Chicago could add 8,000 granny flats by following Los Angeles’ lead

Legalizing additional dwelling units citywide would bring more housing choices, lower costs and help Chicagoans stay in the neighborhoods they love.

If the Chicago City Council follows Los Angeles’ lead in reducing restrictions on additional dwelling units this month, the city could create 8,000 new homes for families through affordable basement apartments, backyard cottages and coach houses.

Los Angeles, which has a similar number of single-family neighborhoods as Chicago, fully legalized the units in 2016. Since then, about 5% of single-family homes there have gotten a permit for one – adding about 27,000 new residences in total.

Based on Chicago’s 327,070 single family homes, that could mean nearly 8,000 new housing units in the city by 2030.

An ordinance to legalize the units citywide advanced out of the Chicago Zoning Committee earlier this year. It would have replaced a limited pilot program with a simpler, citywide standard.

The measure included compromises requested by some aldermen, such as limiting permits to one per block per year and keeping owner-occupancy requirements in place. But in July, the full City Council delayed the vote. It is expected to return to the full City Council for a vote Sept. 25.

Chicago leaders originally heralded the pilot program as a win for expanding the city’s housing supply with more flexible living options. But nearly five years later, less than 300 permits have been issued, largely because of the extensive restrictions Chicago imposes.

The 2020 pilot program limited additional dwelling unit development to just five areas of the city and subjected them to onerous rules about where and how they could be built, including owner-occupancy mandates, permit caps and harsher restrictions on low-income areas of the city. It made unit development follow the same long, expensive permitting process that also hampers larger projects.

In 2016, California expanded the ability for people to build the units, getting rid of many local restrictions. The state streamlined permitting, eliminated local barriers such as owner-occupancy rules and adopted clear statewide standards. Since then, cities such as Los Angeles have experienced a boom in this type of housing without drastically impacting the character of lower-density neighborhoods.

Los Angeles is a great point of comparison for Chicago. Both cities developed with a large number of single-family homes, high populations and residents in both areas face challenges finding available and affordable housing.

Additional dwelling units are an ideal solution for cities such as Los Angeles and Chicago with many single-family homes. They allow homeowners to convert unused spaces such as garages or basements into housing for an aging parent, an adult child or a tenant. These structures fit within the existing fabric of neighborhoods. They are also popular: 71% of Chicagoans support allowing the units.

It’s time to unlock this simple, effective solution. Use our “take action” tool to let your alderman know they should vote “yes” to legalize additional dwelling units across Chicago.