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The market will not solve the housing shortage

Posted on February 15, 2016January 13, 2024 by admin

There is a strong consensus that we need more inclusive and stronger democratic societies. We all acknowledge that access to decent affordable housing in integrated societies where everyone can feel ‘at home’, is one of the fundamental pillars in well- functioning democratic societies. Exclusion, poverty and insecurity foster fear and hostile environments.

With the recent terrorist attacks in Paris, in Beirut, in Sharm el-Sheikh and so many more in the towns and cities of the Middle East, it is hard not to link these atrocities to the social situation in many of our communities. As I see it, poverty, alienation and a desperate lack of any positive signs for a better future are some of the main causes for this development.

So do our societies provide for this human right to a decent home? Yes, for many of us who have a steady job and can rely on the market to provide us with good and, for us, affordable homes. But for all others? The simple answer is ‘no’. Neither society, nor the market, has been capable of providing enough decent affordable homes in a safe environment to low income citizens. Throughout the years the Market has lobbied for more deregulated housing markets, and to leave any housing deficits for them to fix. Has this happened, anywhere? The simple answer is again ‘no’.

And honestly, does anyone really believe that the market is interested in providing homes to low-income households? It’s simply not their job, their task. The market does not have this social responsibility. Every time when I hear this mantra ‘we need more market solutions, or ‘let the market deal with any deficiency of housing’ – I say: “don’t believe in them”. The market alone does not deliver affordable housing for low income households. Because the concept of supply and demand simply does not work in housing, like it does for cars and dishwashers.

How then can we supply the housing market with more affordable housing? As a person with a low income cannot step right into a bank and ask for a loan…we basically talk about ‘affordable rental housing’!

We need more tenure neutral housing policies. Today, homeownership is often promoted by governments, and financially sponsored in various ways. Tax deductible interest rates on mortgages are still a possibility in many countries. Why sponsor those households which are already in a fairly good housing position? Yes, maybe during election times.

Cities, local authorities, should retain ownership of their land, and not sell it to investors. And they should also buy up land when available, like in Vienna. Local authorities can then more easily plan their communities, and do not have to sell to the highest bidder – which often makes housing expensive already from the start.

Avoid the Right-to-Buy, and privatisation of social/public housing. Why transfer common assets, tax payers’ money, to private individuals?

We need mechanisms that control rents, also in the private rental sector, as long as there is an acute shortage of homes. E.g. linked to the Consumer Price Index, or tied to inflation, or mechanisms to compare rents (Mietspiegel in Germany), and rent caps like in Berlin, and now also in Paris. Need for housing subsidies, and allowances, either object (building-) oriented, or subject oriented, to primarily tenants – public and private tenants. But also provide allowances to homeowners, to make it possible to stay in the home during a period of economic difficulties. All in all…

The state, the governments, local authorities, etc, should reclaim the initiative and undertake the task of supplying all citizens with good affordable homes. There is no way around it!

The world needs more publicly owned homes – not less!
We need more political involvement in housing – not less!

We must understand affordable rental housing as a key community infrastructure. We need more construction, administration and ownership of social/public housing by governments and local authorities, or by the non-profit sector. The private sector is of course welcome to contribute – but then always with a requirement of permanent affordability. And, rents can be totally deregulated, free and market based – when we have a balanced housing sector. When that wonderful principle of supply and demand is achieved. That will be the day!

This article was originally published in Global Tenant: International Union of Tenants’ Quarterly Magazine.

Friendly Reminder: Heat requirements start Sept 15; end June 1

Posted on October 4, 2015January 13, 2024 by admin

We would like to remind everyone that starting September 15th the heat should be turned ON. Heat minimum requirements are from September 15 – June 1. The minimum heat requirement for residential units is: 68 degrees between 8:30 a.m. to 10:30 p.m., and 66 degrees from 10:30 p.m. to 8:30 a.m.

Chicago Building Code Chapter 13-196-410 states that: Every family unit or rooming unit to which heat is furnished from a heating plant used in common for the purpose of heating the various rooms of the dwelling shall be supplied with heat from September 15th of each year to June 1st of the succeeding year so that the occupants of a family unit or rooming unit may secure, without such undue restriction of ventilation as to interfere with proper sanitary conditions, a minimum temperature of 68 degrees at 8:30 a.m. and thereafter until 10:30 p.m. and 66 degrees at 10:30 p.m. and thereafter until 8:30 a.m. averaged throughout the family unit or rooming unit.

If you have no heat:

Call 311 and ask for a building inspection – or make an online request here. Write down the Service request number for your records.
Notify your landlord using Squared Away Chicago. If your landlord does not respond, click “Escalate” and send 24-hour notice.
After sending notice, print it & send by certified mail, keeping a copy for yourself.
Visit our Heat & Essential Services FAQ page for more information.
Call MTO’s Tenants Rights Hotline – 773-292-4988 – to speak to a counselor for help.

Stay warm, Chicago. Exercise your rights – housing is a human right!

Expert Webinar Series: Bed Bugs in Chicago

Posted on July 2, 2015January 13, 2024 by admin

How a Pro-Active Inspection Program Will Address Lead Poisoning

Posted on May 18, 2015January 13, 2024 by admin

Monica loves spending time at home with her family. Unfortunately, her home has not always been a safe place for her children to grow and develop. Monica’s two year old son, Kyle, was diagnosed with elevated blood lead levels due to the presence of lead in their apartment. Despite her landlord’s assurance that he fixed the problem, repeat testing revealed that Kyle and each of his seven brothers and sisters had dangerously high blood lead levels.

