South Hermosa Included in 606 Demolition Fee Ordinance
March 24th, 2021
by Lee Helmer
The Amendment to a Previous 606 Demolition Ordinance
Chicago City Council passed a demolition surcharge tax pilot program affecting south Hermosa, Pilsen, the southern strip of Logan Square and northern Humboldt Park communities on March 24th. The amendment covers residential properties (RS3 + RT3.1) and is intended to deter developers from tearing down existing buildings with multiple units and possibly replacing them with single family homes, which reduces overall housing availability. In the amendment, studies cited a significant decrease in the latinx population in those areas since the 2000s. Alderman Ramirez-Rosa (35th) introduced the amendment to City Council in January 2021, along with Alderman La Spata (1st) and Mayor Lightfoot herself.
17:74591 boundaries. The Ordinance of the Block (606) District consists of all parcels zoned RS3 and RT3.1 and within the area bounded by Amritage Avenue. Western Avenue. North Avenue. Kedzie Avenue. Hirsch Street and Kostner Avenue.
How is Hermosa Affected?
Hermosa historical residential development is generally divided by pre-World War I housing in the southern section (south of Fullerton), which is a mix of cottages, two flats and multi-unit buildings, plus the occasional farmhouse. Buildings are both frame and brick. While brick buildings can be targets for demolition, frame houses made of wood can deteriorate over time, making them vulnerable for demolition.
This is in contrast to the north end of Hermosa (north of Fullerton), being part of the Chicago bungalow belt, most built in the 1920’s, frame houses being the minority. Scattered amongst the two-three flats and bungalows are their brick counterparts; Cottages, Tudors, corner multi-unit apartments, an occasional Georgian and exterior blocks of raised ranches. More variation on architecture exists between Fullerton & Diversey, as north of Diversey to Belmont was a planned community of bungalows called “Belmont Terrace”.
Considering the older frame construction of the southern area of Hermosa, these aging wood residences are sometimes in need of structural repair, expenses that homeowners may not be able to afford. Turn of the 20th century homes can also sometimes be less desirable in modern real estate because of layout. Large living areas with small bedrooms were more common, whereas later architecture balanced the space to what is appealing in today’s market. This in turn can make these homes more likely to be bought by developers for their land value, and possibly more vulnerable for demolition.
What Does the Amendment Do to Help Latinx Communities?
The fees may deter small developers or individuals who do not wish to pay $15,000+ on top of their new construction costs, yet this may not deter larger developers who can easily add this line item to their business costs. If anything, it sends a message that removing affordable housing from the market is frowned upon and each permit will likely be earmarked for scrutiny by community organizations and anti-gentrification groups.
The money collected in these permit taxes will be funneled into the Affordable Housing Opportunity Fund which allocates monies to low income housing initiatives for the city such as grants for home buying.
What Does the Amendment Say?
This addition to the original ordinance states that anyone who wishes to demolish these residentially zoned buildings be subject to fees before a demolition permit will be issued:
“(1) $15,000 for the demolition of a detached house, townhouse, or two-flat;
(2) $5,000 per dwelling unit for the demolition of a multi-unit residential building”
Exemptions of fees can be bypassed if the new construction has low income units, or is a public safety risk:
(1) At least 50% of the dwelling units in any building replacing the building subject to subsection (c) will be restricted to households earning up to 60% of the Area Median Income, as evidenced by documentation required by the Department of Housing; or
(2) The demolition of the building is determined to be necessary to remedy conditions imminently dangerous to life, health or property, as evidenced by a written order issued by the Department of Buildings, Department of Public Health, Fire Department or a court of competent jurisdiction.
How Long Does this Amendment Last?
The demolition tax permit pilot starts on April 1st, 2021, expiring in one year.
In this amendment, the original 2020 ordinance of 606 demolition moratorium was also extended an additional few months and now expires the same date as the initiation of the 2021 permit tax.
Collectively, the 2020 ordinance and the 2021 amendment look like a daisy chain of 606 related restrictions, and the proposal of an extension or amendment in early 2022 would be a logical next step.
