Chicago Mayor Softens Rent Protection Bill to Win Small Landlord Support
Mayor Brandon Johnson’s office has revised the Protecting Renters Ordinance (PRO) to secure passage before the September 23 City Council vote. The updated bill exempts small landlords with six or fewer units from just-cause eviction and relocation assistance requirements, while reducing overall relocation payments. In exchange, small landlords must provide longer notice periods for lease non-renewal. The administration aims to balance tenant protections with concerns from small property owners, having previously faced opposition from a coalition of alderpeople who proposed a competing bill.
Key points
- The revised ordinance exempts owner-occupied buildings with six or fewer units from just-cause eviction and relocation assistance mandates.
- Relocation assistance payments for larger landlords have been reduced to $4,000 for certain no-fault evictions and $7,500 for other cases, down from previous proposals of $5,000 and $10,000.
- Small landlords must now provide 90 to 180 days' notice for lease non-renewal, up from the previous 30 to 120 days, to offset the removal of just-cause protections.
- A grace period exempts landlords from relocation assistance requirements during a tenant's first year of tenancy.
- The bill retains caps on security deposits at one month's rent and bans move-in and junk fees.
- The ordinance must pass the housing committee by September 16 to be voted on by the full council on September 23.
Background
The Protecting Renters Ordinance was introduced in June 2026 as a significant update to Chicago's housing laws, the first major change since the mid-1980s. It initially faced opposition from a coalition of 16 alderpeople who drafted a competing bill called FAIR, which stripped out just-cause eviction, relocation assistance, and a tenant bill of rights. Concerns from small landlords, including Ald. Nicole Lee, about the financial burden of relocation assistance prompted the current revisions. This follows a broader national trend of housing policy debates, such as recent rent freezes and tax rollouts in New York City, though Chicago's approach focuses on regulatory exemptions rather than rent caps.
Why it matters
The revision reflects a political compromise to pass housing legislation in a divided council. By exempting small landlords, the mayor's office aims to reduce opposition while maintaining core protections for larger rental markets. The outcome will determine the scope of tenant protections in Chicago, potentially leaving small-unit renters with fewer safeguards against eviction and displacement, while setting a precedent for how cities balance housing stability with small business concerns.
What to watch
The ordinance will be reviewed by the housing committee on September 16. If approved, it will go to the full City Council for a vote on September 23. The administration is pushing for passage this month to avoid further delays. Stakeholders, including tenant advocates and small landlords, will likely monitor the committee vote for any further changes or opposition.
- Mayor's Office Revises Renter Protection Ordinance, Giving Break To Small Landlords blockclubchicago.org
- Opinion: Chicago can build its way out of the housing crisis — if City Hall gets out of the way Crain's Chicago Business
- Landlord groups gear up for City Council showdown over dueling tenants’ rights proposals The Real Deal
Want the full story? Read the original reporting
Read on blockclubchicago.org