RANWC Government Affairs

2009-06-04T11:18:00.000-07:00

Illinois State Capitol Report

The Illinois House and Senate worked extremely long hours last weekend as they attempted to wrap up the 2009 spring session of the General Assembly. While much of the business DID conclude the dire financial condition of the State budget will dictate that the General Assembly reconvene later this month for further deliberations on revenue and the budget along with other issues that have not had final legislative action. This report highlights the flurry of activity that occurred up to the 1:45 a.m. adjournment on June 1, 2009. Both chambers announced that they would reconvene “at the call of the chair”.
REAL ESTATE LICENSE ACT REWRITE UPDATE
Following a series of productive meetings with Speaker Michael Madigan’s staff and our chief sponsor, Representative Kevin McCarthy, the House of Representatives overwhelmingly approved legislation on Sunday, May 31st that included the rewrite of the Real Estate License Act. Our language is now included in Senate Bill 268 which incorporates a series of measures. The bill was approved by the House Sunday evening on a roll call vote of 98-17-3 and sent back to the Senate for their concurrence. The Senate acted affirmatively to move the bill to the final passage stage but in the wee hours of June 1st the Senate adjourned with the intent of returning to Springfield later in June. The “recess” will allow the leaders of the General Assembly and the Governor to sort out the serious shortfalls in the State’s budget and the differences, not only between the parties but the chambers, on how to address the gaping budget deficit. Senator David Koehler, the chief sponsor of SB 268 in the Senate, gave us assurance that this measure would be considered when the General Assembly reconvenes later this month. It should be noted that the Real Estate License Law rewrite provisions now part of Senate Bill 268 are identical to what the Senate earlier approved as SB 1894. In addition, SB 268 also includes: Agreed language to enact limited provisions to give municipalities a priority lien for clean-up costs on abandoned property (this is language similar to the agreed language that was adopted as an amendment to HB 1195 (see below); A change to the Predatory Lending Database counseling program to add Kane, Will and Peoria counties to the program (now only applicable in Cook County). This was earlier approved in the House as HB 705. This law provides that first time homebuyers seeking loans with certain characteristics (interest only, negative amortization, points and fees in excess of 5%, prepayment penalty, ARM) must be referred to a HUD-certified counselor prior to obtaining a mortgage loan; Language requested by the community banking lobby to amend the Illinois Banking Act regarding necessary changes to ensure the continued viability of “banker’s banks” in Illinois.ILLINOIS LAND BANKING ACTAn agreement was reached in the final week of session regarding municipal liens for cleaning up abandoned property. As you’ll recall, House Bill 1195 originally granted municipalities extremely broad powers to adopt rules, regulations, and ordinances regarding “vacant and abandoned” property (which was not defined), and allowed municipalities to charge unlimited registration fees and fines regarding such properties. Following negotiations with the banking lobby, the proponents of HB 1195 (Business and Professional People for the Public Interest) worked out language that provides for a superior lien for costs of the municipality in cleaning up abandoned property, provided the municipality follows certain procedures and keeps certain records. The broad grant of authority, and the authority to impose fees and fines from the original bill, was NOT included in the compromise language. The IAR was neutral on the revised proposal, which passed the Senate, and is on concurrence in the House. As noted above, language similar to this compromise proposal was also included in the SB 268 package, which is on concurrence in the Senate. It is worth noting, since this bill originally contained the Land Banking law that IAR opposed, that the amended bill contains no references whatsoever to the establishment of land banking powers.In other action this week:LEGAL /REGULATORY/TRANSACTIONAL ISSUESFinal legislative action occurred this week as the House concurred with Senate amendments on two bills to make significant changes to Illinois law regarding electronic communication devices and cellular phones, effective January 1, 2010. House Bill 71, sponsored by Representative John D’Amico and Senator Martin Sandoval, will prohibit a person from using an electronic communication device to compose, send or read a text message while driving. The legislation has certain exceptions- such as using a device in hands free or voice-activated mode or while the vehicle is parked on a shoulder of a roadway or if the vehicle is stopped due to normal traffic being obstructed and the vehicle is either in neutral or park. House Bill 72, sponsored by Representative John D’Amico and Senator Pam Althoff, will prohibit the use of a cell phone in a school speed zone or a highway construction or maintenance zone. This new prohibition does not apply to persons working on the highway project, using a cell phone for emergency purposes, law enforcement or if using a cell phone in voice-activated mode (this latter provision added in the Senate). The IAR MONITORED these bills which have been sent to the Governor for his consideration. The House concurred with Senate action on House Bill 236 this week marking final legislative action on this bill. HB 236 changes the existing Mechanics Lien Act to require that a contractor for improvements of an owner-occupied single-family residence give the owner written notice within 10 days after recording a lien against any property of the owner. The notice is deemed served when it is sent or personally delivered. If timely notice is NOT given and, as a result, the owner suffers damages before notice is given, the lien is extinguished to the extent of the damages. The legislation stipulates that the mere recording of the lien claim is not considered damages. This new provision will not apply to subcontractors and applies to contracts entered into after the bill becomes law. IAR SUPPORTED this legislation which was sponsored by Representative Kathy Ryg and Senator Terry Link. Final action this week on Senate Bill 69, which amends the Medical Practice Act and the Optometric Practice Act regarding prohibited “fee splitting” arrangements. This bill had earlier referenced certain lease arrangements which prompted a Call to Action by the International Council of Shopping Centers but the offending language was removed and the IAR was NEUTRAL. This bill was sponsored by Senator Ira Silverstein and Representative David Miller. A duplicate bill, House Bill 496, was not advanced. Final action occurred this week on legislation creating the Community Association Manager Licensing and Disciplinary Act. Senate Bill 1579, sponsored by Senator A. J. Wilhelmi and Representative Elaine Nekritz, will 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). Among the requirements are satisfactory completion of twenty (20) classroom hours of community association management courses and an examination. Licensed real estate brokers and salespersons are exempt from the education requirement. If signed by the Governor, the legislation becomes effective July 1, 2010. HOWEVER, the licensure requirements will NOT be enforced until 12 months after the adoption of final administrative rules for this new Act. The IAR SUPPORTED this legislation which has been the subject of negotiations for years. A duplicate bill, House Bill 271 was held and is now inactive. Final legislative action occurred this week on Senate Bill 2111, an initiative of the Land Title Association related to disbursements of funds by title companies and independent escrowees. The IAR was NEUTRAL on the bill which was sponsored by Senator Don Harmon and Representative Dan Reitz. Senate Bill 2112, also sponsored by Senator Harmon and Representative Dan Reitz, also had final legislative action this week. This bill makes various changes to the Real Estate Timeshare Act including further clarification to provisions requiring that resale agents be licensed under the Real Estate License Act. The IAR SUPPORTED this legislation which has been sent to the Governor for his consideration.HOUSING/REAL ESTATE FINANCE ISSUESThe House concurred this week with Senate amendments to House Bill 4011, sending the bill to the Governor. Sponsored in the Senate by Senator Kwame Raoul, the bill amends the Residential Mortgage License Act (RMLA) with respect to Illinois’ participation in the Nationwide Mortgage Licensing System and Registry. In short, this bill establishes a comprehensive licensing and registration system for mortgage loan originators (MLOs) within the RMLA. Much of the MLO licensing language is lifted directly from the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, the federal legislation states are obligated to comply with by July 31, 2009. If a state doesn’t enact their own compliant licensing statute, HUD is charged with overseeing MLOs in that state. There are some concerns that the IAR had with some provisions of HB 4011, including the exemption language for persons performing only real estate brokerage activities in a transaction. However, the language we had concerns with was lifted verbatim from the federal legislation, and, wary of the federal mandate, the Department was reluctant to change the language, and the language remains in the bill. The Department has assured us that the issue will not be a problem upon the implementation of the program. The program has an operability date of January 1, 2011, and the IAR is planning on doing additional work on this issue prior to that date. The House concurred this week with the Senate amendments to House Bill 1142, sending the bill to the Governor for his consideration. House Bill 1142 creates the Modular Housing Buyer Protection Act to create a “state-approved” dwelling unit that must comply with applicable Illinois laws. State approved units are required to have a yellow seal displayed on either the electrical panel box or on the inside of the kitchen sink cabinet. The IAR MONITORED this legislation sponsored by Representative Mike Tryon and Senator James Clayborne. The House Judiciary I-Civil Law Committee advanced Senate Bill 177 to the House floor this week but the House did not take final action on the measure prior to the May 31, 2009 deadline and the measure is now inactive. This bill, sponsored by Senator Mattie Hunter and Representative Harry Osterman, sought to change Illinois’ Condominium Property Act related to removal of a director from a Board of Directors. The legislation stipulated that the bylaws of a condominium shall provide that any director may be removed from the Board of Directors at a special meeting of owners, called for that purpose by a two-thirds majority of those present or voting by absentee ballot. The bill also stated that all procedures governing secret ballot elections would apply. Lastly, the bill provided that a director, after notice and an opportunity for a hearing, may be suspended or removed for cause by a two-thirds majority by the Directors. The IAR was NEUTRAL. The House unanimously approved Senate Bill 1560 on Thursday, May 28th. This bill, sponsored by Senator David Koehler and Representative Jehan Gordon, provides that a deed restriction or restrictive covenant recorded after the effective date of the bill, may not prohibit or restrict the erection of an industrialized residential structure on real property. The bill further provides that a deed restriction, restrictive covenant, or agreement that applies uniformly to all homes and industrialized residential structures in a subdivision may impose the same aesthetic compatibility requirements on an industrialized residential structure in the