The controversial Illinois HB3564 is back in motion, and this time, the stakes are higher than ever. According to recent legislative updates and alerts from industry groups, the State Senate may take up the bill as early as next Tuesday, October 28th, during the General Assembly’s fall veto session.
If passed, this IL HB3546 could significantly impact how landlords, property managers, and housing providers operate across the state.
What Illinois HB3564 Proposes
Originally introduced in early 2025, HB3564 (known as the “Rental Fee Transparency and Fairness Act” ) includes several sweeping changes to the rental market:
Caps or eliminates many common fees, including move-in and application fees.
Limits security deposits to one month’s rent.
Requires installment payment options for allowed fees.
Mandates detailed disclosure of all costs, including utilities, in the lease.
Restricts the ability to collect both a security deposit and a separate move-in fee.
While supporters frame it as a measure to increase transparency and affordability for tenants, many property owners argue that the bill dramatically limits their ability to manage properties, cover real costs, and maintain housing stock. While many support different restrictions and regulations in the market, this is seen as unnecessary red tape for everyone involved.
Illinois HB3546: What’s Changed
Here are key updates and changes in the legislative process for HB3564 since May 2025:
On May 13, Senate Committee Amendment No. 2 was filed by Sen. Michael Simmons and referred to assignments.
On May 28-29, the bill was placed on the Senate Calendar for 2nd and 3rd readings, and the Senate Committee Amendment No. 3 was adopted.
On May 30-31, Senate Floor Amendments No. 4 and No. 5 were filed and referred to assignments.
On June 2, the Senate Committee Amendment No. 2 and other procedural actions were logged, indicating the bill remains in committee/assignments.
On October 14, the bill was placed on the Senate Calendar for the 3rd Reading after being marked “Engrossed”.
On October 22, Senate Floor Amendment No. 6 was Referred to Assignments.
Why It Matters Now
The bill had previously stalled in the Senate over the summer, but new amendments have revived it. With the Illinois General Assembly already facing intense pressure to address budgetary and infrastructure issues during the short veto session, this vote could move quickly and with minimal debate.
If passed, these changes would directly affect property management operations, cash flow, leasing structures, and tenant screening practices statewide. That’s why we are urging all property owners and industry professionals to urge their Senators to vote NO on HB3546.
What Industry Leaders Are Saying
Organizations like Neighborhood Building Owners Alliance and Chicago brokerages such as Pearson Realty Group, have issued urgent calls to action, warning that IL HB3564 would:
Undermine the ability of small and mid-sized owners to maintain properties.
Limit financial flexibility to cover turnover and maintenance costs.
Create compliance burdens with rigid fee structures and disclosures.
How You Can Take Action
Illinois lawmakers need to hear from housing providers before this bill reaches the Senate floor. Contact your State Senator today and urge them to vote NO on HB3564.
The Neighborhood Building Owners Alliance has provided an easy-to-use form that will send a pre-written opposition email to your State Senator. We recommend that you personalize your message and share how this legislation would impact your properties, operations, or neighborhood housing stock. Fill out the form now and find your State Senator here.
