Illinois Association of REALTORS
State Capitol Report
Friday November 21, 2008
“Anyone who says they are not interested in politics is like a drowning man who insists he is not interested in water.” ~Author Unknown
The House and Senate reconvened in Springfield on Wednesday and Thursday to wrap up the annual fall session.
- An amendment #7 to House Bill 2973 was adopted this week after being worked out among the mortgage lending lobby, the Illinois Department of Financial and Professional Regulation (IDFPR), the Attorney General’s office and other interested parties to address foreclosure actions. The bill adds a new section to the Code of Civil Procedure regarding procedures and forbearances for delinquent residential mortgages. The bill provides that if a mortgage secured by residential real estate becomes delinquent by more than 30 days the mortgagee must mail a notice advising the homeowner that he/she may wish to seek approved housing counseling (defined in the legislation as a counseling agency approved by HUD). No foreclosure action can begin before mailing this notice- which is spelled out in the legislation. If, within the 30-day period an approved counseling agency provides written notice to the mortgagee that the homeowner is seeking approved counseling services, then no legal action shall be instituted for 30 days after the date of that notice. During the 30-day period the homeowner or counselor or both may prepare and proffer to the mortgagee a proposed sustainable loan workout plan (defined in the legislation). The mortgagee determines whether to accept the proposed sustainable loan workout plan. If the parties agree to the plan no legal action shall be instituted for as long as the sustainable loan workout plan is complied with by the homeowner. If IDFPR determines that the demand for counseling services in an area exceeds the number of available approved counseling agencies, the Secretary can certify other persons or entities as approved counseling agencies. However, the legislation prohibits a for profit entity from being certified. The new provisions of this legislation do NOT apply to mortgages issued or originated on or after the effective date of this legislation and ONLY apply to a principal residence. These provisions will be repealed in two years. House Bill 2973, as amended was approved by the Senate on Thursday, November 20th and sent to the House for their consideration when the House returns in January. The bill is sponsored by Senator Jacqueline Collins and Representative Julie Hamos.
- As you may be aware, as part of the Housing and Economic Recovery Act of 2008, Congress included almost $4 billion in funding to HUD to provide for a Neighborhood Stabilization Program (NSP). The Program is intended to provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The NSP is designed to provide grants to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods. All activities carried out under the NSP must benefit households earning no more than 120% of the area median income (AMI), and at least 25% of the funds must benefit households earning no more than 50% AMI. The State of Illinois received a total allocation of approximately $172 million, with about $53 million going towards a state-run program, and the rest of the monies being distributed directly to local governments similar to CDBG monies. IAR provided comments on the proposed plan for the state’s allocation. Local association Government Affairs Directors (GADs) are also working with their local governments on their allocation of NSP. Further information on the program can be found here: www.dhs.state.il.us/page.aspx?item=40593
- The House took final action on legislation this week that had been stalled since the spring session. House Bill 5037, sponsored by Representative Marlow Colvin, deals with distressed condominium property. This legislation is an initiative of the city of Chicago and is intended to expedite receivership procedures for abandoned or dilapidated condominium property. The legislation would allow a court to appoint a receiver to manage the property with the ultimate goal of selling the property and allowing the reuse of the property. The legislation was amended to address concerns raised by the IAR and the banking lobby and the IAR is now NEUTRAL. The bill has been sent to the Senate which has two days in January to consider the legislation.
- Legislation was overwhelmingly approved this week that creates a criminal offense for retaliating against a judge by filing any false lien or encumbrance against the real or personal property of a Supreme, Appellate, Circuit or Associate Judge in Illinois. Senate Bill 2452, sponsored by Senator John Cullerton and Representative Bob Molaro, has been sent to the Governor for his consideration.
- Final action also was taken this week on House Bill 5730 which extends the life of the Tax Increment Financing (TIF) district in the Village of Hoffman Estates from 23 to 35 years. The bill has been sent to the Governor for his consideration.
- Generally, State law requires municipal officials or employees involved in the planning and preparation of a TIF plan or project owning an interest, direct or indirect, in property included in the redevelopment to disclose such interest and to refrain from official involvement or voting on matters related to the area. Further, no member or employee can acquire any property except for specific exceptions added if a single parcel of property is used exclusively as the member’s primary residence. Senate Bill 826, approved by the House this week provides a two-year period whereby a single property interest could be acquired by a member of the municipal corporate authority and NOT constitute an interest in any property provided 1) the property is used exclusively as the member’s primary residence; 2) the member discloses the acquisition to the municipal clerk; 3) the acquisition is for fair market value; 4) the member acquires the property as a result of the property being publicly advertised for sale; and 5) the member refrains from voting on, and communicating with other members concerning, any matter when the benefits to the area would be significantly greater than the benefits to the municipality as a whole. A similar exception was approved in the 2006 session for a one-year period effective in 2007. SB 826, sponsored by Representative Dan Burke and Senator Michael Noland, has been sent to the Senate for consideration in January.
- As we previously reported the current leaders of the Senate, Senate President Emil Jones and Republican Leader Frank Watson, will end their terms as leaders at the end of the 95th General Assembly. Senator Jones did not seek reelection and Senator Frank Watson did not seek reelection as the leader but will remain as the Senator from the 51st District. The Senate Majority and Minority caucuses met this week and selected their new leaders for the 96th General Assembly which begins with the inaugural on January 14, 2009. The new Senate President will be Senator John Cullerton, a Democrat from the 6th District in Chicago. The new Republican Leader will be Senator Christine Radogno, a Republican from the 41st District in LaGrange. The leaders in the House, Michael Madigan and Tom Cross, will remain the same.
- The General Assembly is scheduled to reconvene January 12-13, 2009 to conclude the business of the 95th General Assembly. The 96th General Assembly, as noted above, will be sworn in on January 14, 2009.
- Speaker Michael Madigan has released a calendar for the 2009 session which is available on the General Assembly’s website- www.ilga.gov.
Monday, November 24, 2008
Friday, November 7, 2008
Springfield Update
Illinois Association of REALTORS
State Capitol Report
Friday October 31, 2008
“Do you ever get the feeling that the only reason we have elections is to find out if the polls were right?” ~Robert Orben
- Our legislative newsletter has a new name! “Quorum Call-Week in Review” is now the “State Capitol Report”.
State Capitol Report 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.
- After months of campaigning, hard-hitting campaign ads and an incredible amount of work Election Day is a few days away. If you have not already voted through the State’s Early Voting Program or by absentee ballot PLEASE exercise your right and VOTE ON TUESDAY, NOVEMBER 4TH! RPAC was involved in several key races donating contributions and conducting Opportunity Races throughout the State. A summary of the election results will be provided in the next issue.
- The Illinois General Assembly is scheduled to conducts its annual fall veto session on November 12-14 and November 19-21. . While the primary purpose of the six-day fall session is the consideration of gubernatorial vetoes from the spring session, the General Assembly typically considers other initiatives. It should be noted that the House of Representatives cancelled its session days for the first week of the veto session indicating that they had already taken action on the Governor’s vetoes on previous session days this summer/fall. As of today, the Senate is still scheduled to return to Springfield on November 12th.
- Since the last issue of the newsletter final action occurred on a few issues of interest to REALTORS.
--On October 7, 2008 the Governor signed into law Senate Bill 790 (Public Act 95-1000) to authorize the sweep of over $221 million from dedicated funds, including $5 million from the Real Estate License Administration Fund and $250,000 from the Real Estate Recovery Fund. You will recall that this bill creates the Budget Relief Fund to hold authorized swept funds to shore up the State’s General Revenue Fund. While legislators understand all the arguments against the sweep of dedicated funds most will point to the fact that this has been a budget solution used by previous governors. The IAR may have an opportunity for a hearing on the legal merits of this issue in Sangamon County Circuit Court based on our 2006 lawsuit filed in Sangamon County, challenging the constitutionality of such a sweep of the Real Estate License Administration Fund (RELAF). The State of Illinois entered into a stipulation in that case that precludes the State from transferring any funds from the RELAF to be used for any purpose other than those specified in the Real Estate License Act without giving IAR 21 days notice.
--On October 6, 2008 the Governor signed into law Senate Bill 2287 (Public Act 95-999). This legislation, sponsored by Senator Kwame Raoul and Representative Pat Lindner, initially sought to expand the existing Safe Homes Act to allow tenants to recover a minimum of $2,000 plus attorney’s fees from a landlord if the landlord shares “any information provided by the tenant” in exercising his/her rights under the Act to a prospective landlord. The IAR had pointed to a number of concerns with the original legislation including the fact that a tenant would not have to actually incur any damages in order to recover the $2,000. Representative Pat Lindner, amended the bill to hold the landlord liable for actual damages up to $2,000 resulting from the disclosure- instead of liable for any damages resulting from the disclosure or $2,000, whichever is greater. This new language is now in effect-becoming law on the day it was signed by the Governor.
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.
State Capitol Report
Friday October 31, 2008
“Do you ever get the feeling that the only reason we have elections is to find out if the polls were right?” ~Robert Orben
- Our legislative newsletter has a new name! “Quorum Call-Week in Review” is now the “State Capitol Report”.
State Capitol Report 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.
- After months of campaigning, hard-hitting campaign ads and an incredible amount of work Election Day is a few days away. If you have not already voted through the State’s Early Voting Program or by absentee ballot PLEASE exercise your right and VOTE ON TUESDAY, NOVEMBER 4TH! RPAC was involved in several key races donating contributions and conducting Opportunity Races throughout the State. A summary of the election results will be provided in the next issue.
- The Illinois General Assembly is scheduled to conducts its annual fall veto session on November 12-14 and November 19-21. . While the primary purpose of the six-day fall session is the consideration of gubernatorial vetoes from the spring session, the General Assembly typically considers other initiatives. It should be noted that the House of Representatives cancelled its session days for the first week of the veto session indicating that they had already taken action on the Governor’s vetoes on previous session days this summer/fall. As of today, the Senate is still scheduled to return to Springfield on November 12th.
- Since the last issue of the newsletter final action occurred on a few issues of interest to REALTORS.
--On October 7, 2008 the Governor signed into law Senate Bill 790 (Public Act 95-1000) to authorize the sweep of over $221 million from dedicated funds, including $5 million from the Real Estate License Administration Fund and $250,000 from the Real Estate Recovery Fund. You will recall that this bill creates the Budget Relief Fund to hold authorized swept funds to shore up the State’s General Revenue Fund. While legislators understand all the arguments against the sweep of dedicated funds most will point to the fact that this has been a budget solution used by previous governors. The IAR may have an opportunity for a hearing on the legal merits of this issue in Sangamon County Circuit Court based on our 2006 lawsuit filed in Sangamon County, challenging the constitutionality of such a sweep of the Real Estate License Administration Fund (RELAF). The State of Illinois entered into a stipulation in that case that precludes the State from transferring any funds from the RELAF to be used for any purpose other than those specified in the Real Estate License Act without giving IAR 21 days notice.
--On October 6, 2008 the Governor signed into law Senate Bill 2287 (Public Act 95-999). This legislation, sponsored by Senator Kwame Raoul and Representative Pat Lindner, initially sought to expand the existing Safe Homes Act to allow tenants to recover a minimum of $2,000 plus attorney’s fees from a landlord if the landlord shares “any information provided by the tenant” in exercising his/her rights under the Act to a prospective landlord. The IAR had pointed to a number of concerns with the original legislation including the fact that a tenant would not have to actually incur any damages in order to recover the $2,000. Representative Pat Lindner, amended the bill to hold the landlord liable for actual damages up to $2,000 resulting from the disclosure- instead of liable for any damages resulting from the disclosure or $2,000, whichever is greater. This new language is now in effect-becoming law on the day it was signed by the Governor.
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.
Wednesday, July 30, 2008
President Signs Housing Bill
Bush signs housing bill to provide mortgage relief
By JENNIFER LOVEN, Associated Press Writer1 hour, 55 minutes ago
President Bush on Wednesday signed a massive housing bill intended to provide mortgage relief for 400,000 struggling homeowners and stabilize financial markets.
Bush signed the bill without any fanfare or signing ceremony, affixing his signature to the measure he once threatened to veto, in the Oval Office in the early morning hours. He was surrounded by top administration officials, including Treasury Secretary Henry Paulson and Housing Secretary Steve Preston.
"We look forward to put in place new authorities to improve confidence and stability in markets," White House spokesman Tony Fratto said. He said that the Federal Housing Administration would begin right away to implement new policies "intended to keep more deserving American families in their homes."
The measure, regarded as the most significant housing legislation in decades, lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes.
It offers a temporary financial lifeline to troubled mortgage companies Fannie Mae and Freddie Mac and tightens controls over the two government-sponsored businesses.
The House passed the bill a week ago; the Senate voted Saturday to send it to the president.
Bush didn't like the version emerging from Congress, and initially said he would veto it, particularly over a provision containing $3.9 billion in neighborhood grants. He contended the money would benefit lenders who helped cause the mortgage meltdown, encouraging them to foreclose rather than work with borrowers.
But he withdrew that threat early last week, saying hurting homeowners could not wait — and even blaming the Democratic Congress' delays in action for forcing an imperfect solution.
Meanwhile, many Republicans, particularly those from areas hit hardest by housing woes, were eager to get behind a housing rescue as they looked ahead to tough re-election contests. Paulson's request for the emergency power to rescue Fannie Mae and Freddie Mac helped push through the measure. So did the creation of a regulator with stronger reins on the government-sponsored companies, as Republicans long have sought.
Democrats won cherished priorities in the bargain: the aid for homeowners, a permanent affordable housing fund financed by Fannie Mae and Freddie Mac, and the neighborhood grants.
The bill takes several approaches to curing the ailing housing market.
It aims to spare an estimated 400,000 debt-strapped homeowners, many of whom owe more their houses are worth, from foreclosure by allowing them to get more affordable mortgages backed by the Federal Housing Administration.
The FHA could insure $300 billion in such mortgages, which would be available to homeowners who showed they could afford a new loan. Banks would first have to agree to take a large loss on the existing loans in exchange for avoiding an often-costly foreclosure.
The plan also is designed to relieve a broader credit crunch that has taken hold because of rising defaults and falling home values. To free up safer and more affordable mortgage credit, the bill permanently would increase to $625,000 the size of home loans that Fannie Mae and Freddie Mac can buy and the FHA can insure. They also could buy and back mortgages 15 percent higher than the median home price in certain areas.
It goes far beyond addressing the current crisis, however.
The legislation overhauls the Depression-era FHA. It requires lenders to show how high a borrower's payment could get under the terms of his mortgage. It provides $180 million in pre-foreclosure counseling for struggling homeowners.
The Treasury Department gains unlimited power, until the end of 2009, to lend money to Fannie Mae and Freddie Mac or buy their stock should they need it. The Federal Reserve takes on a new "consultative" role overseeing the companies.
The measure includes $15 billion in tax cuts, including a significant expansion of the low-income housing tax credit and a credit of up to $7,500 for first-time home buyers for houses purchased between April 9, 2008, and July 1, 2009.
Democratic leaders, recognizing that the measure could be one of the last items to become law during what's left of their abbreviated election-year schedule, tacked on an $800 billion increase, to $10.6 trillion, in the statutory limit on the national debt.
Conservative Republicans were vehemently opposed to the bill, particularly the help for Fannie Mae and Freddie Mac. Critics charge the companies enjoy lavish profits in good times and wield their outsized political clout to resist regulation while depending on the government to bail them out should they falter.
By JENNIFER LOVEN, Associated Press Writer1 hour, 55 minutes ago
President Bush on Wednesday signed a massive housing bill intended to provide mortgage relief for 400,000 struggling homeowners and stabilize financial markets.
