The intent of HB3874 is to mitigate the rising costs of housing by capping rent increases and protecting tenants from sudden hikes. By doing so, it hopes to enhance housing affordability throughout the state. The bill applies to a range of residential properties, including apartments and condominiums, while explicitly excluding commercial units and certain types of temporary housing. The enforcement mechanism allows the Attorney General to intervene in cases where landlords violate the parameters set by this Act.
HB3874, referred to as the Rent Control Act, establishes specific regulations on rent increases for residential dwelling units in Illinois. Under this bill, landlords are permitted to increase rent only once every 12 months and must provide tenants with a minimum of 90 days' written notice. The increase cannot exceed 15% of the rent charged, and landlords are restricted from raising the rent above this cap, regardless of the tenant's occupancy status or changes in property ownership. This framework aims to provide tenants with a measure of stability and predictability in their housing costs.
Despite its merits, the bill faces significant contention from various stakeholders. Proponents argue that the Rent Control Act is vital for protecting vulnerable tenants amidst soaring housing costs, asserting that it fosters community stability. Conversely, opponents, particularly landlords and real estate groups, contend that such rent controls could discourage investment in rental properties and lead to reduced housing stock. They worry that limiting rent increases could result in deteriorating property conditions as landlords have less incentive to maintain their investments.