Moving in without a Certificate of Occupancy (CO) in Chicago?

Question

I was talking with an fellow Chicago based investor today and the topic came up about moving in without a CO. We were curious: Is there anyone who has (or has directly heard of) experience with this and is willing to share, whether good or bad? As an owner occupant, is this possible? As a landlord, is it possible to let tenants move in prior? What happens if the city inspector sees furniture and signs of living during a final inspection?

I've heard GC's say "it's Chicago, of course it's okay!" however others (myself and this other investor included) are not so confident. It was an interesting conversation but I am curious to hear what others with experience report.

Jeff B. · Answer

Occupancy w/o the Certificate means *IF* there's any accident or fire, your insurance will not cover the 'event' and you may have server liability.Not SMART!!

Jim Gramata · Answer

Agreed that in a multi unit the common areas must be habitable and in almost complete working order. It makes sense you'd not want a dangerous condition in the path from the entrance to the unit door.

Kenneth Garrett · Answer

Anytime. You are very welcome.

Eric La Pratt · Answer

@Kenneth Garrett I feel like I owe you lunch... Super insightful! Thank you!

Kenneth Garrett · Answer

When projects are involved in a multiple unit building it really depends on what you are doing. A new C.O. is not always required. Provided the common areas are free and clear and the life safety issues are compliant then approving individual units one at a time is perfectly acceptable. They may ask for individual permits for each unit to allow occupancy in each unit. Unfortunately this is very subjective. I have issued building permits for many multi-unit buildings and if the owner explains what the plan is upfront than I will try to work with them.

Eric La Pratt · Answer

Thanks @Jeff B. I appreciate that perspective.@Danny F. that is the code for Chicago Heights, not Chicago which are not one in the same.@Michael Rossier This is a small multi-family property. Not everything is always being done at the same time so one unit can be complete before another. Why would I wait until all of the units are complete to start leasing? So the contractor may be done with the work for one unit but the permit is for ALL of the units because it is A (as in a single) multi-family home. @Jim Gramata This is interesting. I am curious to know what @Kenneth Garrett (who has been SUPER HELPFUL!!!) has to say about that. Kenneth?

Jim Gramata · Answer

My understanding in Chicago is new construction absolutely requires an actual CO but rehabs are unofficially not required.

Michael Rossier · Answer

Why is unit not ready? Is it the contractor not complete with his work?

Danny F. · Answer

Oh, Btw, I am not a lawyer hence getting proper information in this matter is a small cost to saving your asset. aloha, Danny

Danny F. · Answer

Aloha,I believe if it must not have life safetly violations, if it is okay than a "temporary certificate of occupancy" can be requested but there are some stipulations.Here from Chicago codes of ordinance: Sec. 22-22. - Certificate of occupancy—Sale or conveyance of title.If the inspection reveals violations of the City Code, excluding "life-safety" violations, as determined in the sole discretion of the code enforcement department, the subject property may be issued a "temporary certificate of occupancy" to permit the property owner to remediate said violations while occupying the property. A "temporary occupancy certificate" shall be valid for a period not to exceed six (6) months, and a monetary "repair escrow" must be deposited with the city clerk prior to same being issued subject to the following conditions:emporary occupancy certificate repair escrows . To obtain a temporary occupancy certificate a property owner or his/her agent must first present to the director of the code enforcement department a written estimate of the cost of the repairs required by the code enforcement department's inspection report of the subject property. Said estimate must be prepared and signed by a contractor licensed by the City of Chicago Heights. The director of the code enforcement department shall have sole discretion in determining whether said estimate is an adequate reflection of the estimated cost of the required repairs. Escrows which do not exceed $500.00, may be modified or waived at the sole discretion of the director of the code enforcement department.Check out their site it may answer some of your questions.https://www.municode.com/library/IL/chicago_heights/codes/code_of_ordinances?nodeId=COOR_CH22HODABUSTEXSTCO_ARTIIEXSTCO_S22-22.1OCCEENPRBest of luck.much aloha, Danny