HB3510 102ND GENERAL ASSEMBLY

LRB102 14935 LNS 20290 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3510

Introduced 2/22/2021, by Rep. Edgar Gonzalez, Jr.

SYNOPSIS AS INTRODUCED:

765 ILCS 705/17 new

Amends the Landlord and Tenant Act. Provides that during and after an emergency period beginning on January 1, 2021 and ending on July 1, 2021, a landlord may not, and may not threaten to: (1) deliver a termination notice of a rental agreement based on a tenant's nonpayment balance; (2) initiate or continue an action to take possession of a rental unit based on a termination notice for nonpayment delivered on or after January 1, 2021; (3) take any action that would interfere with a tenant's possession or use of a rental unit based on a tenant's nonpayment balance; (4) assess a late fee or any other penalty on a tenant's nonpayment balance; or (5) report a tenant's nonpayment balance as delinquent to any consumer credit reporting agency. Provides that before applying payments received from a tenant or on behalf of a tenant to a tenant's nonpayment balance, a landlord shall apply the payments in a specified order. Provides that during the emergency period, the landlord may provide a written notice to a tenant stating that the tenant continues to owe any rent due. Provides that, following the emergency period, a tenant with an outstanding nonpayment balance has a 6-month grace period that ends on January 1, 2022, to pay the outstanding nonpayment balance. Provides that the tenant shall notify the landlord of the tenant's intention to use the grace period, and failure to do so entitles the landlord to recover damages equal to 50% of one month's rent following the grace period. Provides that if a landlord violates the provisions, a tenant may obtain injunctive relief to recover possession or address any other violation and may recover from the landlord an amount up to 3 months' periodic rent plus any actual damages. Makes other changes. Effective immediately.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Landlord and Tenant Act is amended by adding Sections 17 and 18 as follows:

(765 ILCS 705/17 new)

Sec. 17. Rent relief during emergency period; termination notice prohibition.

(a) As used in this Section:

"Emergency period" means the period beginning on January 1, 2021 and ending on July 1, 2021.

"Landlord" means the owner, lessor, or sublessor of a rental unit or the building or premises of which the rental unit is a part, or a person who is authorized by the owner, lessor, or sublessor to manage the premises or to enter into a rental agreement.

"Nonpayment" means the nonpayment of a payment that becomes due during the emergency period to a landlord, including a payment of rent, late charges, utility or service charges, or any other charge or fee as described in the rental agreement.

"Nonpayment balance" includes all or a part of the net total amount of all items of nonpayment by a tenant.

"Rental unit" means a structure or part of a structure for use as a commercial space by a tenant.

"Tenant" means an individual or organization entitled under a rental agreement to occupy a rental unit to the exclusion of others.

"Termination notice without cause" means a notice delivered by a landlord.

(b) During and after the emergency period, a landlord may not, and may not threaten to:

(1) deliver a termination notice of a rental agreement based on a tenant's nonpayment balance;

(2) initiate or continue an action to take possession of a rental unit based on a termination notice for nonpayment delivered on or after January 1, 2021;

(3) take any action that would interfere with a tenant's possession or use of a rental unit based on a tenant's nonpayment balance;

(4) assess a late fee or any other penalty on a tenant's nonpayment balance; or

(5) report a tenant's nonpayment balance as delinquent to any consumer credit reporting agency.

(c) Before applying payments received from a tenant or on behalf of a tenant to a tenant's nonpayment balance, a landlord shall first apply the payments, in the following order, to:

(1) rent for the current rental period;

(2) utility or service charges;

(3) late rent payment charges; and

(4) fees or charges owed by the tenant under the rental agreement or other fees or charges related to damage claims or other claims against the tenant.

(d) During the emergency period, a landlord may provide a written notice to a tenant stating that the tenant continues to owe any rent due. The notice shall also include a statement that eviction for nonpayment is not allowed before July 1, 2021.

(e) During the emergency period, a landlord may not deliver a termination notice without cause and may not file an action based on a termination notice without cause.

If the first year of occupancy would end during the emergency period, for the purposes of a termination notice without cause, the first year of occupancy is extended to mean a period lasting until 30 days following the emergency period.

(f) Following the emergency period, a tenant with an outstanding nonpayment balance has a 6-month grace period that ends on January 1, 2022 to pay the outstanding nonpayment balance.

(g) Following the emergency period, a landlord may deliver a written notice to a tenant that substantially states:

(1) the date that the emergency period ended;

(2) that if rent and other payments that come due after the emergency period are not timely paid, the landlord may terminate the tenancy;

(3) that the nonpayment balance that accrued during the emergency period is still due and shall be paid;

(4) that the tenant will not owe a late charge for the nonpayment balance;

(5) that the tenant is entitled to a 6-month grace period to repay the nonpayment balance that ends on July 1, 2021;

(6) that within a specified date stated in the notice given under this subsection that is no earlier than 14 days following the delivery of the notice, the tenant shall pay the nonpayment balance or notify the landlord that the tenant intends to pay the nonpayment balance by the end of the 6-month grace period described in subsection (f);

(7) that failure of a tenant to give notice to the landlord of utilization of the grace period described in subsection (f) may result in a penalty described in subsection (i); and

(8) that rent and other charges or fees that come due after the emergency period shall be paid as usual or the landlord may terminate the tenancy.

(h) The landlord's notice described in subsection (g) may offer an alternate voluntary payment plan for payment of the nonpayment balance, but the notice shall state that the alternate payment plan is voluntary.

(i) If a landlord gives a notice as described in subsection (g), a tenant who has an outstanding nonpayment balance as of the date listed on the landlord's notice as described in paragraph (6) of subsection (g) shall notify the landlord of the tenant's intention to use the grace period described in subsection (f) to pay the nonpayment balance. The tenant's notice under this subsection shall be actual notice or notice given by electronic means, and shall be given to the landlord by the date given in the landlord's notice as described in paragraph (6) of subsection (g).

A tenant's failure to give the notice required under this subsection to a landlord entitles the landlord to recover damages equal to 50% of one month's rent following the grace period.

(j) If a landlord violates this Section, a tenant may obtain injunctive relief to recover possession or address any other violation of this Section and may recover from the landlord an amount up to 3 months' periodic rent plus any actual damages.

Section 99. Effective date. This Act takes effect upon becoming law.