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There will be no new updates to the blog until after the 1st of the year. I wish all of you a safe and happy holiday season!

RANWC Defeats $5000 Tax!!

For the past year RANWC Director of Government Affairs, Jeff Metzger along with members of the Legislative South Committee has been reviewing recommendations by the Rolling Meadows Affordable Housing Ad Hoc Committee. One of the recommendations was a proposed $5,000 tear down fee. This proposal came out of the Ad Hoc Committee as a means to deter property owners from tearing down their homes and building a new home on the lot. Jeff has been working with Alderman Tom Rooney in opposition to this proposal. We are proud to report that the proposal was defeated on 1st reading with a vote of 6-1. Special thanks to RANWC Board Member Tom Krettler for testifying before the Rolling Meadows City Council meeting on Tuesday of this week. The City of Rolling Meadows will be considering a mandatory set-a-aside initiative sometime after the first of the year. We will be opposing that and working with the city on alternatives that promote affordable housing.

Des Plaines

The city of Des Plaines recently proposed a putting referendum on the February 5th Primary ballot which would have asked voters to raise the real estate transfer tax by $1.00 per $1,000. There current transfer tax is $2.00 per $1,000. I issued a letter to the Mayor of Des Plaines and member of the City Council on behalf of RANWC opposing the proposed measure. RANWC Legislative South Committee Chairman Chuck Wiercinski appeared before the city council committee of the whole meeting to speak in opposition to the proposal too. I am pleased to announce that we were able to defeat the proposal and it will not appear on the ballot. I would like to thank Chuck Wiercinski for his help in defeating this proposal.

Water Rate Increases

Water rate increases seem to be a common theme amongst area municipalities. Find below articles on Arlington Heights, Bartlett, and Carpentersville.

From the Daily Herald


http://www.dailyherald.com/story/?id=77120

http://www.dailyherald.com/story/?id=50265

http://www.dailyherald.com/story/?id=72396

Recall Debate

While this subject is not directly related to the real estate industry, it would have a direct impact on our state government which ultimately would impact our industry. Whether it is a positive or negative impact...well that is up for you to determine.

For the last couple of months several legislators on both sides of the isle have discussed allowing the voters of Illinois the option to allow for recall elections of elected officials. As you probably remember this was how Governor Schwarzenegger was first elected as the Chief Executive of California.

State Senator Dan Rutherford is the latest elected official in Illinois to continue this discussion. Please find below more on this in Bernie Schoenburg's column from the State Journal Register today.

Rutherford and recall


State Sen. DAN RUTHERFORD, R-Chenoa, since 1995 has had a political action committee, separate from his campaign fund, called the Committee for Legislative Action. Rutherford is using that group to contact voters about the idea of allowing recall of public officials in Illinois.
Rutherford said last week that about 50,000 letters were mailed to explain the existence of a proposal to allow for "recall of an elected official, such as the Governor." The letter notes that if the existing proposed constitutional amendment were enacted, it would take more than 418,000 signatures to place a recall question on the ballot.
"The CLA has been asked to help gauge public support" for the idea of having recall, the letter states. The group hopes to see if 50 percent of the number necessary would register their support. That would be more than 209,000.
Rutherford said that effort is "kind of letting people know how much of a task this would be."
When asked if he's really the one who "asked" his own group to do this, Rutherford said, "in a sense." And while some people who get the letter might think otherwise, a close reading of the document makes it clear that returning the enclosed ballot has no weight in law. This isn't for a real recall; this is to see if people like the idea of recall.
Oh, and the letter asks recipients to send in $29 each as the "minimum to help," or $41 "RECOMMENDED - to buy a roll of stamps," or more. Rutherford said any contributions are just to help with the mailings. It's not a fund-raising effort, he said, and his regular campaign fund makes donations to CLA.
As of late last week, he said, something under 3,000 responses had been received. Percentages, but not raw numbers of votes received, are being posted on the Web site of the PAC, www.CommitteeForLegislativeAction.org. While letters were being sent to voters selected randomly, Rutherford said, the Web site and e-mails are also seeking responses. Thus, this is not scientific.
As of last week, however, 95 percent of those who responded favored the power to recall, but when asked specifically if Gov. ROD BLAGOJEVICH should be recalled, only 72 percent said yes.
Rutherford, who was the GOP candidate for secretary of state in 2006, said the effort to get the word out about the issue is also instructive to him. He called it "telling" that there's more than a 20-point spread between those who want recall and those who want to recall the current governor.
Despite what the request is showing, he said, "My initial feeling is that we should not be having recall as part of the constitution. I think that what we are sensing here is a reaction to a personality as opposed to what is fundamentally appropriate to be in the constitution."
The CLA's stated purpose is to support candidates as well as issues. Other issues it has highlighted have been fee increases passed early in the Blagojevich administration and a proposal back in the mid-1990s to create a sales tax on services.
Bernard Schoenburg is political columnist for The State Journal-Register. He can be reached at 788-1540 or bernard.schoenburg@sj-r.com.
http://www.sj-r.com/Opinion/stories/20116.asp

Legislative Breakfast a Success

I would like to thank Senator Michael Bond for joining us for our legislative breakfast at our Libertyville location. RANWC members had the opportunity to hear from Senator Bond and pose any questions that they wanted. A special thanks to RANWC Director of Member Services Mike Manno for all of his help in preparing for this breakfast.

Governor OKs new mortgage counseling

www.chicagotribune.com/business/chi-sat_predatory_1103nov03,0,6687202.story

chicagotribune.com
Governor OKs new mortgage counseling
Measure broadened to all of Cook County
By Mary Umberger
Tribune staff reporter
November 3, 2007

Gov. Rod Blagojevich on Friday signed into a law a bill that revamps and broadens a controversial measure that requires mortgage counseling for many home buyers in Cook County. The law also toughens disclosure and other responsibilities for mortgage brokers around the state.The law replaces one known as HB 4050 that took effect in September 2006. Blagojevich suspended that measure in January over complaints that it promoted redlining because it required counseling for home buyers only in certain Chicago ZIP codes with sizable minority populations. The critics also said the complex provisions caused lending to dry up in the affected areas.The new law has some requirements that affect all of Illinois; others apply only in Cook County.The statewide provisions take effect June 1 and require mortgage brokers to verify that borrowers can afford the full costs of a loan, including principal, interest and taxes, according to the governor's office.All brokers in Illinois also must fully disclose material facts about the loans, such as how much the broker will be paid, and it limits some prepayment penalties.Such provisions are drawing opposition from many in the housing industry, who say it will create bureaucratic delays and make homes more expensive because it imposes a $300 counseling fee, payable by the mortgage broker."If sales were slowed down in the few months that 4050 was in effect, what's going to happen further to the real estate market in Cook County?" said Scott Cheffer, a title insurance agent in Oakbrook Terrace who lobbied against the law in Springfield. "We're going to have to wait and see."The law changes the HB 4050 program by mandating counseling by loan type rather than the credit scores of borrowers, and it expands the requirement to all of Cook County.Starting July 1, it will require counseling for first-time buyers and refinancers in Cook who obtain an interest-only loan; loans with negative amortization, causing the principal to increase; loans with points and fees that total more than 5 percent of the loan amount; loans with a prepayment penalty; or an adjustable-rate mortgage of three years or less.Susan Hofer, a spokesman for the Illinois Department of Financial and Professional Regulation, said the counseling will help prevent foreclosures by giving borrowers a better understanding of the complexities of mortgage loans.She also said the state on Friday announced a series of programs, called Homeowner Outreach Days, in November and December that will allow consumers worried about foreclosure to meet with and get help from lenders, housing counselors and housing officials."It's important that we help families deal with foreclosure, and signing legislation to reduce potentially predatory loans in the future will help prevent the problem," Hofer said. "The legislation will take effect next summer, but we have families who are facing foreclosure between now and then, and the outreach days are to help them."----------mumberger@tribune.com
Copyright © 2007, Chicago Tribune

Springfield Update

Illinois Association of REALTORS
Quorum Call Week in Review
November 2, 2007

Highlights of key activity at the State Capitol this week and a preview of key activity for the week ahead.

Quorum Call is distributed Fridays when the Illinois General Assembly is in session. For more information, contact Greg St. Aubin, Director of IAR Governmental Affairs, gstaubin@iar.org, or Julie Sullivan, Assistant Director, Legislative and Political Affairs, jsullivan@iar.org. Full text of legislation cited in this newsletter can be found at www.ilga.gov.

“Information is the currency of democracy.”
~Thomas Jefferson

- The Illinois House of Representatives reconvened on Thursday, November 1 and the Illinois State Senate reconvened on Friday, November 2nd this week for the discussion of the mass transit issue and for final passage of the 2008 Budget Implementation Act.

