Sterling approves new residential rental housing code, inspection program

STERLING — The Sterling City Council on Monday unanimously approved an ordinance establishing the city’s new residential rental housing code, which includes a rental property registry and inspection program.

According to the new ordinance, inspections will begin after June 1, 2025, and registration forms and a complete inspection checklist will be developed and provided to all landlords in advance of the implementation of the program.

The new City of Sterling Residential Rental Housing Code is meant to hold negligent landlords and tenants accountable by creating “minimal standards” for rental properties. For years, Sterling has been dealing with rental properties described as having “atrocious” living conditions, some of which the city recently demolished.

City Attorney Tim Zollinger said the city made several changes to the now-approved ordinance following a recent meeting with representatives from the IllinoisREALTORS group, although the two parties did not agree on everything.

IllinoisREALTORS Governmental Affairs Director Neeley Erickson told Shaw Local that her group “was pleased to see that the screen and storm window requirement was removed, the reference to the 2021 International Building Code for substandard conditions was eliminated, property transfer registration was better defined, a clear registration date was established, significant remodeling was included under the new construction section for renovations, and housing providers will now be notified of all violations, including those related to tenants.”

Under the new ordinance, a rental property will now be declared substandard if it fails to meet the minimum standards set by the 2021 International Property Maintenance Code, including any updates or changes.

However, Erickson did not hold back when criticizing “major concerns” and “vague language” still found within the ordinance during Monday’s City Council meeting.

“While the changes will lead to less chaotic implementation, our concerns about vague enforcement mechanisms, tenant displacement and potential fair housing violations remain,” Erickson said. “Once again, I want to be clear that this municipality does not have the authority under state statute or the Illinois constitution to impose a de facto licensing program for rental housing. The Illinois Municipal Code defines what municipalities like Sterling can regulate, and this ordinance exceeds those limits.”

Erickson said Sterling cannot implement the ordinance because the proposed Illinois House Bill HB 1025, which gives municipalities like Sterling the authority to do so, is currently stuck in the House Rules Committee and has not yet been approved.

“Passing this ordinance without statutory authority will invite challenges, waste taxpayer dollars and create unnecessary hardship on housing providers and tenants alike,” Erickson said. “Beyond the legal overreach, this ordinance fails to provide clear, objective standards and instead relies on broad, undefined language that invites inconsistent enforcement, and this is backed up by the city’s comments that they will need to change things on the fly after this ordinance is implemented.”

Zollinger said this was a point where the two parties “agreed to disagree,” referencing the Illinois Municipal League backing the city’s position.

“The IML has certainly given the opinion that they believe you [municipalities] can do this,” Zollinger said. “Other organizations have done the same, or have said the same. If they challenge it, that will sort itself out in court, and we’ll either be told yes or no, but the fact that a bill is pending on a topic doesn’t mean it’s not currently already properly under other statutes.”

The rental housing code

Under the new ordinance, owners will have to register their rental properties with the city and provide their contact information and pertinent information about those properties.

Owners who live at least 50 miles outside of the city will also have to provide contact information for a designated agent at least 18 years of age and who lives or maintains a physical office within 50 miles of the city to receive notices of code violations and/or receive process in any court or administrative enforcement proceeding on behalf of the owner.

Owners will have to register their rental units on or before the date the unit is leased and pay an annual registration fee. Units already under lease will have 180 days from the date the ordinance was adopted to register, and failing to register on time could result in late fees.

The registration fee covers one inspection and one re-inspection per unit, with an additional $25 fee for each extra re-inspection if the owner fails to provide access for a scheduled re-inspection.

Registration fees are good from May 1 to the following April 30 at the following rates:

• Residential rental units 1-4: $50
• Residential rental units 5-10: $75
• Residential rental units 11-15: $100
• Residential rental units 16-40: $150
• Residential rental units 41 and above: $200 plus $5 for each additional unit.

According to the code, owners are responsible for their properties' general maintenance, including promptly addressing any interior or exterior repairs, pest infestations and substandard conditions.

