STATE GOVERNMENT-TECH

Creates the Multi-Unit Residential Rental Property Right of First Refusal Act. Creates a statutory right of first refusal for tenants of multi-unit residential rental properties in Illinois providing tenants, who must be organized as a formal association, the opportunity to purchase their building before or concurrent with any third-party sale. Applies to multi-unit residential rental property that is a residential building or group of residential buildings operated as one entity that contain 6 or more distinct dwelling units available for rent. Creates exceptions to which the Act does not apply, including, but not limited to, multi-unit property that is governed by the Condominium Property Act or the Mobile Home Landlord and Tenant Rights Act. Requires that, before listing a property for sale, an owner must provide a written notice of intent to sell to all tenants at least 90 days in advance by certified mail or personal delivery. Provides that upon receiving either notice, tenants, through a formally incorporated tenants' association, have 90 days to execute a purchase contract matching the owner's bona fide offer of sale. Provides that if the owner later lowers the price by 20% or more, tenants receive an additional 10-day window to match the new price if at least two-thirds of the tenants consent in writing. Provides that if tenants dispute the owner's offer as not being a bona fide offer of sale, they may request an independent appraisal within 30 days in which costs are split one-third by the tenants and two-thirds by the owner. Provides that the appraised value becomes the binding sale price unless both parties agree otherwise or the owner withdraws the offer in which case the owner must reimburse the tenants' share and is barred from re-offering without a third-party contract for 3 months. Provides that if public funds are used in the purchase, the property must be maintained as affordable housing for at least 30 years (rents capped at 60% area median income; new tenant income is capped at 120% area median income). Prohibits a property owner from (1) requiring a preemptive waiver of the right of first refusal as a condition of offering, maintaining, or renewing a lease; (2) demanding a waiver of the right of first refusal under threat of harassment or retaliation; (3) attempting to deny a tenant's ability to exercise the tenant's right of first refusal or assign their rights to a third party; or (4) attempting to deny an authorized third party from exercising the right of first refusal. Provides that any aggrieved tenant or association may bring a civil action and may be awarded treble damages, court costs, and reasonable attorney's fees. Requires the Illinois Housing Development Authority to adopt rules to implement the Act. Makes other changes.

Status

Engrossed

Passed its first chamber

Status date

Apr 17, 2026

209 days ago

Current chamber

House of Representatives

Session

2025-2026 Regular Session