IRPOA Warns HB 5394 Creates Unequal Standards and Threatens Housing Supply
Paul Arena, Director of Legislative Affairs for IRPOA
Illinois Rental Property Owners Association Warns HB 5394 Creates Unequal Standards, Disrupts Business Practices, and Threatens Housing Supply
It's a fundamental principle of fair housing that all applicants are evaluated using the same criteria. This legislation creates a separate and unequal standard that housing providers must navigate.”
NAPERVILLE, IL, UNITED STATES, April 16, 2026 /EINPresswire.com/ -- The Illinois Rental Property Owners Association (IRPOA) is raising concerns regarding House Bill 5394 (104th General Assembly), legislation that significantly alters how housing providers evaluate prospective tenants by restricting the use of credit history.— Paul Arena, Director of Legislative Affairs for IRPOA
While the bill aims to expand access to housing, IRPOA warns that HB 5394 introduces unequal-treatment standards, eliminates accepted business practices, and creates regulatory uncertainty that may reduce housing availability across Illinois.
What HB 5394 Does
HB 5394 amends the Illinois Human Rights Act to classify it as a civil rights violation for housing providers to deny an applicant based on credit score or credit history when the applicant receives a housing subsidy. The legislation also allows regulatory agencies to define enforcement standards through future rulemaking.
IRPOA’s Core Concerns
1. Unequal Treatment of Prospective Tenants
IRPOA emphasizes that fair housing principles depend on consistent and equal application of screening standards.
HB 5394 creates a separate standard based solely on source of income, requiring housing providers to evaluate applicants with housing subsidies differently than those without.
“It is a fundamental principle of fair housing that all applicants are evaluated using the same criteria. This legislation creates a separate and unequal standard that housing providers must navigate.”
This creates a clear inconsistency:
- Applicants without subsidies may be evaluated using traditional credit standards
- Applicants with subsidies must be evaluated under restricted criteria
This dual standard creates compliance challenges and potential legal exposure, leaving housing providers in a difficult position when trying to apply fair and consistent policies.
2. Elimination of Standard Business Practices
Credit screening is a widely accepted and foundational tool used across industries to assess financial reliability and manage risk.
HB 5394 restricts housing providers from using this standard in a defined category of transactions, despite its continued use in Banking, Lending, Insurance, and Employment screening
“If credit screening is an accepted method of managing risk across industries, why are housing providers being singled out and restricted from using it?”
By removing access to a widely accepted risk management practice, the bill puts housing providers at a disadvantage relative to other sectors and limits their ability to make informed, responsible business decisions.
3. Unmanageable and Undefined Regulatory Burden on Illinois Housing Providers
IRPOA raises significant concerns about the undefined future rulemaking, which leaves critical compliance aspects unclear.
The legislation provides that enforcement standards will be determined by regulatory agencies after enactment, without clearly defining:
- Acceptable screening alternatives
- Required evaluation processes
- Boundaries between compliance and violation
“It is unreasonable to require an industry to comply with restrictions on a fundamental business practice when the rules governing that restriction are not yet defined.”
This uncertainty places a disproportionate burden on housing providers—many of whom are small, independent “Mom-and-Pop” landlords supplying the majority of rental housing.
These providers:
- Operate with limited financial margins
- Bear full responsibility for property expenses and performance
- Have less capacity to absorb financial loss or regulatory risk
As a result, increased uncertainty and risk may lead to:
- Fewer individuals entering the rental market
- Increased operational costs
- Reduced housing availability in certain communities
“The solution to housing affordability is increased supply. This bill may have the opposite effect.”
A Call for Balanced Policy
IRPOA supports efforts to expand housing access in Illinois. However, the association urges lawmakers to carefully evaluate whether HB 5394:
- Maintains equal treatment standards
- Aligns with established business practices
- Provides clear and enforceable guidelines
“Effective housing policy must balance access with sustainability. When policies create unequal standards with undefined obligations, they risk destabilizing the very housing market they aim to support.”
Next Steps
IRPOA will continue to:
- Engage with legal and housing experts to assess the full impact of HB 5394
- Advocate for policies that support both access and long-term housing stability
- Provide guidance and updates to housing providers across Illinois
About IRPOA
The Illinois Rental Property Owners Association represents Illinois rental property owners. The majority are small, independent housing providers. IRPOA is committed to advancing policies that support fair, sustainable, and effective housing solutions for property owners and residents.
FOR INTERVIEWS CONTACT: Paul Arena Director of Legislative Affairs Illinois Rental Property Owners Association 815-243-2924
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