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HomeMy WebLinkAboutORDINANCES-1968-051-O-68• As amended and introduced, 4/15/68 51-0-68 AN ORDINANCE To add Chapter 25% to the Code of the City of Evanston, 1957, to regulate and license real estate brokers and prohibit discrimination in real estate transactions, and to repeal Sections 25-46 through 25-52, inclusive, of the Code of the City of Evanston, 1957. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: That there be added to the Code of the City of Evanston, 1957, Chapter 25% providing for the regulation and licensing of real estate brokers and prohibiting discrimination in real estate trans- actions. Said chapter to read as follows: "Chapter 25%. REGULATING AND LICENSING REAL ESTATE BROKERS AND PROHIBITING DISCRIMINATION IN REAL ESTATE TRANSACTIONS. "I. Title and Purpose of the Ordinance "Section 25;-1. Short Title. This ordinance shall be known and may be cited as the Fair Housing Ordinance of the City of Evanston, Illinois. "Section 25'-2. Purpose and Declaration of Policv. It is hereby declared to be the policy of the City of Evanston and the purpose of this ordi- nance, in the exercise of its police and regulatory powers for the protection of the public safety, for the health, morals, safety and welfare of the per- sons in and residing in the City, and for the main- tenance and promotion of commerce, industry and good government in the City, to secure to all persons living and/or working or desiring to live and/or work in the City of Evanston, an equal 4 `' 0- national origin of the friends or associates of such other person, in regard to the sale or rental of, or dealings concerning real property. Any such discrim- ination shall be considered an unfair real estate practice. Without limiting the foregoing, it shall also be an unfair real estate practice and unlawful for any real estate broker or other person to: (a) Advertisement Publish or circulate, or cause to be pub- lished or circulated, any notice, statement or advertisement, or to announce a policy, or to use any form of application for the purchase, lease, rental or financing of real property, or to make any record or inquiry in connection with the prospective purchase, rental or lease of real property, which ex- presses directly or indirectly any limitation or discrimination, or any intent to make any such limitation or discrimination. . (b) Deceive or Overcharge Deceive, or overcharge any person for real property in the city, or to make any distinc- tion, discrimination or restriction against any person as to the conditions or privileges of any kind relating to the sale, rental, lease or occupancy of real property. (c) Discriminate in Lendinq Discriminate or to participate in discrimination in connection with borrowing or lending money, guaranteeing loans, accepting mortgages or otherwise obtaining or making available funds for the purchase, acquisition, construction, rehabilitation, repairs or maintenance of any real property in the city. (d) Change in Neiqhborhood Solicit or to enter into any agreement for the sale, lease or listing for sale or lease, of any real property within the city on ground of loss of value due to the present or prospective 0 -4- ¢31 entry into any neighborhood of any person or persons of any particular race, color, religion or national origin. (e) Inducing Sales Distribute or cause to be distributed, written material or statements designed to induce any owner of any real property in the city to sell or lease his or her real property because of any preseht or prospective change in the race, color, religion or national origin of persons in the neighborhood. (f) Misrepresentation Make any misrepresentations concerning the list- ing for sale or the anticipated listing for sale or the sale of any real property for the purpose of inducing or attempting to induce the sale or listing for sale of any real property by repre- senting that the presence or anticipated presence of persons of any particular race, color, religion or national origin in the area will or may result in the lowering of real property values in the block, neighborhood or area in which the property is located. (g) Refusal to Sell Refuse to sell or rent real property because of race, color, religion or national origin. (h) Refusal to Show Refuse to show to any person who has specified his needs, and affirmed his ability to finance the purchase or lease of real property, the list or other records identifying all real properties reasonably meeting such specifica- tions. (i) Withholding Housing Represent to any person that any real property is not available for inspection, purchase, sale, lease or occupancy when in fact it is so available, or otherwise to withhold real 0 -5- opportunity to purchase, lease, rent or occupy real estate without discrimination based on race, color, religion or national origin. "Section 259-3. Construction. This ordinance shall be construed according to the fair import of its terms and shall be liberally construed to further the purposes and policy stated in Section 25%-2 and the special purpose of the particular provision involved. "Section 25/>-4. Severability. