OPPOSE HB3564
The Illinois Rental Property Owners Association (IRPOA) is opposed to HB3564. Interfering with legitimate business functions by prohibiting housing providers from utilizing common business practices will drive more mom-and-pop housing providers out of business and drive rent increases.
Mom and pop housing providers are the largest providers of affordable housing in Illinois.
HB3564 will reduce the availability of affordable housing by
Interfering with resident screening: Application fees cover the costs to properly screen prospective residents by covering the expense of background checks, credit reports, and administrative work. Housing providers are expected to provide well-maintained housing for residents who do not disturb their neighborhoods. To meet that expectation, residents must be screened to ensure they will be good neighbors.
Resident screening is complex, requiring a housing provider to comply with a wide array of local, state, and federal regulations. Application fraud is rampant. Screening is costly and time-consuming. Prohibiting the recovery of that expense will either shift the cost to higher rents or cause housing providers to cut corners, hurting both residents and the neighborhoods where housing is located.
Driving up evictions: HB3564 limits late fees, rendering them insignificant. Meaningless late fees encourage late payment. Late fees are common in both the government and private sectors to motivate timely payment. The State charges 2-30% or more in late fees for license plates, income tax payments, and other state fees. Limiting housing providers to 1% is unfair and damaging.
When residents don’t pay on time, housing providers can’t make timely payments for operational expenses like loan payments, utility bills, insurance, and taxes. Housing providers will be faced with either increasing rents to cover penalties caused by late payments or evicting residents who habitually pay late.
Limiting opportunities for residents to obtain housing: Move-in fees are used as a less expensive alternative to a refundable security deposit. A non-refundable fee covers the cost of apartment clean-up, relieving the resident of the obligation to clean their apartment when they vacate. Move-in fees also reduce the cost to obtain housing, creating more options for residents when they are seeking new housing.
The proponents of HB3564 likely believe that eliminating these fees will make housing more accessible for low-income individuals and families. However, the unintended consequences will have the opposite effect. The availability and quality of affordable housing in Illinois will be reduced.
We ask that you VOTE NO TO HB3564.
Paul Arena
Illinois Rental Property Owners Association
Director of Legislative Affairs
815-243-2924