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29 July 2025

Chicago Streamlines Development Incentives For Transit-Oriented Developments

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On July 16, 2025, the Chicago City Council adopted O2025-0015577, amending the Chicago Zoning Ordinance to simplify the approval process for development bonuses in Transit-Served Locations (TSLs).
United States Illinois Real Estate and Construction

On July 16, 2025, the Chicago City Council adopted O2025-0015577, amending the Chicago Zoning Ordinance to simplify the approval process for development bonuses in Transit-Served Locations (TSLs).

The Zoning Ordinance provides parking reductions, floor area bonuses, height increases, and density bonuses for developments within:

  • 2,640 feet of a CTA or Metra rail station, or
  • 1,320 feet of certain CTA bus corridors.

Multifamily developments in B-3 and C-3 zoning districts that qualify as TSLs are eligible for a range of zoning incentives based on the amount of required affordable housing provided on site. Previously, these bonuses required City Council approval of a Type 1 zoning map amendment or a Planned Development, even if the property was already zoned within a B-3 or C-3 zoning district.

The new amendment removes the rezoning requirement for developments in B-3 and C-3 districts that are subject to the city's Affordable Requirements Ordinance (ARO), allowing eligible projects to access TSL bonuses by right. This change is particularly applicable to sites that have been proactively upzoned to a Dash 3 zoning classification as part of a broader city planning process, such as along the Western Avenue corridor. The change is expected to streamline the approval process and reduce entitlement risk for qualifying multifamily developments near transit.

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