Bush signed the bill without any fanfare or signing ceremony, affixing his signature to the measure he once threatened to veto, in the Oval Office in the early morning hours. He was surrounded by top administration officials, including Treasury Secretary Henry Paulson and Housing Secretary Steve Preston.
"We look forward to put in place new authorities to improve confidence and stability in markets," White House spokesman Tony Fratto said. He said that the Federal Housing Administration would begin right away to implement new policies "intended to keep more deserving American families in their homes."
The measure, regarded as the most significant housing legislation in decades, lets homeowners who cannot afford their payments refinance into more affordable government-backed loans rather than losing their homes.
It offers a temporary financial lifeline to troubled mortgage companies Fannie Mae and Freddie Mac and tightens controls over the two government-sponsored businesses.
The House passed the bill a week ago; the Senate voted Saturday to send it to the president.
Bush didn't like the version emerging from Congress, and initially said he would veto it, particularly over a provision containing $3.9 billion in neighborhood grants. He contended the money would benefit lenders who helped cause the mortgage meltdown, encouraging them to foreclose rather than work with borrowers.
But he withdrew that threat early last week, saying hurting homeowners could not wait — and even blaming the Democratic Congress' delays in action for forcing an imperfect solution.
Meanwhile, many Republicans, particularly those from areas hit hardest by housing woes, were eager to get behind a housing rescue as they looked ahead to tough re-election contests. Paulson's request for the emergency power to rescue Fannie Mae and Freddie Mac helped push through the measure. So did the creation of a regulator with stronger reins on the government-sponsored companies, as Republicans long have sought.
Democrats won cherished priorities in the bargain: the aid for homeowners, a permanent affordable housing fund financed by Fannie Mae and Freddie Mac, and the neighborhood grants.
The bill takes several approaches to curing the ailing housing market.
It aims to spare an estimated 400,000 debt-strapped homeowners, many of whom owe more their houses are worth, from foreclosure by allowing them to get more affordable mortgages backed by the Federal Housing Administration.
The FHA could insure $300 billion in such mortgages, which would be available to homeowners who showed they could afford a new loan. Banks would first have to agree to take a large loss on the existing loans in exchange for avoiding an often-costly foreclosure.
The plan also is designed to relieve a broader credit crunch that has taken hold because of rising defaults and falling home values. To free up safer and more affordable mortgage credit, the bill permanently would increase to $625,000 the size of home loans that Fannie Mae and Freddie Mac can buy and the FHA can insure. They also could buy and back mortgages 15 percent higher than the median home price in certain areas.
It goes far beyond addressing the current crisis, however.
The legislation overhauls the Depression-era FHA. It requires lenders to show how high a borrower's payment could get under the terms of his mortgage. It provides $180 million in pre-foreclosure counseling for struggling homeowners.
The Treasury Department gains unlimited power, until the end of 2009, to lend money to Fannie Mae and Freddie Mac or buy their stock should they need it. The Federal Reserve takes on a new "consultative" role overseeing the companies.
The measure includes $15 billion in tax cuts, including a significant expansion of the low-income housing tax credit and a credit of up to $7,500 for first-time home buyers for houses purchased between April 9, 2008, and July 1, 2009.
Democratic leaders, recognizing that the measure could be one of the last items to become law during what's left of their abbreviated election-year schedule, tacked on an $800 billion increase, to $10.6 trillion, in the statutory limit on the national debt.
Conservative Republicans were vehemently opposed to the bill, particularly the help for Fannie Mae and Freddie Mac. Critics charge the companies enjoy lavish profits in good times and wield their outsized political clout to resist regulation while depending on the government to bail them out should they falter.
Monday, July 28, 2008
HR 3221
HR 3221, the Housing and Economic Recovery Act of 2008 National Association of REALTORS® Summary (as of 7/24/08)
H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23rd by a vote of 272-152. The Senate must now approve the language adopted by the House. The Senate is expected to approve the bill on Friday, July 25th or Saturday, July 26th. The President has said he will sign the bill. It includes: GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision does will be effective from October 1, 2008 through September 30, 2009.GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.For more information, visit www.realtor.org/governmentaffairs
H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23rd by a vote of 272-152. The Senate must now approve the language adopted by the House. The Senate is expected to approve the bill on Friday, July 25th or Saturday, July 26th. The President has said he will sign the bill. It includes: GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision does will be effective from October 1, 2008 through September 30, 2009.GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.For more information, visit www.realtor.org/governmentaffairs
Friday, July 18, 2008
Springfield Update
Illinois Association of REALTORS
Quorum Call Week in Review
Friday, July 18, 2008
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. “Baseball is almost the only orderly thing in a very unorderly world. If you get three strikes, even the best lawyer in the world can’t get you off.”~Bill Veeck- The Illinois House of Representatives convened this week in a shortened schedule for consideration of overrides of item and reduction vetoes made by the Governor to the Fiscal Year 2009 State budget (HB 5701). There were 33 separate motions filed by members of the House on the $1.4 billion in cuts made by the Governor. Ultimately only 6 motions were approved which restored $480 million in cuts. However, the Senate must also take action on these six motions in order for these funds to be restored. Senate President Emil Jones has previously indicated that he did not intend to call the Senate back until the regularly scheduled fall session in November. - No action occurred on the issue of fund sweeps from State dedicated funds. You may recall that the Senate approved legislation in the spring (SB 790) that authorized the Governor to make sweeps from these funds but did NOT specify what funds or amounts but it was reported that the amount would total $530 million. SB 790 did list 29 funds that were exempt from the sweep. The House removed all substantive provisions from SB 790 last week with the intention of amending the bill to authorize specified funds and amounts totaling about $300 million. However, the House adjourned on Wednesday afternoon without any legislative activity on the issue. The General Assembly is currently not scheduled to be back in session until November 12, 2008. 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.
Quorum Call Week in Review
Friday, July 18, 2008
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. “Baseball is almost the only orderly thing in a very unorderly world. If you get three strikes, even the best lawyer in the world can’t get you off.”~Bill Veeck- The Illinois House of Representatives convened this week in a shortened schedule for consideration of overrides of item and reduction vetoes made by the Governor to the Fiscal Year 2009 State budget (HB 5701). There were 33 separate motions filed by members of the House on the $1.4 billion in cuts made by the Governor. Ultimately only 6 motions were approved which restored $480 million in cuts. However, the Senate must also take action on these six motions in order for these funds to be restored. Senate President Emil Jones has previously indicated that he did not intend to call the Senate back until the regularly scheduled fall session in November. - No action occurred on the issue of fund sweeps from State dedicated funds. You may recall that the Senate approved legislation in the spring (SB 790) that authorized the Governor to make sweeps from these funds but did NOT specify what funds or amounts but it was reported that the amount would total $530 million. SB 790 did list 29 funds that were exempt from the sweep. The House removed all substantive provisions from SB 790 last week with the intention of amending the bill to authorize specified funds and amounts totaling about $300 million. However, the House adjourned on Wednesday afternoon without any legislative activity on the issue. The General Assembly is currently not scheduled to be back in session until November 12, 2008. 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.
Monday, July 14, 2008
Springfield Update
Illinois Association of REALTORS
Quorum Call Week in Review
Thursday, July 10, 2008
“Our political institutions work remarkably well. They are designed to clang against each other. The noise is democracy at work.”
~Michael Novak
- The General Assembly was called back into session this week by the Governor “to fix the shortfall in the Fiscal Year 2009 budget passed by the General Assembly in May” with the hope that the House would enact revenue enhancements previously approved by the Senate in May. On Wednesday, the Governor ratcheted up pressure on the House by issuing reduction and item vetoes in the budget totaling $1.4 billion.
- The House had a lengthy “Committee of the Whole” hearing on Wednesday afternoon on the capital bill, the gaming expansion bill, the sweeps authorization bill, the lottery lease bill and bonding bills. On Thursday, the House had an extensive debate on the gaming expansion bill – HB 2651 – which was the funding source for the $34 billion capital projects proposal. HB 2651 was voted down on a roll call vote of 47-55-3. However, the House of Representatives did approve amendments to SB 1130 to authorize work to be restarted on construction projects throughout the State that had been halted by the Capital Development Board (CDB). The Senate concurred with this action later in the day on a roll call vote of 42-0-0.
- On Wednesday evening the House Executive Committee amended the fund sweeps authorization legislation (SB 790) to remove all substantive provisions. The bill was sent to the full House where it was held with further action likely next week.
- This week the Senate took action on other measures besides budget bills including final legislative action on Senate Bill 2287. On Thursday, the Senate Judiciary–Criminal Law Committee unanimously concurred with the House Amendment added to Senate Bill 2287. The full Senate approved the concurrence motion on a roll call vote of 41-0-0. As you recall, this legislation sponsored by Senator Kwame Raoul and Representative Pat Lindner, seeks to expand the Safe Homes Act to allow tenants to recover a minimum of $2,000 plus attorney’s fees from a landlord if the landlord shares “any information provided by the tenant” in exercising his/her rights under the Act to a prospective landlord. The IAR had pointed to a number of concerns with the original legislation including the fact that a tenant would not have to actually incur any damages in order to recover the $2,000. Representative Pat Lindner, amended the bill to hold the landlord liable for actual damages up to $2,000 resulting from the disclosure- instead of liable for any damages resulting from the disclosure or $2,000, whichever is greater.
- The Illinois House of Representatives will return to Springfield next week for three days to consider the item and reduction vetoes issued by the Governor. The Senate President indicated that it was not his intention to call the Senate into 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.
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.
Quorum Call Week in Review
Thursday, July 10, 2008
“Our political institutions work remarkably well. They are designed to clang against each other. The noise is democracy at work.”
~Michael Novak
- The General Assembly was called back into session this week by the Governor “to fix the shortfall in the Fiscal Year 2009 budget passed by the General Assembly in May” with the hope that the House would enact revenue enhancements previously approved by the Senate in May. On Wednesday, the Governor ratcheted up pressure on the House by issuing reduction and item vetoes in the budget totaling $1.4 billion.
- The House had a lengthy “Committee of the Whole” hearing on Wednesday afternoon on the capital bill, the gaming expansion bill, the sweeps authorization bill, the lottery lease bill and bonding bills. On Thursday, the House had an extensive debate on the gaming expansion bill – HB 2651 – which was the funding source for the $34 billion capital projects proposal. HB 2651 was voted down on a roll call vote of 47-55-3. However, the House of Representatives did approve amendments to SB 1130 to authorize work to be restarted on construction projects throughout the State that had been halted by the Capital Development Board (CDB). The Senate concurred with this action later in the day on a roll call vote of 42-0-0.
- On Wednesday evening the House Executive Committee amended the fund sweeps authorization legislation (SB 790) to remove all substantive provisions. The bill was sent to the full House where it was held with further action likely next week.
- This week the Senate took action on other measures besides budget bills including final legislative action on Senate Bill 2287. On Thursday, the Senate Judiciary–Criminal Law Committee unanimously concurred with the House Amendment added to Senate Bill 2287. The full Senate approved the concurrence motion on a roll call vote of 41-0-0. As you recall, this legislation sponsored by Senator Kwame Raoul and Representative Pat Lindner, seeks to expand the Safe Homes Act to allow tenants to recover a minimum of $2,000 plus attorney’s fees from a landlord if the landlord shares “any information provided by the tenant” in exercising his/her rights under the Act to a prospective landlord. The IAR had pointed to a number of concerns with the original legislation including the fact that a tenant would not have to actually incur any damages in order to recover the $2,000. Representative Pat Lindner, amended the bill to hold the landlord liable for actual damages up to $2,000 resulting from the disclosure- instead of liable for any damages resulting from the disclosure or $2,000, whichever is greater.
- The Illinois House of Representatives will return to Springfield next week for three days to consider the item and reduction vetoes issued by the Governor. The Senate President indicated that it was not his intention to call the Senate into 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.
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.
Thursday, June 5, 2008
Springfield Update
Illinois Association of REALTORSQuorum Call Week in ReviewJune 5, 2008 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 of IAR Governmental 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 JeffersonThe General Assembly took final action on a number of bills of interest May 27-31, 2008- the final week of the spring session. This issue of Quorum Call summarizes those bills acted upon last week. A report on the status of ALL bills of interest from the spring session “State Issues: Status Report” (Word doc) can be viewed at www.IARActionCenter.org. - The General Assembly adjourned the 2008 spring session on Saturday evening, May 31. The Senate adjourned at 7:30 p.m. and the House at 11:00 p.m. after rejecting the leasing of the lottery and the gaming expansion plan as the funding mechanisms for a massive capital spending plan. The Senate and the House did approve a budget for the new year, but at a press conference on Monday, the Governor deemed it unbalanced and thus, unconstitutional. The Governor pledged to meet with budget leaders in the Senate and the House in an effort to reach an agreement prior to the start of the new fiscal year on July 1. The approved budget did not include two revenue sources that had been earlier proposed by the Senate. These included a $530 million sweep of dedicated funds and $400 million from a refinancing of the state’s pension debt. New revenue sources OR significant cuts will have to be done to resolve the budget impasse. It is speculated that a special session will be called to act on the budget revisions. The IAR will keep you apprised of future session dates.