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, the remainder of this ordinance and the application of the provision to other persons not similarly situated or to other circumstances shall not be affected thereby. "Section 25V5-5 Definitions. • For the purposes of this ordinance: (a) 'Real Property' means any real estate, improved or unimproved within the city limits. (b) 'Board' means the Evanston Fair Housing - Review Board. (c) 'Dwelling Unit' means a room or group of rooms designed for occupancy by one family with eating, sleeping and living facilities. (d) 'Lease' or 'leasing' includes and means rent, renting, assignment, sublease and subletting. (e) 'Lending Institution' means any bank, insurance company, savings and loan assoc- iation, other person in the business of lending money or guaranteeing loans, any person in the business of obtaining, arranging or negotiating loans or guaran- tees as agent or broker, and any person in the business of buying or selling loans or instruments for the payment of money which • -2- • are secured by title to or a security interest in real estate. (f) 'Owner' means any person who holds legal or equitable title to, or owns any beneficial interest in, any real property or who holds legal or equitable title to shares of, or holds any beneficial interest in, any real estate cooperative which owns any real property, or any person who is acting as the agent, manager or employee of the owner. (g) 'Person' includes one or more individuals, corporations, partnerships, associations, legal representatives, mutual companies, unincorporated organizations, trusts, trustees, trustees in bankruptcy, receivers and fiduciaries. (h) 'Purchase' includes any contract to purchase. (i) 'Real Estate Broker' means any person li- censed as a real estate broker in accord- ance with the provisions of Chapter 114%, Illinois Revised Statutes, or required thereby to be so licensed. (j) 'Real Estate Transaction' means the pur- chase, sale, exchange, or lease of any real property, and an option to do any of the foregoing. (k) 'Sale' includes any contract to sell, ex- change, or to convey, transfer or assign legal or equitable title to or a beneficial interest in real property. "II. Prohibition of Discriminatory Acts by all Persons. "Section 25%-6. Discrimination Prohibited No owner, lessee, or sub -lessee of real property, real estate broker, lender, financial institution, advertiser or agent of any of the foregoing, shall discriminate against any other person because of the race, color, religion or national origin of such other person or because of the race, color, religion or 0 -3- 4 3,0 ,7 property from any person because of race, color, religion or national origin. "Section 25%-7. Exemptions. This ordinance shall not: (a) Bar any religious or denominational institu- tion or organization, or any charitable or educational organization operated, supervised or controlled by or in connection with a religious organization, from limiting living accommodations, or giving preference with respect thereto, to persons of the same religion or denomination. (b) Apply to the leasing of rooms to roomers in a dwelling unit occupied by the owner or lessee of the entire premises as a family household having not more than two roomers exclusive of domestic servants. (c) Require an owner to offer real property for sale or lease to any person if the owner has reasonable cause which can be substantiated to believe that such person is not negotiating for the purchase or lease of such real property in good faith, nor shall this ordinance be deemed to prohibit owners from giving preference to prospective tenants or buyers for any reason other than race, color, religion or national origin. "III. Regulation and Licensing of Real Estate Brokers. "Section 255-8. License Required. It shall be unlawful for anyone to advertise, represent, hold himself out as, engage in the business of, or act in any manner as a real estate broker in the City of Evanston, without having first obtained a State of Illinois real estate broker's license and an annual city license for that purpose as provided herein. Each such license shall expire at midnight on December 31 of the calendar year in which it is issued. "Section 25'r;-9. Applications; fee. Application for a real estate broker's license shall be made to the City Clerk in writing, signed by 0 -6- I33 • the applicant if an individual, by a duly authorized partner if a partnership, by a duly authorized member if an association, or by a duly authorized officer thereof if a corporation, verified by oath or affi- davit. The application form shall be determined by the City Manager, and amended from time to time as he believes advisable, and shall require such informa- tion as he deems necessary. Any material falsehood, misstatement or omission shall be