- While both the House and Senate held hearings on the transit issue- NO final action occurred on either of the bills dealing with mass transit (Senate Bill 572 in the House or House Bill 3667 in the Senate). On Thursday, the House Mass Transit Committee held yet another hearing on the long term operations and capital funding for mass transit in Illinois and for consideration of House Amendment #10 to Senate Bill 572. At this hearing, the sponsor of the measure, Representative Julie Hamos, presented the latest amendment that contained the same funding mechanisms- a regional sales tax increase and authority for the city of Chicago to increase its real estate transfer tax without referendum. Also at this hearing, officials from the RTA and CTA reiterated that the latest “doomsday” scenario, effective November 4th, deep service cuts and fare increases would occur. The hearing also included discussion of alternate plans that had been suggested (see HB 4161 discussed below). Additionally Representative Jim Durkin filed House Amendment #11 which sought to sunset the sales tax and real estate transfer tax increases after three years. This amendment was not formally considered and remains in the House Rules Committee. Members of the Senate Executive Committee grilled the RTA and the CTA in a heated hearing on Friday afternoon. The Senators objected not only to the proposed House funding mechanisms but also questioned current and past operational issues of both the RTA and the CTA. IAR was on record in both hearings as an OPPONENT to the real estate transfer tax funding proposal. It was definitely the feeling in the Statehouse that momentum has begun to shift away from the new taxes as alternative plans begin to be given serious consideration in both chambers. Representative Fred Crespo was particularly helpful in the House Mass Transit Committee pointed to the many flaws of increasing the real estate transfer tax. THANK YOU TO ALL WHO HAVE CONTINUED TO RESPOND TO THE CALLS TO ACTION ON THIS ISSUE. IAR HAS BEEN THE CONSISTENT VOICE AGAINST SB 572!

- As noted, the House Republicans formally introduced an alternate mass transit plan this week. On Thursday Representative Angelo “Skip” Saviano introduced House Bill 4161 as the alternative plan which does NOT include a real estate transfer tax increase NOR a regional sales tax increase. HB 4161 relies on small fare increases coupled with use of the current sales tax collected on the sales of motor fuel in the counties that encompass the RTA region. Since the proceeds of this sales tax are currently deposited into the State’s General Revenue Fund there will be further discussion on how this will impact the State budget and if some other replacement revenue stream will need to be proposed. IAR applauds the efforts of the caucus to proactively pursue this alternative to the transfer tax increase/sales tax increase. The bill will continue to be discussed by the legislative leaders who pledged to continue working over the next 5-10 days on resolving this issue along with the capital plan and gaming expansion issue.

- Another important development on the issue also occurred on Friday as the Governor authorized a grant of $27 million to the CTA and the suburban bus board (Pace) to avert the scheduled fare hikes and service cuts the two boards had indicated would occur on Sunday. The grant is expected to keep the full schedule of buses and trains in operation through the end of the year as negotiations continue for a long term resolution of the issue.

- On Friday the Governor signed into law Senate Bill 1167 (Public Act 95-691). This is the revised version of the predatory lending/4050 legislation that was the subject of negotiations among all affected parties this session. The legislative negotiations resulted in several changes, favorable to our position, to the legislation. IAR was NEUTRAL on SB 1167 which includes requirements and restrictions applying to mortgage brokers as well as a codification of the recently-filed rules to re-establish the Predatory Lending Database Program (the HB 4050 program) in Cook County. IAR was pleased that our strong opposition to the Predatory Lending Database Program being limited to ten contiguous zip codes on the southwest side of Chicago was heard, and that both the rule and the bill do not establish the program in this manner (the program now covers all of Cook County). As far as home buyers that must get counseling, the new law will now apply only to first-time buyers and only if the loan they are seeking has certain characteristics: interest only, negative amortization, points and fees in excess of 5%, prepayment penalty, or ARM. The bill also will apply to apply to borrowers who are refinancing. This new law will not become effective until July 1, 2008.

- The House took final action on House Bill 2353 on Friday, November 2nd approving the bill on a roll call vote of 61-47-4. HB 2353 amends the Illinois Affordable Housing Act to create the Illinois Housing Affordable Housing Capital Fund for the purpose of financing projects of the Illinois Affordable Housing Program as authorized by IHDA’s comprehensive plan. IAR was NEUTRAL on this legislation which has been sent to the Governor for his consideration.

- There was also final legislative action on House Bill 1514 which extends the life of a Tax Increment Financing District (TIF) in the city of DeKalb. IAR was NEUTRAL on this bill sponsored by Representative Bob Pritchard and Senator J. Bradley Burzynski.

- House Resolution 761, introduced by Representative Chuck Jefferson, was assigned to the House State Government Administration Committee this week. The resolution calls upon Congress to take emergency action to protect homeowners and banks by enacting a “Homeowners and Banks Protection Act”. Among the provisions of the resolution is the directive that Congress establish a federal agency to “place all federally and state charted banks under protection by freezing all existing home mortgages for a period of time, adjust mortgage values to fair prices, restructure existing mortgages at appropriate interest rates and writing off speculative debt obligations of mortgage-backed securities, financial derivatives and other forms of financial pyramid schemes”. Further, the resolution calls for a moratorium on all home foreclosures for the duration of the transition period.

- The General Assembly adjourned Friday afternoon, November 2nd with no indication of the specific date that they will reconvene.

For more information, contact Greg St. Aubin, Director of IAR Governmental Affairs, gstaubin@iar.org, or Julie Sullivan, Assistant Director, Legislative and Political Affairs, jsullivan@iar.org.

Contact information for members of the House and Senate, notice of committee hearings, text of legislation and roll call votes are all available on the Illinois General Assembly’s Web site, www.ilga.gov.

Chicago Transfer Tax

As you know or if you didn't, you know now that Senate Bill 572, as amended includes the authority for the Regional Transportation Authority (RTA) and the City of Chicago to impose a real estate transfer tax of $3 per $1,000 within the city of Chicago WITHOUT VOTER APPROVAL. The Illinois Association of REALTORS and RANWC are firmly opposed to this proposal. As you have in the past we ask that you contact your Representative and Senator ask them to reject the proposed transfer tax increase.

There are other revenue proposals being considered at this time. Legislators do not have to make property owners pay more.

This is ANOTHER LAYER OF TAXING authority on property owners in Chicago where a very high home rule municipal real estate transfer tax is already in place ($7.50 per $1,000 paid by the buyer) in addition to the State and county real estate transfer tax (combined $1.50 per $1,000 on the seller).

Illinois law also is very clear in that VOTER INPUT is required to impose a new or to increase an existing home rule real estate transfer tax. This proposal contravenes that public policy.
As you are well aware, the real estate transfer tax is a "hidden" property tax because most property owners are not aware of it until they buy or sell property.

PLEASE CALL YOUR LEGISLATOR AND URGE A NO VOTE. ASK THEM WHY PROPERTY OWNERS ARE BEING REQUIRED TO BAIL OUT THE CTA!
To call your STATE legislator, go to www.ilga.gov to find your legislators' Springfield phone numbers (the one with a 217 area code). Click on "Legislator Look-up" or, dial 217/782-2000(Capitol switchboard) and ask to be transferred to your legislator's office if you know the name.

From the Daily Herald
http://www.dailyherald.com/story/?id=69353

http://www.dailyherald.com/story/?id=68280

Nov 2nd Legislative Breakfast Postponed

The Illinois State Senate has been called into session on Friday, November 2nd which will require Senator Kotowski to be in Springfield.

Therefore the Legislative Breakfast scheduled on Friday, November 2nd has been postponed for a future date to be announced.

The Legislative Breakfast on November 9th at 9:00am with Senator Bond will still be held at RANWC's Libertyville office as scheduled.

You may still R.S.V.P. for the Senator Bond breakfast by November 5th to Jeff Metzger at 847-506-5031 or Jeff@ranwc.com.

Any questions, please contact Jeff Metzger.

New Poll Numbers for the Governor/President

From the Capitol Fax Blog -Rich Miller
www.thecapitolfaxblog.com


* Rasmussen’s latest Illinois poll is out.
Survey of 500 likely Illinois voters taken October 17, 2007. Margin of Sampling Error, +/- 4.5 percentage points with a 95% level of confidence…
1 - How do you rate the way that George W. Bush is performing his role as President?
14% Excellent17% Good
16% Fair52% Poor
1% Not Sure
* BUSH TOTALS: 31% good or excellent… 68% fair or poor… (32 and 67 in Rasmussen’s August poll)
2 - How do you rate the way that Rod Blagojevich is performing his role as Governor?
5% Excellent11% Good
37% Fair46% Poor
1% Not Sure
* BLAGOJEVICH TOTALS: 16% good or excellent… 83% fair or poor… (22 and 78 in Rasmussen’s August poll)
Oof. Could it get any worse for the governor? Now he’s polling much worse than Bush, and dropping like a stone. Wow.
* Now, on to gaming and mass transit…
5 - How closely have you followed recent news stories about the Chicago Transit Authority’s financial issues?
24% Very closely29% Somewhat closely25% Not very closely21% Not at all0% Not sure
6 - A proposal has been made to authorize more casinos in Illinois with the money going to help fund public transportation in Chicago. Do you favor or oppose this proposal?
31% Favor57% Oppose13% Not sure
7 - Suppose a choice had to be made between authorizing more casinos or having the Chicago Transit Authority cut half its routes. Which would you prefer?
51% Authorizing more casinos32% Having the Chicago Transit Authority cut half its routes17% Not sure
9 - [asked only of those who said at least once a week to the question: How often do you ride subways, trains, and buses in and around Chicago?]
Will you continue to ride CTA public transportation if fares go up to $3 or higher?
50% Yes43% No7% Not sure
10 - [asked only of those who said at least once a week]
Will you drive more if suburban bus and commuter train fares go up?
35% Yes55% No11% Not sure
Folks aren’t happy with gaming expansion for transit, and very big percentages threaten to abandon public transportation if a fare increase is enacted, as House GOP Leader Tom Cross and some Senate Republicans are suggesting. Not surprising.
* Also, according to the poll, 91 percent say they have health insurance, which is a lot more than what’s usually reported. Of those who say they have insurance, 40% rted their coverage as “Excellent,” 35% said it was “Good,” 20% said “Fair” and 4% rated it “Poor,” while 0% were not sure.

