16 June 20204 minute read

Chicago City Council adopts eviction protection ordinance

On June 17, 2020, the Chicago City Council passed an ordinance prompted by the coronavirus disease 2019 (COVID-19) pandemic intended to provide short-term relief to residential tenants. Landlords should take notice of new requirements and conditions associated with the filing of future eviction actions.

The State of Illinois has already issued an Executive Order imposing a moratorium on evictions and the Chief Judge of the Circuit Court of Cook County has also issued a General Administrative Order following suit. In addition, certain properties that are federally insured are under an eviction moratorium that extends until July 25.

The city ordinance essentially picks up where the Executive and General Administrative Orders leave off. The city ordinance establishes a moratorium on the issuance of any notice of termination of tenancy due to non-payment of rent for any tenant who resides in a dwelling unit. The ordinance extends for a period of 60 days after the Executive and General Administrative Orders expire (whichever one is later). The ordinance applies to all dwelling units, regardless of whether located in a large multifamily building or in an owner-operated and/or occupied building.

The ordinance provides that tenants who receive a five-day notice of non-payment of rent have the right to provide notice to their landlord within said five-day period that they have been financially affected by COVID-19, in which event a seven-day period is effectively added to the original five-day period before an eviction action can be filed.

During the seven-day “negotiation” period, the landlord must make reasonable attempts to contact and engage in good faith negotiations with the tenant to reach a mutually satisfactory agreement for repayment of the unpaid rent. The ordinance details examples of good faith on the part of the landlord and requires that the terms of the agreement if repayment is required must allow for the repayment of missed rent to be amortized over at least two months for every one month of missed rent.

Finally, if the seven-day negotiation period applies and the landlord files an action in Circuit Court to evict the tenant for unpaid rent, the landlord must plead that the landlord made reasonable attempts to negotiate an agreement in good faith and the tenant may raise as an affirmative defense to an eviction action filed during the moratorium that the landlord failed to comply with the terms of the ordinance, including the failure to negotiate in good faith with the tenant to reach a mutually satisfactory agreement pertaining to unpaid rent.

This ordinance creates an obligation on the part of a landlord to provide notice to tenants of their right to give the COVID-19 Impact notice and thereafter to comply with the terms of the ordinance or risk an adverse judgment in the Circuit Court of Cook County on an eviction case.

For more information about this ordinance, contact any of the members of the Chicago Land Use Team at DLA Piper:

Richard F. Klawiter
Theodore J. Novak
Paul W. Shadle
Mariah F. DiGrino
Katie Jahnke Dale
Liz Butler
John Gholar

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This information does not, and is not intended to, constitute legal advice. All information, content, and materials are for general informational purposes only. No reader should act, or refrain from acting, with respect to any particular legal matter on the basis of this information without first seeking legal advice from counsel in the relevant jurisdiction.
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