Concerned about her children’s wellbeing, Monica immediately began looking for a safe place for her family to live. At the same time, Monica’s doctor at Erie Family Health Center contacted the Health Justice Project, a medical-legal partnership between Erie Family Health Center and Loyola University Chicago School of Law, where an advocate was assigned to her case. Monica wanted to make sure her family could move into healthy housing without losing the Section 8 Housing Choice Voucher that helped pay their rent. To help Monica break the lease and keep her voucher, the Health Justice Project worked with an Erie Family Health Center Nurse Practitioner to submit a reasonable accommodation request to the Chicago Housing Authority (CHA). The request, which was approved by CHA, allowed Monica to transfer to an apartment where the children’s growth, neurological development, and endocrine systems would not be compromised by the presence of lead.

During the course of representation, the Health Justice Project uncovered that routine property inspections do not include lead assessments. This means that families housed through CHA programs could be approved to move into housing that presents lead poisoning risks like in the home Monica and her family were occupying. To ensure the health of Monica’s family, the Health Justice Project secured a Lead Hazard Home Test from the Chicago Department of Public Health in Monica’s new home. Test results showed no threat of lead exposure in the new apartment and Monica and her children were able to move in immediately.

When the Health Justice Project advocate called Monica a few weeks later to check in, she immediately noticed a change in Monica’s demeanor, “Every time I had spoken to her before, she sounded stressed and worried and preoccupied. But this time, she was really happy about the situation because she was finally in her new place and she knew that lead wasn’t a hazard anymore.” Unfortunately, Monica is one of the many tenants who experience the negative health effects caused by unsafe and unhealthy housing in Chicago. Lead poisoning causes irreversible damage to the brain and nervous system development, which may result in learning disabilities, behavioral problems, developmental delay, seizures, and comas. Ultimately, these health conditions can lead to other social implications including academic failure, juvenile delinquency, and high blood pressure.

If Monica’s home had been inspected prior to their move-in date, her children could have avoided the lead exposure altogether. Instead, because of a lack of healthy housing policies, she and her children were exposed to dangerous levels of lead for years. Many cities across the United States are adopting best practices to avoid the health-harming effects and social implications of unsafe housing. We want Chicago to join in to help create and maintain a healthy housing stock for all our communities. The Chicago Healthy Homes Inspection Program is an initiative designed to enforce building code standards which will protect renters from health hazards in their home. To protect your own family, and other families from the negative effects housing can have on their health.

Sign the CHHIP Petition

If you are having Healthy Homes issues in your apartment, contact MTO’s Hotline for assistance at 773-292-4988, or notify your landlord directly online at Squared Away Chicago.

If you would like to join the CHHIP campaign, contact Sheila at 773-292-4980 ext 231, or via email at sheilas@tenants-rights.org.

SRO Preservation Ordinance

Posted on March 16, 2015January 13, 2024 by admin

ORDINANCE

WHEREAS, The City of Chicago is a home-rule unit of government under Article Vll, Section 6(a) of the 1970 Constitution of the State of Illinois, and, as such, may exercise any power and perform any function pertaining to its government and affairs; and

WHEREAS, The City’s home-rule authority includes the power to enact ordinances and regulations aimed at preserving safe, decent, and affordable housing in Chicago; and

WHEREAS, The City Council has determined that single-room occupancy buildings (SROs) and residential hotels are an essential component of the City’s affordable housing stock, and that these forms of housing are increasingly scarce due to sale and other market forces; and

WHEREAS, The loss of these effectively irreplaceable forms of affordable housing will likely force low-income households into homelessness, a dire outcome that will add to the already crushing burden on public and non-profit agencies that provide the homeless with protective care, social services, health care, psychological counseling, nutritional programs, and other necessary support; and

WHEREAS, For these reasons, the City has a vital interest in maintaining existing affordable housing by discouraging the conversion and demolition of SROs and residential hotels; and

WHEREAS, The City therefore expresses a firm commitment to make resources available, between now and the end of the year 2018, to preserve no less than 700 units of affordable housing for very and extremely low-income Chicagoans, including SRO and residential hotel units, by implementing an aggressive strategy centered on encouraging owners to participate in a variety of incentive programs or to cooperate in the efforts of preservation buyers to acquire such properties; and

WHEREAS, In addition to this commitment on its own behalf, the City recognizes the need to enact new legal requirements tailored to preserve and protect Chicago’s existing SROs and residential hotels; now, therefore,

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO: SECTION

1. The recitals set forth above are incorporated herein by reference and made a part hereof. SECTION

2. Title 5 of the Municipal Code of Chicago is hereby amended by adding a new chapter 5-15, as follows:

CHAPTER 5-15

SINGLE-ROOM OCCUPANCY AND RESIDENTIAL HOTEL PRESERVATION ORDINANCE

5-15-010 Title and purpose.

This chapter shall be known and may be cited as the “Single-Room Occupancy and Residential Hotel Preservation Ordinance,” and shall be liberally construed and applied to achieve its purpose, which is to promote the public welfare by preserving single-room occupancy buildings and residential hotels, thereby sustaining the availability of affordable housing in neighborhoods throughout Chicago. The legislative intent of this chapter is to advance the City’s vital interests in reducing homelessness and maintaining an economically diverse population.

5-15-020 Definitions.