http://thecapitolfaxblog.com/2007/10/24/new-rasmussen-poll-shows-governor-sinking-like-a-stone-transit-riders-threaten-to-abandon-system-voters-unhappy-with-gaming-solution/

Cook County homeowner tax relief enacted

From the Daily Herald


Cook County homeowner tax relief enacted
'7 percent' relief extended for tax bills
By Rob Olmstead Daily Herald Staff
Published: 10/22/2007 11:25 PM Updated: 10/23/2007 6:42 AM
As expected, Cook County board members on Monday enacted a form of homeowner tax relief recently passed by the state legislature.
While that will limit the increase in taxes you pay, it's probably a safe bet, however, that taxes will increase in the Northwest suburbs. That prediction is based on tax rates, which were also released Monday by the county clerk.
With the approval of the tax rates, the county can begin delivering tax bills that originally would have been due Oct. 1. Officials said that now bills will be delivered by Nov. 3 and will be due Dec. 2.
Although the rates affecting the bills appear to trend upward in most suburban taxing districts by single-digit percentages, that doesn't necessarily equate to a similar percentage increase in taxes. But it is generally safe to say, according to county officials, that if your tax rate is going up, so will your tax bills, because it's unlikely that many governments are decreasing the total amount they ask for, or levy.
Your bill could go up more than the tax rate increase if your increased home value from the last reassessment is still filtering in through the 7-percent-a-year relief measure enacted Monday.
For instance, if your assessed home value increases by 7 percent, and your tax rate increases 5 percent, you could get a tax bill higher by more than 5 percent.
The tax relief measure the county board passed Monday is commonly known as the "7 percent law." It limits to 7 percent the amount most homeowners' property values can increase for taxing purposes year over year. The assessment increase is artificially slowed by using a flexible exemption amount -- $5,000 to $20,000 -- subtracted from the assessed value of the home.
The intent is to keep taxes from skyrocketing in hot neighborhoods where value increases can far outpace inflation.
But the measure, originally enacted three years ago, was expiring, and the legislature passed a new form of it this year that initially increases the exemption amount to, in most cases, $33,000 the first year, $26,000 the next and $20,000 the third year.
Because Cook County is reassessed in three parts, one part per year, Chicago will be the first area to see the $33,000 exemption, applicable to this year's tax bills.
North and Northwest suburbanites will still be using the $20,000 maximum exemption under the old system for the tax bills that will be delivered in just a few weeks but will enjoy the benefits of the larger exemption with next year's bills. South suburban residents will see the larger exemption the year after that.

School Impact Fees for Retirement Communities?

So, here is the topic that I pose for feedback. As always reply on here, email me, or call me.

Recently developers with pending retirement communities have faced a new dilemma while bringing their projects before municipalities. Retirement communities generally have an age restriction of 55 or older. So, the question is should such a development, many of them large scale, be required to pay school impact fees?

Impact fees are often accepted by developers as the price of doing business. However, if a retirement community that is guaranteed to have no impact on the school district is proposed in a municipality, should they be required to pay school impact fees? The municipalities can argue that the residents of the retirement community could act as a voting block against future school referendums or they might argue that a community could change the age requirements in the future thus creating a direct impact on the school districts. Are these legitimate arguments?

A similar case was heard by the Florida Supreme Court back in 2000. The court ruled in favor of the developer. In the annexation agreement in FL the properties were deed restricted which made it nearly impossible for the age requirement to be changed at a later date. However, some developments don't use deed restrictions but rather include the age requirement as part of the development's by laws, which could easily be changed and have in some cases in Illinois.

So, should a retirement community of 55 yr old or better residents with deed restricted properties be required to pay school impact fees?

Anti-Crime Program

Anti-crime program optional for landlords
By Ames Boykin Daily Herald Staff
Published: 10/15/2007 11:59 PM
Beginning Jan. 1, landlords in Des Plaines will have a choice to make.
Aldermen approved a new program that will allow the city's nearly 600 landlords to decide whether to take part in a program to help crack down on crime in multifamily buildings.
This marks a leaner proposal than the one that stirred debate in late June since it would be voluntary, not mandatory.
A similar program in Mount Prospect is mandatory.
The program approved Monday also backs away from a controversial plan to force landlords to turn over a list of tenants and their addresses. Landlords wouldn't be required to do this.
If landlords choose to participate in the program, they would attend a seminar hosted by police where crime prevention and applicant screening would be discussed, Police Chief James Prandini said.
One of the suggestions includes putting a crime-free addendum in a lease. That would allow a landlord to start eviction proceedings in case of a crime.
Prandini supported making this voluntary since he's faced with a staffing crunch and lacks the officers to enforce a mandatory program.
This also would "let the program build on its own successes," Prandini said.
Those landlords who take part in the city's new program would be rewarded with a 10 percent discount on the city's rental license fee. The city charges $20 for each unit in a multifamily building.
Fifth Ward Alderman Carla Brookman and 3rd Ward Alderman Laura Murphy called the voluntary program a positive change.
Aldermen on Monday also decided to give police more power to crack down on nuisance activity, including unlawful use of weapons and drug possession.
Under the new law that would take effect Jan. 1, police could define a "chronic nuisance property" if they are called to the premises -- including the public way near the property -- at least three times in 180 days. In the case of prostitution and drug charges, a nuisance property would be defined as three police calls in 365 days.
Before, the property could be defined as a nuisance only if police made at least three calls in 60 days.
If a chronic nuisance problem is reported and a landlord refused to take measures to eliminate it, he or she would be required to attend police seminars to renew the rental license.

Springfield Update

“I feel as if I were a piece in a game of chess, when my opponent says of it: that piece cannot be moved.”
~Soren Kierkegaard

- On Tuesday, October 9th the IAR attended the House Mass Transit Committee subject matter hearing in Chicago that was held to solicit public testimony on the need for long term operations and capital funding for mass transit in Illinois. At this hearing, officials from the RTA and the various service boards once again testified to spell out their funding needs and potential reductions that would occur without significant revenue increases. The transit agencies testified that in their latest “doomsday” scenario, effective November 4th, deep service cuts and fare increases would occur. The CTA indicated, for example, that fares would increase to $3. This hearing also focused on some alternatives to the current proposed increase in the regional sales tax and the city of Chicago’s real estate transfer tax- such as the idea floated by the Governor’s office to tax commercial parking spaces. There was no resolution at the hearing and discussions continue.

- The General Assembly was in session this week Wednesday-Friday.

- There was NO action on either of the bills dealing with mass transit funding. As noted, the two bills, SB 572 (in the House) and HB 3667 (in the Senate) include both a regional sales tax increase and the authority for a real estate transfer tax increase in the city of Chicago. The language in both SB 572 and HB 3667 STRONGLY OPPOSED BY THE IAR is the authority for the Chicago city council to increase its real estate transfer tax by $3 per $1,000 for funding the CTA pension bond without following the law which requires a public hearing and voter approval by referendum. The House of Representatives rejected this proposal in early September but we anticipate that the issue will be called again within the next two weeks. THANK YOU FOR YOUR RESPONSE TO OUR CALLS TO ACTION ON THIS CRITICAL ISSUE. WE NEED TO KEEP THE MESSAGE LOUD AND CLEAR TO MEMBERS OF THE GENERAL ASSEMBLY AS WELL AS TO THE MEMBERS OF THE CHICAGO CITY COUNCIL AND MAYOR DALEY THAT AN INCREASE IN THE REAL ESTATE TRANSFER TAX SHOULD BE REJECTED!

- The Senate took final action on the so called “7% solution” legislation by concurring with action taken by the House last week to override the Governor’s amendatory veto of House Bill 664. As you recall, the Governor had used his amendatory veto power to modify language in HB 664 to increase the assessment cap and to make it permanent (rather than a 3-year phase out). On Friday, the Senate overrode the Governor’s veto on a roll call vote of 55-1-0, with only Senate President Emil Jones voting NO. The House overrode these changes last week on a roll call vote of 92-19-0. The IAR and a broad coalition of business and education groups SUPPORTED the override effort despite the fact that the group OPPOSED the original bill. This override action by the Senate is FINAL action so the provisions of HB 664 are now law. To recap the provisions of HB 664:
- The alternate general homestead exemption (a.k.a. the 7% solution) is extended for an additional three years with an increase in the exemption cap in the first two years. The original 3-year program had a cap established at $20,000 but this three year extension will provide for a cap of $33,000 cap in the first year, a $26,000 cap in the second and then will revert to the current $20,000 cap in the third year;
- Language was also approved for a long-time occupant homestead exemption for qualified properties in any county that adopts the 7% solution (currently only Cook County);
- There are also changes and additions in various exemptions that will apply statewide: an increase in the general homestead exemption; an increase in the senior homestead exemption; a change in the income levels to qualify for the senior freeze or the circuit breaker; a new disabled homestead exemption; a new returning veteran homestead exemption; a new disabled veteran homestead exemption and a provision that would allow a municipality or county to abate some or all of its own taxes on property of a surviving spouse of a fallen police officer, firefighter or rescue worker.
- Property tax bills in all counties must now include information about tax exemptions, abatements and other taxpayer assistance programs;
- A uniform method is established to provide direction to counties for assessing wind farms;
- A county board would be allowed, upon the recommendation of the county treasurer, to waive the interest penalty on delinquent payment of taxes for brownfield sites.
- Lastly, HB 664 creates a 9-member Property Tax Reform and Relief Task Force charged with looking, once again, at the issue of property tax reform and to report its findings to the General Assembly by January 1, 2010.

