Homebuyer Tax Credit

Daily Real Estate News May 21, 2009 HUD: Homebuyer Tax Credit Loans Still on Track News reports that the federal government is backing away from its plan to permit eligible borrowers to monetize the first-time homebuyer tax credit are off the mark, a spokesperson for the U.S. Department of Housing and Urban Development says.
"The technical details are still being finalized and will soon be published in a mortgagee letter and posted on our Web site," Lemar Wooley, a HUD spokesperson, told REALTOR® Magazine Wednesday afternoon.
Under the guidance that's under development, state agencies and other HUD-approved entities would be able to provide short-term bridge loans that households could use to help with their downpayment. The loans would be repaid with the proceeds from the households' federal tax credit.
The loans were announced on the opening day of NAR's 2009 Midyear Legislative Meetings in Washington, D.C., last week. In his announcement, HUD Secretary Shaun Donovan said guidance would be issued shortly.
When the guidance is released, it is expected to cover eligible lenders and set parameters for loan terms and repayment.
Source: REALTOR® Magazine Online

Springfield Update

IAR State Capitol Report

The General Assembly was in session Tuesday April 28-Thursday, April 30 this week as work continued in committees on various bills. Next week marks a critical deadline- Friday, May 8th is the committee hearing deadline. As you know, the IAR has been actively lobbying against pending legislation (HB 1195 and SB 2101) that seeks to allow ALL municipalities in Illinois to create an independent entity called a “Land Bank Authority” (LBA). It is our understanding that the sponsor and proponents are intending to use one of these bills for limited provisions regarding liens and notices that have been agreed to by the lending lobby and the other bill will be used to advance the Land Banking Authority provisions. The IAR will remain vigilant in our opposition and we urge you to continue to contact your elected officials. The IAR position paper on the Land Banking Authority legislation is available on the IAR website. House Bill 2439, an initiative of the IAR was unanimously approved by the Senate Environment Committee this week. This bill, sponsored by Senator Iris Martinez and Representative Dan Reitz, amends the Illinois Radon Awareness Act to make necessary clarifications to the law, 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 IAR SUPPORTS this bill which is pending final passage in the Senate. Another radon related bill was also approved in the Senate Licensed Activities Committee. That bill, sponsored by Senator Jacqueline Collins and Representative Dan Reitz, prohibits the sale of a device to detect the presence of radon or radon progeny without the prior approval of the device from the Illinois Emergency Management Agency and requires that all electronic radon detection devices to be calibrated to ensure the accuracy and precision of their measurements. The bill also creates a Task Force on Radon-Resistant Building Codes to make recommendations to the Governor, the IEMA, IEPA and the Pollution Control Board concerning the adoption of rules for building codes. The IAR is represented on the Task Force. The IAR is NEUTRAL. The House unanimously passed Senate Bill 1053 this week marking FINAL action on this bill for the spring session. SB 1053, sponsored by Senator Don Harmon and Representative Sid Mathias, amends the Code of Civil Procedure to extend the time limit within which a judgment for possession obtained in an eviction action may be enforced from 90 to 120 days. The IAR was NEUTRAL on this measure which will be sent to the Governor for his consideration. A duplicate bill, HB 3690 was approved in the Senate Judiciary Committee this week and sent to the Senate floor. The Senate Agriculture and Conservation Committee advanced House Bill 1087 this week. This bill, sponsored by Senator John Sullivan and Representative Dan Reitz, modifies the existing Illinois Forestry Development Act and establishes into State law an Illinois Forestry Development Council. The Council is directed to study and evaluate the forest resources and forest industry of Illinois and the legislation spells out specific duties. A duplicate bill is scheduled to be heard in the House Agriculture and Conservation Committee next week (SB 1413). The IAR is NEUTRAL on these bills. The House Business and Occupational Licenses Committee advanced Senate Bill 1579 this week. This bill, sponsored by Representative Elaine Nekritz and Senator A. J. Wilhelmi, creates the Community Association Manager Act and require managers of community associations (condominiums, cooperatives, townhouse developments and other common interest communities) of more than 10 units to be licensed by the Illinois Department of Financial and Professional Regulation (IDFPR) after January 1, 2011. Licensed real estate brokers and salespersons are exempt from the education requirement. The IAR SUPPORTS this legislation which is now pending in the House. A duplicate measure (HB 271) is scheduled to be heard next week in the Senate Judiciary Committee. Also approved this week in the House Judiciary