Chicago Housing Reform
Chicago policymakers continue to consider major changes to the city's rental housing laws through two competing proposals introduced this summer: Mayor Brandon Johnson's Protecting Renters Ordinance (PRO) and the recently introduced FAIR (Fair Accountability in Rentals) Ordinance. While the two proposals differ in several important respects, both would significantly reshape the regulatory landscape for housing providers.
Mayor Johnson's PRO ordinance would substantially expand government regulation of rental housing through provisions including "Just Cause" eviction requirements, expanded penalties under the Residential Landlord and Tenant Ordinance (RLTO), a citywide right-to-counsel policy, and numerous new administrative mandates. CAA believes these policies would increase operating costs, legal exposure, and regulatory complexity while discouraging investment in new and existing rental housing. At a time when Chicago faces a housing shortage, CAA continues to advocate for policies that encourage housing production and investment as the most effective long-term path to improving affordability. Please click here to view CAA’s policy brief on the PRO ordinance.
The PRO ordinance received a subject matter hearing before the City Council Committee on Housing and Real Estate, where city officials and tenant advocacy organizations provided testimony. Although no vote was taken, CAA joined other stakeholders in providing public comment and has continued meeting with alderpersons to communicate the industry's concerns and encourage members to participate in advocacy efforts.
In response to concerns raised about the PRO ordinance, Alderman Gilbert Villegas and several colleagues introduced the FAIR (Fair Accountability in Rentals) Ordinance as an alternative proposal. The FAIR ordinance removes two of the most significant provisions contained in PRO—Just Cause eviction requirements and mandatory tenant relocation payments—but retains several new regulatory requirements that CAA believes would still create additional costs and administrative burdens for housing providers.
Among its key provisions, the FAIR ordinance would establish a citywide rental registration program with no registration fee, limit security deposits to one month's rent, prohibit charging both a security deposit and a move-in fee, require fee itemization and additional payment disclosures, incorporate provisions from recently enacted Illinois legislation, require disclosure of third-party revenue management software, and create ownership tiers that affect certain regulatory requirements. The proposal would take effect on July 1, 2027.
CAA remains committed to working with Chicago policymakers to advance balanced housing policies that expand housing supply, encourage investment, and improve affordability while avoiding unintended consequences that could further constrain Chicago's rental housing market. Members will continue to receive updates as both ordinances move through the legislative process.