IMPORTANT NEWS FOR LANDLORDS OUTSIDE OF CHICAGO CITY LIMITS EVICTION MORATORIUM AMENDED BY GOVERNOR
On November 13, 2020, Governor Pritzker entered Executive Order 2020-72 which amends the eviction moratorium. Effective immediately, landlords may file residential eviction lawsuits against tenants unless the tenant is deemed a “Covered Person” under the Executive Order. The Executive Order defines a Covered Person as someone who submits a Declaration, under oath, stating that s/he meets all four (4) parameters below:
- Expects to earn no more than $99,000 in annual income for 2020, or nor more than $198,000 if filing a joint tax return; was not required to report to IRS income in 2019; or received an Economic Impact Payment under Section 2001 of the CARES Act;
- Unable to make full payment to Association due to COVID-19 related hardship such as: substantial loss of income, loss of hours, or increase in out of-pocket expenses which directly relates to hardship;
- Is making “best efforts to make timely partial payments…as close to full payment as the individual’s circumstances may permit” and considering their non-discretionary expenses; AND
- Likely to become homeless or “force individual to move into and live in close quarters” with others.
The Executive Order requires that the tenant must be provided a copy of the Declaration prior to service of a Notice of Termination of Tenancy (i.e., 5-day Notice). A copy of the Declaration can be downloaded here. If you have tenants who are delinquent in rent, we recommend that you deliver the Declaration to the delinquent tenant and allow them 7 – 10 days to return it. If the tenant does not return it, the landlord can serve a Notice of Termination of Tenancy. If the tenant returns the Declaration and you would like our office to review it to determine whether it complies with the Executive Order, please email it to firstname.lastname@example.org. We charge $50 per review.
Even if a tenant is deemed a Covered Person, the Executive Order clearly states they are not relieved of their financial obligation to pay rent. Additionally, the Executive Order allows a landlord to evict a Covered Person when that “person [or owner’s tenant] poses a direct threat to the health and safety of other tenants or an immediate and severe risk to property.”
Keep in mind that county sheriff departments are still not allowed to evict residential tenants/owners unless they are “a direct threat to the health and safety of other tenants or an immediate and severe risk to property.” Nonetheless, this new Executive Order will allow landlords to begin the process of obtaining possession of a home or unit for unpaid rent.
Commercial evictions are no longer subject to the eviction moratorium.
This article is being provided for informational purposes only. This article does not constitute legal advice on the part of Keay & Costello, P.C. or any of its attorneys. No client or any other individual or entity should rely on this article as a basis for any action or actions without confirming the advice. If you would like legal advice regarding any of the topics discussed in this article and/or recommended procedures for your entity or business going forward, please contact our office.