Tag: upzone

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Update October 23, 2024: I’m aware of one project that has been withdrawn in part due to complications complying with resident-requested changes that would have been lessened if the applicant did not have to also apply for a Type 1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

Alderperson Andre Vasquez explains the Western Avenue upzoning proposal at a meeting in June 2024.
Alderperson Andre Vasquez explains the Western Avenue upzoning proposal at a meeting in June 2024.

Comment to zoning committee about the proactive Western Ave upzoning

July 16, 2024 / / 0 Comments

July 16, 2024. The text here roughly matches what I said to the Chicago City Council’s committee on zoning, landmarks, and building standards.

My name is Steven Vance, and I’m a member of Urban Environmentalists Illinois, a membership-based advocacy group that supports more housing – especially affordable housing, housing near transit, and fossil fuel-free – to help deal with housing shortages and rising housing prices.

There are two ordinances for the zoning committee’s consideration today that are the start of a new wave of land use policy to increase development where it’s needed, along Western Avenue. After the completion of the Western Avenue Corridor Study two years ago, Alderpersons Hadden, Martin, and Vasquez are taking the necessary next step by codifying some of the study’s recommendations into zoning map updates. 

The study recommended that higher-density mixed-use developments be allowed and encouraged along Western Avenue, to fill in the many vacant properties and allow the corridor to develop from one primarily serving people using cars to one serving people who use all kinds of transportation modes. And in the future, to provide the density that is supportive and takes advantage of a bus rapid transit network. 

The zoning map changes mean that nearly all of Western Avenue from from Addison Street to Howard Street will have B3-3 zoning, allowing mixed use and residential buildings up to 4 and 5 stories tall, with 20-40 homes each, in a way that property owners and developers won’t need to get individual approval for each one. Developments still have to comply with the ARO. 

When all alders task themselves with approving each and every proposed development, new housing is often delayed, raising the cost of development and denying people access new affordable and accessible housing. And, as the U.S. Department of Housing and Urban Development found, segregation is perpetuated.

The proactive Western Ave upzoning is a form of housing abundance, however, since it can speed up development of new housing in neighborhoods where it’s most in demand and where there’s existing transit infrastructure and amenities. 

A secondary benefit of proactive upzoning is how it attracts new development in Chicago, because of the ease of development. New development is one of the city’s best strategies to deal with funding pensions, because new development means there are new and more taxpayers. New development eases property tax pressure on existing taxpayers. 

Please pass the two Western Ave upzoning ordinances today. I also look forward to seeing and supporting proactive upzoning ordinances, including two that have been proposed in the 35th Ward, at your next meeting. 

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

August 2, 2018 / / 0 Comments

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

December 8, 2017 / / 3 Comments

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.