Representatives of the Illinois Association of REALTORS® were on hand Friday in Berwyn as Gov. Pat Quinn announced a pilot program targeting vacant and foreclosed properties in six Cook County communities.

Called the Illinois Building Blocks Pilot Program, the effort provides $40 million in Illinois Jobs Now capital funding and an additional $10 million in aid from Cook County. The money will be used to help acquire and rehabilitate property in Berwyn, Maywood, Park Forest, Riverdale, Chicago Heights and South Holland.

REALTORS® Anthony La Monica, Robert Eby and IAR President, Loretta Alonzo in Berwyn for the press conference with Gov. Pat Quinn to announce the new Building Blocks program.

Quinn also announced an effort to provide grants and other assistance for those buying vacant properties and converting them to residential use.  A third part of the plan would help existing homeowners stay out of foreclosure.

On Wednesday, Quinn announced in his State of the State speech to the Illinois General Assembly that he wanted to focus on housing issues. Shortly after the speech, his office provided details on a hotline that was being set up to assist homeowners facing foreclosure.

The Illinois Association of REALTORS® has been in conversations with Quinn’s office for several weeks about strategies to deal with the problem of foreclosures and vacant and distressed property. On hand for the announcement Friday was Loretta Alonzo, CRB, GRI, president of the Illinois Association of REALTORS®.

The governor plans to hold a housing conference to examine strategies for addressing the state’s foreclosure problem March 26 in Springfield in conjunction with the Illinois Association of REALTORS®.

Foreclosures are a challenge for Illinois, where there are more than 110,000 cases.  Many of those court actions are backlogged in the legal system, and that’s having a dampening effect on median home prices, said Dr. Geoffrey Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois, in a report late last month for the Illinois Association of REALTORS®.

Here’s a quick look at articles from around the state that are of interest to our membership:

• The Bellville News-Democrat notes that foreclosed houses might make for good bargains right now.
• MRED announces its leadership team for 2012. The president will be Rob Schaid, broker/owner of RE/MAX Plaza in McHenry, Richmond and Wauconda.
• Want to sell a house? Use history as a tool. People like stories, and a property with a story can attract interest, according to this article.
• President Obama is working to keep pressure on Congress to make his housing plan a reality.

Gov. Pat Quinn touched on housing issues in his annual State of the State speech on Wednesday.

Notably, he mentioned he was creating a hotline that would draw expertise and resources from several agencies to provide state residents information on programs to help them stay in their homes.

Shortly after the speech, Quinn’s office released additional details on the Illinois Foreclosure Prevention Network, which will be coordinated by the Illinois Housing Development Authority.

Quinn said in the speech he was working on a housing initiative to “take vacant houses and put them to good use.” Details on that part of his housing initiative haven’t been released.

“Helping families stay in their homes is essential in keeping our communities strong and our economic recovery moving forward,” Quinn said in a release. “The Illinois Foreclosure Network will connect families with the resources they need to keep their homes, and get back on their feet.”

Foreclosures continue to be a drag on the real estate market’s recovery. The legal actions are piling up in Illinois courts and University of Illinois Regional Economics Applications Laboratory Director Geoffrey J.D. Hewings said in late January that the inventory of foreclosure cases from 2010 and 2011 is more than 110,214 cases.

Hewings noted in a review of December 2011 data that  foreclosures working their way through the legal system and onto the market likely will affect housing prices through 2012.

Quinn’s release on the hotline is here: 02.1.12 Illinois Foreclosure_ Prevention Network – RELEASE

With the Illinois March 20 Primary Election fast approaching, it is time again to pay attention to the candidate races and the issues that affect the real estate industry.

One issue that comes up in every election cycle is Home Rule. Pursuant to the Illinois Constitution, a municipality can seek to become a 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.

