As part of the Mayor's Cut the Tape initiative announced in April of 2024, various strategic revisions to the City of Chicago's Zoning Ordinance ("CZO") have been implemented in hopes of streamlining City approvals and encouraging development. As part of this initiative, last week City Council approved a new revision related to Transit Oriented Developments relaxing the criteria previously required for two distinct benefits conferred on Transit Served Locations ("TSL") as they are defined in the CZO. Ordinance SO2025-0015577 (the "Ordinance") was co-sponsored by Alders Daniel LaSpata, Andre Vasquez and Bennett Lawson.
The implementation of the Ordinance, together with several recently approved and proposed proactive upzoning efforts introduced by various aldermen is intended to spur residential and mixed-use development close to public transportation in the City's neighborhoods. More precisely, its intent is to encourage the development of affordable housing units within those developments, since, as it is for any property granted an entitlement by the City, residential projects with ten or more new or substantially rehabilitated1 dwelling units in these recently upzoned areas [KM1] will be subject to the City's Affordable Requirements Ordinance ("ARO").
Expansion of "As-of-Right" Parking Reductions
The newly approved Ordinance expands "as-of-right" parking reductions by permitting projects in any district, except Downtown zoning districts, which are within ½ a mile of a CTA train station or within ¼ mile of an eligible CTA Bus line corridor to eliminate parking altogether, without requiring any approvals. Before this, any reduction beyond 50% of otherwise required parking was only permitted with the approval of an Administrative Adjustment. This is still the case for TSL projects in Downtown districts and for projects that are TSLs only by virtue of their location within ½ mile of a Metra station.
Furthermore parking reductions for Residential or "R"-zoned property were only previously available in higher density R districts (RM 5 and above). This ordinance revision marks the first time TSL parking reductions are available in RT-4 or lower density R districts.
The exclusion of Downtown properties from this expanded "as-of-right" parking reduction preserves the opportunity for Downtown Aldermen and, likely also neighborhood and community groups, to weigh in on relatively larger parking reductions for properties in the Downtown areas. Downtown zoning generally permits higher density development and may pose a greater impact on the community if parking could be eliminated altogether, as parking requirements in higher density Downtown districts can be less onerous than those in the neighborhoods.
As mentioned above, properties subject to recent proactive aldermanic upzonings, like those proposed by the Broadway Land Use Planning Project in the 46th, 47th and 48th wards stand to benefit from the implementation of the Ordinance. If executed as planned, much of the property along Broadway referenced in the Broadway Land Use Plan will re rezoned to Business ("B") or Commercial ("C") "dash 5" districts, all of which is within Transit Served Locations. These districts permit significant density and as a result of the Ordinance, developments there could proceed with no on-site parking, as of right.
Expansion of "TSL Bonuses"
The Ordinance also eliminates the requirement to rezone property previously rezoned to B or C "dash 3" ("-3") districts by an Aldermanic, other City initiated, or Type 2 rezonin2 simply to utilize Minimum Lot Area ("MLA") and Floor Area Ratio ("FAR") bonuses[KM2] [TB3] "3 ("ARO Density Bonuses"). Once these bonuses are properly taken, certain height bonuses are also available without further approvals4. The removal of this barrier was designed to encourage developers to build more affordable units in the neighborhoods.
To this end, several Aldermen have pursued upzoning of properties to the -3 district, since, even though an additional entitlement process would not be required to secure the ARO Density Bonuses, developers will have to provide some on-site affordable units in accordance with the ARO5.
For example, the Ordinance applies to the stretch of properties rezoned as a result of the Western Avenue Corridor Study, in which affordability is identified as a key goal. The study prompted the rezoning of large portions of a five-mile stretch along Western Avenue to -3 districts from Berwyn to Leland in the 40th Ward by Alderman Andre Vasquez in September of 2024 and from Leland to Addison in the 47th Ward by Alderman Matt Martin in October of 2024. While less comprehensive, there have been many other examples of aldermanic proactive upzonings to the -3 district throughout the City in recent months6, and the passage of this Ordinance is likely to inspire more.
For properties such as these, a developer could directly submit plans for building permit that apply the ARO Density Bonuses to their development and that include no automobile parking spaces, so long as they provide the requisite number of on-site ARO units for achieving the additional density sought. Projects would still have to provide 1:1 bicycle parking in conformance with the provisions of the City's rules for TSL developments as well as any other requirements for new construction of TSL projects. Any necessary variances would have to be sought separately through approvals from the Zoning Board of Appeals.
Projects rezoned to the B-3 or C-3 districts by the developer, which seek ARO Density Bonuses will continue to be subject to Type 1 zoning map amendment or PD approval requirements, as will revisions to existing Type-1 rezoning amendments that seek to apply ARO Density Bonuses if they differ from what was initially approved.
Footnotes
1. As defined in Section 2-44-085 of the Municipal Code of Chicago.
2. Property that has been rezoned, but not associated with plans approved by City Council in its approval ordinance.
3. Section 17-3-0402-B of the CZO permits graduated reductions in the applicable MLA with the provision of 50, 75 or 100% or required affordable housing on site; and Section 17-3-0403-B of the CZO permits graduated increases in FAR with the provision of 50, 75 or 100% or required affordable housing on site
4. Section 17-3-0408-B of the CZO permits graduated height increases for projects in B-3 or C-3 districts with the provision of 50, 75 or 100% or required affordable housing on site.
5. See footnotes 3 and 4.
6. Among others, Alderman Carlos Ramirez Rosa rezoned 2847-2861 N. Milwaukee Avenue, 2814 N. Milwaukee Avenue and 2816 N. Milwaukee Avenue from B3-1 to B3-3 in December ot 2024; Alder Maria Hadden rezoned several properties in the 49th ward to B2-3 districts in April of 2025.
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