- NO ACTION occurred this spring session on either Senate Bill 571 or House Bill 5358 which were initiatives of the IAR to amend the Real Estate License Act. These changes sought to update the License Law to include a variety of definitional changes, educational changes and technical changes. - The Senate did NOT take action this week on a measure to clarify the Illinois Radon Awareness Act that had earlier been approved by the Illinois House of Representatives. House Bill 4789, sponsored by Representative Dan Reitz and Senator Bill Haine, added to the Act to clearly exempt transfers involving a dwelling unit located on the third story or higher above ground level, including dwelling units in condominiums and cooperatives. This legislation may have been caught up in the battle over rule-making authority between the Speaker and the Governor. The Senate did not act on a number of bills this spring that included the House language that restricted this power that began when the Governor developed regulations to enact an expansion of health care by-passing the legislative process. Thanks to those who took the time last week to contact your legislator about our opposition to Senate Bill 2287 in response to our Call to Action. As you recall, this legislation sponsored by Senator Kwame Raoul and Representative Pat Lindner, seeks to expand the Safe Homes Act to allow tenants to recover a minimum of $2,000 plus attorney’s fees from a landlord if the landlord shares “any information provided by the tenant” in exercising his/her rights under the Act to a prospective landlord. The IAR pointed to a number of concerns with the legislation including the fact that a tenant would not have to actually incur any damages in order to recover the $2,000. Representative Pat Lindner, the House sponsor was questioned about this provision in the House committee debate and she ultimately amended the bill to hold the landlord liable for actual damages up to $2,000 resulting from the disclosure- instead of liable for any damages resulting from the disclosure or $2,000, whichever is greater. Representative Lindner acknowledged that while the amendment addressed a concern raised by the IAR it did NOT remove our opposition to the bill. Representative Roger Eddy clearly articulated our concerns in floor debate. The bill was approved on a roll call vote of 84-25-5 and sent back to the Senate. The IAR appreciates those members who voted NO or PRESENT. See how your Representative voted (pdf). The Senate did NOT act upon the bill prior to the adjournment of the spring session but that could occur in the fall session that will begin in November. - NO ACTION occurred last week on another bill that was the subject of a Call to Action to OPPOSE. House Bill 2916, introduced by Representative Dennis Reboletti, sought to grant all municipalities and counties the authority to regulate and license landlords. This grants the thousands of non-home rule units unlimited regulatory powers. Despite pressure from a local community to run the bill this spring Representative Reboletti agreed to hold the bill so that further discussions could take place with the IAR and other interested parties. - Negotiations continue on Senate Bill 2128, legislation to provide for the licensure of community association mangers, though no formal action was taken on the bill last week. The IAR has some concerns with SB 2128 as currently drafted, but was supportive of the bill advancing out of the Senate and out of House committee as negotiations continued to be fruitful in crafting a compromise bill. We will keep you apprised of further developments on this legislation as they occur. SB 2128 is sponsored by Senator John Cullerton and Representative Elaine Nekritz. - The House approved Senate Bill 886 marking final action on changes to the Elevator Safety and Regulation Act. This action was taken after a lengthy debate focused on the Act itself as well as an indication from legislators that they had received a number of complaints from condominium owners and associations regarding the financial impact of the safety upgrades required by the rules and regulations adopted by the Office of the State Fire Marshal. SB 886 specifies that rules adopted under the Act requiring safety code upgrade compliance beginning in 2009 or 2011 is extended to 2013. The House sponsor, Representative Skip Saviano, indicated that he and Senators Harmon and Sullivan would continue to review the Act and that further legislative action may be considered in the future. - While both the Senate and the House passed legislation expanding the Energy Efficient Commercial Building Act to include construction of residential buildings, they did NOT approve the same bill in both chambers so the issue remains on the table for the fall session. You will recall from the May 23 issue that the Senate approved House Bill 1842 and sent the bill back to the House for concurrence on the negotiated amendment (supported by the IAR). While the House sponsor concurred with these changes, there was interest in also including language regarding rule-making powers. The House attached similar language to most bills this spring in a continuation of a battle with the Governor over the rule-making process by State agencies and his office. In order to do that, the House revived Senate Bill 526 (an environment bill from the 2007 session) and attached the agreed language from HB 1842 along with the rule-making language. SB 526 was approved by the House on a roll call vote of 109-5-0 and the bill was sent back to the Senate for their concurrence of this amendment. Neither chamber acted upon the concurrence motions prior to the end of the spring session. Both bills were sponsored by Representative Julie Hamos and Senator John Cullerton. - Legislation amending the Illinois Municipal Code in three distinct sections was overwhelmingly approved by both chambers the last week of session. You may recall that the Senate had approved Senate Bill 2677 in April to require a municipality to provide written notification of a planned annexation to the taxpayers within the territory proposed to be annexed. The House amended the bill to add two more provisions; one related to required examinations for certain candidates to become police officers and the second to make changes to the Municipal Code related to expedited procedures for the demolition, repair and/or enclosure of dangerous, unsafe or abandoned buildings. This latter provision, initiated by the city of Chicago, had originally been drafted in a much broader fashion in House Bill 4385. The IAR had expressed concern with that bill, in particular with the provision that allowed a city to declare a property abandoned if there has been no active water service to the property for 2 or more years. The modified provisions added to SB 2677 did NOT include the objectionable language. The bill, sponsored by Senator Maggie Crotty and Representative Al Riley, has been sent to the Governor for his consideration. - The House took quick action to approve Senate Bill 836, the “trailer bill” to the Flood Prevention District Act which was enacted into law in May for the counties of Monroe, Madison and St. Clair for levee repairs and flood prevention. The additions in SB 836 were necessary for the administration of the district, including the authority to use excess funds accumulated prior to January 1, 2008 by the Metro-East Sanitary District in their tort liability fund. The bill, sponsored by Senator Bill Haine and Representative Dan Beiser, has been sent to the Governor for his consideration. The IAR SUPPORTS this legislation. - House Bill 4683, which creates the Fire and Life Safety Device Act to establish penalties for the manufacture, installation or sale of any fake smoke detector, sprinkler head, carbon monoxide alarm, or heat detector used for life safety or fire protection, had final action in the General Assembly. The measure permits inspection of the devices to ensure compliance with the Act by municipalities, fire protection districts, counties, licensed fire sprinkler contractors and licensed engineers BUT no such inspection can be conducted in any room or suite of rooms used for human habitation, including any single family residence, living unit of a multi-family residence or living unit in a mixed use building. The Senate had amended the bill to exempt sworn law enforcement officers utilizing a facsimile smoke detector, sprinkler head, carbon monoxide alarm, heat detector, or any other similar device in furtherance of a criminal investigation. The House concurred with the Senate amendment and the bill has been sent to the Governor. The bill is sponsored Representative Elaine Nekritz and Senator Michael Noland. - While the House took final action on Senate Bill 2033, sponsored by Senator David Koehler and Representative David Leitch, the Senate did not concur with the House amendments prior to the adjournment of the spring session. This action could occur in the fall session. This measure contains two provisions for Peoria County. It authorizes the Peoria County Board to establish a stormwater management planning committee and to prescribe rules and regulations for stormwater management and stormwater runoff. Fees are authorized as well as a property tax OR sales tax for the administration of the program. The property tax/sales tax component requires the approval of the voters. It should be noted that this bill, in this final form, includes language requested by the city of Peoria to allow them to opt out by a majority vote of the city council. Secondly, the bill authorizes the Peoria County Board to propose the establishment of an economic development project (a county TIF). The county board ordinance must include findings that the project is reasonably expected to create or retain not less than 250 full-time jobs; that $15 million in private investment is reasonably expected to occur, that the project will encourage the increase of commerce and industry within the State and that the project will increase or maintain the property, sales and income tax bases of the county and the State. This bill also includes the House rule-making limitation on the Governor and the State agencies. - A similar measure to SB 2033 was House Bill 4545, sponsored by Senator David Koehler and Representative Aaron Schock. This bill was approved by the Senate the last week of session but was held on the House calendar on the order of concurrence. This action could occur in the House in the fall session. This bill included the authorization for the Peoria County stormwater committee-including the opt-out provision for the city of Peoria- and for the county TIF for the economic development project. HB 4545 also included another economic development related provision. A new Act known as the Illinois Rural Economic Development and Tourism Stimulus Act, initiated by Senator Dave Luechetefeld, which will authorize a county to create a special taxing district for economic development incentives. A final provision in this bill was the expansion of the purposes that a county can use its proceeds from a special countywide sales tax. Currently, a county may impose a county sales tax for public safety or transportation purposes, IF APPROVED by the voters. This legislation adds public facilities purposes defined as the acquisition, development, construction, reconstruction, rehabilitation, improvement, financing, architectural planning and installation of capital facilities (including buildings, structures, durable equipment and real property) for use by the county for furnishing governmental services, including museums and nursing homes. - Senate Bill 2733, sponsored by Senator Dan Cronin and Representative Bob Pritchard, to restrict the use of TIF funds to demolish, remove, or substantially modify a historic resource (defined in the bill) unless no prudent and feasible alternative exists was also passed last week. The bill does contain language that would exempt certain places or structures. This bill has been sent to the Governor for his consideration. - Legislation was also approved last week to extend the life of the TIF in the city of Aurora. Senate Bill 2678, sponsored by Senator Linda Holmes and Representative Linda Chapa LaVia, has been sent to the Governor for his consideration. - Senate Bill 546, the subject of negotiations for the past two years among various interested parties including the IAR, was overwhelmingly approved by the Senate and House and sent to the Governor for his consideration. This measure, sponsored by Senator John Cullerton and Representative Jim Brosnahan, adds language to the Illinois Notary Public Act dealing with a pilot program for notarial acts involving documents that transfer title to Cook County residential properties. For the period from July 1, 2008 until July 1, 2011 notaries will be required to create a notarial record (to be kept for 7 years) of each act performed in connection with a document of conveyance. Notaries are authorized to charge up to $25 for notarial records required under this legislation. These records are not subject to inspection or copying under the Freedom of Information Act. SB 546 requires the notarial record to contain:1) the date of the notarial act;2) the type, title or description of the document of conveyance being notarized and the PIN used to identify the residential real property for assessment or taxation purposes and the common street address for the property;3) the signature, printed name and residence street address of each person whose signature is the subject of the notarial act and a certification by the person that the property is residential real property;4) a description of the satisfactory evidence reviewed by the notary to determine the identity of the person whose signature is the subject of the notarial act;5) the date of the notarization, the fee charged for the notarial act, the notary’s home or business phone number, the notary’s residence street address, the notary’s commission expiration date, the correct legal name of the notary’s employer or principal and the business street address of the employer or principal;6) the notary public shall require the person signing the document of conveyance, including an agent acting on behalf of a principal under a duly executed power of attorney, to place his/her thumbprint on the notarial record. - Senate Bill 2034, sponsored by Senator David Koehler and Representative David Leitch, was approved by both the Senate and the House and sent to the Governor for his consideration. The legislation would allow a unit of local government to require homeowners who maintain a private sewage disposal system within the unit of local government to provide verification of a valid contract with a licensed private sewage disposal system installer, no more frequently than once every 3 years, to the unit of local government. The legislation specifies that no additional fee may be charged for such verification. The IAR is NEUTRAL on this legislation. - Both the House and Senate passed legislation this spring session to enact important reforms to the downstate and suburban police and firefighter pension systems. However, the same bill was NOT approved in both chambers so the issue remains on the table for the fall session. House Bill 4905, sponsored by Representative Mark Beaubien and Senator Jeff Schoenberg and Senate Bill 2090, sponsored by Senator Susan Garrett and Representative Mark Beaubien are SUPPORTED by the IAR. - Two measures were approved last week to grant the requisite State authority to two units of local government to exercise quick-take eminent domain powers. Senate Bill 2501, sponsored by Senator Pam Althoff and Representative Mike Tryon, grants quick-take eminent domain powers for a period of one year to the Village of Lake in the Hills for the Lake in the Hills Airport runway. House Bill 3106, sponsored by Representative Naomi Jakobsson and Senator Michael Frerichs, grants quick-take eminent domain powers for a period of one year to the City of Champaign for drainage and improvements related to the Boneyard Creek Project. Both measures have been sent to the Governor. The IAR is NEUTRAL on these bills which are limited in time and specific in purpose. - House Bill 5238, sponsored by Representative Karen Yarbrough and Senator Iris Martinez, was approved by both chambers and sent to the Governor. This bill authorizes the Chicago Housing Authority (CHA) to participate as a partner or member of a partnership, limited liability company, joint venture, or other form of a business arrangement with a for-profit or non-profit developer for the rehabilitation and development or ownership, or both development and ownership, of low-income and mixed-income rental and for-sale housing. - Unless called back into special session to deal with the budget or other significant issues the General Assembly is not scheduled to be back until after the November election. 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
- NO ACTION occurred this spring session on either Senate Bill 571 or House Bill 5358 which were initiatives of the IAR to amend the Real Estate License Act. These changes sought to update the License Law to include a variety of definitional changes, educational changes and technical changes. - The Senate did NOT take action this week on a measure to clarify the Illinois Radon Awareness Act that had earlier been approved by the Illinois House of Representatives. House Bill 4789, sponsored by Representative Dan Reitz and Senator Bill Haine, added to the Act to clearly exempt transfers involving a dwelling unit located on the third story or higher above ground level, including dwelling units in condominiums and cooperatives. This legislation may have been caught up in the battle over rule-making authority between the Speaker and the Governor. The Senate did not act on a number of bills this spring that included the House language that restricted this power that began when the Governor developed regulations to enact an expansion of health care by-passing the legislative process. Thanks to those who took the time last week to contact your legislator about our opposition to Senate Bill 2287 in response to our Call to Action. As you recall, this legislation sponsored by Senator Kwame Raoul and Representative Pat Lindner, seeks to expand the Safe Homes Act to allow tenants to recover a minimum of $2,000 plus attorney’s fees from a landlord if the landlord shares “any information provided by the tenant” in exercising his/her rights under the Act to a prospective landlord. The IAR pointed to a number of concerns with the legislation including the fact that a tenant would not have to actually incur any damages in order to recover the $2,000. Representative Pat Lindner, the House sponsor was questioned about this provision in the House committee debate and she ultimately amended the bill to hold the landlord liable for actual damages up to $2,000 resulting from the disclosure- instead of liable for any damages resulting from the disclosure or $2,000, whichever is greater. Representative Lindner acknowledged that while the amendment addressed a concern raised by the IAR it did NOT remove our opposition to the bill. Representative Roger Eddy clearly articulated our concerns in floor debate. The bill was approved on a roll call vote of 84-25-5 and sent back to the Senate. The IAR appreciates those members who voted NO or PRESENT. See how your Representative voted (pdf). The Senate did NOT act upon the bill prior to the adjournment of the spring session but that could occur in the fall session that will begin in November. - NO ACTION occurred last week on another bill that was the subject of a Call to Action to OPPOSE. House Bill 2916, introduced by Representative Dennis Reboletti, sought to grant all municipalities and counties the authority to regulate and license landlords. This grants the thousands of non-home rule units unlimited regulatory powers. Despite pressure from a local community to run the bill this spring Representative Reboletti agreed to hold the bill so that further discussions could take place with the IAR and other interested parties. - Negotiations continue on Senate Bill 2128, legislation to provide for the licensure of community association mangers, though no formal action was taken on the bill last week. The IAR has some concerns with SB 2128 as currently drafted, but was supportive of the bill advancing out of the Senate and out of House committee as negotiations continued to be fruitful in crafting a compromise bill. We will keep you apprised of further developments on this legislation as they occur. SB 2128 is sponsored by Senator John Cullerton and Representative Elaine Nekritz. - The House approved Senate Bill 886 marking final action on changes to the Elevator Safety and Regulation Act. This action was taken after a lengthy debate focused on the Act itself as well as an indication from legislators that they had received a number of complaints from condominium owners and associations regarding the financial impact of the safety upgrades required by the rules and regulations adopted by the Office of the State Fire Marshal. SB 886 specifies that rules adopted under the Act requiring safety code upgrade compliance beginning in 2009 or 2011 is extended to 2013. The House sponsor, Representative Skip Saviano, indicated that he and Senators Harmon and Sullivan would continue to review the Act and that further legislative action may be considered in the future. - While both the Senate and the House passed legislation expanding the Energy Efficient Commercial Building Act to include construction of residential buildings, they did NOT approve the same bill in both chambers so the issue remains on the table for the fall session. You will recall from the May 23 issue that the Senate approved House Bill 1842 and sent the bill back to the House for concurrence on the negotiated amendment (supported by the IAR). While the House sponsor concurred with these changes, there was interest in also including language regarding rule-making powers. The House attached similar language to most bills this spring in a continuation of a battle with the Governor over the rule-making process by State agencies and his office. In order to do that, the House revived