CUED

Impact of the Chicago Building Code on Small Businesses

The Chicago Association of Neighborhood Development Organizations (CANDO) has stepped in to help fill the knowledge gap with this report. Surveys, interviews, a meticulous review of the Chicago Building Code, and comparisons of the Chicago Code to model and suburban codes were conducted. Of primary concern was whether the Chicago Code played a sufficiently major role in hampering revitalization to warrant remedial measures. The Code document, the permit process, and the inspection process were investigated.

In general, the Chicago Building Code was not found to be a major deterrent to revitalization. Business people consider the Code a minor annoyance in their daily affairs. There is little question, however, that more revitalization of all kinds would take place if the Code and Code processes were clarified and streamlined to provide an additional incentive to the business climate. Major suggestions for improvements include: Retaining an editor to eliminate confusing and unnecessary language and clarify cross-references in the Code document; Clarifying permit requirements and procedures for business rehabilitation and expansion; Making permit and compliance procedures more accessible to business people by offering extended or Saturday hours; Placing Code updates and changes on a more rational schedule and making changes more readily available; Preparing an annotated guide to common small business code related problems; Implementing an "advance-notice" provision for code changes; Providing a code interpretation or construction advisory service for common code problems; Providing educational seminars for organizers and community group staff regarding the plan approval and code inspection process; Implementing a technical evaluation of heating and ventilating codes; Implementing a "Rehab Code" applicable to business. Other suggestions are listed in Chapters 5 and 6.

These suggestions would operate on a first order change level. The City should begin to consider a demonstration program to eliminate most City of Chicago Code requirements for new construction in excess of some dollar amount. Such a demonstration program would be in conformance with Enterprise Zone proposals and provide additional business incentives for locations in Chicago. This program would simply acknowledge the existing liability on the part of insurers, contractors, designers, lenders, and owners for compliance with national construction standards and for meeting the standards of the real estate market.

Elimination of local Code requirements should be initiated for large new construction projects for which the local Code does not provide any additional real protection to owners. Such a program would free plan reviewers and inspectors to provide additional services to small business owners and the public.

This website is maintained by Cedric Williams, Manager System Services,
UIC-Center for Urban Economic Development