In past years, several home rule municipalities have abused their powers, particularly when it comes to real estate. They will attempt to control property transfers through point-of-sale inspections. Sometimes, municipalities will block the sale/transfer of property (usually through denying the issuance of transfer stamps) until the municipality is completely satisfied in terms of code enforcement. In addition, other home rule units have imposed other regulations on property owners regarding inspections of apartment buildings and vacant homes, landlord-tenant relationships, crime prevention measures. Some home rule units have passed demolition taxes, unfettered impact fees and excessive fees with the inspection programs.

A broad range of taxation options are available to home rule municipalities. Prior to 1997, home rule units could freely adopt a real estate transfer tax. But in 1997, a new law went into effect which put a limit on this. (The Illinois Association was instrumental in getting this law passed.) Home Rule units must go to a referendum to get a transfer tax adopted or increased. Except for this limitation—and a few others that are set forth in state law—home rule units are free to enact any kind of tax (except an income tax) they want. Home rule units are even exempt from the Property Tax Caps law.

The Illinois Constitution specifically states that only home rule units can incur debt. This enables home rule units to do long-term financing of infrastructure projects. This can be good for a community and it can attract new businesses. This is a genuine benefit to being a home rule unit; economic development is important for all Illinois communities. However, the question of how the debt will be managed and financed is an important issue for citizens in existing home rule municipalities or those who are considering becoming a home rule unit.

This year, the following municipalities are seeking to become Home Rule:

• Clarendon Hills (DuPage)
• Itasca (DuPage)
• Lynwood (Cook)
• Merrionette Park(Cook)
• Princeton (Bureau)
• Prospect Heights (Cook).

In most of these towns, the RVOICE Program will send mail pieces to voters to inform them of the potential pitfalls of Home Rule.

Some Home Rule policies have posed some serious difficulties for property owners, sellers, buyers and REALTORS® in the real estate transaction process. We want to be sure that the voters know all the implications of handing home rule powers to their municipalities.

At the recent Illinois Association of REALTORS® Public Policy Meetings, Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) at the University of Illinois, presented his 2012 Economic Forecast. Watch these videos to find out what Hewings has to say about the impact foreclosures will have on home prices and how the slowdown in consumer mobility is affecting the overall housing market.

Greg St. Aubin and Julie Sullivan outline a few of the pressing issues that are expected this month in the Illinois General Assembly in this first video of the legislative season.

Greg and Julie will bring updates through the week as news of interest to IAR’s membership, so check the blog regularly.

And make sure you watch all the way to the end of the video. There’s a bonus for our viewers.

Noted political analyst Dr. Paul Green, director of the Institute for Politics and the Arthur Rubloff Professor of Policy Studies at Roosevelt University, shares his insights on the 2012 presidential election, why it might take time for a Republican frontrunner to shake out and, closer to home, the dire economic problems facing the state of Illinois.

Here is a recap of what was said on Twitter (#iargov) during the recent Illinois Association of REALTORS® Public Policy Meetings in East Peoria. Find highlights including photos and an economic forecast presentation at www.illinoisrealtor.org/publicpolicy.

Illinois has seen year-over-year gains in home sales in recent months and the trend is expected to continue in early 2012, but foreclosures will affect prices, says University of Illinois economist Dr. Geoffrey J.D. Hewings.

Speaking to Illinois REALTORS® in East Peoria, Ill. Wednesday, Hewings spoke of the relationship between the housing market and the Illinois economy and some of the issues facing both.

“We are starting to see some movement in the (housing) market,” Hewings said of recent home sales activity.

But the foreclosure overhang continues to be a factor. If something can be done to tackle the problem of distressed properties, it will mean positive changes for housing, Hewings said.

Hewings points to other issues affecting today’s housing market:

• Illinois needs jobs. Current employment in Illinois matches that of the late 1990s.
• Illinois’ per capita income has dropped from 4th place to 15th in the last 15 years.
• People moving into Illinois don’t have the same incomes of the people moving out.
• Retirees are opting to stay put rather than downsizing or relocating to another state.
• The average “time on market” has improved and dropped below 10 months for the first time in three years.

Find Dr. Hewings full presentation, “Housing and the Economy: Impacts and Forecasts” at www.illinoisrealtor.org.