5-10-010 Title, purpose and scope.
5-10-020 Definitions.
5-10-030 Right of first refusal conferred.
5-10-040 Exceptions.
5-10-050 Notice of intent to sell.
5-10-060 Right of first refusal.
5-10-070 Financial assurances; deposit.
5-10-080 Exercise or assignment of rights.
5-10-090 Waiver of rights.
5-10-100 Notice.
5-10-110 Preservation as rent-restricted affordable housing.
5-10-120 Duties of owner relative to existing tenancies.
5-10-130 Sale of property to third-party purchaser.
5-10-140 Rules.
5-10-150 Penalties.
5-10-160 Private right of action.
5-10-170 Remedies cumulative.
This chapter shall be known and may be cited as the "Tenant Opportunity to Purchase Woodlawn Pilot Program", and shall be liberally construed and applied to promote its purposes and policies.
It is the purpose of this chapter and the policy of the city, in order to protect and promote the public health, safety and welfare of its residents, to empower tenants to purchase multi-family rental properties, at market prices, within a reasonable period of time and to thereby minimize tenant displacement, stabilize households facing displacement pressures and promote the preservation of affordable rental housing in neighborhoods at risk of gentrification.
(Added Coun. J. 9-9-20, p. 20074, § 10)
For purposes of this chapter, the following definitions apply:
"Affordability preservation agreement" means an agreement between the owner and a tenant association (i) in which the tenant association agrees to maintain the rental property in a manner that preserves the property's existing affordability restrictions, or (ii) that would qualify the property as affordable housing, and (iii) in which the affordability restrictions set forth in the agreement are memorialized in covenants running with the land, in a form approved by the commissioner, enforceable by the city as a third party beneficiary. The affordability restrictions in each affordability preservation agreement shall extend for a period of not less than thirty (30) years from the sale, subject to such exceptions as the commissioner may provide for by rule issued hereunder.
"Affordability restrictions" means limits on rents and income for persons or families seeking to qualify as tenants in the rental property.
"Affordable housing" means that the mean value of all rents paid by tenants in the rental property shall not exceed 60 percent of area median income, and that the gross household income of new tenants in the rental property shall not exceed 80 percent of area median income.
"Commissioner" means the commissioner of the Department.
"Department" means the Department of Housing or any successor agency.
"Just cause eviction" means any eviction for serious or repeated violations of the terms and conditions of a lease or occupancy agreement, or for violation of applicable federal, state or local laws or for other good cause.
"Owner" means the person(s), firm, partnership, corporation, trust, organization, limited liability company or other entity, or its successors or assigns, that holds title to a rental property.
"Purchaser" means a party who has entered into a purchase contract with an owner and who will, upon performance of the purchase contract, become the new owner of the rental property.
"Rental property" means any occupied residential rental building, or a group of residential rental buildings operated as one entity, within the Woodlawn Community Area, with a total of 10 or more dwelling units. Rental property does not include:
(a) "assisted housing" or an "assisted housing development" or a "development", as those terms are defined in the City of Chicago Affordable Housing Preservation Ordinance;
(b) housing accommodations in any hospital, convent, monastery, extended care facility, asylum or not-for-profit home for the aged, temporary overnight shelter, transitional shelter, or in a dormitory owned and operated by an elementary school, high school or institution of higher learning; student housing accommodations wherein a housing agreement or housing contract is entered into between the student and an institution of higher learning or student housing wherein the institution exercises control or supervision of the students; or student housing owned and operated by a tax exempt organization affiliated with an institution of higher learning;
(c) public housing units managed by the Chicago Housing Authority;
(d) owner-occupied buildings containing nine units or less.
"Rental unit" or "unit" means a room or suite of rooms designed, occupied or intended for occupancy as a separate living quarter with cooking, sleeping and sanitary facilities provided within the unit for the exclusive use of the occupants of the unit.
"Sale" or "sell" means an act by which an owner conveys, transfers or disposes of rental property by deed or otherwise, whether through a single transaction or a series of transactions, including: (i) transfer of title to rental property; (ii) transfer of a majority interest in owner; or (iii) lease of rental property for more than 7 years.
"Tenant" means a natural person entitled by written or oral agreement or by sufferance to occupy a rental unit to the exclusion of others, and who is residing in a rental unit at the time of a notification under Section 5-10-060(a). If more than one tenant is listed on a lease any such tenants may exercise the rights granted under this chapter.
"Tenant association" means an association of tenants, whether incorporated or not, for which written consent to forming a tenant association has been given by tenants representing at least 75 percent of the occupied units in the rental property, and which association notifies the owner of the rental property and the department of its existence or establishment prior to the expiration of the 90-day period stated in subsection 5-10-060(b) and has provided to the owner and the Department the names, addresses and telephone numbers of at least two of the officers or representatives of such association. The percentage shall be calculated based on the number of occupied rental units in a rental property rather than the number of individuals listed on leases as tenants. Tenants agreeing to participate in a tenant association shall signify their consent to form a tenant association by signing a form provided by the Department. Any reference to a "tenant association" in this chapter shall be deemed to include any third party or assignee under Section 5-10-080.
"Third-party purchase agreement" means an arm's length third-party agreement whereby an owner agrees to sell a rental property, including, without limitation, a purchase and sale agreement, contract of sale, purchase option or other similar instrument.
"Title" means a legal or equitable ownership interest in a rental property; or a legal, equitable, or beneficial interest in a partnership, limited partnership, corporation, trust or other entity that has a legal or equitable ownership interest in a rental property.
(Added Coun. J. 9-9-20, p. 20074, § 10)
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