Chicago Expands Eligibility For Ground Floor Commercial-to-Residential Conversions

In 2025, the Chicago City Council adopted SO2024-0008277, amending the Chicago Zoning Ordinance to streamline approvals for converting ground floor commercial space into residential dwelling units.

Under the new rules, property owners may now apply for an administrative adjustment to permit a conversion if the following criteria are met:

• The space has been in lawful existence for at least 20 years;
• More than 50% of the zoning lots on the same side of the block already contain buildings with residential use below the second floor; and
• The property is located in an "R" Residential District, a "B" Business District, a "C" Commercial District other than "C-3," or a "D" Downtown District other than "DS."

Historically, few commercial properties have qualified for ground floor residential use. Most residential conversions required a zoning change or special use approval. This change broadens eligibility and gives property owners a new option for reactivating long-vacant or underutilized commercial spaces.

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