SB2818 103RD GENERAL ASSEMBLY

LRB103 37250 JRC 67370 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2818

Introduced 1/17/2024, by Sen. Rachel Ventura

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Human Rights Act. Provides that it is a civil rights violation: (1) to inquire into a person's conviction record before making a conditional offer to sell, lease, or rent real property; (2) for an owner or any other person engaging in a real estate transaction, or for a real estate broker or salesman, because of conviction record, to refuse to engage in a real estate transaction with a person or to discriminate in making available such a transaction; (3) use a conviction record as a basis to rescind a conditional offer to sell, lease, or rent real property, unless there is a substantial relationship between one or more of the previous criminal offenses and the offer made, the granting or continuation of the offer would involve an unreasonable risk to property or to the safety or welfare of specific individuals or the general public, or the use is otherwise authorized by law; and (4) for a third-party loan modification service provider, because of a conviction record to refuse to engage in loan modification services, alter the terms, conditions, or privileges of such services, or discriminate in making such services available. Provides that nothing shall prohibit: the owner of an owner-occupied residential building with 4 or fewer units from making decisions regarding whether to rent to a person based upon that person's conviction record; inquiry into or the use of a conviction record if the inquiry or use is otherwise authorized by State or federal law; and use of a criminal conviction that results in a current sex offender registration requirement or a current child sex offender residency restriction.

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 Illinois Human Rights Act is amended by changing Sections 3-102.10 and 3-106 and by adding Section 3-102.2 as follows:

(775 ILCS 5/3-102.2 new)

Sec. 3-102.2. Civil rights violations; conviction record.

(A) It is a civil rights violation to inquire into a person's conviction record as defined under subsection (G-5) of Section 1-103 prior to making a conditional offer to sell, lease, or rent real property. As used in this Section, "conditional offer" means an offer to sell, lease, or rent real property contingent on conducting a criminal history check or criminal background check.

(B) Unless otherwise authorized by law, it is a civil rights violation for an owner or any other person engaging in a real estate transaction, or for a real estate broker or salesman, because of conviction record, to:

(1) refuse to engage in a real estate transaction with a person or to discriminate in making available such a transaction;

(2) alter the terms, conditions, or privilege of a real estate transaction or in the furnishing of facilities or services in connection therewith;

(3) refuse to receive or to fail to transmit a bona fide offer to engage in a real estate transaction from a person;

(4) refuse to negotiate for a real estate transaction with a person;

(5) represent to a person that real property is not available for inspection, sale, rental, or lease when in fact it is so available, or to fail to bring a property listing to his or her attention, or to refuse to permit him or her to inspect real property;

(6) make, print, circulate, post, mail, publish, or cause to be made, printed, circulated, posted, mailed, or published any notice, statement, advertisement, or sign, or use a form of application for a real estate transaction, or make a record or inquiry in connection with a prospective real estate transaction, that indicates any preference or limitation, or an intention to make any such preference, limitation, or discrimination; or

(7) offer, solicit, accept, use, or retain a listing of real property with knowledge that discrimination in a real estate transaction is intended.

(C) Nothing in this Article shall be construed to require an owner or any other person to conduct a criminal history check or criminal background check after making a conditional offer to sell, lease, or rent real property. Unless otherwise authorized by law, it is a civil rights violation to use a conviction record as a basis to rescind a conditional offer to sell, lease, or rent real property, unless:

(1) there is a substantial relationship between one or more of the previous criminal offenses and the offer made;

(2) the granting or continuation of the offer would involve an unreasonable risk to property or to the safety or welfare of specific individuals or the general public; or

(3) the use is otherwise authorized by law.

As used in this subsection, "substantial relationship" means a consideration of whether the conditional offer presents an opportunity for the same or a similar offense to occur and whether the circumstances leading to the conduct for which the person was convicted will recur as a result of the offer.

(D) In making a determination pursuant to subsection (C), an owner or any other person who elects to, or is otherwise required to, consider a person's conviction record in connection with a conditional offer shall consider the following factors before making a preliminary decision that the conviction record is disqualifying:

(1) the nature and severity of the conduct underlying the conviction;

(2) whether the nature of the conviction presents a direct threat to the health or safety of other tenants or to the property;

(3) the terms of the sentence;

(4) the number of convictions on the person's record;

(5) the age of the person at the time of the conviction;

(6) the length of time since the conviction; and

(7) evidence of rehabilitation.

