February 10, 2014

Chicago Board of Realtors Inc. v. City of Chicago - 819 F.2d 732 (1987) - US Court of Appeals for the 7th Circuit

FACTS: Chicago City Council enacted an ordinance which was not rent control but codified IWH, Landlord responsibilities and Tenant rights.  It was challenged by Landlords.

HISTORY: District Court affirmed as did Court of Appeals.  Opinion focused on constitutional analysis but also touched on some policy issues.

ISSUE:  Good economic policy?

HOLDING: No

RATIONALE:

1) Forbidding Landlord to change rates at market rates doesn't seem to improve health, safety, or welfare.

2) It reduces resources of Landlords to improve housing

3) Landlord will screen applicants more carefully b/c cost of deadbeat will be higher

4) Holding security deposits in-state only seems to benefit local banks in a form of economic protectionism.

5) Poor lose b/c richer, middle class will become the attractive tenants.