For purposes of this chapter, the following definitions apply:

“Affordable housing” means housing where the residents pay no more than 30% of their adjusted gross monthly household income in rent.

“Commitment Option A.” “Commitment Option B.” and “Commitment Option C” mean the preservation fee calculation mechanisms set forth in Sections 5-15-040 and 5-15-050.

“Conversion” means any action that transforms all or part of a covered property into any type of use, residential or non-residential, that does not fall into the category of covered property.

“Covered property” means any single-room occupancy building, single-room occupancy unit, residential hotel, or residential hotel unit, as well as the land upon which any single-room occupancy building or residential hotel sits, in the City of Chicago.

“Demolition” means any action resulting in the complete or partial, interior or exterior, destruction of a covered property, or the combination of two or more units in a covered property to make a larger unit, or any other action that results in the reduction of the number of units in a covered property.

“Extremely low-income” means those individuals and families whose gross household incomes are between 0 and 30 percent of the median gross household income for the Chicago region, as determined by the Secretary ofthe United States Department of Housing and Urban Development, with adjustments for smaller and larger families.

“Owner” has the meaning ascribed to that term in Section 13-4-010 of the Municipal Code of Chicago.

“Residential hotel” means any building or structure kept, used, maintained, or advertised or held out to the public, as of September 10. 2014. to be an inn, hotel, motel, family hotel, apartment hotel, lodging house, or other place where furnished sleeping or rooming accommodations are made available for hire or rent, with or without meals, and in which seven or more sleeping rooms are used or maintained for the primary residence of guests, lodgers, or roomers who reside in the property for at least 32 consecutive days, and pay rent to the owner.The term “residential hotel” does not include any hospital, convent, monastery, extended care facility, asylum, not-for-profit home for the aged, temporary overnight shelter, transitional shelter or residence, domestic violence shelter or residence, community home, or dormitory owned and operated by an elementary school, high school, or institution of higher learning. For purposes of this definition, a person is not a guest, lodger, or roomer if his or her employer pays, directly or through reimbursement, the costs of his or her lodging.

“Residential hotel unit” means a room within a residential hotel used as, or intended to be used as. a living space by guests, lodgers, or roomers who reside in the property.

“Single-room occupancy building” and “single-room occupancy unit” have the meanings ascribed to those terms in Section 13-4-010 of the Municipal Code of Chicago.

“Subsidized affordable housing” means affordable housing where individuals and families reside and pay rent to the owner with the benefit of governmental or charitable rental subsidies, rental assistance payments, or other housing assistance payment contracts, which may create a third-party right to the tenancy.

“Unsubsidized affordable housing” means affordable housing where individuals and families reside and pay rent to the owner without the benefit of any governmental or charitable rental subsidies, rental assistance payments, or other housing assistance payment contracts.

“Very low-income” means those individuals and families whose gross household incomes are between 30 and 50 percent of the median gross household income for the Chicago region, as determined by the Secretary of the United States Department of Housing and Urban Development, with adjustments for smaller and larger families.

5-15-030 Preservation fees.

The amount of any preservation fee remitted pursuant to this chapter shall be calculated by the commissioner of planning and development, and the funds shall be utilized for the development, improvement, and preservation of single-room occupancy buildings and residential hotels. The amount of such fees shall be adjusted annually based upon the United States Department of Labor, Bureau of Labor Statistics’s Consumer Price Index for all Urban Consumers for the Chicago metropolitan area, or, if this index no longer exists, some other comparable index, selected by the commissioner of planning and development in his reasonable discretion. The City shall establish and promote a process for owners and purchasers of covered properties to apply for financial incentives in exchange for entering into binding land-use agreements to preserve the properties as single-room occupancy buildings and residential hotels.

5-15-040 Conversion or demolition of covered properties – prerequisites.

The department of buildings shall not process any permit allowing the conversion or demolition of a covered property. or any new development on the site of a demolished covered property. until the property’s owner has filed, and the commissioner of buildings granted, an application for clearance. The commissioner of buildings shall prescribe the form of this application, and shall not grant an application unless the owner meets the requirements described in either subsection 5-15-040(a) or subsection 5-15-040(b).

(a) In lieu of proceeding pursuant to subsection 5-15-040(b). the owner shall enter into a binding land-use agreement with the City: (1) providing that the proposed project will create and/or retain at the property a number of units equal to a percentage of the number of units in the existing property as subsidized or unsubsidized affordable housing for very and extremely low-income individuals and families; and (2) agreeing to maintain those units as subsidized or unsubsidized affordable housing for very and extremely low-income individuals and families for a period of not less than 20 years. If the committed percentage is less than 20%. the owner shall also remit to the City a preservation fee in the amount of 20% of the units minus the committed percentage of units times $200.000 (as adjusted pursuant to Section 5-15- 030). For example, if the owner of a 100-unit building commits a number of units equal to 15% of the property’s units, he shall remit to the City a preservation fee in the amount of $1,000.000: 20% of 100 (i.e.. 20) minus 15% of 100 (i.e.. 15) equals five: five times $200,000 equals $1,000,000. For purposes of this chapter, this option shall be referred to as “Commitment Option A.”

(b) In lieu of proceeding pursuant to subsection 5-15-040(a). the owner shall remit to the City a preservation fee in the amount of 20% of the number of units in the existing property times $200.000 (as adjusted pursuant to Section 5-15-030). For example, if the owner of a 100- unit building proceeds under this subsection 5-15-040(b). he shall remit to the City a preservation fee in the amount of $4.000.000: 20% of 100 (i.e., 20) times $200,000 equals $4,000.000. For purposes of this chapter, this option shall be referred to as “Commitment Option B.”

