Illinois lawmakers are kicking around a pair of bills that would give renters a formal first crack at buying their apartment buildings before owners can sell to outside investors. Backers say the proposals could slow displacement in fast-changing neighborhoods and keep long-time tenants rooted in place, while landlords and real estate groups warn the rules would tangle routine sales and scare off lenders. The fight is unfolding alongside a broader state housing push that mixes new tenant protections with big-picture development reforms.
How The Bills Would Work
Two measures, SB 3674 and SB 3762, would create a statutory right of first refusal for tenants whenever an owner offers a multi-unit rental property for sale. According to the full text on the Illinois General Assembly, SB 3674, introduced by Sen. Rachel Ventura, gives tenants' associations 60 days to sign a purchase contract that matches a bona fide third-party offer. If the owner later agrees to sell for a price at least 20 percent below the original notice, tenants would get an additional 10 days to step in at that lower amount.
SB 3762, carried by Sen. Mike Simmons, sets up a different timeline by building size. Owners of properties with five or more units would need to provide tenants 60 days' advance notice before listing, while smaller buildings would trigger a 30 day notice period. The proposal caps required earnest money at 5 percent of the sale price and establishes financing windows of 120 days for larger buildings and 60 days for smaller ones.
Local Precedents
Lawmakers are looking closely at Chicago, which has already rolled out a neighborhood-level version of tenant purchase rules. The Northwest Side Housing Preservation Ordinance, approved by City Council in 2024, sets up a tenant right of first refusal in parts of the 606 corridor and links that right to demolition surcharges and other anti-displacement tools, according to WBEZ.
Since the ordinance took effect, tenant advocates and property owners have sparred over timelines, financing hurdles and the nuts and bolts of actually transferring buildings to resident groups, per an overview from the Chicago Association of REALTORS®.
What Lawmakers Heard In Springfield
A legislative subcommittee in Springfield took testimony on the statewide bills last week and logged firm opposition from real estate lobbyists as the measures were aired, according to The Real Deal. "[Tenants] can wake up to a sale and suddenly face rising rent, redevelopment or displacement with no opportunity to remain," Sen. Rachel Ventura told lawmakers, as reported by the outlet.
Industry representatives countered that layering on new timing rules and technical steps could rattle lenders and potential buyers. Tom Benedetto of Illinois REALTORS® argued the proposals would inject "additional uncertainty for tenants, nearby residents, sellers and buyers," language highlighted in the same coverage.
Why Now: Supply, Private Equity And Politics
Supporters frame the right of first refusal bills as a direct response to rising rents and an uptick in investor acquisitions, especially by larger firms. They see the measures as part of a wider strategy to keep existing residents in place while the state simultaneously tries to add homes to the market.
Governor JB Pritzker’s Building Up Illinois Development (BUILD) agenda, which Illinois REALTORS® endorsed at their April conference, includes moves to legalize accessory dwelling units and relax certain zoning rules, according to the trade group's release. Sen. Ventura and other sponsors have pitched parts of their tenant package as a check on private equity driven purchases that critics say squeeze out affordable options, per a press release from her office.
Legal Mechanics And Next Steps
Both SB 3674 and SB 3762 spell out enforcement tools that would let tenants seek civil remedies if owners skip the notice and offer process, and they describe how tenants can form associations and document compliance, according to bill summaries on LegiScan. Even supporters acknowledge that the real test will come in the details, including how groups of renters navigate appraisals, secure financing and coordinate across dozens of households.
The proposals still have a long slog ahead. Sponsors must guide the bills through additional committee hearings, negotiate amendments and win floor votes before anything lands on the governor’s desk, per Capitol Fax. For now, tenant groups and industry lobbyists are gearing up for a drawn out fight over who gets first shot when a building goes on the block.
