APPLIES TO: Advocus Agents in the Chicago Area

The Jackson Park Preservation Ordinance pilot program launched April 6, 2026. This pilot program is an expansion of the Tenant Opportunity to Purchase Act (“TOPA”) that includes the Northwest Side Preservation Ordinance. (See our February 2025 post, Chicago's Department of Housing Implements Northwest Side Preservation Ordinance.)

The properties currently affected by the Jackson Park Preservation Ordinance are bounded by 60th Street to the north, South Shore Drive to the east, 71st Street to the south, and Martin Luther King Drive to the west, as shown on the map, below.

Click map to enlarge or download

Tenant Opportunity to Purchase Act (TOPA) Compliance

To comply with TOPA, building owners in the pilot area must provide tenants with advance notice of their intent to sell. Additional ordinance requirements are available on the City of Chicago TOPA webpage, which provides the following:

• detailed explanations and forms for all parties;
• maps of affected properties (Jackson Park, Northwest Side);
• timeline flowcharts for building owners;
• TOPA summary of tenants' rights;
• FAQs and webinars; and
• access to web portal to submit forms.

The ordinance’s requirements vary based on the number of dwelling units in the building. Under the pilot program, when the owner of a building containing more than one residential unit intends to sell the building, the tenants have an opportunity to form an association and purchase the building. For buildings comprising up to four units, the seller must give all tenants 30 days’ notice via a Notice of Owner’s Intent to Sell. In buildings of five or more units, the seller must provide all tenants 60 days’ notice.

These critically important initial notices must be given and their attendant time periods must run before an owner either lists or offers the property for sale to a third party. The offer for the tenants to assert or waive the right of first refusal must be made only after the owner provides the Owner Declaration to Sell. Any change that results in a new purchaser and/or a change in the listing price (by ten percent or more) will reinstate the right of first refusal.

Executed copies of the completed Notice of Owner Intent to Sell and Owner Declaration to Sell must be uploaded to the web portal on the City of Chicago TOPA webpage. Once the property is listed and the owner receives an offer they intend to accept, the owner of the property must then provide a Third-Party Purchase Agreement, financial documents, and a copy of the contract to both the tenants and the City.

Tenants have a specified time period after receiving Notice of Intent to Sell and Third Party Purchase Agreement to exercise their right of first refusal. The ordinance makes clear that the owner is unable to request a waiver of this right of first refusal during the Notice of Intent to Sell period. Should the tenants decide to exercise their right of first refusal, the ordinance sets forth specific time periods for the notice of formation of a tenant association, to secure financing and to conduct due diligence in contemplation of the purchase. (All relevant time periods, deadlines, requirements, an explanation of tenants' rights, and flowcharts are set forth on the City of Chicago TOPA webpage.)

Closing and Title Insurance Aspects

To aid fulfillment of compliance, Advocus transactions involving properties with multiple dwelling units located in affected areas must include the following Requirement on Schedule B of the Commitment for Title Insurance:

Pursuant to Chapters 5-10 or 5-11 of the Municipal Code of Chicago, for those parcels affected by the Tenant Opportunity to Purchase Act, the Company must be furnished with the following:

• Return receipts from mailed notices (Notice of Intent to Sell and Notice of Third-Party Purchase Offer) to all tenants, tenant associations and the City of Chicago Department of Housing, as submitted through the City’s online portal;
• Copies of any Tenant Registrations or Tenant Notices received by the owner of the property;
• Copies of all rent rolls and/or copies of all leases on the property;
• All Notices given by tenants and/or tenant associations pertaining to Waivers of Right of First Refusal and Notice of Third Party Purchase Agreement; and
• Any assignment of the Right of First Refusal (if any) from the tenant or tenant association.

In lieu of the foregoing requirements, a completed Certificate of Compliance from the City of Chicago’s Department of Housing may be accepted. Upon review of the supplied documentation, this commitment may be subject to such other exceptions as deemed necessary.

Please allow enough time before closing to secure the required documentation to fulfill all items listed above.

Exceptions

There are limited exceptions to the notice requirements for certain types of transfers such as foreclosures, intestate transfers, and quitclaim deeds to spouses or family members. Review the exception information in greater detail in the TOPA ordinance Section 5-10-040 for Jackson Park properties, and Section 5-11-040 for Northwest Side properties.

Questions? Please contact Underwriting at [email protected]. As always, we appreciate your business and welcome your questions and feedback.