subdivision that are applicable to all residential structures in the subdivision. The IAR was NEUTRAL on this bill that has been sent to the Governor for his consideration. No action occurred this week on Senate Bill 1933, a “shell bill” that had been sent to the House for the purpose of enacting a regulatory statute for homeowner associations. The IAR will continue to be involved in discussions on this issue, which we have conceptually SUPPORTED and have pledged to work on with both Senator A.J. Wilhelmi and House Republican Leader Tom Cross, the sponsors of the legislation, to develop a State statute.OWNER/TENANT ISSUESOn Thursday, May 28th the Illinois House overwhelmingly approved Senate Bill 1783 on a roll call vote of 102-15-0 and sent the bill back to the Senate for their concurrence. As you will recall, this is the legislation that the IAR worked on with Representatives Anthony DeLuca, Michael Zalewski, Dennis Reboletti and Senator Lou Viverito to provide an alternative to proposed legislation to permit municipalities to license and regulate landlords. The House-approved language, SUPPORTED as an alternative by the IAR, drops licensing altogether and instead would permit municipalities to enact a requirement that any lease for single or multi-family residential property include a provision or an addendum that prohibits criminal activity and provides the landlord the right to terminate the lease when the tenant(s) engage in such activity. The House version also includes an amendment to Section 9-120 provisions of Code of Civil Procedure to reduce some of the notice procedures when evicting a person for engaging in criminal activity. The original Senate sponsor, Senator Mike Jacobs, objected to the House amendments which had gutted his original bill and he filed the motion to non-concur with the language which has stalled the bill. Senator Lou Viverito has taken over Senate sponsorship of the bill. It is unclear what will be the ultimate fate of this legislation but the IAR will continue to monitor any further action on the issue and keep you informed. House Bill 621 has been sent to the Governor after both the House and Senate unanimously approved the legislation. HB 621, sponsored by Representative Mike Fortner and Senator Randy Hultgren, would permit a Township Board to also provide for the cutting of grass, the trimming of trees or bushes and the removal of nuisance bushes or trees in addition to their current authority for the cutting of weeds. This nuisance language is similar to the law approved in 2007 for municipalities. The IAR was NEUTRAL. Following extensive revisions from its introduced version, Senate Bill 1920 has been approved by both the Senate and the House. In its final form, SB 1920 amends the Mobile Home Landlord and Tenant Rights Act to create a Mobile Home and Manufactured Home Relocation Commission. The purpose of the Commission is to study the process and procedure by which a mobile/manufactured home located in a mobile/manufactured home park that is closing is relocated. The Commission is to be made up of 10 members and the legislation specifies the duties of the Commission and directs that a report be provided to the General Assembly on or before January 1, 2010. The IAR was NEUTRAL on this legislation sponsored by Senator Susan Garrett and Representative Bob Flider.ENVIRONMENTAL/HEALTH AND SAFETY ISSUESFinal action this week on legislation related to surface discharging private sewage disposal systems. House Bill 170, sponsored by Representative Michael Tryon and Senator Susan Garrett prohibits the construction or installation of a surface discharging private sewage disposal system by any person unless that person has a coverage letter under a National Pollutant Discharge Elimination System (NPDES) permit issued by the IEPA or the local public health department has a general NPDES permit issued by the IEPA and the system is covered under that permit. The sponsors purposely delayed the effective date of this bill until January 1, 2013 to give the IEPA the time to develop rules and regulations related to this issue. The IAR was NEUTRAL on the final version of this legislation. House Bill 3987, sponsored by Representative Julie Hamos and Senator Don Harmon, has been approved by both chambers after extensive negotiation over the past two sessions. The bill modifies the existing Energy Efficient Commercial Building Act (first enacted in 2004) to expand the Act to cover both commercial and residential buildings with certain exemptions. Additions, alterations, renovations or repairs to an existing building, building system or portion thereof shall comply with the Code but the unaltered portion is NOT required to comply. The legislation specifies if the energy use of the building is not increased the Code will not apply to storm windows installed over existing fenestration, glass only replacements in an existing sash and frame, existing ceiling, wall or floor cavities exposed during construction, (provided the cavities are filled with insulation) and construction where the existing roof, wall or floor is not exposed. The bill also provides that if a local government does NOT regulate energy efficient building standards that they are not required to adopt, enforce or administer the Code but if they later adopt such standards they must then comply with the Act. In those municipalities, this Act’s standards will apply to construction, renovations or additions. While the bill provides that no unit of local government may regulate energy efficient building standards for residential buildings in a manner that is LESS or MORE stringent than the standards established in this Act it does recognize and spell out specific exceptions due to existing local Codes. These include the city of Chicago; any unit of local government that has on or before May 15, 2009 adopted or incorporated by reference energy efficient building standards for residential buildings that are equivalent to or more stringent as the 2006 International Energy Conservation Code; a unit of local government that has, on or before May 15, 2009 provided to the Capital Development Board an identification of an energy efficient building code or amendment that is equivalent to or more stringent than the 2006 International Energy Conservation Code. NO unit of local government can enact any annexation ordinance or resolution or require an annexation agreement that imposes standards for residential buildings less or more stringent than the energy efficiency standards in effect at the time of construction in that unit of local government. The IAR was NEUTRAL on the bill in its final form. Legislation has been approved in both the Senate and the House to make changes to the Elevator Safety and Regulation Act. Senate Bill 149, sponsored by Senator Don Harmon and Representative Sandra Pihos, makes various changes to the Elevator Safety and Regulation Act including adding a reference to a local administrator of the Act. This is specifically done to allow a municipality or county to enter into an agreement with the Administrator (the Office of the State Fire Marshal) to operate their own elevator safety program. The bill also amends the make-up of the Elevator Safety Review Board to include a representative of an advocacy group for condominium owners. The Review Board is also specifically charged with making binding determinations regarding variances, interpretations and the installation of new technology. Certain upgrade requirements of the Act are also extended out to January 1, 2015. The IAR MONITORED this legislation. Senate Bill 1489 has been approved by both the Senate and House and will be sent to the Governor for his consideration. This bill, sponsored by Senator Iris Martinez and Representative Elaine Nekritz, 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 was NEUTRAL on this issue. A comprehensive measure amending the Public Utilities Act was approved this spring session after months of negotiation. Senate Bill 1918, sponsored by Senator Kim Lightford and Representative Bob Flider, includes provisions requiring electric utilities to establish an “on-bill financing” program for energy efficiency measures for eligible customers. An electric utility that serves more than 100,000 customers on January 1, 2009 will be required to offer an approved on-bill financing program to allow retail customers who own a residential single family home, duplex, or other residential building with 4 or less units or a condominium to borrow funds from a third party lender to purchase approved electric energy efficiency measures for installation in such home or condo without any upfront payment and to pay back such funds over time on their bill. A loan issued to a participant is the sole responsibility of the participant and the bill requires that any dispute that may arise of the loan’s terms, conditions or charges must be resolved between the participant and the lender. Importantly, the legislation includes language that provides that upon transfer of the property title for the premises at which the participant receives electric service the participant must pay in full its electric utility bill, including all amounts due under the program. The IAR participated in meetings on this legislation and was NEUTRAL on the final bill. The General Assembly adopted Senate Joint Resolution 36 this spring related to the impending capital public works program. Among the provisions of SJR 36 is the resolution that the General Assembly and the Governor should make passage of a green and sustainable comprehensive capital construction plan a top priority and that environmental health/protection and energy efficiency and sustainability ought to guide the allocation of all funds in any capital construction plan. Further SJR 36 resolves that the law require builders to adhere to sustainable building standards- including LEED standards, the Green Globes standards or construction elements with an equivalent certification. The Resolution also resolves that the State should give due consideration to new public transportation (including rail) in the interest of planning sustainable transportation and that in providing for the construction or improvement of roads that the State should prioritize the laying of fiber-optic lines. Resolutions do not have a binding effect as would a Senate or House bill. This resolution, sponsored by Senator Heather Steans and Representative Karen May, was adopted by both chambers.LAND USE/DEVELOPMENT/LOCAL GOVERNMENT ISSUESThe Senate concurred with a House amendment to Senate Bill 138, marking final action on this legislation establishing a State minimum building code for newly constructed commercial buildings in local jurisdictions that do not have an adopted minimum building code. The bill provides that after July 1, 2011 newly constructed commercial buildings in “non-building code jurisdictions” must have an inspection by a qualified inspector prior to being occupied. These inspectors must either be qualified by the State, certified by a nationally recognized building official certification organization or have filed verification of inspection experience with the State’s Capital Development Board and can also include an individual qualified by an apprentice program certified by the Bureau of Apprentice Training. This qualification requirement does not apply to local building enforcement personnel if they have registered its adopted building code with the Illinois Capital Development Board. Local governments can also establish agreements with other governmental entities to issue permits and enforce building codes and to hire third-party providers to do the inspections. The bill defines commercial building, newly constructed commercial building and specifically exempts new residential construction. This issue has been the subject of negotiations for a few years and the IAR was NEUTRAL on the negotiated proposal. The General Assembly overwhelmingly approved legislation to strengthen Illinois’ Freedom of Information Act. Senate Bill 189, sponsored