SPRINGFIELD – To help communities preserve naturally-occurring affordable, accessible housing and protect residents from displacement, State Senator Mike Simmons passed House Bill 957 which will provide tenants with the right-of-first-refusal to purchase a residential building for themselves should the owner put the building up for sale or try to initiate a sale. Specifically, a 90-day notice would be required to tenants from the property owner before accepting or listing a building sale.
“With rising costs of living and the influence of private equity, residents across Illinois are feeling the strain, and this measure gives them tools to keep their homes,” said Simmons (D-Chicago). “This legislation balances the need to expand and preserve housing with strong protections for property owners through the right of first refusal, fair valuation requirements, and a transparent acquisition process.”
For many families, seniors and working residents, the sale of their building can mean uncertainty about whether they will be able to remain in their homes. House Bill 957 aims to provide a path to preserve housing when multi-unit residential properties are put up for sale by giving tenants, qualified nonprofit organizations and local governments an opportunity to keep those units affordable for current and future residents.
The measure would establish a right-of-first-refusal process, giving organized tenants the opportunity to purchase when their building is listed for sale or a property owner receives and accepts an unsolicited third-party offer. The legislation would also include requirements for good-faith purchase offers, appraisal review and fair valuation protections for property owners, and would require properties acquired with public funding to remain affordable housing for at least 30 years.
“As housing costs continue to rise and private equity continues to purchase buildings, gentrification continues to threaten communities across the 7th District and all of Illinois,” said Simmons. “We are taking action to protect affordability for residents in the long run while ensuring property rights as we continue to build strong communities.”
House Bill 957 passed the Senate on Sunday.
