Study finds rising rents, home values near Obama Center too expensive for current residents: ‘The situation is getting worse’

Six weeks after two South Side aldermen introduced a community benefits agreement aiming to prevent the Obama Presidential Center in Jackson Park from displacing area residents, a new study brings to question whether it might be too late.

The Voorhees Center for Neighborhood and Community Improvement at the University of Illinois at Chicago examined current housing in the area around the proposed $500 million Obama center to consider development strategies that won’t cause displacement of the neighboring community.

“Rents and home values are rising in the area around the Obama Center and the situation is getting worse, but there is also an opportunity to do development without displacement,” said Janet Smith, co-director of the Voorhees Center.

The full report was released Thursday during a news conference at City Hall, 121 N. LaSalle St., but a news release Wednesday announcing the study said it found “clear evidence” of rising rents in newly renovated and new construction units that most current area residents cannot afford.

According to the announcement, prices among for-sale housing in the area are rising at a faster rate than the overall city since 2016, and eviction rates are some of the highest in the city. South Shore leads in eviction rates, averaging 1,800 a year, which is about 9% of renters.

If rents in the area rise above the Fair Market Rent set by the U.S. Department of Housing and Urban Development, voucher holders who have a rental subsidy may no longer be able to live in the area.

“This may be the case now given how many renters with income below $20,000 are paying more than 30% for rent,” the announcement said.

Still, the study suggests it could be possible to promote the development without displacing residents. According to its announcement, an estimated 214 acres of vacant parcels are zoned for residential development, providing opportunities for new mixed-income and affordable housing options.

Alds. Jeanette Taylor (20th) and Leslie Hairston (5th) introduced a community benefits agreement in July that would implement protections within two miles of the Obama center.

The CBA Housing Ordinance would triple the amount of affordable housing set aside from 10% to 30%, set a side city-owned land for affordable housing and set up a fund supporting property-tax relief.

Other affordable-housing strategies introduced by the ordinance include requiring developers creating 10 or more affordable units to make sure at least half have multiple bedrooms and requiring multifamily building owners to give residents and the Department of Housing at least 180 days’ notice if the property will be sold or transferred.

The department would be required to keep a list of qualified purchasers with a “demonstrated commitment” to affordable housing who would have a right of first refusal to purchase the building.

Former President Barack Obama has said he opposes the agreement, claiming the center will be an economic engine strong enough to uplift the neighboring community.

In a non-binding referendum in February, around 90% of voters in four precincts covering parts of Jackson Park, Woodlawn and Washington Park supported a benefits agreement.