Chicago City Wire

Chicago's policies on additional dwelling units, often called granny flats, are reportedly hindering the city's ability to increase affordable housing. According to LyLena Estabine, a policy researcher for the Illinois Policy Institute, "Chicago’s ability to add more affordable housing units is being suppressed by policies that make them difficult to add." She criticized the language and rules of Chicago's pilot program for these units, stating it leaves those in greatest need at a disadvantage and exacerbates disparity within the city.

Constructing an additional dwelling unit in Chicago costs about $150,000, making it a cheaper alternative compared to buying a single-family house priced around $300,000. Despite this cost-effectiveness, Ordinance SO2024 – 0008918, which aims to expand development opportunities across Chicago, remains stalled in a City Council committee.

A recent research report proposed 12 reforms intended to broaden Chicago's housing policy. Key recommendations include removing permitting caps that restrict developments in the West, South, and Southwest areas while no such caps exist for the North and Northwest regions. The report also suggests eliminating vacancy requirements that disproportionately affect areas with high numbers of vacant lots.

Another suggestion involves reducing bureaucratic hurdles like permit wait times and fees which increase construction costs. Currently, builders face a minimum permit fee of $302 and could incur up to $16,000 in additional fees.

Estabine argues for reforms such as eliminating owner-occupancy requirements and increasing the number of allowed units per lot. She emphasized that instead of focusing on rent-control measures or marked-affordable units, "Mayor Brandon Johnson and the City Council should focus on ordinances that expand the additional dwelling unit pilot program citywide and treat all areas equally."

More information about Chicago’s additional dwelling units can be found at illin.is/ChicagoADU.