All Forum Posts by: Brie Schmidt

 Because CAR started enforcing their copywrite on it

 Every year the city sets the interest rate that has to be included.  This year you also have to include a flooding disclosure

 It can not be shared as it is a copywritten document and owned by the Chicago Association of Realtors.  It can only be used by association members

The Northwest Side Preservation Ordinance, affecting certain Chicago neighborhoods, punishes owners of affordable housing, devalues their property, and makes it harder to invest in neighborhood housing. This is a problem for all of us and we need your help right now.

The Neighborhood Building Owners Alliance has put together a page with more detailed info and the ability to send an opposition email to all city council members ( nboachicago.com/nspo ) Please take a minute to share your disapproval even if you are not directly impacted by this ordinance. The NBOA will be aligning all the property owners to communicate updates to advocacy efforts with additional calls to action so please join their email list 

• Applies to SFH, condos, 2-4 units, mixed use and large apartment buildings.

• Allows tenants up to 9 months to purchase the building including 60 days’ notice before listing and up to 90 days after receiving an offer to decide to exercise their right of first refusal.

• Building owners have to turn over detailed information about their operations and finances, and even share their rent rolls, leases, and P&L statements with tenants and the DOH.

• Demolition fees of $60k and more wipes out decades of equity for distressed sellers.

• You can’t vacate units without just cause and you are required to keep tenants for 6 months after closing even if they are MTM or their lease expires, eliminating owner occupied buyers.

• Because of the long timeline, we can no longer execute 1031 exchanges.

• The tenants have the right to sell the contract to a third party for a profit.

This ordinance will drive out small, local owners, replacing them with cash-rich, out-of-town corporate owners. If this pilot program is deemed successful it can spread to the rest of Chicago or even Cook County and beyond. It will depress sales prices, even if there is a buyer willing to go through the hassle of dealing with this ordinance.

Get informed! Brie Schmidt Zdravkovic and Bob Floss have a video discussing the challenges and effects of this ordinance including how it has impacted the DC market since the 1980’s. Check out the video on YouTube @ChicagoBrie

Spread the word by sharing this on social media, with your friends and colleagues, and anyone you know who could be potentially impacted by this. We need to stop this now before it hurts us all.

 Where is it?  Our market has been weird the last two years but anything priced right will still go under contract over asking price the first weekend

 The intent behind this is to keep people in their homes and stop the progress of gentrification in these neighborhoods.

I agree that the deconversion of 2-4 units in Chicago is a huge problem. One thing I really like about this ordinance is every block will be limited to no more than 50% SFH. But this problem is city wide and is drastically reducing the housing stock in every neighborhood. That is the city's fault really as they are the ones who rezoned every side street to RS-3 and won't upzone existing 2-4 unit properties.

This was obviously written by people with no understanding of how real estate works.  You can't get rid of any tenants without just cause during the sale process and you have to keep tenants for 6 months after closing, even if their lease expires or is MTM.  So nobody can house hack unless the seller vacates a unit before listing - which does the exact opposite of what the ordinance is intended to do <face palm>

@Kevin Harner - The meeting you are referring to are for different matters.  In this case only the alderman would be able to approve a zoning change and they do not hold public meetings on the decision making process.  I can tell you from a previous experience with Gardiner he will not spot zone (meaning changing one lot) no matter what the circumstance.  I had a seller who bought a 2 flat with coach house in 2018 and was given a 3 unit zoning cert from the city at closing.  They went to sell it last year and the city said it is a 2 unit and nobody legally converted the coach house.  We had proof this was done back in the 1990's and Gardiner refused to even take a meeting to discuss spot zoning the lot.  I even had a buddy who knows him personally try to get us a call back and he refused.  So my guess is this lot has been vacant for 3 years because they are hitting road blocks trying to upzone it.  So they have two options, build a smaller house or wait till someone else gets elected and try again.  

 It passed in October!  They originally made it effective immediately and we got them to extend it till March 1.  I am going to reach out with some resources 

 Send me the address and I will pull comps.  I have been a landlord for 13+ years and never had a full month of vacancy unless I was doing a renovation, so something is off here

In this case it seems they are straight up clueless. Originally the tenants did not have to prove any financial capability before locking up the deal, so we fought it and got that changed. 25% of the housing stock is 2-4 unit properties and you can't vacate a tenant once you deliver the intent notice, even if their lease expires. You also can't vacate a tenant for 6 months after closing even if their lease expires - totally wiping out any househackers in this area of Chicago. They say lenders will still allow you to buy with an OO loan, which why obviously didn't talk to any lenders about it