(Bloomberg) -- Chicago Mayor Brandon Johnson is seeking approval this week to issue several billion dollars in bonds to modernize O’Hare International Airport as well as convert two office buildings into affordable apartments.

The city council’s finance committee on Monday voted on a series of proposals from the Johnson administration. The proposals could add up to more than $4 billion in debt. The plans still need approval from the full city council, which next meets on June 12.

The fortunes of the nation’s third-largest city have risen in tandem with the state of Illinois in recent years. Chicago bonds have been rallying, despite a surge in municipal issuance, including in the airport sector. An index of BBB rated municipal bonds, of which Chicago is the third-biggest issuer, has gained about 0.6% this year compared to losses in the broader market. 

Airport debt makes up the bulk of the proposals. The committee approved a plan to issue up to $3 billion in general airport senior lien revenue bonds and passenger facility charge revenue bonds for O’Hare capital improvements. The bonds would be a mix of new money and refinancings in three different transactions from July through November, according to the city’s presentation at the meeting on Monday.

The panel also held a hearing on Monday as part of the renewal of an authorization for up to $1 billion in short term line of credit or commercial paper notes to allow tax-exempt spending to continue for O’Hare.

The committee also approved a bond sale worth as much as $400 million of second lien debt to refinance the city’s water system. The deal is slated for August, according to the city’s presentation. The city’s improved ratings provide the potential for cost savings through refinancings, according to the presentation. 

Johnson also wants to sell more than $150 million in multi-family housing revenue bonds to increase the availability of affordable housing in the central business district. Office buildings in Chicago’s Loop have seen vacancies rise while a shortage of affordable housing also plagues the city. Johnson earlier this year decided to move ahead with predecessor Lori Lightfoot’s plan to rehab a handful of office buildings into apartments intended to revitalize the downtown area.

The city intends to issue the housing bonds and lend all or a portion of the proceeds to the developers to help finance the cost of the project. The finance committee approved proposals including up to $70.5 million for the conversion of 208 S. LaSalle Street and up to $88 million for 111 W. Monroe Street.

(Updates with finance committee votes throughout and details on short-term loans and notes in fifth paragraph.)

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