Leave a Message

Thank you for your message. I will be in touch with you shortly.

Red brick two-unit home with limestone bay windows, a raised oak entrance and autumn planting in a compact front garden.

What Chicago's ADU Rules Mean for a Lake View Two-Flat's Basement and Garage

On July 21, 2026, the City of Chicago issued a permit for 904 W. Barry Ave. It covers a three-story masonry building with three apartments, and the work description is direct: "legalization of the basement as an additional unit," taking the building "to a 4 dwelling units (per ADU ordinance)."

Since the permanent ordinance took effect, Lake View permits have described ADU work in basements, above garages and in new coach houses.

Where the extra units are being permitted

The citywide ordinance took effect on April 1, 2026. Since then, the City's building permit dataset shows ADU work at addresses across the Lake View community area, from Diversey Parkway north to the blocks near Irving Park Road.

Address Permit issued What the permit describes
3812 N. Hermitage Ave. April 16, 2026 New two-story coach house on a lot with an existing two-unit building
3000 N. Racine Ave. May 8, 2026 One new unit in the unfinished basement of a 19-unit, three-story building, bringing it to 20 units
831 W. Wolfram St. June 30, 2026 Basement renovation creating a conversion apartment in a six-flat
904 W. Barry Ave. July 21, 2026 Basement legalized as a fourth unit in a three-unit masonry building
1448 W. Diversey Pkwy. Sept. 21, 2026 New ADU built over an existing two-car frame garage behind a two-unit frame building

Every principal building on that list was already standing. These permits add units to two-flats, a six-flat and older walk-ups, either in space the owners already had, such as a basement or the area above a garage, or in a new coach house at the back of the lot. An issued permit means the work was approved. It does not mean the unit is built or occupied.

How fast owners are applying

Chicago ran a pilot program starting in 2021. It produced 418 permitted ADUs over roughly five years, mostly interior conversions, according to Chicago Cityscape's May 9, 2026 interview with 44th Ward Ald. Bennett Lawson. The same piece reported that 188 applications came in within the first two days of the permanent ordinance.

As of November 4, 2026, the City's ADU pre-certification dataset held 591 records. Of those, 590 were submitted between April 1 and November 4. The four wards that include Lake View also stretch into neighboring areas. Together they account for 83 pre-certifications: 37 in the 32nd Ward, 18 in the 44th, six in the 46th and 22 in the 47th.

That pace matters because inventory is tight. Illinois REALTORS reported that in September 2026, Chicago had 3,788 homes listed citywide, down 20.9% from a year earlier. Closed sales fell 7.2% to 1,681, and the median sale price rose 8.3% to $389,900. Those are citywide figures for single-family homes and condominiums combined, not Lake View figures. They still describe the conditions you'll be buying in. When fewer buildings come to market, two similar two-flats can differ in value because one has a legal path to a third unit and the other does not.

How RS areas were added

Single-family RS areas come from aldermanic opt-in. Block Club Chicago reported that the City Council passed the compromise ordinance unanimously on September 25, 2025, with opt-in as the condition for single-family districts outside the old pilot zones. A December 10, 2025 follow-up ordinance added RS areas. Lawson sponsored it, and Ald. Scott Waguespack of the 32nd, Ald. Angela Clay of the 46th and Ald. Matt Martin of the 47th co-sponsored it. Lawson also sponsored an amendment that passed on February 18, 2026. The City's pre-certification records include RS-zoned approvals in the 32nd, 44th and 47th wards.

Lawson told Cityscape about a chiropractor in his ward who has a practice on the first floor, an office on the second and apartments above, and who plans to convert the second-floor office to housing. The pilot did not allow that.

According to the City's ADU program page, a Department of Housing pre-certification is only the first step. Every project still needs permits from the Department of Buildings before construction can begin. Questions can go to [email protected].

This post is general information, not legal, tax or financial advice. Please confirm zoning, permitting and any rental plans for a specific property with an attorney, an architect or the City before relying on them.

If you're weighing a Lake View two-flat or small walk-up, Lisa Huber can go through your timing with you. Let's Connect.

Work With Lisa

A strategic, discreet, and highly personalized approach — because luxury real estate is defined by more than price alone.

Follow Me on Instagram