Tenants, council raise alarm after portfolio sale; buyer says rent hikes tied to repairs

Tenants and council members pressed city staff on Sept. 2 over notices sent after the recent sale of a large residential portfolio; the new owner told the council it will inspect units and said it will not impose rent increases until repairs are completed.

The issue became public after residents and neighborhood organizers held a community meeting and posted concerns online that month. City Manager Jeff Boyer described outreach efforts and said staff has begun receiving tenant inspection requests; Code Enforcement reported three inspection requests since the portfolio transfer and staff said landlords who have not registered with the city face fines and enforcement.

The buyer’s spokesman, Mobi Parak, identified himself as a property manager for Pied Piper/Freeport Portfolio and said the company has not issued 30‑day eviction notices. “I have not given anybody any 30 day notices. I have not given anybody eviction notices,” Parak said. He said field staff visited dozens of units, that Pied Piper is offering temporary accommodations while work is done in some cases, and that no market‑rent increases will be enforced before repairs and lease agreements are completed.

City Manager Boyer and attorney Steve Cox summarized the legal limits on municipal action. Cox cited the Illinois Rent Control Preemption Act, telling the council that “a unit of local government shall not enact, maintain or enforce any ordinance…that would have the effect of controlling the amount of rent charged.” He said municipalities therefore cannot adopt city‑wide rent caps; instead the city’s available tools are inspections, code enforcement and requirements tied to registration or licensing of rental units.

Council members and speakers pressed for practical steps the city can take. Alderman Stacy urged immediate protections for tenants and proposed an informational requirement or extended notice period; she later moved (and then withdrew) a motion for a special council meeting to address housing fallout. Alderman Clem and others urged balanced solutions that avoid imposing undue burdens on landlords while protecting tenants.

Manager Boyer and staff outlined steps already underway: increased enforcement of the city’s rental registration program (staff said about 332 unit owners will face scheduled hearings and potential fines for failing to register), use of the code‑inspection process when tenants request it, and continuing outreach to tenants about inspection and relocation options. Boyer said staff had mailed and personally delivered letters to month‑to‑month tenants inviting inspections and in‑person discussions.

Public commenters and tenant advocates urged the council to pursue policy changes the city can legally adopt, such as increased notice periods for rent increases, clearer tenant inspection access, and expedited enforcement for unregistered landlords. Several speakers urged a minimum 60‑day notice for rental changes; others asked the council to convene a council study session or Committee of the Whole to develop an action plan ahead of winter.

Ending: Council did not adopt a new rent ordinance during the meeting. Instead, staff reiterated existing enforcement options (rental registration, code enforcement and tenant inspections) and the mayor and manager invited aldermen to place a housing item on an upcoming Committee of the Whole agenda to explore legal options and emergency responses. Councilmembers asked staff to prepare specific legal questions and policy options for the next discussion so the council can consider ordinances or other responses consistent with state law.