Chicago Just Housing Amendment

JUST HOUSING AMENDMENT MATTERS?

Navigating tenant screening in the Chicago market is complex and most Landlords or Property Managers are not even aware of this law that is set up to protect tenants. The Just Housing Amendment (JHA) has been in effect since 2020, but in 2025, it's clearer than ever that many landlords and property managers still don’t fully understand how to comply with it. I see it all the time, a well-meaning landlord trying to do their due diligence, only to get hit with a Fair Housing complaint because they didn’t follow the proper steps.

So, let’s break it down. Whether you own a three-flat in the Avondale area, manage 100 units in Maywood, or rent a townhome in Schaumburg, understanding the Just Housing Amendment in Cook County is not optional. It’s essential.

WHAT IS THE JUST HOUSING AMENDMENT?

In short, the JHA is an amendment to the Cook County Human Rights Ordinance that limits how landlords and property managers can use criminal background checks during tenant screening. It was created to combat housing discrimination against individuals with criminal records, promoting fair housing access across Cook County.  

There are some positive outcomes that have come from it.  You may know of someone who may have been apprehended with recreational marajuana when he was 19 years old in 2001.  Up until the JHA came out, renters in similar scenarios or that had minor infractions on their records from 10+ years ago would struggle getting an apartment because this was on their criminal record.  In this example it is basically legal to have it and any petty crimes around marajuana is not criminal and results in tickets, no different than parking in a fire zone.  

WHO DOES IT APPLY TO?

If you own or manage rental property in Cook County, including the City of Chicago, this law applies to you.  This applies to Landlords, Property Managers, and real estate brokers as well. There are no exemptions for building size, location, or whether you use a third-party screening service. If you run tenant background checks, especially criminal, you need to comply.

TIMELINE: THE TWO-STEP SCREENING PROCESS

This is where most Chicago property managers get tripped up. The Just Housing Amendment created a required two-step tenant screening process meaning you must do certain steps first and hold off doing the second steps until the first steps are 100% complete and the applicant has passed.

Step 1: Pre-Qualification Review (No Criminal Check Yet)

You’re allowed to review applications based on:

• Income

• Credit history

• Eviction history (non-discriminatory use only)

• Employment

• Rental references

But at this stage, and this is key, you CANNOT run or review the criminal background report.

Step 2: Criminal Background Review (Only After Pre-Approval)

If an applicant passes step one, only then can you proceed to review their criminal background. And even then, you’re not allowed to use everything you find.

WHAT YOU CAN’T USE IN SCREENING:

• Arrests that didn’t lead to conviction

• Sealed or expunged records

• Juvenile records

• Convictions older than three years (unless they meet a narrow list of exceptions)

WHAT YOU CAN CONSIDER (WITH CONDITIONS):

• Convictions within the past three years

• Serious crimes that demonstrate a direct threat to safety or property

But even then, you must give the applicant a chance to provide evidence of rehabilitation before you make a final decision.

HOW THIS AFFECTS DAY-TO-DAY INVESTORS & PROPERTY MANAGERS IN CHICAGO

As an investor or property manager, this changes how you structure your application flow, lease-up procedures, and even your conversations with owners. You need:

• Updated tenant screening policies

• Consistent, documented procedures

• Communication scripts for staff

• A system for pause periods, disclosures, and appeal processes

This isn’t optional. Property owners are relying on you not only to place quality tenants, but to keep them compliant with local law. If you make a misstep, they face the risk of lawsuits and fines.

WHAT THE PAUSE PERIOD MEANS (AND WHY IT MATTERS)

Once you notify the applicant that their background report contains a criminal history that could lead to denial, you must observe a five(5) day pause period. This gives the applicant time to submit mitigating information, such as:

• Evidence of rehabilitation

• Employment or community involvement

• Letters of recommendation

After that five day window, you’re allowed to proceed with a final determination.

DOCUMENTATION REQUIREMENTS (DON’T SKIP THIS)

Whether you're managing in-house or through a third party, documentation is crucial. Here’s what you need to keep:

• Written screening policies and two-step procedure

• Copy of the applicant's background report

• A log of communications regarding the pause period

• Any additional documents submitted by the applicant

• Your final determination notice, with reason

You are required to retain this documentation for at least five (5) years under Cook County rules.

KEY LEGAL REFERENCES

• Cook County Code of Ordinances, Section 42-38

• Cook County Human Rights Ordinance

• Illinois Human Rights Act (cross-referenced)

WHAT HAPPENS IF YOU IGNORE IT?

It’s not just a slap on the wrist. We’ve seen property owners face:

• Fines and penalties from the Cook County Commission on Human Rights

• Tenant lawsuits

• Lease terminations

• Bad press and online reviews that hurt the brand

And often, it’s not because of malice, it’s because they didn’t know. Or they thought their screening company handled it.

LANDLORDS: IT’S STILL YOUR RESPONSIBILITY

Even if you hire a screening company or a third-party leasing agent, you are legally responsible for ensuring compliance. Your vendors are not off the hook either, but if they mess up, the lawsuit still names you.

HOW GC REALTY NAVIGATES THE JUST HOUSING AMENDMENT

At GC Realty & Development, we’ve been refining our processes to ensure every lease-up is 100% compliant with the JHA. Here’s what we do:

• We separate our screening process into two distinct phases

• Our documentation system tracks timing and legal compliance

• Our leasing agents are trained on how to explain the process clearly

• We give applicants a clear opportunity to submit mitigating info for us to review

We also provide additional training to our investors and owners, because understanding the why makes it easier to support the how.

ADDITIONAL TOOLS FOR PROPERTY OWNERS

If you want to stay compliant and informed:

• Mastering Tenant Screening in 2025 - Our deep-dive blog post.

• Free Rent Analysis Tool — Check if your rent rate is aligned with today’s legal and market expectations.

• Chicago Landlord Legal Center — Learn how to avoid violations and navigate ordinances.

FINAL THOUGHTS: ADAPT OR RISK FALLING BEHIND

Chicago landlords and property managers don’t have the luxury of “wait and see.” The Just Housing Amendment is being enforced — and tenants are becoming more informed.

As a Chicago property manager, staying ahead of the curve isn’t just about protecting yourself legally. It’s about showing tenants, owners, and the community that you run a professional, responsible operation.

Don’t wait until a lawsuit forces your hand.

If you want to protect your investment and stay compliant in 2025 and beyond, make sure your screening process reflects the realities of Chicago law.

Have questions? Reach out. This is what we do — and we’re here to help.

Because in this business, how you lease is how you succeed.

This is a lot of information you need to know if you plan to invest here in the Chicago market and it may seem overwhelming but real estate investing in Chicago is a team sport.  Who is on your real estate investing team?  Do you have a team?  GC Realty & Development has a team of resources and we are willing to share all of our 20+ years of experience in both real estate investing and Property Management in the Chicago market.  We will do this whether you hire us or not.  

What gets me up in the morning and keeps me going 12+ hours a day of work is the ability to add value to Chicago real estate investors. If we connect you will here my say our goal of our company is to have value to have everyone we come in contact with and in return we hope one day you will hire us for our Tenant Placement or Property Management Services, refer us to someone you know that needs Tenant Placement or Property Management Services, or I will take a simple 5 Star Google review.  We love the opportunity when we get all 3 from current and aspiring investors we get to help!

Reach out today!

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