Frequently Asked Questions About the City of Chicago Landmark Ordinance

There are minor differences between designation of an individual structure and the designation as a “contributing structure” in a Landmark district. These Q&A apply to a Landmark District.

Q.
What is the major impact on the owner of a property designated a “contributing structure” in a Landmark district?
A.
The major impact is that, except in cases of proven hardship, the owner cannot obtain a permit for its demolition – and thus cannot legally tear down the building. Indeed that is the major purpose of the Landmark Ordinance – to preserve the structure.
 
Q.
Can a property be designated a landmark without the consent of its owner?
A.
Yes. While an owner’s consent is desirable, it is not required.
 
Q.
Is this restriction Constitutional?
A.
Yes it is. The legal authority for a local government denying an application for a demolition permit has been upheld by the Supreme Court in Penn Central Transportation Company vs. the City of New York (1978). In that decision Justice William Brennan wrote for the majority: “Underlying the opinion is the notion that aesthetic values, particularly historical preservation, are important public interests that justify restrictions.” The Chicago Landmark Ordinance was upheld in International College of Surgeons vs. City of Chicago (1994)
 
Q.
Is this restriction fair?
A.
While one must accept the fact that the restrictions imposed by Chicago’s Landmark Ordinance are legal, one may still hold to the position that they are unfair. And while we respect that position, we hold to the opposite. We believe it is fair. Like so many restrictions on the use of property in urban environment, we believe these restrictions are beneficial to the common good. Zoning is one of those restrictions. At one time it was controversial, but today most accept the concept as benefiting the community as a whole if not always the individual property owner who might want to build bigger and higher or sell to someone who would.
 
Q.
Does Landmark designation require the owner to do anything specific such as restore the structure to its original condition or purchase special insurance?
A.
No. The ordinance does not require that the owner do anything specific. Its impact is in restricting what an owner may do.
 
Q.
What are these other restrictions?
A.
Generally they involve building additions and replacing windows and siding. For contributing structures these restrictions apply only to the facades of the structures that can be seen from the public way. For most structures that is the front of the structure. For a structure on a corner, it is the front and the side façade.
 
Q.
How does the process work?
A.
If a change requires a City permit, the application for a permit is forwarded to the staff of the Landmarks division for review. If no permit is required, there is no review. Painting and minor repairs do not require permits.
 
Q.
What changes require a permit?
A.
For a list visit the City of Chicago’s Building Department’s website.
 
Q.
When the staff reviews a permit application, what does it concern itself with and what does it automatically sign off on?
A.
The staff is concerned about changes to the façade that can be seen from the public way. It is not concerned with any changes to the interior of the structure or to sides of the structure that cannot be seen from the public way. Alleys are NOT considered to be the public way for this test.
 
Q.
How long does the review by the Landmark’s staff add to the permit issuance process?
A.
The Landmark staff prides itself on swift reviews and has kept statistics. In 2004, over 88% of the permit review took one day or less. That is because most permit applications involve changes the Landmark staff does not care about.
 
Q.
How many structures have been designated as individual Landmarks and how many Landmark Districts have been designated?
A.
As of January 1, 2008, 255 structures have been individually designated and 49 Landmark Districts have been created, along with 7 district extensions. Together they account for some 9,000 Landmarked structures. The Landmark Ordinance marked its 40th anniversary in January 2008.
 
Q.
Are there any financial benefits to having one’s house designated a contributing structure in a Landmark District?
A.
Yes. For owner-occupied structures there are three: (1) waiver of permit fees (with pre-application); (2) eligibility to participate in an 8 to 12-year property tax freeze program; and (3) eligibility to donate a façade easement and receive a deduction in one’s Federal Income Tax.
 
Q.
Can you briefly describe the last two programs?
A.
Yes. To receive an 8 to 12-year property tax freeze, the owner must spend at least 25% of the market value of his property as determined by the county assessor in improvements and do so according to the standards of the U.S. Secretary of the Interior. The market value is not the privately appraised value or the sale price value. Several Edgewater residents in the Lakewood Balmoral neighborhood have participated in this program and secured the property tax freeze. For further information visit: www.state.il.us/hpa/ps/taxfreeze.htm

The façade donation program here in Chicago is through the not-for-profit Landmarks Illinois corporation, which is approved by the IRS to accept façade easement donations. The donation is a legal document that is recorded by the Cook County Recorder of Deeds. The value of the donation is generally between 10% and 15% percent of the appraised value of the property – which is the market value of the property. For example, if the market value of the property is $700,000, the value of the donation is $70,000 at the 10% rate. This is the amount of the Federal Income Tax deduction one may claim. The higher one’s incremental income tax bracket, the more valuable is the donation. At a 28% tax bracket, the value would be $19,600. For further information visit: www.landmarks.org and click on “easements.”

Additional information: For additional Q&A about the Landmark Ordinance visit www.cityofchicago.org/landmarks/ (the official site of the City of Chicago’s Landmarks Commission) and www.preservationchicago.org (Preservation Chicago is a not-for-profit advocacy group).

Prepared by the EHS; version #4 (April 11, 2008); The EHS reserves the right to modify and add to these Q&A.