Category: Real Estate

rendering of the proposed project showing two buildings connected at the ground and podium level
Rendering of the apartments proposed at 1840 N Marcey St. The building is being designed by SCB.

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

January 26, 2025 / / 0 Comments

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. ↩︎

Two-flat journal 9: other two-flat rehab blogs

January 20, 2025 / / 0 Comments

It’s been nearly two years since I’ve written a blog post about the gut rehab of the two-flat I bought in 2020 so I figured an update was necessary. The status is that I’m working on finalizing a contract with a general contractor and I have a loan application in progress. Read the other two-flat journal posts.

Two-flats – and their cousins the three- and four-flats – are the second most common building type in Chicago. There are approximately 254,800 homes in 2-to-4 flats in Chicago, according to data collected by the Cook County Assessor’s Office. And according to the U.S. Census they make up 27.2 percent of residential structures in Chicago. That’s compared to 25.5 percent detached homes, 3.8 percent attached homes, and 43.5 percent of houses, apartment, and condo buildings with five or more units (2-to-4 flats can also be condo buildings).

Thus it makes sense that there would be a handful of blogs to discuss their renovation.

(Although in the same vein it would probably make sense that there are blogs to discuss renovating condos, and I haven’t come across those.)

That’s my house on the left, captured in December 2024.

I’m glad each one of these is pretty well-organized because it takes a lot of time to peruse a project-oriented blog for specific information if you haven’t read it from the beginning.

Here are the blogs

Most recently updated is listed first.

Two Flat: Remade
This is the story of a deconversion (to a single detached house) but the renovation process is pretty much the same as restoring two units; gas service remains in the house. By Matt and Sarah, who bought the house circa 2011 and are still renovating it (check out “The Plan” page to learn about their phasing).

Reshaping our Footprint (One Watt at a Time)
Follow our journey of a deep energy retrofit (or energy efficient rehab) on a 100+ year old masonry two flat in Chicago. The goal is to turn the building into a zero-energy home with a sustainable and resource-efficient landscape. Most posts are by Marcus de la Fleur.

Yellow Brick Home
Kim and Scott bought the dilapidated two-flat in 2019 and completed the renovation in 2021 or 2022. Each unit and the outside are detailed in three groups of articles. Yellow Brick Home is the most design-forward of the blogs.

Little Chicago Two Flat
Corey and Emily bought their two-flat in 2021 and did a DIY renovation over the next eight months.

Chicago Two-Flat
Jocelyn and Steve started this blog in 2005! The most posts are in 2005 and 2006 so use the blog archive menu on the right side to go back to that time. Perhaps start by reading this post from March 2005 about removing the drop ceiling.

If you know of another blog about renovating a 2-to-4 flat in Chicago, leave a comment with the link!

Bonus links

Back To The Studs
This a video series by Brad and Sean who have been renovating a Brooklyn brownstone into three units since 2021. I’ve been watching their progress on TikTok, but given the “soft ban” it’s better to look at their YouTube page.

Home electrification case study in North Lawndale
“Through Elevate’s electrification program, contractors installed electric, energy efficient appliances at Ms. McGee’s house in Lawndale. The upgrades included an electric stove, washer and dryer, as well as a heat pump that powers a central heating and cooling system.”

Zoning assessment: Old Town Canvas

December 14, 2024 / / 0 Comments

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. ↩︎

Density bonuses in transit-served locations should be available by right

September 17, 2024 / / 0 Comments

Update October 23, 2024: I’m aware of one project that has been withdrawn in part due to complications complying with resident-requested changes that would have been lessened if the applicant did not have to also apply for a Type 1 zoning map amendment in order to take advantage of the Connected Communities ordinance’s density bonuses and the “ZBA bundling” streamlining that was adopted by City Council last fall. The applicant was requesting to rezone from the B2-3 to B3-3 (the new zoning district). If the new zoning district already existed and some of the changes I mention in the comment below were in place, then the applicant would have likely already applied for a permit.

This is the original version of a public comment I planned to give to the Chicago City Council zoning committee on Tuesday, September 17, 2024. Due to an overwhelming number of commenters the amount of time allotted to each speaker was reduced from three minutes to two minutes. I edited and cut the comment on the fly.

Video recording of my comment to zoning committee.

Hello, my name is Steven Vance, I’m a South Loop renter and a member of Urban Environmentalists Illinois.

