Blog: Keep Chicago Renting Ordinance (KCRO)

Amanda and George Fullerton have lived in Chicago all their lives. They had recently moved into a three-bedroom apartment, which costs $850 a month, on the Southside of the city with their adult daughter. George Fullerton makes a modest living as a truck driver and is the sole breadwinner for his family (his wife and daughter are not employed). The family lived peacefully in their home and paid their rent on time. This spring Mrs. Fullerton came to LCBH with a pending eviction case. She was confused, because she had recently paid rent and was unsure of why this case was being filed.

Apparently, George and Amanda had seen someone new around the property that had informed them that there was a “new owner” and that the previous owner had gone into foreclosure. The “new owner” assured the Fullertons that he would still be renting to them. That was the first and last time they ever heard from the new owner. An attorney at LCBH was able to access the case and explained to Mrs. Fullerton that she had not properly received the compliant and court summons. LCBH informed her that the case had been filed against unknown occupants by the purchaser at the foreclosure sale.

However, Mr. and Mrs. Fullerton had been known. They had signed a lease that was still valid until the end of October with the former landlord, their name was on the mailbox, and Mr. Fullerton had recently spoken to the new owner in March.

Following is a recent letter from a client describing her experiences living in a recently foreclosed apartment building and dealing with the new bank owners. Her words resonate in a way that ours cannot. We wanted to share her letter with you, as your support is what makes our interventions in these situations possible. Thank you!

I, and most of the tenants in my bank-owned building, would have given up our rights out of frustration and fear if it were not for the services of Lawyers’ Committee for Better Housing.

We had known for some time that our building was in the process of foreclosure. But we were not worried because we knew the Keep Chicago Renting Ordinance (KCRO) required the bank to either renew our leases or pay a $10,600 relocation fee. However, our collective peace of mind began to crumble as we came to understand that the bank was neither equipped nor inclined to perform the basic duties of a landlord. Soon after, our anxiety rose even further, as the bank engaged in scare-tactics designed to persuade us to move out on our own accord (therefore circumventing the requirements of the KCRO).

Thus far, the bank has used two tactics. The first is a passive approach: they benignly neglect the responsibilities of building management. The second is more aggressive, entailing periodic eviction threats. The only reason these tactics are not working is because we are represented by Lawyers’ Committee for Better Housing.

Two years ago the Chicago City Council passed the Protecting Tenants in Foreclosed Rental Property Ordinance, commonly known as the Keep Chicago Renting Ordinance (KCRO). The KCRO applies to Chicago renters from the time of a completed foreclosure sale until the building is sold to a third-party purchaser. The ordinance provides that successors-in-interest (usually banks) to foreclosed properties must do one of two things: either offer to renew or extend leases to qualified tenants in foreclosed properties or, if the owner should choose to vacate the property, provide $10,600 in relocation assistance per household. The strong policy behind the KCRO is to allow renters, even those without a written lease, to remain in their home as long as they comply with their rental agreements. It also provides a financial incentive for banks to collect rent, or sell occupied Real Estate Owned properties (REOs), keeping them in productive use.

In 2014, 55 attorneys donated more than 3700 hours to the Pro Bono Program at Lawyers’ Committee for Better Housing (LCBH) helping families in crisis. In the process, these attorneys developed their litigation skills, learned a new area of law, created new professional relationships and most importantly MADE A DIFFERENCE in the lives of many Chicago renters! Here are some highlights from the LCBH Pro Bono Program from just the 1st quarter of 2015: