The chapter of the manual “Navigation Permits” describes the specific documents and procedure for requesting coordination of inspections with the Department of Buildings. The list of inspections required gives an idea of the sequence of construction for the basement conversion. “Mitigation issues” should help you discuss design changes based on information that occurs during the construction process. Properly adding foundation drains and waterproofing walls is not cost-effective ($6,000 to $13,000) with limited work on the panels. But a “cheap” solution creates additional problems and concentrates moisture in your structure: To solve this problem, you`ll need to re-evaluate interior walls ($3,000 to $4,000), structural rot ($300 to $700), and add the required drainage before carefully replacing half of your basement walls ($15,000 to $30,000). Even without rewiring, tool correction or repair approval, the “cheap” route doubles or triples your costs. And you are facing serious health and structural problems. Consider this fire risk scenario: your basement is already wired with lights from the 1970s. They select smaller devices and ask tenants to use power strips. By leaving the circuits as they are, you get the current plaster ceiling intact. When deciding on a project, you need to clarify the financial feasibility and legal risks with a) an accountant and b) a lawyer.
If you decide on a basement project, you should hire an architect to lead the design process. While not necessary for a reversion or a very small renovation, hiring a licensed architect can make the renovation process much smoother. In Chicago, you will need an architect who will be subject to the standard plan review for most building permits. An architect will also provide a network of expertise, including trusted consulting engineers, contractors and trade specialists. Your decision to renovate a basement unit should be made based on your situation and your desire to create a living space. Currently, Chicago lacks at least 120,000 affordable rental units, with a significant need for accessible housing for elderly and disabled tenants. DePaul`s Housing Institute estimates that Chicago`s existing housing stock could easily add 175,000 affordable basement units. DePaul estimates that more than 77,000 basements could be converted into two to four apartments to distribute more affordable housing and increased density throughout the city. As it seems. Chicago is waiting for the new regulations. A landlord must always request a zoning change to create a basement apartment. Fortunately, changes to Chicago`s building codes have “reduced” some requirements for a legal basement unit.
Primarily, the ceiling height for living quarters was lowered by six inches, from 7`6″ to 7`. It`s useful now. The new regulation could be useful in the near future. In addition, there are a number of social benefits to creating smaller basement units that pay collective dividends to owners and tenants: But if you`re not willing to invest the time or money to convert your basement into a legal apartment, you`ll need to find another way to expand your real estate portfolio. It`s just not worth the risk to your tenants or your bottom line. “Homeowners looking to convert their basement into separate apartments should conduct a feasibility study with a licensed general contractor to see if the unit can easily meet the city`s requirements,” Hamidi says. The “Building Equity” chapter of the manual provides rough budgeting tools for housing management tasks and links to a number of resources for landlords. These units allow landlords to earn additional income from renters or make room for multigenerational families. For properties that plan to build two or more additional residential units, one in two units must be affordable housing. Owners with units already built can obtain the necessary permits and zoning permits to make these units legal. Especially in large cities where there is a lack of affordable housing, basement apartments are seen as a way to alleviate the housing shortage – but only if they are safe for tenants. Once construction is complete, you must pay all outstanding bills, complete the required “occupancy permits” and ensure that your unit`s management plans are in order.
This means refining rent estimates, photographing the unit for marketing purposes (and at the architect`s request), and establishing back-end bank accounts for tenant deposits, rental income, and outgoing maintenance and administration costs. The withdrawal of building permits should trigger an assessment of the property, but this is a good time to review or apply for the applicable tax and utility exemptions. With existing accounts and hopefully a new set of trusted contacts in the construction industry, it makes sense to look into the long-term maintenance of your building. This includes securing contracts for annual preventive work (from trusted artisans), as well as obtaining estimates of existing facilities and systems that were not updated during reconstruction. You should also fine-tune your budget to save on reserves and rental income for building maintenance. Consider this moisture-based hazard scenario: instead of adding foundation drains and sealing your walls, which are mostly dry, simply decide to finish the interior with a mix of drywall and exposed brick. Let`s say that if you haven`t sealed the foundation walls, you probably haven`t looked for foaming joints under your basement and the upper wooden structure of the building. If you encounter code violations, you can also decide not to rebuild a unit. This would limit your losses to fines, demolition costs ($3,000 to $4,000) and, if the unit is legal, permits to convert the unit. Depending on your architect`s contract and scope for construction administration, they can coordinate site visits, monitoring, and confirmation of construction progress. If problems arise due to newly discovered conditions, you will contract with your architect (for an additional fee) to edit and modify the drawings, and obtain approval updates if necessary. During construction, you should contact your architect and general contractor to keep you informed of the overall progress of the work and ensure that all necessary inspections are carried out as scheduled.
If you have a larger building (5 apartments with the new unit), inspection plans must be coordinated with your contractor through temporary “Certificate of Occupancy” applications to the Ministry of Buildings. I think I can buy the building, rent it to the two guys in the basement for as long as they want to stay, and if/when they leave, check if they make the unit legal or stop renting it. But I fear that even that could put me in too much danger. On 16 December 2020, the Ordinance on Additional Housing was adopted by the City Council; The pilot zones will come into effect on May 1, 2021. The pilot areas allow for higher density per plot with the construction of one or more additional rental units in residential areas of two apartments and multi-family (RS-2+). In the official language of the Chicago ordinance, additional units are considered “coaching inn” (separate rear units) or “conversion units” (in basements or attics). For the purposes of this guide, “additional” or “converted” units all refer to a new rental unit built in your existing basement. As a homeowner, there are financial reasons to consider renovating a basement unit: a Chicago basement apartment can extend to any depth below grade, as long as the space is adequately protected from leakage. Floors and walls must be impervious to the ingress of water from surface and groundwater. Basement apartments must have a minimum ceiling height of 7 1/2 feet.
In addition to general renovation and basement experience, you can look for companies that have experience like: a) general contractor, b) design/build work, or c) self-certification to expedite approval, for integrated quality control of your project. Focus on what you want to achieve based on your goals and look for companies with that experience. An apartment basement that meets city permits and building standards can add value and housing to a Chicago property. Chicago`s building codes and zoning requirements prevent homeowners from illegally upgrading a structure and posing a risk to the safety of residents. Owners of illegal apartment basements risk quotes from the city. If a landlord does not meet the legal requirements for a basement apartment, a tenant can also terminate the lease. A Certificate of Zoning Compliance certifies the number of residential units for a property that are legal under the Chicago Zoning Bylaw. An illegal conversion is the addition of a separate residential unit above the number of residential units designated for that residential property in the Zoning Compliance Certificate. Illegal conversions can pose a serious threat to the safety of all occupants of the property. It is very likely that the illegal unit lacks ventilation, ceiling height and natural light, and does not have a sufficient exit in case of fire or other emergency. Most illegal conversions are basements or attics that have been converted into separate rental apartments, or an existing single-family unit divided into two housing units. Buildings with more than 4 residential units require private dumpsters and pickup.
Illegal conversions can cause the building to lose the city`s garbage collection. You may need a permit to renovate a basement or attic. If you know or suspect an illegal conversion in your neighbourhood, you can contact 311, which will direct your request to the appropriate municipal services for inspection and enforcement.