Tag: zoning code

Three ordinances would decide whether Chicago’s lowest-cost housing gets easier or harder to build

Three ordinances introduced at City Council in the last four weeks would change the zoning rules for single room occupancy (SRO) buildings, shelters, and community homes. One of them makes it easier to build these kinds of housing. The other two ordinances would add new requirements that would make it more expensive to build them, extend approval timelines, and reduce the number of eligible locations for building them.

The ordinances arrive during a housing shortage that is most severe at the bottom of the market but only one would make a positive impact. Let’s review the latest information on housing supply in Chicago:

  • The Chicago metro area is short about 224,000 rental homes that are affordable and available to extremely low-income renters (households earning 30 percent or less of the area median income, or $25,200 for one person), according to a March 2026 report from Housing Action Illinois and the National Low Income Housing Coalition.There are only 31 such homes for every 100 of those households.
  • Chicago permitted 3,916 new homes in 2025, last among U.S. jurisdictions with at least a million residents, according to Census Bureau building permit data.
  • The city’s point-in-time count on January 22, 2026, found about 6,527 people who are staying in shelters or outside, down 12 percent from 2025 but near an all-time high.
  • The number of people sleeping outside rose almost 25 percent, to about 1,641, even though the count happened on one of the coldest nights in recent memory.
  • People are sleeping in parks and under viaducts. For several years, news media have reported on tent encampments along the North Branch of the Chicago River and in Ronan Park in Albany Park, and the city cleared one at Legion Park in March after two fires there. At Gompers Park in North Mayfair, the city matched about 30 encampment residents with housing at a March 2025 “Accelerated Moving Event.” The Park District removed the remaining tents in May 2025 to build a nature play space, and many of the people still living there moved across the street to Eugene Field Park. Park District Superintendent Carlos Ramirez-Rosa has said there are about 60 encampments in the city, mostly in parks, that residents of a cleared encampment generally move to another park, and that Chicago lacks enough housing for people experiencing street homelessness.
  • In the 34th Ward, people set up tents under the Metra viaducts on Lake Street near Clinton Street, next to Ogilvie Transportation Center. When the city cleared that encampment in December 2023, seven people accepted rehousing help from the Department of Family and Support Services and 15 declined. Ald. Bill Conway said at the time that many might return.

The three ordinances take different approaches in light of the situation.

  • Ald. Anthony Quezada’s ordinance would allow SROs and shelters by right on most commercial streets and downtown.
  • Ald. Pat Dowell’s would require a special use hearing for any new SRO in a residential district, when currently that is not required.
  • Ald. Ronnie Mosley’s would add new notification requirements for community homes, transitional residences, and transitional shelters, as well as minimum spacing rules between existing and new uses in those categories. This ordinance would drastically reduce the number of eligible locations for these housing types.
OrdinanceSponsorIntroducedWhat it does
O2026-0029459Ald. Anthony Quezada (35th Ward) + 11 othersOctober 14, 2026Allows SROs and shelters by right in most business, commercial, and downtown districts
O2026-0027579Ald. Pat Dowell (3rd Ward)September 23, 2026Requires a special use for new SROs in RT-4 and all RM districts, when currently that is not required
O2026-0029477Ald. Ronnie Mosley (21st Ward) + 30 othersOctober 14, 2026Adds 1,000-foot spacing rules, notifying the local alderperson and police district commander, as well as a bigger notice radius to property owners for proposed community homes, transitional residences, and transitional shelters

A quick glossary

The zoning code has its own vocabulary for these housing types, so here’s what each one means in plain language:

  • Single room occupancy (SRO): a building of small, private rooms, often with shared kitchens or bathrooms. Historically these were residential hotels and for young men moving to the city for the first time looking for work.
  • Temporary overnight shelter and transitional shelter: places for people experiencing homelessness to sleep, either night-to-night or for a longer stay while they find permanent housing.
  • Transitional residence: a temporary, supervised living arrangement, such as housing for people undergoing substance use treatment or reentering society after being incarcerated.
  • Community home: a group home where people with disabilities live together as one household, sometimes with staff. A “family” community home is smaller; a “group” community home is larger.
  • Special use: a use the zoning code doesn’t allow by right. The applicant has to notify owners of nearby property owners, hire (usually) an attorney, and win approval at a public hearing of the Zoning Board of Appeals.

