# Amendment of Municipal Code Chapter 5-12 empowering Department of Buildings to strengthen standards and enforcement mechanisms for residential buildings

[Legislation tracker](https://www.chicagopolitics.org/tracker) › [Zoning, Landmarks and Building Standards](https://www.chicagopolitics.org/committee/zoning-landmarks-and-building-standards) › [36th Ward: Gilbert Villegas](https://www.chicagopolitics.org/ward/36)

- Record number: **SO2026-0027202**
- Type: Ordinance; category: Municipal Code Amendments
- Status: Council Consideration (Deferred and Published)
- Sponsor: [Gilbert Villegas](https://www.chicagopolitics.org/ward/36) (36th Ward)
- Co-sponsors (21): [Anthony Beale](https://www.chicagopolitics.org/ward/9) (9th Ward), [Felix Cardona Jr.](https://www.chicagopolitics.org/ward/31) (31st Ward), [Peter Chico](https://www.chicagopolitics.org/ward/10) (10th Ward), [Derrick G. Curtis](https://www.chicagopolitics.org/ward/18) (18th Ward), [Pat Dowell](https://www.chicagopolitics.org/ward/3) (3rd Ward), [James M. Gardiner](https://www.chicagopolitics.org/ward/45) (45th Ward), [Michelle A. Harris](https://www.chicagopolitics.org/ward/8) (8th Ward), [Brian Hopkins](https://www.chicagopolitics.org/ward/2) (2nd Ward), [Bennett R. Lawson](https://www.chicagopolitics.org/ward/44) (44th Ward), [Nicole T. Lee](https://www.chicagopolitics.org/ward/11) (11th Ward), [Raymond A. Lopez](https://www.chicagopolitics.org/ward/15) (15th Ward), [Gregory I. Mitchell](https://www.chicagopolitics.org/ward/7) (7th Ward), [Anthony V. Napolitano](https://www.chicagopolitics.org/ward/41) (41st Ward), [Samantha Nugent](https://www.chicagopolitics.org/ward/39) (39th Ward), [Matthew J. O'Shea](https://www.chicagopolitics.org/ward/19) (19th Ward), [Marty Quinn](https://www.chicagopolitics.org/ward/13) (13th Ward), [Brendan Reilly](https://www.chicagopolitics.org/ward/42) (42nd Ward), [Debra L. Silverstein](https://www.chicagopolitics.org/ward/50) (50th Ward), [Nicholas Sposato](https://www.chicagopolitics.org/ward/38) (38th Ward), [Silvana Tabares](https://www.chicagopolitics.org/ward/23) (23rd Ward), [Scott Waguespack](https://www.chicagopolitics.org/ward/32) (32nd Ward)
- Committee: [Committee on Zoning, Landmarks and Building Standards](https://www.chicagopolitics.org/committee/zoning-landmarks-and-building-standards)
- Submitted Date: Jul 15, 2026
- Introduction Date: Jul 15, 2026
- Official record: [Office of the City Clerk](https://chicityclerkelms.chicago.gov/Matter/?matterId=5F7645B9-7180-F111-AB0E-001DD80216AA)

## Impact report

> Written by AI from [the official document](https://www.chicagopolitics.org/files/clerk/matterattachmentspublic/34c5deb7-ca10-4e76-998b-79fd01e3f32c.pdf). AI can make mistakes; the official document always wins.

This ordinance would update Chicago's landlord-tenant law by creating a rental registry and an Office of Rental Housing in the Department of Buildings, raising fines for illegal lockouts, capping security deposits and application fees, and expanding tenant repair and rent-withholding rights.

**Who it affects**

- **Renters in Chicago**: Renters would get new protections, including a cap on security deposits, limits on fees, larger repair-and-deduct amounts, and the right to withhold rent for unfixed problems.
- **Landlords and building owners**: Owners would have to register every rental unit every two years, disclose more information, follow new fee limits, and could face higher fines for lockouts and registry violations.
- **Owners living in buildings with six or fewer units**: These owners would still be mostly exempt, but more rules would apply to them, including the rental registry, lockout rules, and some repair remedies, and the city would study permit and fee help for them.
- **Prospective tenants applying for apartments**: Application fees would be capped at $50, and applicants with a reusable screening report from the past 30 days could not be charged an application fee.
- **Tenants facing lost heat, water, or other essential services**: Tenants could act right away when an outage poses an immediate danger, and could withhold rent if the landlord does not fix the problem within 24 hours, unless the outage is beyond the landlord's control.
- **City Department of Buildings and Department of Housing staff**: Most duties for running the landlord-tenant law would move from the Department of Housing to a new Office of Rental Housing within the Department of Buildings, which would handle complaints, mediation, and referrals.