Senate Bill 526 (an environment bill from the 2007 session) and attached the agreed language from HB 1842 along with the rule-making language. SB 526 was approved by the House on a roll call vote of 109-5-0 and the bill was sent back to the Senate for their concurrence of this amendment. Neither chamber acted upon the concurrence motions prior to the end of the spring session. Both bills were sponsored by Representative Julie Hamos and Senator John Cullerton. - Legislation amending the Illinois Municipal Code in three distinct sections was overwhelmingly approved by both chambers the last week of session. You may recall that the Senate had approved Senate Bill 2677 in April to require a municipality to provide written notification of a planned annexation to the taxpayers within the territory proposed to be annexed. The House amended the bill to add two more provisions; one related to required examinations for certain candidates to become police officers and the second to make changes to the Municipal Code related to expedited procedures for the demolition, repair and/or enclosure of dangerous, unsafe or abandoned buildings. This latter provision, initiated by the city of Chicago, had originally been drafted in a much broader fashion in House Bill 4385. The IAR had expressed concern with that bill, in particular with the provision that allowed a city to declare a property abandoned if there has been no active water service to the property for 2 or more years. The modified provisions added to SB 2677 did NOT include the objectionable language. The bill, sponsored by Senator Maggie Crotty and Representative Al Riley, has been sent to the Governor for his consideration. - The House took quick action to approve Senate Bill 836, the “trailer bill” to the Flood Prevention District Act which was enacted into law in May for the counties of Monroe, Madison and St. Clair for levee repairs and flood prevention. The additions in SB 836 were necessary for the administration of the district, including the authority to use excess funds accumulated prior to January 1, 2008 by the Metro-East Sanitary District in their tort liability fund. The bill, sponsored by Senator Bill Haine and Representative Dan Beiser, has been sent to the Governor for his consideration. The IAR SUPPORTS this legislation. - House Bill 4683, which creates the Fire and Life Safety Device Act to establish penalties for the manufacture, installation or sale of any fake smoke detector, sprinkler head, carbon monoxide alarm, or heat detector used for life safety or fire protection, had final action in the General Assembly. The measure permits inspection of the devices to ensure compliance with the Act by municipalities, fire protection districts, counties, licensed fire sprinkler contractors and licensed engineers BUT no such inspection can be conducted in any room or suite of rooms used for human habitation, including any single family residence, living unit of a multi-family residence or living unit in a mixed use building. The Senate had amended the bill to exempt sworn law enforcement officers utilizing a facsimile smoke detector, sprinkler head, carbon monoxide alarm, heat detector, or any other similar device in furtherance of a criminal investigation. The House concurred with the Senate amendment and the bill has been sent to the Governor. The bill is sponsored Representative Elaine Nekritz and Senator Michael Noland. - While the House took final action on Senate Bill 2033, sponsored by Senator David Koehler and Representative David Leitch, the Senate did not concur with the House amendments prior to the adjournment of the spring session. This action could occur in the fall session. This measure contains two provisions for Peoria County. It authorizes the Peoria County Board to establish a stormwater management planning committee and to prescribe rules and regulations for stormwater management and stormwater runoff. Fees are authorized as well as a property tax OR sales tax for the administration of the program. The property tax/sales tax component requires the approval of the voters. It should be noted that this bill, in this final form, includes language requested by the city of Peoria to allow them to opt out by a majority vote of the city council. Secondly, the bill authorizes the Peoria County Board to propose the establishment of an economic development project (a county TIF). The county board ordinance must include findings that the project is reasonably expected to create or retain not less than 250 full-time jobs; that $15 million in private investment is reasonably expected to occur, that the project will encourage the increase of commerce and industry within the State and that the project will increase or maintain the property, sales and income tax bases of the county and the State. This bill also includes the House rule-making limitation on the Governor and the State agencies. - A similar measure to SB 2033 was House Bill 4545, sponsored by Senator David Koehler and Representative Aaron Schock. This bill was approved by the Senate the last week of session but was held on the House calendar on the order of concurrence. This action could occur in the House in the fall session. This bill included the authorization for the Peoria County stormwater committee-including the opt-out provision for the city of Peoria- and for the county TIF for the economic development project. HB 4545 also included another economic development related provision. A new Act known as the Illinois Rural Economic Development and Tourism Stimulus Act, initiated by Senator Dave Luechetefeld, which will authorize a county to create a special taxing district for economic development incentives. A final provision in this bill was the expansion of the purposes that a county can use its proceeds from a special countywide sales tax. Currently, a county may impose a county sales tax for public safety or transportation purposes, IF APPROVED by the voters. This legislation adds public facilities purposes defined as the acquisition, development, construction, reconstruction, rehabilitation, improvement, financing, architectural planning and installation of capital facilities (including buildings, structures, durable equipment and real property) for use by the county for furnishing governmental services, including museums and nursing homes. - Senate Bill 2733, sponsored by Senator Dan Cronin and Representative Bob Pritchard, to restrict the use of TIF funds to demolish, remove, or substantially modify a historic resource (defined in the bill) unless no prudent and feasible alternative exists was also passed last week. The bill does contain language that would exempt certain places or structures. This bill has been sent to the Governor for his consideration. - Legislation was also approved last week to extend the life of the TIF in the city of Aurora. Senate Bill 2678, sponsored by Senator Linda Holmes and Representative Linda Chapa LaVia, has been sent to the Governor for his consideration. - Senate Bill 546, the subject of negotiations for the past two years among various interested parties including the IAR, was overwhelmingly approved by the Senate and House and sent to the Governor for his consideration. This measure, sponsored by Senator John Cullerton and Representative Jim Brosnahan, adds language to the Illinois Notary Public Act dealing with a pilot program for notarial acts involving documents that transfer title to Cook County residential properties. For the period from July 1, 2008 until July 1, 2011 notaries will be required to create a notarial record (to be kept for 7 years) of each act performed in connection with a document of conveyance. Notaries are authorized to charge up to $25 for notarial records required under this legislation. These records are not subject to inspection or copying under the Freedom of Information Act. SB 546 requires the notarial record to contain:1) the date of the notarial act;2) the type, title or description of the document of conveyance being notarized and the PIN used to identify the residential real property for assessment or taxation purposes and the common street address for the property;3) the signature, printed name and residence street address of each person whose signature is the subject of the notarial act and a certification by the person that the property is residential real property;4) a description of the satisfactory evidence reviewed by the notary to determine the identity of the person whose signature is the subject of the notarial act;5) the date of the notarization, the fee charged for the notarial act, the notary’s home or business phone number, the notary’s residence street address, the notary’s commission expiration date, the correct legal name of the notary’s employer or principal and the business street address of the employer or principal;6) the notary public shall require the person signing the document of conveyance, including an agent acting on behalf of a principal under a duly executed power of attorney, to place his/her thumbprint on the notarial record. - Senate Bill 2034, sponsored by Senator David Koehler and Representative David Leitch, was approved by both the Senate and the House and sent to the Governor for his consideration. The legislation would allow a unit of local government to require homeowners who maintain a private sewage disposal system within the unit of local government to provide verification of a valid contract with a licensed private sewage disposal system installer, no more frequently than once every 3 years, to the unit of local government. The legislation specifies that no additional fee may be charged for such verification. The IAR is NEUTRAL on this legislation. - Both the House and Senate passed legislation this spring session to enact important reforms to the downstate and suburban police and firefighter pension systems. However, the same bill was NOT approved in both chambers so the issue remains on the table for the fall session. House Bill 4905, sponsored by Representative Mark Beaubien and Senator Jeff Schoenberg and Senate Bill 2090, sponsored by Senator Susan Garrett and Representative Mark Beaubien are SUPPORTED by the IAR. - Two measures were approved last week to grant the requisite State authority to two units of local government to exercise quick-take eminent domain powers. Senate Bill 2501, sponsored by Senator Pam Althoff and Representative Mike Tryon, grants quick-take eminent domain powers for a period of one year to the Village of Lake in the Hills for the Lake in the Hills Airport runway. House Bill 3106, sponsored by Representative Naomi Jakobsson and Senator Michael Frerichs, grants quick-take eminent domain powers for a period of one year to the City of Champaign for drainage and improvements related to the Boneyard Creek Project. Both measures have been sent to the Governor. The IAR is NEUTRAL on these bills which are limited in time and specific in purpose. - House Bill 5238, sponsored by Representative Karen Yarbrough and Senator Iris Martinez, was approved by both chambers and sent to the Governor. This bill authorizes the Chicago Housing Authority (CHA) to participate as a partner or member of a partnership, limited liability company, joint venture, or other form of a business arrangement with a for-profit or non-profit developer for the rehabilitation and development or ownership, or both development and ownership, of low-income and mixed-income rental and for-sale housing. - Unless called back into special session to deal with the budget or other significant issues the General Assembly is not scheduled to be back until after the November election. 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
Thursday, May 29, 2008
Congresswoman Battles Foreclosure
Congresswoman Battles Foreclosure
By ERICA WERNER,
AP
Posted: 2008-05-24 11:41:29
Filed Under: Nation News, Politics News
WASHINGTON (May 24) - Congresswoman Laura Richardson claimed Friday that her Sacramento home was sold into foreclosure without her knowledge and contrary to an agreement with her lender. But foreclosure buyer James York say the house is his now.Richardson said that she is like any other American suffering in the mortgage crisis and wants to testify to Congress about her experience as lawmakers craft a foreclosure-prevention bill.
Richardson said she has renegotiated her loan to pay it off and promised to fully comply with all its terms. She also said she will pay nearly $9,000 in delinquent property taxes.In a lengthy interview with The Associated Press on Friday night, the Southern California Democrat struck back against several days of negative publicity over reports she defaulted on her mortgage, allowing the house to be sold at auction.Richardson, elected in a special election last August, acknowledged turmoil in her life in the months after an incumbent's death in April opened up the Los Angeles-area House seat.She used her money to finance her campaign and fell behind in mortgage payments. But Richardson said that makes her like other Americans who have to deal with a sudden death or birth that throws a wrench into their finances.She insisted she's not getting special terms because she's a congresswoman."I'm Laura Richardson. I'm an American, I'm a single woman who had four employment changes in less than four months," Richardson told the AP. "I had to figure out just like every other American how I could restructure the obligations that I had with the income I had."Richardson was a member of the Long Beach City Council when she won a California state Assembly seat in November 2006, months before she bought the three-bedroom, 1 1/2-bath Sacramento home. She won the congressional seat the next year in the special election to replace the late Juanita Millender-McDonald.The problem is that the 1,600-square-foot home she bought for $535,500 in January 2007 was sold at auction earlier this month to a Sacramento mortgage lender, who paid $388,000. The sale was officially recorded on Monday, according to documents on file with the county Recorder's Office.A default notice sent to Richardson in March put her unpaid balance at $578,384.Richardson makes nearly $170,000 as a member of Congress and was paid $113,000 during the eight months she served in the Assembly in 2007 before her election to Congress. She also received a per diem total of $20,000 from California, according to a financial disclosure form she filed with the House of Representatives clerk.Although others struggling with mortgages make far less, Richardson said it was "very misleading" to compare her earnings to the national median household income of around $50,000. The reason: Lawmakers are required to maintain two residences while other people don't have to, she said.Richardson provided AP with an April letter that appears to be from Washington Mutual Home Loans telling her that there was a hold on foreclosure sales on her property until June 4 of this year.She said she got another letter asking for payments May 2 and paid them, but did not know the sale was going to happen five days later.Richardson also provided an e-mail dated Thursday she said was from Washington Mutual that appeared to acknowledge an agreement "to facilitate the recission of foreclosure sale."A Washington Mutual spokeswoman, Sara Gaugl, told AP earlier in the day that the company had "not received consent from Ms. Richardson that would allow us to discuss her loan situation."Washington Mutual did not respond to a later inquiry seeking comment on Richardson's claims.Meanwhile, the current owner of the property told AP that his ownership of the house is not in doubt.James York, owner of Red Rock Mortgage Inc. of Sacramento, declined to discuss any possible negotiations that might be ongoing."I've taken possession on the home," York said. "I've been working on it. Fixing it up. It had been vacant. It was in cleaner and in better repair than most foreclosures."The home, built in 1926, is in Sacramento's Curtis Park, a desirable, upper middle-class neighborhood near downtown that sits under a canopy of decades-old trees.
Copyright 2008 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. All active hyperlinks have been inserted by AOL.
By ERICA WERNER,
AP
Posted: 2008-05-24 11:41:29
Filed Under: Nation News, Politics News
WASHINGTON (May 24) - Congresswoman Laura Richardson claimed Friday that her Sacramento home was sold into foreclosure without her knowledge and contrary to an agreement with her lender. But foreclosure buyer James York say the house is his now.Richardson said that she is like any other American suffering in the mortgage crisis and wants to testify to Congress about her experience as lawmakers craft a foreclosure-prevention bill.
Richardson said she has renegotiated her loan to pay it off and promised to fully comply with all its terms. She also said she will pay nearly $9,000 in delinquent property taxes.In a lengthy interview with The Associated Press on Friday night, the Southern California Democrat struck back against several days of negative publicity over reports she defaulted on her mortgage, allowing the house to be sold at auction.Richardson, elected in a special election last August, acknowledged turmoil in her life in the months after an incumbent's death in April opened up the Los Angeles-area House seat.She used her money to finance her campaign and fell behind in mortgage payments. But Richardson said that makes her like other Americans who have to deal with a sudden death or birth that throws a wrench into their finances.She insisted she's not getting special terms because she's a congresswoman."I'm Laura Richardson. I'm an American, I'm a single woman who had four employment changes in less than four months," Richardson told the AP. "I had to figure out just like every other American how I could restructure the obligations that I had with the income I had."Richardson was a member of the Long Beach City Council when she won a California state Assembly seat in November 2006, months before she bought the three-bedroom, 1 1/2-bath Sacramento home. She won the congressional seat the next year in the special election to replace the late Juanita Millender-McDonald.The problem is that the 1,600-square-foot home she bought for $535,500 in January 2007 was sold at auction earlier this month to a Sacramento mortgage lender, who paid $388,000. The sale was officially recorded on Monday, according to documents on file with the county Recorder's Office.A default notice sent to Richardson in March put her unpaid balance at $578,384.Richardson makes nearly $170,000 as a member of Congress and was paid $113,000 during the eight months she served in the Assembly in 2007 before her election to Congress. She also received a per diem total of $20,000 from California, according to a financial disclosure form she filed with the House of Representatives clerk.Although others struggling with mortgages make far less, Richardson said it was "very misleading" to compare her earnings to the national median household income of around $50,000. The reason: Lawmakers are required to maintain two residences while other people don't have to, she said.Richardson provided AP with an April letter that appears to be from Washington Mutual Home Loans telling her that there was a hold on foreclosure sales on her property until June 4 of this year.She said she got another letter asking for payments May 2 and paid them, but did not know the sale was going to happen five days later.Richardson also provided an e-mail dated Thursday she said was from Washington Mutual that appeared to acknowledge an agreement "to facilitate the recission of foreclosure sale."A Washington Mutual spokeswoman, Sara Gaugl, told AP earlier in the day that the company had "not received consent from Ms. Richardson that would allow us to discuss her loan situation."Washington Mutual did not respond to a later inquiry seeking comment on Richardson's claims.Meanwhile, the current owner of the property told AP that his ownership of the house is not in doubt.James York, owner of Red Rock Mortgage Inc. of Sacramento, declined to discuss any possible negotiations that might be ongoing."I've taken possession on the home," York said. "I've been working on it. Fixing it up. It had been vacant. It was in cleaner and in better repair than most foreclosures."The home, built in 1926, is in Sacramento's Curtis Park, a desirable, upper middle-class neighborhood near downtown that sits under a canopy of decades-old trees.
Copyright 2008 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. All active hyperlinks have been inserted by AOL.
Saturday, May 24, 2008
Springfield Update
Illinois Association of REALTORS
Quorum Call Week in Review
May 23, 2008
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.
“Taxation with representation ain’t so hot either.”
~Gerald Barzan
- This week, both the House and Senate took final action on a number of substantive bills as this spring session heads toward what is hoped to be the final days- however, the State budget still remains the wild card. The House and the Senate have passed separate budget measures so negotiations must continue in an effort to craft an agreed final plan. The Senate’s version included over $500 million in sweeps from various dedicated funds with the exception of certain funds including those funds that have been the subject of lawsuits to prevent such action.
- On Wednesday, the Governor signed into law Senate Bill 2052, legislation sponsored by Senator Bill Haine and Representative Dan Beiser, creating the Flood Prevention District Act for the counties of Madison, Monroe and St. Clair (P.A. 95-719). These counties are authorized to establish a flood prevention district for the purpose of performing emergency levee repair and flood prevention. The counties are also authorized to impose a sales tax (0.25%) upon determination that an emergency situation exists regarding levee repair or flood prevention. In related action, the Senate approved a “trailer bill” this week to make necessary additions to this new State law related to the administration of the district including the authority to use excess funds accumulated prior to January 1, 2008 by a sanitary district in their tort liability fund. This trailer bill must also be approved by the House. The IAR SUPPORTS this bill.
