Chicago's New ADU Oridnance: Does it change anything?

[Noah Lomax]

Hi Folks,

I'm new to Chicago from San Diego, and trying to quickly wrap my brain around the investment market here. I'm specifically looking at the new ADU ordinance that goes live in May, 2021 and whether that really unlocks potential or still leaves too many loopholes and headaches for this to be a viable option. With multi-families in high demand, I'm looking to purchase a SFR and either a) convert the basement to a garden unit or b) put an ADU on the lot. I am in the process of doing this to a property in California and the ROI is really solid.

I spoke with my partners existing realtor/best friend and he seemed to think the new ordinance doesn't bring any significant change to Chicago and I'm barking up the wrong tree. Digging in online hasn't yieled me a lot of information one way or another. 

What do you think? I'd be grateful for any input or expertise from the local BP community. 

[Crystal Smith]

Originally posted by @Noah Lomax:

@Crystal Smith thank you so much for your reply. I’ve read a number of your posts on other threads, and I’ve gleaned a lot already from your input.

In my searching online, Focus Development was one of the first companies that came up in regards to this topic. They had done a write up on the topic ( https://workwithfocus.com/news/the-viability-of-chicagos-proposed-adu-ordinance-and-improvement-through-public-private-partnership/) , but it was from a few months prior to the ordinance passing. Have you or anyone you know worked with architects in the area that specialize in this space?

We haven't worked with anyone that specializes in this space but Prashanth Mahakali has done work for us & some of our clients before. I mention him but he won't remember, but what was important to us was the business case analysis we had to complete to justify an expenditure.  He helped with that, which at the end of the day is what you'll have to do when you find the right lot.