It’s the experience of every person or organization who has to obtain a special use that their project costs more, is approved later than expected, requires hiring consultants, and pays additional city application fees. These applicants are constantly working under the possibility of being denied after the applicant has already bought or leased the property.

For these types of housing, specifically, applicants and the people who they would house are often subjected to vile NIMBYism and bigotry during this process. Housing delayed is housing denied.

Quezada’s ordinance: SROs and shelters by right in business and downtown districts

Ald. Quezada’s ordinance, co-sponsored by 11 colleagues, would expand where SROs and shelters are allowed without having to get a special use, to the business, commercial, and downtown zoning districts. B and C districts line most of Chicago’s commercial streets, often near transit. D districts are only in downtown, including River North, South Loop, and part of West Loop.

UseDistricts going from special use to permitted
Single room occupancyB1, B3, C1, C2, DC, DX (already permitted in B2 and DR)
Temporary overnight shelterB1, B2, B3, C1, C2, C3, DX, DR
Transitional shelterB1, B2, B3, C1, C2, C3, DX, DR
Transitional residenceNo change; still a special use

Dowell’s ordinance: special use for SROs in residential districts

Ald. Dowell’s ordinance would amend one line in the zoning code’s residential use table (Section 17-2-0207). Today, SROs are permitted by right in RT-4, RM-4.5, RM-5, RM-5.5, RM-6, and RM-6.5 districts. The ordinance strikes the “P” and replaces it with “S” in all six, which would thus require new SROs and some renovations of existing SROs to obtain costly special use approval from the Zoning Board of Appeals.

Those districts are where Chicago allows apartments and condo buildings. (SROs already aren’t allowed in districts that mandate detached single family housing and don’t allow multifamily housing.) There would be no residential district in Chicago where someone can build an SRO with only a building permit.

This doesn’t change the city’s 2014 SRO Preservation Ordinance, which protects existing SRO tenants when a building is sold or converted.

Mosley’s ordinance: spacing, notification, and a bigger notice radius

Ald. Mosley’s ordinance has 30 co-sponsors, including Ald. Dowell. It adds four new requirements:

  1. 1,000-foot spacing for community homes. A community home would be prohibited within 1,000 feet of another community home (new 17-9-0104.2).
  2. 1,000-foot spacing for transitional residences and shelters. Either one would be prohibited within 1,000 feet of another transitional residence or transitional shelter (new 17-9-0115-E).
  3. Notification before opening. Community homes that are permitted by right, and therefore don’t need a special use, would still have to notify the alderman’s office at least 30 days before they start operating (new 17-9-0104.1). Transitional residences and shelters would have to notify the Chicago Police Department district commander when they file for a special use (new 17-9-0115-D).
  4. Four times the notice radius. Special use applications for community homes, transitional residences, or transitional shelters would have to mail notice to every property owner within 1,000 feet, instead of the standard 250 feet. That’s twice the 500-foot radius the code requires for landfills, incinerators, and waste transfer stations.

A 1,000-foot radius is about a block and a half in every direction (a standard Chicago block is 660 feet). Mailing to every owner in that circle costs more and reaches more people. The spacing rules mean that once one group home or shelter opens, the surrounding area is off-limits to the next one. And the proposed ordinance offers no variation or other relief from the 1,000-foot spacing rules. This increases the number of letters that have to be sent by about seven times.

It’s my understanding that community homes house people with disabilities, and the federal Fair Housing Act prohibits zoning rules that discriminate against them. Spacing rules for group homes have been challenged before. In 1996, a federal appeals court ruled that the Fair Housing Act preempts Michigan’s spacing and notice requirements for adult foster care homes, which included a review of similar facilities within 1,500 feet (Larkin v. Michigan Department of Social Services). Other court rulings have found that refusing an exception, or reasonable accommodation, from spacing requirements violates the law. In 2022, a federal jury ordered Springfield, Illinois, to pay $293,000 after the city tried to close a group home under its 600-foot spacing ordinance.