by Senator Kwame Raoul and Speaker Michael Madigan contains a number of provisions including a narrowing of the number of exemptions that has allowed the withholding of otherwise public information. In addition, the legislation seeks to enhance enforcement of the Act by adding “public access counselors” and penalties for noncompliance. The bill has been sent to the Governor for his consideration. The Senate concurred this week to two House amendments to Senate Bill 414, marking final action on this legislation. Senate Bill 414, sponsored by Senator Kwame Raoul and House Majority Leader Barbara Flynn Currie, was an initiative of the Center for Neighborhood Technology. As approved, the bill directs the Department of Commerce and Economic Opportunity, the Department of Transportation and the Illinois Housing Development Authority to adopt the Housing and Transportation Affordability Index (or a substantially equivalent affordability measure) as a planning tool and for consideration for allocating funds, distributing economic incentives and siting public facilities. The legislation directs the Task Force, created under the Comprehensive Housing Planning Act, and the Interagency Coordinating Committee on Transportation to consider the Affordability Index and other measures to “create an affordability definition and policy that incorporates housing and transportation costs for Metropolitan Planning Organization Areas” and shall include both in the Annual Comprehensive Housing Plan for MPO areas. This legislation also creates the Illinois Transportation Policy Committee under the Department of Transportation Law to advise on the State’s five-year transportation plan. Each MPO is also directed to develop a regional transportation plan that shall include specified elements. Public involvement and accountability are also highlights of this legislation. The IAR was NEUTRAL on this legislation. The Senate concurred this week with the House amendment to Senate Bill 587 that added language OPPOSED by the IAR. This concurrence marked final legislative action on this measure. SB 587, sponsored by Senator Michael Frerichs and Representative Bill Black, grants counties with less than 100,000 in population that have a public building commission organized by the county seat the power to have post-secondary student housing built and maintained. The legislation was initiated for the Danville Community College. The intent is for the College to deed land to Vermilion County who will lease the housing facilities constructed by the Danville Public Building Commission. The IAR testified in OPPOSITION to this new county power, expressing the concern over this significant new power for counties granted without any input from the county’s property taxpayers. Particularly of concern since the property taxpayers will be required to pay annual property taxes for the lease of the student facilities- which will be levied without referendum. It should also be noted that Illinois law specifically denies community colleges the authority to construct dormitories or staff housing. Both chambers have taken final action on legislation to grant limited quick-take eminent domain powers to the village of Johnsburg (located in McHenry County). Senate Bill 1296, sponsored by Senator Pam Althoff and Representative Mike Tryon, authorizes the use of this power for no more than one year for two parcels for the purpose of constructing a METRA rail station and rail storage yard. The IAR was NEUTRAL. Senate Bill 1511, sponsored by Senator David Koehler and Representative Jehan Gordon, has been approved by both the Senate and the House. The bill will clarify that a county board is permitted to require that an occupancy permit be obtained for newly constructed residential dwellings outside the corporate limits of a municipality. If a county enacts this provision after the effective date of this bill they will NOT be permitted to impose a fee for the permit. Fees currently imposed are grandfathered. The IAR was NEUTRAL on this legislation initiated by Peoria County. Final legislation action this week on Senate Bill 1784, sponsored by Senator Mike Jacobs and Representative Jim Sacia. This bill creates a new Act- the Upper Mississippi River International Port District Act- a new economic development tool for the Carroll and Jo Daviess County area. This will allow the development of channels, harbors, river ports and port-related facilities and services, airports, airfields and terminals. While the legislation grants eminent domain powers any such power must be exercised in accordance with the Eminent Domain Act. The IAR was NEUTRAL on this measure which has been sent to the Governor for his consideration. Senate Bill 1909, sponsored by Senate Majority Leader James Clayborne and Representative Tom Holbrook, received final legislative approval in the early hours of June 1st. This legislation, known as the STAR Bonds Financing Act, is based on a development incentive used in Kansas City. The legislation allows the use of both State and local sales tax revenue collected in the development to be used to pay off the STAR (Sales TAx Revenue) bonds. The estimated $1.5 billion development is targeted for property in Glen Carbon, Illinois. The proponents indicated that the project would create 10,000 construction jobs and over 3,000 permanent jobs. The IAR was NEUTRAL.TAX ISSUES/STATE BUDGETThe Senate, in a close roll call vote taken on May 30th, approved a significant revenue proposal that sought to address both the shortfalls in the overall State budget and education funding (31-27-1). House Bill 174, co-sponsored by Senate President John Cullerton and Senator James Meeks, would enact a permanent income tax increase. The proposal would raise the individual rate from the current 3% to 5% (a 67% increase) and the corporate tax rate from 4.8% to 5%. This proposal also included an expansion of the sales tax base to cover specific services. The legislation used the service categories from the 1997 North American Industry Classification System Manual (prepared by the US OMB) would include the following services:-Other warehousing and storage (household and specialty goods)-Travel agent services-Carpet and upholstery cleaning services-Dating services-Dry cleaning and laundry, except coin-operated-Laundry and dry cleaning, coin-operated-Consumer goods rental-Health clubs, tanning parlors, reducing salons-Linen supply-Interior design services-Other business services, including copy shops-Bowling centers-Coin operated video games and pinball machines-Memberships in private clubs-Admission to spectator sports (excluding horse tracks)-Admission to cultural events-Billiard parlors-Scenic and sightseeing transportation-Taxi and Limo services-Unscheduled chartered passenger air transportation-Motion picture theaters, except drive-in theaters-Pet grooming-Landscaping services (including lawn care)-Income from intrastate transportation of persons-Mini-storage-Household goods storage-Cold storage-Marina Service (docking, storage, cleaning, repair)-Marine towing service (including tugboats)-Gift and package wrapping service-Other services to buildings and dwellings-Water softening and conditioning-Internet Service Providers-Short term auto rental-Information services-Amusement park admission and rides-Circuses and fairs- admission and games-Cable and other program distribution -Rental of video tapes for home viewingThe House never called this proposal for a vote- opting to vote on a different income tax proposal promoted by Governor Quinn. This bill, Senate Bill 2252, would enact a two year temporary increase in both the individual rate (3% to 4.5%) and the corporate rate (4.8% to 7.2%). This bill did NOT include the sales tax expansion on services- which is very controversial in the House. This measure FAILED on a roll call vote of 42-74-2.Late in the session both chambers voted to authorize, once again, a sweep of various dedicated funds. The Senate concurred with the House and voted to authorize the sweep of over $356 million from dedicated funds, including $1,081,000 from the Real Estate Research and Education Fund and $1,200 from the Real Estate Audit Fund. There were NO funds taken from the Real Estate License Administration Fund. In all likelihood this is due to the fact that the IAR filed a lawsuit in Sangamon County in 2006 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 and an opportunity for the underlying case to be heard by the court. House Bill 441, sponsored by Representative Chuck Jefferson and Senator Dave Syverson, was approved by the Senate this week marking final legislative action. This bill amends the Industrial Jobs Recovery Law in the Illinois Municipal Code to allow a redevelopment area in Rockford to be extended for an additional five years. The bill has been sent to the Governor for his consideration. The IAR was NEUTRAL on this bill. The House concurred with the Senate version of House Bill 2394 this week marking final legislative action. HB 2394, sponsored by Representative Mark Walker and Senator Dan Kotowski, amends the TIF law to specify that a redevelopment project area may include areas within ½ mile radius of an existing or proposed RTA Suburban Transit Access Route station without a finding that the area is classified as an industrial park conservation area, a conservation area or a blighted area. However, the municipality must receive the unanimous consent of the TIF joint review board. The redevelopment project costs are specifically limited to the costs related to the existing or proposed station. The IAR was NEUTRAL on this measure which has been sent to the Governor. The House also concurred this week to the Senate amendment to House Bill 4120. House Bill 4120, sponsored by Representative Mark Walker and Senator Dan Kotowski, will allow any taxing district, upon a majority vote of its governing body, to abate any portion of property taxes if a new business first occupies a facility located on the property during the taxable year and the facility was vacant for a period of at least 24 continuous months prior to being occupied by the business. The Senate had modified the original bill to provide that the abatement cannot exceed a TWO-year period (as introduced it was five) and the aggregate amount of abated taxes for all taxing districts cannot exceed $4 million. The IAR SUPPORTS this legislation which has been sent to the Governor. The Senate concurred this week to a House amendment on Senate Bill 1553, marking final legislative action on this bill. Senate Bill 1553, sponsored by Senator Dan Rutherford and Representative Keith Sommer, extends the terms of TIF districts in the city of Pontiac and the village of Downs. The IAR was NEUTRAL on this measure. The House approved Senate Bill 1825 this week that provides that on or before October 1, 2009, the county assessor of Madison County, Monroe County, and St. Clair County are required to reassess all property in the county at 33 1/3% of the fair cash value of the property, as determined by the Department's sales ratio studies for the most recent year preceding the assessment year. The Senate Revenue Committee recommended that the full Senate concur with this proposal but the full Senate has not, to date, acted upon the bill. The bill is sponsored by Representative Tom Holbrook and Senate Majority Leader James Clayborne. The IAR was NEUTRAL. There was also final legislative action this week on Senate Bill 1975 which amends the Illinois Income Tax Act’s definition of "captive real estate investment trusts". The legislation clarifies that to be a captive real estate investment trust, at least 50% of the voting power must be controlled by a single corporation (now, controlled by a single person). The legislation also exempts from the definition certain real estate investment trusts that are owned and controlled by certain entities that are organized outside of the laws of the United States. The IAR MONITORED this legislation sponsored by Senator Don Harmon and Representative John Bradley.