It is anticipated that tax bills in Cook County, which had been held up pending resolution of this issue, will be sent out to property owners in early November.

- On Wednesday, the House approved a negotiated version of Senate Bill 546 on a roll call vote of 71-40-0 and sent the measure back to the Senate for their consideration. This bill, which would enact a pilot program in Cook County to enhance the information collected by a notary public when notarizing real estate conveyances, is aimed at combating and enhancing the ability to prosecute mortgage fraud. The bill, introduced in February, had been languishing since a House Amendment was filed in May, but was revitalized this week. SB 546, as amended, amends the Illinois Notary Public Act to require that a “notarial record” be created in connection with each notarized document of conveyance. That notarial record would contain extensive information about the person whose signature is being notarized, including a thumbprint of the person. The bill permits a fee of up to $25 for each notarial act relating to real property conveyances in Cook County. The Cook County Recorder of Deeds would retain the completed forms, and the contents of the forms would be exempt from public disclosure. If the bill were to become law it would become effective July 1, 2008, and would “sunset” on July 1, 2011. The measure was negotiated by State Senator John Cullerton and the Illinois State Bar Association among various affected groups. The IAR is currently NEUTRAL on the legislation.

- The Illinois Department of Financial and Professional Regulation sprung a surprise amendment on regulated groups on Thursday, October 11th. Senate Amendment #2 to House Bill 2973, which was not available for review until minutes before the hearing before the Senate Financial Institutions Committee, amends the Title Insurance Act to require that in every residential mortgage transaction in the state, the title insurance company, title insurance agent, or independent escrowee handling the transaction must file with the Secretary of IDFPR the names and license numbers of each financial institution, mortgage broker, mortgage banker, real estate licensee, real estate appraiser, and closing agent involved in the transaction, no later than 7 days after the closing. The expressed intent of the Department is that they need the information to further their investigations when they encounter fraudulent mortgage transactions. The IAR, along with the other affected groups, expressed the concern that all of this information might not be readily available to the title insurance agent or company, and that this may lead to further requirements by the title insurance industry prior to closings, thus further delaying and complicating closings. Confidentiality concerns were also raised. Due to the concerns expressed, Senator Iris Martinez, the sponsor of the measure, did NOT call the bill in committee. Later in the afternoon a meeting was held with the sponsor, the Department and all of the affected groups. The consensus was that this issue would be the subject of continued negotiation in the coming weeks.

- Another new issue considered this week was House Bill 2353. On Wednesday, Senator Iris Martinez filed Senate Amendment #3 to HB 2353 which was considered by the Senate Housing and Community Affairs Committee and full Senate on Thursday. HB 2353 amends the Illinois Affordable Housing Act to create the Illinois Housing Affordable Housing Capital Fund to finance projects of the Illinois Affordable Housing Program as authorized by IHDA’s comprehensive plan. The Senate approved HB 2353 on a roll call vote of 38-15-0 and sent to the House for their consideration. The deadline for final consideration by the House is November 2, 2007. This legislation is currently under review by the IAR.

- On Thursday, October 11th the House of Representatives followed earlier Senate action and OVERWHELMINGLY voted to override the Governor’s amendatory changes to Senate Bill 1201 on a roll call vote of 105-7-0. http://www.ilga.gov/legislation/votehistory/95/house/09500SB1201_10112007_005000M.pdf This legislation, which is now law, contains language to enable the Chicago Metropolitan Agency for Planning (CMAP) to establish and implement an integrated policy for development and transportation planning. The action by the General Assembly restores a provision removed by the Governor that was essential to our SUPPORT of the measure; i.e. the creation of a Wastewater Committee to deal with facility planning areas (FPAs).

- The Senate also followed the House action in an override of the Governor’s veto of House Bill 3729 on a roll call vote of 58-0-0. This bill, which is now law, amends the Private Sewage Disposal Licensing Act to authorize the Illinois Department of Public Health to allow the use of alternative private sewage disposal systems under specific circumstances. The IAR was NEUTRAL on this legislation.

- There was also final legislative action on override motions of the Governor’s TOTAL veto of two bills that extended the life of two specific Tax Increment Financing Districts (TIFs). The veto of House Bill 2036, sponsored by Representative Chapin Rose and Senator Dale Righter, which would extend the life of a TIF in the city of Villa Grove was overridden by the Senate on Thursday on a roll call vote of 56-0-0. The veto of Senate Bill 247, sponsored by Senator Frank Watson and Representative Bob Flider, for the extension of a TIF in the village of Mt. Zion was overridden by the House on Thursday on a roll call vote of 109-3-0. Both bills now become law. In related action, the Senate advanced a new TIF extension measure for the city of DeKalb contained in Senate Amendment #1 to House Bill 1514. This legislation, sponsored by Senator Brad Burzynski and Representative Bob Pritchard, was approved by the Senate on Thursday on a roll call vote of 55-2-0 and must still be acted upon by the House of Representatives. The deadline for final consideration by the House is November 2, 2007. The IAR is NEUTRAL on these bills.

- The Illinois State Senate unanimously concurred with earlier House action on Senate Bill 478. SB 478 amends the Eminent Domain Act to grant the requisite legislation authority to the village of Skokie to use quick-take eminent domain powers for a period of 12 months for the purpose of pedestrian and motor vehicle access at a rail transit station and for road improvements. The House had approved this measure last week on a roll call vote of 74-30-0. The IAR was NEUTRAL on SB 478 which has now been sent to the Governor for his consideration.

- The General Assembly adjourned on Friday, October 12th with no indication of the specific date that they will reconvene. However, it is speculated that the House and Senate will return the last week of October.


For more information, contact Greg St. Aubin, Director of IAR Governmental Affairs, gstaubin@iar.org, or Julie Sullivan, Assistant Director, Legislative and Political Affairs, jsullivan@iar.org.

Contact information for members of the House and Senate, notice of committee hearings, text of legislation and roll call votes are all available on the Illinois General Assembly’s Web site, www.ilga.gov.

New Legislative Breakfast Dates

Don't Miss Our Next Two Legislative Breakfast Series Programs!

November 2nd State Senator Dan Kotowski (D-33)RANWC Arlington Heights Location 9am to 10am

November 9th State Senator Michael Bond (D-31)RANWC Libertyville Location
9am to 10am

The Senators will speak to our members on issues from Springfield. Many topics have a direct impact on the real estate industry. Breakfast will be served. Please arrive on time as the Senators will depart at 10:00am sharp.This is a free event. Please R.S.V.P to Jeff Metzger at 847-506-5031 or Jeff@ranwc.com by 11/05/07.

Springfield Update

“The most important single ingredient in the formula of success is knowing how to get along with people.”
~Theodore Roosevelt



Quorum Call is distributed Fridays when the Illinois General Assembly is in session. For more information, contact Greg St. Aubin, Director of IAR Governmental Affairs, gstaubin@iar.org, or Julie Sullivan, Assistant Director, Legislative and Political Affairs, jsullivan@iar.org. Full text of legislation cited in this newsletter can be found at www.ilga.gov.



- The Illinois House of Representatives held a day-long “Committee of the Whole” hearing on Monday to allow public testimony from those negatively affected by the dramatic budget cuts of the Governor. Later in the week the House overrode nearly all of the $463 million cut from the budget and sent the budget bill to the Senate for their consideration of the cuts. While the Senate President, Senator Emil Jones, had earlier indicated that he would not support efforts to override any of the reductions there may be some movement on that position. Any action would have to occur next week in the Senate.

- Limited action this week on the legislation dealing with mass transit funding as the Senate sponsor filed an additional amendment to House Bill 3667 but did not call the bill for a hearing or vote. The House Mass Transit Committee has scheduled yet another hearing next Tuesday, October 9th in Chicago. The IAR will participate in this hearing which is expected to focus on the capital projects proposal and funding options. While discussion continues at the Statehouse for other funding alternatives none of those alternatives has been drafted as amendments to either of the pending bills. As a reminder, there are two nearly duplicate bills pending on the mass transit package- SB 572 (in the House) and HB 3667 (in the Senate) which include both a regional sales tax increase and the authority for a real estate transfer tax increase in the city of Chicago. BOTH bills contain the identical language STRONGLY OPPOSED BY THE IAR creating the glaring exception in existing law for the city of Chicago to increase its real estate transfer tax without a public hearing and without voter approval. THANK YOU FOR YOUR RESPONSE TO OUR CALLS TO ACTION ON THIS CRITICAL ISSUE. WE NEED TO KEEP THE MESSAGE LOUD AND CLEAR TO MEMBERS OF THE GENERAL ASSEMBLY AS WELL AS TO THE MEMBERS OF THE CHICAGO CITY COUNCIL AND MAYOR DALEY THAT AN INCREASE IN THE REAL ESTATE TRANSFER TAX SHOULD BE REJECTED!

- The House and the Senate took alternate paths this week on the property tax exemptions package, which included the so called “7% solution” provisions for Cook County. As we reported last week, the Governor had used his amendatory veto power to modify language in House Bill 664 that had been negotiated between the chambers earlier to increase the assessment cap and to make it permanent (rather than a 3-year phase out). Representative Barbara Flynn Currie, the Majority Leader successfully pursued an override of these changes on Wednesday afternoon and the House approved the motion to override on a roll call vote of 92-19-0 (71 votes were needed for passage). This override effort was SUPPORTED by the broad coalition originally opposed to the bill (including IAR) because of the objection to the Governor’s changes making the 7% solution permanent and increasing the cap amount. The following link is the roll call vote on the override motion:
http://www.ilga.gov/legislation/votehistory/95/house/09500HB0664_10032007_016000M.pdf The Senate, however, embraced the Governor’s changes and codified the changes in an amendment to House Bill 315. On Tuesday afternoon the Senate Executive Committee voted to send House Bill 315 to the full Senate for their consideration by a vote of 8-4-1. The General Assembly adjourned for the week with the issue unresolved. The Senate did NOT move their version of the bill and it is unclear if they will consider the override motion on HB 664 next week.

