Important Update on Mayor Johnson’s Radical Housing Proposal

Dear NBOA Friends and Colleagues,

As soon as next Monday, Mayor Brandon Johnson plans to introduce his “Protecting Renters Ordinance” (PRO), a massive overhaul of Chicago’s 40-year-old Residential Landlord and Tenant Ordinance (RLTO).

We have seen preliminary versions of the ordinance, and it is a disaster for our industry and will make housing even less affordable.

KEY PROVISIONS OF THE ORDINANCE

The draft legislation we’ve seen includes several major changes to housing rules. They include:

Rental registry: Establishes a citywide rental registry to allegedly track unit conditions, and ownership, including a requirement that we disclose the identities of all investors owning 20% or more of an LLC. The ordinance also will require housing providers to pay an annual fee to the City of up to $60 a unit. The proceeds of this fee will fund a “Bureau of Rental Housing Services,” which, among other things, will empower the City to penalize housing providers for violations of the RLTO.

Bans fees: Prohibits so-called “junk fees,” such as supplemental application and processing fees, and mandates that any charged amounts reflect actual documented costs. The Illinois General Assembly recently passed legislation requiring a wide range of fee disclosures. The Mayor’s team should allow us a chance to learn to adapt to the soon to come new State law before burdening us with more confusing prohibitions regarding fee disclosure?

Bans move-in fees and caps security deposits. The proposed ordinance incentivizes housing providers to start accepting security deposits by no longer requiring that we refund interest on security deposits, and offers “the right to cure” for certain violations of the security deposit provisions of the RLTO. A study conducted by one of our members reveals that at least half of our tenants prefer paying a smaller non refundable move in fee than a much larger refundable security deposit.

Just Cause Eviction: The ordinance provides tenants with a perpetual right to renew their lease so long as they pay their rent on time and otherwise comply with the lease agreement. This untenable “endless lease” provision means that housing providers will no longer be able to “non-renew” a lease unless they can prove in court that a tenant has materially violated the terms of their lease. In short, housing providers will lose the ability to remove problem tenants without a costly and lengthy eviction process.

Backdoor rent control: If a tenant believes that a rent increase is “unconscionable,” they would have the right to reject it and demand relocation payments equal to four months’ rent or more. The proposed ordinance does not define what is “unconscionable.” Instead, a court would make that determination.

And much more….

The NBOA will be sharing our concerns about this proposed ordinance with the members of the City Council and explain to them why it will make housing less affordable and our buildings more difficult to manager.

Help us fight this awful proposal. Here’s how you can help:

1) The City Council Committee on Housing and Real Estate is likely to conduct a hearing on the proposal at its next scheduled meeting on Monday, June 29, 10am, on the second floor of City Hall (121 N. LaSalle Street). Attend this hearing and support NBOA witnesses who we hope will have an opportunity to present statements in opposition. Look for an email later this week with more information.

2) Sign our on-line petition.

Petition Opposing Mayor’s Housing Ordinance

3) Reach out to your Alderperson and explain why you oppose this ordinance.

4) Support the NBOA with a donation or a sponsorship to our August 6, Summer Soiree (See below.)

Expect calls to action and other forms of advocacy in the weeks ahead. Please get informed and let us know if you want to be more involved in supporting our advocacy efforts.

Michael Glasser

NBOA President

ATTEND OR SPONSOR THE SUMMER SOIREE

We hope you can attend this year’s Summer Soiree. Consider the importance of what NBOA does, and how our work may impact your bottom line. We would value your sponsorship.