New Chicago Tenant Rights Ordinance
On March 1, 2025, the Northwest Side Preservation Ordinance (commonly referred to as TOPA, or Tenant Opportunity to Purchase Act) went into effect in Chicago, introducing significant protections for tenants in buildings listed for sale. These rules, designed to preserve affordable housing and empower tenants, impose strict requirements on property owners and buyers. Below is a summary of the key provisions, along with resources and contact information to ensure compliance.
Key Provisions of the Ordinance
30-60 Day Notice Prior to Listing
Property owners must provide tenants with 30 to 60 days’ notice before listing a building for sale. This gives tenants time to prepare and understand their rights under the ordinance.30-90 Day Right of First Refusal
Tenants have a 30- to 90-day period to exercise their right of first refusal to purchase the property. This allows tenants the opportunity to match any offer received by the owner and potentially acquire the building themselves.Documentation Requirements
Within 10 days of receiving an executed offer, owners must provide tenants with:A copy of the executed offer
The current rent roll
12 months of income and expense records
Vacancy reports
Capital expenditure (cap ex) details
Any existing violations
Restrictions on Tenant Vacancy
Once the notice of intent to sell is delivered, owners cannot vacate tenants without just cause. This protects tenants from being displaced during the sale process.Post-Sale Tenant Protections
New buyers are prohibited from vacating tenants for at least 6 months after the sale, even if the tenant’s lease is month-to-month or has expired. This ensures stability for tenants during the transition to new ownership.Department of Housing (DOH) Oversight
All required documents must be submitted to the Chicago Department of Housing (DOH) for verification. A certificate of compliance will be issued by the DOH and is required before the title can close. Without this certificate, the sale cannot proceed.Penalties for Non-Compliance
Failure to comply with the ordinance can result in significant financial penalties, ranging from ** $
200 to $1,000 per tenant, per day** for each violation. These penalties underscore the importance of adhering to the new rules.
Resources for Compliance
Official Rules: The complete text of the ordinance can be found here.
Forms: Necessary forms for compliance are available here.
Take Action Now
To avoid non-compliance and potential penalties, property owners and managers are urged to act immediately. Review the ordinance, prepare the required notices and documentation, and ensure all steps are followed in coordination with the DOH.
Contact Information
For questions or assistance, reach out to the following:
Chicago Department of Housing: DOH@cityofchicago.org
Alderpersons Responsible for the Ordinance:
Ward 35: ward35@cityofchicago.org
Ward 1: info@the1stward.com
Ward 26: ward26@cityofchicago.org
Ward 25: ward25@cityofchicago.org
Ward 30: ward30@cityofchicago.org
Ward 31: Ward31@cityofchicago.org
Ward 33: info@33rdward.org
Geary’s Perspective
The Northwest Side Preservation Ordinance represents a major step toward protecting tenants and preserving affordable housing in Chicago. Property owners must familiarize themselves with these rules and act promptly to ensure compliance. By following the outlined steps and leveraging available resources, owners can navigate the process smoothly while respecting tenants’ rights.
However, this ordinance’s lack of widespread awareness limits its impact, and its stringent requirements, such as extensive documentation and severe penalties, place an undue burden on property owners. Many tenant protections, like the right of first refusal, seem excessive and may discourage property sales. As real estate investors ourselves, we find this ordinance a major strike against owning property in this area of the city, as it tips the balance too far in favor of renters at the expense of owners’ rights.
