A Chicago ordinance passed June 5 will force purchasers of foreclosure properties to offer either rental renewals or more than 10,000 in relocation assistance
A Chicago ordinance passed June 5 will force purchasers of foreclosure properties to offer either rental renewals or more than 10,000 in relocation assistance.
The ordinance called, “Protecting Tenants in Foreclosed Rental Property” says that owners have 21 days to notify tenants that they may renew or extend their lease with an annual rent (mustn’t be higher than 2% increase from current rent) or provide the tenant with US 10,600 in relocation assistance, according to a report by Bloomberg Law.
If the property is still owned by the bank, the bank would be required to offer the same assistance.
The main reason why they have enforced this ordinance is because tenants tend to damage the property following foreclosure, said Naomi Campbell, a realtor in the Chicago, Illinois area.
Much of the time, banks simply need to give 30-to-60 day notice to vacate a tenant, regardless of their lease agreement, she said. The bank generally will cover relocation assistance, which generally includes the cost of moving, she said.
The ordinance passes on the heels of another tenant protection case that was given consideration by a Supreme Court judge Monday. In the case of Mount Holly v. Mt. Holly Gardens Citizens in Action, Inc., tenants argue that prices of rent for the redeveloped housing project in New Jersey become unaffordable for minorities that previously lived in the building, as previously reported.