- Senate Bill 2014, sponsored by Senator Susan Garrett and Representative Sid Mathias, was overwhelmingly approved by the House on Tuesday following the same action by the Senate in April. This bill clarifies Illinois law related to actions of local governments that are subject to de novo review. The IAR SUPPORTS this bill which has been sent to the Governor for his consideration.
- The House unanimously approved Senate Bill 2110 this week and the measure has been sent to the Governor for his consideration. This bill, sponsored by Senator A.J. Wilhelmi and Representative Careen Gordon, creates the Uniform Environmental Covenants Act. This legislation provides that an owner of real property may voluntarily enter into an environmental covenant with an agency and, if appropriate, one or more holders. The covenant must be recorded and it is subject to the laws governing recording and priority of interests in real property. The purpose of the Act is to control the future use of brownfield sites for the protection of health and the environment. The IAR is NEUTRAL on this legislation.
- Also approved this week and sent to the Governor was House Bill 4129, sponsored by Representative Frank Mautino and Senator Bill Haine. This bill amends the Private Sewage Disposal Licensing Act, to allow for new technology to be used as an option for smaller septic systems that service primarily residential properties. The intent is to allow for new technology, tested and proven in other states and often at a lesser cost, to be used in Illinois. The IAR SUPPORTS this legislation.
- House Bill 4195, sponsored by Representative LaShawn Ford and Senator Mattie Hunter, was unanimously approved by the Senate this week following similar action by the House in April. This bill amends the foreclosure provisions within the Code of Civil Procedure to add language regarding notice provisions with respect to residential real estate. The law will require that notice be sent to the homeowner, even if the homeowner has previously been held in default. If the homeowner has filed an appearance, the notice must be sent by mail to the address indicated on the appearance. In all other cases, the notice must be mailed to the homeowner at the common address of the foreclosed property. The notice is required to include, in 12-point boldface capitalized type, the statement that the homeowner has the right to remain in possession for 30 days after entry of an order of possession. The IAR is NEUTRAL on this legislation.
- House Bill 4611, sponsored by Representative Connie Howard and Senator Mattie Hunter has been approved by both chambers and sent to the Governor for his consideration. The bill expands the “Our Own Home Program” within the State Treasurer’s office. This program, established in 2002 assists Illinois residents buy a home or keep their existing homes from going into foreclosure. “Our Own Home” provides lenders with extra security on mortgages they might otherwise reject. The Treasurer’s Office guarantees 10 percent of each loan amount for the first five years of the mortgage. Under the provisions of the bill, the Treasurer’s office will assist mortgage holders in refinancing, in addition to loans for purchasing a home. In addition, the legislation redefines “home loan” within the program to remove the 50% cap on the conforming loan size. The IAR is NEUTRAL on this legislation.
- House Bill 1842 was approved by the Senate this week and sent back to the House for their concurrence. You may recall that in 2004 the General Assembly enacted the Energy Efficient Commercial Building Act. This law required that all commercial buildings constructed, renovated or modified conform to the International Code Council’s International Energy Conservation Code. House Bill 1842 expanded the Act to include construction of residential buildings. Initially approved by the House in 2007 over the objections of the IAR and the Home Builders Association, the bill was rewritten by the Senate to reflect the negotiations among all parties. While the bill expands the Act to cover both commercial and residential buildings there were important provisions added to address specific concerns of the IAR and the Home Builders. The bill will provide that the Code shall be the minimum/maximum energy efficiency requirements for the new construction of all residential buildings in the State. Additions, alteration, renovations or repairs to existing residential structures are exempted. Currently 127 municipalities and 7 counties have already adopted a Code by ordinance and are authorized to continue to administer their Code in place on or before May 1, 2008. HOWEVER those units cannot, in the future, enact less or more stringent standards than the standards established in this Act. The bill also prohibits a unit of local government from enacting an annexation ordinance or resolution or annexation agreement that would impose energy efficiency building standards less or more stringent that the standards in effect throughout the jurisdiction of that government. The IAR SUPPORTED the negotiated amendment added by the Senate and has removed its opposition to the bill.
- Final legislative action was taken on three bills dealing with Tax Increment Finance (TIF) Districts Senate Bill 2298 extends the life of the TIFs in both West Frankfort and Milan; House Bill 4201 extends the life of the TIF in the village of Downs; House Bill 4548 extends the life of the TIF in the village of Libertyville. The IAR is NEUTRAL on these bills which have been sent to the Governor for his consideration.
- Senate Bill 2387 was approved by the House this week following similar action by the Senate in April. This bill, sponsored by Senator Jacqueline Collins and Representative Karen Yarbrough, adds homeownership, including the basic process of obtaining a mortgage and the concepts of fixed and adjustable rate mortgages, subprime loans, and predatory lending, as a component of consumer education courses taught in Illinois high schools. The bill has been sent to the Governor for his consideration.
- House Bill 1361, sponsored by Representative LaShawn Ford and Senator Rickey Hendon, was unanimously approved by the Senate this week. The bill makes changes to the Real Estate License Act related to escrow monies. As we reported earlier, this bill was approved by the House in the 2007 session following negotiations between the IAR and Representative Ford. HB 1361 provides that in the absence of the filing of a claim in a court of competent jurisdiction, escrow monies being held by a broker shall be deemed abandoned and transferred to the State Treasurer to be handled as unclaimed property after 6 months have elapsed from the receipt by the broker of a written demand for the escrow monies by either principal. The IAR SUPPORTS this bill which has been sent to Governor for his consideration.
- House Bill 4687, sponsored by Representative Michael Boland and Senator Michael Frerichs, has been approved by both chambers and sent to the Governor. This bill permits the board of any fire protection district to establish a grant program for residential property owners who wish to install a sprinkler or other fire suppression system.
- The Senate took final action on House Bill 4196 this week, a measure that extends the date for the submission of the report of the Condominium Advisory Council to January 31, 2009. Senator John Cullerton, the Senate sponsor had proposed amendments to the measure that sought to enact procedures for tax sales and scavenger sales of condominiums and townhomes. However, these provisions were controversial and ultimately removed from the bill. The IAR is NEUTRAL on this proposal which has been sent to the Governor for his consideration.
- In 2003 the Elevator Safety and Regulation Act was enacted into State law. This is the State law that covers the construction, operation, inspection, testing, maintenance, alteration and repair of elevators, escalators moving walks and dumbwaiters. The Act is administered by the State Fire Marshal’s office and includes the licensure of contractors, inspectors and mechanics as well as the permitting, annual registration and annual inspection of existing conveyances. While private residences, including apartment and condominium units, are exempt from the Act, apartment and condominium buildings with elevators are covered under the Act. Also of note, the Act does NOT apply to the city of Chicago. This week the Senate approved Senate Bill 886 which specifies that rules adopted under the Act requiring safety code upgrade compliance beginning in 2009 or 2011 is extended to 2013. Senator Don Harmon, the sponsor of the measure indicated that this will allow budgeting for condominium associations to comply but not compromise safety. This measure has been sent to the House for their consideration. Representative Skip Saviano is the House sponsor.
- The House unanimously approved House Bill 5067 this week and sent the bill to the Senate for their consideration. This bill is the rewrite of the Real Estate Appraiser Licensing Act. The IAR was involved in negotiations on the measure and SUPPORTED the bill as approved by the House. The bill is sponsored by Representative Skip Saviano and Senator William Delgado.
- The Senate also approved House Bill 3106 this week. This measure grants the requisite State authority to the city of Champaign to exercise quick-take eminent domain powers for a period of one year for drainage and improvements related to the Boneyard Creek Project (a flood control project). This bill has been sent back to the House for concurrence. HB 3106 is sponsored by Representative Shane Cultra and Senator Michael Frerichs. The IAR is NEUTRAL on this measure.
- The Senate approved an amended version of House Bill 4207 this week and sent the bill back to the House for their concurrence. The bill amends both the Criminal Code and the Landlord and Tenant Act to provide that it is unlawful for a child sex offender who owns and resides at residential real estate to knowingly rent any residential unit within the same building in which he/she resides to a person who is the parent or guardian of a child or children under 18 years of age. This provision shall apply to those leases or other rental arrangements entered into after the effective date of the bill. This bill is sponsored by Senator Iris Martinez and Representative JoAnn Osmond.
- The House Judiciary I- Civil Law Committee advanced Senate Bill 2128, legislation seeking to license community association managers, to the House floor this week as negotiations continue. The IAR is working with proponents of the measure and hope to have an agreement soon.
- House Resolution 1199, in celebration of the 75th anniversary of the Institute of Real Estate Management (IREM), was adopted by the House this week.
- Members of both the House and the Senate return to Springfield next Tuesday in an effort to conclude business for the spring by Saturday, May 31st. The General Assembly has extended the deadline for final action on bills remaining on the calendar to May 31st. Among the many bills in this category are two bills OPPOSED by the IAR- Senate Bill 2287 (amending the Safe Homes Act) and House Bill 2916 (authorizing local regulation of landlords). Watch for a possible Call to Action on these issues next week.
- Check out the Government Affairs section of the IAR website for a status report on all State issues of interest.
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.
Quorum Call Week in Review
May 23, 2008
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.
“Taxation with representation ain’t so hot either.”
~Gerald Barzan
- This week, both the House and Senate took final action on a number of substantive bills as this spring session heads toward what is hoped to be the final days- however, the State budget still remains the wild card. The House and the Senate have passed separate budget measures so negotiations must continue in an effort to craft an agreed final plan. The Senate’s version included over $500 million in sweeps from various dedicated funds with the exception of certain funds including those funds that have been the subject of lawsuits to prevent such action.
- On Wednesday, the Governor signed into law Senate Bill 2052, legislation sponsored by Senator Bill Haine and Representative Dan Beiser, creating the Flood Prevention District Act for the counties of Madison, Monroe and St. Clair (P.A. 95-719). These counties are authorized to establish a flood prevention district for the purpose of performing emergency levee repair and flood prevention. The counties are also authorized to impose a sales tax (0.25%) upon determination that an emergency situation exists regarding levee repair or flood prevention. In related action, the Senate approved a “trailer bill” this week to make necessary additions to this new State law related to the administration of the district including the authority to use excess funds accumulated prior to January 1, 2008 by a sanitary district in their tort liability fund. This trailer bill must also be approved by the House. The IAR SUPPORTS this bill.
- Senate Bill 2014, sponsored by Senator Susan Garrett and Representative Sid Mathias, was overwhelmingly approved by the House on Tuesday following the same action by the Senate in April. This bill clarifies Illinois law related to actions of local governments that are subject to de novo review. The IAR SUPPORTS this bill which has been sent to the Governor for his consideration.
- The House unanimously approved Senate Bill 2110 this week and the measure has been sent to the Governor for his consideration. This bill, sponsored by Senator A.J. Wilhelmi and Representative Careen Gordon, creates the Uniform Environmental Covenants Act. This legislation provides that an owner of real property may voluntarily enter into an environmental covenant with an agency and, if appropriate, one or more holders. The covenant must be recorded and it is subject to the laws governing recording and priority of interests in real property. The purpose of the Act is to control the future use of brownfield sites for the protection of health and the environment. The IAR is NEUTRAL on this legislation.
- Also approved this week and sent to the Governor was House Bill 4129, sponsored by Representative Frank Mautino and Senator Bill Haine. This bill amends the Private Sewage Disposal Licensing Act, to allow for new technology to be used as an option for smaller septic systems that service primarily residential properties. The intent is to allow for new technology, tested and proven in other states and often at a lesser cost, to be used in Illinois. The IAR SUPPORTS this legislation.
- House Bill 4195, sponsored by Representative LaShawn Ford and Senator Mattie Hunter, was unanimously approved by the Senate this week following similar action by the House in April. This bill amends the foreclosure provisions within the Code of Civil Procedure to add language regarding notice provisions with respect to residential real estate. The law will require that notice be sent to the homeowner, even if the homeowner has previously been held in default. If the homeowner has filed an appearance, the notice must be sent by mail to the address indicated on the appearance. In all other cases, the notice must be mailed to the homeowner at the common address of the foreclosed property. The notice is required to include, in 12-point boldface capitalized type, the statement that the homeowner has the right to remain in possession for 30 days after entry of an order of possession. The IAR is NEUTRAL on this legislation.
- House Bill 4611, sponsored by Representative Connie Howard and Senator Mattie Hunter has been approved by both chambers and sent to the Governor for his consideration. The bill expands the “Our Own Home Program” within the State Treasurer’s office. This program, established in 2002 assists Illinois residents buy a home or keep their existing homes from going into foreclosure. “Our Own Home” provides lenders with extra security on mortgages they might otherwise reject. The Treasurer’s Office guarantees 10 percent of each loan amount for the first five years of the mortgage. Under the provisions of the bill, the Treasurer’s office will assist mortgage holders in refinancing, in addition to loans for purchasing a home. In addition, the legislation redefines “home loan” within the program to remove the 50% cap on the conforming loan size. The IAR is NEUTRAL on this legislation.
- House Bill 1842 was approved by the Senate this week and sent back to the House for their concurrence. You may recall that in 2004 the General Assembly enacted the Energy Efficient Commercial Building Act. This law required that all commercial buildings constructed, renovated or modified conform to the International Code Council’s International Energy Conservation Code. House Bill 1842 expanded the Act to include construction of residential buildings. Initially approved by the House in 2007 over the objections of the IAR and the Home Builders Association, the bill was rewritten by the Senate to reflect the negotiations among all parties. While the bill expands the Act to cover both commercial and residential buildings there were important provisions added to address specific concerns of the IAR and the Home Builders. The bill will provide that the Code shall be the minimum/maximum energy efficiency requirements for the new construction of all residential buildings in the State. Additions, alteration, renovations or repairs to existing residential structures are exempted. Currently 127 municipalities and 7 counties have already adopted a Code by ordinance and are authorized to continue to administer their Code in place on or before May 1, 2008. HOWEVER those units cannot, in the future, enact less or more stringent standards than the standards established in this Act. The bill also prohibits a unit of local government from enacting an annexation ordinance or resolution or annexation agreement that would impose energy efficiency building standards less or more stringent that the standards in effect throughout the jurisdiction of that government. The IAR SUPPORTED the negotiated amendment added by the Senate and has removed its opposition to the bill.
- Final legislative action was taken on three bills dealing with Tax Increment Finance (TIF) Districts Senate Bill 2298 extends the life of the TIFs in both West Frankfort and Milan; House Bill 4201 extends the life of the TIF in the village of Downs; House Bill 4548 extends the life of the TIF in the village of Libertyville. The IAR is NEUTRAL on these bills which have been sent to the Governor for his consideration.
- Senate Bill 2387 was approved by the House this week following similar action by the Senate in April. This bill, sponsored by Senator Jacqueline Collins and Representative Karen Yarbrough, adds homeownership, including the basic process of obtaining a mortgage and the concepts of fixed and adjustable rate mortgages, subprime loans, and predatory lending, as a component of consumer education courses taught in Illinois high schools. The bill has been sent to the Governor for his consideration.
- House Bill 1361, sponsored by Representative LaShawn Ford and Senator Rickey Hendon, was unanimously approved by the Senate this week. The bill makes changes to the Real Estate License Act related to escrow monies. As we reported earlier, this bill was approved by the House in the 2007 session following negotiations between the IAR and Representative Ford. HB 1361 provides that in the absence of the filing of a claim in a court of competent jurisdiction, escrow monies being held by a broker shall be deemed abandoned and transferred to the State Treasurer to be handled as unclaimed property after 6 months have elapsed from the receipt by the broker of a written demand for the escrow monies by either principal. The IAR SUPPORTS this bill which has been sent to Governor for his consideration.
