The Department of Planning and Development (DPD) makes City-owned real estate available for purchase and redevelopment through the following programs.
Adjacent Neighbors Land Acquisition Program
The Adjacent Neighbors Land Acquisition Program (ANLAP) makes City land available to adjacent property owners for a discounted price. The purchaser must own one or more contiguous parcels of real property immediately adjacent to the City-owned parcel. At least one of the parcels must be occupied by the purchaser as a primary residence. During the first 10 years of ownership, the land must be used for open space, a garage or an addition to the main residence.
The Negotiated Sale program enables qualified individuals or entities to purchase vacant or improved properties that are owned by the City. The value of the property is established by a market value appraisal prepared by an independent appraiser that's hired and compensated by the City. Any property purchased through a negotiated sale requires a good faith deposit, detailed project budget, and a letter of support from the local alderman. The program is intended for larger and more complex developments and projects that request City financial assistance. Development are guided by a Redevelopment Agreement (RDA) approved by City Council.
Requests for Proposals (RFPs)
DPD issues RFPs that identify goals and objectives for specific City-owned properties. Each RFP describes the type of development being sought, any financial incentives being offered, the offering price, and instructions for submitting responsive proposals. RFPs are posted on DPD’s website and announced through a public notice published in the Sun-Times.
Large Lots is a City of Chicago neighborhood stabilization initiative to help property owners, block clubs and non-profit groups in select Chicago neighborhoods to purchase City-owned land for $1 per parcel. Up to two lots are available per application. Properties are sold “as is” via a Quit Claim deed.The lots may be used to expand the yards of existing homes, for beautification, for gardens, for housing, and other uses permitted by Residential (R) zoning. Successful applicants must maintain ownership of lots for at least five years.
A sealed bid sale offers City-owned land to any person or entity through a competive bid process. The program is intended for the development of small, market-rate projects that do not require City assistance. Upon receipt of an independent appraisal, the CIty places an advertisement in a local newspaper notifying the public of the sale for a minimum bid equal to the land’s appraised value. Bids are accepted for 30 days and the land is sold to the highest bidder. A letter of support from the local alderman is required.
Negotiated Sale for Open Space or Parking
City-owned land is made available to adjacent or nearby property owners for use as parking or open space. An appraisal determines the sales price. The purchaser must complete an open space project within six months or a parking lot within one year of closing. A letter of support from the local alderman is required.
Third-party brokers are sometimes used to help facilitate the sale of select City-owned properties. The broker will market a property in advance of a public notice being placed in a local newspaper.
Historic Buildings For Sale
City-owned properties improved with former police and fire stations, schools, and a variety of special purpose structures are available for sale to private-sector purchasers. The properties are vacant and in need of rehabilitation. Historic buildings are typically sold through the Negotiated Sale process.