5-15-050 Sale or transfer of covered properties – prerequisites.

Before selling or otherwise transferring ownership of a covered property. the owner shall meet the requirements described in either subsection 5-15-050(a) or subsection 5-15-050(b).

(a) (1) The owner may choose to:

(A) provide to the department of planning and development by first class mail, and to the residents of the property by hand delivery and first class mail, at least 180 days’ notice of the proposed sale or transfer of the property:

(B) allow the property’s residents or any representative of the residents 180 days following the date of notice to tender an offer to purchase the property: and

(C) upon receiving any such offer, engage in good-faith negotiations, during the remaining portion of the 180-day period described in subsection 5-15-050(a)(1)(B), towards a purchase and sale agreement with the offering party.

(2) If the owner accepts an offer tendered and negotiated in the manner described in subsection 5-15-050(a)(1). then the owner shall include in the contract for sale or transfer a clause whereby the purchaser agrees to maintain, for a period of not less than 20 years, a number of units equal to at least 33% of the current number of units at the property as subsidized or unsubsidized affordable housing for very and extremely low-income individuals and families.

(3) If the owner receives an offer and meets the requirement of negotiating in good faith, as described in subsections 5-15-050(a)(1)(B) and (C), but does not reach a purchase and sale agreement with the offering party, then the owner shall be allowed a period of 60 days following the end of the 180-notice period described in subsection 5-15-050(a)(1)(A) within which to sell or transfer the property to any other party. If an owner sells or transfers a property pursuant to this subsection 5-15-050(a)(3). he shall include in the contract for sale or transfer a clause whereby the purchaser agrees to comply with either Commitment Option A or Commitment Option B. Beginning on the 61st day following the end of the 180-day notice period described in subsection 5-15-050(a)(1)(A). the owner shall not sell the property without either repeating the process described in subsection 5-15-050(a)(1) or meeting the requirements in subsection 5-15-050(b).

(b) In lieu of proceeding pursuant to subsection 5-15-050(a), the owner may opt out of the right-to-purchase process described in that subsection by remitting to the City a preservation fee in the amount of 30% of the number of units in the property times $200.000 (as adjusted pursuant to Section 5-15-030). For example, if the owner of a 100-unit building proceeds under this subsection 5-15-050(b). he shall remit to the City a preservation fee in the amount of $6,000,000: 30% of 100 (i.e., 30) times $200.000 equals $6.000.000. For purposes of this chapter, this option shall be referred to as “Commitment Option C.”

5-15-060 Anti-displacement and relocation requirements.

(a) Each resident of a covered property scheduled to be demolished, converted, or sold or otherwise transferred, who has resided in the property for at least 31 consecutive days preceding the date the owner initiates any of the processes described in Sections 5-15-040 and 5-15-050, shall be considered a long-term resident. Each owner of a covered property who undertakes any of the processes described in Sections 5-15-040 and 5-15-050 in a manner that will result in the displacement of residents shall submit a list of all long-term residents to the commissioner of planning and development and, where applicable, to the purchaser of the property.

(b) In situations where a covered property is scheduled to be converted, demolished and replaced, or sold or otherwise transferred in a manner that results in the displacement of residents, the owner or purchaser, as applicable, shall determine which, if any, of the current income-eligible and lease-compliant long-term residents wish to return to the property. If the number of affordable units scheduled to be retained is less than the number of long-term residents wishing to return, then the owner or purchaser, as applicable, shall determine via lottery which of those residents to invite to return to the property.

(1) In situations where conversion or construction renders the property temporarily uninhabitable, the owner shall arrange for comparable temporary accommodations, as defined by the commissioner of planning and development, for each resident who is invited and intends to return to the property. as well as all reasonable moving and related expenses, not to exceed one month’s rent (or the amount of rent the resident has paid over the most recent 30 days, if rent is not paid on a monthly basis).

(2) In all cases under this subsection 5-15-060(b). the owner or purchaser, as applicable, shall refund to each resident who is not invited to return to the property any security deposit, any interest due on the security deposit, and all prepaid rent. In addition, the owner or purchaser as applicable, shall pay each displaced long-term resident a one-time relocation assistance fee in the amount of the greater of $2.000.00 or three months’ rent (or three times the amount of rent the resident has paid over the most recent 30 days, if rent is not paid on a monthly basis). The owner or purchaser, as applicable, shall also give each displaced long-term resident the option of placement on a waitlist for an affordable housing unit in the property.

(c) In situations where a covered property is scheduled to be sold or otherwise transferred pursuant to the terms described in subsection 5-15-050(b), the owner shall refund each resident’s security deposit, any interest due on the security deposit, and all prepaid rent, and shall pay each long-term resident a one-time relocation assistance fee in the amount of $10.600.00.

5-15-070 Change in terms of rental, lease, or occupancy agreements.

The owner of a covered property shall hand deliver to each resident written notice of any change in the terms of that resident’s rental, lease, or occupancy agreement, including changes in the frequency or amount of payment for rent, occupancy. or other housing purposes. The timinq of this notice shall be determined by the resident’s existinq rental, lease, or occupancv aqreement. whether written or oral. For example, if a resident pays rent on a weekly basis, he is entitled to one week’s notice pursuant to this section. A rent increase imposed in compliance with this section shall not constitute retaliatory conduct as contemplated in Section 5-12-150 of this Code, so lonq as the increase is imposed on a property-wide basis.