- House Bill 4687, sponsored by Representative Michael Boland and Senator Michael Frerichs, has been approved by both chambers and sent to the Governor. This bill permits the board of any fire protection district to establish a grant program for residential property owners who wish to install a sprinkler or other fire suppression system.
- The Senate took final action on House Bill 4196 this week, a measure that extends the date for the submission of the report of the Condominium Advisory Council to January 31, 2009. Senator John Cullerton, the Senate sponsor had proposed amendments to the measure that sought to enact procedures for tax sales and scavenger sales of condominiums and townhomes. However, these provisions were controversial and ultimately removed from the bill. The IAR is NEUTRAL on this proposal which has been sent to the Governor for his consideration.
- In 2003 the Elevator Safety and Regulation Act was enacted into State law. This is the State law that covers the construction, operation, inspection, testing, maintenance, alteration and repair of elevators, escalators moving walks and dumbwaiters. The Act is administered by the State Fire Marshal’s office and includes the licensure of contractors, inspectors and mechanics as well as the permitting, annual registration and annual inspection of existing conveyances. While private residences, including apartment and condominium units, are exempt from the Act, apartment and condominium buildings with elevators are covered under the Act. Also of note, the Act does NOT apply to the city of Chicago. This week the Senate approved Senate Bill 886 which specifies that rules adopted under the Act requiring safety code upgrade compliance beginning in 2009 or 2011 is extended to 2013. Senator Don Harmon, the sponsor of the measure indicated that this will allow budgeting for condominium associations to comply but not compromise safety. This measure has been sent to the House for their consideration. Representative Skip Saviano is the House sponsor.
- The House unanimously approved House Bill 5067 this week and sent the bill to the Senate for their consideration. This bill is the rewrite of the Real Estate Appraiser Licensing Act. The IAR was involved in negotiations on the measure and SUPPORTED the bill as approved by the House. The bill is sponsored by Representative Skip Saviano and Senator William Delgado.
- The Senate also approved House Bill 3106 this week. This measure grants the requisite State authority to the city of Champaign to exercise quick-take eminent domain powers for a period of one year for drainage and improvements related to the Boneyard Creek Project (a flood control project). This bill has been sent back to the House for concurrence. HB 3106 is sponsored by Representative Shane Cultra and Senator Michael Frerichs. The IAR is NEUTRAL on this measure.
- The Senate approved an amended version of House Bill 4207 this week and sent the bill back to the House for their concurrence. The bill amends both the Criminal Code and the Landlord and Tenant Act to provide that it is unlawful for a child sex offender who owns and resides at residential real estate to knowingly rent any residential unit within the same building in which he/she resides to a person who is the parent or guardian of a child or children under 18 years of age. This provision shall apply to those leases or other rental arrangements entered into after the effective date of the bill. This bill is sponsored by Senator Iris Martinez and Representative JoAnn Osmond.
- The House Judiciary I- Civil Law Committee advanced Senate Bill 2128, legislation seeking to license community association managers, to the House floor this week as negotiations continue. The IAR is working with proponents of the measure and hope to have an agreement soon.
- House Resolution 1199, in celebration of the 75th anniversary of the Institute of Real Estate Management (IREM), was adopted by the House this week.
- Members of both the House and the Senate return to Springfield next Tuesday in an effort to conclude business for the spring by Saturday, May 31st. The General Assembly has extended the deadline for final action on bills remaining on the calendar to May 31st. Among the many bills in this category are two bills OPPOSED by the IAR- Senate Bill 2287 (amending the Safe Homes Act) and House Bill 2916 (authorizing local regulation of landlords). Watch for a possible Call to Action on these issues next week.
- Check out the Government Affairs section of the IAR website for a status report on all State issues of interest.
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.
Monday, May 5, 2008
Springfield Update
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.
“Private property began the instant somebody had a mind of his own.”
~e. e. cummings
- While the Speaker of the House, Michael Madigan, announced on Thursday that the House would return Sunday to consider SJRCA 70- the resolution that provides for the constitutional amendment to be placed on the November ballot to authorize the recall of State executive officers, members of the General Assembly, judges and local elected officials the measure FAILED in the Senate by 3 votes. The measure needed 36 votes to pass but it was defeated on a roll call vote of 33-19-2. This measure differed from the House version (HJRCA28) in that it included judges and local elected officials. The House resolution was held in the Senate Executive Committee and there was no final vote. As we previously reported, under the provisions of our constitution an initiative to amend the constitution would have had to be approved in the same form in both chambers by May 4th to be on the ballot in November. See how your Senator by viewing the official roll call:
http://www.ilga.gov/legislation/votehistory/95/senate/09500SC0070_05012008_002000T.pdf
- The House Revenue Committee unanimously approved for consideration House Bill 5730, a measure that extends the life of the TIF district in the village of Hoffman Estates. The bill has been sent to the House. The IAR is NEUTRAL on this proposal.
- On Wednesday, the House approved Bill 5503 on a roll call vote of 83-26-0. This measure, sponsored by Representative Skip Saviano and Senator Don Harmon, makes changes to the Real Estate Timeshare Act to further clarify provisions requiring that resale agents be licensed under the Real Estate License Act. The IAR SUPPORTS this legislation which has been sent to the Senate for their consideration.
- The House overwhelmingly approved House Bill 4683 this week and sent the measure to the Senate for their consideration. The bill creates the Fire and Life Safety Device Act to establish penalties for the manufacture, installation or sale of any fake smoke detector, sprinkler head, carbon monoxide alarm, or heat detector used for life safety or fire protection. The measure permits inspection of the devices to ensure compliance with the Act by municipalities, fire protection districts, counties, licensed fire sprinkler contractors and licensed engineers BUT no such inspection can be conducted in any room or suite of rooms used for human habitation, including any single family residence, living unit of a multi-family residence or living unit in a mixed use building. The IAR appreciates the efforts of Representative Elaine Nekritz to address concerns that the IAR had with the original proposal. The bill will be sponsored in the Senate by Senator Michael Noland.
- Also approved this week was House Bill 4789. The underlying bill creates the Radon-Resistant Building Codes Task Force, made up of 13-members (including a member of the IAR) charged with making recommendations to the Governor, the Illinois Emergency Management Agency, the Illinois Environmental Protection Agency, and the Pollution Control Board concerning the adoption of rules for building codes. At the request of the IAR the bill also includes clarifications to the Illinois Radon Awareness Act, including a provision that clearly exempts transfers involving a dwelling unit located on the third story or higher above ground level, including dwelling units in condominiums and cooperatives. The bill now moves to the Senate for their consideration. The bill is sponsored by Representative Dan Reitz and Senator Bill Haine. The IAR SUPPORTS this bill.
- House Bill 5701 was unanimously approved this week in the House and sent to the Senate for their consideration. This bill, sponsored by Representative Julie Hamos and Senator Iris Martinez, appropriates $6 million from the Rental Housing Support Program Fund to the Illinois Department of Revenue for rent subsidies to property owners who rent to low-income tenants and for operational support of the Rental Housing Support Program administered by the Illinois Housing Development Authority. The funds from this program, established by law in 2005, are generated by a flat $10 surcharge on recorded real estate-related documents.
- On Thursday the Senate Financial Institutions Committee unanimously approved for further consideration House Bill 4191. This bill, sponsored by Senator Jacqueline Collins, accelerates the effective date of Senate Bill 1167 approved in the 2007 spring session. You will recall that this comprehensive predatory lending measure was slated to take effect in mid-2008. That measure enacted new predatory lending regulations that were the initiative of Attorney General Lisa Madigan and revised the predatory lending database provisions originally enacted in House Bill 4050. Under HB 4191, the new effective date of the Attorney General’s provisions would be on the date it is signed by the Governor (rather than June 1) but the predatory lending database provisions would still be effective July 1, 2008 due to a stated effective date for those provisions. Another section of HB 4191 amends the Deposit of State Moneys Act to grant the State Treasurer the ability to expand the “Our Own Home” program which provides assistance to home owners at risk of losing their homes due to a financial hardship. The bill has been sent to the Senate floor for further consideration. This measure, sponsored in the House by Speaker Michael Madigan, was approved in that chamber in January. The IAR is NEUTRAL on HB 4191.
- Also approved by the Senate Financial Institutions Committee was House Bill 1361. This bill, sponsored by Senator Rickey Hendon, makes changes to the Real Estate License Act related to escrow monies. This bill from the 2007 session, sponsored in the House by Representative LaShawn Ford who is also a REALTOR was the product of negotiations between the IAR and the sponsor. HB 1361 provides that in the absence of the filing of a claim in a court of competent jurisdiction, escrow monies being held by a broker shall be deemed abandoned and transferred to the State Treasurer to be handled as unclaimed property after 6 months have elapsed from the receipt by the broker of a written demand for the escrow monies by either principal. The IAR SUPPORTS this bill which has been sent to the full Senate for their consideration.
- This November voters statewide will be asked if a constitutional convention should be convened. A recent poll by the University of Illinois on the question of the convening of a constitutional convention indicated 16% strongly support, 23% support, 10% oppose, 8% strongly oppose. But a very high number of those polled- 43%- remain undecided. According to Brian Gaines, the political scientist at the University of Illinois who coordinated the poll, frustration with state government is reflected in the poll results as both recall and term limits (which could be considered by the convention) were strongly supported by poll respondents. See the poll results at the following link: http://www.igpa.uillinois.edu/opinionmonitor/results4.asp The IAR Leadership recognizes the importance and statewide implications of the convening of a constitutional convention. In March the Leadership team directed the Public Policy and Government Affairs Member Involvement Group to establish a Task Force to develop policy recommendations and to report same to the Leadership Committee. The eleven-member Task Force, chaired by Public Policy and Government Affairs MIG chairman Chuck Wiercinski, has been established and will be meeting in early June.
- The General Assembly is in session next week. The House will reconvene on Tuesday and be in session through Friday while the Senate will meet Wednesday through Friday.
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.
“Private property began the instant somebody had a mind of his own.”
~e. e. cummings
- While the Speaker of the House, Michael Madigan, announced on Thursday that the House would return Sunday to consider SJRCA 70- the resolution that provides for the constitutional amendment to be placed on the November ballot to authorize the recall of State executive officers, members of the General Assembly, judges and local elected officials the measure FAILED in the Senate by 3 votes. The measure needed 36 votes to pass but it was defeated on a roll call vote of 33-19-2. This measure differed from the House version (HJRCA28) in that it included judges and local elected officials. The House resolution was held in the Senate Executive Committee and there was no final vote. As we previously reported, under the provisions of our constitution an initiative to amend the constitution would have had to be approved in the same form in both chambers by May 4th to be on the ballot in November. See how your Senator by viewing the official roll call:
http://www.ilga.gov/legislation/votehistory/95/senate/09500SC0070_05012008_002000T.pdf
- The House Revenue Committee unanimously approved for consideration House Bill 5730, a measure that extends the life of the TIF district in the village of Hoffman Estates. The bill has been sent to the House. The IAR is NEUTRAL on this proposal.
- On Wednesday, the House approved Bill 5503 on a roll call vote of 83-26-0. This measure, sponsored by Representative Skip Saviano and Senator Don Harmon, makes changes to the Real Estate Timeshare Act to further clarify provisions requiring that resale agents be licensed under the Real Estate License Act. The IAR SUPPORTS this legislation which has been sent to the Senate for their consideration.
- The House overwhelmingly approved House Bill 4683 this week and sent the measure to the Senate for their consideration. The bill creates the Fire and Life Safety Device Act to establish penalties for the manufacture, installation or sale of any fake smoke detector, sprinkler head, carbon monoxide alarm, or heat detector used for life safety or fire protection. The measure permits inspection of the devices to ensure compliance with the Act by municipalities, fire protection districts, counties, licensed fire sprinkler contractors and licensed engineers BUT no such inspection can be conducted in any room or suite of rooms used for human habitation, including any single family residence, living unit of a multi-family residence or living unit in a mixed use building. The IAR appreciates the efforts of Representative Elaine Nekritz to address concerns that the IAR had with the original proposal. The bill will be sponsored in the Senate by Senator Michael Noland.
- Also approved this week was House Bill 4789. The underlying bill creates the Radon-Resistant Building Codes Task Force, made up of 13-members (including a member of the IAR) charged with making recommendations to the Governor, the Illinois Emergency Management Agency, the Illinois Environmental Protection Agency, and the Pollution Control Board concerning the adoption of rules for building codes. At the request of the IAR the bill also includes clarifications to the Illinois Radon Awareness Act, including a provision that clearly exempts transfers involving a dwelling unit located on the third story or higher above ground level, including dwelling units in condominiums and cooperatives. The bill now moves to the Senate for their consideration. The bill is sponsored by Representative Dan Reitz and Senator Bill Haine. The IAR SUPPORTS this bill.
- House Bill 5701 was unanimously approved this week in the House and sent to the Senate for their consideration. This bill, sponsored by Representative Julie Hamos and Senator Iris Martinez, appropriates $6 million from the Rental Housing Support Program Fund to the Illinois Department of Revenue for rent subsidies to property owners who rent to low-income tenants and for operational support of the Rental Housing Support Program administered by the Illinois Housing Development Authority. The funds from this program, established by law in 2005, are generated by a flat $10 surcharge on recorded real estate-related documents.
- On Thursday the Senate Financial Institutions Committee unanimously approved for further consideration House Bill 4191. This bill, sponsored by Senator Jacqueline Collins, accelerates the effective date of Senate Bill 1167 approved in the 2007 spring session. You will recall that this comprehensive predatory lending measure was slated to take effect in mid-2008. That measure enacted new predatory lending regulations that were the initiative of Attorney General Lisa Madigan and revised the predatory lending database provisions originally enacted in House Bill 4050. Under HB 4191, the new effective date of the Attorney General’s provisions would be on the date it is signed by the Governor (rather than June 1) but the predatory lending database provisions would still be effective July 1, 2008 due to a stated effective date for those provisions. Another section of HB 4191 amends the Deposit of State Moneys Act to grant the State Treasurer the ability to expand the “Our Own Home” program which provides assistance to home owners at risk of losing their homes due to a financial hardship. The bill has been sent to the Senate floor for further consideration. This measure, sponsored in the House by Speaker Michael Madigan, was approved in that chamber in January. The IAR is NEUTRAL on HB 4191.
- Also approved by the Senate Financial Institutions Committee was House Bill 1361. This bill, sponsored by Senator Rickey Hendon, makes changes to the Real Estate License Act related to escrow monies. This bill from the 2007 session, sponsored in the House by Representative LaShawn Ford who is also a REALTOR was the product of negotiations between the IAR and the sponsor. HB 1361 provides that in the absence of the filing of a claim in a court of competent jurisdiction, escrow monies being held by a broker shall be deemed abandoned and transferred to the State Treasurer to be handled as unclaimed property after 6 months have elapsed from the receipt by the broker of a written demand for the escrow monies by either principal. The IAR SUPPORTS this bill which has been sent to the full Senate for their consideration.
- This November voters statewide will be asked if a constitutional convention should be convened. A recent poll by the University of Illinois on the question of the convening of a constitutional convention indicated 16% strongly support, 23% support, 10% oppose, 8% strongly oppose. But a very high number of those polled- 43%- remain undecided. According to Brian Gaines, the political scientist at the University of Illinois who coordinated the poll, frustration with state government is reflected in the poll results as both recall and term limits (which could be considered by the convention) were strongly supported by poll respondents. See the poll results at the following link: http://www.igpa.uillinois.edu/opinionmonitor/results4.asp The IAR Leadership recognizes the importance and statewide implications of the convening of a constitutional convention. In March the Leadership team directed the Public Policy and Government Affairs Member Involvement Group to establish a Task Force to develop policy recommendations and to report same to the Leadership Committee. The eleven-member Task Force, chaired by Public Policy and Government Affairs MIG chairman Chuck Wiercinski, has been established and will be meeting in early June.
