Economists say had Chicago been successful in its bid for the Olympics affordable housing development around Olympic venues would have sky rocketed.
Economists say had Chicago been successful in its bid for the Olympics affordable housing development around Olympic venues would have sky rocketed.
“Affordable housing would have went through the roof had Chicago won its bid,” said Erik Wolfe, an economist for J.P. Morgan Chase & Co. “The South and West Sides would have experienced a growth in rental units and affordable homes since that is where most of the venues would have been situated.”
The Olympics would have also revitalized vacant lots, dilapidated apartment buildings and homes on the brink of foreclosure near venues, added Wolfe.
But now that the 2016 Olympics will not be coming to Chicago developers, property owners and even renters are wondering what happens now to affordable housing.
From a rental standpoint, Chicago-based East Lake Management and Development Corp., a Black-owned real estate company, would have benefited greatly from the Olympics, said Eileen Rhodes, vice president of development for East Lake.
“Surely the need for rental affordable housing units near Olympic venues would have been in great demand had we won the Olympics and a lot of our units, especially in Bronzeville, are affordable,” Rhodes told the Defender. “But now that we are not getting the Olympics, the demand will still be there but at a slower pace. Either way, it will not negatively affect us because we have a low vacancy rate.”
East Lake’s portfolio contains 12,000 units with the bulk of the units located on the South Side, Rhodes added. Its CEO, Elzie Higginbottom, founded the privately owned company in 1984 and since its inception Higginbottom helped redevelop pubic housing and affordable housing in predominately Black communities.
In the Bronzeville community just three blocks from the proposed Olympic Village sits Lawless Gardens, a 750-unit apartment complex owned by East Lake. Longtime residents said they are glad the Olympics won’t be coming to Chicago because it would have spelled doom for low-income renters living near Olympic venues.
“My number one concern was Black folks being displaced to make way for the Olympics mainly attended by whites,” said Gracie Brown, 71, who has lived at Lawless Gardens for 20 years.
For years developers have speculated that the building would be sold and converted into condominiums but Rhodes said that would not happen.
“We have owned that complex for some years now and are not looking to sell or redevelop it into condos,” she said. “Many of the tenants there have lived there for years so they are like family to us and East Lake treats its family well.”
But New Image Development Co. has all but abandoned its plans to build new housing in the Washington Park area where an Olympic stadium would have been built.
“We were prepared to build a 10- unit apartment building and a 20- unit condo building along King Drive near 60th Street to meet the demand for housing near Olympic venues,” said Royce Farris, CEO of New Image. “But now that there will be no mad rush for housing, we are re-evaluating if the project is still feasible.”
Much like the rest of the country Chicago is currently experiencing one of the worst housing droughts ever, with escalating foreclosures and evictions pushing many lowincome families to the brink of being homeless, said Timothy Snow, a senior loan manager for Bank of America.
To combat this problem, Mayor Richard M. Daley rolled out a fiveyear affordable housing plan to make living in Chicago much easier. The plan calls for the city to commit $2.1 billion in support services to help create 50,022 affordable housing units.
And he said affordable housing development would still flourish despite the Olympics being held in Rio de Janeiro.
“I don’t think affordable housing will take a hit. Development will go on but only after the real estate industry improves,” Daley said. “Until then, property value will remain flat.”
And much like the federal government, Chicago defines affordable housing as a household that pays no more than 30 percent of its annual income on housing. Families who pay more than 30 percent are considered cost burdened and may have difficulty affording other necessities such as food, clothing, transportation and medical care.
Without affordable housing, Daley said, communities and families will suffer.
“Affordable housing helps build healthy neighborhoods. When housing costs are minimized, families have more money to spend on other items, including education. Affordable housing also creates jobs,” he added.
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