Illinois Association of REALTORS® 522 South Fifth Street Springfield, IL 62701Ph. 217/529-2600 FAX 217/529-3904 www.illinoisrealtor.org iarnews@iar.orgState 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.

Homebuyer Tax Credit

2009-05-21T11:56:00.001-07:00

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

2009-05-06T15:55:00.000-07:00

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

2009-05-06T15:51:00.000-07:00

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

Springfield Update

2008-11-24T09:01:00.001-08:00

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.

Springfield Update

2008-11-07T10:41:00.000-08:00

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.

President Signs Housing Bill

2008-07-30T08:15:00.000-07:00

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.

HR 3221

2008-07-28T17:25:00.001-07:00

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

Springfield Update

2008-07-18T12:22:00.000-07:00

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.

Springfield Update

2008-07-14T08:23:00.001-07:00

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.

Springfield Update

2008-06-05T20:03:00.001-07:00

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

Congresswoman Battles Foreclosure

2008-05-29T11:48:00.001-07:00

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.

Springfield Update

2008-05-24T08:37:00.000-07:00

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.

Springfield Update

2008-05-05T10:51:00.001-07:00

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.

IAR Springfield Update

2008-04-21T09:56:00.000-07:00

“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.

Meet 85'Chicago Bears Super Bowl Champ Otis Wilson

2008-04-11T12:46:00.000-07:00

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

2008-04-11T12:43:00.001-07:00

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.
-
- 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

2008-04-11T08:25:00.000-07:00

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.

Subscribe to Economy

feed://rss.cnn.com/rss/money_news_economy.rss
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
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

IAR Quorum Call

2008-04-07T07:38:00.000-07:00

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.

Housing Secretary Quits

2008-03-31T14:22:00.001-07:00

Under Pressure, Housing Secretary Quits
By MARCY GORDON,
AP
Posted: 2008-03-31 10:53:42
Filed Under: Business News, Politics News
WASHINGTON (March 31) - The Bush administration's top housing official, under criminal investigation and intense pressure from Democratic critics, announced Monday he is quitting.Housing and Urban Development Secretary Alphonso Jackson said his resignation will take effect on April 18. The move comes at a shaky time for the economy and the Bush administration, as the housing industry's crisis has imperiled the nation's credit markets and led to a major economic slowdown.Jackson, 62, has been fending off allegations of cronyism and favoritism involving HUD contractors for the past two years. The FBI has been examining the ties between Jackson and a friend who was paid $392,000 by Jackson's department as a construction manager in New Orleans after Hurricane Katrina.The HUD chief made no direct mention of that in his resignation statement. Explaining his move, he said: "There comes a time when one must attend more diligently to personal and family matters. Now is such a time for me."He did not take questions or elaborate on the family reasons he cited for the decision. The group assembled to hear Jackson's statement applauded and he left the room.Jackson has a friendship with President Bush that dates to the late 1980s, when they lived in the same Dallas neighborhood. He was the first black leader of the housing authority in Dallas and president of American Electric Power-TEXAS in Austin.On Monday, Jackson said he has spent more than 30 years of his life improving housing opportunities for all Americans regardless of income or race."My life's work has been to build better communities that families are proud to call home," the embattled housing director said.Jackson said he is staying on three more weeks to ensure an orderly transition of the leadership of HUD.His statement offered an upbeat review of his own record.He said he and his team at the housing agency had helped families keep their homes, reduced chronic homelessness and "transformed public housing."A week ago, Democratic Sens. Patty Murray of Washington state and Christopher Dodd of Connecticut said that Jackson's problems represented a "worsening distraction" at HUD at a time when the nation needs a credible housing secretary who is beyond suspicion.When the existence of the criminal probe against Jackson was revealed in October, the White House said President Bush supports Jackson and that Jackson "expects that the investigation will clearly establish that he did nothing improper or unethical."In another controversy, the housing authority in Philadelphia has filed a lawsuit alleging that Jackson tried to punish the agency for nixing a deal involving music-producer-turned-developer Kenny Gamble, a friend of Jackson.At a congressional hearing this month, Jackson repeatedly refused to answer questions about the Philadelphia redevelopment deal.Last year, the inspector general at Jackson's department found what it called "some problematic instances" involving HUD contracts and grants, including Jackson's opposition to money for a contractor whose executives donated exclusively to Democratic candidates.The HUD IG found that Jackson blocked the money "for a significant period of time." Jackson blamed his own aides for the delay.In 2006, Jackson triggered the IG inquiry when he said publicly that he revoked a contract because the applicant who thanked him said he did not like President Bush.Jackson later told the IG's investigators that "I lied" when he made the remark about taking back the contract.Associated Press writers Ben Feller, Hope Yen, Pete Yost and Devlin Barrett also contributed to this report.
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.
2008-03-31 06:43:50

IAR Quorum Call

2008-03-10T09:03:00.000-07:00

Illinois Association of REALTORS
Quorum Call Week in Review
March 7, 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.

“Democracy is the only system that persists in asking the powers that be whether they are the powers that ought to be.”

~Sydney J. Harris

- Both Senate 571 and House Bill 5358, containing the changes to the Real Estate License Law and SUPPORTED by the IAR remained in the House Rules Committee this week but the IAR is meeting with leadership to urge that this important legislation be considered this spring session. As you know, the changes update the License Law, and include a variety of definitional, educational and technical changes. A summary of Senate Bill 571/House Bill 5358 is available at the IAR Action Center (www.iaractioncenter.org). The bills are also supported by the Illinois Department of Financial and Professional Regulation.

