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Chicago, IL Zoning Overlays & Bonuses: Density Bonus Law (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Minimum bonus
0.5 FAR, all D districts
Maximum bonus
2.75 FAR (DX-3) to uncapped (DX-16)
Review path
Planned development approval required
Fund split
80% Neighborhoods Opportunity Fund
Applies to
Downtown "D" zoning districts only

Summary

Downtown "D" district projects can buy extra floor area above the base FAR through Chicago's floor area bonus program.

17-4-1001 Purpose. The floor area bonus provisions of this section are intended to provide the opportunity for downtown area projects to achieve appropriate increases in floor area ratio above the base floor area ratios... 17-4-1003-E Minimum and Maximum Floor Area Bonus. 1. The minimum floor area bonus for any "D" district is 0.5 FAR. 2. Each of the following "D" districts shall have a maximum floor area bonus as follows: DX-16, DC-16 = No Maximum.

Source: MCC 2-44-080 Affordable Requirements OrdinanceView official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-74: Current through Council Journal of June 17, 2026).

Full Breakdown

Chicago Zoning Ordinance Sec. 17-4-1000 lets residential and nonresidential buildings in downtown "D" districts add floor area above the base FAR in exchange for a financial contribution tied to local land values. Every applicant must file a bonus worksheet with the Zoning Administrator, and approval runs through planned development review by the Chicago Plan Commission and city council. The minimum bonus is 0.5 FAR citywide; the maximum caps out by district, from 2.75 FAR in DX-3 up to no cap at all in DX-16/DC-16. Payments split 80% to the Neighborhoods Opportunity Fund, 10% to the Citywide Adopt-a-Landmark Fund, and 10% to the Local Impact Fund.

Violations & Fines

No self-executing penalty: a project simply cannot receive the extra floor area, or pull a building permit for bonus square footage, until the required bonus payment is made and the planned development ordinance is approved by city council.

Frequently Asked Questions

Which properties qualify for a floor area bonus?
Residential and nonresidential buildings located in any downtown "D" zoning district, per Sec. 17-4-1002.
How is the bonus payment calculated?
80% of the median cost per buildable square foot of land in the surrounding area, based on sales from the prior 5 years.

Sources & Official References

Other rules in Chicago

All Chicago rules

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