Chicago Expands Legalization of Coach Houses Amid Housing Shortage
Chicago has enacted an ordinance expanding the legalization of accessory dwelling units (ADUs), such as coach houses, to address the city's housing shortage. The ordinance significantly increases the number of parcels eligible for ADUs, allowing them in multi-unit and some commercial areas, as well as in 34 wards for single-family expansions. However, the ordinance includes stipulations that require some units to be designated as affordable housing, limiting rent to below market rates and restricting tenant income to 60% of the area median. These units must remain affordable for 30 years, and cannot be listed on short-term rental platforms like Airbnb.