The ordinances to proactively upzone Western Avenue from Howard Street to Addison Street will be voted on today in this committee. The ordinances will rezone nearly all of the 4.5 mile stretch to B3-3 zoning, allowing multifamily housing to be built as of right without further approvals from the local alderperson or this committee. I fully support this plan. 

However, there is a technical flaw in this plan that could hinder the initiative’s goal of adding more housing, both market rate and subsidized affordable. 

To take advantage of the Connected Communities bonuses that allow even more or larger homes to be built when a property is both in a B3-3 zoning district and a transit-served location, the property owner must still obtain a Type 1 zoning map amendment. To sail smoothly, such amendments need support from the local alderperson, most of whom require community meetings before deciding to offer such support. Thus, in some circumstances, the proactive upzoning may not have one of its intended effects of cutting the tape for building new housing. 

The greatest Connected Communities ordinance bonuses, that allow for the most additional housing and family-sized homes, only kick in when 100% of the proposal’s ARO requirement is built on-site. I’m concerned that that requirement combined with the need to get a Type 1 zoning map amendment might limit the number of additional homes added as a result of the upzonings. A solution would be to amend the Connected Communities ordinance to allow the bonuses to be granted by right as long as the other, existing standards about on-site ARO units are met. 

I would like City Council members to implement more proactive upzoning initiatives across Chicago, including on arterials like Western Avenue, Milwaukee Avenue, and Broadway, as well as on less busy streets like 35th Street in McKinley Park and designated Pedestrian Streets. Yet to fully and cost-effectively realize the benefits of housing abundance from this policy lever, further tweaks are needed so housing providers can get to construction sooner. 

The proactive upzoning of Western Avenue, as well as Milwaukee Avenue, reflects real leadership on the part of the alderpersons. It will result in more and better housing for Chicagoans, more affordable units for residents who need them most, and more tax revenue for the city. I’m hopeful that with some tweaks to the density bonuses outlined here, we can establish a model for a more affordable, welcoming and prosperous city. 

A new multi-family apartment building under construction on Western Avenue.

Additional reading

Comment to Chicago zoning committee about the insufficient number of Zoning Board of Appeals members

June 25, 2024 / / 0 Comments

Update: On July 19, 2024, Ald. Knudsen (43rd) introduced an ordinance that does what I suggested an ordinance could do. It’s very short: 7 new words and 1 changed word. Read the ordinance, O2024-0010982.

June 25, 2024

Hello members of the Chicago city council committee on zoning, landmarks, and building standards. My name is Steven Vance. I am a resident of the city of Chicago and an urban planner. I have spoken to this committee multiple times this year about matters that affect how much housing gets approved to be built in the city. 

I reiterate my comment from your April 8, 2024, meeting that the committee should amend the zoning ordinance to ensure that the Zoning Board of Appeals can function when there are not enough board members. Nearly three months later the ZBA is still incomplete. The City’s Municipal Code requires that the ZBA has five members and two alternates. Alternates fill in for members when they are unable to attend meetings, due to illness or personal matters. 

Screen grab showing a thumbnail of me speaking to committee.

In February, the ZBA was short two members which may have led to the failure to approve a proposed shelter in Uptown, as proposals require three affirmative votes and the proposal received two affirmative votes. The ZBA having incomplete membership puts the timely approval of applications for special use and variations at risk. This shortfall materially jeopardizes new development, especially matters involving new housing.

Since April, Mayor Johnson appointed two members, but only one, Adrian Soto, has been confirmed. 

The ZBA’s current state of four members is bound to affect more projects. I mentioned in April that at least two more shelter housing applications, which have support from the Chicago Department of Housing, are intending to be heard this year at ZBA but those projects have yet to come before ZBA. 

The proponents of those shelters could be feeling forced to wait until the ZBA has a full membership or else suffer the same fate as the shelter that failed at ZBA in February. This could push back construction and operations of the shelters, and further exacerbate the housing shortage and homelessness crisis in Chicago.

The Mayor and City Council should immediately take any reasonable steps within its authority to address housing and homelessness in the City, including:

  • First, prioritizing a fifth member.
  • Second, making pragmatic amendments to the code to allow alternates to sit in when there are fewer than five regular appointed ZBA members. The current code allows alternates to sit in only for regular members who are missing that day, and
  • Third, the committee should advance the Cut The Tape initiative which recommends revising zoning code requirements that “require all shelters and transitional housing developments to seek approval from ZBA, regardless of building size, form, or underlying zoning designation” – closer to an “as of right” situation that applies to most kinds of housing. 

 I speak for many when I urge this committee to legalize housing and adopt changes to effect such a strategy.