- The General Assembly is in session next week. The House will reconvene on Tuesday and be in session through Friday while the Senate will meet Wednesday through Friday.
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.
Monday, April 21, 2008
IAR Springfield Update
“Property is the fruit of labor; property is desirable; it is a positive good in the world.”~Abraham Lincoln
The General Assembly was in session Tuesday April 15-Thursday, April 17 this week. Of particular note was the fact that the House of Representatives extended its deadline for final consideration of House bills to May 9th. This date had originally been April 18th. The Senate, however, kept its original April 17th deadline date.
- On Tuesday, the House of Representatives approved House Bill 4196 on a roll call vote of 111-2-0. The bill, sponsored by Representative Harry Osterman, extends the date for the submission of the report of the Condominium Advisory Council to January 31, 2009. IAR was NEUTRAL on this proposal which has been sent to the Senate for their consideration.
- The Senate two measures this week related to quick-take eminent domain powers. Senate Bill 2501, approved on Tuesday, grants the requisite legislative authority for the village of Lake in the Hills to use quick-take eminent domain power for a one-year period for the acquisition of property for the construction of a runway at Lake in the Hills airport. The bill is sponsored by Senator Pam Althoff and Representative Mike Tryon. Senate Bill 2207, approved on Thursday, grants quick-take eminent domain powers for a period of one year to the County of DuPage for the Huffman Street Flood Control Project. This measure is sponsored by Senator Randy Hultgren.
- The Senate also on Tuesday unanimously approved Senate Bill 2677, to require a municipality to provide notification of a planned annexation to the taxpayers within the territory. As we reported last week, notice is currently required to be published in a newspaper of general circulation within the territory not less than 10 days before the passage of the annexation ordinance and is also sent to the township supervisor. This bill would add the requirement that the municipality, not less than 15 days before the passage of the annexation ordinance, serve written notice in person or by certified mail on the taxpayers within the territory. The bill also provides that once notice is given no other municipality may annex the proposed territory for a period of 60 days from the date the notice is mailed or delivered to the taxpayers. IAR SUPPORTS this legislation which has been sent to the House for their consideration.
- On Tuesday, the House Revenue Committee advanced a few measures of interest. House Bill 4548, sponsored by Representative Ed Sullivan, extends the life of the Tax Increment Financing (TIF) District, for the village of Libertyville. House Bill 2426, sponsored by Representative Art Turner, amends the Illinois Housing Development Act with respect to tax credits. Under current law IHDA or an agency of the city of Chicago which reserves tax credits for an affordable housing project must record an instrument to assure that the property maintains its affordable housing compliance for a minimum of 10 years. HB 2426 permits an earlier release of the instrument as long as there are an equal or greater number of rental units of equal or lesser rent available to all tenants of the project prior to or simultaneous with the release. These units are required to be in the immediate vicinity of the project. A new instrument is required to be recorded against the replacement units to assure affordable housing compliance for the remainder of the original 10-year period. These bills have been sent to the full House for further consideration.
- On Tuesday, the Senate Local Government Committee had a lengthy discussion on a well intended but controversial measure seeking to authorize fire personnel broad inspection powers for student rental housing. Senate Bill 2745, sponsored by Senator Michael Noland was OPPOSED by IAR. IAR testified that the measure was overly broad and overreaching. The sponsor decided to not call the bill for a vote as several Senators expressed reservations with the measure. The sponsor pledged to the committee members that he would continue to work with IAR and other opponents in an effort to reach a consensus on a more narrowly-focused alternative bill.
- The Senate also approved Senate Bill 2828 this week on a roll call vote of 43-7-1. This bill, sponsored by Senator Iris Martinez, requires a title insurance company in each residential mortgage loan transaction to file with the Secretary of Financial and Professional Regulation the names and license or registration numbers of each financial institution, residential mortgage licensee, loan originator, real estate appraiser, real estate licensee, and closing agent involved in the transaction. IAR was NEUTRAL on this legislation which has been sent to the House for their consideration.
- On Wednesday, the House approved House Bill 4545, a measure that grants authority for Peoria County to create a stormwater management committee on a roll call vote of 72-43-0. Under the new section added to the Counties Code, the Peoria County Board is authorized to establish a stormwater management planning committee and may prescribe rules and regulations for floodplain management and for stormwater runoff. The county board can impose fees but the fees cannot exceed the cost of satisfying onsite stormwater retention or detention requirements. Credits or a reduction in fees must be provided to developers who construct facilities for onsite retention or detention. The county board is also given the authority to levy either a property tax OR a sales tax IF APPROVED BY THE VOTERS. Tax abatements, rebates or incentives shall be offered to developers who construct, maintain and use approved stormwater devices. Developers are exempt from any fees if the new development satisfies onsite retention or detention pursuant to any other local ordinance addressing erosion, sediment or stormwater control and IEPA regulations that place the development into compliance with the NPDES permit program at the time of the dedication of public infrastructure. The county board is also authorized to issue general obligation bonds for implementing a stormwater plan. IAR is NEUTRAL on this measure which has been considered in prior legislative sessions. The bill has been sent to the Senate for their consideration. In related action, the Senate approved Senate Bill 2033, a measure with the same stormwater provisions plus included authority for Peoria County to establish an economic development project area- which in effect is a countywide TIF district. The bill was approved on a roll call vote of 40-16-0.
- Also on Wednesday, the House approved House Bill 5195 on a contested roll call vote of 67-48-0. Under the provisions of current law, if there is unincorporated territory within 1½ miles of the boundaries of two or more municipalities with zoning plans, the corporate authorities may agree upon a boundary line to mark the boundaries of each of the jurisdictions. House Bill 5195 changes the distance requirement to 3 miles. IAR had OPPOSED this measure due to concerns on the potential impact on private property owners residing in the territory of the boundary dispute. The bill is sponsored by Representative Mike Tryon and Senator Pam Althoff.
- On Wednesday evening the Senate approved Senate Bill 2052 on a roll call vote of 41-15-0. This bill, sponsored by Senator Bill Haine, creates the Flood Prevention District Act for the counties of Madison, Monroe and St. Clair. These counties are authorized to establish a flood prevention district for the purpose of performing emergency levee repair and flood prevention. The affected counties are also authorized to join together by intergovernmental agreement. A governing board of commissioners would be appointed by the county board to carry out the functions of the district- the legislation specifies that at least one of the commissioners shall reside or own property that is located within a floodplain situated in the jurisdiction of the district. The county board is also authorized to impose a sales tax (0.25%) upon determination that an emergency situation exists regarding levee repair or flood prevention. IAR SUPPORTS SB 2052 which has been sent to the House for their consideration.
- Senate Bill 2110 was also approved on Wednesday evening in the Senate. This measure, sponsored by Senator A.J. Wilhelmi, creates the Uniform Environmental Covenants Act. This legislation provides that an owner of real property may voluntarily enter into an environmental covenant with an agency and, if appropriate, one or more holders. The covenant must be recorded and it is subject to the laws governing recording and priority of interests in real property. The purpose of the Act is to control the future use of brownfield sites for the protection of health and to the environment. An environmental covenant restricts activities on sites where some contamination remains in place despite tax lien foreclosure, adverse possession, marketable title statutes and other common law doctrines that might otherwise extinguish an intended land use control. IAR appreciates the efforts of the sponsor, Senator Wilhelmi, to address concerns that we had with the original proposal which were addressed by Senate Amendment #3.
- The House Judiciary I- Civil Law Committee acted on amendments on two bills of interest on Thursday. House Amendment #2 to House Bill 5189 rewrote the provisions of the bill. As amended, the legislation makes changes to the Condominium Property Act with respect to contents of bylaws, powers and duties of the Board of Managers. The new language will provide that if an association that currently permits leasing amends its declaration, bylaws, rules or regulations to prohibit leasing a unit owner leasing his/her unit at the time of the prohibition may continue to do so, until the owner voluntarily sells the unit. The amended bill will also prohibit the association from assessing special fines, fees, dues or penalties for leasing a unit. Identical language is added with respect to common interest communities and homeowners associations. IAR is NEUTRAL on this legislation. House Amendment #2 to House Bill 5503 made further changes to the Real Estate Timeshare Act to further clarify provisions requiring that resale agents be licensed under the Real Estate License Act. IAR SUPPORTS this amendment and legislation. Both bills are pending in the House.
- Also on Thursday, the House Insurance Committee further amended and advanced House Bill 4647. This bill, sponsored by Representative David Leitch is intended to enhance knowledge of those properties where a claim has been made for mine subsidence. While IAR has concerns with the new provisions, the sponsor and committee members pledged that they would continue to work toward a consensus on the final provisions.
- The Senate took final action on Senate Bill 2786 on Thursday, approving the bill on a roll call vote of 51-0-2 with the understanding that the measure was “a work in progress”. This bill, sponsored by Senator Don Harmon, is an initiative of the Land Title Association related to disbursements of funds. IAR has raised questions regarding a few of the definitions in the legislation and we will continue to discuss those with the sponsors and proponents. IAR is NEUTRAL on the bill.
- Also on Thursday, the Senate approved Senate Bill 1998 with the acknowledgment that there would be further amendments in the House. The measure, sponsored by Senator Jacqueline Collins and Representative Karen Yarbrough, creates the Homeowner Protection Act related to foreclosures. The bill includes disclosure information related to consumer rights for those in foreclosure proceedings, requirements on lenders and new enforcement provisions for the Secretary of the Department of Financial and Professional Regulation. The bill also contains provisions related to multistate automated licensing of residential mortgage licensees. IAR is NEUTRAL on this legislation.
- House Bill 5790, amending the Lead Poisoning Prevention Act, was overwhelmingly approved by the House on Thursday on a roll call vote of 106-8-0. The bill, as amended provides that the Department of Public Health shall create, maintain, and make available to the public a Hazardous Housing Registry that will provide information regarding all properties within the State for which a mitigation notice has been issued pursuant to this Act. The bill as passed the House included language requested by IAR to ensure that the owner is given a reasonable period of time to comply with an order to mitigate a lead hazard before that property is put in the Registry. IAR is NEUTRAL on this measure sponsored by Representative Harry Osterman.
- Senate Bill 2584, sponsored by Senator Pam Althoff and SUPPORTED by IAR, was approved by the Senate this week and sent to the House for their consideration. This bill amends the Special Service Area (SSA) Tax Law within the Property Tax Code to further enhance the ability to object to the creation of a SSA. IAR SUPPORTS this measure and will continue efforts to attach another amendment to address restrictive covenants regarding SSA assessments.
- Senate Bill 2626 was approved this week by the Senate with the agreement by the sponsor and the proponents that the bill would be amended in the House to remove objectionable provisions regarding private enforcement actions. This measure amends the Illinois State Agency Historic Resources Preservation Act regarding properties, both public and private, that are subject to the Act. IAR appreciates the efforts of the sponsor, Senator Dan Cronin, to ensure that the record was clear regarding our concern.
- Senate Bill 2128 was another measure advanced this week with the understanding that further amendments would have to be attached to the bill in the House. The bill provides for the licensing of community association managers, including condominium managers. IAR has been in ongoing discussions with proponents of condominium manager licensing to craft a proposal that is satisfactory to all parties. The bill is sponsored by Senator John Cullerton and Representative Elaine Nekritz.
- Also this week the Senate approved Senate Bill 2287, sponsored by Senator Kwame Raoul and OPPOSED by IAR. The bill makes changes to the Safe Homes Act, a law first enacted in 2006 to provide victims or potential victims of domestic or sexual violence with the ability to break their lease and/or change the locks on their apartment if they were under a credible imminent threat of domestic or sexual violence. At the time of its enactment, IAR cautioned against the repeated amendment of the Safe Homes Act. We feel that adding more and more penalties, requirements and restrictions on landlords may lead landlords to view victims of domestic or sexual violence as risky and problematic tenants. Despite these concerns, and even though the Act just became effective January 1, 2007, it was amended in 2007 to provide for damages to tenants who demand a lock change under the Act that don’t get a key within 48 hours, to add oral leases, and to allow victims to lock out co-tenant perpetrators. SB 2287 proposes to expand the Act again to allow tenants to recover a minimum of $2,000 plus attorney’s fees from a landlord if the landlord shares “any information provided by the tenant” in exercising his or her rights under the Act to a prospective landlord. We believe that continuing to add new penalties on landlords may make landlords wary of renting to victims. As a result, the Safe Homes Act may unintentionally serve to stigmatize victims of domestic and sexual violence in the residential rental market. The bill has been sent to the House.
- Senate Bill 2063, sponsored by Senator Debbie Halvorson, was approved this week in the Senate and sent to the House on a roll call vote of 45-7-0. The bill creates the South Suburban Airport Authority Act to create the governmental entity that will be responsible for the development of the airport in Will County. Concerns were raised about the overly broad eminent domain powers and the sponsor indicated that she would address this and other concerns in further amendments in the House.
- Senate Bill 2820 was overwhelmingly approved this week by the Senate on a roll call vote of 53-1-0. This measure SUPPORTED by IAR was modified from its original version but still enhances the information provided to residential property taxpayers regarding the assessment of their property and rules and regulations for appealing an assessment. The bill is sponsored by Senator Michael Bond and Representative Fred Crespo.
- The Senate Executive Committee held a raucous hearing this week on the proposed constitutional amendment to allow for the recall of constitutional officers and members of the General Assembly. It was not advanced out of the Committee this week as the sponsor indicated that further amendments were needed. The measure must be approved (in the same form in both chambers) by May 4th to be on the ballot in November.
- Thanks to a knowledgeable reader we pass along the following comments to correct an item we reported on in error in last week’s ”Quorum Call: Week in Review” regarding a measure signed by the Governor on the popular vote of the President:
“Not all 50 states must pass the National Popular Vote bill. The proposed compact would come into effect after it is enacted by states collectively possessing a majority of the electoral votes (i.e., 270 of the 538 electoral votes). Electoral College delegates from the states in the compact all would guarantee their votes for the winner of the most popular votes in all 50 states (and the District of Columbia), for the 270 minimum needed electoral votes to win the presidential election. The Electoral College would not be abolished by the National Popular Vote. According to their website, nationalpopularvote.com, one-sixth of the state legislative chambers in the U.S. (a total of 16) have passed the bill in the past two years. The bill has been signed into law in Illinois, Maryland and New Jersey and is on the Governor’s desk in Hawaii (SB 2898). The bill has passed one house in Arkansas, Colorado, North Carolina, Maine, Vermont, and Washington, and both houses in California, Hawaii, Illinois, Maryland, and New Jersey. The bill is currently endorsed by 807 state legislators—370 sponsors (in 47 states) and an additional 437 legislators who have cast recorded votes in favor of the bill.”
- IAR extends its condolences to the family of former State Representative L. Bruce Richmond who died April 13, 2008. Richmond served 18 years in the Illinois House, retiring in 1993.
- The General Assembly will not be in session next week due to Passover. The General Assembly will reconvene on Tuesday, April 29th and the next “Week in Review” will be sent on Friday, May 2nd.
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.
The General Assembly was in session Tuesday April 15-Thursday, April 17 this week. Of particular note was the fact that the House of Representatives extended its deadline for final consideration of House bills to May 9th. This date had originally been April 18th. The Senate, however, kept its original April 17th deadline date.
- On Tuesday, the House of Representatives approved House Bill 4196 on a roll call vote of 111-2-0. The bill, sponsored by Representative Harry Osterman, extends the date for the submission of the report of the Condominium Advisory Council to January 31, 2009. IAR was NEUTRAL on this proposal which has been sent to the Senate for their consideration.