grounds for im- mediate revocation of the license. The annual fee for a real estate broker's license shall be ten dollars ($10.00). No license shall be issued for a sum less than the full amount of the annual license fee. "Section 25%-10. Standards of Conduct. It shall be unlawful for any real estate broker, acting with respect to Evanston real estate, to do any of the following: (a) Make any substantial misrepresentation or • false promise likely to induce, persuade or influence, or engage in untruthful advertising, or pursue a continued or flagrant course of misrepresenting or the making of false promises, through agents or salesmen or otherwise. (b) Act for more than one party in a transaction without the knowledge of all parties to the transaction. (c) Fail to furnish copies, upon request, of all documents for which the broker is professionally responsible relating to a real estate transaction to all parties executing the same, or fail to account for or to remit any moneys or documents coming into his possession which belong to others. (d) Fail to maintain and deposit in a special account, separate and apart from his personal or other business accounts, all moneys belonging to others entrusted to him while acting as a real estate broker, or as escrow agent, or as the temporary custodian of the funds of others, until the transaction involved is consummated or terminated. 0 -7- • (e) Pay a commission or valuable consideration to any person for acts or services performed in violation of this ordinance. (f) Employ any person as a salesman or agent as a means of evading provisions of this ordinance. (g) Display a 'for rent' or 'for sale' sign on any property without the written consent of the owner or his duly authorized agent, or advertise that any property is for sale or for rent in a newspaper or other publication without the con- sent of the owner or his authorized agent. (h) Fail to promptly present to his principal any and all offers for sale, lease or rental of real estate; or set the price, terms, conditions or privileges of any kind relating to the sale, lease, rental, financing, repair, rehabilitation, construction, maintenance or occupancy of real estate. (i) Solicit for sale, lease or rental, real estate • on the grounds of loss of value due to the present, prospective or alleged entry into the vicinity of any person or persons of any particular race, color, religion or national origin, or distribute or cause to be distributed written material or statements designed to induce any owner of real estate to sell, lease or rent his property be- cause of any present, prospective or alleged change in the race, color, religion or national origin of persons in the vicinity. U ) Refuse to show to any person who has specified his needs the list or other records identifying all properties reasonably meeting such needs which the broker is offering, including those on any multiple listing of real estate to which he has access in the course of his business. (k) Circulate, advertise, display or cause to be circulated, advertised or displayed any commun- ication, notice, advertisement or sign relating to the sale, rental or leasing of any real property which will indicate or express any limitation in the sale, rental or leasing of such real estate predicated upon the race, • -8- g3S • color, religion or national origin of any prospective buyer, lessee or renter of such property. (1) Fail to show real estate without regard to the race, color, religion or national origin of any prospective purchaser, lessee or tenant, and without regard to the race, color, religion or national origin of the residents in the area in which the property is located. It shall be unlawful for any licensed real estate broker to recommend, solicit or en- courage, in any manner, any restrictions upon the listing, showing, sale, leasing or rental of property, or knowingly to participate in discrimination in connection with borrowing or lending money or in any other activities relative to the financing for the acquisition, construction or improvement of real estate because of the race, color, religion or national origin of the prospective occupant of the premises. (m) Fail, within a reasonable time, to provide information requested by the person charged with enforcement of this ordinance as a result of a complaint alleging a violation of the ordinance. (n) Cheat, exploit or overcharge any person for residential housing accommodations. (o) Fail to post in a prominent place available for observation by the public in each of his business establishments the broker's license issued under the provisions of this ordinance. "Section 25�5-11. Actinq Without a License. No person shall be liable for any commission or other compensation to any person or firm who acts as a real estate broker in the City of Evanston for negotiat- ing the sale, lease or rental of real estate located in the City of Evanston unless he is a real estate broker licensed under this ordinance. Any person, association, co -partnership or corpor- ation who acts as a real estate broker in the City of Evanston while not validly licensed pursuant to this 0 -9- 4 3v • ordinance is guilty of a misdemeanor and shall be fined not less than twenty-five dollars ($25.00) nor more than five hundred dollars ($500.00) for each offense, and every day that a violation of this ordinance shall occur shall constitute a separate and distinct offense. "Section 25!6-12. Grantinq a License. The applicant shall be entitled to the issuance of a real estate broker's license upon the payment of the license fee hereinabove provided. Said license shall be renewed annually, provided that said broker shall not have had his State or City license revoked for violation of this ordinance or the statutes of the State of Illinois. "Section 25)-13. Continuation of Business. Nothing contained herein shall prevent a broker whose license has been suspended or revoked, and who has filed an appeal in accordance with the Administrative Review Act of Illinois as provided herein, from contin- 40 the operation of such real estate business until a decision on the appeal has been rendered by the.court having jurisdiction of the cause. "IV. Requlatio6 of Lendinq "Section 25�-14. Discrimination in Lendinq. It shall be an unlawful real estate practice and a violation of this ordinance for any lending institution, in making, agreeing to make, arranging or negotiating any loan or guarantee of funds for the purpose of financing the purchase or sale, con- struction, lease, rehabilitation, improvement, renova- tion or repair of any real property, to offer, seek or agree to terms, conditions or privileges that discriminate between persons because of race, color, religion or national origin. "Section 25;-15. Refusals to Deal in Lendinq. It shall be an unlawful real estate practice and a violation of this ordinance for any lending institution to refuse to negotiate for, enter into or perform any agreement to lend or guarantee the 0 -10- 43� • loan of funds for the purchase, sale, construction, lease, rehabilitation, improvement, renovation or repair of any real property because of the race, color, religion or national origin of any party to such agreement or of any member of the family of any such party, or of the residents of the area in which such real property is located. "V. Scope of Requlation. "Section 25'/-16. Coverage. This ordinance shall apply, respectively, to every real estate broker who, within the City, per- forms any function as such broker but does not main- tain an office or place of doing business within the City; and applies to every broker and lending insti- tution who maintains an office or place of doing business within the City; provided, however, that the provisions of this ordinance shall not be so construed as to prohibit a real estate broker on behalf of the owner, from inquiring into and reporting upon qualifi- cations of any prospective buyer or tenant with respect to limitations or exclusions other than those of race, color, religion or national origin. • "VI. Evanston Fair Housinq Review Board. "Section 25'//-17. Powers and Duties of Board. There is hereby created a Fair Housing Review Board consisting of five persons. The Fair Housing Review Board shall be composed of the Chairman of the Housing Committee of the Evanston Community Relations Commission, a real estate broker practicing in Evans- ton who shall have been licensed by the State of Illinois for a period of not less than five years prior to the date of his appointment, an attorney who shall have been admitted to practice before the Supreme Court of Illinois for a period of not less than five years prior to the date of his appointment, and two members at large. The real estate broker, attorney, and members at large herein designated shall be appointed by the Mayor with the consent of the City Council, and they shall serve for a term of three years. They shall be eligible for reappointment but may serve no more than two terms in succession. The Chairman of the Housing Committee of the Evanston Community Rela- tions Commission shall become a member of the Board upon his appointment as Chairman of the Housing Com- mittee and shall serve on the Board during his tenure as Chairman of the Housing Committee. All members of the Board shall be residents of the City of Evanston. 