Mayor Johnson has released the text for his new Protecting renters ordinance and as expected it is a bunch of new rules that will raise the rents on millions of Chicago tenants. I am going to break down how the law is currently written, please be aware that it is still in the early stages and thus we can see a ton of changes come before it is even voted on this fall. Truthfully, my hope is that the aldermen see that the Mayor has a 15% approval rating and do not decide to hitch their wagon to Mayor Johnson's horse. But in case it does go through, let's break it down so we can prepare for it. Here are the top things you need to know about the Protecting renters ordinance if it were to pass Chicago's city council. If you want to read the full text take a look at the city of Chicago government site linked here.
Rules for Tenants
One of the most surprising parts of the text was the fact that there were some anti-tenant parts to the bill, so we can go over those first.
1. If a tenant prevents access to the landlord to the Rental unit, they can be fined daily.
2. Sets up valid reasons to evict a tenant besides lease violations and non-payment of rent, such as not keeping the apartment clean, not keeping plumbing clean, destroying property, or disturbing other tenant's peace.
Establishes a Tenant Bill of Rights
" 5-12-035 Tenant Bill of Rights. (a) Rights. All tenants in the City shall be afforded the following rights and protections to ensure safe, fair, and respectful housing:
(1) Right to Habitable Housing. Tenants have the right to housing that meets basic health and safety standards, in accordance with the requirements of this Code.
(2) Right to Enforce One’s Rights. Tenants have the right to take legal action or seek administrative remedies to enforce their rights under applicable law.
(3) Right to Organize and Take Collective Action. Tenants have the right to organize a tenant’s union or similar organization, distribute leaflets, use building common spaces to organize, or become a member of a tenant’s union or similar organization, in accordance with applicable law.
(4) Right to Make Necessary Repairs. Tenants have the right to make repairs and deduct reasonable costs from rent when a landlord fails to address urgent or legally required repairs, in accordance with Section 5-12-110(d).
(5) Right to Fair Housing. Tenants have the right to housing free from discrimination as set forth in Chapter 5-8 of this Code.
(6) Right to Quiet Enjoyment and Access. Tenants have the right to live in their rental unit without undue interference from the landlord or other tenants, including the right to invite guests to the extent such guests do not interfere with the quiet enjoyment rights of other tenants.
(7) Right to Terminate a Lease. Tenants have the right to terminate a lease early under conditions set forth by law.
(8) Right to Protection from Unlawful Lockouts. Tenants have the right to enjoy their home without being forcibly removed, locked out, or having their utilities shut off, except as provided by law.
(9) Right to Withhold Rent. Tenants have the right to withhold rent under such conditions as provided in Section 5-12-110(e).
(10) Right to Freedom from Retaliation and Harassment. Tenants have the right to enjoy their home without harassment, intimidation, or eviction in retaliation for asserting the tenant’s rights. No tenant shall lose housing, suffer discrimination, or face retaliation because they are a victim of gender-based violence, and housing providers shall take reasonable measures to promote safety, protect confidentiality, and preserve housing stability.
(b) Penalties. Any landlord who violates, prevents, attempts to prevent, retaliates, harasses, evicts, or otherwise takes adverse action against a tenant for exercising or attempting to exercise any right under this section shall be subject to all applicable penalties under this Code. "
Source: 64229515-0ddc-4f75-b72e-39d938a33745.pdf
Just Cause Evictions
Establishes rules on if you can non-renew a tenant and depending on the reason a payment for relocation assistance that is between 0 to 10 months' rent. Here is the break down:
Zero Relocation Assistance Costs
(1) Nonpayment of Rent. If all or any portion of rent is unpaid when due and the tenant fails to pay the unpaid rent within five days of receipt of written notice from the landlord of the landlord’s intention to terminate the rental agreement if rent is not paid, the landlord may terminate the rental agreement pursuant to Article IX of the Illinois Code of Civil Procedure, codified at 735 ILCS 5/9-101 et seq. Provided, however, that at any time prior to the issuance of any order of possession or an eviction order made pursuant to Article IX of the Illinois Code of Civil Procedure, 735 ILCS 5/9-101 et seq., the tenant has a one-time right to cure the nonpayment of rent referenced in the written notice by paying the landlord unpaid rent, duly owed from the date of the notice of termination to the date of payment, together with all filing fees and costs paid by the landlord and all fees and costs expended by the landlord for service of process, but not including attorney fees. If the tenant so cures, then the case shall be dismissed upon motion by either the landlord or the tenant. If a landlord does not provide a total amount due, the tenant shall be obligated to provide only the amount of rent due from the notice to the date of judgment. A landlord may also maintain an action for rent and/or damages without terminating the rental agreement. Nothing in this paragraph shall be construed to impair a landlord's obligation to provide notice of termination of tenancy in subsidized housing as required under federal law or regulations.
