Turning your basement into a legal 3 unit?

[Soniel Estime]

I just closed on a duplex with a 203k loan in the Chicago land area. I am in the rehab process now. My plan was to live in 1 unit and rent the other. My architect informed me that my building seems to have the proper qualifications to have the basement converted into 3rd unit. Correct ceiling height, enough exists and enough space with zoning. Now I am considering converting the basement. Only problem is I was informed it could take up to a year and cost 5k just to file, and that wouldn’t even guarantee that its approved. I have 2 plans live in top unit (3bed 1 bath) rent bottom unit as a 4 bed 2 bath to section 8. Or rent top unit to section 8, rent bottom unit as a 2 bed 1 bath, and live in illegal basement that will be a 2 bed 1 bath until I can get it approved as a 3rd unit.

Questions:

1. What are the risk I run living in the illegal unit?

2. Will living in the basement effect my buildings section 8 eligibility?

3. How long and how much does it cost to change a basement into a legal unit with the city of Chicago?

4. How often does the city come to inspect?

How do I start the processor having the basement converted?