- The Senate OVERWHELMINGLY voted to override the Governor’s amendatory changes to Senate Bill 1201 on a roll call vote of 53-1-0 (http://www.ilga.gov/legislation/votehistory/95/senate/09500SB1201_10032007_009000M.pdf). As you recall, this legislation contained language necessitated by the legislation from 2005 that combined two planning entities (the Northeastern Illinois Planning Commission and the Chicago Area Transportation Study) in the Chicago metropolitan area that created a special unit of local government- the Chicago Metropolitan Agency for Planning (CMAP). This special district is now charged with many of the functions carried out by the former entities dealing with the establishment and implementation of an integrated policy for development and transportation planning. The Governor opted to remove an important provision of SB 1201 that was essential to our support of the measure; i.e. the creation of a Wastewater Committee to deal with facility planning areas (FPAs). In order for this bill to become law over the objections of the Governor the override motion must also be approved in the House which is expected to occur next week.

- Another bill vetoed by the Governor was House Bill 3729. This bill amends the Private Sewage Disposal Licensing Act to authorize the Illinois Department of Public Health to allow the use of alternative private sewage disposal systems under specific circumstances. The Governor did not specify his reasons for the veto beyond that he did not agree with “some aspects” of the legislation. The House unanimously overrode the Governor on a roll call vote of 113-0-0. The override motion must be acted upon by the Senate next week. The IAR was NEUTRAL on this legislation.

- There was also legislative action on override motions of the Governor’s TOTAL veto of two bills that extended the life of two specific Tax Increment Financing Districts (TIFs). This action was taken by the Governor despite the fact that he had signed into law similar legislation for other communities. The veto of House Bill 2036, sponsored by Representative Chapin Rose and Senator Dale Righter, which would extend the life of a TIF in the city of Villa Grove was overridden on Tuesday by the House on a roll call vote of 110-3-0. The motion now must be considered by the Senate. The veto of Senate Bill 247, sponsored by Senator Frank Watson and Representative Bob Flider, for the extension of a TIF in the village of Mt. Zion was overridden by the Senate on Wednesday on a roll call vote of 54-0-0. This motion must now be acted upon by the House. The IAR was NEUTRAL on these bills.

- The General Assembly will reconvene next week on Wednesday, October 10th and are scheduled to be in session the remainder of the week.


For more information, contact Greg St. Aubin, Director of IAR Governmental Affairs, gstaubin@iar.org, or Julie Sullivan, Assistant Director, Legislative and Political Affairs, jsullivan@iar.org.

Vernon Hills

From the Daily Herald

Letters warning of jail to cease
Developer no longer has to point out juvenile jail to its condo shoppers
By Mick Zawislak Daily Herald Staff
Published: 10/2/2007 12:32 AM
When it comes to housing, Vernon Hills officials believe in truth in advertising.
That's why the village sometimes requires developers to include a "letter of awareness" in literature for would-be buyers.
For the exclusive River's Edge condos on the southeast side of town, Weiss Development was required to highlight two points.
One was the access to the property was right-turn-in/right-turn-out from Milwaukee Avenue and may stay that way. The other noted the property immediately north is the Depke juvenile justice complex, housing a juvenile detention center.
That initially wasn't a problem for developers Helen and Jerry Weiss. But with the struggling real estate market, the couple argued that referring to the Depke center was not helping.
The village board has informally agreed and will eliminate the need for the letter.
The couple recently told trustees the letter initially served as another bit of information buyers would factor into their decisions.
"In its totality, (the location of Depke center is) no more negative than the tollway," said Helen Weiss, the company's principal.
But once the sales office opened on site, some began to wonder why the juvenile facility was singled out, since it's well-identified and is visible from the street.
"There's a hidden agenda in people's minds -- what is this letter really saying?" said Jerry Weiss. "It raises red flags."
The development is on 5 acres adjacent to the Half Day forest preserve, with prices ranging from $350,000 to $538,000. The site is one of natural beauty and the views are a big selling point, Helen Weiss said. She said 70 percent of the units have been sold, but the pool of buyers has shrunk to a "disturbingly low level." Twelve units remain.
"Everybody asks what's on the north and we present it. But an awareness letter? I don't know what you're protecting people from," she told the village board.
Mayor Roger Byrne said the letters are meant to protect buyers, noting one instance in which a sales model at another development did not identify a sewage treatment plant.
"We've developed this mentality and it's a healthy one," he said. Yet as the Depke center is obvious, he didn't consider the Weiss' request to strike the reference unreasonable.
The letter is a village policy that can be changed, not a requirement.
The board voted 6-1 to remove the reference to Depke. Trustee Thom Koch dissented.
"You still should point stuff out to people. That's just how I feel," he said.
In a second vote, the board eliminated the letter of awareness for the project, agreeing Milwaukee Avenue access also was a case of what you see is what you get.

Cook County Tax Relief????

From the Daily Herald

Cook County tax relief may end after this year

Homeowners could face bigger bills if lawmakers fail to pass new measure

By Joseph Ryan Daily Herald Staff
Published: 9/28/2007 12:22 AM
The average homeowner in Northwest Cook County could be on the hook for $1,500 more in property taxes next year if lawmakers allow a relief measure to fail in the coming weeks, says county Assessor James Houlihan.
"It is unfortunate that this is part of the Springfield chaos," Houlihan told the Daily Herald editorial board Thursday.
Cook County tax bills for next year -- not the ones hitting mailboxes this fall -- hang in the balance of a showdown with Gov. Rod Blagojevich and Houlihan on one side and Democratic House Speaker Michael Madigan on the other.
Both sides favor some form of property tax relief that will stave off the jolting hikes in house values from the rising markets.
A relief measure meant to accomplish the same thing was approved three years ago and it protects homeowners in Northwest Cook County communities who are currently receiving reassessment increases of 26 percent or more. However, it expires when next year's bills come out.
But the battle for next year is over the details -- a disagreement that threatens to, as they say, throw the baby out with the bath water.
Blagojevich and Houlihan want a measure that will grant a $40,000 homestead exemption permanently as a way to equalize property taxes countywide and limit the amount of increases for homes with values that jump considerably over a short time period.
But Madigan and many other lawmakers favor a plan to phase out the exemption over the next three years because they argue the plan shifts the tax burden onto businesses and owners of lower-cost homes. Plus, they point to a cooling housing market as a sign relief won't be needed in the next few years.
Madigan's version of the plan was approved by lawmakers earlier this year, but Blagojevich nixed it and sent back another version that makes the higher exemptions permanent.
Madigan isn't going along with the new version and has vowed to fight it. And if the plan fails, no tax relief will be coming along with the tax bills next year.

Program Gives Veteran Discounted House

From the Daily Herald

Program provides soldier with discounted home

By Georgia Evdoxiadis Garvey Daily Herald Staff

Published: 9/26/2007 12:17 AM

The building on Phillip Drive in Zion has been a house for some time.
But when former Marine Sgt. Miguel Delgado, his wife, Cristhian, and daughter Ohani move in this week, that's when the structure becomes a home.
And when one wounded Iraq war veteran's dreams come true.
"That's always been our plan, to buy a home," Miguel Delgado said, noting their income made it seem impossible. "It means the world to us."
That gratitude became the theme of the day Tuesday, when Deer Point Homes and the Wounded Heroes Foundation unveiled the first of three homes provided at a discount designed to make homeownership a reality.
"It's just amazing that so many people have come together," said former Army Sgt. Gabriel Garriga, who will move in just down the street from Delgado when his house is finished. "We're all very grateful for it."
But Richard Pietranek Sr., founder of Deer Point Homes, a Wauconda-based developer, said the gratitude extends in all directions.
"We are here to build the American dream for those who defend it," Pietranek said. "Please don't thank us."
Deer Point Homes and its subcontractors provided $150,000 in discounts on three houses in Zion to veterans who were seriously wounded in Iraq.
And the Wounded Heroes Foundation raised $60,000 more in grants, mortgage help and money for essentials for the same veterans.
"We have over 34,000 wounded. Their lives will never be the same again," Wounded Heroes co-founder Anna Sherony said. "Some of them can't even make change at Wal-Mart."
The organization chose the recipients for the houses by matching them with area builders who expressed interest in helping in the areas in which the veterans wanted or need to live.
"You can't listen to their stories without being moved," said Patrick Smith, vice president of Deer Point Homes, remembering the foundation asked at first for a small discount for the veterans. But all the developer's subcontractors donated something to the cause. "It's been such a wonderful experience."
Sherony, who estimated about 40 percent of the houses' costs will be covered by donations, said she hopes to take the housing program national but already has a list of veterans in other areas of Illinois who need the same kind of discounts Deer Point gave.
"If every builder was able to do that, there would be no heroes without homes, affordable homes," Sherony said.
And though there will be time for more work, everyone said, Tuesday was about giving the Delgados the gift they had been waiting for.
"I'm just anxious," Cristhian Delgado said before the unveiling. "I can't wait to get in there."

A Message from the NAR President

Having an efficient and effective National Flood Insurance Program (NFIP) to protect residential and commercial properties is essential to the purchase and transfer of real property in every state of the union.

