C
hicago's real estate industry is pushing back against a new anti-gentrification ordinance on the Northwest Side. The measure requires developers to pay significant demolition fees and gives tenants the right of first refusal before their rental homes are sold. This applies to parts of Logan Square, Avondale, Hermosa, Humboldt Park, and West Town.

    The ordinance aims to slow down gentrification in areas that have seen rapid change over the past decade. Developers began tearing down two- and three-flats along the 606 trail and replacing them with luxury homes. The area lost nearly 60% of its two- to six-flat buildings between 2013 and 2018, according to the DePaul Institute for Housing Studies.

    The right of first refusal provision has real estate players concerned. It delays the sale of buildings and could discourage investment, said Michael Glasser, president of the Neighborhood Building Owners Alliance. The ordinance requires owners to give 60 days' notice to the city and tenants before selling a building. If an offer is received, owners must notify tenants who have 90 days to form a tenant association and decide if they want to buy the building.

    Glasser invoked "redlining" in the Neighborhood Building Owners Alliance's statement of opposition, claiming that the measure effectively redlines these neighborhoods by making it difficult for banks to lend on rental buildings. However, Christian Diaz, director of equitable community development for Palenque LSNA, countered that this policy offers people of color and working-class individuals the opportunity to buy their homes.

    The ordinance also allows for the construction of two-flats by right in areas zoned for single-family homes. Increased demolition surcharges aim to preserve naturally occurring affordable housing and prevent displacement. However, some argue that these fees may lower property values by inhibiting owners' ability to sell or redevelop properties.

    Palenque LSNA spent nearly a decade working with residents to craft the ordinance, which aims to address concerns about rising costs of living, air pollution, and noise from construction. The Northwest Preservation Ordinance will be studied for its long-term impact, guiding future anti-gentrification legislation in the city.