- The Senate two measures this week related to quick-take eminent domain powers. Senate Bill 2501, approved on Tuesday, grants the requisite legislative authority for the village of Lake in the Hills to use quick-take eminent domain power for a one-year period for the acquisition of property for the construction of a runway at Lake in the Hills airport. The bill is sponsored by Senator Pam Althoff and Representative Mike Tryon. Senate Bill 2207, approved on Thursday, grants quick-take eminent domain powers for a period of one year to the County of DuPage for the Huffman Street Flood Control Project. This measure is sponsored by Senator Randy Hultgren.
- The Senate also on Tuesday unanimously approved Senate Bill 2677, to require a municipality to provide notification of a planned annexation to the taxpayers within the territory. As we reported last week, notice is currently required to be published in a newspaper of general circulation within the territory not less than 10 days before the passage of the annexation ordinance and is also sent to the township supervisor. This bill would add the requirement that the municipality, not less than 15 days before the passage of the annexation ordinance, serve written notice in person or by certified mail on the taxpayers within the territory. The bill also provides that once notice is given no other municipality may annex the proposed territory for a period of 60 days from the date the notice is mailed or delivered to the taxpayers. IAR SUPPORTS this legislation which has been sent to the House for their consideration.
- On Tuesday, the House Revenue Committee advanced a few measures of interest. House Bill 4548, sponsored by Representative Ed Sullivan, extends the life of the Tax Increment Financing (TIF) District, for the village of Libertyville. House Bill 2426, sponsored by Representative Art Turner, amends the Illinois Housing Development Act with respect to tax credits. Under current law IHDA or an agency of the city of Chicago which reserves tax credits for an affordable housing project must record an instrument to assure that the property maintains its affordable housing compliance for a minimum of 10 years. HB 2426 permits an earlier release of the instrument as long as there are an equal or greater number of rental units of equal or lesser rent available to all tenants of the project prior to or simultaneous with the release. These units are required to be in the immediate vicinity of the project. A new instrument is required to be recorded against the replacement units to assure affordable housing compliance for the remainder of the original 10-year period. These bills have been sent to the full House for further consideration.
- On Tuesday, the Senate Local Government Committee had a lengthy discussion on a well intended but controversial measure seeking to authorize fire personnel broad inspection powers for student rental housing. Senate Bill 2745, sponsored by Senator Michael Noland was OPPOSED by IAR. IAR testified that the measure was overly broad and overreaching. The sponsor decided to not call the bill for a vote as several Senators expressed reservations with the measure. The sponsor pledged to the committee members that he would continue to work with IAR and other opponents in an effort to reach a consensus on a more narrowly-focused alternative bill.
- The Senate also approved Senate Bill 2828 this week on a roll call vote of 43-7-1. This bill, sponsored by Senator Iris Martinez, requires a title insurance company in each residential mortgage loan transaction to file with the Secretary of Financial and Professional Regulation the names and license or registration numbers of each financial institution, residential mortgage licensee, loan originator, real estate appraiser, real estate licensee, and closing agent involved in the transaction. IAR was NEUTRAL on this legislation which has been sent to the House for their consideration.
- On Wednesday, the House approved House Bill 4545, a measure that grants authority for Peoria County to create a stormwater management committee on a roll call vote of 72-43-0. Under the new section added to the Counties Code, the Peoria County Board is authorized to establish a stormwater management planning committee and may prescribe rules and regulations for floodplain management and for stormwater runoff. The county board can impose fees but the fees cannot exceed the cost of satisfying onsite stormwater retention or detention requirements. Credits or a reduction in fees must be provided to developers who construct facilities for onsite retention or detention. The county board is also given the authority to levy either a property tax OR a sales tax IF APPROVED BY THE VOTERS. Tax abatements, rebates or incentives shall be offered to developers who construct, maintain and use approved stormwater devices. Developers are exempt from any fees if the new development satisfies onsite retention or detention pursuant to any other local ordinance addressing erosion, sediment or stormwater control and IEPA regulations that place the development into compliance with the NPDES permit program at the time of the dedication of public infrastructure. The county board is also authorized to issue general obligation bonds for implementing a stormwater plan. IAR is NEUTRAL on this measure which has been considered in prior legislative sessions. The bill has been sent to the Senate for their consideration. In related action, the Senate approved Senate Bill 2033, a measure with the same stormwater provisions plus included authority for Peoria County to establish an economic development project area- which in effect is a countywide TIF district. The bill was approved on a roll call vote of 40-16-0.
- Also on Wednesday, the House approved House Bill 5195 on a contested roll call vote of 67-48-0. Under the provisions of current law, if there is unincorporated territory within 1½ miles of the boundaries of two or more municipalities with zoning plans, the corporate authorities may agree upon a boundary line to mark the boundaries of each of the jurisdictions. House Bill 5195 changes the distance requirement to 3 miles. IAR had OPPOSED this measure due to concerns on the potential impact on private property owners residing in the territory of the boundary dispute. The bill is sponsored by Representative Mike Tryon and Senator Pam Althoff.
- On Wednesday evening the Senate approved Senate Bill 2052 on a roll call vote of 41-15-0. This bill, sponsored by Senator Bill Haine, creates the Flood Prevention District Act for the counties of Madison, Monroe and St. Clair. These counties are authorized to establish a flood prevention district for the purpose of performing emergency levee repair and flood prevention. The affected counties are also authorized to join together by intergovernmental agreement. A governing board of commissioners would be appointed by the county board to carry out the functions of the district- the legislation specifies that at least one of the commissioners shall reside or own property that is located within a floodplain situated in the jurisdiction of the district. The county board is also authorized to impose a sales tax (0.25%) upon determination that an emergency situation exists regarding levee repair or flood prevention. IAR SUPPORTS SB 2052 which has been sent to the House for their consideration.
- Senate Bill 2110 was also approved on Wednesday evening in the Senate. This measure, sponsored by Senator A.J. Wilhelmi, creates the Uniform Environmental Covenants Act. This legislation provides that an owner of real property may voluntarily enter into an environmental covenant with an agency and, if appropriate, one or more holders. The covenant must be recorded and it is subject to the laws governing recording and priority of interests in real property. The purpose of the Act is to control the future use of brownfield sites for the protection of health and to the environment. An environmental covenant restricts activities on sites where some contamination remains in place despite tax lien foreclosure, adverse possession, marketable title statutes and other common law doctrines that might otherwise extinguish an intended land use control. IAR appreciates the efforts of the sponsor, Senator Wilhelmi, to address concerns that we had with the original proposal which were addressed by Senate Amendment #3.
- The House Judiciary I- Civil Law Committee acted on amendments on two bills of interest on Thursday. House Amendment #2 to House Bill 5189 rewrote the provisions of the bill. As amended, the legislation makes changes to the Condominium Property Act with respect to contents of bylaws, powers and duties of the Board of Managers. The new language will provide that if an association that currently permits leasing amends its declaration, bylaws, rules or regulations to prohibit leasing a unit owner leasing his/her unit at the time of the prohibition may continue to do so, until the owner voluntarily sells the unit. The amended bill will also prohibit the association from assessing special fines, fees, dues or penalties for leasing a unit. Identical language is added with respect to common interest communities and homeowners associations. IAR is NEUTRAL on this legislation. House Amendment #2 to House Bill 5503 made further changes to the Real Estate Timeshare Act to further clarify provisions requiring that resale agents be licensed under the Real Estate License Act. IAR SUPPORTS this amendment and legislation. Both bills are pending in the House.
- Also on Thursday, the House Insurance Committee further amended and advanced House Bill 4647. This bill, sponsored by Representative David Leitch is intended to enhance knowledge of those properties where a claim has been made for mine subsidence. While IAR has concerns with the new provisions, the sponsor and committee members pledged that they would continue to work toward a consensus on the final provisions.
- The Senate took final action on Senate Bill 2786 on Thursday, approving the bill on a roll call vote of 51-0-2 with the understanding that the measure was “a work in progress”. This bill, sponsored by Senator Don Harmon, is an initiative of the Land Title Association related to disbursements of funds. IAR has raised questions regarding a few of the definitions in the legislation and we will continue to discuss those with the sponsors and proponents. IAR is NEUTRAL on the bill.
- Also on Thursday, the Senate approved Senate Bill 1998 with the acknowledgment that there would be further amendments in the House. The measure, sponsored by Senator Jacqueline Collins and Representative Karen Yarbrough, creates the Homeowner Protection Act related to foreclosures. The bill includes disclosure information related to consumer rights for those in foreclosure proceedings, requirements on lenders and new enforcement provisions for the Secretary of the Department of Financial and Professional Regulation. The bill also contains provisions related to multistate automated licensing of residential mortgage licensees. IAR is NEUTRAL on this legislation.
- House Bill 5790, amending the Lead Poisoning Prevention Act, was overwhelmingly approved by the House on Thursday on a roll call vote of 106-8-0. The bill, as amended provides that the Department of Public Health shall create, maintain, and make available to the public a Hazardous Housing Registry that will provide information regarding all properties within the State for which a mitigation notice has been issued pursuant to this Act. The bill as passed the House included language requested by IAR to ensure that the owner is given a reasonable period of time to comply with an order to mitigate a lead hazard before that property is put in the Registry. IAR is NEUTRAL on this measure sponsored by Representative Harry Osterman.
- Senate Bill 2584, sponsored by Senator Pam Althoff and SUPPORTED by IAR, was approved by the Senate this week and sent to the House for their consideration. This bill amends the Special Service Area (SSA) Tax Law within the Property Tax Code to further enhance the ability to object to the creation of a SSA. IAR SUPPORTS this measure and will continue efforts to attach another amendment to address restrictive covenants regarding SSA assessments.
- Senate Bill 2626 was approved this week by the Senate with the agreement by the sponsor and the proponents that the bill would be amended in the House to remove objectionable provisions regarding private enforcement actions. This measure amends the Illinois State Agency Historic Resources Preservation Act regarding properties, both public and private, that are subject to the Act. IAR appreciates the efforts of the sponsor, Senator Dan Cronin, to ensure that the record was clear regarding our concern.
- Senate Bill 2128 was another measure advanced this week with the understanding that further amendments would have to be attached to the bill in the House. The bill provides for the licensing of community association managers, including condominium managers. IAR has been in ongoing discussions with proponents of condominium manager licensing to craft a proposal that is satisfactory to all parties. The bill is sponsored by Senator John Cullerton and Representative Elaine Nekritz.
- Also this week the Senate approved Senate Bill 2287, sponsored by Senator Kwame Raoul and OPPOSED by IAR. The bill makes changes to the Safe Homes Act, a law first enacted in 2006 to provide victims or potential victims of domestic or sexual violence with the ability to break their lease and/or change the locks on their apartment if they were under a credible imminent threat of domestic or sexual violence. At the time of its enactment, IAR cautioned against the repeated amendment of the Safe Homes Act. We feel that adding more and more penalties, requirements and restrictions on landlords may lead landlords to view victims of domestic or sexual violence as risky and problematic tenants. Despite these concerns, and even though the Act just became effective January 1, 2007, it was amended in 2007 to provide for damages to tenants who demand a lock change under the Act that don’t get a key within 48 hours, to add oral leases, and to allow victims to lock out co-tenant perpetrators. SB 2287 proposes to expand the Act again to allow tenants to recover a minimum of $2,000 plus attorney’s fees from a landlord if the landlord shares “any information provided by the tenant” in exercising his or her rights under the Act to a prospective landlord. We believe that continuing to add new penalties on landlords may make landlords wary of renting to victims. As a result, the Safe Homes Act may unintentionally serve to stigmatize victims of domestic and sexual violence in the residential rental market. The bill has been sent to the House.
- Senate Bill 2063, sponsored by Senator Debbie Halvorson, was approved this week in the Senate and sent to the House on a roll call vote of 45-7-0. The bill creates the South Suburban Airport Authority Act to create the governmental entity that will be responsible for the development of the airport in Will County. Concerns were raised about the overly broad eminent domain powers and the sponsor indicated that she would address this and other concerns in further amendments in the House.
- Senate Bill 2820 was overwhelmingly approved this week by the Senate on a roll call vote of 53-1-0. This measure SUPPORTED by IAR was modified from its original version but still enhances the information provided to residential property taxpayers regarding the assessment of their property and rules and regulations for appealing an assessment. The bill is sponsored by Senator Michael Bond and Representative Fred Crespo.
- The Senate Executive Committee held a raucous hearing this week on the proposed constitutional amendment to allow for the recall of constitutional officers and members of the General Assembly. It was not advanced out of the Committee this week as the sponsor indicated that further amendments were needed. The measure must be approved (in the same form in both chambers) by May 4th to be on the ballot in November.
- Thanks to a knowledgeable reader we pass along the following comments to correct an item we reported on in error in last week’s ”Quorum Call: Week in Review” regarding a measure signed by the Governor on the popular vote of the President:
“Not all 50 states must pass the National Popular Vote bill. The proposed compact would come into effect after it is enacted by states collectively possessing a majority of the electoral votes (i.e., 270 of the 538 electoral votes). Electoral College delegates from the states in the compact all would guarantee their votes for the winner of the most popular votes in all 50 states (and the District of Columbia), for the 270 minimum needed electoral votes to win the presidential election. The Electoral College would not be abolished by the National Popular Vote. According to their website, nationalpopularvote.com, one-sixth of the state legislative chambers in the U.S. (a total of 16) have passed the bill in the past two years. The bill has been signed into law in Illinois, Maryland and New Jersey and is on the Governor’s desk in Hawaii (SB 2898). The bill has passed one house in Arkansas, Colorado, North Carolina, Maine, Vermont, and Washington, and both houses in California, Hawaii, Illinois, Maryland, and New Jersey. The bill is currently endorsed by 807 state legislators—370 sponsors (in 47 states) and an additional 437 legislators who have cast recorded votes in favor of the bill.”
- IAR extends its condolences to the family of former State Representative L. Bruce Richmond who died April 13, 2008. Richmond served 18 years in the Illinois House, retiring in 1993.
- The General Assembly will not be in session next week due to Passover. The General Assembly will reconvene on Tuesday, April 29th and the next “Week in Review” will be sent on Friday, May 2nd.
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.
Friday, April 11, 2008
Meet 85'Chicago Bears Super Bowl Champ Otis Wilson
Meet 85'Chicago Bears Super Bowl Champ Otis Wilson at RANWC's 1st RPAC Sports Night!!
When: Friday, April 25th
Time: 6:00pm - 10:00pm
Place: Fox And Hound Smokehouse And Tavern
1416 N. Roselle Rd.,
Schaumburg, IL 60195
Cost: Free!!
Things to Expect:
· Free Appetizers
· Cash Bar
· Free Admission
· Free Darts
· Free Shuffle Board
· Free Pool
· 50/50 Cash Raffle
· Silent Auction
· TV
· I-pod
· GPS and More!
Come Support RPAC!!
(REALTOR® Political Action Committee)
R.S.V.P by Monday, April 21st
Jeff Metzger-Director of Government AffairsJeff@ranwc.com or 847.506.5031
Time: 6:00pm - 10:00pm
Place: Fox And Hound Smokehouse And Tavern
1416 N. Roselle Rd.,
Schaumburg, IL 60195
Cost: Free!!
Things to Expect:
· Free Appetizers
· Cash Bar
· Free Admission
· Free Darts
· Free Shuffle Board
· Free Pool
· 50/50 Cash Raffle
· Silent Auction
· TV
· I-pod
· GPS and More!
Come Support RPAC!!
(REALTOR® Political Action Committee)
R.S.V.P by Monday, April 21st
Jeff Metzger-Director of Government AffairsJeff@ranwc.com or 847.506.5031
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Members meet with Senator Murphy after Legislative Breakfast