I strongly suggest that you ask your Member of Congress to vote for the Flood Insurance Reform and Modernization Act of 2007, HR 3121.

The National Flood Insurance Program (NFIP) offers essential protection for homeowners vulnerable to flooding and helps lower federal expenditures for disaster recovery. It is critical that flood insurance remain accessible and equitable for every property owner situated in a floodplain.

Floodwaters know no boundaries--virtually every state in the country has experienced significant flooding. According to the U.S. Geological Survey (USGS) floods were the number-one natural disaster in the United States, during the 20th century, in terms of the number of lives lost and property damage.

Sincerely,
Pat V. Combs, NAR President

Governor's Veto Rewrite

I would like to hear our member's reaction to the news of the Governor's amendatory veto rewrite....

From CBS 2 Chicago

Governor Signs Property Tax Relief Bill
Veto Rewrite Would Give Homeowners A Break, Cost Big Business Big Bucks
Mike FlanneryReporting
(CBS) CHICAGO Homeowners in Cook County could be in line for some property tax relief. Governor Rod Blagojevich's plan would give individual homeowners a break, and cost big business big bucks.As CBS 2 Political Editor Mike Flannery reports, the governor signed his amendatory veto rewrite of the property tax relief bill in front of the North Side home of former firefighter Mike Vacala, his wife Linda and their daughter, Alexa."I believe it's good news," Vacala said. "It's something we need."The Vacalas said they paid $90,000 for their brick home about a dozen years ago. While sellers of similar houses nearby are now asking for $500,000, the Vacalas complain that soaring property tax bills have accompanied those soaring valuations. The governor's attempted rewrite of the legislation gives individual homeowners a bigger break on taxes, while socking it to property owned by business."Should big commercial developers pay more of their fair share in taxes, so that homeowners pay less?" Blagojevich said. "The answer is 'yes.'"To get a sense of the big money that is at stake in this pending battle, here are some key numbers: If the Illinois general assembly approves the governor's rewrite, a typical Lincoln Square neighborhood home would see its bill go down an extra $638 next year. Taxes on downtown's John Hancock Building would jump up $277,130; on Prudential Plaza, an astounding $534,782.Rep. John Fritchey noted that, if business interests succeed in killing the governor's veto rewrite, homeowners could end up with no property tax relief."He's running a very real risk of leaving taxpayers with nothing," Fritchey said. "And I can't believe that's in anybody's best interest."This fall's tax bills are currently expected to go out Oct. 15, payable Nov. 15.

THANKS & CONGRATS

Thank you to everyone that participated in the RANWC Open House on Friday. A special thank you to Peggy Kayser and Donna Lundsford for their help with the RPAC/Government Affairs Booth.

Thank you to Congresswoman Melissa Bean for her time at the open house as well.

Congratulations to Chuck Wiercinski and Judith Halfman the winners of the iPod giveaways.

Prospect Heights Mayor Steps Down

Prospect Heights mayor steps down
By Ashok Selvam Daily Herald Staff
Published: 9/15/2007 12:28 AM
Citing unspecified health issues, Prospect Heights Mayor Rodney Pace unexpectedly resigned Friday, ending his five years in office.
"I'm all right. I'm having a little problem," Pace, 49, said cryptically. "I just don't need the added stress right now that mayorship brings."
Voters elected the 49-year-old Pace to his second term in April, when he defeated Kurt Giehler and longtime foil Gerald Anderson. Health problems aren't new for Pace, as he made an extended six-week hospital visit during his second year in office. He was first elected in 2003.
Pace would not reveal what ailed him, saying only that symptoms had begun "flaring up" recently. He said he made the decision to leave after a doctor's appointment last week.
Pace wrote a letter to residents and the council announcing his departure. He said he's most proud of street improvements and increasing the city's contribution to the ailing police pension fund. He said he was saddened his health problems wouldn't allow him to devote "110 percent" to his post.
Pace, a construction executive with the Maman Corp. of Palatine, said he did not think his ailment would force him to miss work from his full-time job.
Prospect Heights in the interim is without a mayor. The city council will hold a special meeting Thursday where the council could elect an alderman to fill out the remaining 18 months of Pace's term.
While Pace said he wouldn't endorse any of the five, he did say Fourth Ward Alderman Patrick Ludvigsen would be the most qualified.
Ludvigsen, the council's senior alderman, served as a Prospect Heights Park District commissioner with Pace. The two remain good friends, with Ludvigsen saying Pace was the "hardest-working person for Prospect Heights."
"I would definitely say that I would be interested in the position," Ludvigsen said.
Politics and name-calling in Prospect Heights make the mayor a lightning rod for criticism, Ludvigsen said. Pace's temper, which he has acknowledged was occasionally problematic, was put to the test by a vocal opposition.
One of the leaders of the opposition who tested that temper was Anderson -- a former alderman who briefly served as mayor. He had little to say Friday about the man who twice defeated him for mayor, saying only that he was "amused" by the resignation.
"He was elected in April, correct? Right now we're in September?" Anderson said. "He barely got started in the new term, then all of a sudden for a number of reasons he decided to bail out? It's very amusing from the standpoint why somebody would do that."
Former Wheeling Village President Greg Klatecki, who resigned his post in April, said political pressure may have gotten to Pace. The two worked together, as their towns border each other, and the towns co-own Chicago Executive Airport.
"It was like me. When you're under a lot of pressure, it's hard to function," Klatecki said. "And we're not talking about a job where you make a lot of money."
Klatecki said Pace was not like most suburban politicians. He wanted to do what he thought was the right thing and didn't really care what people thought of him, Klatecki said.
"There was no pretense with Rodney," Klatecki said. "He didn't change after he got the title."
Mount Prospect Mayor Irvana Wilks was shocked by the news.
"The last time I saw him, he was out doing the sandbagging for the big storm and the river coming up. … He loves his residents so much," Wilks said. "… I give him a lot of credit for all the different things that have happened in Prospect Heights. He's been, I think, a good leader for them in the last few years."
Pace said he's survived council meetings that often turned ugly and had to deal with the 2006 arson that burned down city hall.
He's watched voters reject multiple tax rate increase requests in his cash-strapped city, which he said had made governing difficult. In his resignation letter, he expressed frustration that he hadn't been able to persuade voters to support initiatives to improve the city.
He said he'll be all right. "A couple prayers from anybody will help; I'll take anything I can get. I know the power of prayer works wonders."

RTA Accepts Transit Rescue

RTA Accepts Transit Rescue
CHICAGO (WBBM/AP) - Commuters in the Chicago area can relax - at least for now.WBBM's John Cody reports that the RTA board accepted Governor Blagojevich's proposal to make cash advances to CTA and Pace to delay 'doomsday' plans that were set to take effect Sunday.During a morning meeting, the Regional Transportation Authority voted 10-2 to accept the state's bailout plan of the mass transit system.
Blagojevich will now advance $24 million to the CTA from an RTA subsidy fund used to underwrite the costs of providing rides to seniors, students and people with disability. He offered to advance Pace $54 million in state funds designated for paratransit service.
The offers contain no new money. RTA board members say the pressure is now on lawmakers to come up with a long-term solution. Legislators are expect to consider a plan as early as next week that would raise sales taxes in the Chicago area to shore up transit funding.
CTA contingency plans currently call for elimination of 39 bus routes effective Sunday, an increase in the base cash fare to $2.50, with a $3 rush hour "L" fare, the layoffs of 700 employees and deferral of heavy overhauls needed to keep aging buses and rapid transit cars from breaking down.

Up to Date Info on RTA/CTA

For up to date information on the RTA/CTA issue please visit http://thecapitolfaxblog.com/2007/09/13/is-it-legal-plus-mayor-governor-blasted-suburban-buses-left-out/

CTA accepts short-term funding fix

chicagotribune.com
CTA accepts short-term funding fix
By Jon Hilkevitch
Tribune transportation reporter
3:19 PM CDT, September 12, 2007

The CTA's top officials this afternoon accepted a $24 million funding advance proposed by Gov. Rod Blagojevich to avert fare increases and service cuts set to take effect Sunday and Monday, but the agency's doomsday scenario will still take place in November unless new funds are obtained.CTA Board Chairman Carole Brown announced the short-term solution after meeting in Blagojevich's Chicago office to discuss funding proposals. Before taking effect, the move needs to be green-lighted by the RTA in a meeting scheduled for Friday.Brown said the plan will "give the legislature more time to craft a long-term funding solution for the region."Blagojevich's offer did not involve new funds. Instead, the move would accelerate state payments scheduled for the CTA in 2008, allowing the agency to maintain service for the time being.Even if the RTA approves the proposal, the CTA will have to start making cuts Nov. 4.The CTA announced plans last month to raise fares Sunday and eliminate 39 bus routes Monday unless new state funding is approved to help the transit agency balance its 2007 budget.CTA President Ron Huberman has said the contingency plan must go forward in the absence of new funding to help shore up a $110 million CTA budget deficit. Any delay, coupled with a failure to secure additional state subsidies, would render the CTA unable to meet its December payroll and force a systemwide shutdown, Huberman said.

OPEN HOUSE Reminder

Just as a reminder, the 10th Annual RANWC Open House will take place this Friday from 3pm-dusk at the Arlington Heights office. Congresswoman Melissa Bean will be in attendance as well as the Illinois State Treasurers office with their unclaimed property data base.

I will have an RPAC/Government Affairs booth on hand where we will be giving away 2 brand new iPods. Please stop by the booth. I will be on hand for the event and will be happy to address any questions, concerns, or ideas that you have on issues relative to the Real Estate industry in DC, Sprigfield, or right in your own backyard.