What the Metropolitan Planning Council recommends

The Metropolitan Planning Council (MPC) published At What Cost?, an honest assessment of Chicago’s zoning and land use regulations, earlier this month, after a three-year study that gathered input from more than 700 people (including yours truly). Timing between their report and the three proposed ordinances is coincidental!

MPC recommends removing the requirement that “single-room occupancy buildings, shelters, and other group living quarters” get special use approval in many zoning districts, because it “delays or blocks a necessary housing option.” More broadly, MPC recommends permitting most current special uses by right, with use standards, and reserving Zoning Board of Appeals review for uses with likely health and safety impacts, such as heavy manufacturing, waste processing, and adult uses. MPC’s analysis of ZBA decisions from 2011 to 2023 found that the board approves 92 percent of applications and explicitly denies only 3 to 4 percent, but that the process is complex and lengthy, often requires an attorney, and depends heavily on the local alderperson’s support.

How the Connected Communities ordinance prevents new development approval from languishing by forcing a vote

I want to clear up confusion about how the inclusionary application process, included in the Connected Communities ordinance that took effect in June 20221, works to prevent new proposed projects from languishing in City Council.

It does not bypass alderperson prerogative, the custom of every alderperson supporting and going along with every other alderperson’s support or disapproval of a proposed project.

The inclusionary application process forces a vote for a proposed project that meets certain requirements. Sterling Bay is in the middle of this process, the first time the process has been activated, for their proposed project at 1840 N Marcey St, which would have 615 homes in place of a one-story office building.

How the process should work

An “inclusionary application” is a project that’s proposed to be approved as either a Planned Development or Type 12 and meets these requirements:

must meet these requirements:

  • it has a residential or mixed-residential use
  • the location is in an “inclusionary housing” area3
  • the location is in a transit-served location4
  • either that the full portion of ARO units is provided on-site (20 percent of all units) or that 20 percent or more of the units are affordable via some other agreement or code5
  • it has been approved by Plan Commission
  • a public meeting is held, in the ward of the proposed project, to explain the proposal and solicit comments

The Zoning Administrator and the Chicago Department of Housing Commission must concur that the proposed project meets those requirements6. Another requirement is that City Council’s zoning committee has not voted on it within 300 days of Plan Commission approval.

Chicago Plan Commission approved the 1840 N Marcey St proposed project on June 20, 2024. To stay in the approval process, zoning committee needs to not vote on the project before April 16, 2025 (300 days later).

However, and this is important, the zoning committee can take up the matter before that time and vote to approve or deny it. An approval would mean the project goes to City Council for approval or denial and concludes the inclusionary application process.

After that 300 day period elapses and the zoning committee has not voted on the proposed project, the applicant can submit written notification to the zoning committee chair to request that the committee act on the applicant’s inclusionary application. A clock starts. There are three outcomes at the end of 60 days:

  1. zoning committee has voted and did not approve the proposed project
  2. zoning committee has voted and approved the proposed project (a “do pass” recommendation)
  3. zoning committee does not vote on the project and reports a “do pass” (approve) recommendation to City Council – this is the key part, the “shot clock”, of how the Connected Communities can ensure that a compliant residential project’s zoning change application doesn’t languish in City Council.

If it’s approved via #2 or #3, it proceeds to City Council which still vote on the project. And they can approve or disapprove it; there is no bypassing zoning committee or bypassing City Council.

Typically at City Council meetings, the Council votes on a motion that approves, in a single vote, all of the zoning change applications that the zoning committee approved (a.k.a. those proposed projects that have a “do pass” recommendation). If that happens, then the project has been approved by City Council.

But an alderperson could make a motion to vote on zoning change applications separately, and pull this proposed project out of the group. This is when alderperson prerogative might come out to play, and 26 or more alderpersons may go along with the alderperson of the ward where the project is located and who doesn’t support the proposed project, and the proposed project/zoning change application is killed.