- NO ACTION occurred this week on HB 4313, an initiative of a group called the “Homeowners Club of America” (HCA), that seeks to amend Section 10-15 of the Real Estate License Act to prohibit a real estate licensee from paying a cash rebate, cash gift, or cash prize to an unlicensed person who is a party to a contract to buy or sell real estate. The IAR remains strongly OPPOSED to this legislation which is anti-competitive and anti-consumer. This bill has also drawn the ire of the U.S. Department of Justice. The bill is sponsored by Representative Bob Molaro (D-21, Chicago) and Skip Saviano (R-77, Elmwood Park). It should be noted that Representative Franco Coladipietro, a member of the House Judiciary I- Civil Law Committee, REMOVED his name as a co-sponsor of the bill on Thursday, March 6th. The IAR applauds his action. Next week is the House committee hearing deadline- should the sponsor not call the bill in the House Judiciary I-Civil Law Committee next week it would be dead for the 2008 session. PLEASE CONTINUE TO CONTACT YOUR LEGISLATORS TO URGE THE REJECTION OF THIS LEGISLATION! Key are the members of the House Judiciary I- Civil Law Committee:
Rep. John Fritchey, Chairman (D-Chicago)
773/871-4000 or 217/782-2458
mystaterep@aol.com
Rep. John Bradley, Vice Chairman (D-Marion)
618/997-9697 or 217/782-1051
repjohnbradley@mychoice.net
Rep. Chapin Rose, Minority Spokesman (R-Mahomet)
217/348-7673 or 217/558-1006
chapin@chapinrose.com
Rep. Jim Brosnahan (D-Evergreen Park)
708/499-2810 or 217/0515
jdbrosnahan@aol.com
Rep. Franco Coladipietro (R-Bloomingdale)
630/582-0045 or 217/782-8158
franco@il45.com
Rep. Joe Dunn (R-Naperville)
630/355-4113 or 217/782-6507
joe@josephdunn.com
Rep. Careen Gordon (D-Coal City)
815/634-3096 or 217/782-5997
gordonca@ilga.gov
Rep. Julie Hamos (D-Evanston)
847/424-9898 or 217/782-8052
Julie@juliehamos.org
Rep. Jay Hoffman (D-Collinsville)
618/345-2176 or 217/782-8018
jayhoffman@charter.net
Rep. Lou Lang (D-Skokie)
847/673-1131 or 217/782-1252
reploulang@aol.com
Rep. Sid Mathias (R-Buffalo Grove)
847/222-0061 or 217/782-1664
sidneymath@msn.com
Rep. Elaine Nekritz (D-Northbrook)
847/257-0450 or 217/558-1004
enekritz@repnekritz.org
Rep. Joann Osmond (R-Antioch)
847/838-6200 or 217/8151
reposmond@aol.com
Rep. Ron Wait (R-Belvidere)
815/547-7771 or 217/782-0548
repwait777@aol.com

- On Wednesday afternoon, the House Housing and Urban Development Committee narrowly approved House Bill 5170 on a partisan roll call vote of 5-2-1. This measure, STRONGLY OPPOSED by the IAR, creates the Relocation Assistance Act to require a landlord to provide displaced tenants $2,000 or 3 times the monthly rent (whichever is greater) if a municipality has notified the landlord that a dwelling unit will be condemned or will be unlawful to occupy. The measure mandates this assistance plus any paid security deposit, any interest on the security deposit and any prepaid rent to be paid within 7 days of receiving notice from the local government. The bill, sponsored by Representative Harry Osterman, targets landlords but fails to adequately address situations where conditions were caused by one or more tenants. Another serious concern is that the measure has no procedural due process built into the Act. We believe that current law has substantial provisions to address unsafe buildings. The Illinois Municipal Code grants a municipality the ability to seek an injunction requiring compliance with health and safety standards and the courts have broad discretion to secure such compliance. The Illinois law further requires hearings on these suits to be expedited by the court and gives them precedence over all other actions. This bill is pending in the House.

- The House Judiciary I- Civil Law Committee approved a number of bills on Wednesday. House Bill 4616, sponsored by Representative Mike Smith, adds a provision to the seller disclosure law to provide that a seller must indicate if they are aware that the property has been used for the production of methamphetamine. The IAR is NEUTRAL on this bill. House Bill 4999, sponsored by Representative Karen May, enacts provisions related to advertising by sending unsolicited faxes. The legislation mirrors existing federal law. An additional amendment has been filed to include provisions (also in federal law) regarding sending such information to a recipient with which the sender has an established business relationship which must include an opt-out toll free number. The IAR continues to review the legislation to ensure no additional or contradictory requirements have been added to the Illinois law. House Bill 5572, sponsored by Representative Kathy Ryg, will require a contractor for improvements of an owner-occupied single-family residence to give the owner written notice before filing a lien against any property of the owner. This bill is SUPPORTED by IAR. House Bill 5672, an initiative of the Cook County Sheriff sponsored by Representative Karen Yarbrough, amends the Code of Civil Procedure to require a party pursuing an eviction or foreclosure action in Cook County to list the names and ages of all known occupants including any child under the age of 14, any senior citizen over 65 and any person living in the dwelling with a disability. The bill is intended to assist the Sheriff to link individuals with social services. The members of the Committee indicated that further refinements were needed in the proposal and the sponsor indicated that she was continuing to work on the measure.

- On Tuesday, the House Fire Protection Committee approved House Bill 4683 and sent the bill to the full House for further consideration. This bill, sponsored by Representative Elaine Nekritz, creates the Fire and Life Safety Device Act to prohibit the manufacture, installation or sale of any “fake” smoke detector, sprinkler head, carbon monoxide alarm, and heat detector or any other similar life safety or fire protection device. The bill establishes penalties and permits inspection of the devices to ensure compliance with the Act. The IAR and the associations representing architects and the professional engineers continue to work with the sponsor to ensure that the bill does not have unintended provisions. The IAR is specifically reviewing the inspection provisions.

- On Tuesday, the House approved House Bill 4201 on a roll call vote of 107-1-1. The bill extends the term of the TIF in the Village of Downs by nine years. The bill has been sent to the Senate for their consideration. This bill is sponsored by Representative Keith Sommer and Senator Dan Rutherford. The IAR is NEUTRAL on this legislation.

- On Wednesday, the Senate Local Government Committee took action on two bills introduced by Senator Mike Noland at the request of the associations representing fire protection districts and fire departments. Senate Bill 2743 seeks to add a formula for the payment of costs to a fire protection district when a TIF is created. Currently a formula exists for certain TIF redevelopments for schools and libraries. The measure was opposed by the municipal lobby and the sponsor indicated that he would continue to work on the measure. Many members of the Committee expressed concern with the bill but agreed that the bill could advance to the floor to allow discussions to continue. The IAR will continue to MONITOR this legislation. Senate Bill 2745 would authorize all municipalities and fire protection districts that contain, in whole or in part, a university, college, or community college or that has a university, college, or community college within one mile of the boundaries of the municipality or fire protection district to inspect any rental property to ensure compliance with the fire and life safety codes. The IAR expressed its OPPOSITION to the bill which was advanced with the agreement that the sponsor would continue to work with the various parties.

- The House Registration and Regulation Committee advanced House Bill 5067 to the full House with the agreement that negotiations would continue between the appraisers, the financial lobby and the IAR. This bill, sponsored by Representative Skip Saviano, is the rewrite of the Real Estate Appraiser Licensing Act. The IAR has been in discussion with the sponsor and the appraiser group and will continue to seek resolution of our concerns. Also approved by the Committee was House Bill 5073 which made revisions to several regulatory acts, including clean-up provisions in the Auction License Act. The IAR is NEUTRAL on this bill.

- The House Housing and Urban Development Committee approved House Bill 5238 to permit the Chicago Housing Authority 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 developer in the rehabilitation and development or ownership, or both development and ownership, of low-income and mixed-income rental and for-sale housing. The IAR is NEUTRAL on this bill.

- The House Local Government Committee approved two measures of interest to IAR on Wednesday. House Bill 5282, sponsored by Representative Chuck Jefferson, was an initiative of the city of Rockford to add language to the Municipal Code related to nuisances. However, the IAR believes that the language is unnecessary and duplicative of current law. The sponsor is unlikely to move the bill on the floor. Another measure, House Bill 4545 sponsored by Representative Aaron Schock, is a companion bill to Senate Bill 2033. Both create a new section within the Counties Code to grant authority to Peoria County to create a stormwater management committee. The county board is authorized to impose fees (cannot exceed the cost of satisfying onsite stormwater retention or detention requirements) and 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 can also issue general obligation bonds for implementing a stormwater plan. The IAR is NEUTRAL on both measures.

- On Thursday, the Senate Revenue Committee approved Senate Bill 2298 and sent the bill to the full Senate for further consideration. This bill, sponsored by Senator Mike Jacobs, extends the life of the TIFs in the village of Milan and the city of West Frankfort. The IAR is NEUTRAL.

- Senate Bill 2820, sponsored by Senator Michael Bond was also approved on Thursday in the Senate Revenue Committee. This measure SUPPORTED by the IAR will greatly enhance the information provided to residential property taxpayers regarding the assessment of their property and rules and regulations for appealing an assessment. Each chief county assessment officer (except in Cook County) would be required to provide a Homestead Assessment Disclosure Document each year with specified information. The board of review must also provide detailed information when a complaint is filed. While the legislation specifically exempted Cook County Senator Matt Murphy, a member of the Committee from Palatine urged the sponsor to review the bill and determine if certain elements could be incorporated for Cook County as well.

- The House Personnel and Pensions Committee heard testimony on House Bill 4905, an initiative of the Illinois Municipal League to require a detailed analysis of how various pension bills for police and fire personnel impact municipal budgets. The analysis would be done by the General Assembly’s Commission on Government Forecasting and Accountability. The IAR is currently reviewing this proposal since many municipalities face significant budget problems due to police and fire pensions- paid for by property tax proceeds.

