The City Council of the City of Chicago enacted a new "Keep Chicago Renting" Ordinance that, among other things:
(1) Requires a new notice provided in 4 different languages to tenants in foreclosed properties; and
(2) Requires that a $10,600 "relocation fee" be paid to tenants in foreclosed properties, unless the foreclosure buyer renews or extends the tenant's current rental agreement at no more than 102%of the existing lease rate; and
(3) Requires registration requirements as to foreclosed rental property, with a $250 registration fee per property;
(4) Provides a private right of action for violation of the notice and "relocation fee" provisions, with attorneys fees to the "prevailing plaintiff;" and
(5) Additional penalties to be enforced by the City.
The new Ordinance takes effect "90 days after its passage and publication," which should be September 5, 2013.
A copy of the text of Ordinance is available at: Ordinance Text
The Chicago Mayor's press release as to the new Ordinance is available at: Press Release
The new Ordinance does not apply, among other things, to:
(a) Pre-existing REO owners; or
(b) Purchasers who are not the mortgagee, or a "subsidiary, parent, trustee, nominee, agent or assignee" of the mortgagee; or
(c) Leases that are with the mortgagor or an immediate family member of the mortgagor, and leases that allow "substantially less than fair market rent for the property, or the rental unit's rent is reduced or subsidized due to a government subsidy."
Ralph T. Wutscher
McGinnis Wutscher Beiramee LLP
The Loop Center Building
105 W. Madison Street, 18th Floor
Chicago, Illinois 60602
Direct: (312) 551-9320
Fax: (312) 284-4751
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Admitted to practice law in Illinois
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