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Chicago and ADUs

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SteveSpy

Junior Member
Joined
Jan 14, 2003
Professional Status
Certified Residential Appraiser
State
Illinois
Hi All:

Was curious to see if anyone had input or reaction to the change for ADUs in Chicago Zoning Ordinance ….

17-2-0303-C Conversion Unit. Within Additional Dwelling Unit-Allowed Areas, in the case of building permit applications for the repair, remodeling, or alteration of residential buildings that are located in any RS2, RS3, RT or RM zoning district and that have been in lawful existence for 20 or more years, the density of such residential buildings may be increased in accordance with Section 17-9-0131 by 33% of the number of lawfully established dwelling units, other than conversion units, that have been in existence in the residential building for 20 or more years; provided, however, that if such residential building contains a single dwelling unit, the density of such residential building may be increased by one dwelling unit. If this 33% calculation results in a fractional number, any fractional result of 0.5 or more must be rounded up to the next consecutive whole number; and any fractional result of less than 0.5 must be rounded down to the previous consecutive whole number.

This is a pretty large About-Face from the Zoning board IMO. ADUs were ignored for a long while, then a crack-down started in the 2000s. I saw many fines and cease and desist orders come down on illegal ADUs. The current administration wants to soften the stance to ease rent pressures (I think).

For a long while, the remedy for an Illegal UDU in Chicago was removal of the cooking appliance and capping of the shower (per the City's "Easy Deconversion Permit"). FNMA announced that "The removal of a stove does not change the ADU classification." This put us in a bit of limbo....

This is a pretty substantial change for my market. ADUs vary greatly in quality, legality, etc. Many are unsafe. Most are built without permits or predate current zoning. Most are not reported in the MLS or in county records.

I have a property that would have been considered illegal a few months back... a bungalow in a low density zone (RS2) that the owner appears to have converted the attic space into an ADU. Attic unit is accessed via a rear porch. There is a language barrier with the owners and tenants, but I think he did the work himself, no permits on record, and I believe he has been renting the space.

My initial take was that the unit was not permitted and was illegal per zoning. However, the recent changes in the Code make me think It may be a legal conversion unit. IF so, then SFH with ADU legal per zoning. I figure the FNMA standard of 1 minimum ADU sale applies; excluding the ADU from GLA and attempt to pull a market reaction to the unit for adjustments.... Its gonna be rough. No data to begin within and the zoning change is only a few months old.

Just wanted to see how the change in zoning was impacting other appraisers in the Chicago market! These assignments have become more "complex"... so I need to adjust my fee schedule :) Let me know!
 
The good news is that you will see a whole lot of them as comps very shortly and things will go back to the way they were before the crackdown.
 
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