5-15-080 Provision of room keys to residents.

The owner of a covered propertv shall provide each resident a copy of the key to his room. If an owner violates this section, the affected resident shall be entitled to $2.000.00 or twice the monetary value of the damaqes sustained, whichever is qreater

5-15-090 Enforcement.

(a) Any resident of a covered property who is injured by a violation of this chapter may institute injunctive, mandamus, or any other appropriate legal action seeking enforcement. A resident who institutes a leqal action pursuant to this chapter and is adiudqed to be a prevailinq partv mav be awarded attorney’s fees and court costs.

(b) If the City initiates or joins any enforcement action against an owner who violates or resists enforcement of this chapter, the owner shall be fined not less than $200.00 nor more than $500.00 for each offense upon which a finding of liability is entered. Each day a violation continues shall constitute a separate offense.

(c) If the owner of a covered property sells the property before remitting to the City a preservation fee required under this chapter, both the owner and purchaser shall be jointly and severely liable for the payment of such fee.

SECTION 3. This ordinance shall take effect 10 days after its passage and publication.

Tenants Avoid Homelessness On Thanksgiving

Posted on December 4, 2014January 13, 2024 by admin

The Metropolitan Tenants Organization is the “go to” organization for thousands of Chicago renters who face serious housing problems. Every year MTO answers their call and works with individuals and tenant associations to assert their right to housing that is decent, affordable and accessible. We cannot do this work without you.

Just ask Janet Tidwell, a tenant at 2022 S. Throop, about the role MTO played in making her Thanksgiving holiday a happier one. Since April 2014, she and her one-year old son have been living in the building, which had been illegally converted to a SRO. On November 18, just 10 days before Thanksgiving, the owner of the building distributed letters to each of the tenants. The letter stated that the City of Chicago was closing the building and all the residents must vacate the premises within one week.

Ms Tidwell, who was formerly homeless, believed the SRO would provide her and her son with sustainable and affordable housing. Since moving-in, her life had stabilized, but then the landlord suddenly told her to go. “I was surprised and worried when I saw the Notice to Vacate from the city. It was cold; it was Thanksgiving; and my entire building was faced with the reality of becoming homeless. How could this happen?” She went on, “Six days was too soon to find somewhere to go with my son without any money for a security deposit, movers, and a moving truck. I was so upset with the owner and management because they had done nothing.”

The building’s owner had known since the end of September about the impending closure but chose not to inform the tenants of the court order until a moving date was upon them. The owner also refused to pay the tenants $1,500 in court-ordered relocation assistance. With the help of MTO, the tenants set a meeting with the owner on Friday, November 21^st just days before the police were to come and vacate the building. The tenants hoped to convince the owner that without some money, they could not move on such short notice. At the meeting in front of 20 people, the owner promised to return their security deposit and October’s rent on Saturday. Saturday came and went, as did Sunday, but these low-income renters never received the promised money.

The tenants stood together. They refused to make themselves homeless. They asked the City of Chicago to give them more time so that they could find housing with the dignity and resources they deserved. The City agreed and gave the tenants an additional month to find housing and engaged a receiver to pay each household $1,500.

In the end, the tenants at 2022 S. Throop all enjoyed Thanksgiving in their home. Your financial support made a difference in the life of Janet Tidwell and her one year old son. They did not have to return to a shelter.

MTO’s efforts go beyond helping individual tenants secure housing. MTO organizes tenants to pass better laws. You can also be a part of our advocacy work, which looks to solve Chicago’s affordable housing crisis. The situation faced by Ms Tidwell and the other tenants residing at 2022 S. Throop Street are not unlike the situations faced by thousands of tenants across metropolitan Chicago. Too many renters are living in substandard conditions, paying too much for rent, or are unable to move into units because of accessibility issues. Together, with low-income renters, we can confront these barriers and change Chicago’s housing laws and policies.

With your support over the past years, MTO has succeeded in winning laws to prevent discrimination against Section 8 voucher holders, protect tenants in foreclosure, and guard against bed bugs. Obviously, more is needed. Decent, safe and accessible housing should be standard for every neighborhood and all tenants because without housing it is nearly impossible to succeed and find a job, get a good education or stay healthy.

As you make your decisions about end of the year giving, we invite you to help us help tenants like Janet Tidwell. You can help ensure that everyone has housing that is decent, that it is affordable and that it is accessible. You can help make housing a human right. Join the movement today.

(Un)Fair Market Housing In Chicago: What’s A Mother To Do?

Posted on November 13, 2014January 13, 2024 by admin

The market is not working. Just ask Marcene Smith of Chicago’s south side. She will tell you the housing market is broken and is not working for her or many other Chicago renters. She lives with her son, who is paraplegic, in a three-flat. They pay $700 a month in rent. She is desperate because her son is returning from the hospital after developing a severe skin allergy from the mold in her basement. Her son will be coming home to the same environment that made him ill.

For Ms. Smith and many others like her, there are few options. Together she and her son have an income of $1,900 a month. This makes her apartment barely affordable. The apartment’s owner knows of the mold problem but, like Ms. Smith, is low-income and does not have the money to make the repairs.