It’s also when 26 or more alderpersons can make choices on behalf of the city and not on behalf of a discriminatory practice and vote to approve the project.

Notes

  1. The inclusionary application process may have been added in part to avoid future lawsuits against the city when City Council allows a zoning change application to be deferred indefinitely (the languishing part of this article’s headline). Glenstar sued the City of Chicago after City Council let the proposed apartments at 8535 W Higgins Ave languish. ↩︎
  2. A “type 1 zoning map amendment” changes the zoning district and obligates the property owner to build what meets the zoning district’s standards and what is described in their zoning change application. Contrast this with a “type 2 zoning map amendment” which allows anything to be built that meets the standards of the zoning district. ↩︎
  3. An inclusionary area means a high-income area with a low amount of affordable housing and is considered, informally, not to be in a gentrifying process. See the ARO map on Chicago Cityscape. ↩︎
  4. The proposed project is within 2,640 feet of a CTA or Metra rail station entrance or exit or within 1,320 feet of a CTA bus line corridor roadway segment listed in Table 17-17-0400-B. ↩︎
  5. The code says, “20% or more of the on-site dwelling units are subject to recorded covenant, lien, regulatory agreement, deed restriction, or similar instrument approved by the Department of Housing”. ↩︎
  6. See the full code starting at 17-13-0608 and going through 17-13-0608-B. ↩︎

Zoning assessment: Old Town Canvas

The alternative headline is “Zoning assessment: how to propose a large building outside downtown Chicago when the current zoning code doesn’t typically allow that and the current zoning code goes against historical development norms for the city”.

I’ve said many times on social media how the Chicago zoning code doesn’t allow many extant buildings to be built because a zoning district that would allow the height, bulk, or density (“size”, for short) doesn’t exist anymore. All of those examples were outside of the downtown district because the downtown district still allows the size of all the extant buildings there.

The Old Town Canvas development would replace the Walgreens building. The development’s size is in line with all the other nearby high-rise residential buildings.

I am going to describe how a building with the size of the proposed Old Town Canvas development is allowed outside of downtown (view the boundary). The development shows how to use multiple standards in the Chicago zoning code to build a lot of needed housing and serves as another example of the Chicago zoning code being much more restrictive than its previous iterations.

I won’t belabor the point any further, but it shouldn’t take “zoning cleverness” to build more housing in Chicago.

About the development

The Old Town Canvas development’s size – proposing 500 homes in a building 395′ tall – is largely possible because of two longstanding standards in the Chicago zoning code, neither of which are unique to the site – there are no loopholes here.

Those standards are:

  1. the “-5” zoning district’s allowance for nearly unlimited height if the property has a sufficient length of street frontage
  2. the ability to establish a Planned Development and shift zoning capacity from one parcel to another, even across a roadway

1. Height limits in “-5” zoning districts

In a B-5 or C-5 zoning district, the height limit is based on how much street frontage1 the property has. For a property that has 100 feet or more of street frontage the height limit is normally 80 feet. However, an exception2 in the zoning code allows buildings to “exceed the maximum height” if approved and reviewed as a Planned Development3.

This means there is no maximum height, but there are certainly influencing factors: the support of the local alderperson, the support of the city planning staff, and guidelines from the FAA.

2. Planned Developments can move zoning capacity between parcels

A basic zoning assessment of the parcels for the building results in an estimate that 179 homes would be allowed here. This is much fewer homes than previous Chicago zoning codes allowed, and much fewer homes on a similar sized parcel than the four nearest high-rises which have about the same or more than the proposed number of 500.

To be able to build 321 additional homes the developer has proposed incorporating the unused zoning capacity of Piper’s Alley, a mixed-use development, and Moody Bible Church, where the most recent community meeting to discuss the traffic study was held this month.

I can’t get into specifics because I don’t have knowledge of how much unused FAR and MLA per unit that each of those other properties can transfer. To do that I would need to see architecture drawings showing how much floor area the buildings have already.

