HB3564sam002 104TH GENERAL ASSEMBLY

Sen. Mike Simmons

Filed: 5/13/2025

10400HB3564sam002 LRB104 10911 JRC 26230 a

AMENDMENT TO HOUSE BILL 3564

AMENDMENT NO. ______. Amend House Bill 3564 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Rental Fee Transparency and Fairness Act.

Section 5. Definitions. As used in this Act:

"Landlord" means the owner of a building, or the owner's agent with regard to matters concerning a landlord's leasing of one or more residential dwelling units.

"Lease" or "lease agreement" means an agreement for the rental of residential property.

"Listing" means an advertisement or written notice conveying that a property is available for lease.

"Tenant" means a person who has entered into an oral or written residential lease with a landlord in which the person is the lessee under the lease of a residential dwelling.

Section 10. Rental fee disclosure.

(a) All nonoptional fees, regardless of whether they are one-time fees or recurring fees, shall be explicitly contained on the first page of a lease agreement. If a fee is not explicitly contained on the first page of a lease agreement, a tenant is not liable for payment of such a fee.

(b) A listing for the rental of residential property must disclose in a clear and conspicuous manner the nonoptional fees included with the total amount for rent.

(c) In a lease agreement disclosure or unit listing, the landlord must disclose whether utilities are included in rent.

Section 15. Junk fee ban. No landlord or lease agreement may require the payment by the tenant of any of the following:

(1) a fee or fine ancillary to the application fee;

(2) a fee or fine for modification or renewal of a lease agreement;

(3) a fee or fine for an eviction notice or the filing of an eviction action;

(4) a fee or fine for after-hours requests for maintenance service;

(5) a fee or fine for contacting the building owner or property manager;

(6) a fee or fine for travel required to complete needed maintenance work or safety repairs;

(7) a fee or fine for a maintenance hotline or call to a maintenance hotline;

(8) a fee or fine for the routine maintenance and upkeep of the unit;

(9) a fee or fine for restoring access after a tenant is locked out;

(10) a fee or fine to set up an online account or online portal necessary to pay rent or utility costs;

(11) a fee or fine for pest abatement or removal; or

(12) a fee or fine for an in-person walk through of the unit.

Section 20. Security deposits and move-in fees.

(a) No landlord may charge a tenant both a security deposit and a move-in or move-out fee.

(b) The total amount of a security deposit may not exceed the amount of the first full month's rent for the tenant's dwelling unit. If rent is not paid or otherwise apportioned on a monthly basis, then for the sole purpose of applying this limit the total rent shall be prorated on an equal, monthly basis and the total charge to a tenant for the cost of a security deposit may not exceed the prorated monthly rental amount.

(c) If a landlord charges a move-in or move-out fee, the landlord shall provide the tenant with an itemized list of the landlord's reasonable estimate of the costs of services, including bundled services, that comprise the move-in or move-out fee. A tenant may opt out of bundled services. The total amount of the move-in or move-out fee may not exceed 20% of the first full month's rent for the tenant's dwelling unit. If rent is not paid or otherwise apportioned on a monthly basis, then for the sole purpose of applying this limit the total rent shall be prorated on an equal, monthly basis and the total charge to a tenant for the cost of a move-in fee or move-out fee may not exceed 20% of the prorated monthly rental amount. The landlord may not charge the tenant for costs associated with routine maintenance and upkeep of the unit or premises.

Section 25. Fee payments in installments. Except as provided in paragraph (4), tenants may pay one-time fees in installments as provided below. Landlords may not impose any fee, charge any interest, or otherwise impose a cost on a tenant because a tenant elects to pay in installments.

(1) For any lease agreement term that establishes a tenancy for 6 months or longer, the tenant may elect to pay one-time fees, excluding any payment made by a tenant to the landlord before the inception of tenancy to reimburse the landlord for the cost of obtaining a tenant screening report, in 6 consecutive, equal monthly installments that begin at the inception of the tenancy, or the tenant may propose an alternative installment schedule. If the landlord agrees to the tenant's alternative installment schedule, the schedule shall be described in the rental agreement.

(2) For any lease agreement term that establishes a tenancy between 30 days and 6 months, the tenant may elect to pay one-time fees, excluding any payment made by a tenant to the landlord before the inception of tenancy to reimburse the landlord for the cost of obtaining a tenant screening report, in no more than 4 equal amounts that begin at the inception of the tenancy and are paid in installments of equal duration, or the tenant may propose an alternative installment schedule. If the landlord agrees to the tenant's alternative installment schedule, the schedule shall be described in the rental agreement.

(3) For any lease agreement term that establishes a tenancy from month to month, the tenant may elect to pay one-time fees, excluding any payment made by a tenant to the landlord before the inception of tenancy to reimburse the landlord for the cost of obtaining a tenant screening report, in 2 equal installments. The first payment is due at the inception of the tenancy and the second payment is due on the first day of the second month or period of the tenancy, or the tenant may propose an alternative installment schedule. If the landlord agrees to the tenant's alternative installment schedule, the schedule shall be described in the rental agreement.

(4) The tenant cannot elect to pay one-time fees in installments if (i) the total amount of the one-time fees does not exceed 25% of the first full month's rent for the tenant's dwelling unit; and (ii) payment of the last month's rent is not required at the inception of the tenancy.

Section 30. Penalties.

(a) A violation of this Act constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act.

(b) Any person alleging a violation of this Act may bring a civil action, in accordance with applicable law, in any court of competent jurisdiction. The court may order injunctive relief, monetary relief, attorney's fees, and costs.

Section 35. Home rule preemption. A home rule unit may not regulate transparency for rental fees in a manner inconsistent with the provisions of this Act. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

Section 40. Applicability. A landlord may not rename a fee or charge to avoid application of this Act. This Act applies to all lease agreements entered into after the effective date of this Act.

Section 45. The Consumer Fraud and Deceptive Business Practices Act is amended by adding Section 2HHHH as follows:

(815 ILCS 505/2HHHH new)

Sec. 2HHHH. Violations of the Rental Fee Transparency and Fairness Act. Any person who violates the Rental Fee Transparency and Fairness Act commits an unlawful practice within the meaning of this Act.".