REALTORS® CALL ON DEPARTMENT OF WATER MANAGEMENT FOR REFORMS
Currently, the City of Chicago’s INVEST South/West program gathers resources to inspire growth by transforming underserved commercial corridors and attracting more residents to the adjoining residential areas. Some of the homes in these areas are abandoned and dilapidated, and the properties still carry a water bill balance. Delinquent water bills owed to the city cause problems, as the purchasing party must pay the water bill in full to acquire the property. REALTORS® will begin conversations with the Department of Water Management about relieving outstanding water debts for abandoned properties.
The city and its emissaries often quote the need for affordable housing, and affordability begins with lessening acquisition costs, regulation costs and construction costs. Reducing or eradicating outstanding water bills can help encourage affordability.
MONITORING CITY’S USAGE OF AMERICAN RESCUE PLAN ACT FUNDS
The City of Chicago issued the State and Local Fiscal Recovery Funds – 2021 Recovery Plan Performance Report, outlining how $1,866 billion in American Rescue Plan Act funds were allocated for an equitable recovery.
Some of the larger expenditures include $12 million for homelessness support services, $85 million for violence prevention and $65 million for youth opportunities. Federal money in 2022 will include $32 million for mental health services, $85 million for job training and $51 million for small business economic assistance. Financial assistance programs are budgeted for $71 million, including a universal basic income (UBI) pilot program for 5,000 families. In addition to UBI, the city seeks to “create immediate financial assistance programs for…undocumented residents, domestic workers and small community-based nonprofits providing safety net services.”
The City of Chicago is monitoring funds through a dedicated Program Management Office. There are concerns about where the money for this budget is coming from and if there will be future tax increases to keep this running in the future.
CITY SEEKS TO PROVIDE TENANTS WITH MORE RIGHTS
The City of Chicago, through the Department of Housing, issued a Request for Proposal (RFP) for a Right to Counsel Program, which will provide tenants with pre-paid counsel during eviction hearings.
A right to counsel is not a Constitutional guarantee in civil cases. While this initiative may be well-meaning, there is concern it will result in delayed evictions in Cook County, which is behind compared to other jurisdictions in the state.
The REALTORS® contend the city fails to bring equity to housing providers, which could be done through changes to the Residential Landlord Tenant Ordinance (RLTO). This matter will be closely monitored by the Government Affairs team.
80% OF SMALL LANDLORDS HAVE NEVER HEARD OF JUST HOUSING AMENDMENT (JHA)
It has been two years since the JHA went into effect. Most landlords have been able to comply and adjust their tenant screening process. However, staff is concerned with the lack of outreach to small owners and operators of rental properties. If landlords are not complying because they are not aware, that can lead to unnecessary misperceptions or additional regulations.
In the fall of 2021, we partnered with the Illinois REALTORS® and the National Association of REALTORS® (NAR) to survey 457 owners of rental property in Cook County who are not directly associated with the REALTOR® association. Over 75% own fewer than four rental units. Of the survey respondents, 80% had never heard of the JHA. Similarly, 81% had never heard of source of income as a protected class, which was passed in Cook County in 2013.
The Cook County Human Rights Commission is responsible for enforcing JHA and source of income. In December 2021, staff shared the small landlord survey results with the Commission and County Board Commissioners, who reached out to learn more about how we can work together.
HELP US ADDRESS PROPERTY TAX PREDICTABILITY
When it comes to property taxes, affordability and predictability are priorities. While the Cook County property tax system is very complex and highly contentious, there must be a holistic approach to solving the property tax crisis. Over the next year, CAR staff will be working on ways to make property taxes more predictable. The affordability of property taxes will be the most challenging issue, given our government’s reliance on the stable income from real estate. County officials are up for re-election this year and property taxes will surely be a talking point on the campaign trail.
If you have worked with clients who have left or cancelled a deal in Chicago or Cook County because of property taxes, we want to hear from you here. More information to come!
Contact Government Affairs Director Adriann Murawski with your questions or concerns.