How Chicago’s New Housing Ordinance Is Disrupting Landlords—and What You Can Do About It

In March 2025, Chicago launched the Northwest Housing Preservation Ordinance—a sweeping policy aimed at protecting affordable housing in rapidly gentrifying neighborhoods like Logan Square, Humboldt Park, and Avondale. While its intentions are clear, its execution is already creating serious challenges for landlords, investors, and everyday property owners.

With delayed property sales, legal ambiguity, and added financial stress, the ordinance may be doing more harm than good—and for many owners, it’s raising concerns about long-term investment viability across the city.

If you own rental property in Chicago, now’s the time to pay attention.

At Hemlane, we help owners stay ahead of policy shifts, automate their rental operations, and keep repair coordination running 24/7—so you can focus on profitability, not paperwork. Here's what’s happening—and how to stay in control.

What the Ordinance Actually Does

Chicago’s ordinance applies to a six-square-mile area and includes:

• Demolition fees quadrupled – $20,000 per unit or $60,000 per building
• Tenant Right of First Refusal – Tenants must be notified 60–90 days in advance of a sale, and can match offers up to 120 days after one is accepted
• Extensive recordkeeping – Owners must disclose tenant information, unit counts, pricing, and more for three years
• Additional disclosure – Financials such as rent rolls and vacancy rates must be shared with tenants and their designees

Landlords and Lawmakers Are Already Backtracking

Just months after its implementation, two aldermen who supported the ordinance—Felix Cardona (31st Ward) and Gil Villegas (36th Ward)—have pushed to exempt their wards.

“You’re messing with [owners’] retirement,” said Alderman Cardona, who cited complaints from Avondale residents unable to exit appreciated investments in a timely manner.

Legal experts and real estate attorneys have also flagged the policy’s many gray areas. Financing delays, mortgage covenant risks, and title insurance hurdles are just some of the unintended consequences now coming to light.

How Property Owners Are Adapting

Despite the policy hurdles, proactive landlords are adjusting. Here’s how—and how Hemlane can help:

🔄 1. Planning for Extended Sale Timelines

Sales that used to take 30–60 days now stretch up to 210 days. Hemlane helps landlords document tenant communications and maintain digital timelines to meet compliance deadlines.

📜 2. Navigating Legal Ambiguity

With shifting rules and no clear enforcement framework, attorneys are essential—but so is centralizing your property documentation. Hemlane keeps everything—from leases to sale notices—in one place.

💸 3. Recovering Lost Value Through Rent Adjustments

With property values suppressed by the ordinance, some landlords are forced to increase rents to maintain yield. Our platform automates lease renewals and pricing updates based on market data—without disrupting tenant experience.

🔧 4. Maintaining Properties Under Financial Pressure

When sales stall, cash flow tightens. Hemlane's 24/7 repair coordination ensures maintenance continues without adding more admin to your plate.

🏃‍♂️ 5. Redirecting Investments Elsewhere

Some investors are avoiding the impacted zones altogether. Real estate professionals—like Braddock Investment Group—are helping clients reallocate capital to less restrictive markets or re-strategize for local compliance.

What the Ordinance Gets Wrong

🚧 It Doesn’t Address Execution

From unclear tenant association rules to undefined enforcement mechanisms, the ordinance leaves landlords and tenants in a fog.

🏦 It Complicates Lending and Financing

Delayed sales timelines can violate mortgage covenants or trigger refinancing penalties. These financial shocks ripple downstream—often leading to rent hikes or deferred maintenance.

🏗️ It Discourages New Investment

Instead of promoting affordable housing, it creates roadblocks to building, buying, or selling units. That means fewer upgrades, fewer transactions, and—ironically—fewer affordable units.

Could This Policy Go Citywide?

Yes—and quickly.

The ordinance was based on smaller pilot programs from Pilsen and The 606. Chicago’s aldermanic prerogative means each alderman can implement similar laws in their ward without a citywide vote.

As investor Brie Schmidt Zdravkovic warned: “This could very well get away from us and be everyone’s problem.”

Even if you don’t own property in one of the affected neighborhoods today, staying proactive is critical. Hemlane helps you stay nimble with flexible services designed for owners and investors—not just large-scale property managers.

What Should Chicago Be Doing Instead?

Rather than layering on regulation, city leaders should focus on increasing housing supply and supporting responsible ownership. Proven alternatives include:

• Zoning reform – Allowing more multi-family development by-right
• Streamlined permitting – Faster rehab and redevelopment approvals
• Tax incentives – Rewarding landlords who keep units affordable or reinvest in their properties

The Hemlane Advantage: Stay in Control, No Matter the Policy

Whether you're selling, holding, or reinvesting, Hemlane gives you the flexibility to operate under changing conditions:

• Advertise your units on premium sites to find tenants faster
• Automate rent collection, lease renewals, and communication
• Coordinate repairs around the clock without hiring a full-time property manager

Even under complex local laws, you can stay organized, compliant, and profitable with the right support behind you.

Final Thoughts

Chicago’s Northwest Housing Preservation Ordinance may have started with good intentions, but it risks harming the very communities it seeks to protect. For small landlords and independent investors, the policy introduces delays, uncertainty, and financial risk.

Don’t wait for similar ordinances to come to your neighborhood. With Hemlane, you can keep control of your rentals, adapt faster, and avoid getting caught in red tape.