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One measure creates the Rent Control Act, which provides that no
more than 12 months a landlord may increase the rent by a rate no
greater than 15%.
Another measure amends the Mobile Home Park Act, which provides that
when a mobile home park owner notifies the manufactured home owners
in the park of a rent increase and the increase is in excess of 3%,
the mobile home park owner must provide a written justification for
the increase.
The Illinois Realtors Association lists about a half dozen pending
rent control legislation before Illinois' 103rd General Assembly.
Mike Hagenson, chair of the Neighborhood Building Owners Alliance
Rent Control Task Force, said rent control laws could lead to an
increase of rundown properties around the state.
“Landlords do not have the ability to raise rents above a certain
threshold, and so if they can’t recoup what's needed for a capital
improvement, they may not have money in their budget to continue
upkeep the units, and over time they deteriorate more and more,”
said Hagenson.
Hagenson also said rent control will prevent people from moving to
Illinois because he said new construction will cease.
“As new construction falls off a cliff, new residents will be shut
out and cities and the state won’t be able to grow their revenue
base,” said Hagenson.
The National Multifamily Housing Council notes that rent control
gained traction at the federal level with tenant advocates urging
President Joe Biden to issue an executive order mandating rent caps
on mortgages backed by Fannie Mae and Freddie Mac. They are also
tracking similar measures at the state level.
“Whether or not these measures are enacted, they will get media
attention and, as such, pose a reputational threat to the apartment
industry at a minimum,” the council wrote.
Kevin Bessler reports on statewide issues in
Illinois for the Center Square. He has over 30 years of
experience in radio news reporting throughout the Midwest.
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