Understanding Local Protections During Foreclosure: KCRO Lease Renewal or Relocation Assistance for "Qualified Renters"

Under the Keep Chicago Renting Ordinance (KCRO), new owners or appointed receivers after a foreclosure need to take the right steps when there are tenants and occupants still living in the building.

What must the new owner or receiver offer to tenants after a change in ownership after foreclosure?

Within 63 days after the change in ownership, the new owner or receiver must offer "qualified renters" two choices:

1. Lease renewal, OR
2. $10,600 in relocation assistance (must be paid no later than 7 days after vacating the unit).

If the new owner/receiver fails to give the tenant either option, then the penalty in court is double the relocation assistance ($21,200) and attorney’s fees.

What options do tenants have to stay or leave after a change in ownership after a building foreclosure?

If the tenant is offered a lease renewal, the tenant has 21 days to decide whether to accept the new lease.

• Option 1: The tenant may accept the new good-faith 12-month lease. The tenant will not receive $10,600 for relocation assistance.
• Option 2: The tenant may reject the new good-faith 12-month lease. The new owner must pay $10,600 for relocation assistance.
• Option 3: If the tenant does not respond to the new good-faith 12-month lease within 21 days, then the new owner may revoke the lease renewal. However, they would then have to pay the $10,600 relocation assistance.