Vacant rental units cannot be rented unless they are clean, sanitary and fit for human occupancy. Owners must also provide adequate garbage containers and trash-removal services for those premises and maintain the safe and sanitary conditions of common areas in any multiple-family dwellings other than duplexes.

Tenants are responsible for maintaining clean, safe and sanitary living conditions in their rental unit, including keeping the unit in good condition, properly disposing of trash and avoiding any damage to the property. They are also expected to act in a way that does not disturb their neighbors or create conditions that could be considered a nuisance under local laws and ordinances.

Anyone found in violation of the code can be fined between $100-$750 for each day the violation continues. Each day a violation continues is treated as a separate offense, and intentionally submitting false information on a registration form can result in an additional fine of $50-$750.

Rental inspections

Rental units will undergo an initial inspection, with subsequent inspections to follow depending on initial findings. However, if the unit is occupied, the tenant has the right to refuse the initial inspection, and the owner can refuse if the unit is unoccupied. The city could still inspect units with alleged violations by obtaining an administrative warrant, or if the owner or occupants request one.

If the owner or tenant does refuse inspection, the ordinance goes on to state that “in support of an application for an administrative warrant, the City may offer, and request that the court consider the following factors, along with such other matters that the court deems relevant, in its determination as to whether a warrant should be issued,” including:

• Eyewitness reports of violations
• Citizen complaints
• Permanent resident complaints
• Plain view violation or violations
• Violations apparent from city records or from other reliable sources
• Deterioration of the property, including, but not limited to, observed exterior violations or conditions demonstrating or suggesting inadequate overall property maintenance
• The age of the property
• The nature of any reported or plain view violation, including, but not limited to, potential effects on the health or safety of occupants of the public
• Conditions of similar properties in the area
• Whether or not any prior inspections have been conducted, and, if so, the amount of time elapsed since any prior inspection

Inspection notices will include the time and date of inspection, the name and agency of those conducting the inspection, the purpose of the inspection and information on the owner and occupant’s right to object to it, and owners will be notified before the inspection date.

A Certificate of Occupancy will be issued if a property passes inspection and complies with all city codes, and the registration and fees are completed.

Owners will be notified of any violations found during the inspection and be given time to fix the issues. If those violations are corrected by the specified time, the Certificate will be issued, but if not, the city can take action to enforce compliance, including preventing occupancy of the rental unit.

Following inspection, rental units will be graded and receive one of the following classifications:

• Class A: The residential rental unit is in excellent condition and has no violations of applicable city codes requiring re-inspection. These units would be inspected every four years.
• Class B: The residential rental unit has minor violations of applicable city codes requiring re-inspection, but the violations do not pose an immediate threat of danger to the life, health and safety of the occupants of the unit. These units would be re-inspected every two years.
• Class C: The residential rental unit has multiple or significant violations of applicable city codes requiring re-inspection, but the violations do not pose an immediate threat of danger to the life, health or safety of the occupants of the unit. These units would be re-inspected yearly.
• Class D: The residential rental unit has serious health and safety violations that pose a threat to the health and safety of the occupants or of the public. The Building Official/Inspector shall not issue a Conditional Certificate of Occupancy and may issue a condemnation order. These units would be inspected again in 60 days and occupancy would not be allowed.

Rental units of newly built properties will not be inspected again for five years after a Certificate of Occupancy is issued unless a complaint is made about the property.

Exempt property types include owner-occupied, single-family homes and portions of owner-occupied multi-family buildings, licensed nursing home facilities, hotels, motels and other lodging that rents for 30 days or less, not including short-term rentals like Airbnb. Properties owned by government agencies or public housing authorities are also exempt, provided they are subject to inspection by other agencies.

City officials are proposing a “rough budget” for the rental inspection program, including $76,009 for personnel pay and $70,050 for materials and services, which includes a truck for the rental inspector, two desktop computers, a computer dock for the truck and an iWorQ software module to help manage the program.