Can someone guide me how to obtain license to convert basement into apartment?

Question

Hello,

I have a basement that is 1700 sqftin a multi unit building . Basement unit fits 3 bed 2 baths. Building sits on a corner and all basement windows are above ground. It is a beautiful place I bought a few years ago and want to invest in the basement to then flip the building. Can someone guide me where to apply and obtain a license to build this basement unit to an official unit with its address, electric, and other amenities?

Thanks

Jonathan Klemm · Answer

Hey @Ali Farhat - I think your first step is to see how many units the building is zoned for to see if "BY RIGHT" you can add a unit in the basement without the need to go through the ADU program.

You can submit a zoning certificate to the city of Chicago to understand the current situation.  Here is a link to the document:  https://www.chicago.gov/content/dam/city/depts/zlup/general/...

If I were you, I would also reach out to a Chicago architect like @Samuel Pavlovcik or @Prashanth Mahakali.  Both of them can help guide you through the process because either way you will likely need to prepare architectural plans to get submitted to the city.

When you are ready for the renovation, let us know and we can surely be a resource for you in that department.

John Warren · Answer

@Ali Farhat adding a basement unit starts with a great architect and a great GC. It is an expensive project, and probably only pencils if you have a 6 figure budget... this isn't what most investors want to hear though. You will quickly learn about footings, water service replacement, electrical load calculations, and a bunch of things you don't know about.

This topic comes up a decent amount here in Chicago because of the amount of grandfathered in "non-conforming" units. The amount it costs to "do it right" normally makes new garden units cost prohibitive.

Samuel Pavlovcik · Answer

@Jonathan Klemm thanks for the mention

@Ali Farhat Jonathan is correct that you may still have some opportunity depending on the Zoning designation for the lot, and how many existing units are Legally Recognized by the City.You can Check the Zoning Designation here on the Chicago Zoning MapFrom there, you need to check the requirements for your lot based on the Chicago Zoning Ordinance (Note: RS-3 does not mean 3 Units. You need to check the Zoning Ordinance for more info).

Feel free to reach out to me directly with the property address if you would like some more assistance in determining how many units you can have "By Right" on the lot which is a calculation based on Total Lot Area dependent on the zoning designation. If you can't add any more units "By Right" and you are Not within any of the ADU Pilot areas, then the only current option would be to hire a Zoning Attorney and try to obtain a "Zoning Map Amendment" where you would legally change the zoning designation for your specific lot in order to permit you to add another unit.

Jared W Smith · Answer

This is the same advice I give, almost exactly, for people looking to do this type of renovation in the Tri-State area (NY, NJ & CT). It's a tall order to do it correctly and on record.

Henry Lazerow · Answer

Making the basement a legal unit is costly but can be done as an ADU depending on your exact location (ADU zone maps are on City of Chicago site). Expect to spend a minimum of $100k+. If you are on the northside by making it an illegal basement you will increase the value of building and I have never seen any clients have issues. You can do it without permits for less then 1/3 the cost and buyers will still pay a significant premium for a building with an illegal basement. I have even seen twice city inspectors walk buildings for other issues that have illegal basement units and as long as unit looks like a legal unit (normal ceiling height and two egresses) they didn't even say anything.

Ali Farhat · Answer

Thanks for the reply. I sent you a DM to help me check if it is allowed "By Right" and how to proceed with new independent gas and electric lines.

Ali Farhat · Answer

Thanks. Yes I am in the Northside and unfortunately don't reside in a ADU zoning area. I don't feel comfortable building it illegally. Do I have to call a lawyer and get forms to make it legal?

Can someone guide me how to obtain license to convert basement into apartment?

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