(E) If, after considering the factors in subsection (C), the owner or any other person making the conditional offer makes a preliminary decision that the conviction record is disqualifying, the owner or person making the conditional offer shall provide written notification to the disqualified person within 5 business days which shall contain the following:

(1) notice of the disqualifying conviction or convictions that are the basis of the preliminary decision and the reasons for the disqualification;

(2) a copy of the conviction record or other information relied upon to make the preliminary decision to disqualify; and

(3) an explanation of the disqualified person's right to respond to the decision of the owner or any other person making the conditional offer before the preliminary decision becomes final. The explanation shall inform the disqualified person that the response may include, but is not limited to, submission of evidence challenging the accuracy of the conviction record that is the basis for the disqualification, or evidence of mitigation, such as rehabilitation.

(F) The disqualified person shall have at least 5 business days to respond to the notification as provided under subsection (D).

(G) The owner or person making the conditional offer shall consider information submitted by the disqualified person before making a final decision. If an owner or any other person making the conditional offer makes a final decision based on the disqualified person's conviction record, the owner or any other person making the conditional offer shall provide written notification to the disqualified person within 5 business days which shall contain the following:

(1) notice of the disqualifying conviction or convictions that are the basis of the final decision and the reasons for the disqualification;

(2) any existing procedure the owner or any other person making the conditional offer has for the disqualified person to challenge the decision or request reconsideration; and

(3) the right to file a charge with the Department.

(775 ILCS 5/3-102.10)

Sec. 3-102.10. Third-party loan modification service provider.

(A) It is a civil rights violation for a third-party loan modification service provider, because of unlawful discrimination, familial status, immigration status, source of income, or an arrest record, or a conviction record, to:

(1) refuse to engage in loan modification services;

(2) alter the terms, conditions, or privileges of such services; or

(3) discriminate in making such services available, including, but not limited to, by making a statement, advertisement, representation, inquiry, listing, offer, or solicitation that indicates a preference or the intention to make such a preference in making such services available.

(B) For purposes of this Section, "third-party loan modification service provider" means a person or entity, whether licensed or not, who, for or with the expectation of receiving consideration, provides assistance or services to a loan borrower to obtain a modification to a term of an existing real estate loan or to obtain foreclosure relief. "Third-party loan modification service provider" does not include lenders, brokers or appraisers of mortgage loans, or the servicers, subsidiaries, affiliates, or agents of the lender.

(Source: P.A. 102-362, eff. 1-1-22; 103-232, eff. 1-1-24.)

(775 ILCS 5/3-106) (from Ch. 68, par. 3-106)

Sec. 3-106. Exemptions. Nothing contained in Sections Section 3-102 and 3-102.2 shall prohibit:

(A) Private Sales of Single Family Homes.

(1) Any sale of a single family home by its owner so long as the following criteria are met:

(a) The owner does not own or have a beneficial interest in more than 3 single family homes at the time of the sale;

(b) The owner or a member of the owner's family was the last current resident of the home;

(c) The home is sold without the use in any manner of the sales or rental facilities or services of any real estate broker or salesman, or of any employee or agent of any real estate broker or salesman;

(d) The home is sold without the publication, posting or mailing, after notice, of any advertisement or written notice in violation of paragraph (F) of Section 3-102.

(2) This exemption does not apply to paragraph (F) of Section 3-102.

(B) Apartments. Rental of a housing accommodation in a building which contains housing accommodations for not more than 4 families living independently of each other, if the owner resides in one of the housing accommodations. This exemption does not apply to paragraph (F) of Section 3-102.

(C) Private Rooms. Rental of a room or rooms in a private home by an owner if the owner or a member of the owner's family resides therein or, while absent for a period of not more than 12 months, if the owner or a member of the owner's family intends to return to reside therein. This exemption does not apply to paragraph (F) of Section 3-102.

