# Converting ground floor commercial to residential in Chicago Ground floor residential in commercial and mixed-use areas is allowed in very few zoning districts in Chicago. As of right, ground floor residential is allowed in B2 and DR zoning districts, and with a special use from the Zoning Board of Appeals it's allowed in B1, B3, C1, C2, DC, and DX zoning districts. There are two additional methods, for a total of four, to permit ground floor housing. Tip: Each Property Report's Zoning Assessment for a Chicago-based lookup will indicate if ground floor residential is allowed and through what approval process (either as of right or special use). ## Via rezoning It may be possible in some wards to rezone a property to "B2", which allows ground floor residential uses as of right. ## Via special use In B1, B3, C1, C2, DC, and DX zoning districts it's possible to have ground floor residential uses by applying for and being granted a special use from the Zoning Board of Appeals. ## Via the permanent ADU ordinance City Council adopted a permanent Accessory Dwelling Unit ordinance on September 25, 2025, which takes effect on April 1, 2026. In certain circumstances it's possible to build ground floor residential in B1, B3, C1, and C2 zoning districts. One or more ADUs, depending on the number of ADUs allowed at that property, is allowed on the ground floor "if at least 40% of the ground floor fronting the public way is devoted to commercial use". ### Code sections - 17-9-0131(7). "In any B or C zoning district, except a B2 or C3 district, conversion units below the second floor may be authorized by-right only if at least 40% of the ground floor fronting the public way is devoted to commercial use. Any other conversion unit must be approved as a special use." - [SO2024-0008918](https://chicityclerkelms.chicago.gov/Matter/?matterId=54028B60-C4FC-EE11-A1FE-001DD804AF4C), see file "SO2024-0008918 ADU 9.23.25 (LRB 10a) (2) (1).pdf" ## Via administrative adjustment An ordinance adopted on February 19, 2025, aims to make it easier for property owners to convert unused commercial and retail space on the ground floor into housing. This move will reestablish tenancy in vacant spaces and increase the amount of accessible homes for rent in Chicago. ### How it works First, the property must be in an R, B, C, or D zoning district except that it cannot be in a C3 or DS zoning district. Property owners who wish to take advantage of this will need to count the number of *zoning lots* on the same side of the same block that already have residential uses. If the number of *zoning lots* with residential uses more than 50 percent then the property owner can proceed apply for an #administrative-adjustment (via a building permit application) to convert their unused commercial space to residential. Per the usual **administrative adjustment** standards, the property owner will have to notify the adjacent owners and the alderperson of that ward. ### Examples of eligible commercial spaces #### Logan Square In the example shown below, there is a two-story building in Logan Square with a commercial ground floor space. The zoning here is B3-1, which allows ground floor only after obtaining a special use from the Zoning Board of Appeals. Additionally, the -1 zoning doesn't allow any additional dwelling units here.  But, the property is on a block where more than 50 percent of the zoning lots have ground floor residential, making it eligible for conversion after obtaining an administrative adjustment, which is a simpler, faster, and less costly process. ### Use Property Report to determine eligibility With the Property Report's main map and some poking around, it's possible to use Chicago Cityscape data to determine if a given property is eligible for this conversion. 1. Open a Property Report for the address or PIN that you own or are interested in. 2. At the top of the report, in the main map, select the "Show properties layer" button. After a moment the parcel map will appear, and each property type is color coded. 3. Visually inspect the properties on the same block as the property of interest (this means looking at the properties on the same side of the street between the nearest two intersecting streets). 4. On the map, look at the color coded shades of each property or select each property to see its classification; look for properties with a classification starting with "2". **If more than 50 percent of the properties on the same block are entirely residential then you may have a clear case of eligibility**. If it's unclear what a property's ground floor use is, you may need to visit the block and tally the number of zoning lots (properties zoned the same and owned by the same entity) that have ground floor residences. Alternatively, use Google Maps Street View or Apple Maps Look Around to get a better sense of the ground floor uses. #### Code sections - [17-13-1003-NN](https://codelibrary.amlegal.com/codes/chicago/latest/chicagozoning_il/0-0-0-51416) in the Chicago zoning code - ordinance [O2024-0008277](https://chicityclerkelms.chicago.gov/Matter/?matterId=39ACB897-E3E2-EE11-904C-001DD806E944) introduced by 44th Ward Alderperson Lawson on March 20, 2024 ### Additional information Alderperson Lawson (44th Ward) provides this flyer describing the zoning code amendment.  *Flyer provided by the 44th Ward office.* ## Related articles - [[Unused zoning capacity]] - [[Finding opportunities for ground floor residential]]. This article has tips on how to find properties are currently zoned to allow ground floor residential as of right.