Post-Foreclosure Landlords BewareThe relatively new Keep Chicago Renting Ordinance (KCRO) was the subject of an appellate case, Wells Fargo Bank v. Volneat Vanette McCondichie, released on March 31, 2017. Readers will recall that the ordinance requires the first party that takes over a post-foreclosure property, under most circumstances, to either allow the tenants to continue with their lease or to pay a relocation fee of $10,600 to the tenants who vacate.
So, we’ve discussed notices, relocation assistance/rent control, and registration as we broke down the Keep Chicago Renting Ordinance. Today, we will wrap things up by addressing the various ways the law allows for compliance and, more directly, non-compliance.
Okay, so we have gone through the notice provisions and the relocation assistance portions of the brand new Keep Chicago Renting Ordinance. Today, we will address the section of the law dealing with registration requirements for foreclosed rental properties under 5-14-060 of the Chicago Protecting Tenants in Foreclosed Rental Property Ordinance.
Welcome to day three of our series on the new Keep Chicago Renting Ordinance. Yesterday, we discussed the various notices that needed to be provided under the new law. Today, we will take a look at the provisions dealing with tenant relocation assistance found in section 5-14-050 of the Chicago Protecting Tenants in Foreclosed Rental Property Ordinance.
Chicago’s new “Protecting Tenants in Foreclosed Rental Property Ordinance” consists of a number of parts. The law applies to certain foreclosed properties within the City of Chicago. Sections 5-14-020 and 5-14-030 help owners figure out if the law applies to them. Today, in part one of my short-series on the law, I will focus on the notice requirements. Section 5-14-040 sets forth the requirement that an owner, as defined by the ordinance, provide a certain notice to tenants within 21 days after becoming the owner of a foreclosed rental property.
Per the City of Chicago Department of Buildings, the “Keep Chicago Renting” Ordinance has gone into effect as of September 24, 2013. As such, the law deserves to be reviewed. While it is pretty rare that the “everyday” landlord is purchasing a property at a foreclosure auction, I think it is a good exercise to go through because the ordinance points to the tenor of the City of Chicago toward tenants (protectionist) and because it is a good stepping off point for the other state and federal laws that protect tenants. As such, I’ll touch on one aspect of the ordinance every day beginning tomorrow. The schedule will be as follows:
On August 21, 2013, Governor Quinn signed into law a bill passed by the Illinois Legislature this past June providing additional protections to tenants affected by foreclosures. The law amends the Illinois Mortgage Foreclosure Act and goes into effect in 90 days. Should people care? Probably not right now.
The main provision of the law is that
In a June 28, 2013 ruling, the second division of the Illinois Appellate Court for the First District reversed a lower court ruling granting summary judgment to a foreclosing bank evicting a tenant who had a bona fide lease. In Fifth Third Mortgage Company v. Foster, a foreclosing bank served a 90 day notice on an occupying tenant pursuant to section 702(a)(2) of the Federal Protecting Tenants at Foreclosure Act (PTFA) stating that the tenant would have to vacate within 90 days unless the tenant provided evidence to the landlord that the tenant was a bona fide tenant under the PTFA.
Well, what is done is done. The City Council overwhelmingly passed the “Keep Chicago Renting” law. WBEZ reported that the Aldermen voted 45-4 in favor of the measure (text can be found here). Affected tenants will have rights to rent controlled leases or a bonanza of housing relocation funds. Housing activists are celebrating their “victory” … Read more
The Chicago Tribune is reporting that the Keep Chicago Renting Ordinance has passed out of committee and will be voted on by the City Council on June 5. The text of the ordinance has been changed slightly to reduce the originally proposed relocation payment of $12,000 to $10,600. The aldermen seem to believe that this … Read more