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Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast
Chicago landlords don’t need me to tell them this: every time the City Council passes another housing ordinance, it creates new layers of risk and confusion for housing providers. The latest? The Jackson Park Housing Pilot Program Ordinance, which includes a Tenant Opportunity to Purchase / Right of First Refusal program in the Jackson Park and South Shore neighborhoods.
If this sounds familiar, that’s because it is. Last year, City Council rolled out a similar “pilot program” for parts of the Northwest Side, and now we’re seeing the same concept expand further into the city.
Read more on the Northwest Preservation Ordinance
The idea may sound straightforward on paper: give tenants the right of first refusal to purchase the building they live in if the owner decides to sell. But when you dig into how this plays out in real transactions, it raises some serious problems for property owners, buyers, and even tenants themselves.
Why Landlords Are Concerned
Here’s the reality:
Canceled Transactions – In Logan Square, we’ve already seen sales fall apart because of the tenant right of first refusal program part of Northwest Side Preservation Act. Buyers walk away, lenders hesitate, and sellers are left holding the bag.
Equity at Risk – Housing providers risk losing equity in their properties if a deal collapses midstream. You could be left with fewer offers and less favorable terms. When buyers have to buy into a riskier scenario, they will not be willing to pay as much in order to offset their risk.
Financing Barriers – Title companies and financial institutions have publicly said these programs complicate closings. Add delays, uncertainty, and litigation risk, and suddenly buyers don’t want to touch these deals.
Tenant Displacement Risks – Ironically, low- to moderate-income tenants can be harmed too. If sales stall, new investment in affordable housing stock slows, and needed upgrades or preservation projects never happen.
The resolution passed by the City Council acknowledges all of this. It specifically calls out that real estate agents, financial institutions, title companies, and property owners have “experienced difficulties in successfully completing real estate transactions” under these programs. That’s not just paperwork, that’s real dollars lost in real neighborhoods.
Hearings Are Coming, and They Matter
Here’s the one bright spot: the Neighborhood Building Owners Alliance (NBOA) and industry partners pushed back, and the City Council agreed to hold hearings on the impact of these programs.
Starting as soon as October, the Housing Committee will hear from:
Title companies
Real estate agents and professionals
Property owners and landlords
Tenant rights groups and unions
Buyers and sellers impacted by canceled transactions
For once, everyone gets equal time to present. That means landlords’ voices can, and must, be heard.
If you’re a housing provider in Chicago and you’ve been burned by these ordinances, a sale lost, a transaction stalled, or equity eroded, this is the moment to share your story. The NBOA is collecting anonymous testimony, and your experience could be critical in showing policymakers why these programs are failing.
Why This Matters for Chicago Property Owners
This isn’t just about one neighborhood. Right of first refusal started as a “pilot program” on the Northwest Side. Now it’s in Jackson Park and South Shore. And if history is any guide, it won’t stop there.
Here’s what landlords should be thinking about:
Marketability of Your Asset – Every time a new layer of red tape is added, it makes your property harder to sell. That impacts valuation.
Investment Incentives – Why would new investors buy in neighborhoods where the city makes transactions unpredictable? Less competition means lower prices for you.
Legal Exposure – If tenants or buyers feel wronged, you could end up caught in costly legal disputes over compliance.
Future Expansion – If this expands citywide, every Chicago landlord could face these risks.
Chicago needs housing policy that encourages investment and preserves affordability, not one that scares off buyers, hampers sellers, and traps tenants in declining buildings.
GC Realty’s Perspective
At GC Realty, we see firsthand how these laws affect transactions. We’ve helped clients navigate everything from the Northwest Side Preservation Ordinance, Cook County RTLO, and the Just Housing Amendment. And every time new regulation comes down, landlords who don’t prepare pay the steepest price, whether that’s lost rent, canceled sales, or compliance fines.
Our message is simple: stay informed, stay compliant, and stay strategic. If you’re worried about how this ordinance could affect your property, now is the time to protect yourself.
If you’re not sure whether your rent is competitive in today’s shifting market, try our Free Rent Analysis.
If you don’t want to deal with the added leasing headaches yourself, consider Tenant Placement. We’ll handle the listing, screening, and compliance so you don’t get caught in legal traps.
What’s Next
The first hearings are expected in October 2025. That means housing providers have a narrow window to organize, share testimony, and push for change.
If you’ve been directly impacted by the tenant right of first refusal pilot programs, consider coming forward. Your story matters. The more evidence City Council sees that these programs harm rather than help, the greater the chance for reform or repeal.
Because here’s the truth: Chicago doesn’t need more policies that sound good on paper but collapse in practice. We need a housing policy that works for everyone, tenants, landlords, buyers, and communities.
Key Takeaways for Chicago Landlords
Right of First Refusal is spreading: from the Northwest Side to Jackson Park and South Shore.
Transactions are at risk: canceled deals, financing issues, and lost equity are all documented outcomes.
Hearings are your chance: landlords and property owners can finally get equal time to be heard.
This could go citywide: ignoring it now could mean bigger headaches later.
Stay ahead: use tools like Free Rent Analysis and lean on professional tenant placement to protect your investment.
Who holds you back?
We’ve shared a lot of information here on investing in real estate locally in Chicagoland. If you live outside the area, it may seem overwhelming for those wanting to invest in the Chicago market. But we really just look at it as a team sport.
Who’s on your investing team? Do you even have a team? GC Realty & Development, LLC has a dedicated team of professionals willing to share decades of experience in all facets of real estate investment. We handle everything from brokerage, leasing, and property management. Whether you hire us or not, we’re happy to provide our resources and expertise.
What gets me up in the morning and keeps me going 12 hours a day is the ability to add value to local area investors in Chicago and beyond! Those who connect with me often hear me say that our goal is to bring value to everyone we come in contact with.
We hope that in return, they will one day hire us for our tenant placement or property management services, refer us to someone they know, or leave a review about our services. We would clearly love all three; however, we’re happy whenever we get the opportunity to help!
Reach out today!
Partner / Co-Host of Straight Up Chicago Investor Podcast
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