The city has inspected the building and cited the owner. The basement reeks of mold which covers the floor and walls. The City’s building inspectors refused to go into the basement because of the health hazard it presented. This is a lose-lose situation for the tenant, the owner and the surrounding community. As for the future of this building, like so many others the writing is on the wall.

The city may close the building or the tenant will leave. In either case, the conditions in the building will continue to deteriorate. Eventually, the building will be torn down leaving another empty lot in area already filled with abandoned buildings and vacant lots. Ms. Smith and her son will move to an area further from the City center, further from transportation and the resources they need. The lot will be purchased by an investor who will sit on the property and wait for the “market” to improve to build anew.

For many banks, investment companies and large realtors, the housing market is working just fine. For numerous renters the private market is broken and cannot provide safe, decent and accessible housing at affordable costs. There are no easy answers for Ms. Smith and her son, or the thousands of residents who confront their own housing crisis each day.

The Metropolitan Tenants Organization believes that building a solution means starting from the basic premises that housing is a right. From this foundational value, it will be possible to build policies which will ensure that housing is decent and well maintained; that is accessible to the many differently-abled; and that it will be affordable to the rich or poor and everyone in-between.

In the meantime, if you are a landlord and can help Ms. Smith, please let us know.

Pack City Hall for a Chicago For All, July 30th!

Posted on July 24, 2014January 13, 2024 by admin

Please join us for a press conference on Wednesday, July 30th (the same day the City Council will vote on the proposed SRO Moratorium), to announce the introduction of the Keeping The Promise Ordinance. This much-needed ordinance demands accountability at the Chicago Housing Authority, something we know is severely lacking. Please come out and show your support for public and affordable housing in Chicago!

Bed Bugs – Sample Letter

Posted on June 3, 2014January 13, 2024 by admin

This letter applies to residents within the city of Chicago only who are covered under the Residential Landlord Tenant Ordinance (RLTO). Please see the Exceptions to the RLTO to ensure the law applies to you. For tenants in suburban Chicagoland, please click here for the law as it applies in your town.

Keep Chicago Renting Ordinance (KCRO)

Posted on May 5, 2014January 13, 2024 by admin

What is the Keep Chicago Renting Ordinance?

The City of Chicago enacted the Protecting Tenants in Foreclosed Rental Property Ordinance, commonly known as the Keep Chicago Renting Ordinance (KCRO), in response to the harmful effect of the mortgage foreclosure crisis on renters in Chicago. The ordinance aims to keep renters in their homes by requiring new building owners to offer bonafide tenants a lease renewal or $10,600 in relocation assistance. You can view the full text of the ordinance by scrolling down or clicking here.

The KCRO Requires New Owners to Serve Tenants with Written Notice of Change in Ownership Notice of change in ownership must be provided within 21 days after a person becomes an owner or within 7 days of determining the tenant’s identity. Notice must be delivered to known tenant or household member 13 years or older or mailed. In addition, notice must be posted on the primary entrance of each foreclosed property . Chicago Municipal Code, § 5-14-040(a),(b)

The Ordinance requires that the notice be given in English, Spanish, Polish and Chinese. The Lawyers’ Committee for Better Housing (LCBH) has translated the notice and those translations may be used by owners to inform their tenants in accordance with the law. The notices can be downloaded by clicking here.

The KCRO Requires Notice Before the Owner Can Collect Rent
Until the owner serves notice under § 5-14-040, the owner cannot collect rent or terminate a tenant’s lease for failure to pay rent. Chicago Municipal Code, § 5-14-040(c).

The KCRO Requires Owners to Renew or Extend Leases or Pay Substantial Relocation Assistance
The Ordinance requires the owner of a foreclosed rental property to either:

offer the Qualified Tenant a renewal or extension of their lease with a rent increase of no more than 2%; or
pay the tenants a relocation fee of $10,600 within seven days of the Qualified Tenant vacating the unit. Chicago Municipal Code, § 5-14-050(a).

If the owner elects to offer a lease, the owner must continue to offer renewals or extensions (with rent increases of no more than 2% per year) until the owner sells the property to a “bona fide third-party purchaser.” Chicago Municipal Code, § 5-14-050(g).

What Tenants Are Entitled to Protections Under the Ordinance?
The Ordinance protects “Qualified” tenants who have a bona fide (valid) lease or rental agreement. The definition of a bona fide lease or rental agreement includes all agreements, whether written or oral, as long as:

The tenant is not the mortgagor, or the child, spouse, or parent of the mortgagor;
The lease or tenancy was the product of an arm’s-length transaction; and
The rent required under the lease or tenancy is not substantially less than fair market or is subsidized by the government. Chicago Municipal Code, § 5-14-020.

In other words, leases entered into with children, parents, or the spouse of the former owner; leases where both parties did not negotiate in their own best interest; and leases with substantially less than fair market rent are not considered bona fide, and tenants without bona fide leases are not qualified tenants under the Ordinance.

Which Property Owners Are Subject to the Ordinance?

any person who acquires ownership of a property pursuant to a judicial sale of a foreclosed rental property, after the sale has been confirmed by the court and any special right of redemption has expired; or
mortgagees that acquire ownership of a property through foreclosure or a deed in lieu of foreclosure. Chicago Municipal Code, § 5-14-020.

Which Property Owners Are Not Subject to the Ordinance?

an owner of a foreclosed rental property who was the owner prior to the effective date of the Ordinance;
a person appointed as a receiver and issued or assigned, a Receiver’s Certificate; or
a bona fide not-for-profit in existence continuously for a period of five years immediately prior to becoming the owner of the rental unit and whose purpose is to provide financing for the purchase or rehabilitation of affordable housing. Chicago Municipal Code, § 5-14-030.

