Publications: Amendment to Chicago’s Vacant Building Ordinance

In July, Chicago’s City Council passed an ordinance amending the Vacant Building Ordinance, Chapter 13-12 of the Municipal Code, expanding the definition of “owner” to include a mortgagee (or assignee or agent). The Ordinance now requires mortgagees to pay for maintenance and upkeep on vacant properties before the lender officially takes title and becomes the real owner. To be liable under the Ordinance, a mortgagee does not have to a foreclosure action pending, but rather, merely record a mortgage against vacant property. According to the Ordinance, responsibilities of mortgagees include, but are not limited to registering the building as vacant, enclosing and securing the building, cutting the grass, shoveling the snow, interior maintenance of the building and dealing with complaints tied to the property. The penalty for violating the Ordinance is a fine of not less than $500 and not more than $1,000 for each offense. Every day that a violation continues constitutes a separate and distinct offense. Chicago is not the first major city to pass such a law; Los Angeles also passed a similar city ordinance earlier this year. The growing concern for lenders is that other municipalities will follow suit.

For more information please contact Richard A. Ungaretti at or 312.977.4430.