Assessor’s Office Makes Changes to Mixed-Use Building Assessments in Cook County
Michael Abbatemarco Principal | 312.980.1145 michael.abbatemarco@ryan.com
Shawn King Principal | 312.980.1127 shawn.king@ryan.com
John Minogue Principal | 312.980.1168 john.minogue@ryan.com
The Cook County Assessor’s Office has made significant changes to how mixed-use buildings are assessed, which could result in significant tax increases for property owners. The new rules, which were implemented in response to a recommendation from the county’s inspector general, aim to close the “apartment loophole” that allowed some mixed-use buildings with little residential space to receive an owner assessment ratio. The rule change would apply to Class 3–18 properties, which are mixed-use buildings with at least 20,000 square feet of space or at least seven separate units between residential and commercial spaces. These buildings historically have been assessed at the 10% residential assessment ratio, which is lower than the 25% assessment ratio for commercial space. This was considered the “apartment loophole” where buildings with a small number of residential units and a larger amount of commercial space were benefiting from the lower 10% assessment ratio.
The Assessor’s Office has implemented stricter qualifications to close the apartment loophole.
- Class 3–18 is now capped at 99,999 square feet, which excludes larger buildings from receiving the lower residential assessment ratio.
- At least 65% of the total floor space must be residential, which limits how much commercial space can benefit from a residential classification.
If a building does not meet these qualifications, the Assessor’s Office will now assess the residential and commercial portions of the affected properties at 10% and 25%, respectively, resulting in significant assessment increases for property owners.
The experts at Ryan have been closely monitoring these changes and are here to answer any questions you may have.