Penalties
If an owner fails to comply with § 5-14-050 (Tenant relocation assistance), the qualified tenant shall be awarded damages in an amount equal to two times the relocation assistance fee. Chicago Municipal Code, § 5-14-050(f). Penalties for violation of the KCRO are significant enough that LCBH expects substantial compliance.

NEED ASSISTANCE? Call the LCBH’s free Tenants in Foreclosure Help Line: 312-784-3507 or call our free Tenants Rights Hotline, Monday-Friday between 1:00pm – 5:00pm: 773-292-4988.

To find out if your building is in foreclosure, click here and follow the step-by-step instructions.

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The “Keep Chicago Renting” Ordinance

Section 1. Title, Purpose and Scope.

This chapter shall be known and may be cited as the “Keep Chicago Renting” ordinance and shall be liberally construed and applied to promote its purposes and policies. It is the purpose of this ordinance, in order to protect, maintain, and improve foreclosed rental property, preserve rental housing stock, mitigate losses to area property values, and avoid neighborhood destabilization due to foreclosure, to prevent vacant foreclosed residential buildings and preserve tenancies in these properties. Except when this ordinance conflicts with the statutory or regulatory provisions governing federal housing subsidy programs, including, but not limited to, public housing and project-based Section 8 housing operating pursuant to 42 U.S.C. § 1437 et seq., the provisions of this ordinance shall apply to and regulate ei;er3′ foreclosed property in which occupants hold possession of dwelling units. The rights, obligations and remedies established by this ordinance shall be cumulative and in addition to any others available at law or in equity. Nothing in this ordinance shall affect a landlord’s obligation to provide notice of termination of tenancy as required under applicable laws governing actions for possession.

Section 2. Definitions.

Whenever used in this ordinance, the following words and phrases shall have the following meaning:

(a) “Dwelling unit” means a structure or the part of a structure used as a home, residence or sleeping place by one or more persons who maintain a household, together with the common areas, land and appurtenant buildings thereto, and all housing services, privileges, furnishings and facilities supplied in connection with the use or occupancy thereof, including garage and parking facilities; except that this ordinance shall not govern dwelling units described in Subsections 5-12-020 (b) and, (c) of this Code.

(b) “Foreclosed property” means any property for which legal and equitable interests in real estate were terminated by a foreclosure action brought under the Illinois Mortgage Foreclosure Law (“IMFL”), 735 ILCS 5/15-1101 et seq.

(c) “Foreclosing owner” means a person or entity, or an agent acting on behalf of a person or entity that holds title in any capacity, directly or indirectly, to a foreclosed property and either (1) was a mortgagee who was a party to the foreclosure or is the subsidiary, parent, trustee, nominee or agent; or (2) is the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.

(d) “Occupant” means any person in lawful physical possession of a dwelling unit in all or part of a foreclosed property and as described under Sections 1223 and 1508.5 ofthe IMFL.

(e) “Tenant” means a person entitled by written or oral agreement, subtenancy approved by the landlord or by sufferance to occupy a dwelling unit to the exclusion of others, as defined by the Chicago Residential Landlord Tenant Ordinance (“RLTO”) in Section 5-12-030 of this Code.

(f) “Bona fide third party purchaser” means a person or entity that is not a foreclosing owner and purchases the foreclosed property from the
foreclosing owner.

Section 3. Eviction of Occupants Prevented; Exceptions.

A foreclosing owner may not maintain an action for possession, except in accordance with this ordinance or unless a binding purchase and sale agreement has been executed and is in effect for the purchase of the dwelling unit by a bona fide third party purchaser.

Section 4. Notice Requirements.

Within 21 days of taking title to foreclosed property, a foreclosing owner must notify in writing all occupants of dwelling units of the real estate using the text provided in subsection (d) of this section. This notice must be printed in English and Spanish in no less than 14 point type, on paper at least eight and one-half inches by 11 inches in size.

(a) Service requirements shall be satisfied i f the foreclosing owner has (i) posted this notice in a prominent location in the building; (ii) mailed this notice by first class mail to each unit; and (iii) has made an attempt to personally serve an occupant of each unit in the building.

(b) The Commissioner of the Department of Housing and Economic Development (DHED) shall make available for distribution, both in print and in an easily printable format on the department’s Internet website, the following notice in English with a Spanish translation that may be used to satisfy the notice requirements of this section.

(c) Compliance and Curing Noncompliance. For purposes of collecting rent or maintaining an action for possession as described in Section 5, a foreclosing owner may cure a failure to timely provide notice by providing the notice more than 21 days after the transfer of title. Curing the notice deficiency, however, shall not waive any occupant’s right to remedies as described in Section 8 of this ordinance. Additionally, a foreclosing owner shall have no right to collect back rent that accrued during the period of time that the foreclosing owner was not in compliance with the notice requirements of this section.

