Issue
On Wednesday, May 21st, Alderman Desmon Yancy (5th Ward) introduced a new version of the Just Cause eviction ordinance. The proposal would require landlords to provide a valid reason—or just cause—for ending a tenancy. Acceptable reasons include nonpayment of rent, violation of the lease agreement or a tenant’s refusal to renew the lease. Non-renewing a lease for other reasons would require landlords to provide monetary relocation assistance.
Relocation fees would range from 3 to 5 times the median rent, based on bedroom size and landlord type.
| Tenant Relocation Fee | Non-Renewal Reason |
| 5 Times Median Monthly Rent (MMR) | 1. Relative Occupancy 2. Condo Conversion 3. Significant Repair 4. Demolition |
| 3 Times MMR | 1. Non-Profit Owner 2. Owner Occupied of 6 Units or Less |
| Additional $2,500 | 1. Child 2. Person with Disability 3. Person Age 55 or Older |
Tenant Notice of Rent Increase
Additionally, the ordinance sets new notice requirements for rent increases. For tenancies of more than three years, any rent increase under 10% would require 60 days’ written notice, while increases of 10% or more would require 120 days’ notice.
If a lease renewal includes a rent increase of 10% or more, the tenant may reject the increase and provide notice of their intent to vacate the unit. For tenancies lasting more than three years, the landlord would be required to provide relocation assistance to the tenant in such cases.
Penalties
If a landlord fails to provide the required relocation assistance at least 14 days before the termination of tenancy, they would be obligated to pay the original relocation fee plus an additional penalty equal to twice the relocation amount.
Creation of Residential Rental Registry
The proposal also calls for the creation of a Residential Rental Registry. All property owners with one or more rental units would be required to register annually with the Department of Housing by January 15th. Owners who do not reside in Chicago must designate a local contact representative who resides within the city. The proposed registration fee is $100 per unit, with exemptions for properties owned by the Chicago Housing Authority, owner-occupied buildings with six units or fewer and nonprofit organizations.
Penalties for noncompliance could be severe: $1,000 per unit, per day that the unit remains unregistered. Failure to provide the required information could result in the denial of registration, effectively disqualifying the unit from being legally rented.
Landlord Reimbursement
The ordinance also includes a potential reimbursement provision through the Department of Housing. In certain cases, landlords of owner-occupied buildings with six or fewer units may qualify for a partial or full reimbursement, though the criteria for eligibility and the determination process remain unclear.
Legislative History
This concept was discussed in 2020, when negotiations led to the Fair Notice Ordinance and again in 2021 during a subject matter hearing.
Following its introduction, the ordinance was immediately referred to the Rules Committee. For the ordinance to advance, it must first be referred out of the Rules Committee and assigned to another committee, most likely the Committee on Housing and Real Estate, for further consideration.
REALTOR® staff have initiated discussions with the lead sponsor, Alderman Desmon Yancy, who has been receptive to our initial feedback. However, industry stakeholders continue to push for further dialogue to address the harmful impacts this legislation could have on property owners and the broader housing market. In the meantime, REALTOR® staff are actively lobbying aldermanic offices and distributing educational materials to underscore the industry’s strong opposition and advocate for more balanced housing policy solutions.
Our Stance
The Chicago Association of REALTORS® strongly opposes this harmful legislation. Just Cause eviction policies, while well-intentioned, reduce the quality of housing, increase eviction filings and discourage investment in rental housing (limiting available units).
Additionally, the proposed ordinance would significantly increase legal exposure and financial burdens for both property owners and the city itself. It also undermines the 2020 compromise legislation, which expanded tenant protections while balancing the concerns of housing providers.