Today’s Headlines for Friday, March 10

  • Moreno, Maldonado Propose New Fees for Demolition, Deconversion Along The 606 (Tribune)
  • Sun-Times: CTA’s New VP of Legislative Affairs Was Recently Sanctioned by Ethics Board
  • 1 Dead, 2 Injured in Lake Shore Drive Rollover Crash (Tribune)
  • Fleet of 50 Cycles Purchased for Glenview Bike Education Classes (CBS)
  • 180 Rental Units, 84 Parking Spots Planned Near Chicago Brown Line Stop (Curbed)
  • Weber Spur Would Be a Key Link in a Continuous Chicago River Trail (Active Trans)
  • Are Drivers Allowed to Pull Into a Bike Lane While Parallel Parking? (The Chainlink)
  • A Doughnut Shop Is Opening Inside the Brown Line’s Wellington Stop (DNA)

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  • ohsweetnothing

    Re 606: Depending on what the demolition fee is, wouldn’t that just pave the way for developers to just make more expensive single family homes to pass the cost along? Same for deconversion fees.

    I am completely in favor of some regulatory framework for deconversions though. If you have to jump through hoops to build higher/denser, you should also have to jump through hoops to gut housing stock.

    Oh and why just around the 606?? At least for deconversions, it would be a sound policy citywide!

  • ohsweetnothing

    Ugh, I gotta remind myself once a year: Don’t read the Tribune comment sections.

  • Concobhar Mac Conmara

    What is the tax rate of a SFH vs a two or three flat?

  • rohmen

    Pretty sure a SFH and a multi-unit building are taxed at the same rate as long as the multi-unit building is under 7 units. It then breaks down to the assessed value.

    In the past, it was likely safe to assume a 3 unit would have a higher assessed value (and that might still be true from the cook county assessor office’s perspective), but the deconverted 3 flats turned into SFH, and SFH being built following tear downs, now often have a higher fair market value given how popular SFH are in Logan Square right now. That’s why you’re seeing so many deconversions in the first place.

  • Concobhar Mac Conmara

    So SFH would pay more in this scenario?

  • Carter O’Brien

    I think you need to break out these factors as they apply to new construction with vintage housing stock, though. People looking for new construction (or gut rehab equivalents) are more likely to want a SFH, but there is still plenty of demand for two flats not in dilapidated shape.

    Several two flats hit the market on my block this year and were under contract within a week, they will continue to be a way younger couples get a foot in the door of housing ownership and can build equity and make improvements to the property over time.

  • rohmen

    Very likely, yes.

  • rohmen

    Sure, there is demand for 2-flats (I was being a bit hyperbolic), but the demand for SFH is so high that people can still snap 2 flats up and make money converting them. And I think that’s likely going to become even more common, not less, as those areas continue to gentrify.

  • Concobhar Mac Conmara

    And one more question -thanks for all your help so far!- What about larger buildings? Above 7 units or something?

  • Carter O’Brien

    Your scenario certainly explains why we are seeing so many tear downs and deconversions, but I think it’s a problem to project a low demand for two flats on to that dynamic. As it is not that people don’t want them, it’s that the traditional live-in landlord market can’t compete with the quick profit flipper one. The City needs to get on the stick here, as it is completely illogical to be fueling this TOD housing boom in a handful of areas while simultaneously sinking the City’s population with these higher end SFH properties. The Lincoln Park population trajectory is absolutely not a sustainable model for the rest of the City.

  • Carter O’Brien

    Depends on the actual amount of square footage – these new buildings tend to be built as close to lot line to lot line as the developers can get away with.

  • planetshwoop

    Ideally you would do more than just block deconversions. You would also make it easier to build density. So if someone wants to deconvert (and pay for it), you can also make it possible/cheaper to build density in other areas: less parking for condo buildings near transit, deconvert houses to multi-story condos, etc.