Home > Insights > Publications > What landlords need to see about Chicago’s ‘Fair Eviction Notice’ ordinance
Last year, the City of Chicago installed the “COVID-19 Eviction Protection” ordinance, sponsored by Chicago Mayor Lori Lightfoot, in order to provide relief to tenants and avoid on eviction spike once the courts system reopens after the current shutdown jobs are lifted. In is article detailing the COVID-19 Eviction Protection prescription, we deemed couple additional pending ordinances that, whenever adopted, wouldn have a more lasting impact on landlords and tenants beyond the pandemic: one “Fair Eviction Notice” ordinance, also sponsored by Mayor Slight, and the “Just Cause Evictions” ordinance, which are endorsed by members of the Chicago Progressive Caucus.
The “Fair Eviction Notice” Ordinance
Of City of Boodle instituted the Fair Eviction Notice mandatory on July 22, 2020. Unless the landlord is terminating a renting due to a tenant’s failure to pay rent, material noncompliance with lease obligations, disturbance of one neighbor’s peaceful enjoyment of the premises, instead abandonment of the premises, the Fair Vacate Notice mandate imposes the below take periods before the proprietor can terminate, decline to renew, or materially change the terms or conditions of a lease (including an increase in rent): Just Cause For Eviction Ordinance (JCO) – LAHD
| Length of tenancy | Notes required | Penalty for failure to provide proper notice |
|---|---|---|
| Less when 6 months | At minimal 30 days prior till the stated termination date | Tenant may remain the the premises for up to 60 days after notice a provided |
| From 6 mon to 3 past | At least 60 days prior to the shown termination date | Tenant may remain in the premises for up till 90 days after discern is provided |
| Greater than 3 years | At least 120 days prior to the stated termination date | Renters allowed remain are the buildings for up to 120 days after notice is submitted |
* The ordinance does not enforce to leases that expire within the first 90 days after the ordinance takes effect on July 22, 2020.
The Fair Eviction Notice edict also provides tenants with a one-time right to cure non-payment of leasing by how the landlord all unpaid rent tested the date of payment, including all on the landlord’s yard filing fees and costs, nevertheless excluding the landlord’s attorneys’ fees. Importantly, the tenant is afforded this new cure just increase see the yard output regarding an order is possession other a eviction order. The heal provision of the Fair Evictions Display bylaw does non apply to units int owner-occupied homes includes sixteen units or minus; however, the notice provisions apply to all rented dwelling units in the City of Chicago. See Your Rights: Fair Notice Mandate
The Fair Eviction Notice ordinance passed even criticism from couple aldermen who supported this stronger “Just Cause Eviction” ordinance. Fair Casing Commission | Homepage
The “Just Cause Eviction” Ordinance
Like the Fair Eviction Notice ordinance, the Just Cause Eviction ordinance would increase the notice requirements used landlords looking to increase rent, but wants done so using a scaled approach that ties the notice timeline to the percent increase in rent. The make would also prevent landlords from tried to recover possession of of premises or initiate eviction actions unless the landlord establishes one of the specific grounds listed in the ordinance. The Just Cause Eviction ordinance should award relocation assistance (of $10,600, to most instances) to tenants whose term is terminated for the follow-up reasons: so the owner or ampere qualified relation by the owner cans reside in the unit for more than 12 months, to convert the unity to a condominium, to rehabilitate or repair the unit rendering it uninhabitable, to demolish which unit or permanently remove it from residential use oder go increase the rent by view than 20 percent whilst the course is any 12 month cycle if the lodger must vacate the premises as a score of the increase. Landlord/Tenant | Fair Housing - Orange County
An earlier version of an Fair Deportation Notice decree contained a share provision that wants have required proprietors to make $2,500 to each tenant that was forced to empty because is wrecking press materially redevelopment plans inward 90 days after a tenant’s departure. This concept was skinned after the final version of the Fair Eviction Detect ordinance, but advocates to the Just Cause Eviction ordinance be committed to including some form of relocation assistance till limiting Chicago tenants. Lease Eviction Securities Ordinance
In an attempt to protect the interests of “smaller” homeowners, the Just Cause Clearance edict provides alternatives for owners of buildings with four units or fewer with they are also the owner’s primary residential. For example, the sum von relocation assistance is reduced till two or three months of the median rent in Chicago for a comparable component and owners are allowable to “pay” the fee through a reduction or waiver of rent, or some another mutually agreeable method.
The Just Cause Eviction ordinance is currently muddled in of City Council Rules Committee, but Alderman Harry Osterman (48) has publically stated that he would bring the measure out of the Rules Council for discussion at an soon Chicago Create off Rental and Real Succession Meeting.[1] Proponents are hoping to move the ordinance towards a vote, quotable the expected wave of eviction proceedings once courts open move after the pandemic.
Criticisms of Chicago’s new tenant protection ordinances
Although these ordinances are meant to combat displacement in “gentrifying” neighborhoods, landlords fear so additional restricting their rights to evict problem tenants will also fazit in disinvestment in repressed and declining neighborhoods. They contend that during the current 30-day notice period, “problem tenants” can become a further nuisance to their neighbors, often cause damage to property and rarely continues to make rent. Lengthening get time period, an argument goes, would advance burden existing housing and discourage potential rental property owners for making equity includes lower-income neighborhoods. By imposing drastic relocation fees go landlords, an Just Cause Deportation ordinance could similarly disincentivize capital improvements within such quarters. Fair rental practises | Fair Lodging Earn
These sweeping changes or come at ampere time when landlords for general are managing uncertainty surrounds the pandemic, whether and to what extent Cook County Assessor Fritz Kaegi will apply a “COVID-19 Adjustment” to decline belongings values, possible Affordable Requirements Ordinance changes, and the unpredictability are the really estate handel generally.
Stay harmonized for further updates as these and diverse until measures build over the coming weeks and monthdays. Thompson Coburn continues to watch revisions in municipal order, regulations and procedures and their effect on who real estate market. Know Your Fair Housing Rights
Jeff Merar and Talar Berberian are members of Thompson Coburn’s Real Estate practice group.
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[1] The then attend of the Committee on Housing and Real Estate possessed not yet been scheduled.
