Braddock Investment Group published a comprehensive study examining how Chicago's Northwest Housing Preservation Ordinance affects property transactions, revealing significant delays and increased costs.
-- A new comprehensive analysis reveals that Chicago's Northwest Housing Preservation Ordinance creates substantial challenges for property owners and real estate investors. The study examines how the ordinance extends typical property sales from 30-45 days to potentially 270 days, representing a nine-month delay that can violate mortgage agreements and create financial stress.
More details can be found at https://www.braddockinvestmentgroup.com/blog/why-chicagos-northwest-housing-preservation-ordinance-will-backfire-a-policy-analysis
The analysis shows that demolition fees have increased dramatically under the new rules. Property owners now face charges of $20,000 per unit and $60,000 per building, compared to the previous $5,000 per unit and $15,000 per building. These increases represent a four-fold jump in costs that property owners must absorb.
The ordinance requires property owners to provide tenants with 60 to 90 days advance notice before listing rental properties. Additionally, tenants receive up to 120 days to match accepted offers, creating uncertainty in the sales process.
Political support for the ordinance has weakened since its implementation. Two aldermen who originally voted for the measure have introduced amendments to remove their wards from coverage. Alderman Felix Cardona noted the ordinance creates delays that interfere with property owners' retirement plans, while Alderman Gil Villegas cited concerns about legal gaps and mortgage complications.
The study identifies eight major areas where the ordinance lacks clear guidance, including financial disclosure requirements, tenant association formation, and enforcement mechanisms. These gaps create compliance challenges and legal risks for property owners and tenants.
Real estate professionals have expressed concerns about the ordinance's impact on housing markets. Industry experts warn that the complex requirements discourage investment in affected neighborhoods and may reduce housing supply, potentially making homes less affordable.
"This ordinance creates unnecessary barriers that ultimately harm the communities it aims to help," said a Braddock Investment Group representative. "While the goals may be admirable, the implementation creates market distortions that will make housing less affordable and drive away responsible investment."
The company serves property owners throughout Chicago and surrounding areas, including Oak Park, Cicero, Arlington Heights, and Skokie. They assist homeowners facing foreclosure, divorce, relocation, or those who have inherited unwanted properties.
Interested parties can find more information at https://www.braddockinvestmentgroup.com
Contact Info:
Name: Zach Shepard
Email: Send Email
Organization: Braddock Investment Group Inc
Address: 1720 W Division St Fl 2, Chicago, IL 60622, United States
Website: https://www.braddockinvestmentgroup.com
Source: PressCable
Release ID: 89164141
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