- This week the House Executive Committee unanimously approved HJR111, sponsored by Representative John Fritchey. The joint resolution creates “The Joint Committee for the Constitutional Convention Proposal” and directs the Committee to prepare the materials related to the question of calling a constitutional convention that is required to be on the November 2008 ballot. The Committee is to be made up of members of the General Assembly- 2 members each appointed by the Speaker, House Minority Leader, President, and the Senate Minority Leader.

- Also this week the House State Government Administration Committee unanimously approved HJRCA 28 which seeks to amend the Suffrage and Elections Article of the Illinois Constitution to allow for recall elections for the State executive branch officers, members of the General Assembly, and judges of the Supreme, Appellate, and Circuit courts. For this constitutional amendment to be placed on the ballot, both the House and Senate must approve this joint resolution by an extraordinary 3/5 vote. The question would then be placed before the voters and for it to take effect; it must be approved by either 3/5 of those voting on the question or a majority of those voting in the election.

- The General Assembly is scheduled to be in session next week Tuesday, March 11-Thursday, March 13th. Thursday marks the deadline date for the consideration of bills in committee.

- Senator Sieben, a well-liked and effective legislator who has served in the Illinois State Senate since 1993 and served in the Illinois House of Representatives prior to his election to the Senate (1987-1993) has decided to retire early and has resigned from the Senate. The IAR extends our well wishes to Senator Sieben- we will miss him! Senator Sieben had earlier announced he would not seek re-election in 2008. Tim Bivins, a Republican from Dixon who won the February 5, 2008 Republican primary for the open seat in the 45th Senate District is expected to be selected to fill the vacancy.

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.

Home Foreclosures Bring Gloom to Many

2008-03-07T13:05:00.000-08:00

From CBS 2 Chicago

http://cbs2chicago.com/video?id=42865@wbbm.dayport.com&cid=48

IAR Quorum Call

2008-03-03T11:16:00.000-08:00

Illinois Association of REALTORS
Quorum Call Week in Review
February 29, 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.

“I’m tired of hearing it said that democracy doesn’t work. Of course it doesn’t work. We are supposed to work it.”

~Alexander Woollcott

- Despite the snowy weather hundreds of Illinois REALTORS convened at the Illinois Capitol in Springfield on Tuesday, February 26, 2008, for the 32nd annual IAR Capitol Conference. Our lobby day offers members an opportunity to become part of the legislative process and to become informed about the top issues that will be pursued this spring session. A legislative briefing was held at the Howlett Building, followed by visits to legislative offices to discuss the top IAR legislative initiative to make various changes to the Real Estate License Act that include increasing salesperson pre-license education hours from 45 to 90 (SB 571 and HB 5358). Other issues discussed include OPPOSITION to HB 4313 (discussed below) and to a proposal for a statewide real estate transfer tax increase (SB 2759) of nearly $99 million, creating an unnecessary and unwise tax increase on homeowners, farms and businesses. A reception at the new IAR Headquarters ended the day. You can download materials from the lobby day at the IAR Action Center. THANKS TO ALL WHO MADE THIS DAY SUCH A HUGE SUCCESS!

- Both Senate 571 and House Bill 5358, contain the changes to the Real Estate License Law SUPPORTED by the IAR remain in the House Rules Committee. The sponsors of the measures and the IAR continue to work for the release of the bills for consideration this spring session. As you know, the changes update the License Law, and include a variety of definitional changes, educational changes and technical changes. A summary of Senate Bill 571/House Bill 5358 is available at the IAR Action Center (www.iaractioncenter.org). The bill is also supported by the Illinois Department of Financial and Professional Regulation.

- NO ACTION occurred this week on HB 4313, an initiative of a group called the “Homeowners Club of America” (HCA), that seeks to amend Section 10-15 of the Real Estate License Act to prohibit a real estate licensee from paying a cash rebate, cash gift, or cash prize to an unlicensed person who is a party to a contract to buy or sell real estate. The IAR remains strongly OPPOSED to this legislation which is sponsored by Representative Bob Molaro (D-21, Chicago). The bill remains in the House Judiciary I- Civil Law Committee. PLEASE CONTINUE TO CONTACT YOUR LEGISLATORS TO URGE THE REJECTION OF THIS LEGISLATION!

- On Wednesday afternoon the Senate Education Committee held an extensive hearing on SB 2288, the latest education funding reform/property tax relief proposal. The bill, co-sponsored by Senators James Meeks and John Cullerton, was acknowledged to be a work in progress as both Democratic Senators pledged to work with their Republican colleagues to advance a bill with sufficient votes to override a likely gubernatorial veto. The bill would increase individual income tax rates from 3% to 5% (projected to raise $6.2 billion) and an increase in the corporate income tax rate from 4.8% to 8% (projected to raise $1.0 billion). The Senators indicated in testimony that among the items to be funded would be enhanced State funding for education, $2.9 billion in property tax relief, $1 billion debt service for bonding capital improvement projects throughout the State and significant funding for the huge pension obligations and other State debts. In addition, the Senators indicated that the enactment of various education reforms would be part of a final bill. All agree that the debate will continue throughout the spring session. SB 2288 was advanced out of the Senate Education Committee on a vote of 6-3-1 and is now pending on the Senate floor. Another bill, HB 750 (Miller) which has many of the same components BUT also includes the controversial sales tax extension for certain services, is pending in the House.

- Also on Wednesday afternoon, the House Housing and Urban Development Committee discussed and advanced House Bill 4352. This bill, sponsored by Representative Naomi Jakobsson, initially provided sweeping new notification requirements for landlords to enter the tenant’s premises. The sponsor amended the bill to reflect some concerns of the IAR and the Chicagoland Apartment Association. While the bill was advanced out of the Committee, a commitment was made to continue negotiations in an effort to reach a consensus.

- On Thursday, the Senate Housing and Community Affairs Committee advanced Senate Bill 1979 to the full Senate for further consideration. SB 1979, sponsored by Senator Rickey Hendon, creates the Illinois Homeowner’s Emergency Assistance Program Act and directs the Illinois Housing Development Authority to implement a program to provide grants to eligible Illinois residents facing foreclosure. The IAR testified at the hearing and pledged to work with the sponsor and other interested parties on refining the legislation.

- On Thursday, the Senate Local Government Committee approved Senate Bill 2033, as amended. The legislation creates a new section within the Counties Code to grant authority to Peoria County to create a stormwater management committee. Under the new section, 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. The IAR is NEUTRAL on this measure which has been considered in prior legislative sessions. The bill is now pending before the full Senate.

- The House is scheduled to be in session next week Tuesday, March 4-Thursday, March 6th. The Senate is scheduled Wednesday, March 5-Thursday, March 6th. The Senate and House Committees will continue to meet next week as the deadline dates for final committee action loom.

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.

Captiol Conference Update

2008-02-22T07:23:00.000-08:00

For those of you attending the the Capitol Conference Bus Trip the morning meeting location as changed. You will now meet at 7:20am at Our Saviours Church north of the RANWC office building at the corner of Arlington Heights Rd. & Olive. You will leave your cars at that location and board the bus there.

More on Chicago Transfer Tax

2008-02-22T07:22:00.000-08:00

Incomplete real estate deals may qualify for Chicago transfer tax
Associated Press
Published: 2/19/2008 7:15 AM
Chicago officials are looking to increase the number of people who pay a real estate transfer tax and to require others to pay it more quickly.
The Chicago City Council earlier this month approved a 40 percent increase in the transfer tax as part of a Chicago Transit Authority rescue package.
Under one proposal now in draft form, the city would require the transfer tax to be paid even when the buyer forfeits the down payment, which happens when a buyer backs out of a deal. Another proposal would require immediate payment when there is a contract in which the buyer make installment payments and don't receive title to the property until the last payment.
The transfer tax rises April 1. It generated $206.8 million last year. The new revenue is earmarked for CTA employee pension and health-care costs.

State offers help with housing debt woes

2008-02-15T09:32:00.000-08:00

From the Chicago Sun Times

February 15, 2008
By Sun-Times staff
Homeowners at risk of losing their homes due to the tightening credit market may find assistance in a new statewide Housing Assistance Initiative.
Gov. Blagojevich Thursday unveiled the program that features three key elements:
• Access to a new $200 million fund -- financed by four mortgage lenders -- to help homeowners refinance existing high-cost debt into more affordable, stable loans.
• Access to a statewide financial counseling network that is affiliated with the National Homeownership Foundation hotline (888-995-4673).
• Access to a mortgage-fraud service also connected to the hotline.

President Bush Signs Economic Stimulus Act of 2008

2008-02-14T07:37:00.001-08:00

President Bush signed the Economic Stimulus package into law. Last week, Congress gave overwhelming final approval to the Economic Stimulus Package supported by NAR and REALTORS® across the country. As a result, the government will be sending payments to most American households and grant tax incentives for business investment.
The legislation includes the requested GSE and FHA limit increases strongly backed and lobbied by NAR. The increased GSE loan limits means borrowers will see immediate relief with new liquidity in the mortgage market and the nation will see an additional 300,000 home sales. The increased FHA loan limits means an additional 138,000 Americans will purchase homes, and with the needed FHA reforms means 200,000 families can refinance their homes safely and affordably.
Thank you for your efforts. Over 85,000 REALTORS® contacted the Senate on this issue, and together you made a significant difference.

