A new Chicago ordinance could make it more difficult for developers to push ahead with plans for condo-to-rental deconversion projects, according to reports. The City Council recently approved legislation that requires a larger percentage of condo owners to approve the sale of a condo building to developers.
Previously it took 75-percent of condo association members to approve selling every unit of a building in bulk. The new number stands at 85-percent of condo association members.
City leaders behind the new legislation say it gives homeowners who want to stay in their building more clout. They say past condo deconversion projects have led to the displacement of long-term condo owners who didn’t want to sell.
The new law comes as deconversion projects heat up in Chicago. Published reports suggest there were around 20 condo deconversion projects between 2016 and 2018. Some attribute this to a current hot rental market in Chicago paired with a more tepid home buying market.