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Help Protect Renters Impacted by the Foreclosure Crisis
You can take action on this alert by reading the information below and following the
directions at the bottom.
Current state law does not protect innocent renters in foreclosed properties.
Nationally, renters make up about 40% of the families facing the loss of their housing due to foreclosure and more than one in every five foreclosed properties is a rental property.
In Chicago, 32% of 2008 residential foreclosure filings were on 2-6 unit properties (6,571 filings), marking a 36% increase from 2007.
Under current law, renters in foreclosed properties often do not know that their building is in foreclosure frequently only learning about the foreclosure when they are told to leave the property. Likewise, renters often find themselves without any idea who owns the property, where they should be paying rent, or who to contact for repairs.
As a result, renters find themselves homeless or living in poor conditions. But a new law could maintain rental housing, prevent declining neighborhoods due to abandonment, provide tools for renters to maintain their current housing, and ensure adequate notice for renters who may need to secure new housing.
Key Provisions of HB 3863
House Bill 3863, sponsored by State Representative Will Burns (D-Chicago) and others, contains the following provisions:
Guaranteed Notice of Foreclosure to Tenants
If a receiver (or mortgagee in possession) is appointed to operate and manage the property during the foreclosure case, the receiver must notify tenants of his or her appointment and provide contact information.
After foreclosure, the lender/new owner must notify tenants that it has acquired the property and provide contact information to request repairs.
Habitability Standards
If a receiver is appointed to operate and manage the property during the foreclosure case, the receiver must maintain the property in a safe, healthful condition that is fit for occupancy and comply with the terms of state or local laws.
Likewise, the lender/new owner after foreclosure must maintain the property in a safe, healthful condition that is fit for occupancy and comply with the terms of any state or local laws.
Clarified Eviction Procedures
Tenants in foreclosed properties are given the shorter of 120 days or the length of their lease to move in an eviction proceeding under the foreclosure law, but a minimum of after 30 days the eviction order. This stay period may be shortened if the new owner can show that the tenant owes rent.
Makes clear that new owners, who want to evict tenants using the Forcible Entry and Detainer Act, rather than the Illinois Mortgage Foreclosure Law, must comply with all of the provisions of the Forcible Act, including properly terminating the renters lease or tenancy.
You can find out more about HB 3863 on the Illinois General Assembly website.
Your message will be sent to each of the following targets:
Your State Representative
A sample message appears below, which you may edit before sending.
Support HB 3863 to Protect Renters Impacted by the Foreclosure Crisis
Dear Representative,
I am writing to ask you to vote in favor of House Bill 3863, in order to protect renters impacted by the foreclosure crisis.
Under current law, renters in foreclosed properties often do not know that their building is in foreclosure frequently only learning about the foreclosure when they are told to leave the property. Likewise, renters often find themselves without any idea who owns the property, where they should be paying rent, or who to contact for repairs. As a result, renters find themselves homeless or living in poor conditions.
House Bill 3863, sponsored by State Representative Will Burns (D-Chicago) and others, contains the following provisions:
1. Guaranteed Notice of Foreclosure to Tenants
2. Improved Habitability Standards
3. Clarified Eviction Procedures
If HB 3863 becomes law, it would help maintain rental housing, prevent declining neighborhoods due to abandonment, provide tools for renters to maintain their current housing, and ensure adequate notice for renters who may need to secure new housing.
Sincerely, Your name and address here
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This Action Alert Campaign is Closed.
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