APRIL 22, 2020. COVID-19 UPDATE: CHICAGO ALDERMEN SEEK 12 MONTH GRACE PERIOD FOR TENANTS TO PAY RENT

Ald. Matt Martin (47th) introduced legislation that would give Chicago renters who lost income during the COVID-19 outbreak a 12-month grace period to pay rent. Specifically, the ordinance would allow tenants a 12 month grace period following the date at which a stay at home order is rescinded to pay past due rent if the tenant is unable to pay rent during the stay at home order due to circumstances related to the novel coronavirus (COVID-19) pandemic, including:

1. Loss of income due to a COVID-19 related workplace closure.

2. Increased or additional child care expenditures due to school closures or changed work schedules.

3. Healthcare and other expenses related to being ill with COVID-19 or caring for a member of the tenant’s household or family who is ill with COVID-19.

4. Reasonable expenditures that stem from government-ordered emergency measures.

Critics of the rent abatement proposal argue that the ordinance will destroy what remains of privately owned low-income affordable housing, it would increase the homeless population, it does not adequately explain what would substitute for rent, it does not adequately protect property owners who will be unable to pay their mortgage/property taxes/utility fees without proper rent payments, and it will lead to a massive decline in the collection of property taxes, water fees, sewer fees and other revenue.

Think this ordinance is good for City of Chicago residents? Decide for yourself, and read the full text here.

What about landlords and property owners who need rent to pay for their mortgage, taxes, insurance and/or utility bills? Alderman Martin proposed another ordinance asking Governor Pritzker to enact payment deferrments for mortgage holders, citing to actions taken by California Governor Gavin Newsom and New Jersey Governor Phil Murphy. The proposed ordinance calls upon Governor Pritzker to help secure a commitment from all significant non-commercial lenders and servicers of residential mortgages in the City of Chicago to:

1. Offer at least 90 days of mortgage forbearance to all borrowers that have lost income due to COVID-19 and wherever possible, offer payment plans that avoid a single “balloon” payment due at the end of the forbearance term.

2. Waive or refund mortgage-related late fees for at least 90 days.

3. Forego reporting the occurrence of late payments to credit-reporting agencies for borrowers that have been negatively impacted by COVID-19.

Read this proposed ordinance here.

Recent Posts

FIFA’s New Regulations in Dealing with Minors

On April 1, 2015, FIFA's Regulations on Working with Intermediaries became effective. The 2015 Regulations essentially de-regulated the football agent industry. For instance, the Regulations no longer required agents to be licensed, pass an exam or provide insurance....

How Much do Soccer Players Make?

I often get asked the question, "How much do soccer players make in MLS?" Some people are just curious because they have no idea what type of salaries soccer players make, especially in the USA. Some people want to compare Major League Soccer salaries to European...

Play College Soccer or Turn Pro?

As a soccer agent, I am frequently asked by parents whether their son or daughter should player soccer in college or try to turn professional right away. As someone who played Division I college soccer at Yale University, I can honestly say that playing soccer was...

Attorney Iveljic on Essential Elements of a Valid Contract

DocPro.com: Mag Mile Law Attorney Mario Iveljic gives insight into essential elements of a valid contract. Contracts form the backbone of society by establishing trust and minimizing risks between parties. A contract is the exchange of an act or promise between two or...

Loss Payees, Lenders and Mortgagee

Imagine the following scenario: You are a senior secured lender on equipment damaged in a fire. The owner of the property where the equipment is located files a claim against his insurance company for the loss. You, as the secured lender, are a loss payee on the...

Call Now to Get a Free Case Evaluation