>> The city Council voted 30 to 18 today to take a new approach to reducing Chicago's massive affordable housing shortfall.

It gives Mayor Brandon Johnson a major victory as he prepares to mark the second anniversary of his inauguration.

Let's listen to the mayor.

Take a bit of a victory lap after the vote.

>> For the people of Chicago who have long for transformation days here.

Here we are at the halfway point of my administration, we were able to take the hopes and aspirations of working people in the city of Chicago, working with City Council, working with developers to bring this historic ordinance into fruition.

>> W T Tw News reporter Heather Sharon joins us now with more.

Heather, Chicago is now the largest city in the United States to create its own nonprofit housing developer.

How exactly will it work?

Well, this new organization is in be governed by a 15 member board.

The mayor will have 7 appointments that will have to be confirmed by the City Council.

>> The rest will be made up of city officials, including the commissioner of the Department of Housing.

Now it will be funded with 135 million dollars that the city borrowed about a year ago as part of Mayor Johnson sort of move away from tax increment financing districts.

So that will create a revolving loan fund that the city hopes will build what it calls green social housing, affordable housing in mixed you mixed use development that will be environmentally sustainable.

Well, and I know today's vote came after hours of debate and some pretty intense negotiations behind the scenes.

>> What changed to get it over the finish line?

Well, the biggest change in the version that actually passed today gives to the office of the Inspector general and the Chicago Board of Ethics jurisdiction over this new created nonprofit developers.

So they have the authority to root out for east waste, fraud and abuse.

Also encourages the new nonprofit developer to prioritize building units that are affordable for the poor is Chicagoans.

>> People earning less than 30% of the area's median income, which $36,000 for a family of I think some transparency, something top of mind for a lot of Chicagoans.

You know, the city is facing a housing shortfall of more than 119,000 units.

>> Supporters of the plan say that city also facing some new challenges.

Why did they think this work is particularly urgent right now?

3 words, President Donald Trump, his budget proposal released this week with slash funding for affordable housing across the nation.

It would hit Chicago, particularly hard.

>> So the supporters today we have to take matters into her own hands.

We can't rely on the federal government, which, of course, has a lot of tax credit and other subsidies out there.

That may be a thing of the past in the very near future, especially with an administration that's not necessarily particularly friendly to Chicago the moment Sharon.

Thanks very much.