On Tuesday, December 4th, we held our monthly “Coffee with Your GADs” chat, where members join our Government Affairs Directors for an informal discussion about policy and politics impacting the real estate industry. This is an opportunity for members to learn about CAR’s current advocacy initiatives and share any news or trends that are of interest.
Although it’s the end of the year and holiday season, there’s a lot of advocacy work to be done and issues to watch. Here’s what’s impacting Chicago’s real estate industry:
FEDERAL
Pushing for National Flood Insurance Extensions
The National Flood Insurance Program (NFIP) was set to expire on November 30, 2018. CAR and advocates of long-term NFIP reauthorization pushed Congress to take action and extend the program for another 6 months but the House of Representatives only approved a one-week extension.
On Thursday, December 6th, Congress was announced that the program would receive two-week extension, pending an [expected] signature from President Trump. This is the 9th extension made for the program since it was up for renewal in 2017.
Shannon McGahn, NAR Senior VP of Government Affairs released the following statement about the extension and need for long-term reauthorization:
“NAR is relieved to know that the NFIP was again extended before a lapse could occur. However, flooding is a constant, unavoidable threat to Americans living in both coastal and inland communities across the country. As such, NAR urges the House and Senate to continue working towards responsible, long-term reauthorization that includes meaningful reforms, as the current process of continuous short term extensions is simply not sustainable.”
CAR anxiously awaits Congress’ decision. Should the National Association of REALTORS
® release a Call to Action based on Congress’ decision, CAR will keep members informed.
Increasing Conforming Loan Limits
CAR has been fighting for increased conforming loan limits for many years. During the Obama Administration, the request for increase was opposed and denied, despite local bipartisan support.
Now, there seems to be greater opportunity with the Trump Administration. The Federal Housing Finance Agency (FHFA)
increased the conforming loan limits in many areas across the nation in 2018, and
recently announced the limits would increase again in many “high-priced” areas in 2019. In the last few weeks, many meetings have taken place that would open the door for an increase in conforming loan limits for in the City of Chicago. To keep the momentum going, CAR is providing the FHFA with MRED data, which supports the argument for an increase.
STATE
Continuing the Fight Against Rent Control
In the 1st, 26th, 45th and 50th wards, advocates have had rent control questions on the February 2019 ballot. The ballot initiatives are non-binding but helpful for aldermen. At this time, CAR will not use money or resources to combat these ballot initiatives, as they are non-binding.
Instead, CAR continues to study and propose sustainable affordable housing solutions that do not damage communities and hurt landlords the way rent control will. The GADs are involved in a coalition, spearheaded by The Chicagoland Apartment Association and the Multifamily Housing Group, which is dedicated to educating residents about rent control. CAR is also waiting on results from a study done with the American Economic Institute that will reveal the impact of rent control, and will be sharing the findings once the results are released.
Right now, with nothing moving in the legislation right now, CAR is waiting to hear incoming governor J. B. Pritzker’s opening address to learn about his position and commitments to the issue of rent control. This is when CAR will decide how the Association needs to proceed in the fight against rent control.
LOCAL
Blocking Transfer Tax Increase Proposals
Recently, there were three proposals made for a 160 percent increase on the Transfer Tax for real estate sales over $1 million. The proposals were made in hopes that the increased revenue would help fix the issues of homelessness, lead pipes and police and firemen pensions in Chicago.
CAR vehemently opposed these proposals, arguing that such increases would not only be detrimental to the real estate industry, they also wouldn’t yield the money needed to adequately address those issues. With such a strong argument, CAR successfully stopped these proposals from being on the February 2019 ballot. This was a huge win for Chicago REALTORS®!
It is possible that the proposals will come back for the May 2019 election, but CAR plans to fight again if necessary.
Defining Alienage
“Alienage” is discrimination based on immigration status. This applies more so to the harassment an individual faces once he/she has rented a unit, as opposed to the rental/application process.
Defining this type of harassment has been up for debate, but the Illinois REALTORS® and the Chicagoland Apartment Association recently came to an agreed settlement on the language. CAR will taking up identical language and plans to push for it being adopted into city code, so that immigrants, particularly those who are undocumented, would become a protected class.
CAR has expressed the need for caution in developing the language used, due to the potential risk of attorneys and other third parties who would take advantage of the decision and use it as new opportunity to bring landlords and property owners to court.
Fast-tracking Building Code Reform
Mayor Emmanuel has an aggressive agenda for building code reform over the next few months. The goal is make the building code better align with international construction code. This would help in areas such as training, making it more universal and less localized.
CAR is an active part of the building code reform committee. While building code reform is being fast-tracked, CAR warns that members shouldn’t expect there to be an immediate change to some key issues, such as plumbing, which will not be considered for at least the next year or two.
What’s next?
CAR is looking forward to learning which candidates will make the final February 2019 ballot. Once announced, CAR will begin contacting candidates to understand their positions on issues that impact the real estate industry. Stay tuned for updates on CAR’s lobbying efforts and recommendations of candidates.
The next Coffee with Your GADs meeting is on February 5, 2019, and then every first Tuesday of the months following. Seats fill up quickly, so
be sure to register today!
If you have any questions in the meantime, please
contact your GAD Brian Bernardoni.