I- Civil Law Committee was Senate Bill 2111, sponsored by Representative Dan Reitz and Senator Don Harmon. This bill is an initiative of the Land Title Association related to disbursements of funds. An amendment was adopted to make a correction in the drafting of the bill. The IAR is NEUTRAL. The Senate Judiciary Committee approved several bills of interest this week. House Bill 153, sponsored by Senator Iris Martinez and Representative LaShawn Ford, requires that any deed executed under the Code of Civil Procedure or judgment vesting title by a consent foreclosure include the grantee’s or mortgagee’s name and the name of a contact person, street and mailing addresses and telephone number. The IAR is NEUTRAL. House Bill 688, sponsored by Senator Jacqueline Collins and Representative Marlow Colvin, is an initiative of the city of Chicago and is intended to expedite receivership procedures for abandoned or dilapidated condominium property. The IAR is NEUTRAL. House Bill 2351, sponsored by Senator Donne Trotter and Representative Harry Osterman, modifies existing law regarding excess funds from the now defunct Torrens fund in Cook County (Cook County had used this system of recording ownership interest in property- Illinois law abolished it in the early 1990s). The IAR SUPPORTS this bill. Legislation to ban text messaging while driving continues to advance in the General Assembly. The Senate Transportation Committee unanimously approved House Bill 71 this week. The bill prohibits a person from composing, sending or reading an electronic message while driving. Exceptions are in the bill for law enforcement, a driver reporting an emergency situation, a driver using an electronic communication device in hands-free or voice-activated mode and for a driver of a commercial vehicle reading a message on a permanently installed communication device. This bill is sponsored by Senator Martin Sandoval and Representative John D’Amico. The IAR will continue to MONITOR this issue. The Senate Local Government Committee advanced several bills of interest this week. House Bill 466, sponsored by Senator Michael Frerichs and Representative Naomi Jakobbson, amends the law related to pre-annexation agreements. The bill adds Champaign County to those counties specified to follow certain procedures. The IAR is NEUTRAL. House Bill 629, sponsored by Senator Deanna Demuzio and Representative Frank Mautino, specifies smaller site construction site stormwater permit fees. The IAR SUPPORTS this bill. House Bill 2451, sponsored by Senator Dan Rutherford and Representative Ken Dunkin, would allow municipalities to combine costs associated with certain nuisance liens (landscape, trees, garbage/debris, and pests) into a single lien. The bill also makes these four sections more consistent. The IAR is NEUTRAL. House Bill 3987 was debated and approved this week over the opposition of the municipal lobby. This bill, sponsored by Senator Don Harmon and Representative Julie Hamos expands the existing Energy Efficient Commercial Building Act first enacted in 2004 to cover both commercial and residential buildings (with certain exemptions). While HB 3987 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 Association which removed our opposition. The IAR is now NEUTRAL on this measure. Various bills were approved this week in Committee to extend the term of Tax Increment Financing Districts in various municipalities- including Downs (HB 241/SB 1553), Sherman (HB 870), Steeleville (HB 1086), Morris (HB 1628), Macomb (SB 242) and Washington (SB 1277). The IAR is NEUTRAL on these bills. The House Environment and Energy Committee approved Senate Bill 1489 this week with additional language added in an amendment. This bill, sponsored by Representative Elaine Nekritz and Senator Iris Martinez, creates the Green Infrastructure for Clean Water Act. The bill directs the Illinois EPA, in conjunction with the Department of Natural Resources, the Department of Transportation and the Capital Development Board, stormwater management agencies and other interested parties, to submit a report to the General Assembly and Governor on stormwater including green infrastructure use and benefits. Also to be contemplated is the feasibility of devoting 20% of the Water Revolving Fund to green infrastructure, water and energy efficiency and other “environmentally innovative activities” on a long-term basis. The IAR is MONITORING this issue. House Bill 2005, sponsored by Senator Jacqueline Collins and Representative Andre Thapedi, received unanimous approval in the Senate Financial Institutions Committee this week. This bill was negotiated in the House with the IAR and various lending groups. Currently Illinois law provides that if a sale is held and a party entitled to receive notice does NOT receive notice, that party may ask the court to set aside the sale PROVIDED that such party guarantees or secures by bond a bid equal to the successful bid at the prior sale. This bill modifies that language to provide that no such guarantee or bond is required if the party is the mortgagor, the real estate sold is residential real estate and the mortgagor occupies the residential real estate at the time the motion is filed. The IAR is NEUTRal

