(a) Title. This section shall be known as the Demolition Permit Surcharge Ordinance. The surcharge imposed by this section shall be known as the Demolition Permit Surcharge and is imposed in addition to all other fees, surcharges and taxes imposed by the City of Chicago, the State of Illinois, or any other municipal corporation or political subdivision of the State of Illinois.
(b) Definitions. As used in this section:
"Area Median Income" has the meaning ascribed to that term in Section 2-44-080(B).
"Building" has the meaning ascribed to that term in Section 17-17-0223.
"CCLT" means the Chicago Community Land Trust, as defined in Section 2-44-080(B).
"Coach house" has the meaning ascribed to that term in Section 17-17-0234.6.
"Demolition" means any activity requiring a permit pursuant to Section 14A-4-407.
"Demolition Permit Surcharge" or "surcharge" means the Demolition Permit Surcharge established under subsection (c) of this section.
"Detached house" has the meaning ascribed to that term in Section 17-17-0246.
"Dwelling unit" has the meaning ascribed to that term in Section 17-17-0248.
"Multi-unit residential" has the meaning ascribed to that term in Section 17-17-0299.
"Permit" has the meaning ascribed to that term in Section 14A-2-202.
"Pilot area" means:
A. All parcels located in the boundaries identified in Section 17-7-0580; and
B. All parcels located in the boundaries identified in Section 17-7-0590.
"Townhouse" has the meaning ascribed to that term in Section 17-17-02179.
"Two-flat" has the meaning ascribed to that term in Section 17-17-02184.
(c) Demolition permit surcharge imposed. Pursuant to 65 ILCS 5/11-42-1, the following Demolition Permit Surcharge is hereby imposed on the issuance of any permit for demolition that includes one or more dwelling units located in either of the pilot areas, except as otherwise provided in subsection (e):
(1) $60,000 for the demolition of a detached house, townhouse, or two-flat; and
(2) $20,000 per dwelling unit for the demolition of a coach house or multi-unit residential building.
(d) Payment. Prior to the issuance of any permit for demolition of any building subject to the Demolition Permit Surcharge, the applicant, who shall be a demolition contractor, shall pay to the Department of Finance an amount equal to the surcharge required under subsection (c) of this section. No permit for demolition of any building subject to such surcharge shall be issued by the Department of Buildings until: (i) the applicant for such permit provides the Department of Housing with a copy of the receipt of payment issued by the Department of Finance showing that the surcharge has been paid; and (ii) the Department of Housing provides written notification of such fact to the Department of Buildings.
(e) Exemptions. The surcharge required under this section shall not apply if:
(1) At least 50 percent of the dwelling units in any building replacing the building subject to subsection (c) will be restricted to households earning up to 60 percent of the Area Median Income, as evidenced by documentation required by the Department of Housing; or
(2) The demolition of the building is determined to be necessary to remedy conditions imminently dangerous to life, health or property, as evidenced by a written order issued by the Department of Buildings, the Department of Public Health, the Fire Department or a court of competent jurisdiction.
(f) Deposit and use of revenue. The revenue generated by the surcharge shall be deposited in the Affordable Housing Opportunity Fund described in Section 2-44-085(I) unless such revenue is required to be deposited into another fund pursuant to federal or state law. Such revenue shall be reserved and utilized to pay the administrative costs and expenses of implementing this section and, after subtracting such costs and expenses, transferred to the Department of Housing and allocated to the CCLT. The CCLT shall apply such revenue toward the construction, rehabilitation, or preservation of affordable housing in direct proportion to the revenue collected in each pilot area.
(g) Duration. The surcharge required under this section shall be in effect through December 31, 2029. At least 150 days prior to such date, the Department of Housing shall submit to the City Council Committee on Housing and Real Estate a written report identifying the amount of revenue generated under this section; its observed effect on development activity in the applicable pilot area; and any other information that the Committee may require.
(h) Rules. The Commissioner is authorized to promulgate rules necessary or appropriate to implement this section.
(i) Application of uniform revenue procedures ordinance. Whenever not inconsistent with the provisions of this section or whenever this section is silent, the provisions of the Uniform Revenue Procedures Ordinance, Chapter 3-4 of this Code shall apply and supplement this section.
(Added Coun. J. 3-24-21, p. 28494, § 2; Amend Coun. J. 3-23-22, p. 45493, § 3; Amend Coun. J. 3-20-24, p. 10236, § 3; Amend Coun. J. 9-18-24, p. 16736, § 1)
Editor's note – Coun. J. 3-24-21, p. 28494, § 3, as amended by Coun. J. 3-23-22, p. 45493, § 2, and Coun. J. 3-20-24, p. 10236, § 2, provides: “This ordinance shall take full force and effect on April 1, 2021 and shall expire and be repealed of its own accord, without further action by the City Council, on December 31, 2024. This ordinance shall apply to permits applied for, on and after the effective date as well as permits applied for before the effective date, but which have not been issued by such date.”