HB4778 98TH GENERAL ASSEMBLY

LRB098 18830 HEP 53975 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4778

Introduced , by Rep. Emanuel Chris Welch

SYNOPSIS AS INTRODUCED:

765 ILCS 705/17 new

Amends the Landlord and Tenant Act. Defines "application fee". Provides that a lessor may not charge an application fee that exceeds the lessor's actual out-of-pocket costs of evaluating a prospective lessee's application to enter into a lease with the lessor. Contains provisions concerning the procedure for processing applications from prospective lessees. Provides that if the lessor decides not to offer or accept a lease, the lessor shall disclose in writing the specific grounds that led to the denial and provide a copy of any information obtained from a third party that formed a basis for the denial. Provides that a lessor who collects an application fee from a prospective lessee may not knowingly make any misrepresentation to the prospective lessee regarding the current or future availability of a dwelling unit for lease. Provides that a lessor who violates the new provisions is liable to the prospective lessee for the application fee, a civil penalty of up to $200, and reasonable attorney's fees and costs.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Landlord and Tenant Act is amended by adding Section 17 as follows:

(765 ILCS 705/17 new)

Sec. 17. Application fees.

(a) As used in this Section, "application fee" means an amount required by a lessor to be paid by a prospective lessee of a dwelling unit prior to the lessor offering or accepting a lease agreement with the prospective lessee.

(b) A lessor may not charge an application fee that exceeds the lessor's actual out-of-pocket costs of evaluating a prospective lessee's application to enter into a lease with the lessor.

(c) Prior to accepting an application fee, the lessor shall provide the prospective lessee with the following in writing:

(1) an itemized description of the lessor's anticipated costs of processing the application;

(2) a date on or before which the lessor will notify the prospective lessee of a decision as to whether a lease will be offered or accepted; and

(3) information as to whether a specific dwelling unit is currently available.

(d) Upon receipt of an application fee from a prospective lessee, the lessor shall provide the prospective lessee with a written receipt for the application fee.

(e) On or before the date specified by the lessor under paragraph (2) of subsection (c), the lessor shall:

(1) provide a written itemized accounting of how the application fee was expended by the lessor;

(2) return any portion of the application fee that was not expended by the lessor; and

(3) notify the prospective lessee in writing of the decision to offer or accept a lease.

If the lessor decides not to offer or accept a lease, the lessor shall disclose in writing the specific grounds that led to the denial and provide a copy of any information obtained from a third party that formed a basis for the denial.

(f) A lessor who collects an application fee from a prospective lessee may not knowingly make any misrepresentation to the prospective lessee regarding the current or future availability of a dwelling unit for lease.

(g) A lessor who violates this Section is liable to the prospective lessee for the application fee, a civil penalty of up to $200, and reasonable attorney's fees and costs.