State Capitol Report is distributed Fridays when the 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.

Rep. Froehlich Questioned

http://www.facebook.com/ext/share.php?sid=78934423705&h=TApOx&u=2R-c4&ref=mf

Froehlich QuestionedOver Tax Appeals
CHICAGO - Imagine a state representative knocking on your door, offering to lower your property taxes. That’s exactly what some people who spoke to Fox Chicago News say happened to them.
“[He was] just knocking on the door, introducing himself…and he said would you like my help with your property taxes,” explains Renee and Tom Walsh
Another person, Alan Szczeblowski, recalls, “He had us sign a thing that said he would get our taxes lowered.”
They’re talking about State Representative Paul Froehlich.
“He had forms and I said sure. I signed it and we wound up getting a reduction," says Tom Walsh
They also say that Froehlich asked if he could you put a campaign sign in their yard.
"I said that would be fine. I mean he did me a favor," explains Renee Walsh.
But that leads to the question, was it a savvy political move, a way to win votes, or something else?
Froehlich offered hundreds of taxpayers in Schaumburg, Elk Grove Village and Hoffman Estates a chance to reduce their taxes. Fox Chicago News obtained the names of 175 residents and businesses. Nearly everyone, 94%, won their appeal, from as little as a couple hundred bucks to six figures. How Froehlich did it is now the subject of a Cook County State's Attorney's investigation.
Judy McCurdy was Froehlich’s district office supervisor until he fired her last November. Now, she’s blowing the whistle, providing us with internal documents like a walk sheet he used to visit registered voters. There are notes connecting the tax appeals and campaign signs in his own handwriting
“What he said was these tax savings would translate to votes," says McCurdy.
When we asked Froehlich about the campaign signs he said, “Every elected official that I know of does constituent service, tries to help constituents in a variety of ways."
Those constituents included two of his major campaign contributors. Froehlich helped the owners of the Schaumburg Comfort Inn Suites and Wingate Hotel win big tax reductions. On one internal document, Froehlich does the math, calculating a third of the savings, what a tax attorney would take. Underneath he wrote, "I asked the owner of the hotel and he agreed to cover my sign bill - twelve thousand -- and provide rooms for workers in '08 and '10.
When asked about the note Froehlich replied, “I’ve never had the authority to lower anybody's assessment never. Now if I would have I’d understand your point."
But when we looked at his campaign contributions we found a payment for campaign signs.
Another handwritten note shows Froehlich calculating his own cut from the Wingate tax appeal, more than $14,000. Three weeks later, the Wingate owners began sending checks to pay for his campaign office.
They also picked up the tab for more than $8000 in hotel rooms for campaign workers in last year's election. It was Froehlich's first election after jumping to the Democratic Party and he had the Democratic power brokers behind him, including Joseph Berrios, head of the Cook County Democratic Party and head of the tax board of review. Freohlich and Berrios ran an outreach program to teach residents how to appeal their taxes.
Brendan Houlihan also sits on the tax board. He says he was excluded from the event and all of the appeals generated by Froehlich went to Berrios's staff even though Houlihan's district covers that area. Now the board has launched an investigation of hundreds of appeals filed by Froehlich and whether he was getting inside help.
"Soon we'll have some results to report but meanwhile we're under investigation there'll be more to follow soon," says Houlihan:
And the people whose taxes were reduced got a friendly letter in the mail, not from the tax board, but from Froehlich's office saying, “I'm happy to inform you the assessment appeal I worked out for you was successful