New Housing Rules in South Shore & Woodlawn: What Every Chicago Landlord Needs to Know

Chicago just passed a major housing ordinance that shifts the playing field for landlords, tenants, and property owners, especially in South Shore and Woodlawn. If you’re involved in rental investments, this is one you can’t afford to overlook.

The new rules arrive as the Obama Center nears completion, fueling concerns about displacement. To protect residents in the pilot area, the Jackson Park Housing Pilot Ordinance was approved by a City Council vote. Here’s what’s inside, what it means for communities, and why many are turning to trusted property management companies in Chicago for guidance.

Affordable Housing and the Jackson Park Housing Pilot

The ordinance is designed to provide housing protections while keeping affordable housing options in place. City leaders, including Mayor Brandon Johnson, have emphasized that this effort supports families, households, and long-time South Shore residents at risk of losing access to affordable rental housing opportunities.

The law applies to a defined pilot area which is roughly 60th to 71st Streets, from King Drive east to DuSable Lake Shore Drive, bounded south/west by South Chicago Avenue.

Key Housing Rules for Landlords and Owners

Tenant Associations & Right of First Refusal
If a building goes up for sale, tenants or recognized tenant associations must be given a chance to purchase it first. This slows transactions and may affect how buildings are marketed.

Just Cause Eviction
Evictions tied to a property sale require “just cause.” This ensures renters can’t be displaced without reason, further limiting flexibility for landlords.

Extended Notice Periods
Owners must now provide up to 180 days’ notice for lease terminations or rent increases. This change affects rental housing turnover and future plans.

Property Tax Debt Relief
A $3M fund offers grants up to $5,000 to help homeowners with delinquent back taxes. While funds are directed toward owner-occupants, the program may indirectly stabilize communities.

City Owned Lots & Affordable Rental Requirements
The city will reserve 25 city owned lots for affordable construction and new development. New units must remain affordable rental housing for households earning 60% of the area median income (about $40,000). This ordinance establishes a floor for affordability standards, ensuring a minimum level of protection for residents. This ensures more affordable apartments and affordability in the neighborhoods.

Rising Property Taxes and Assessments

A major concern for property owners is the surge in property taxes. Assessments in South Shore jumped as much as 88%, and in Englewood, increases reached 160%. These hikes mean higher bills for homeowners, developers, and landlords, even when rent adjustments are capped by long notice rules.

Some residents and advocacy groups like the Obama CBA Coalition, led by community organizer Dixon Romeo, argue that this ordinance is only a first step to protecting communities. The ordinance and related support programs are supported by both community organizations and local government. Rising tax burdens make support programs and grants even more critical.

What This Means for Chicago Landlords

If you own or manage apartments or rental housing in the pilot area, here’s what you need to know:

Less Flexibility on Leases – The 180-day requirement restricts how quickly you can adjust rents.
Stricter Eviction Standards – “Just cause” rules mean you must qualify eviction actions carefully.
Impacts on Sales – Right-of-first-refusal slows down sale timelines, which could affect property values.
Development Challenges – With most new units mandated as affordable, developers will need subsidies or creative financing to make construction feasible.
Tax Pressure – Skyrocketing taxes erode returns for owners, homeowners, and investors across the city.

3 Things Landlords Should Do Now

Here’s a quick checklist for landlords in South Shore, Woodlawn, or any Chicago neighborhoods watching this closely:

Review Your Lease Templates
Make sure lease language is covered under the new ordinance requirements for notice and termination.
Model Financial Scenarios
Account for higher taxes, capped rent adjustments, and long-term development costs. Use this as a tool to plan whether your units will remain maintained, viable, and well-priced.
Hire Professional Chicago Property Management
Experienced property management companies in Chicago know how to respond to new regulations, manage tenants, and handle compliance. They also provide resources and ongoing support so your investments are maintained and profitable.
Use Online Search Tools
Utilize the city’s online search features to find up-to-date information on covered properties and compliance requirements.

Why This Pilot Area Matters Citywide

The South Side isn’t the only part of the city affected. The ordinance acts as a test for broader housing plans across neighborhoods. If the pilot area succeeds, similar ordinances could be created elsewhere, including the Lower West Side and other growing communities.

With the Obama Center driving development, local agencies and the mayor’s office are committed to ensuring that affordable housing is established, maintained, and accessible to long-time residents, renters, and seniors.

Stay Ahead with Chicago Property Management Expertise

For Chicago landlords and property owners, the Jackson Park Housing Pilot represents a significant shift. It introduces new obligations but also benefits programs and stability for families and residents.

Staying compliant while protecting your bottom line requires vigilance, careful financial modeling, and often professional help. By working with trusted property management companies in Chicago, you can explore your options, protect your units, and ensure your investments thrive.