Anti-Deconversion Ordinance’ Will ‘Interrupt’ Loss Of Cheap Housing Stock In Pilsen, 606 Area, Officials Say – Block Club Chicago

“The two- to four-unit stock is a foundational piece of the housing market that makes up a large part of the affordable supply in higher-cost areas,” Geoff Smith, executive director of the DePaul Institute for Housing Studies. “When you lose it, there’s not much mechanism to replace it.”
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Rob
5 years ago

The reason there’s no mechanism to replace it is because government regulation has made it too risky to build, own, and maintain. One deadbeat tenant, one section 8 tenant that trashed the place, and the landlord of a 4-flat goes bankrupt by property taxes, court costs, attorney fees. Like insurance, the governmenrt regulation has increased the risk and therefore the risk needs to be spread- you need 12 units in a property at a minimum to do that, and even that isn’t a guarantee since it increases the chance of having multiple deadbeat tenants, which has the perverse effect of… Read more »

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