STERLING – Rental property owners are expressing their concerns over discussions of a proposed residential rental housing code that, if approved, would create a citywide rental property registry with enforceable “minimal standards” for rental properties, and fines for negligent owners and tenants.

The Sterling Residential Rental Housing Code was discussed Oct. 21 at a Sterling City Council meeting, where Neeley Erickson, governmental affairs director for Illinois Realtors, said the ordinance “is not ready to go.”

“Municipalities want to be as direct and clear in the written language as possible because they don’t want to enter into any type of legal action in the future,” Erickson said. “It’s best to do the due diligence early to craft it the best that you can, and then look at it as you move forward.”

Erickson said that without making changes to the ordinance, it could violate state statutes.

“Yes, the city can inspect rental units for health and safety, but under state statute, they do not have the ability to license housing providers,” Erickson said. “That’s what this ordinance is doing. It’s hinging whether or not owners can rent a property on that inspection. The city can inspect the property, issue fines and fees, and take legal action against the housing provider, but they cannot hinge it on an occupancy permit.”

Erickson said the city sent her a draft copy of the rental housing code for input.

“I sent them a letter outlining concerns with the ordinance,” Erickson said. “We provided reasons as to why there was a problem with a section. We would be happy to help them as they move through the process. We work across Illinois, and these ordinances are not new to us.”

Substandard conditions and an aging housing stock

One of Erickson’s concerns was the definition of “substandard conditions.”

“Between 1950 and 1979, Sterling had its biggest construction boom, with over 49% of the housing stock created at that time,” Erickson said. “The city is saying that your housing will be substandard if it doesn’t meet the minimum qualifications of the 2021 International Building Code. That would eliminate over half of Sterling’s housing stock because it was not built to those codes.”

Sterling’s consulting planner, Dustin Wolff, presented study data during a City Council meeting in August that provided current snapshots of Sterling’s housing picture that back Erickson’s concerns:

• According to the study data, 78% of Sterling’s housing stock was built before 1980.
• Sterling currently has a total of 7,350 housing units. Sterling’s population is 14,508 people, who live in 6,532 households. There is an 11% vacancy rate. Of the 6,532 household residences, 38% are renter-occupied, according to 2023 data from the U.S. Census Bureau.

“All those new codes are supposed to focus on new construction,” Erickson said. “They’re not supposed to be retroactive standards for housing, especially housing that is decades old.”

Rock Falls Mayor Rod Kleckler, who also is president of the Sauk Valley Landlord Association, said the ordinance is too wide-sweeping and unduly affects responsible rental owners in the city’s pursuit of problem properties.

“If we are good landlords, then why do we need to be a part of what the city needs to do?” Kleckler said. “If someone gets caught speeding, I don’t have to pay for extra enforcement. Why should this be any different?”

Subjective code interpretation and enforcement

Erickson said the ordinance lacks a clear checklist with universal standards for the rental inspectors, leaving them open to subjective enforcement.

“What is ‘inadequate electricity?’” Kleckler said. “I’ve asked electricians, and they don’t know what that means. So, how are you going to take me to court and charge me up to $750 a day for a code violation? How can I prevent it if no one other than a code enforcement officer knows what the enforcement of the day is?”

Sterling Building and Zoning Superintendent Amanda Schmidt said the city is willing to work toward refining the ordinance.

“We know the ordinance isn’t ready, and we’re not ready to pull the trigger,” Schmidt said. “We’re going to go through all of these concerns with the city attorney and work through it. Codes, in general, are all interpretations. Our building codes, our property maintenance codes, it’s an interpretation of what’s written. So, there could be a situation in which one inspector might make a different call than another.”

However, should the ordinance come to pass, Schmidt said the city would provide rental owners with a specific inspection checklist.

“We would make sure all of the landlords know exactly what we’re going to look for,” Schmidt said. “They’ll receive a copy of the checklist that we’re going to work off of ahead of time so that we’ll all be on the same page.”

Schmidt said the city still is open to input and is trying to find a fair and equitable solution for everyone.

“We don’t want to issue fines or take people to court,” Schmidt said. “In the end, we just want places to be livable. We want things cleaned up, and we want compliance.”