In this case, the owners of the other properties must give their consent to the Old Town Canvas developer to be incorporated into a new – or in this case, an amended – Planned Development and show this consent to the City of Chicago4.

That process is essentially the definition of what many people would call “air rights” (which I think more specifically means being able to build above something, like a railroad or roadway) and municipal governments would likely call “transfer of development rights”.

Neither “air rights” nor “transfer of development rights” are commonly used terms in Chicago. There are several buildings, however, that use air rights granted to them by the railroads that own the tracks under Riverside Plaza buildings.

In New York City, to explain an alternative implementation of TDR, development rights include the ability for owners of landmarked buildings and of buildings in special districts to transfer the zoning capacity beyond the geographic limitations of the Chicago Planned Development standards. For example, a landmarked theater in the Special Midtown District can be a “granting site” of development rights to a “receiving site” within the Theater Subdistrict.

Notes

  1. In some other jurisdictions height limit is based on street width, and in Chicago’s first zoning code height was based on building depth and how much each upper section was set back from the street. ↩︎
  2. See 17-3-0408-A[1] in the Chicago zoning code. ↩︎
  3. There are codified standards regarding height in the Planned Development section of the Chicago zoning code, starting with the guideline, “High-rise buildings or towers should respect the context and scale of surrounding buildings with setbacks at appropriate heights which will also reduce the apparent mass from street level.” Other standards for high-rise buildings within Planned Developments are found in 17-8-0907-C. ↩︎
  4. Section 17-8-0400 of the Chicago zoning code has a regulation affecting ownership and site control and how Planned Developments can have multiple owners controlling multiple sites. ↩︎

Many of Chicago’s bungalows were built with basement ADUs

It’s easy to check: is there a ground-level door on the side gangway, or at the rear?

  • Walk up and down the streets of Vittum Park and Archer Heights and you’ll see dozens of houses with gangway doors.
  • Over in Portage Park a bungalow in the 45th Ward has a door at the front corner, a couple of steps down.

Back in 2018 I wrote about whether “lock off apartments” like these would be allowed by the Chicago zoning code. This was before I realized that so many bungalows have these; they’re so inconspicuous that they’re easy to miss.

Did you know that the city has 14 bungalow districts on the National Register of Historic Places? All but one would be severely affected by the proposed ADU expansion ordinance that would require homeowners to obtain a special use from the Zoning Board of Appeals in order to permit an existing ADU so someone can legally continue living in a separate household, or to permit the build out of a new ADU. That’s because most – if not all, but I didn’t check each one – of the land is zoned RS-1 and RS-2.

Google Street View images show six selected bungalows in Archer Heights that have side doors to basements. The status of each (whether they are separate households or shared with the household on the first floor) is unknown. Legally, however, most homeowners would not be able to rent out a basement unit because of zoning code restrictions here that the ADU ordinance could change. Thank you to Danny Villalobos for finding these; Danny is a fellow member of Urban Environmentalists Illinois, which has this petition gathering support for expanding the ADU ordinance citywide.

Only the homeowners in the Falconer Bungalow Historic District in Belmont Cragin would be exempt from that requirement in the proposed ADU expansion ordinance because none of the bungalows are zoned RS-1 or RS-2.

In a recent blog post I quantified how many small-scale residential properties would be affected by the RS-1/2 “carve out”. In this post I’m discussing those same kinds of properties but in the 13 bungalow historic districts that would be affected.

A list of 13 of the 14 historic bungalow districts in Chicago and the number of small-scale residential properties that are in RS-1 and RS-2 zoning districts that would have to obtain a special use from the Zoning Board of Appeals in order to have an ADU if the current version of the proposed ADU expansion ordinance would be adopted.

The sizable impact of requiring Chicago homeowners to get special use approval to build an ADU

Show your support for a version of the proposed ordinance that enables equal access to ADUs in all residential zoning districts and does not have the carve out explained below by emailing your alderperson and asking that they support ADU expansion into every residential zoning district without special use approval (reference ordinance SO2024-0008918, and then sign this Urban Environmentalists Illinois petition). I spoke about this issue with Mike Stephen on Outside The Loop radio on July 27, 2024 (skip to 6 minutes).

