Protecting Tenants in Foreclosed Rental Property Ordinance - PASSES!

NEW RIGHTS Effective 9/24/13 -  "KEEP CHICAGO RENTING" ORDINANCE TAKES CITY BY STORM 

On Tuesday September 24, 2013, the "Protecting Tenants in Foreclosed Rental Property Ordinance" (also known as "Keep Chicago Renting Ordinance") became effective and now applies to all Chicago residential properties.  The law is cited as "Chapter 5-14 Protecting Tenants at Foreclosures" and can be found here.

Pursuant to Section 5-14-010, the purpose and scope of the Keep Chicago Renting Ordinance is:

"In order to protect and promote the health safety and welfare of its residents and mitigate the damaging effects on our communities of foreclosures, which individually are catastrophic for the families and tenants who lose their homes, and collectively can economically destabilize an otherwise healthy neighborhood, by causing building abandonment, excessive vacancy, declines in property values, and a perception of a neighborhood as being unworthy of investment, it is the purpose of this chapter and the policy of the city to preserve, protect, maintain and improve rental property and prevent occupied buildings from becoming vacant after foreclosures."

The Ordinance protects a tenant's right to live out an existing rental agreement and imposes on owners a $10,600.0 "relocation assistance fee" unless the owner offers such tenant the option to renew or extend the tenant's current rental agreement, with allowed increases in rent over a two (2) year period at a specified statutory rate (see the law for more!).  If the owner fails to comply the tenant shall be awarded damages equal to two (2) times the relocation assistance fee ($21,200.00), plus reasonable attorneys fees and costs.  

Yes, this is the law and more blog entries related to this will be coming soon!