What is a Certificate of Occupancy and When is it Required? — Updated 2023
A Certificate of Occupancy is a document certifying that a building meets the building-code requirements.
If you're doing construction on a multifamily building and preparing to sell it, you should be getting a certificate of occupancy so that your future buyer knows that this is a certified renovation of a multifamily building.
In Chicago, a Certificate of Occupancy is required for certain buildings, including:
Residential buildings with 4 or more units
Non-residential buildings over 10,000 square feet
Schools
Large theaters or concert halls
Bars exceeding 100 occupancy
Single-family homes don’t require a certificate of occupancy. A Certificate of Occupancy will classify a building according to its use, certify that it’s suitable for occupancy, that it has complied with all applicable rules and regulations.
Three Reasons to get a Certificate of Occupancy
The Bank — a bank may require a Certificate of Occupancy to know that the building has a legal amount of units before approving a loan
Fire Department Unit Safety — The fire department should know where the units are, how many bedrooms, how many people approximately live in that unit / building
Inspections — a guarantee that the building has passed all necessary inspections
When is a Certificate of Occupancy Required?
A Certificate of Occupancy is required for new construction and major renovation or alteration of an existing building.
Major renovation or alteration includes any work that:
Changes the occupancy classification
Replaces a central HVAC with individual unit HVAC systems
Relocates or reconfigures exit stairwells
Changes the number of individual units or distribution of units per floor
Without a Certificate of Occupancy, the building may not be occupied. Also, Banks may require a Certificate of Occupancy before approving a loan.
Inspections Required for Certificate of Occupancy
The inspection process for issuance of a Certificate of Occupancy is comprehensive and includes a:
Building inspection
Fire safety inspection
Plumbing inspection
HVAC inspection
Electrical inspection
Other types of building certificates — zoning certificate
Anyone purchasing a multi-unit property with five units or less in Chicago, at closing the buyer should receive a zoning certificate. A zoning certificate is another way to determine a legal unit count.
If you’re looking to acquire a zoning certificate in the city of Chicago, typically the property owner can fill out the necessary documents at Chicago City Hall noting items such as how many units per floor, and total number of units — which can either be approved or denied by the department.
Zoning Certificates are for up to five dwelling units. Any building with more than five or any commercial units will require a Rebuild Letter.
Contact BLDG Projects Chicago Architecture and Design for more questions about building permits and building certificates.
Resources
https://www.chicago.gov/city/en/depts/bldgs/supp_info/certificate-of-occupancy.html - City of Chicago, Certificates of Occupancy
https://www.chicago.gov/content/dam/city/depts/bldgs/general/Inspections/CofORulesandRegs.PDF - City of Chicago, Certificates of Occupancy Municipal Code
