Tag: zoning

Zoning 101: Business live/work units

This is the first post in what might become a video series about the Chicago zoning code. I picked business live/work unit because they’re a rarely seen “use” (an establishment) in Chicago, likely in part due to how few buildings are zoned to allow them and that the rules setting their minimum size might make eligible spaces doubly harder to find.

There is no order! An authentic “Zoning 101” would probably start by describing zoning, but I’m assuming you know that Chicago has a zoning code that defines what can and cannot be built or practiced on every property in the city. Business live/work units are one of those many things the code defines and regulates.

A business live/work unit is distinguished from an artist live/work unit in the Chicago zoning code in that it allows more business types – i.e. more than the creation or practice of art is allowed – but it requires that they happen on the ground floor. Artist live/work units are allowed in more zoning districts as of right (no additional permission necessary) above the ground floor.

What do you want to learn about next? Leave a comment or @ me on Twitter (stevevance).

Links to the relevant parts of the Chicago zoning code:

Don’t ban apartments on this vacant lot if you want more affordable housing – a case study

A vacant lot is for sale near the 606’s Bloomingdale Trail, a popular amenity that’s now known to have an effect in increasing home values. It’s zoned RS-3, which means it bans apartments. If the zoning stays the same, then the vacant lot will only allow a rich family to move in here. If the lot’s zoning is changed to allow apartments or condos, then the vacant lot could welcome families that earn median incomes.

You can build multi-family housing on the lot if you can get a zoning change, but you’ll have to pay the city a fee, convince your future neighbors that they shouldn’t oppose it, convince the alder that he should support it, and you’ll have to hire a lawyer.

Let’s say that zoning changes in Chicago were free and frictionless*. What should be built on this lot?

If the lot would allow multi-family housing, we can build several units for less money per unit than if we built a single-family house. That means that three families (let’s stick with three, which requires a zoning change to RM-4.5) could be housed for less money per family than the cost of one family.

How’s that? The sticker price for this lot is $425,000 right now, and if one family is paying for that plus the cost of building a house, then your minimum investment is pretty massive. (I suspect the lot will sell for something closer to $400,000.)

I looked at new construction costs on Chicago Cityscape, as indicated on building permits issued within 1 mile of the vacant lot, took the average, and added it to the cost of land per unit.

Construction costs

The average new construction single-family house, from the 10 most recent permits, is $304,052.78.

The average new construction multi-family housing, from the 10 most recent permits, is $230,192.13 per unit.

Total cost per unit (land + construction)

Add in the land cost per unit ($425,000 for the single-family house and $141,666.67 per unit for the 3-flat) and you end up with the total costs of:

  • $729,052.78 for the single-family house
  • $371,858.80 per unit in the 3-flat

Add in the profit or “cap rate” that a builder wants to make and the price is even higher, but the people who would buy in the multi-family house would be paying much less for their homes.

Takeaways

The city can generate more affordable housing if it “upzones” vacant land and stops banning multi-family housing. (Much of the city’s parcels have been “downzoned” to ban multi-family housing in a process that creates “exclusionary zoning” and allows only – expensive – single-family housing.)

The city and the Chicago Transit Authority will earn more real estate transfer taxes (RPTT) from the sales of the units as condos than from a single-family house.

Three families instead of one would enjoy living to the wonderful amenity that the Bloomingdale Trail and the parks that the 606 offers.

Want this kind of analysis for a property in Chicago? You can order a zoning report from me.

* The City of Chicago charges a zoning change fee of $1,025, and you will most likely have to hire a lawyer, and it will take about 3-6 months, depending on the complexity of the proposal that requires the zoning change. You can use Chicago Cityscape to see actual approval times (excluding the time meeting the alder for the ward of the proposed project).

Upzone the 606

Map of the single family-only zoning around the Bloomingdale Trail

The area in green only allows single-family houses to be built.

Something’s gotta give.

This is all of the land area within two blocks of the Bloomingdale Trail that allows only single-family housing to be built (view full map). This isn’t to say that multi-family housing doesn’t exist here; it definitely does, and there’s probably a handful of two-flats on a majority of the blogs.

All of the five parks of the 606 are within this two block radius, and 49.6 percent of the land allows only single-family housing to be built.

But why build a transportation corridor, a park, a new, expensive, public amenity, and not change the kind of housing – which often determines the kind of family and makeup of a household – that can afford to buy a home near here.

It’s already been shown that detached single-family housing prices have grown intensely the closer you get to the trail. That price growth has meant displacement for some, and “no chance to buy or build a house here” for many others.

There are still plenty of vacant lots within the mapped area; lots that should have a 2-4 unit building built on them, but where only a 1-unit building is allowed.