See You There!

OFF

I am off today Friday September 7th. Have a safe weekend! Please check back on Monday for new updates.

Lawmakers Ditch Bailtout Plan for Chicago transit

A big thank you to all of the members that worked on this!!!

From the Daily Herald

SPRINGFIELD -- State lawmakers rejected a multimillion-dollar bailout of the Chicago region's transit agencies Tuesday, a move that not only threatens to curtail bus service and raise train fares, but soon could lead to thousands of additional cars flooding the area's highways.
The region's people movers say they need $240 million to cover operating deficits and millions more to upgrade and expand the system. They need it by Sept. 16, or, on the morning of the 17th, 400 fewer CTA buses will be running and other service cuts along with fare hikes will be implemented across the CTA, Pace and Metra.
But lawmakers fell short of the 71 votes needed in the 118-member House to immediately approve increasing the sales taxes in the Chicago area a quarter-cent to raise cash for the CTA, Metra and Pace and another quarter-cent for road and transit upgrades in the collar counties.
That would have added a combined 50 cents in tax to every $100 of spending on merchandise in the area. In some suburban communities, the effect would have been an overall sales tax near 10 percent, or $10 on every $100 tab.
The proposal got 61 votes, and when it was clear support wasn't there, sponsors used a procedural maneuver to wipe out the vote and preserve the opportunity to bring the plan back for future consideration.
House Speaker Michael Madigan, a Chicago Democrat, said he hopes to do just that before the Sept. 16 doomsday scenario and laid the blame for the plan's demise at the doorstep of Gov. Rod Blagojevich, who's threatened a veto because of the sales tax increase.
Madigan said a governor who lives in Chicago just blocks from the Brown Line should be helping pass this plan, not lobbying against it.
In a statement sent out after the vote, Blagojevich repeated his opposition to the tax and urged lawmakers to find another way.
"I believe a tax on working families for transportation is a backdoor fare hike, and I believe the legislature was correct in rejecting that approach," Blagojevich said.
But several area lawmakers feared what will happen if something isn't done soon. State Rep. Suzie Bassi, a Palatine Republican, said most Metra riders have access to other transportation and envisioned them all driving if the train times and prices become inconvenient.
"Do you want to see 70 percent more cars on the road?" Bassi said.
State Rep. Julie Hamos, an Evanston Democrat who sponsored the plan, said she hopes the doomsday scenario won't need to occur in order for lawmakers to take this seriously.
"I reject that as a cynical way to do business in Springfield. I'm hoping we will not get that far," Hamos told reporters. "It should not require pain … for us to take action or tackle the serious issues of the day."
The details of the plan got little public criticism during a lengthy House debate. Rather, many Republican lawmakers said mass transit should be part of a bigger proposal addressing all the state's transportation needs.
"We need to do something about mass transit, but we need to integrate it with a road program," said House Republican leader Tom Cross of Oswego. "You can't do one without the other."
But political differences have kept such a plan from becoming reality for more than five years at the Capitol and there's been little indication a resolution is coming.

Congress Holds Predatory Lending Hearing

The House Committee on Financial Services is holding a hearing on Credit and Mortgages at 9:30 am (our time). Here is a link to the Committee site. There is a link in there to a webcast of the hearing if you’d like to watch it. Have a great day everyone.

http://www.house.gov/apps/list/hearing/financialsvcs_dem/090507.shtml

NAR Govt Affairs Update

Congress Returns to Washington, DC on September 5, 2007 Mortgage Market Turmoil will be a Top Priority Although Members of Congress have been at home during the “District Work Period” NAR has been working with Congressional Staff, Regulatory Agency Staff and other housing industry groups to address the serious issues that have developed in the Mortgage Market over the summer. NAR has prepared the following talking points to help you address potential questions from your members.If you would like to distribute this email you might want to use the PDF attached. TALKING POINTS:
Key elements of the administration proposal to be released today have already been suggested by NAR as early as April of this year.
Expansion of FHA insurance for Delinquent Borrowers FHA will offer government backed refinancing to subprime borrowers who have generally good credit records and income verification, even if the borrower has recently become delinquent. Current FHA underwriting rules prevent FHA from guaranteeing a loan to a delinquent borrower.
The waiver of the underwriting rule is designed to assist borrowers hit by so called “exploding ARMS”, which adjust substantially upward from an initial low teaser rate.
Fannie Mae and Freddie Mac have already adjusted their guidelines to permit refinancing for delinquent borrowers.
Eases 3% equity requirement for FHA insurance opening refinancing into an FHA mortgage to people who are upside down on their mortgages.
Raising the loan limits in high cost areas to $417,000 from current $362,000
Encourage Private Loss Mitigation Efforts. HUD and Treasury will work with lenders to identify borrowers at risk of default and encourage stepped up loss mitigation efforts.
NAR has produced a series of consumer education brochures with the Center for Responsible Lending, and NeighborWorks® America.
These brochures are available at www.realtor.org/subprime
Freddie Mac/Fannie Mae
The administration is not seeking to expand the ability of Freddie Mac and Fannie Mae to purchase loans, despite calls from NAR and some Members of Congress to do so.
Mortgage Forgiveness Tax Relief
The administration will ask for a temporary suspension of the law requiring that any amount of mortgage forgiveness be treated as income by the IRS.
In anticipation of potential problems, NAR worked with Congressmen Rob Andrews (D-NJ) and Ron Lewis (R-KY) to introduce HR 1876, the Mortgage Cancellation Relief Act of 2007 on April 17, 2007
Companion legislation in the Senate S. 1394 was introduced by Senator Debbie Stabenow (D-MI) on May 15, 2007
NAR will work closely with our REALTOR® champions on Capitol Hill when Congress reconvenes after Labor Day to implement the reforms necessary to develop greater stability in the market.

Mayors want towns to help residents

Fighting foreclosure
Mayors want towns to help residents
By Bob Susnjara Daily Herald Staff
Published: 9/4/2007 6:14 AM Updated: 9/4/2007 7:06 AM

Tall grass.
Homes in disrepair.
For-sale signs clustered in a single neighborhood.
Suburban leaders say they are concerned when they see these things -- red flags that foreclosure is looming, or that it has already happened.
While elected officials say they can't provide money to solve residents' woes, some are getting ready to have their village halls offer other kinds of help. Entire communities can get a black eye from too many foreclosed properties, they said.
Suggestions on how municipalities can prevent foreclosures came at a recent meeting of the Metropolitan Mayors Caucus, which has 272 members from the Chicago area.
Many of the ideas presented were easy and free to implement. For example, villages could provide links on their Web sites to agencies that counsel distressed homeowners.
Round Lake Mayor Bill Gentes said it would make sense for his village hall to be a resource for residents who find themselves facing foreclosure.
Gentes' village had 60 foreclosures, or 38.49 per 1,000 owner-occupied units, in 2006, according to data on the six-county Chicago area compiled by the Woodstock Institute and distributed to government officials by the mayors caucus. Last year was the first year town-by-town data was collected.
"The American dream is homeownership," Gentes said. "It's not foreclosure."
Mayors who attended the conference said suburban officials are typically concerned about providing traditional services such as police and fire protection. Whether they decide to help residents facing foreclosure likely depends on if they believe the problem exists in their communities.
Foreclosure has become a national concern. About 179,600 foreclosure filings were reported in the United States in July, above the 92,845 logged in the same month in 2006, according to California-based RealtyTrac Inc.
Resetting of adjustable-rate mortgages and subprime loans that were made to borrowers with shaky credit are among the reasons for the foreclosure boom.
Beth Dever, housing director for the Metropolitan Mayors Caucus, said foreclosures don't affect just the families forced out of their houses. There are the ancillary effects on cities, she said, such as unruly lawns, delinquent property taxes, the potential for neighborhood blight -- and tarnished images of a town.
Dever said because municipalities have a vested interest in foreclosure, local governments should lend a helping hand to distressed homeowners, who don't always know where to turn. She said some mayors reported their village halls have already received calls from worried residents.
At minimum, Dever said, towns should be able to direct distressed homeowners to federal Department of Housing and Urban Development-certified counseling agencies. Towns also should know to recommend the Homeownership Preservation Foundation's HOPE hotline for confidential financial help.
Dever said residents might be more willing to approach a village hall for help.
"I think it's seen as a more comforting local entity than a faceless mortgage broker," she said.
Research shows about 50 percent of delinquent homeowners avoid contact with the lender in the hope the problem disappears, according to NeighborWorks Center for Foreclosure Solutions in Washington, D.C. Many in trouble don't act on quality advice.
Sheila McCann, executive director of the DuPage Homeownership Center, said some DuPage County towns allow her nonprofit group to use public buildings for homeownership seminars.
"It's a win-win for everybody in the community," she said. "Certainly, everyone doesn't want to see abandoned homes or foreclosures."
Gentes said he's concerned about one Round Lake subdivision now marked by abandoned homes, clusters of for-sale signs and other signs of distress.
Problems at the four-year-old Lakewood Grove subdivision, near Route 60 and Cedar Lake Road, stem in part from individual investors who bought a number of homes with the idea of unloading them for a quick profit, Gentes said. He said 10 to 15 homes have been abandoned at Lakewood Grove.
Some investors purchased houses and used a rent-to-own concept to lure occupants with poor or shaky credit. Gentes said the downfall came when the owners dramatically hiked the monthly payments because of higher taxes, sending the residents fleeing and leaving empty homes.
Gentes said he's seen newspapers and trash pile up at homes where no one's living. That can make the whole town look bad, not just a particular subdivision.
Dever said the mayors caucus has cited Chicago as an example of a city trying to prevent foreclosures through its Home Ownership Preservation Initiative. The program has been promoted on CTA buses and trains.
Part of it involves assisting borrowers connect with lenders to find ways to halt the foreclosure process. The city also has gone to faith-based organizations to spread the word about mortgage fraud.
Mayors such as Gentes have a better picture about foreclosures because the 2006 foreclosure report by the Woodstock Institute was its first city-by-city examination. The study was requested by Chicago's housing department.
Geoff Smith, research director of the nonprofit group that specializes in community economic development, said mayors can't take action about a foreclosure problem if they don't know what's happening in their backyards. He said the Woodstock Institute will release a second city-by-city foreclosure study at year's end, which can be compared to the 2006 data.
Carpentersville Village President Bill Sarto said he's willing to have his town provide information to residents in trouble with their homes. Carpentersville had 212 foreclosures or 30.26 per 1,000 owner-occupied units in 2006.
"I certainly see it as a problem for all communities where people are on the bubble or the bubble has burst beneath them," Sarto said.
Tips for avoiding foreclosure
Don't ignore the problem: The further behind you become, the harder it will be to save your home.
Contact your lender: Lenders do not want your house. They have options to help borrowers through difficult financial times.
Open and respond to mail from your lender: The first notices you receive will offer good information about foreclosure prevention options. Later mail might include important notice of pending legal action.
Understand your options: Learn about foreclosure prevention options at www.fha.gov/foreclosure/index.cfm. Contact a HUD-approved housing counselor: The U.S. Department of Housing and Urban Development funds free or very low-cost housing counseling nationwide. Call (800) 569-4287 or TTY (800) 877-8339.
Avoid foreclosure prevention companies: Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three months' mortgage payment) while a HUD-approved housing counselor will help for free if you contact them.
Don't lose your house to foreclosure recovery scams: If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home. Get professional advice from an attorney, a trusted real estate professional or a HUD-approved housing counselor.
Source: HUD
Where to turn
NeighborWorks America and the Ad Council have joined forces to target a public service advertising campaign at homeowners in danger of foreclosure. Two Web sites and a toll-free number are offered.
• Confidential financial counseling is available from the Homeownership Preservation Foundation's HOPE hotline at 1 (888) 995-HOPE. Free, unbiased advice is available in English and Spanish 24 hours a day.
• Foundation's Web site is at www.foreclosurehelpandhope.org. The foundation is a Minneapolis-based nonprofit agency dedicated to preserving homeownership and preventing foreclosure.
• Also check NeighborWorks America's Web site at www.nw.org/foreclosuresolutions. NeighborWorks is a national nonprofit organization created by Congress to provide financial support, technical assistance, and training for community-based revitalization efforts.
Source: NeighborWorks America

