Illinois REALTORS® is encouraging members to contact their state representatives and voice opposition to House Bill 2430 which would repeal the Rent Control Preemption Act.
The intent of the law is bad enough: Create rent control in Chicago. But by repealing the Rent Control Preemption Act of 1997 the proposal would by default open up rent control as an option for all home units in the state, not just Chicago.
To tell House members that this is a threat to private property rights, click here.
Illinois REALTORS® has a summary which lists the myriad of reasons REALTORS® (and their clients) should be concerned about rent control. You can find summary here.
Here are a few of the many reasons this is a bad policy:
- Rent control is a disincentive to rental property investment because it caps returns on investments.
- It will reduce the number of rental properties.
- It sends the message that Illinois doesn’t want to develop, rehabilitate or improve its housing stock.
- Property owners will be discouraged from maintaining and upgrading their properties because costs will rise but revenues will be fixed.
- Chicago will lose property tax revenue it can’t afford to lose when property values go down.
- Administration of rent control will require more bureaucracy.
- The bill could encourage an illegal black market for rental property.
The bill is sponsored by state Rep. Will Guzzardi, D-Chicago.
According to Illinois REALTORS®: “Rent control is widely discredited by many if not most economists, and many housing advocates. Rent control is destructive and counterproductive in many ways, is very complicated to administer and would have many unintended consequences.”
Illinois REALTORS® is sending out an email to members with a simple, two-click way to tell lawmakers not to back this bill. If you don’t get the email, click here.