**What changes**

- Landlords would have to register rental units with a new Office of Rental Housing, and a public website would list documented violations and flag repeat-violator properties.
- Landlords would have to list all required fees on the first page of the lease, could not mark up utility bills, and could not turn unpaid fees into rent.
- Late fees would be capped at $10 per month for the first $1,000 of rent, plus 5% of any rent above $1,000, instead of the old $500 threshold.
- Leases could not stop tenants from complaining about code violations on social media, to officials, or to the news, and retaliation for those complaints would be banned.
- Landlords would have to give 48 hours' notice before entering a unit and say whether software using dynamic pricing was used to set the rent.

**Money**

- Landlords who lock out tenants or cut essential services would be fined $2,500 to $5,000 per offense plus $1,000 for each extra day, up from $200 to $500.
- Security deposits would be capped at one and a half months' rent, and a landlord who fails to return a deposit properly would owe the tenant two times the deposit.
- Owners who fail to register a unit, or who give false registry information, would be fined $100, $250, or $500 per unit for first, second, and third offenses, with each day counted as a separate offense.
- Application or background-check fees would be capped at $50, with extra documented third-party screening costs allowed under state law.
- Damages owed to tenants not told about a foreclosure would rise from $200 to $1,000, and the repair-and-deduct limit would rise from $500 to the greater of $1,500 or half a month's rent.

**When**: Sections 2 and 4 take effect upon passage and publication; the remaining sections take effect July 1, 2027.

## Timeline

- Jul 15, 2026: Referred, City Council. The matter was Referred to Committee.
- Sep 17, 2026: Recommended to Pass, Committee on Zoning, Landmarks and Building Standards. The matter was recommended to Pass by controlling legislative body.
- Sep 17, 2026: Substituted
- Sep 23, 2026: Deferred and Published, City Council. On request of Alderperson Villegas and Alderperson Cardona, the matter was Deferred and Published.

## Documents

- [SO2026-0027202.pdf](https://www.chicagopolitics.org/files/clerk/matterattachmentspublic/34c5deb7-ca10-4e76-998b-79fd01e3f32c.pdf) (Legislation)
- [w36 - o27202.pdf](https://www.chicagopolitics.org/files/clerk/matterattachmentspublic/5a3bf999-84fb-418a-8226-9c9b9e9ed604.pdf) (Legislation)

## Related legislation

**More from Gilbert Villegas**

- [Tribute to late Michael Keller Ditka](https://www.chicagopolitics.org/matter/R2026-0029456-tribute-late-michael-keller-ditka) (R2026-0029456, introduced Oct 14, 2026, Referred)
- [Amendment of Municipal Code Section 2-44-055 establishing scoring criteria for 9% tax credits](https://www.chicagopolitics.org/matter/O2026-0029453-scoring-criteria-9-tax-credits) (O2026-0029453, introduced Oct 14, 2026, Referred)
- [Exemption from physical barrier requirement for commercial driveway alley access for Best West Auto Repair, Inc.](https://www.chicagopolitics.org/matter/O2026-0027919-exemption-physical-barrier-requirement-commercial-driveway) (O2026-0027919, introduced Sep 23, 2026, Passed)

**More on Municipal Code Amendments**

- [Amendment of Municipal Code Section 9-24-065 regarding ability to pay pilot program](https://www.chicagopolitics.org/matter/O2026-0029654-regarding-ability-pay-pilot-program) (O2026-0029654, introduced Dec 8, 2026, Council Introduction)
- [Amendment of Municipal Code Titles 3, 4 and 8 regarding technical and scriveners' corrections (2027 Municipal Code Corrections Ordinance)](https://www.chicagopolitics.org/matter/O2026-0029649-titles-3-4-8-regarding-technical) (O2026-0029649, introduced Oct 21, 2026, Referred)
- [Amendment of Municipal Code Titles 2, 4, 6, 7, 8, 9, 10, 11, 14A, 15, 17 regarding management, structure, powers and functions of various…](https://www.chicagopolitics.org/matter/O2026-0029644-titles-2-4-6-7-8) (O2026-0029644, introduced Oct 21, 2026, Referred)

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Source: https://www.chicagopolitics.org/matter/SO2026-0027202-empowering-department-buildings-strengthen-standards · Chicago Politics, an independent tracker of the Chicago City Council. Guide for agents: https://www.chicagopolitics.org/llms.txt