Issue Overview
In the fall of 2023, Chicago Alderman Anthony Napolitano (41st Ward) introduced legislation that would require owners of vacant commercial storefronts to register with the Chicago Department of Buildings (DOB). The intent of the commercial storefront registration was to establish communication between owners of vacant commercial storefronts and the city and reduce long-term vacancies in neighborhoods.
Legislative Outlook
Similar to existing registration requirements for vacant buildings, owners of commercial storefronts that are vacant will have to register with the Department of Buildings if the property is NOT listed for sale, lease, or has an active permit.
- If a property is considered ‘vacant’ under the new definition, the registration fee is $100 every six months.
- Owners of the property are required to remove any business signage that no longer applies to the property.
- The interior of the building must be free of all garbage/rubbish.
- Security of the building must include limiting entry by unauthorized persons. For longer vacancies, burglar alarm systems may be required.
- A sign identifying the owner or the authorized agent responsible for the property must be visible from the public way.
- General liability insurance coverage must not be less than $1 million per occurrence.
- Registration obligation begins 395 days after a commercial store front becomes vacant or 30 days after a change of ownership occurs.
- Presumption of vacancy can be triggered under the following circumstances: (1) a commercial storefront has not been properly secured or is not maintained (2) snow, and ice have not been removed, or (3) a request to the Assessor’s Office for a vacancy reduction has occurred.
- If a property is registered under these requirements, and there is a situation with unauthorized use (such as squatting), the city can intervene more quickly than the County Sheriff.
REALTOR® Stance
While it is an owner’s right to hold a property vacant for as long as they choose, a vast majority of Chicago City Council members believed that intentionally holding property vacant has a negative impact on neighborhood safety and vitality. This forced the industry to the negotiating table. Thanks to both substantive feedback from members and a successful delay of the vote to continue negotiations, REALTORS® made significant changes to the original proposal, which allows for ‘business as usual’ in the commercial market. This led REALTORS® to be ‘neutral’ at the time of passage.
Additional Resources
Issue Update
Updated 7/23/24
The ordinance was voted into law on June 12 and is effective as of July 27, 2024.