May 16, 2025 State Capitol Report

It was another long and action-packed legislative week at the Capitol for your State Legislative Team. The House and Senate returned to action Tuesday, with the Senate adjourning Thursday and the House following suit this afternoon. Each session day saw long committee hearings and caucus discussions, with floor action being limited to procedural matters or issues needing extensive and elaborate floor debates. With only two weeks remaining before the scheduled adjournment date of May 31, the action and hours will only increase. Both chambers will be back in Springfield on Tuesday, May 20. Your State Legislative Team spent the week responding to amendments and defending against problematic legislation, while continuing their work to advance initiatives included in the Illinois REALTORS® Housing Stability and Affordability package. Below are the highlights of this week’s legislation.

Illinois REALTORS® Housing Stability & Affordability Initiative

Learn more about the “Housing Stability & Affordability Initiative” at www.illinoisrealtors.org/housing.

Bills of Interest

The following “Bills of Interest” saw legislative action this week.

Senate Floor Amendment 1 (SA1) to SB 2264 replaces everything after the enacting clause creating a new bill that restricts local ordinances that would result in an eviction or lease non-renewal for contacting the police or others for emergency assistance. The bill also restricts the eviction of any tenant for criminal activity the person did not perpetrate; association with another tenant or person (unless it’s unlawful under state law); or an arrest record, as required by the Illinois Human Rights Act. SB 2264 (SA1) bans local government penalties on a landlord for not imposing or not threatening a tenant based on any of the above factors, including language in lease provisions. The bill also states that for any evictions that are a result of a municipality’s Crime-Free or nuisance property programs, the local government must provide the tenant with a 30-day written notice and an opportunity for an appeal to be heard. SA1 to SB 2264 would also require local governments to complete an annual assessment of enforcement of existing housing programs. SA1 to SB 2264 mirrors language included in the Illinois REALTORS® supported initiative HB 3110, prohibiting mandated Crime-Free Housing programs and is a direct result of REALTORS® continued advocacy efforts in addressing this pressing problematic housing issue. SB 2264 (SA1) passed the Senate Judiciary committee Wednesday on a 9-4-0 vote. Illinois REALTORS® SUPPORTS this legislation.

HB 3564 (SA2) replaces everything after the enacting clause to create the Rental Fee Transparency and Fairness Act. The new Act provides that all non-optional 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 included on the first page of a lease agreement, a tenant is not liable for payment of that fee. Included in SA2 is a “junk fee ban” prohibiting landlords from requiring payments for a fee for: applications, modification or renewal of lease agreement, eviction notice or the filing of an eviction action, requests for maintenance services, contacting the building owner or property owner, online payment systems, pest abatement and in-person walk through of a unit. SA2 also provides that no landlord may charge both a security deposit and a move-in or move-out fee and that the total amount of a security deposit may not exceed the amount of the first full month’s rent of the tenant’s dwelling unit. If a landlord charges a move-in fee or move-out fee, then the fee may not exceed 20 percent of the prorated monthly rental amount. Also provided in the amendment is a section outlining the process for allowing fee payments to be made in installments. SA2 to HB 3564 does not change our position and Illinois REALTORS® remains OPPOSED and is actively engaged in negotiations and discussions. HB 3564 (SA2) could be heard next in the next Senate Executive Committee on Wednesday, May 21. Please be on alert for a possible Call for Action regarding this legislation.

Next Week At-A-Glance

Only two weeks remain on the calendar for scheduled session days and action on substantiative bills. The last week of May will be  reserved for strictly budgetary matters. We can expect legislation to move rapidly and just like this past week, your State Legislative Team will respond immediately and take action on new amendments to any bills that would affect the real estate industry. Only nine scheduled session days remain, and the action should only pick up from here…Stay tuned!

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