IAR Quorum Call

- The General Assembly was STILL in session in this numbing historic overtime session. Friday marked the 64th day of overtime. The General Assembly has scheduled session for both days this weekend as the State moves ever closer to the August 8th date when services could be impacted by the lack of a budget.

- Rumors began to circulate this week that fund sweeps were being considered in the budget meetings. As you recall, the IAR filed a lawsuit in June of 2006 in the Circuit Court, Seventh Judicial Circuit, Sangamon County, Illinois against six officials of the State of Illinois challenging the constitutionality of the Fiscal Year 2007 budget that included such a fund sweep that would have transferred over $5 million from the Real Estate License Administration Fund. The IAR entered into a stipulation in the case last year that precluded the State from transferring any funds from the Real Estate License Administration Fund to be used for any purpose other than those specified in the Illinois Real Estate License Act without giving the IAR 21 days notice. This was done to provide the IAR the opportunity to have a hearing in court for a preliminary injunction to bar the transfer.

- On Wednesday the Senate Financial Institutions Committee approved Senate Bill 1167, the revised version of the predatory lending/4050 legislation that has been discussed throughout the spring session, on a roll call vote of 8-1 and sent the measure to the full Senate for final consideration. There was discussion regarding the fact that the association representing the mortgage brokers reversed their position on the bill. As reported last week, the association had filed a recorded committee witness slip in support of the bill in the House but now the association opposes the bill once again. The association did not have a representative speak at the Senate hearing. As you recall from earlier editions of Week in Review, this issue has been the subject of many negotiating sessions among all affected parties. The IAR is 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. This legislation will provide that only first time homebuyers must get counseling, 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 would apply to borrowers who are refinancing, but that has not been a major issue for REALTORS). If signed by the Governor, the new program would become effective July 1, 2008.

- Meetings continued at the Capitol this week on the mass transit legislation (SB 572). The IAR remains OPPOSED to the section of the proposal that grants a glaring exception to the State law that mandates that there be a public hearing and a vote by affected citizens by referendum in order for a home rule unit to increase an existing real estate transfer tax. This bill authorizes the Chicago City Council to increase its real estate transfer tax (currently $7.50 per $1,000 paid by the buyer) WITHOUT A REFERENDUM but merely by passage of an ordinance. The ordinance for the �supplemental� real estate transfer tax increase of up to $3 per $1,000 would be for the sole purpose of providing financial assistance to the CTA for funds for debt service for the pension bond. The city would have to enter into an intergovernmental agreement with the CTA- the term of the intergovernmental agreement is to be �for a term expiring no earlier than the final maturity of bonds or notes that it proposes to issue� for pension bonds- stated to be the year 2039! An increase of $3 per $1,000 represents a whopping 40% TAX INCREASE in the city�s real estate transfer tax imposed on the city�s property owners. PLEASE CONTINUE YOUR E-MAILS AND/OR CALLS TO YOUR ELECTED OFFICIALS AGAINST THIS PROPOSAL! TELL THEM NO TO THE PROPOSAL TO TAKE AWAY THE RIGHTS OF THE VOTERS AND NO REAL ESTATE TRANSFER TAX FOR TRANSIT!!!

- On Thursday, August 2nd the House Revenue Committee adopted House Amendment #4 to Senate Bill 1400 that would extend the life of the Tax Increment Financing Districts in the village of Milan and the city of West Frankfort from 23 to 35 years. The amendment also contained a change to the Illinois Municipal Code to allow the city of Alton to annex specific property. The legislation is currently pending on the House floor. If passed by the House the legislation would be sent to the Senate for their consideration.

- Also this week the Senate Rules Committee referred consideration to the Senate Executive Committee an amendment dealing with the efforts of the Indian Prairie school district (in DuPage County) to get immediate possession to land that is the subject of an eminent domain lawsuit. The court has already set a trial date of September 17, 2007 for the jury to determine the fair market value of this land. Senate Amendment #2 to House Bill 1400, sponsored by Senator Linda Holmes, redrafts the provisions of an earlier bill that had stalled in the Senate (HB 153). The IAR remains OPPOSED to this proposal that not only interferes with an on-going court action but sets the precedent of granting �quick-take� eminent domain powers to a school district. This latest version of the proposal is particularly troubling because it amends the School Code with language that is, in effect, quick-take powers. This is bad public policy and should be rejected!

- Both the House and Senate have scheduled session to reconvene at 9:00 a.m. on Saturday, August 4th and for Sunday, August 5th at 5:00 p.m. continuing in to next 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.

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.

Illinois Association of REALTORS
522 South Fifth Street
Springfield, IL 62701
PH 217/529-2600
FAX 217/529-3904
www.illinoisrealtor.org