This map was made possible by the new Zoning Assessment tool on Chicago Cityscape. Read about it or use it now.

Yes, please, to Accessory Dwelling Units and adopting Vancouver’s policy

income property

There’s a couch house back there, providing an income opportunity for the owner of this single-family house. It’s hard to find photos of coach houses in Chicago because, given their position behind the house, it’s hard to see them from the street! Photo by Curtis Locke

I’m a huge opponent of how cities use zoning to keep densities very low and prevent people from moving into a neighborhood to enjoy high quality public schools and good access to transit. This is evidenced by many of my tweets about zoning analyses in Chicago over the last two weeks, and many blog posts I’ve written over the years.

I’m a proponent of Accessory Dwelling Units. In Chicago these are most commonly seen, in practice, as coach houses, which were built before most of us were born. ADUs, because they’re behind the primary building on a lot, are a nearly-hidden, low-impact way to provide affordable housing for a couple more people per lot without affecting the “character” of the neighborhood. And they generate rental income for the family that owns the primary building!

Coach houses, and ADUs, are illegal in Chicago. You’re allowed to keep the one you have, and it can be rented out to anyone else, so long as you don’t renovate it.

Bryn Davidson is an architect based in Vancouver, B.C., and his firm, Lanefab, designs ADUs in that city, a housing type that was legalized in 2009. He wrote an article in CityLab today and there are *so many quotable parts*.

In the article, Davidson offers five strategies for a city that’s developing an ADU legalization policy.

In the “Keep the approvals process simple” strategy, Davidson says that Vancouver’s policy means homeowners “don’t have to solicit feedback from neighbors”, adding, “The…is perhaps the most important. In North America we have a long history of granting neighbors truly extraordinary veto powers when it comes to adding new housing. Going forward, if we want to treat younger generations and renters more fairly, we need to stop trying to litigate housing on a lot-by-lot basis.”

This is one of the worst things about zoning today. Zoning is supposed to be the way that you tell property owners what they can expect to be able to build, and it’s a way for cities or residents to manage certain aspects about the way their area looks and who is living there.

But if everywhere in the city (cough Chicago cough) where people want to build is improperly zoned to begin with – for example, allowing only single-family houses near train stations in areas that have hundreds of apartment buildings that predate that zoning – you get a situation where so many property owners have to ask their city council member for a zoning change.

The next quotable is…the entire parking strategy. But here’s some choice parts:

  • “We argued at length about parking in Vancouver, but in the end, opted to require only one onsite parking space…”
  • “Some neighbors will get irate about the new competition for street parking, but here’s the counterpoint: If a neighbor is complaining about street parking, it’s because they’re using their garage…for something else”
  • “Either way, a lot of single-family-home residents are parking on city property for free while extracting extra value out of their private land.”

Chicago is experiencing gentrification, with rising property values and taxes in neighborhoods filled with households that can least afford it. Many of these households live in a single-family house – what do you think about giving them the opportunity to renovate and rent out an existing coach house in North Lawndale, or build a new coach house in Humboldt Park?

How much of the land within walking distance of a CTA station is zoned to allow multi-family housing?

I recently created the Zoning Assessment tool on Chicago Cityscape, which shows a map of aggregated zoning districts in a given community area, ward, or near a CTA or Metra station. Per Paul Angelone’s suggestion, you can now show the walk shed – the area within walking distance to the station, following the streets.

The maps in this post show where one can build apartments (including a simple and common two-flat) within a 15 minute walk to the Logan Square Blue Line station, which has 24-hour service. Try it yourself.

Thirty-one percent of the walk shed allows multi-family housing.

In a second version of the same map, I’ve marked in red the gaps in the zoning map. These are areas that are zoned to allow only single-family housing. That doesn’t make sense: The land near rapid transit stations should be much denser than the land away from the stations.

Sixty-four percent of the walk shed allows only single-family housing. The remaining five percent are planned developments (at least the Mega Mall is going to have a couple hundred dwelling units), manufacturing, and parks.

And if most of the block is already zoned to allow multi-family housing, why are these parcels skipped?

This is the same map as the one above, but with areas that allow only single-family housing marked in red (however, I skipped some areas to save myself time).

How it works
The walk shed boundaries are generated by Mapzen’s isochrone service. The Zoning Assessment map asks Mapzen for the polygon of a specified walk shed (walk or bike, 10 or 15 minutes), receives the polygon and sends that polygon to a custom API on the Cityscape server, which compares that to the server’s copy of Chicago’s latest zoning map. The comparison is then returned to the browser and replaces the default Zoning Assessment map.