Key facts
- Chicago's City Council is considering two competing ordinances to update rental rules.
- Mayor Brandon Johnson's "Protecting Renters Ordinance" (PRO) proposes a rental-property owner registry, tenant bill of rights, and elimination of move-in/move-out fees.
- PRO would establish a Bureau of Rental Housing Services and is projected to raise $22 million annually through registration fees of $20 to $60 per unit.
- The FAIR ordinance, supported by landlord and business groups, also includes an ownership registry and enforcement arm but would not have a registration fee.
- FAIR exempts buildings of up to 12 units and aims to streamline permits for new construction.
- Illinois Realtors opposes Johnson's proposal, arguing it will deter builders and increase rental costs.
Chicago's City Council is poised to decide the fate of two competing rental ordinances, the "Protecting Renters Ordinance" (PRO) and the "Fair and Accountable Illinois Rental Ordinance" (FAIR). Both proposals aim to update the city's four-decade-old rental regulations, but they diverge significantly on renter protections, landlord costs, and strategies for increasing housing supply.
Mayor Brandon Johnson's PRO ordinance seeks to expand the city's regulatory oversight. It includes establishing a rental-property owner registry, a tenant bill of rights, and making a tenant legal-assistance pilot program permanent, while eliminating move-in and move-out fees. The proposed Bureau of Rental Housing Services within the Department of Housing would investigate complaints and assist tenants facing eviction. PRO is slated to be funded by annual registration fees ranging from $20 to $60 per unit, with an estimated annual revenue of $22 million. Certain owner-occupied buildings with fewer than six units would be exempt from fees but still covered by the ordinance.
Conversely, the FAIR ordinance, backed by landlord and business groups, also proposes an ownership registry and an enforcement arm, but would place it within the Department of Buildings. This plan features no registration fee, permits disclosed move-in fees, and exempts buildings with up to 12 units. Supporters of FAIR argue that reducing development costs through measures like expedited permitting is a more effective path to affordability than increased regulation.
Illinois Realtors, represented by CEO Jeff Baker, is actively opposing Johnson's PRO ordinance. Baker contends that the cumulative effect of PRO's policies will discourage builders and reduce rental unit availability, ultimately driving up rent prices. He criticizes the consolidation of previously debated policies into a single ordinance being pushed for passage this fall.
Nationwide, cities are grappling with rising housing affordability pressures, leading to revisions in landlord-tenant rules. New York City, for instance, saw its Rent Guidelines Board freeze rents on approximately 1 million stabilized apartments for one- and two-year leases in June, a move that led to a lawsuit from landlords alleging improper influence on the board's decision-making process.