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.

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

IAR Quorum Call

Illinois Association of REALTORS
Quorum Call Week in Review
April 11, 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.

“Property is surely a right of mankind as real as liberty.”~John Adams
- On Wednesday the House unanimously approved House Bill 4611, sponsored by Representative Connie Howard. 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.
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- On Wednesday the House approved House Bill 6302 on a roll call vote of 79-32-2. This measure, sponsored by Representative Kevin Joyce, will require Cook County to annually assess property replacing the current three year reassessment cycle. ALL other counties in the State do annual assessments. The Cook County Assessor opposes the bill and indicated that it would cost the office $10 million due to the requirement that all residential property be reassessed by October 1, 2008. The bill has been sent to the Senate for their consideration- its fate there is unclear.

- Also on Wednesday, the House approved House Bill 4352. The bill, sponsored by Representative Naomi Jakobsson, establishes in Illinois law provisions regarding landlord access to a dwelling unit. The legislation requires a landlord to give a tenant no less than 2 days notice of their intent to enter EXCEPT for instances where repairs or maintenance elsewhere in the building unexpectedly require the access or in cases of an emergency. In those two exceptions the landlord is required to give the tenant notice of the entry within 2 days after the entry. The bill also specifies entry times as between 8:00 a.m. and 8:00 p.m. This measure is OPPOSED by IAR.

- The House Local Government Committee narrowly approved House Bill 2916 on a roll call vote of 6-5-0 this week and sent the bill to the full House for their consideration. This bill STRONGLY OPPOSED by the IAR would give ALL counties and municipalities unlimited authority to license and regulate landlords. Based on some of the onerous requirements, restrictions and fees some home rule municipalities have imposed in their landlord regulatory ordinances, the IAR is extremely concerned with expanding this unfettered authority to non-home rule units. PLEASE CONTACT YOUR REPRESENTATIVE AND APPRISE THEM OF OUR OPPOSITION AND WATCH FOR A CALL TO ACTION ON THIS LEGISLATION NEXT WEEK. This bill is sponsored by Representative Dennis Reboletti.

- House Bill 4613, sponsored by Representative LaShawn Ford was approved this week in the House and sent to the Senate for their consideration. This measure amends the Criminal Code to provide that forgery of a property deed is a Class 2 (rather than a Class 3) felony. The IAR is NEUTRAL on this proposal.

- The Senate approved legislation this week to grant all counties except Cook County the authority to place a question on the ballot for a property tax to be levied for a county farmland preservation easement program. IF the voters so authorize, the county could levy an annual 0.05% property tax with proceeds being used for the purchase of easements to preserve farmland. In effect, the county voters would be asked if they support a countywide property tax increase for the purchase of development rights. The legislation allows the question to be placed on the ballot by the county board OR by a petition of the citizens. Conversely, the legislation also gives the citizens the opportunity to petition for a vote to be held to discontinue the program and tax. The legislation was amended to require the petition to get the question on the ballot to be signed by at least 0.5% of the total number of votes cast in the county during the last preceding gubernatorial election (instead of 100 taxpayers residing in the county). The measure is sponsored by Senator Pam Althoff and Representative Mike Tryon.

- The Senate Local Government Committee unanimously approved a change to the Illinois Municipal Code to address the issue of forced annexations. Senate Bill 2677, sponsored by Senator Maggie Crotty requires a municipality to provide notification of a planned annexation to the taxpayers within the territory. 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. This bill is pending on the Senate floor. The IAR SUPPORTS this proposal.