(d) Text of Notice Provision:

IMPORTANT NOTICE TO OCCUPANTS

City of Chicago law requires that we provide you this notice informing you of your rights as occupants of [INSERT PROPERTY ADDRESS]. This property is now owned by [INSERT NAME OF FORECLOSING OWNER]. The former owner of this property no longer owns the property because the property was foreclosed. Chicago law protects your right to remain in your home after a foreclosure. [NAME OF ORDINANCE AND CITATION]. This law protects all occupants, even if you do not have a written lease. The law states that you cannot be evicted just because your building was foreclosed. You do not have to pay the new owner any rent owed before the due date provided in this notice. You can only be evicted if you do not pay rent starting on the due date provided in this notice, if you commit a crime or allow someone you know commit a crime in your home, if you damage your home, or if you refuse to let the new owner inspect your home and make necessary repairs. You can only be evicted after the new owner of this building files an eviction claim in court and you are given a chance to defend yourself in front of a judge. You can only be removed from your home by personnel of the Cook County Sheriffs office with an order from the court. Your rent cannot be raised unless the new owner of this building files in court and you have had a chance to defend your current rent in front of a judge. The former owner of this building has no right to collect rent since the former owner does not own the building anymore. You should now pay your rent to the new owner of this building: [INSERT NAME, ADDRESS, AND TELEPHONE CONTACT INFORMATION OF THE FORECLOSING OWNER, THE BUILDING MANAGER, OR OTHER REPRESENTATIVE OF THE FORECLOSURE OWNER RESPONSIBLE FOR COLLECTING RENT]. Please pay your rent on the [INSERT DAY] of each month by [INSERT METHOD OF TRANSMISSION]. You are not responsible for paying any back rent owed prior to the due date provided in this notice. The new owner of this building must maintain the property including making sure the building and your unit are safe and secure, removing trash and debris, and exterminating any vermin. The owner must also make sure that heat, running water, hot water, electricity, gas and plumbing services are all available. For maintenance issues and emergencies, please contact [INSERT NAME, ADDRESS, AND TELEPHONE CONTACT INFORMATION OF THE FORECLOSING OWNER, THE BUILDING MANAGER, OR OTHER REPRESENTATIVE OF THE FORECLOSURE OWNER RESPONSIBLE FOR COLLECTING RENT]. If you do choose to move, you are entitled to collect your security deposit from the new owner of this building. If the new owner of this building tries to evict you, raise your rent, refuses to return your security deposit, or fails to maintain your building, you may be eligible to collect damages. Please contact a lawyer, a legal aid or housing counseling agency, or the Coordinated Advice & Referral Program for Legal Services (CARPLS) legal aid hotline at (312) 738-9200 to discuss your rights.

Section 5. Right to Possession.

Except as described in Section 3, and except when state or federal law provides an occupant with additional or superior rights, a foreclosing owner shall have the right to maintain an action for possession of a dwelling unit against an occupant only after complying with the notice requirements of Section 4 and:

(a) thirty days have passed, an occupant has failed to pay rent, and the landlord has complied with all the applicable notice and cure periods governing eviction for nonpayment of rent, including, but not limited to, those provided by the RLTO and the Illinois Code of Civil Procedure, 735 ILCS 5/9-101 et seq. (“Forcible Entry and Detainer Act”) (hereinafter “FEDA”); or

(b) an occupant has failed to cure a breach of the lease agreement or other tenant responsibility as described in Section 5-12-040 of this Code and the landlord has complied with the applicable notice and cure periods governing eviction for breach of lease or tenant responsibilities, including, but not limited to, those provided by the RLTO and the FEDA; or

(c) an occupant violates Section 9-118, 9-119 or 9- 120 of the FEDA, and the landlord has complied with all other applicable notice and cure periods
required under these statutes; or

(d) thirty days have passed, an occupant’s bona fide lease or other rental agreement has terminated, and the foreclosing owner, by written request, has offered a lease under the same terms that were in effect at the time that the foreclosing owner took title, and the occupant has rejected that offer.

Section 6. Increase of Rent.

After complying with the notice requirements of Section 4, a foreclosing owner shall be entitled to recover rent. A foreclosing owner shall not charge an occupant of a dwelling unit a rental amount above that which the occupant had been paying for use and occupancy of the dwelling unit prior to foreclosure
without leave of court. The court may allow an increase of rent if, in an action brought by a foreclosing owner, the court finds by a preponderance of the evidence that the current rent is below market rate and an increase of rent is necessary to operate, manage, and conserve the dwelling unit. In the event that the foreclosing owner and an occupant of a dwelling unit agree to a rent increase for that dwelling unit, the foreclosing owner is excused from the requirements of this section as to that dwelling unit. Nothing in this section shall alter the terms of any lease agreement.

Section 7. Misrepresentation of Right to Possession.

It shall be unlawful for a foreclosing owner:

(a) to willfully or negligently misrepresent, by written or oral statement, the rights of the occupant or foreclosing owner regarding rightful possession of the dwelling unit;

(b) to withhold essential services, as defined under Subsection 5-12-110(f) of this Code, except that this ordinance shall also prohibit actions taken against occupants; or

(c) to interrupt occupancy as defined under Section 5-12-160 of this Code, except that this ordinance shall also prohibit actions taken against occupants.

Section 8. Defenses and Remedies.

If a foreclosing owner acts in violation of this ordinance, the occupant shall have a complete defense against the foreclosing owner in any action for possession. If an occupant in a civil legal proceeding establishes that a violation of this ordinance has occurred, the occupant shall be entitled to recover
$5,000.00 in damages or actual damages, whichever is greater, and reasonable attorney’s fees and costs. Each violation of this ordinance shall constitute a
separate offense.

For more information or assistance, contact our Foreclosure Organizer, Saul Garcia at 773-292-4988 ext 247 or at saul@tenants-rights.org