The City of Chicago has had a little-known and largely unenforced condo conversion ordinance (pdf) on its books for more than 30 years.
Now that the condo conversion market has ground to a nearly complete halt, Mayor Daley is proposing additional disclosures and regulations governing the sale of new and converted condos, and additional protections for renters in condo conversions and properties in foreclosure. Read the Mayor’s press release.
Will consumers pay attention to and benefit from the new required disclosures or will they be just another layer of costs imposed on developers and condo buildings?
Thank the Lord, the Mayor is doing this. I’m sure it’s just coincidental that the election is merely 170 days away. Not that I’m counting or anything.
The Sun Times had a story that broke down the costs some more.
Not surprisingly my bete noire, soon to be former Aldercritter Shiller, was on the task force.
I vaguely recall other suggestions from her over the years that were vaguely similar. Stuff about limiting rent increases and punishing landlords financially for increasing rents. Stuff similar to giving renters an extension and six months at the old rent if a landlord decided to raise the rent.
Considering that condo conversion activity is virtually non existent at the moment this is really just a political stunt.
When the market picks up again it will just be an added cost to the developers and the buyers.
The important thing though is that people reelect “da mare”. Expect more circus follies between now and the election.
“Affordable housing is the cornerstone of a strong neighborhood”.
Driving down home values is contradictory to the goal of keeping the middle class above water on their mortgages.
“ the City will enhance its existing outreach programs targeted to existing tenants in apartments under conversion, prospective buyers and recent condo purchasers.”
I’m all for tenants and prospective and recent buyers assisting disadvantaged city personnel who reach out for help.