Category Archives: Local Issues

IAR working to get answers to Section 8 landlord mandate in Cook County

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REALTOR® opposition, the Cook County Board on Wednesday passed a measure making it a human rights violation for landlords to opt out of the federal Section 8 housing program.

The new rule passed by a 9-6 margin. Now, Illinois Association of REALTOR® advocates are trying to gain more details on how the policy will be implemented when it goes into effect Aug. 8 so the association can work with members to tell them what to expect. (See the testimony here and here).

IAR's Mike Scobey testifies before the Cook County Board of Commissioners on May 9 in opposition to a measure that provides source of income protection.

IAR’s concerns include the time it takes for the inspection process to be completed by housing officials certifying that the dwelling is acceptable for rental and the bureaucratic process that landlords would have to navigate in order to rent to a Section 8 voucher holder.

The federal Section 8 program was established in 1937 and is administered by the U.S. Department of Housing and Urban Development through the Cook County Housing Authority. Historically the Section 8 program, which offers rental assistance to those with low incomes, was seen as voluntary on the part of landlords.

The Cook County Board’s move was pitched as a move to end discrimination against voucher holders.  This new protection will be included in the ordinance’s “Source of Income” definition.  This protection will join other protections already in place which guard against discrimination due to race, sex, age, disability and sexual orientation.

The new ordinance would apply to all rental units in Cook County. Even single-family homes that are rented are included under the provision.

The city of Chicago has had an ordinance for nearly two decades which is similar to the one passed by Cook County.

IAR’s Assistant Director of RVOICE and Local Advocacy, Mike Scobey, said a call to action yielded pressure on Cook County board members to vote against implementing the policy. In that call to action he noted: “Forcing landlords into the program means that landlords would be required to participate in a program that has many administrative requirements and problems.”

 

Highland Park’s unfair tax on property demolitions

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Demolish a property in Highland Park and you could get hit with a hefty demolition tax from the city.

In a column for the Highland Park Patch, Illinois Association of REALTORS® local Government Affairs Director Howard Handler writes about the case of Peter Diambri, an 87-year-old property owner who wants to demolish a vacant house on his property but must pay a $10,000 demolition tax from the city of Highland Park if he does so.

One-third of the $10,000 is to go to the City’s infrastructure fund, and two-thirds of the money will be deposited in the City’s Affordable Housing Trust Fund that helps provide below market housing to those that may otherwise be unable to afford to live in Highland Park. On top of the $10,000, Diambri would also have to pay an additional $5,000 if he wishes to defer paying the tax now and a $750 demolition permit fee (100 percent of the permit fee is also diverted to the affordable housing fund). Of course, he will also have to pay a contractor an estimated $20,000 for the demolition, writes Handler.

While the city’s goal to fund affordable housing in the community isn’t devoid of merit, Handler says owners of older homes, which are the most likely to be demolished, should not have to shoulder the burden of the city’s efforts.

Read the column, “HP’s demo tax is fundamentally unfair,” in the Highland Park Patch.

REALTOR® advocacy squashes fast track pace; more equitable bedbug ordinance sought in Chicago

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Agreed: Bedbugs bad.

Less clear, how to craft a fair policy that addresses the problem in  Chicago that won’t hurt REALTORS®, property owners and tenants.

The Illinois Association of REALTORS®’ Brian Bernardoni testified Tuesday before a Chicago City Council joint committee as part of discussion of a proposed $1,000-a-day penalty for landlords who fail to eliminate bedbugs. From the Chicago Tribune:

“Bedbugs are a serious problem, regardless of economic stature, and the city of Chicago has the authority to declare a public nuisance and regulate it. The issue must be addressed head on.”

Bernardoni told members of the panel that bedbugs were indeed an issue, but raised concerns over unintended consequences the ordinance might create. In his testimony, he noted:

  • The ordinance would be effective 10 days after passage. This is an issue because there is no exemption for existing leases, and no phase-in provision.
  • Tenants could bring bedbugs into a dwelling without realizing they are doing so, particularly in the case of purchases of used or reconditioned mattresses.
  • What happens if a tenant does not alert a landlord of an infestation? Would the landlord be on the hook for the fines, even if he/she wasn’t aware of the problem?

Could tenants be unfairly evicted? If an apartment’s infestation spreads, would others in adjacent apartments be subject eviction? Would landlords use the rule as a means to target people they don’t like? Said Bernardoni in a WLS-TV 7 story:

“Realtors have a code of ethics. This is not the type of behavior that’s accepted. If tenants feel (they have) those problems, there are a number of organizations that represent those individuals and we are more than happy to go after bad actors within our industry.”

Bedbugs are particularly difficult to eradicate and as a result, the treatments are expensive. According to the WLS-TV 7, “Bedbugs have become so prevalent in Chicago that Orkin Pest Control announced they did more business in the Windy City in 2012 than in any other city.”

Bernardoni told IAR Buzz that often it’s not just one unit that would have to be cleansed of the pests if they are found, but all the adjacent units and perhaps even the units above and below the infected unit would have to be treated, too. According to a FOX News article, killing off bedbugs can cost anywhere from $400 to thousands of dollars.

The proposed ordinance did not come up for a vote on Tuesday. Bernardoni said the next step is to work on provisions to address the many questions raised by the ordinance.

Illinois REALTORS® help defeat home rule in Kenilworth and Westmont

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Local associations and the Illinois Association of REALTORS®  RVOICE program was at work in four local communities in Illinois fighting against home rule referenda. In Kenilworth and Westmont, voters defeated home rule. In Maywood and Homer Glen, voters approved it. Pursuant to the Illinois Constitution, a municipality can seek to become home rule unit if the voters approve it in a referendum. A municipality automatically becomes a home rule unit when its population reaches 25,000. With home rule status come additional powers to regulate and tax.

IAR has a long history of challenging home rule at the local level. My Feb. 2 blog post “Potential Pitfalls for REALTORS, Property Owners with Home Rule,” explains why in detail and you can get a snapshot of the issue in this Home Rule infographic. These are four of the main reasons REALTORS® and RVOICE work to stop home rule: 1) It can increase the debt load for local governments, 2) home rule often leads to higher property taxes without voter approval, 3) more regulations, red tape and fees on the real estate transaction, and 4) new inspection fees, again, without voter approval.

This mailer is an example of one of the tactics used by IAR and the RVOICE program to stop home rule. Postcards were mailed to voters in Kenilworth and REALTORS® also organized a get-out-the-vote campaign.

KENILWORTH HOME RULE MAILER GRAPHIC