Prairie State Wire

Statewide rent relief could be coming to Illinois soon. 

The COVID-19 Emergency and Economic Recovery Renter and Homeowner Protection Act, introduced by state Rep. Delia Ramirez (D-Chicago), would cancel rent debt and suspend mortgage payments for those affected by COVID-19.

“We have to make housing an absolute top priority during this special session in Springfield,” Ramirez said, according to the Chicago Tribune. “If we want our families to be able to get through this pandemic, they have to have a roof over their head and not have to  decide if they’re going to purchase food or pay rent.”

The act would cancel rent debt for tenants diagnosed with COVID-19 or who have had employment interruption due to the pandemic; prevent landlords from fining residents for missed payments; compensate landlords and mortgage lenders for canceled payments through a relief fund; suspend mortgage payments for virus-affected landlords and homeowners; stop foreclosures; and prevent new eviction filings in court. The act would be in place until unemployment has returned to pre-pandemic levels and the governor's disaster declaration expires. 

State Rep. Will Guzzardi (D-Chicago) said the goal is to pass the bill through both chambers during the three days the legislature is in session. The bill could be on Gov. J.B. Pritzker's desk to sign just days before June's rent is due.

Since the stay-at-home order was enacted, Pritzker has placed a statewide moratorium on evictions. He said he cannot legally repeal the state ban on rent regulation, as it prohibits local governments from regulating rent.

The need for relief is glaring. When Chicago offered 2,000 one-time $1,000 grants to pay for rent or housing in April, 83,000 applications were received. Tenants have also formed unions and called for rent strikes.

Chicago Mayor Lori Lightfoot signed an ordinance giving grants or no-interest loans of up to $75,000 to cover lost rent for owners of affordable housing properties.

A key component of the act is targeted at mortgage lenders and landlords. Relief funds would come from the dollars the state receives from the Cares Act. 

“The scope of the problem is huge,” Guzzardi said. “We anticipate the demand will be there for sure. This problem is going to happen whether the state steps up or not. The only question is are we going to step in and give people financial assistance, or do we leave them vulnerable to eviction and foreclosure?”

State Rep. Tim Butler (R-Springfield) has proposed a separate bill that would provide rent assistance for those impacted by coronavirus if their landlords participated in the program.

The COVID-19 Emergency Rental Assistance Program Act requires landlords not to charge late fees or rental increases in exchange for receiving at least 80% of owed rent.for up to seven months.

Additional housing legislation would provide a 90-day grace period for property tax payments, waiving interest fees for late payments.