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Illinois Court Rules Chicago Post-Foreclosure Eviction Protection Ordinance Unconstitutional
REO DEPARTMENTS and other industry participants preparing for the resumption of residential foreclosure sales in Illinois may have one less compliance headache to deal with after an Illinois appellate court ruled that a controversial Chicago ordinance—Chicago's Protecting Tenants in Foreclosed Rental Properties ordinance, commonly known as the Keep Chicago Renting Ordinance ("KCRO") —is unconstitutional.
DOWNLOAD PDF FILESIllinois Supreme Court Amendments to Order M.R. 30370
On July 15 and 29, 2021, the Illinois Supreme Court amended Order M.R. 30370 concerning residential evictions in anticipation of the surge in filings that was expected when the Governor's eviction moratorium expired on August 1, 2021. These amendments provide for a one-month triage period in which the judiciary will focus on referring newly filed eviction cases to programs designed to help avoid eviction and directing landlords and tenants to State and local resources that may be of assistance to them. Cook County has already been doing this with the implementation of the Early Resolution Program, and we anticipate that other counties will follow suit with similar programs.
READ MOREThe New Keep Chicago Renting Ordinance
On July 21, 2021, the Chicago City Counsel repealed the Protecting Tenants in Foreclosed Rental Properties Ordinance, commonly known as the Keep Chicago Renting Ordinance ("Old KCRO"), and replaced it with a new ordinance that officially adopted its predecessor's more-recognized nickname ("New KCRO"). This was done after the Illinois appellate court recently held that Old KCRO's requirement that renewal leases be capped at at 102% of the tenants' current rent violates the Illinois Rent Control Preemption Act. A copy of New KCRO is included below since Chicago has not yet updated the online version of its Municipal Code to reflect the change.
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