Sustainable Development Policy apply to buildings constructed under the Missing Middle initiative?

The Sustainable Development Policy will apply to any building with six or more units developed under the Missing Middle initiative, provided the developer is receiving City financial assistance. For qualifying projects, developers will be required to meet the new construction standards of the policy by achieving at least 100 points from the approved strategies.

Can developers retain possession and rent the units themselves?

No. One of the goals of missing middle is community-wealth-building, and developers must make buildings available to owner-occupants.

Are the developments expected to be sold as individual condominium units or as whole properties? Is either okay?

Developers may sell multi-unit buildings as condominium units or sell the entire building to a buyer who will occupy at least one of the units, and they may rent out the other units.

What are the expected sales price points?

Actual prices remain to be determined, but single-family homes will likely be below $300,000. Two-flats are generally estimated between $450,000 and $550,000, three-flats from $550,000 to $700,000 and six-flats from $1.35 million to $1.65 million. These figures are subject to change based on actual costs and other factors.

Must construction start simultaneously on every lot within a cluster?

Priority will be given to developers with the capacity to start and complete multiple buildings simultaneously, but DPD recognizes potential cost efficiencies from work proceeding sequentially to maximize project phasing and construction crew resources.

Where is the list of DOB's Self Certified Architects?

The list is available as a PDF.

Can modular homes be considered?

As long as the permit can be issued via the Self Certified Permit Program. Also note that Design Quality will be evaluated for the submissions in relation to the quality of the materials and relationship to the neighborhood context and culture.

Are Area Median Income (AMI) limits for the Affordable Requirements Ordinance (ARO) different than the AMI for this program?

The Missing Middle initiative requires that the price of for-sale units be affordable to households with 140% of AMI. This differs from the ARO, which states that the price of owner-occupied units must be affordable to households earning no more than 100% of AMI. The ARO will only apply to Missing Middle proposals with 10 or more units of housing on contiguous sites.

What are the maximum sales prices anticipated for this program for a single-family residence or a 2-flat for households earning 140% AMI? 

A sales price for a 3-bedroom single-family residence in North Lawndale higher than approximately $500,000 would trigger a sales price reduction to be commensurate with 140% AMI household income. For a 2-flat, assuming 3-bedroom units, a sales price higher than approximately $430,000 per unit would trigger sales price reduction to be commensurate with 140% AMI household income. 

When considering applicants, will you all accept applicants who use hard money or private money lenders to secure funding?

An applicant’s pro forma should identify all sources of funding that would be committed to the proposed development, including private equity and debt equity. There are no eligibility requirements for sources of funding that can be proposed in an application.

Evaluation criteria says that design quality will be considered. However, without the actual purchase of a lot, I cannot provide my architect with square footage and location (for zoning regulations). What do you advise?

Proposed design plans may be conceptual, based on a rough estimate of the lot dimensions, or reference a previously completed project on a lot with similar dimensions. Most eligible parcels are consistent with “typical” residential lots in the City of Chicago with a width of 25-30 feet and a depth of 125 feet. All eligible Missing Middle parcels are in the RT-4 zoning district.

Do you have to be a Chicago resident to apply?

There are no residency requirements to apply to the Missing Middle initiative.

Will applications and a list of those awarded the lot clusters be made public?

DPD is planning for a community engagement event in early 2025 to introduce the selected applicants. Applications will not be made public.

How will homeowners be chosen to purchase Missing Middle units after they are constructed?

The Missing Middle initiative incentivizes private development on City-owned lots. Therefore, the process of selecting buyers and selling the housing units will be the responsibility of the developer.

Will there be any tax subsidies for buyers of Missing Middle housing units?  If so, for how many years?

No, there will not be any property tax subsidies for buyers. Assessments and tax payments, as determined by the Cook County Assessor’s Office, will apply.

Are there CDFIs or philanthropic entities that lend to missing middle initiatives in the city? Perhaps for soft cost expenses?

Applicants may pursue funding from such entities, but DPD is not providing those resources directly to potential applicants.

This is a pilot program. Will it be available in other parts of the city?

Yes, future phases will include City-owned properties in other community areas on the South and West sides of the City.

Will all lots in a cluster be expected to break ground in May, or if we start with only one lot would that meet the target development timeline?

Breaking ground on one lot would be considered adequate for meeting the projected timeline.

Is there a no-fault clause in the agreement for the developer if one of the parcels in the cluster proves not feasible?

If one of the parcels is not feasible for development, DPD will negotiate potential alternatives with the selected applicant.  This may involve locating another City-owned parcel in the area that would be feasible.

The permitting process can sometimes take longer than expected. Due to the relatively tight timeline of this initiative, will DPD assist in speeding this process up?

DPD is seeking proposals that can be permitted as-of-right and through the Department of Buildings Self-Certification Permit Program. This will reduce the amount of time required to obtain a building permit.

Is the assistance of $50,000-$150,000 given as a line of credit, loan or reimbursement?

Although the exact terms of the financial assistance will be negotiated in the process of drafting the Redevelopment Agreement (RDA), DPD generally provides this type of grant funding through reimbursement. The per unit subsidy is not a loan or line of credit that would need to be repaid.  

Should I submit an application for each cluster I am interested in? If the application is declined for one cluster, will it be declined for all?

Feel free to submit for all the clusters that you are interested in. If you apply for more than one, it doesn’t mean you will be declined or approved for all of them. DPD may choose to award an applicant for one cluster and deny them for another.

If you expect the developer to break ground on all the lots at the same time, around May, how soon would you release the fund subsidy? 

Although the exact terms of the financial assistance will be negotiated in the process of drafting the RDA, DPD expects the grant funding will be dispersed through reimbursements at 50% and at 100% (Certificate of Completion) of each cluster.

Does the planning department also handle the underwriting, or is that a different department?

DPD will be reviewing each of the submissions, including evaluation of the proposed budget and financial request.

Clarify if the city’s rights will be subordinate to the senior lender.  

Yes. The city’s interests will be protected via a subordinate recapture agreement and the RDA obligations would run with the land and obligate any future builder to comply with the RDA, regardless of a foreclosure event.