(2) Material Noncompliance. If the landlord alleges that the tenant has committed acts in material noncompliance with the rental agreement or the tenant’s obligations under this chapter, the landlord may deliver written notice to the tenant stating the acts and omissions constituting the alleged material noncompliance and that the tenant has the right to remedy the alleged material noncompliance by a date certain but not less than ten days from the date that the landlord served the notice upon the tenant. If the breach is not remedied by the specified date, the landlord may terminate the rental agreement as provided in the notice. If the landlord accepts rent or does not file an eviction action within 30 days after serving the written notice or the end of the next rental payment period, whichever is longer, then the landlord's written notice is deemed withdrawn and the rental agreement shall remain in full force and effect. For purposes of this paragraph, material noncompliance means: (A) A serious breach of a material term of a rental agreement; (B) A deliberate or reckless violation of Section 5-12-040; (C) The use of the dwelling unit or other parts of the property for any criminal activity that either materially threatens the health, safety, or peaceful enjoyment of other tenants at the property, or has a material adverse effect on the management of the property. Provided, however, that this paragraph shall not diminish the rights of a landlord, if any, to terminate a rental agreement pursuant to 735 ILCS 5/9-118, 735 ILCS 5/9-119, or 735 ILCS 5/9-120; or (D) The unreasonable denial of the landlord’s access to the dwelling unit for a purpose authorized under Section 5-12-050 of this chapter, provided that the landlord provided notice in compliance with applicable federal, state, and local laws for seeking access.
(3) Refusal to Renew Rental Agreement. In all tenancies or rental agreements for a term of one year or more, if the tenant refuses to renew or extend the rental agreement within 45 days after receipt of the landlord’s request that the tenant do so in compliance with Section 5-12-070, the landlord may terminate the tenancy provided the offered renewed or extended rental agreement was in writing and substantially similar in material terms to the existing tenancy or rental agreement. Where the landlord elects to terminate, the landlord shall provide the tenant with written notice that the landlord may recover possession of the dwelling unit if the tenant does not vacate by the expiration of the required notice period or the expiration of the rental agreement, whichever is later. Additionally, if a landlord offers an extension or renewal that increases rent with the intention of encouraging the tenant to refuse to renew the rental agreement, the tenant may accept the increase or, in addition to any other remedies, reject the increase and notify the landlord that they will vacate the premises on or before the expiration of the notice provided, and the landlord shall provide the tenant with a relocation assistance fee in the amount set forth in Section 5-12-137(a)(2) within 14 days after receiving the tenant’s rejection. Evidence that may be used to demonstrate a landlord’s intention includes, but is not limited to, proof that the landlord seeks to increase the rent significantly more in one unit than in other, similar units that the landlord owns or manages.
