November 2018 Coffee with Your GAD Advocacy Update

On Election Day, 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. Our next meeting is on December 6th. Here’s what we talked about, with our GADs Brian Bernardoni and Beth Wanless:

FEDERAL

CAR made an impact at the 2018 NAR Convention in Boston, Massachusetts.

• Rent Control: At the convention, CAR had the opportunity to participate in a panel discussion on rent control. Chicago is one of twelve cities facing some sort of push for rent control. The panel provided the opportunity for CAR to share our successes and insights, while learning from the other cities in the fight.
• Indexing of Capital Gains: When it comes to taxes, there’s a divide at the national level, as urban areas are pushing for breaks for introductory homebuyers. At NAR, it proved that the topic of indexing of capital gains will be a big topic following the election.
• Opportunity Zones: The census tracks low-income neighborhoods and offers tax benefits for investors buying into these properties over a 10-year period. CAR gained NAR’s support in fighting for an extension of the program so that it’s long-term and investors can receive their full benefits.
• New Federal Lobbyist: For the past three decades, CAR has had a strong relationship with NAR chief lobbyist Jerry Giovaniello, who is retiring this year. At NAR, CAR ensured that we’d continue to have strong, collaborative relationships in place for the new federal lobbyist taking Jerry’s place. Happy Retirement, Jerry – the industry thanks you for all of your hard work!

STATE

Rent control continues to be a hot topic in Illinois and it’s projected to get even hotter in 2019. To gear up, CAR continues to:

• Attend and/or participate in public hearings across the state.
• Do the research – our rent control study will be completed this month.
• Update and implement the mobilization plan.

LOCAL

Stalling the Notice of Transfer Tax and Alienage Ordinances

CAR opposes the increase on transfer tax on $1 million+ homes because it’s not a sustainable source of income. Here’s how our association helped tax payers:

• Friday, October 26, 2018: The Notice of Transfer Tax and Notice of Alienage were made public and set to go the Committee of Finance on Monday, October 29th.
• Saturday, October 27, 2018: CAR spoke to the mayor, Alderman Joe Moore and chair of Committee of Finance to discuss alternatives.
• Monday, October 29, 2018: CAR ensured that the ordinances would get held up and not go to the committee as planned.
• Wednesday, October 31, 2018: The Alienage Ordinance was held and the mayor begun weighing in on the Transfer Tax Ordinance.
• Friday, November 2, 2018: Two additional Transfer Tax Ordinances were proposed, calling for the tax increase to fix lead pipes and fund police and firefighter pensions. CAR again opposed all three ordinances because they are unsustainable and generate insufficient funds for these issues. To make the February 2019 ballot, the committee would need to hear and pass the ordinances by November 5, 2018.
• Monday, November 5, 2018: The Transfer Tax Ordinances went up in front of Rules Committee. Under the mayor’s control, the Rules Committee didn’t have a quorum which meant the ordinances could not be heard. As a result, none of the three Transfer Tax proposals were eligible for ballot.

What’s next? The Transfer Tax will not appear on the February ballot, but the fight continues to keep it off April’s ballot. The mayor has the opportunity to veto. For the Alienage Ordinance, CAR remains neutral. The area of concern was in the language “plaintiff cause of action,” which would allow a third party to sue. The bill was vetoed by the governor and was agreed to by the Chicagoland Apartment Association and the Illinois REALTORS®. If the veto is not overridden in Springfield, IL in the next two weeks, CAR plans to reintroduce the amended language locally. CAR is thankful to Alderman Burke, Alderman Michelle Harris, Alderman Joe Moore, Alderman Brenden Riley, Mayor Rahm Emmanuel, Ryan Hopkins and Ray Lopez, who were each of great assistance in the fight to oppose these ordinances and protect the real estate industry.

Rehabs without Permits:

The City of Chicago reported that there is an uptick in complaints of rehabs and renovations being completed without permits. REALTORS® are reminded to obtain, and encourage clients to obtain, the proper permits before doing a rehab. Rehabs without permits cause issues for new owners who have issues with their property in the future. The city cannot support rehabs that never received permits.

ARO/Prevailing Wage SEIU

The Service Employees International Union proposed that any building over 50 units needs to hire union security and mechanics, otherwise the building’s tenants would not get the benefits of the Affordable Requirements Ordinance. CAR was aggressive in its opposition, stating that these requirements were never previously discussed in prior ARO talks. Along with the Apartment Buildings and Managers Association, CAR was able to stop the proposal from being heard twice.

Criminal Background Checks

The U.S. Department of Housing and Urban Development released guidance against the use of criminal record in screening tenants. A few municipalities across the country have passed ordinances that prohibits all background screenings, and many (like Seattle) are facing great opposition. CAR continues to watch the issue closely and is working with the Just Housing Initiative and Chicago Area Fair Housing Alliance to find a solution that creates equitable housing opportunities while protecting property owners and tenants.

Chicago Housing Authority Pilot Program

To help improve the housing voucher process, CAR joined a coalition which includes the Metropolitan Tenants Organization, Chicago Area Fair Housing Alliance, Dearborn REALTISTS® and Illinois REALTORS®. The coalition met with the Chicago Housing Authority and has made changes to the inspection process. Through a federal bill passed a few years ago, if an owner fails an inspection but only has non-life-threatening issues, a tenant can move in, and the owner is given a deadline for making the necessary repairs and getting re-inspected. The program is completely voluntary, and both the tenant and owner must agree. CAR looks forward to seeing the pilot program enacted and working on other ways to help improve these processes with CHA.

Pet Registry

If you know of any pet-friendly buildings, contact Beth and Brian. CAR is helping to build a comprehensive list of buildings that are pet-friendly, so that cats and dogs are not abandoned due to an owner’s move. This initiative is in partnership with Real Estate to the Rescue. Add your building to the list.

Applicable Parking Tax

In support of condominium residents, CAR is aggressively opposing Cook County’s proposed re-analysis on the parking tax. The county is preparing to do a seven-year look-back and re-analysis to see how the applicable parking tax applies to those who rent out their parking spaces out and live in condominiums. Cook County believes that the tax may apply to those residents, regardless of whether the rent the space or not. CAR is watching the issue closely as more details become available, as it could potentially be a sizable bill for condo residents.

Midterm Elections

Check out the recording of NAR’s livestream unpacking the election results. At the end of the meeting, our GADs and members briefly discussed the 2018 midterm elections. Now that results are in, there is going to be a lot more to unpack. Join us for our next chat on Tuesday, December 4, 2018 – you won’t want to miss it! “Coffee with Your GADs” is for members only, and it’s always free, you just need to RSVP. See you next month!