Governor to Act on Transit Bill

2008-01-10T20:12:00.000-08:00

As you know IAR(Illinois Association of REALTORS) has been working hard the last several months in opposition to the real estate tax increase which has been part of the proposed bailout for mass transit. Both the House and Senate approved a long-term mass transit funding bill today. The Governor has vowed to support the bill while using his amendatory veto authority to make sure senior citizens can use public transportation for free.

The bill increases sales and real estate taxes in the Chicago area by more than $500 million for the Regional Transportation Authority, which includes CTA and the suburban PACE bus system.

Here are some links with more information.

http://www.chicagotribune.com/news/local/chi-legis_11_webjan11,1,1176332.story?track=rss&ctrack=1&cset=true

http://www.suntimes.com/news/metro/735936,ctaupdate011008.article

http://thecapitolfaxblog.com/2008/01/10/this-just-in-95/

railway plan met with protests

2008-01-10T10:46:00.000-08:00

From the Daily Herald

The protest signs were indication enough that Barrington-area residents aren't welcoming the prospect of more freight trains with open arms.
Hundreds jammed the Makray Memorial Golf Club in Barrington this afternoon to comment on the Canadian National Railway's plans to purchase the Elgin, Joliet and Eastern railroad.
CN's planned $300 million acquisition of the EJ&E, which runs from Wauconda to Gary, Ind., through Lake, Cook, DuPage and Will counties, still needs approval from the U.S. Surface Transportation Board. Wednesday, federal regulators held the second of seven forums to hear community reaction to the plan.
CN intends to move freight trains from some of its more congested lines to the EJ&E. Overall, the changes mean 34 towns will see more freights and 80 will see fewer.
In Barrington, where 15 more trains a day could rumble through town, "there's no positives to this whole thing," said Deer Park resident Priscilla Roder, who left the meeting with a lawn sign protesting the move.
Good Shepherd Hospital physicians added their concerns, saying that more freights at crossings could delay ambulances and cost valuable time in the crucial "golden hour" right after someone falls ill or is injured.
"Every minute that someone's heart isn't beating reduces their ability to survive 10 percent," said physician Joseph Giangrasso, medical director for the emergency department at the Lake Barrington hospital.
U.S. Rep. Don Manzullo also showed up at the forum to deliver a formal objection.
For McHenry County residents who rely on already congested roads such as Route 14 to reach their jobs, "the addition of freight trains will back up traffic even more," the Egan Republican said.
Trains using the EJ&E could be about 8,000 feet long and travel at speeds of about 40 mph, CN said. The average time it takes to get through a crossing is about five minutes.
The railroad maintains that the region will benefit as a whole by moving freights to the EJ&E, with traffic going down significantly in areas such as Chicago and Des Plaines.
"We're committed to addressing the impact as best we can. It's in our interests to come up with solutions," CN senior counsel Theodore Kalick said.
A second Barrington hearing on the changes was scheduled later the same day at the same location.
The EJ&E tracks also were intended to be a crucial part of the STAR Line, a proposed Metra rail service connecting Cook, DuPage and Will counties.
CN doesn't want STAR Line trains to piggyback on the EJ&E, although officials said Metra is welcome to build additional track alongside.
"That's a double whammy," Manzullo stated, adding new track costs are prohibitive.
The Surface Transportation Board will hold another hearing Jan. 17 in West Chicago.

Another Transit Deal Come Apart

2008-01-10T10:44:00.001-08:00

From the Daily Herald

SPRINGFIELD - Doomsday for Chicago-area bus and train agencies drew another day closer after an apparent deal for a state bailout fell through Wednesday.
The Illinois Senate rejected a plan late Wednesday that would have raised suburban sales taxes and a Chicago real estate transfer tax to provide millions for the transit agencies. Earlier in the day, the House had approved a nearly identical plan.
The House also approved Wednesday taking the state's portion of the sales tax on gasoline in Chicago and the suburbs and sending it to the transit agencies. But that deal had little support in the Illinois Senate.
If a state bailout isn't approved by Jan. 20, transit officials said they'll raise fares, cut routes and layoff hundreds.
This issue has lingered in the General Assembly for months. Gov. Rod Blagojevich has both called for quick action but also threatened to veto the plan that relies on sales taxes.
Blagojevich had a video monitor erected outside his Capitol office, and throughout Wednesday it played taped testimonials from Chicago-area transit riders, urging lawmakers to act.
State Sen. Rickey Hendon, a Chicago Democrat who sponsored the bailout, said he believed Blagojevich would sign the sales tax plan if lawmakers could get it to his desk.
A Blagojevich spokeswoman begged to differ.
"Nothing about the governor's position has changed," said spokeswoman Rebecca Rausch.
Wednesday's rejection also deals a blow to DuPage and possibly other suburban counties. The transit bailout was based on a quarter percentage point sales tax increase, but the same plan would have given those counties the authority to approve their own quarter point sales tax increase to fund transportation or public safety issues.
That provision was inserted at the request of DuPage County Board Chairman Robert Schillerstrom, whose county is facing its own financial crunch and has repeatedly, but so far unsuccessfully, turned to lawmakers for help.
"I thought at least the suburban Republicans would have support of it," said Senate President Emil Jones Jr., a Chicago Democrat.
He later blamed suburban Republicans for the plan's demise.
The odd turn of events Wednesday at the Capitol leaves the future of Chicago area's mass transit in uncertainty. Lawmakers could take up the issue again today when they reconvene, their final scheduled session day before the Jan. 20 doomsday.

Springfield Update

2008-01-07T09:51:00.000-08:00

Be always at war with your vices, at peace with your neighbors, and let each new year find you a better man.”

~Benjamin Franklin

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

- The Governor began 2008 by issuing, as he had threatened to do, his 19th Special Session proclamation, calling the legislature into session on Wednesday, January 2, 2008. He charged the General Assembly with passing legislation to resolve the CTA/RTA crisis.

- The day’s activities began with a well-attended hearing of the House Mass Transit Committee. Chairwoman Julie Hamos (D-18, Evanston) had the “subject matter” hearing specifically to discuss possible funding sources that would fill the state “budget hole” that would be created by Senate Bill 307, an alternative to the sales tax/transfer tax mass transit plan (SB 572, which we strongly oppose). Senate Bill 307, as you’ll recall, has many of the same substantive elements as SB 572, but does NOT contain a sales tax or transfer tax increase, but instead proposes to divert the proceeds from the sales tax on gasoline sold in Cook and the “collar counties” toward the mass transit plan.

The Mass Transit Committee heard from several witnesses regarding three possible revenue sources to fill the estimated $385 million budget hole that would be created by the SB 307. Two senior advisors from the Governor’s office briefed the committee on potential revenues and issues relating to fund transfer as one revenue option, and closing business tax “loopholes” as another. Kathy Drea from the American Lung Association briefed the members on issues relating to a proposed 90-cent per-pack increase in the state cigarette tax as a possible option.

Members of the committee expressed varying views and requested more information on several aspects of these proposals, and some members also discussed the importance of including fare increases as part of the funding package.

Rep. Hamos indicated her belief that a real estate transfer tax could and should still be a part of the final package, even in an alternative plan along the lines of Senate Bill 307! Rep. Hamos plans to have a proposal ready to vote on by Wednesday, January 9th, when the General Assembly is scheduled to return to Springfield in regular session.

- When both chambers convened later in the afternoon on January 2nd, 70 of 118 House members were in attendance, and just 14 of 59 Senate members answered the roll call. Additionally, only one of the four legislative leaders was in town. Both chambers gaveled the 19th Special Session to a close a few minutes after convening, and did not act on any substantive legislation.

- Please be prepared to act once again to contact your legislator, as we expect that a mass transit package may well be voted on next week, as mentioned above. Watch for a Call to Action, or check www.iaractioncenter.org. YOUR ONGOING SUPPORT IS MUCH APPRECIATED AND KEY TO OUR SUCCESS THUS FAR!

- The last day to register to vote in the primary if you are not already registered is JANUARY 8th. You will need two forms of identification with one showing your current address. You do not have to re-register unless you moved or changed your name. Go to State Board of Elections for more information.

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

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

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

Welcome Back

2008-01-07T09:37:00.000-08:00

I hope everone had a safe and happy holiday season. The blog will not be back up and updated on a regular basis.

NO New Posts

2007-12-17T13:09:00.000-08:00

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

RANWC Defeats $5000 Tax!!