The Greater of 5 Months Relocation Assistance, or $5k
(1) Occupancy by Owner or Qualified Relative. Upon 120 days’ written notice, the landlord, in good faith and without retaliation, may terminate a periodic tenancy or seek to recover possession of the dwelling unit at the end of the lease term so that the owner of the property or a qualified relative may occupy the dwelling unit as that individual’s principal residence for a period of no fewer than 12 continuous months. The owner or qualified relative must move into the unit within three months from the tenant leaving the unit. If a substantially equivalent replacement unit is vacant and available, that unit may be made available to the tenant at a substantially similar rental rate to the tenant’s current rental agreement or at a rental rate agreeable to the tenant. If the tenant accepts such a replacement unit, the tenant shall not be entitled to rental assistance. The tenant may reject the landlord’s offer of a replacement unit without prejudicing the tenant’s right to relocation assistance under this chapter. If the landlord recovers possession under this paragraph, and continuous occupancy by the owner or qualified relative is for fewer than 12 months or the owner or qualified relative fails to occupy the unit within three months of the tenant leaving the unit, a rebuttable presumption arises that the landlord has violated this section. The landlord may rebut this presumption by demonstrating that the intent to occupy for at least 12 continuous months was in good faith but could not be achieved due to circumstances beyond the landlord’s control. A landlord shall provide reasonable accommodation to the length of time allotted for tenant relocation prior to the landlord’s possession of a dwelling unit under this paragraph if the tenant has a disability as defined in Section 6-10-020 of this Code and the tenant’s treating medical professional supports by letter that the tenant would not be able to move in four months for a disability related reason.
(2) Condominium Conversion. The landlord, in good faith and without retaliation, may terminate a periodic tenancy or seek to recover the unit to sell it in accordance with a condominium conversion approved under Chapter 13-72 of this Code. If a substantially equivalent replacement unit is vacant and available, that unit may be made available to the tenant at a substantially similar rental rate to the tenant’s current rental agreement or at a rental rate agreeable to the tenant. The tenant may reject the landlord’s offer of a replacement unit without prejudicing the tenant’s right to relocation assistance under this chapter.
(3) Significant Repair Needed. The landlord may seek to terminate a periodic tenancy or recover possession of the dwelling unit: (A) In order to comply with a court or government agency’s order to vacate, order to comply, order to abate, or any other order that necessitates the vacating of the dwelling unit because of a violation of this Code or any other provision of law. This paragraph includes circumstances in which Chicago Housing Authority determines that a property fails Housing Quality Standards, as defined in 24 CFR 982.401, terminates its Housing Assistance Payment contract with the landlord, and requires a Housing Choice Voucher participant to make a mandatory move to remain in the Housing Choice Voucher Page 28 of 49 Page 29 of 49 program. The landlord shall promptly provide the tenant with a notice to vacate within the time mandated by the court or government agency, and include a copy of the order; or (B) In order to substantially rehabilitate or make necessary repairs to the dwelling unit, which would, according to a licensed contractor, render the unit uninhabitable for the duration of the rehabilitation or repair. The landlord must provide written 120 days’ notice to the tenant, together with a written statement from the licensed contractor stating the reason why the unit cannot be inhabited for the duration of the rehabilitation or repair. If a substantially equivalent replacement unit is vacant and available, that unit may be made available to the tenant at a substantially similar rental rate as the tenant’s current rental agreement or a rental rate agreeable to the tenant. The tenant may reject the landlord’s offer of a replacement unit without prejudicing the tenant’s right to the relocation assistance fee under this chapter.
(4) Removal or Demolition. If the landlord seeks, in good faith, to terminate a periodic tenancy or recover possession to demolish or remove the dwelling unit from residential use for a period of at least 120 days, the landlord shall provide the tenant with written 120 days’ notice to terminate the rental agreement.
The Greater of 10 Months of Rent, or $10k
Any reason not listed above!
Security deposits
Not any huge changes here except limiting the security deposit to one month's rent and now any interest accrued while the deposit is being held needs to be paid back to the tenant.
Rental Registry Fees
For a 1 to 4-unit building, the fee will be $20 per unit.
For 5 units to 49, the fee will be $40 per unit.
And for 50-plus unit buildings, the fee will be $60 per unit.
The full text is 49 pages long and again, I posted the link above. If you have time, I would suggest reading it, but there is more to this law that I will continue to blog about as new info comes out.