44,6 -11- • The Board shall have the following powers and duties: (a) To administer oaths and take sworn testimony; (b) To adopt, promulgate, amend and rescind rules and regulations of procedure consistent with the provisions of this ordinance; (c) To receive and investigate complaints alleging unlawful real estate practices in violation of this ordinance; (d) To seek conciliation of, hold hearings on, and render findings of fact regarding complaints received; (e) To subpoena witnesses and pertinent documents, which power may be enforced by the Board by • proper petition to any court of competent jurisdiction. Any person aggrieved in any manner by any violation of any provision of this ordinance may, within sixty days after the date of the alleged violation, file a written complaint setting forth his grievance with the Fair Housing Review Board. Said complaint shall state the name and address of the complainant and of the persons against whom the com- plaint is brought and shall also state the alleged facts surrounding the alleged violation of this ordinance. Said Board is hereby fully authorized to in- vestigate immediately every such complaint thus filed. If the Board determined that the respondent has not engaged in any unlawful practice, it shall state its findings of fact in writing and dismiss the complaint. If the Board determined after such investigation that probable cause exists for the allegations made in the complaint, the Board shall set a date for a conciliation hearing. At such hearing, the Board or any member there- of shall interview the complainant and the person or -12- • -4 '� persons against whom the complaint has been directed 40 and shall attempt to resolve the complaint by all proper methods of conciliation and persuasion. If such attempts at conciliation are not successful within sixty days after the date of filing of the complaint, the Board shall then proceed promptly with full hearings of the complaint. Such hearing shall be conducted by the Board or any three members thereof, upon due and reasonable notice to all parties. At the conclusion of the hearings, the Board shall render a written report with findings which shall be served by mail upon the complainant and the respondent. No report shall be delayed more than sixty days after the date of the issuance of notice for commencement of the first hearing. The Board shall be empowered at the conclusion of such proceedings and as part of its report, to suspend or revoke, for a period not to exceed one year, the license of any broker licensed by the City of Evans- ton who shall have been a respondent to any proceedings thus filed and found guilty of violation of any appli- cable provision of the within ordinance. Any broker • whose license has been suspended or revoked, or any complainant aggrieved by the decision of the Board, shall have full right to appeal from such order of suspension or revocation in accordance with procedures specified in the Administrative Review Act of Illinois. The order of the Board shall be final. It shall serve a copy thereof upon the respondent, and any appeal may be taken thereafter. In addition thereto, the Board may direct the Corporation Counsel to file with the Department of Registration and Education of the State of Illinois a complaint against any real estate broker found guilty of violating any provision of this ordinance, seeking suspension or revocation of the license issued to such broker by the State of Illinois. In a case not involving a real estate broker, the Board may direct the Corporation Counsel of the City to commence action in any court of competent jurisdiction to recover the penalty provided herein or to seek such equitable relief as the Board may deem proper. -13- U 4I1 The Board may request the City Manager or the Chairman of the Community Relations Commission to make available such staff assistance as may be required to carry out its duties under this ordinance. "VII. Enforcement Procedures. "Section 25%-18. Private Remedies. Any person aggrieved in any manner by the violation of this ordinance who has exhausted the remedies provided in Section 25%-17 of this ordi- nance may apply to any court of competent juris- diction for appropriate relief from such violation, including: (a) an order compelling compliance with this ordinance; (b) an order to prohibit any person found by the court to have violated any provision of this ordinance from the sale, lease, exchange, • transfer, conveyance or assignment of any real property, by any person who in violation of this ordinance refuses or fails to perform such contract; (c) compensatory damages; (d) such other and further relief as may seem appropriate to the court for the enforcement of this ordinance and the elimination of violations hereof. These remedies shall be available notwithstanding the imposition of other penalties provided by this ordinance. "Section 25%-19. Penalty. Any person, firm or corporation violating the provisions of this ordinance shall be fined not less than twenty-five dollars ($25.00) nor more than five hundred dollars ($500.00) for each such offense. Every day a violation continues shall be deemed a separate offense." 0 -14- 0-- SECTION 2: Sections 25-46 through 25-52, inclusive, of the Code of the City of Evanston, 1957, be and they are hereby repealed. SECTION 3: This ordinance shall be in full force and effect from and after its passage, approval and publication in the manner provided by law. INTRODUCED April 15 1968 /'� ADOPTED April 29 , 1968 APPROVED ff / , 1968 /Mayor ATTEST: • /s/ Maurice F. Brown City Clerk Approved as to form: /s/ Jack M. ,S eeel Corporation Counsel • -15-