City council voted this week to extend an ordinance aimed at slowing gentrification and displacement in Pilsen and areas near the 606 trail. The measure imposes a fee on permits for the demolition of buildings with residential units.
Housing Commissioner Marisa Novara said the initial imposition of the fee in April 2021 had helped slow gentrification-fueled displacement happening along the popular biking and jogging trail and in Pilsen, one of the city’s most in-demand real estate markets.
The surcharges, being extended for two more years, are $15,000 for demolishing a house, townhouse or two-flat and $5,000-per-unit for tearing down multi-unit residential buildings. Critics have said such fees steal equity from residents who “stuck it out through tough times.”