The Chicago Association of REALTORS® is busy working virtually on your behalf to ensure the safety and security of our industry in the Chicago area. It is important to remember to remain at home but remain engaged with your advocacy team as we all get used to these unusual times.
City Council Meetings Begin Virtually
City Council meetings reconvened over virtual calls in March. In one meeting, Alderman Matt Martin sought to introduce an ordinance allowing tenants to restructure their rent payments for up to 12 months. The ordinance had no protection for move-outs or for landlords who still have mortgages and overhead to pay and would have been detrimental to the real estate industry. Chicago REALTORS® joined our industry friends in speaking out against the bill to the Council.
All City Council meetings are available to view online on the City Clerk’s website.
The Chicago Housing Solidarity Pledge
CAR joined Mayor Lori Lightfoot’s Housing Solidarity Pledge. The pledge states that Chicago’s leading residential housing lenders and landlord associations stand with all Chicagoans by affirming they may provide deferred payments and other relief for eligible renters and mortgage borrowers who demonstrate a significant financial impact from the COVID-19 pandemic.
By signing on to the Mayor’s pledge, we hope to provide you the creative flexibility needed to work with your tenants by counteracting some of the truly damaging legislation that has been proposed, including the proposed ordinance calling for 12 months of rent deferment and ongoing calls for city-wide rent strikes and rent control throughout Illinois.
It is in the interest of everyone – renters and landlords, homeowners and lenders – to provide a clear solution to ensure the stability of housing in these unprecedented times. We think it’s important to stress that those who can pay rent, should – as this will provide greater opportunity for property owners to work with tenants who are facing financial hardship and that those who are facing financial hardship must reach out directly to their landlord to work out a plan that suits their needs on a case by case basis. Read the full pledge here.
Cook County Budget Analysis
This year, County Board President Preckwinkle has acknowledged a budget deficit of over $200 million due to a loss of sales tax revenue, amusement taxes, and more. For this fiscal year, the County projected $849 million dollars of revenue from sales tax, meaning there has been a loss of 20 to 30 percent of the projected revenue. The S&P global rating also downgraded the credit outlook of the County from “stable” to “negative” at the beginning of May, although the County’s bond rating is not nearly as bad as the states’.
Assessor Kaegi Introduces Changes in Response to COVID-19
Cook County Assessor Fritz Kaegi announced changes to property tax valuations based on the impact of COVID-19. While the announcement comes at a time when property owners are worried about meeting their financial obligations, a large majority of adjustments to property tax bills will come in 2021 for the second installment of property tax bills.
Cook County conducts a triannual reassessment, meaning that various parts of the county are reassessed every three years. It is assumed that valuation dates will be the main adjustment for the assessor’s office, though he has not made any official statements on the matter. For more information on these changes, click here.
Stay At Home Reminder and Warning
We would like to remind property managers or landlords to be aware of large gatherings on your property. These gatherings violate social distancing. Individuals will be threatened with citations, fines and possible jail time until the Stay-At-Home Order is lifted.
UPDATE: General Assembly Back In Session – Additional Items of Note
The Illinois General Assembly was back in session for spring on Wednesday, May 20. Here’s what you need to know.
The Illinois REALTORS® worked to stop detrimental legislation changes to real estate and civil law. House Bill 5779 is a balanced relief legislation that could provide direct monetary assistance through the Illinois Housing Development Authority. It was introduced to the House and is now being held in the House Rules Committee.
Two other measures came to light that are opposed by those in the real estate industry. House Bill 5574 contained multiple concerning landlord-tenant measures including de-facto rent control, canceling of rental debt, 60 days’ notice required prior to eviction, mandated payment plans for tenants, sealing of evictions, and other changes that can make evictions a time-consuming process. Senate Bill 3066 has had some provisions removed, but still have flaws that are concerning to the real estate industry.
As you may know, at the end of March, Governor Pritzker issued an Executive Order to authorize notarial acts to be performed remotely via “two-way audio-video communication technology.” Senate Bill 2135 includes language that provides statutory approval of the notary and witness guidelines that were enacted by the Executive Order to ensure that those notarial acts are valid.
Update 6/9/2020: On May 24, Senate Bill 3066 did not pass the Illinois General Assembly. The bill originally included an option for rent cancellation, a longer eviction moratorium, amongst other problematic provisions for the real estate industry.