An ordinance proposed to City Council today by Mayor Brandon Johnson would give the City two new tools to advance development projects that are stalled due to liens involving vacant land.

“Too often, vacant properties stand in the way of new investment due to outstanding debts that will likely never be repaid by the property owner. This ordinance would provide opportunities to eliminate or resolve the debt for projects with proven public benefits,” Mayor Johnson said.

The ordinance would address demolition liens that are applied to abandoned properties where a building was razed at the City’s expense, as well as debt liens for properties with outstanding City debts, such as water/sewer bills. The ordinance would not address property tax debts, which are handled by Cook County.

“A $10,000 lot may have $40,000 in City debt, which is a deal-breaker for most buyers,” DPD Commissioner Ciere Boatright said. “The lien assignment would eliminate a huge roadblock for otherwise viable redevelopment projects.”

Properties eligible for lien assignment must:

• be located in a low-moderate income area defined by the City’s Affordable Requirements Ordinance
• be developed for a use approved by the Department of Planning or Department of Housing
• be vacant for two years or more
• and be transferred to an unrelated new owner for $1.

A property with a debt lien would have the lien released when the proposed project receives its certificate of occupancy or is otherwise completed. A property with a demolition lien would be made available to an unrelated new owner for the cost of the City’s lien.

Based on aldermanic and constituent requests, DPD estimates the ordinance could help advance five to 10 projects each year that are stalled due to unpaid liens.