Of the generation of new laws there is no end. A new law scheduled to take effect in January of 2025 will be of special interest to tenants and landlords. Landlords, in particular, should pay attention because failure to comply with this new law could be quite costly!
The new law requires landlords to disclose flooding to new tenants. The law applies to every landlord who leases a lower-level unit. Residential or commercial. Every lower-level lease must include a disclosure by the landlord in writing prior to the signing of the lease whether the unit or any portion the property containing the unit has experienced flooding.
This disclosure must be made part of every written lease and every written renewal of lease, and it must be signed by both parties. Even if the landlord is not aware of any flooding in the last 10 years, the landlord still must provide a statement to that effect.
The disclosure must comply with the form of notice laid out in the statute. The language includes notice to the tenant that insurance policies may not cover damage or loss incurred in a flood. The notice should encourage the tenant to examine their policy to determine whether they are covered, and it should inform the tenant that insurance coverage may be available through FEMA. The notice should also include a link to the Illinois Department of Natural Resources website and FEMA.
Failure to include this statutorily required notice exposes a landlord to substantial risk. If a landlord does not disclose that the property is in a special flood hazard area, the landlord will be liable to return all rent and fees paid in advance of the notice. If a landlord fails to disclose that flooding has occurred in the past, a tenant can terminate the lease, demand return of all rent and fees paid to date, and sue to recover damages for loss to personal property as a result of any flooding.
If you are a landlord, you must include the mandatory disclosure with every lease and lease renewal after January 1, 2025. If you are a tenant, you should be aware of your right to receive the disclosure and know that you may have some recourse if you suffer loss due to flooding if your landlord fails to provide you the proper disclosure. As always, if you have any questions, you should contact a local attorney who handles real estate and landlord/tenant matters.