Chicago City Wire

An ordinance proposed by Mayor Brandon Johnson to the City Council aims to introduce two new tools to facilitate redevelopment projects that are hindered by liens on vacant properties. This initiative seeks to address issues arising from outstanding debts that prevent investment in these areas.

Mayor Johnson explained, “Too often, vacant properties stand in the way of new investment due to outstanding debts that will likely never be repaid by the property owner. This ordinance would provide opportunities to eliminate or resolve the debt for projects with proven public benefits.”

The proposal focuses on two types of liens: demolition liens applied when a building is razed at the City's expense and debt liens related to unpaid City obligations such as water or sewer bills. It does not cover property tax debts, which remain under Cook County's jurisdiction.

DPD Commissioner Ciere Boatright highlighted the financial barriers posed by existing debts, stating, “A $10,000 lot may have $40,000 in City debt, which is a deal-breaker for most buyers. The lien assignment would eliminate a huge roadblock for otherwise viable redevelopment projects.”

Eligible properties would see their debt lien released upon project completion or receipt of a certificate of occupancy. For demolition liens, properties could be transferred to new owners at the cost equivalent to the City's lien.

According to estimates based on requests from aldermen and constituents, this ordinance could potentially advance five to ten stalled projects annually due to unpaid liens.