Illinois House Bill 3564 (HB3564), introduced by Representative Nabeela Syed (IL-51), aims to reshape tenant-landlord dynamics in the state by prohibiting certain fees and strengthening housing rights. The bill, currently under review by the House Rules Committee, represents a significant step toward addressing tenant affordability and preventing discriminatory practices in housing.

Key Provisions of HB3564

HB3564 proposes amendments to the Illinois Landlord and Tenant Act and the Illinois Human Rights Act, focusing on tenant protections and equitable access to housing:

• Ban on Move-In Fees: Landlords would be prohibited from imposing move-in fees or charging for application processing, reviewing, or acceptance. Nursing homes and similar institutions are exempt from this provision.
• Late Rent Fee Restrictions: The bill limits late payment fees to $10 for rent amounts up to $1,000 and 5% for amounts exceeding $1,000. Late fees can only be applied if rent is unpaid for more than five days past the due date.
• Prohibition on Fee Renaming: Landlords cannot rename or reclassify fees to circumvent these restrictions.
• Void Lease Provisions: Any lease terms attempting to waive or limit these protections would be deemed unenforceable as against public policy.

Housing as a Fundamental Right

HB3564 also amends the Illinois Human Rights Act by affirming that access to housing is a fundamental human right. It seeks to prevent discrimination based on familial status or source of income in real estate transactions. Notably, it redefines “source of income” to prohibit landlords from requiring credit checks or move-in fees as alternatives to security deposits.