§ 5-10-020 — Definitions

5-10-020 Definitions.

For purposes of this chapter, the following definitions apply: “Affordability restrictions” means limits on rents and income for persons or families seeking to qualify as tenants in the rental property. “Affordable housing” means that the mean value of all rents paid by tenants in the rental property shall not exceed 60 percent of area median income, and that the gross household income of new tenants in the rental property shall not exceed 80 percent of area median income. “Affordable housing restrictive covenant” means an agreement between the purchaser and the City in which the purchaser agrees to affordability restrictions memorialized in an affordability covenant, in a form approved by the Commissioner, enforceable by the City as a third party beneficiary. The affordability restrictions in each affordable housing restrictive covenant shall extend for a period of not less than thirty years from the sale, subject to such exceptions as the Commissioner may provide for by rule. "Commissioner" means the Commissioner of the Department. "Department" means the Department of Housing or any successor agency. “Good faith negotiations” means: (a) whether the party or any of its agents knowingly made any misrepresentations of material fact to the other party or of its agents during the negotiation period; (b) whether the party or any of its agents failed to provide in a timely fashion any information legitimately requested by the other party or any of its agents during the negotiation period; (c) whether the party or any of its agents failed to allow in a timely fashion any legitimate inspection of the property requested by the other party or any of its agents during the negotiation period; (d) whether the party or any of its agents engaged in any other conduct that would constitute a lack of good faith under the standard imposed by the Uniform Commercial Code; and (e) whether the party or any of its agents engaged in any other conduct that displays a price adjustment(s) that would substantially interfere with the tenants or tenants association rights under this chapter. “Just cause eviction” means any eviction for serious or repeated violations of the terms and conditions of a lease or occupancy agreement, or for violation of applicable federal, state or local laws or for other good cause. “Material change” means any change in contract terms that result in a new purchaser, terms and conditions changes based on the condition of the property, or a change in asking price of 10% or more from the original listing price. “Owner” means the person(s), firm, partnership, corporation, trust, organization, limited liability company or other entity, or its successors or assigns, that holds title to a rental property. “Public funds” means any financial support in the form of loans, grants, or other funds provided directly by the City of Chicago or by an authorized community partner using City funds. “Purchaser” means a party who has entered into a purchase contract with an owner and who will, upon performance of the purchase contract, become the new owner of the rental property. “Rental property” means any occupied residential rental building, or a group of residential rental buildings operated as one entity, within the areas shown in Exhibit B. Rental property does not include: (a) “assisted housing” or an “assisted housing development” or a “development”, as those terms are defined in the City of Chicago Affordable Housing Preservation Ordinance, Section 2-44-120; (b) housing accommodations in any hospital, convent, monastery, extended care facility, asylum or not-for-profit home for the aged, temporary overnight shelter, transitional shelter, or in a dormitory owned and operated by an elementary school, high school or institution of higher learning; student housing accommodations wherein a housing agreement or housing contract is entered into between the student and an institution of higher learning or student housing wherein the institution exercises control or supervision of the students; or student housing owned and operated by a tax exempt organization affiliated with an institution of higher learning; (c) public housing units managed by the Chicago Housing Authority. “Rental unit” or “unit” means a room or suite of rooms designed, occupied or intended for occupancy as a separate living quarter with cooking, sleeping and sanitary facilities provided within the unit for the exclusive use of the occupants of the unit. “Sale” or “sell” means an act by which an owner conveys, transfers or disposes of rental property by deed or otherwise, whether through a single transaction or a series of transactions, including: (i) transfer of title to rental property; (ii) transfer of a majority interest in owner; or (iii) lease of rental property for more than 7 years. “Tenant” means a natural person entitled by written or oral agreement or by sufferance to occupy a rental unit to the exclusion of others, and who is residing in a rental unit at the time of a notification under Section 5-10-060(a). If more than one tenant is listed on a lease any such tenants may exercise the rights granted under this chapter. “Tenant association” means an association of tenants, whether incorporated or not, for which (a) written consent to forming a tenant association has been given by tenants representing (i) at least 75 percent of the occupied units in a rental property with five or more units, or (ii) at least 50 percent of the occupied units in a rental property with four or fewer units, and (b) the tenants agreeing to participate in the tenant association shall signify their consent to form a tenant association by signing a form provided by the Department. The percentage shall be calculated based on the number of occupied rental units in a rental property rather than the number of individuals listed on leases as tenants. Tenants agreeing to participate in a tenant association shall signify their consent to form a tenant association by signing a form provided by the Department. Any reference to a “tenant association” in this chapter shall be deemed to include any third party or assignee under Section 5-10-080. “Third-party purchase agreement” means an arm’s length third-party agreement whereby an owner agrees to sell a rental property, including, without limitation, a purchase and sale agreement, contract of sale, purchase option or other similar instrument. “Title” means a legal or equitable ownership interest in a rental property; or a legal, equitable, or beneficial interest in a partnership, limited partnership, corporation, trust or other entity that has a legal or equitable ownership interest in a rental property. (Added Coun. J. 9-9-20, p. 20074, § 10; Amend Coun. J. 9-15-25, p. 31868, § 7)