Chicago Considers Sweeping Tenant Protection Ordinance

Chicago’s City Council will consider a new proposed ordinance entitled the Protecting Renters Ordinance. The proposed ordinance will limit a landlord’s ability to refuse to renew or terminate a lease.  Under the proposed ordinance, landlords may refuse to renew or terminate leases when the landlord has ‘just cause,’ such as non-payment of rent, a lease violation, owner occupancy, taking the unit off the market, or substantial rehabilitation

The proposed Protecting Renters Ordinance requires landlords to pay relocation assistance to their tenants when the landlord elects not to renew the tenant’s lease for a just cause, thereby requiring the tenant to vacate the property through no fault of the tenant.

The Ordinance will limit security deposits to one month’s rent and eliminate non-refundable move-in fees. Along with establishing the Office of Housing Stability, which will assist renters and landlords in understanding their rights and obligations, document tenant complaints against landlords, and offer mediation services.

Proponents believe that the Protecting Renters Ordinance will increase housing stability, reduce unnecessary evictions, lower homelessness in Chicago, and help tenants with negligent landlords.

Opponents of the Protecting Renters Ordinance say that the new costs associated with the ordinance will increase operating costs, drive up rents, and discourage investment in rental housing.