- Two constitutional amendments were considered this week in the Illinois House- with very different results. On Tuesday, the House approved HJRCA 28, sponsored by Representative Jack Franks. This proposed amendment to the State Constitution would allow voters to petition for a recall election of any executive branch officer or member of the General Assembly. A petition to recall an executive branch officer must include signatures of at least 12% of the total votes cast for the office in the last election. A petition to recall a member of the General Assembly must be signed by at least 20% of the total votes cast in the election for the official. HJRCA 28 was approved on a roll call vote of 75-33-3.
http://www.ilga.gov/legislation/votehistory/95/house/09500HC0028_04082008_018000A.pdf Most observers feel that the proposed amendment will NOT pass the Senate. On Thursday, the House defeated a proposed constitutional amendment to double the individual income tax rate for those earning $250,000 or more (3% to 6%) after a lengthy debate. The proposal would also have increased the standard exemption for those making under $250,000 from $2,000 to $4,500; indexed the tax rates and the exemption to the inflation rate; and required proceeds from the tax increase to be deposited into funds for capital projects and education funding. Under the provisions of the Illinois Constitution, all proposed amendments must be approved by a 3/5 vote in the House (71 votes) and the Senate (36 votes) and then submitted to the voters at least six months after approval by the General Assembly. This requirement means that any constitutional amendment considered in the fall election must be voted on by both chambers by May 4th. HJRCA 42 was defeated on a roll call vote of 52-60-0.
http://www.ilga.gov/legislation/votehistory/95/house/09500HC0042_04102008_003000A.pdf

- The Governor signed into law legislation this week to ratify and approve the “Agreement Among the States to Elect the President by National Popular Vote” (P.A. 95-714). This is an initiative to abolish the Electoral College and it would become effective only if ALL states enact the agreement. To date 11 states have approved the agreement.

- The General Assembly is scheduled to be in session next week Tuesday, April 15-Friday, April 18th.


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.

Senate Passes Foreclosure Bill

Senate passes foreclosure bill
Plan includes tax breaks for builders, credit for the purchase of foreclosed property and grants to buy and repair abandoned homes.

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Last Updated: April 10, 2008: 12:33 PM EDT

WASHINGTON (AP) -- The Senate on Thursday passed a bipartisan package of tax breaks and other steps designed to help businesses and homeowners weather the housing crisis.
The measure passed by an impressive 84-12 vote, but even supporters of it acknowledge it's tilted too much in favor of businesses like homebuilders and does little to help borrowers at risk of losing their homes.
The plan combines large tax breaks for homebuilders and a $7,000 tax credit for people who buy foreclosed properties, as well as $4 billion in grants for communities to buy and fix up abandoned homes.
Despite the impressive vote, the bill will be significantly redrawn by critics in the House.
The White House opposes the plan but has not issued an explicit veto threat. It says parts of the legislation would make the problem worse by depressing some home values and the measure inappropriately uses taxpayer money to bail out lenders saddled with foreclosed houses.
The House challenge
The House is likely to reject key portions of the Senate measure, including $25 billion over three years in tax breaks for money-losing businesses such as homebuilders. A plan adopted Wednesday by a key House panel dropped that idea as well as the tax credit for purchasers of foreclosed homes.
Senate Majority Leader Harry Reid, D-Nev., acknowledged changes will be needed in upcoming talks with the House and the White House.
"This is just the beginning of the process," Reid said. "This bill will go to the House. With the House and the White House we can come up with a piece of legislation fairly quickly."
Before passing the measure, the Senate added $6 billion in unrelated tax breaks for renewable energy producers, despite Senate rules that say tax cuts need to be "paid for" with revenue increases elsewhere in the tax code.
The bill also offers $150 billion for pre-foreclosure counseling and stronger loan disclosure requirements.
Objections
The $25 billion tax break the plan offers to homebuilders and other businesses absorbing heavy losses and the energy tax package were both dropped from an economic rescue plan enacted in February. Critics of those proposals said they were overly expensive and would not stimulate the economy.
But deepening public worries about the housing crisis appear to have emboldened lawmakers to swell the $9 trillion deficit to pay for the measures.
The $7,000 tax credit for the purchase of foreclosed homes, opponents argue, would unfairly reward purchases that would have happened anyway while possibly devaluing other homes. It also could give banks an incentive to foreclose on homes by subsidizing purchases of such properties.
The measure calls for a long-awaited modernization of the Federal Housing Administration that would enable more homeowners to refinance into loans backed by the Depression-era agency.
It includes $10 billion in tax-free mortgage revenue bonds to help homeowners refinance subprime loans, a move endorsed by President Bush.
A House bill takes a far different tack, steering tax breaks toward first-time homebuyers and investors in low-income rental housing. The measure is likely to be paired with a broader housing rescue package being drafted by Rep. Barney Frank, D-Mass., the Financial Services Committee chairman, that would have the FHA step in to back $300 billion in refinanced loans for 1 million or more homeowners who otherwise might face foreclosure.
Under a similar plan by Sen. Chris Dodd, D-Conn., the Banking Committee chairman, the FHA would insure up to $400 billion in loans.
The Bush administration countered those plans Wednesday with its own, far narrower, proposal. It would expand an existing FHA program to allow more homeowners who are facing large rate hikes to refinance into more affordable government-insured loans

