Chicago Municipal Code Section 17-9-0118-D requires owner-occupancy of either the principal unit or the ADU for the first five years after permit issuance in some pilot zones, recorded by a covenant. The South and Southeast zones have no owner-occupancy requirement.
Under MCC 17-9-0118-D, owner-occupancy is required for the first five years after permit issuance in the North and Northwest pilot zones. The owner must occupy either the primary dwelling or the ADU as their principal residence, evidenced by a recorded covenant on title. The West, South, and Southeast pilot zones do not have an owner-occupancy requirement, reflecting the equity-driven design of the program in historically disinvested areas. JADU-equivalent conversion units within the principal structure are subject to the owner-occupancy rule where applicable. The covenant is released after five years upon owner request and DOH verification, after which the ADU may be operated as a standard rental.
Violating the owner-occupancy covenant is a breach of the recorded restriction enforceable through Administrative Hearings under MCC 2-14-074. Penalties include grant clawback plus $500 to $1,000 fines per violation and required restoration.
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