There is a new twist on security deposit interest this year. The Section 5-12-080 of the CRLTO requires Chicago landlords with rentals covered by the ordinance to pay interest on security deposits at the rate set by the City (the same applies to Evanston). That rate, for 2009, is 0.12%.
In addition, the State of Illinois also has a law that applies to interest. The Illinois Security Deposit Interest Act is applicable to all landlords of residential real property containing twenty five (25) or more units in a single building or a complex of contiguous parcels. That interest rate, for 2009, is 0.25%.
As a result, a Chicago (or Evanston) landlord, covered by the Illinois Security Deposit Interest Act (ie. one with 25 or more units) must actually pay the State of Illinois rate rather than the Chicago rate! The penalty for violation of the ISDIA is a bit different from the Chicago ordinance, but it is a penalty nonetheless. Don't get caught with this mistake in 2009!
2 comments:
How does the CRLTO define owner occupancy? If an owner maintains a room in one of the apartments and has a house somewhere else does that qualify as owner occupied? In other words can you live at the property and somewhere else at the same time?
Section 5-12-030(c) defines "owner" as a person "in whom is vested all or part of the legal title to property, or all or part of the beneficial ownership and a right to present use and enjoyment of the premises." This issue is further explored in the case Detrana v. Such, 368 Ill. App. 3d 861, 869-870 (1st Dist. 2006).
Whether a property is "owner occupied" is a question of fact to be determined at trial. Generally, however, a person can only "occupy" one place at a time. In addition, storing belongings at a property does not usually constitute occupancy. Could other arguments be made such as a relative of the owner living in the property? Possibly, but it is likely that the courts will make a determination on a case by case basis based on the facts.
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