(D) Reasonable local, State, or Federal restrictions regarding the maximum number of occupants permitted to occupy a dwelling.

(E) Religious Organizations. A religious organization, association, or society, or any nonprofit institution or organization operated, supervised or controlled by or in conjunction with a religious organization, association, or society, from limiting the sale, rental or occupancy of a dwelling which it owns or operates for other than a commercial purpose to persons of the same religion, or from giving preference to such persons, unless membership in such religion is restricted on account of race, color, or national origin.

(F) Sex. Restricting the rental of rooms in a housing accommodation to persons of one sex.

(G) Persons Convicted of Drug-Related Offenses. Conduct against a person because such person has been convicted by any court of competent jurisdiction of the illegal manufacture or distribution of a controlled substance as defined in Section 102 of the federal Controlled Substances Act (21 U.S.C. 802).

(H) Persons engaged in the business of furnishing appraisals of real property from taking into consideration factors other than those based on unlawful discrimination or familial status or source of income in furnishing appraisals.

(H-1) The owner of an owner-occupied residential building with 4 or fewer units (including the unit in which the owner resides) from making decisions regarding whether to rent to a person based upon that person's sexual orientation or conviction record.

(I) Housing for Older Persons. No provision in this Article regarding familial status shall apply with respect to housing for older persons.

(1) As used in this Section, "housing for older persons" means housing:

(a) provided under any State or Federal program that the Department determines is specifically designed and operated to assist elderly persons (as defined in the State or Federal program); or

(b) intended for, and solely occupied by, persons 62 years of age or older; or

(c) intended and operated for occupancy by persons 55 years of age or older and:

(i) at least 80% of the occupied units are occupied by at least one person who is 55 years of age or older;

(ii) the housing facility or community publishes and adheres to policies and procedures that demonstrate the intent required under this subdivision (c); and

(iii) the housing facility or community complies with rules adopted by the Department for verification of occupancy, which shall:

(aa) provide for verification by reliable surveys and affidavits; and

(bb) include examples of the types of policies and procedures relevant to a determination of compliance with the requirement of clause (ii).

These surveys and affidavits shall be admissible in administrative and judicial proceedings for the purposes of such verification.

(2) Housing shall not fail to meet the requirements for housing for older persons by reason of:

(a) persons residing in such housing as of the effective date of this amendatory Act of 1989 who do not meet the age requirements of subsections (1)(b) or (c); provided, that new occupants of such housing meet the age requirements of subsections (1)(b) or (c) of this subsection; or

(b) unoccupied units; provided, that such units are reserved for occupancy by persons who meet the age requirements of subsections (1)(b) or (c) of this subsection.

(3)(a) A person shall not be held personally liable for monetary damages for a violation of this Article if the person reasonably relied, in good faith, on the application of the exemption under this subsection (I) relating to housing for older persons.

(b) For the purposes of this item (3), a person may show good faith reliance on the application of the exemption only by showing that:

(i) the person has no actual knowledge that the facility or community is not, or will not be, eligible for the exemption; and

(ii) the facility or community has stated formally, in writing, that the facility or community complies with the requirements for the exemption.

(J) Child Sex Offender Refusal to Rent. Refusal of a child sex offender who owns and resides at residential real estate to rent any residential unit within the same building in which the child sex offender resides to a person who is the parent or guardian of a child or children under 18 years of age.

(K) Arrest Records. Inquiry into or the use of an arrest record if the inquiry or use is otherwise authorized by State or federal law.

(K-5) Conviction Record. Inquiry into or the use of a conviction record if the inquiry or use is otherwise authorized by State or federal law.

(K-10) Sex Offender Conviction Records. Use of a criminal conviction that results in a current sex offender registration requirement pursuant to the Sex Offender Registration Act, or similar law in another jurisdiction, or a current child sex offender residency restriction.

(L) Financial Institutions. A financial institution as defined in Article 4 from considering source of income or immigration status in a real estate transaction in compliance with State or federal law.

(M) Immigration Status. Inquiry into or the use of immigration status if the inquiry or use is in compliance with State or federal law.

(Source: P.A. 102-896, eff. 1-1-23; 103-232, eff. 1-1-24.)