Monday, April 7, 2008

IAR Quorum Call

Illinois Association of REALTORS
Quorum Call Week in Review
April 4, 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.



“Freedom is hammered out on the anvil of discussion, dissent, and debate.”~Hubert H. Humphrey

- A relatively quiet week this week at the Capitol as lawmakers returned from their two-week spring recess. Most action occurred on the floor as both the Senate and the House debated legislation and worked toward the final passage deadline dates- April 17th (Senate) and April 18th (House).

- This week the Illinois Senate approved two measures related to foreclosures. On Tuesday the Senate approved Senate Bill 1979, sponsored by Senator Rickey Hendon on a roll call vote of 44-3-0. This measure creates the Illinois Homeowner’s Emergency Assistance Program Act to authorize the Illinois Housing Development Authority (IHDA) to issue grants to homeowners whose property is being foreclosed due to failure to make mortgage payments. The bill establishes conditions of eligibility and limits the amount of the grant to $6,000 or 3 monthly mortgage payments, whichever is less. Another key condition is that the lender must agree to renegotiate the terms of the mortgage being foreclosed once the payment is made by the State. The bill will be sponsored in the House by Representative LaShawn Ford. On Thursday, the Senate approved Senate Bill 2566, sponsored by Senator Jacqueline Collins on a roll vote of 33-21-1. This measure directs IHDA to establish and administer a foreclosure counseling program, funded by an increase in license fees issued under the Residential Mortgage License Act. The bill adds a $500 surcharge on the license fees. Interestingly, the House rejected a similar bill House Bill 5788 on Wednesday on its initial roll call vote. The key difference in the House bill was that the surcharge was $300 and was to be in effect for only 3 years. The sponsor, Representative Esther Golar placed the issue on the “Order of Postponed Consideration”; a parliamentary procedure to allow the bill to be voted on a second time. The IAR is NEUTRAL on these bills.

- The Senate gave its approval to Senate Bill 2387 on a roll call vote 42-8-0. This bill, sponsored by Senator Jacqueline Collins, 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 will be sponsored by Representative Karen Yarbrough in the House.

- Senate Bill 2014, sponsored by Senator Susan Garrett, was unanimously approved by the Senate on Tuesday and sent to the House for their consideration. This bill clarifies Illinois law related to those actions of local governments that are subject to de novo review. The IAR SUPPORTS this bill which will be sponsored in the House by Representative Sid Mathias.

- Also approved on Tuesday in the Senate was Senate Bill 2034, sponsored by Senator David Koehler. This bill allows a unit of local government to require homeowners who maintain a private sewage disposal system within the unit of local government to provide verification, no more frequently than once every 3 years, to the unit of local government of a valid contract with a licensed private sewage disposal system installation contractor. The legislation specifies that no additional fee may be charged for such verification. The IAR is NEUTRAL on this legislation.

- Senate Bill 2298 was unanimously approved by the Senate. This measure, sponsored by Senator Mike Jacobs and Representative Patrick Verschoore, provides the legislative authorization for the extension of two Tax Increment Financing Districts- one in the village of Milan and one in the city of West Frankfort. The IAR is NEUTRAL on this legislation.

- The House unanimously approved House Bill 5572 on Tuesday and sent the measure to the Senate for their consideration. This bill, SUPPORTED by the IAR, will require a contractor for improvements of an owner-occupied single-family residence give the owner written notice before filing a lien against any property of the owner. The measure is sponsored by Representative Kathy Ryg and Senator Terry Link.

