Alderpersons have reached a compromise on a stalled proposal to authorize “granny flats” citywide as a way to boost housing stock in a city with a 120,000-unit shortage.

Set for a Council vote Thursday, the ordinance would expand the city’s granny flat pilot program in multi-unit residential and commercially zoned areas, meaning coach houses and tiny homes could be built there without special permission from the city, alderpersons said.

But in neighborhoods dominated by single family homes, alderpersons would need to opt in to the program, giving the local council member authority over the flats, also known as “additional dwelling units,” in their wards.

The compromise also sweetens the deal for Chicago’s labor unions by requiring that any new coach house construction include “workers f

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