The past 5 years have seen housing prices soar in the city of Chicago as in many parts of the country. When that happens, governments are beseiged by housing rights activists trying to get governments to subsidize housing for the poor. These advocates look to to government to use its power to coerce developers to add low income housing to their developments.

Chicago is at least more ethical than most. They only try to influence city properties that are sold under market value to developers. Many cities try to do much more than that. Of course, Chicago also defines a low income family of 4 as those earning under $74,000 a year.

Currently, developers who get bargain-rate financing with the city’s help or who buy city-owned land at a discount are required to offer up to 20 percent of their units at affordable prices.

Daley’s new proposal would broaden the definition of city assistance. In projects of 10 units or more, 10 percent would have to be moderately priced if any city land is acquired; if zoning is changed to permit residential use; or if residential zoning is changed to increase the number of apartment and condominium units that can be built.

The Preckwinkle plan would enact a 15 percent set-aside for developments of 10 or more units, applying to all new construction in the city. Daley contends that a citywide mandatory set-aside would discourage development. And a mandatory approach “automatically would [produce] a lawsuit,” he said. via the Chicago Tribune

I am not a proponent of cities dictating what developers can do with their own property, and to be honest I never have been a big fan of Mayor Daley either, but I think his plan has some merit. If you are going to get a discount buying land from the city, then you have to give something back. That is a normal negotiating posture.

This Preckwinkle character fails to offer anything constructive to developers, instead rams the power of the government down their throats by forcing all new projects to set aside low income housing in their projects. That is the wrong use of government.