- House Resolution 1002, sponsored by Representative Renee Kosel, was defeated this week in the House Railroad Safety Committee. The resolution called for a study to be conducted on the traffic patterns and the necessary upgrades that will be needed to safely operate the EJ & E Line as part of the Canadian National Railway Company system. It further urged the Canadian National Railway Company to acknowledge that the train traffic increases that they are proposing will put a significant burden on the citizens of the listed counties and that the U.S. Surface Transportation Board take into account the severity of the increases in rail traffic in the affected communities and to make decisions regarding this acquisition that will maximize the quality of life of the citizens within the listed counties. It is expected that there will be additional discussions on this issue this year in both the Illinois General Assembly and in Congress.

- On Thursday, April 3rd, the Senate advanced amendments to House Bill 473 on a fast track to authorize the Governor to raid special funds up to $530 million as a means to fill the gaping multi-million dollar budget deficit. Senate Amendments 3 and 4 to HB 473 provided that the Governor could not transfer funds out of certain funds. The twenty one specified funds were primarily related to veterans but also included the Road Fund and the Open Space Lands Acquisition and Development Fund (OSLAD). The measure was approved on a partisan roll call vote of 37-21-0; all Democrats voting Yes and all Republicans voting No. However, the fate of this measure in the House is uncertain. A spokesman for the Speaker stated that it made no sense to tap into restricted accounts due to the number of lawsuits that have been filed challenging that authority. You will recall that in June of 2006, the IAR filed a lawsuit in the Circuit Court, Seventh Judicial Circuit, Sangamon County, Illinois, against six officials of the State of Illinois challenging the constitutionality of the Fiscal Year 2007 Budget Implementation Act to the extent the Act authorizes removing moneys from the Real Estate License Administration Fund and transferring it into the General Revenue Fund. The State of Illinois entered into a stipulation in the case that precludes the State from transferring any funds from the Real Estate License Administration Fund to be used for any purpose other than those specified in the Illinois Real Estate License Act of 2000 without giving IAR 21 days notice. This would provide an opportunity for IAR to obtain a hearing in Sangamon County Circuit Court to have a preliminary injunction barring the transfer of the funds.

- The House approved three measures this week that the IAR had no formal position on but may be of interest. House Bill 4294, narrowly approved on a roll call vote of 63-46-0, authorizes the counties of Will, Kendall, Boone, Lake, DeKalb, and Grundy to impose a county motor fuel tax IF approved by the voters. The bill is sponsored by Representative Pat Lindner and Senator Maggie Crotty. House Bill 4687, unanimously approved, authorizes the board of trustees of any fire protection district to establish a program to award grants to certain property owners who install and maintain sprinkler or other fire suppression systems. This bill is sponsored by Representative Mike Boland. House Bill 5209, sponsored by Representative Wyvetter Younge, is an appropriation of $1,125,000 from the General Revenue Fund to the Department of Commerce and Economic Opportunity for the purpose of making grants to promote housing development and construction in East St. Louis.

- The Senate unanimously approved Senate Bill 2622, sponsored by Senator Matt Murphy to provide that the Cook County Board may by resolution provide that if a person has been granted a Senior Citizen Homestead, the person qualifying need not reapply for the exemption. The law currently authorizes this for all counties except Cook.

- An interesting story was reported in Inman News this week out of Montana. According to the story the Montana Board of Realty revoked restrictions enacted in August of 2007 that had prohibited real estate licensees from paying a cash rebate, cash gift, or cash prize due to an investigation by the United States Department of Justice. The assistant attorney general in charge of the Antitrust Division of DOJ stated, “As we have consistently seen in other states, the repeal of rebate bans leads to increased competition between brokers and lower prices for consumers of real estate brokerage services.” You will recall that the IAR was strongly OPPOSED and applauded the defeat of HB 4313 that was promoted by a group called the “Homeowners Club of America” that sought to amend Illinois’ Real Estate License Act to enact a similar prohibition.

- The General Assembly is scheduled to be in session next week Tuesday, April 8-Friday, April 11th.




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.

Members meet with Senator Murphy after Legislative Breakfast