Winter 2018 Government Affairs Update

Advocacy that works – it’s our creedo. We put together some updates of the year so far, as well as what’s to come. As always, we invite you to join us at CAR headquarters on the first Tuesday of the month at our Coffee with the GADs discussions.

Housing Choice Voucher Inspection Change

A coalition including the Chicago Association of REALTORS®, along with the Chicago Area Fair Housing Alliance and the Dearborn Realtist® Board, have held regular meetings with staff at the Chicago Housing Authority (CHA) to advocate for changes that would streamline processes in the Housing Choice Voucher (HCV) Program in Chicago. Through many meetings and discussions, we are proud to announce a change that would benefit both voucher holders and housing providers. In 2016, the U.S. Congress voted unanimously to pass the Housing Opportunity Through Modernization Act (H.R. 3700), permitting Public Housing Authorities (PHA) to allow for changes to their inspection process. The changes would let the PHA approve tenancy and the housing provider to start receiving housing assistance payments if a unit fails the inspection but only has non-life-threatening issues. The housing provider would then have 30 days to make necessary repairs or payments would be withheld. This would be voluntary in nature, and a voucher holder and housing provider would need to agree to the early move-in agreement. The Chicago Association of REALTORS® and the coalition partners felt this was a common-sense change that would reduce delays for both the resident and housing provider. Often housing providers feel the Housing Choice Voucher program can be delayed due to various rules and regulations, and this small change would be a win-win for all parties involved: voucher holders can obtain safe, decent housing faster and housing providers receive payments earlier in the process. The change is part of the 2019 CHA Administrative Plan and is open for public comment; CAR and the coalition will be submitting supportive feedback urging the adoption of this change. If approved, the inspection change would begin implementation in the spring of 2019. We are grateful to the Chicago Housing Authority for welcoming these ideas and conversations, and we deeply appreciate the collaborative efforts of the coalition members to advocate for this common-sense change. CAR government affairs staff look forward to continued conversation with the coalition and the CHA as we continue our regular meetings throughout the year.

Update on Our Fight Against Rent Control

In late September, the rent control “roadshow” came to Chicago. Through a series of state-wide subject matter hearings, the Illinois Senate Special Committee on Housing, chaired by Senator Mattie Hunter, held a hearing on September 27 in Chicago. The hearings, which are open to the public, are meant to investigate the issue of housing affordability and availability in Chicago. Panels of interested parties, including representatives and members from the Chicago Association of REALTORS, had the opportunity to speak about rent control. CAR asserts that rent control would have devastating unintended consequences, including reduced quality and quantity of rental housing, as experienced in New York City and San Francisco, both rent control cities. Additionally, research has found tenants in rent-controlled units stay more than 22 years in an apartment, compared to market rate tenants who stay roughly five years. Proponents of rent control claim this is a positive aspect of rent control; however opponents argue that it prevents other low-income residents from accessing affordable housing options and encourages stagnation in communities. Currently, there are three bills in the Illinois Senate and one bill in the Illinois House of Representatives that would repeal the Rent Control Pre-Emption Act, which prohibits rent control policies in our state. At this time, 37 states prohibit rent control from being enacted due to the policy’s devastating economic impact. Senator Mattie Hunter’s bill, SB 3512, goes a step further and implements county rent control boards and caps annual rent control increases. Aside from the bureaucratic and costly nightmare of such a proposal, many housing providers are already providing affordable housing options. In September, Chicago Magazine reported data from Domu showing rents in Chicago neighborhoods have stabilized or even decreased, and the Chicago Tribune reported in April that according to Zumper’s data, rents were down more than 15 percent from the previous year. REALTORS® and GADs across the state are closely monitoring the issue. Conversations with elected officials at every level have been ongoing, with the purpose of educating policymakers on the negative consequences of rent control. In addition to monitoring the issue, CAR is working with elected officials and policymakers to continue conversations on how to increase affordable housing in Chicago, which could be as simple as the Chicago City Council approving more affordable housing developments in various wards across the city. We maintain that builders want to build, but it takes buy-in from the Aldermen and community members to approve such projects. We will continue working throughout the year to combat the ill-conceived rent control concept and instead, bring the discussion back to a need to build more units of rental housing for every income level.

The Latest on Flood Insurance

With the deadly weather recently experienced across the nation resulting in severe flooding, the long-term reform and extension of the National Flood Insurance Program (NFIP) is more critical now than ever. Set to expire at the end of November, the NFIP has already been extended seven times in the past year. REALTORS® from across the nation have participated in urgent calls for action, asking their respective members of Congress to pass a long-term solution so there is stability, reform and sustainability to the program. At the time of publication, negotiations were still underway for a longer-term deal that would make necessary improvements and updates to the NFIP. For more information and updates, please check the Chicago Association of REALTORS® website.