Saturday

07-19-2025 Vol 2026

New Ordinance Aims to Boost Housing Development in Chicago while Reducing Parking Requirements Near Transit

In a significant step towards promoting sustainable transportation and increasing housing availability, Chicago’s City Council has approved key amendments to the Connected Communities Ordinance, originally passed in July 2022.

This updated ordinance, known as O2025-0015577 and sponsored by Ald. Daniel La Spata, aims to ease parking requirements for developers, particularly those building near public transportation.

Under the new legislation, developers will no longer need to obtain an ‘administrative adjustment’ to provide zero parking in transit-served locations within specific zoning districts. Previously, developers were permitted to apply for reductions in parking requirements when building within about a five-minute walk from high-frequency bus routes or a half-mile from CTA or Metra stations.

The amendments now include all ‘R’ (residential) zoning districts, broadening access to parking reductions. This change is expected to decrease the costs associated with housing construction near transit lines, ultimately increasing the number of available housing units.

With this ordinance, the potential for new housing development is substantial. Steven Vance, Streetsblog Chicago Cofounder and Advisor, noted that more than 314,000 existing detached houses and small to medium multi-family housing units could now be built with fewer parking spots or even none at all due to the ordinance.

Additionally, approximately 17,921 vacant lots capable of development are also now eligible for reduced parking requirements. This shift allows for greater flexibility in housing construction, especially in areas where adding parking would otherwise hinder development.

The ordinance came into effect after the City Council’s recent meeting, with full implementation expected following the approval of the journal of proceedings, likely scheduled for September 25, 2025.

Previously, developers seeking to utilize the density bonus for providing affordable housing in specific zoning districts needed to obtain a ‘Type 1’ zoning map amendment. This requirement often added to the costs and complexities of the development process.

However, the new amendments streamline this process by allowing density bonuses to be utilized as a by-right option in various zoning districts, eliminating the need for burdensome zoning map amendments.

As a result, developers can now focus on building affordable housing without incurring additional expenses or delays. This will likely lead to increased investments in low- and moderate-income housing across Chicago.

The benefits of this ordinance extend far beyond simply reducing parking requirements. By easing the path for developers to construct denser, more affordable housing near public transit, the ordinance promotes a significantly more equitable urban environment.

Many residents will now have improved access to schools, workplaces, healthcare, and entertainment options without relying on personal vehicles. This change not only encourages public transit usage but also aims to reduce traffic congestion and pollution in the city.

Moreover, easing the restrictions on parking also opens the door for innovative housing solutions, such as co-living spaces or compact developments that cater to a variety of income levels and family sizes.

This progressive ordinance signals Chicago’s commitment to creating a more sustainable and livable urban landscape, prioritizing public transportation and affordable housing.

As a result, this initiative is expected to play a crucial role in facilitating the construction of car-lite or car-free housing, appealing to a growing demographic that prioritizes reduced reliance on cars.

With this new legislation, Chicago is taking bold strides to ensure that its future development is aligned with the principles of equity, sustainability, and accessibility.

Backed by this comprehensive ordinance, the city is set to foster an inclusive environment where all residents can thrive, further enhancing the fabric of the community.

To summarize, the recently passed amendments to the Connected Communities Ordinance represent a significant achievement for Chicago’s housing landscape and reflect a broader movement toward sustainable urban planning.

By reducing the need for parking and simplifying the development process, this legislation is poised to pave the way for more responsible growth, ensuring that the benefits of a vibrant and diverse city are accessible to all.

image source from:chi

Charlotte Hayes