2025 New Law Roundup Part 3: Rental Property in a Flood Zone

This Article is the third in a series about new real estate related laws in Illinois, effective in 2025.

The Illinois Legislature has passed Public Act 103-0754, effective January 1, 2025, which states landlords must inform tenants if the property they are renting is in a Federal Emergency Management Agency (FEMA) Special Flood Hazard Area. This disclosure must be made in writing prior to signing the lease.  Specifically, the landlord must disclose if the rental property or any portion of the parking areas have been subjected to flooding in the last 10 years.

What happens if a landlord fails to comply with this new law and the tenant subsequently becomes aware that the property is located in a Special Flood Hazard Area?  Well, the tenant may terminate the lease by giving written notice of termination no later than the 30th day after the tenant learns the property is in a Special Flood Hazard Area. In this instance, the landlord is obligated to return all rent and fees paid in advance no later than the 15th day after the tenant gave notice.

Furthermore, every landlord leasing a garden level unit, basement unit, or first floor level unit (collectively “lower-level unit”) is now required to clearly disclose in writing prior to the tenant signing the lease whether the lower-level unit experienced flooding in the last 10 years, as well as the frequency of such flooding. The disclosure must be included in the written lease or written renewal and must be signed by both parties. If the landlord fails to comply and subsequent flooding occurs that results in damage to the tenant’s personal property, affects tenant’s access to the property or just generally makes the lower-level unit uninhabitable, then the tenant may terminate the lease.  Again, the tenant must provide written notice to the landlord; such notice shall be given no later than the 30th day after the flood occurred. Again, the landlord must return all rent and fees paid in advance no later than the 15th day after the tenant gave notice. In this case, however, the tenant may also bring action against the landlord to recover damages for any personal property that was lost or damaged as a result of the flooding.

If you are a landlord or a tenant in Illinois, you should be aware of these new laws.  There are two exemptions:  the new rules do not apply to farm leases or to rental properties owned or managed by the Department of Natural Resources .

Whether you are a landlord or a tenant, make sure you check whether the property you are leasing is a in a flood zone before signing any lease.  There are a number of free resources available to assist you with this. Of note, FEMA maintains a flood map on their Internet website that is searchable by address, at no cost, so both landlord and tenant may be informed and comply with these new rules.

Also, as most tenant insurance policies do not cover damage or loss incurred in a flood, it is important for tenant to carefully examine their policies to determine their coverage. If tenants are not covered, then flood insurance may be available through FEMA’s National Flood Insurance Program to cover tenants’ personal property in the event of a flood.