Purchasing properties with "illegal" units

[Jonathan Satizabal]

Would you purchase a property in Chicago with a non-conforming or illegal unit? What are your exit strategies if an issue comes up? What are the insurance or legal risks? Would you purchase the property valuing it with the additional income or value it by its legal status? Let's assume that the ADU ordinance will not apply to you.

[Brie Schmidt]

@Jonathan Satizabal - this is why there are so many of them, they are grandfathered in

13-196-740 One additional dwelling unit over original allowed – Conditions. A pre-ordinance (built before July 8, 1957) residential building or building of mixed residential occupancy, not complying with the requirements in force and applicable to the building at the time of its conversion, may be altered so as to legalize one dwelling unit, in addition to the number of dwelling units originally authorized, providing that said unit was determined by the office of the zoning administrator or the zoning board of appeals to have existed prior to July 8, 1957, and provided such building complies with the other provisions of this chapter. Such conversion need not comply with the requirements of the following specific provisions of this chapter: 

(a) Section 13-196-660 (height limits); however, in frame buildings, four or more levels of living space shall be prohibited and in buildings of ordinary construction, with or without attic living space, five or more levels shall be prohibited; 

(b) Section 13-196-050; however, all dwelling units must comply with the exit provisions of Chapter 13-160 except basement dwelling units may have a second exit through a room containing a heating plant; 

(c) Section 13-196-670 (stairwell enclosures); 

(d) Section 13-196-680 (corridor enclosures); 

(e) Section 13-196-690 (dwelling separations); 

(f) Section 13-196-710 (basement ceiling construction); however, if the basement contains a dwelling unit the entire basement ceiling construction is to be wood lath and plaster of half hour construction; 

(h) Section 13-196-720 (heating plants); however, basement apartments are to be separated from heating plants with partitions of one hour construction.

(Prior code § 78-72; Amend Coun. J. 6-14-95, p. 2841)