President Bush Outlines Aid For Mortgage Holders

Bush outlines aid for mortgage holders

By DEB RIECHMANN, Associated Press Writer

President Bush on Friday outlined ways to help homeowners facing foreclosure — the administration's first effort to deal with an expected wave of defaults fueled by the mortgage crisis.
The initiatives, which are not aimed at bailing out lenders or speculators, are designed to help homeowners with risky mortgages keep their houses. In remarks in the Rose Garden, Bush also discussed efforts to keep the problems from arising in the future.
"The government's got a role to play, but it is limited," Bush said. "A federal bailout of lenders would only encourage a recurrence of the problem."
The president insisted that the U.S. economy was strong and could weather recent turbulence in the financial markets. He said the mortgage market, especially the subprime sector, has shown particular strain. One of the most troubling developments has been an increase in adjustable-rate mortgages, which start out with low interest rates, then reset to higher rates after a few years.
"This has led some homeowners to take out loans larger than they could afford based on overly optimistic assumptions about the future performance of the housing market," Bush said. "Others may have been confused by the terms of their loan, or misled by irresponsible lenders. Whatever the reason they chose this kind of mortgage, some borrowers are now unable to make their monthly payments, or facing foreclosure."
A key element of Bush's plan would allow homeowners with good credit histories, but who cannot afford their mortgage payments, to refinance into mortgages insured by the Federal Housing Administration to keep from defaulting.
Earlier this month, Bush predicted that the ongoing decline in the housing market wouldn't become precipitous, but would result in a "soft landing."
He rejected any direct government aid to homeowners losing their houses to foreclosures, saying he only supported federal government help that would encourage refinancing and educate prospective home buyers about risky mortgage terms
"Anybody who loses their home is somebody with whom we must show enormous empathy," the president said at an Aug. 9 news conference. "The word `bailout,' I'm not exactly sure what you mean. If you mean direct grants to homeowners, the answer would be no, I don't support that."
On Friday, Bush:
• Urged Congress to pass legislation that would give the Federal Housing Administration more flexibility to help mortgage holders with subprime mortgages.
• Pledged to work with Congress to reform the tax code to help troubled borrowers rework their loans.
• Called for rigorously enforcing predatory lending laws and strengthening lending practices.
Foreclosure and late payments have spiked, especially for so-called subprime borrowers with blemished credit histories or low incomes. Higher interest rates and weak home values have made it impossible for some to pay or to keep up with their monthly mortgage payments. Some overstretched homeowners can't afford to refinance or even sell their homes.
Mortgage foreclosures and late payments are expected to worsen. Some 2 million adjustable rate mortgages are to reset to higher rates this year and next. Steep penalties for prepaying mortgages have added to some homeowners' headaches.
The economy enjoyed a strong revival in the spring although growing troubles in housing and credit markets have darkened prospects considerably since then. The Commerce Department reported Thursday that the gross domestic product grew at an annual rate of 4 percent in the second quarter — the strongest showing in more than a year.
But that growth could be the best showing for some time as the economy continues to be battered by the worst housing slump in 16 years and a widening credit crisis that has sent financial markets on a roller-coaster ride in recent weeks.

RANWC Govt Affairs in the News

from the Daily Herald

Realtors oppose teardown fee plan
By Ames Boykin Daily Herald Staff
Published: 8/27/2007 6:01 AM

Word that Rolling Meadows may impose a fee of as much as $5,000 on teardowns has prompted a group representing Northwest suburban real estate agents to prepare to fight what it dubs a "teardown tax."
City officials next month plan to discuss imposing a $1,500 fee for homes that are completely demolished to make way for larger homes. Leaders say replacing the city's post-World War II homes can change the character of the neighborhood.
A city committee looking at maintaining affordable housing in Rolling Meadows has suggested increasing the proposed fee to $5,000.
Jeff Metzger, government affairs director for the Realtor Association of Northwest Chicagoland, said the fee amounts to a tax. He questions how setting a fee would encourage affordable housing.
"We think property owners should have the right to do whatever they want with their property," Metzger said.
A person who razes a home to build a new one might not necessarily be building a larger one, he added.
Metzger said a newer home that sells for more on the market also improves the community and adds property taxes to the city's coffers.
City officials pushing for the fee, which will be formally discussed by aldermen next month, disagree.
"The increase in property values is precisely the phenomenon that keeps middle-class professionals and young families from being able to buy a home," said a report from the city's affordable housing committee.

Rolling Meadows Affordable Housing

For the past year we have been monitoring an Affordable Housing Ad Hoc committee in Rolling Meadows. Last night they made their recommendations public. We are opposed to a few recommendations within the report. The first being a proposed $5000 fee for a teardown. The second would be mandatory set asides for new developments. I am working with the City in hopes of defeating this proposal. If you live, sell or work in Rolling Meadows and would like to be involved in this process please contact me directly.

Please find below an article from the Daily Herald on this issue. Please note: the Daily Herald writes that the city already charges a $1500 tear down fee. That is not correct. Currently NO fee is charged by Rolling Meadows on a tear down. They are proposing a $5000 fee.

By Ames Boykin
rboykin@dailyherald.com
Posted Wednesday, August 22, 2007

Rolling Meadows is taking steps to ensure its post-World War II community stays affordable for families.
A committee formed to look at maintaining the state rules to keep towns at least 10 percent affordable returned recommendations Tuesday, including one to triple a fee for teardowns. The committee wants the city to commit to keeping its community at least 20 percent affordable.
In Rolling Meadows, 23 percent of the housing is affordable. According to the state, affordable applies to apartments renting for $775 or less, and homes or condos selling for less than $126,000.
Builders currently are charged $1,500 for teardowns, but a proposed change would increase it to $5,000. City council members will discuss the increase more next month.
When someone takes a more affordable home and replaces it with a more expensive one, 4th Ward Alderman Tom Rooney said it makes an impact. Rooney chaired the committee looking at affordable housing proposals.
Other recommendations include forcing new housing developments to include a minimum number of affordable units, and allowing more units for developments that exceed affordable housing requirements.
Aldermen will be discussing the proposals in the upcoming months to adopt an affordable housing plan in time for the new year.
Mayor Ken Nelson asked why the committee looked at maintaining a higher standard of affordable housing than the state’s 10 percent.
“This has always been a place where folks can come when they’re just starting out,” Rooney said.
All extra money from the city’s real estate transfer tax would be used for affordable housing policies, under the proposal.
Developers who would like to increase the number of units in their projects would get incentives under the plan. Should a developer build a 100-unit complex with 22 affordable units to make it 22 percent affordable, the city would let the complex build 11 more units, officials said.
While this would decrease the project’s affordable units, it would meet the city’s goal to keep 20 percent of units affordable.