It’s possible that the Chicago City Council votes to approve an ADU expansion ordinance that would require about 38 percent of small-scale residential property owners, specifically in RS-1 and RS-2 zoning districts, to obtain a special use from the Zoning Board of Appeals to build an ADU. Special use approval is intended for limited and certain businesses and building types that can have an adverse impact and may require mitigations that are reviewed and approved by the ZBA.

ADUs have not been demonstrated to have adverse impacts and this potential future requirement would impose burdens on a scale above and beyond anything else the Chicago zoning code imposes. A special use is described in the city’s code as having “widely varying land use and operational characteristics [and] require case-by-case review in order to determine whether they will be compatible with surrounding uses and development patterns. Case-by-case review is intended to ensure consideration of the special use’s anticipated land use, site design and operational impacts.”

Yet an ADU is a residential use; its operational characteristics could not be incompatible with other residential uses. This requirement would be extremely unusual and especially burdensome. There is only one other special use approval that a residential property owner would have to seek, which is to allow housing on the ground floor in B1, B3, C1, and C2 zoning districts.

Applying for a special use for a small home presents a major obligation to the property owner, and requires them to perform the following:

  • Submitting a full building permit application with plans and obtaining a “certificate of zoning denial” before being able to start this process.
  • Paying a $1,000 application fee to the City of Chicago.
  • Hiring an expert witness to write a report and provide testimony at the ZBA hearing.
  • Preparing the finding of fact, a report which (a) describes how the ADU complies with all applicable standards of the Chicago Zoning Ordinance, (b) says that the ADU is in the interest of the public convenience and will not have a significant adverse impact on the general welfare of the neighborhood, (c) explains that the ADU is compatible with the character of the surrounding area in terms of site planning and building scale and project design, (d) states that the ADU is compatible with the character of the surrounding area in terms of operating characteristics, such as hours of operation, outdoor lighting, noise and traffic generation, and (e) outlines that the ADU is designed to promote pedestrian safety and comfort.
  • Preparing the application (which is extensive).
  • Complying with onerous legal notification requirements including determining property owners of record within 250 feet of the subject property, paying for and posting public notice signs and ensuring they remain posted until the public hearing, and mailing notice letters to surrounding property owners within the 250 feet notice radius.
  • Presenting the project to the Zoning Board of Appeals at an undeterminable time during an 8-12 hour meeting in the middle of a Friday, possibly facing one’s neighbors who are present objecting to the project.

Not to mention, this will gum up staff time and expertise.

Scale of impact

I analyzed the number of small-scale residential-only properties in Chicago that would and would not be subject to the special use approval requirement in RS-1 and RS-2 zoning districts if that version were to pass.

The map below shows where the proposed ADU expansion would set a different standard for homeowners in RS-1 and RS-2 zoning districts than for homeowners in all other zoning districts. It covers large parts of 40 percent of the city’s 77 community areas (read more about my thoughts on this in my letter to the Chicago Sun-Times editor).

The table below shows the results of my analysis: the owners of nearly 171,000 small-scale residential properties in RS-1/2 zoning districts would be required to undergo a costly and difficult process that would likely result in burdens so great that very few families would actually be able to take advantage of having an ADU.

About the analysis

“Small-scale residential” comprises Cook County property classifications that represent detached houses, townhouses and townhouses, two-to-six flats, courtyard buildings, and small multifamily buildings, up to 99,999 s.f. with or without commercial space up to 35 percent of the rentable square feet.

The full list of property classifications:

  • 2-02
  • 2-03
  • 2-04
  • 2-05
  • 2-06
  • 2-07
  • 2-08
  • 2-09
  • 2-10
  • 2-11
  • 2-12
  • 2-13
  • 2-25
  • 2-34
  • 2-78
  • 2-95
  • 3-13
  • 3-14
  • 3-15
  • 3-18
  • 3-91