2007-12-07T08:32:00.000-08:00

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

Des Plaines

2007-11-30T07:30:00.000-08:00

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

Water Rate Increases

2007-11-16T08:00:00.000-08:00

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

From the Daily Herald

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

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

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

Recall Debate

2007-11-16T07:19:00.000-08:00

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

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

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

Rutherford and recall

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

Legislative Breakfast a Success

2007-11-15T08:42:00.000-08:00

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

Governor OKs new mortgage counseling

2007-11-05T11:14:00.000-08:00

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

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

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

Springfield Update

2007-11-05T09:38:00.000-08:00

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chicago Transfer Tax

2007-11-02T09:20:00.000-07:00

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

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

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

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

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

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

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

Nov 2nd Legislative Breakfast Postponed

2007-11-01T12:13:00.000-07:00

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

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

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

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

Any questions, please contact Jeff Metzger.

New Poll Numbers for the Governor/President

2007-10-25T10:07:00.000-07:00

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

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

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

Cook County homeowner tax relief enacted

2007-10-23T12:37:00.000-07:00

From the Daily Herald

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

School Impact Fees for Retirement Communities?

2007-10-18T15:14:00.000-07:00

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

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

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

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

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

Anti-Crime Program

2007-10-16T10:45:00.001-07:00

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

Springfield Update

2007-10-12T14:05:00.001-07:00

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

New Legislative Breakfast Dates

2007-10-12T12:44:00.000-07:00

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

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

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

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

Springfield Update

2007-10-05T11:42:00.000-07:00

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

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

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

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

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

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

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

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

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

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

Vernon Hills

2007-10-02T09:59:00.000-07:00

From the Daily Herald

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

Cook County Tax Relief????

2007-10-01T08:20:00.000-07:00

From the Daily Herald

Cook County tax relief may end after this year

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

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

Program Gives Veteran Discounted House

2007-09-26T10:08:00.000-07:00

From the Daily Herald

Program provides soldier with discounted home

By Georgia Evdoxiadis Garvey Daily Herald Staff

Published: 9/26/2007 12:17 AM

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

A Message from the NAR President

2007-09-25T07:27:00.000-07:00

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

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

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

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

Sincerely,
Pat V. Combs, NAR President

Governor's Veto Rewrite

2007-09-20T22:45:00.000-07:00

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

From CBS 2 Chicago

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

THANKS & CONGRATS

2007-09-17T08:09:00.000-07:00

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

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

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

Prospect Heights Mayor Steps Down

2007-09-17T07:40:00.000-07:00

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

RTA Accepts Transit Rescue

2007-09-14T07:39:00.000-07:00

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

Up to Date Info on RTA/CTA

2007-09-13T06:42:00.000-07:00

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

CTA accepts short-term funding fix

2007-09-12T20:10:00.001-07:00

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

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

OPEN HOUSE Reminder

2007-09-11T15:27:00.001-07:00

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

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

See You There!

OFF

2007-09-07T08:24:00.000-07:00

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

Lawmakers Ditch Bailtout Plan for Chicago transit

2007-09-05T08:57:00.000-07:00

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

From the Daily Herald

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

Congress Holds Predatory Lending Hearing

2007-09-05T07:52:00.000-07:00

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

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

NAR Govt Affairs Update

2007-09-04T09:33:00.000-07:00

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

Mayors want towns to help residents

2007-09-04T08:18:00.000-07:00

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

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

President Bush Outlines Aid For Mortgage Holders

2007-08-31T10:02:00.000-07:00

Bush outlines aid for mortgage holders

By DEB RIECHMANN, Associated Press Writer

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

RANWC Govt Affairs in the News

2007-08-27T09:23:00.001-07:00

from the Daily Herald

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

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

Rolling Meadows Affordable Housing

2007-08-22T09:11:00.001-07:00

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

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

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

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

Congresswoman Bean to Visit RANWC

2007-08-19T19:56:00.000-07:00

I am very pleased to announce that Congresswoman Melissa Bean has accepted my invitation to participate in the 10th annual RANWC Affiliate/Vendor Open House on September 14th!!! More details will follow.

Springfield Update

2007-08-16T13:52:00.001-07:00

“Don’t interfere with anything in the Constitution. That must be maintained, for it is the only safeguard of our liberties.”
-Abraham Lincoln-

- This edition of Week in Review has been released on Thursday, August 16, 2007 since the Senate adjourned early Wednesday and the House did not convene this week in Springfield.

- As noted in last week’s issue the General Assembly finally approved a full-year State budget last week agreed to by the four leaders and sent House Bill 3866 to the Governor for his consideration. You will recall that the votes on this budget bill were OVERWHELMINGLY in support- the Senate vote was 52-5 in favor and the House vote was 99-8 in favor. Immediately there was a great deal of speculation as to what action the Governor would take on the budget bill, particularly since he had NOT taken any action on a supplemental appropriation bill that he had on his desk for nearly two months nor on the electric rate regulation legislation. Late on Monday night (nearly midnight) the Governor signed the supplemental appropriation bill and then on Tuesday, he made the surprising announcement that it was his intention to use his “executive authority” to move hundreds of millions of dollars from line items appropriated by the legislature in the full year budget to fund his plan to expand health care coverage in Illinois to cover an additional 717,000 people. The Governor defended this rearrangement of funds saying “it’s as legal as it gets, it’s as constitutional as it gets”.

- Other elected officials, political pundits and news media across the State though questioned whether the Governor had overstepped his authority. While the Governor is directed by our Constitution to prepare and submit a budget for the fiscal year the act of appropriating funds is a function of the legislative body. Article VIII of the Illinois Constitution deals with the issue of finance. Section 2 (b) of Article VIII, specifically states “The General Assembly by law shall make appropriations for all expenditures of public funds by the State. Appropriations for a fiscal year shall not exceed funds estimated by the General Assembly to be available during that year.”

- At the time of the publication of this newsletter, the Governor had not yet officially acted upon House Bill 3866, beyond issuing a press release of his intentions. To be clear, the constitutional question is not whether the Governor can reduce or eliminate items in the budget but it is whether the Governor can create new spending authority for expansion of access to healthcare. Again, according to Article IV, Section 9 of the Illinois Constitution, the Governor is permitted to “reduce or veto any item of appropriations in a bill presented to him. Portions of a bill not reduced or vetoed shall become law. An item vetoed shall be returned to the house in which it originated and may become law in the same manner as a vetoed bill. An item reduced in amount shall be returned to the house in which it originated and may be restored to its original amount in the same manner as a vetoed bill except that the required record vote shall be a majority of the members elected to each house. If a reduced item is not so restored, it shall become law in the reduced amount”. Senate President Emil Jones indicated he would NOT pursue an override should the Governor make these changes. However, the Speaker of the House, Michael Madigan, said he would proceed on the override. So even if the House of Representatives (which will act first on the override motions since the legislation began in the House) votes to override the Governor and restore the line items if the Senate does NOT act in a similar fashion the reductions/item vetoes would stand. A challenge would then have to be made to the new spending authority.

- The following is a link to the August 14, 2007 press release from the Governor:
http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=2&RecNum=6146

- Since the House was not in session this week no action occurred on Senate Bill 572, the mass transit proposal. This legislation includes the provision to permit the Chicago city council, within 6 months after the effective date of the legislation, to adopt an ordinance to increase their existing real estate transfer tax (currently $7.50 per $1,000 paid by the buyer) by up to $3 per $1,000 OR alternatively, impose a new supplemental tax up to $3 per $1,000 on the buyer or seller or both. Either option contained in SB 572 would be allowed WITHOUT the required approval by the voters in a referendum which is now State law. The legislation further specifies that the sole purpose of this increased/supplemental tax is to provide financial assistance to the CTA for retiree benefits. The IAR continues to actively OPPOSE this legislation.

- In other news, on Monday the Governor signed into law an IAR legislative initiative. House Bill 1637, sponsored by Representative Don Moffitt and Senator David Koehler, amends a section within the Illinois Property Tax Code regarding residential developments. Under the provisions of CURRENT law in all counties outside of Cook, when vacant land or farmland in excess of 10 acres is platted and subdivided into separate lots for development, the assessed valuation of all or part of the property is not changed from the vacant or farmland assessment level until a habitable structure is built on any lot of subdivided property, or when any lot (alone or in conjunction with contiguous property) is used for any business, commercial or residential purpose, or upon the initial sale of any platted lot- including a platted lot that is vacant. The assessed valuation of the remaining property, when next determined is reduced proportionately to reflect the exclusion of the property that no longer qualifies for valuation under this section of the Property Tax Code. This new law (Public Act 95-135) lowers the acreage to in excess of 5 acres in recognition that developments, particularly downstate, are often smaller. The new law takes effect January 1, 2008.

- House Bill 759 (Public Act 95-129) creating the Condominium Advisory Council Act was also signed into law on Monday, August 13th. The legislation provides that the Council will be composed of 7 members, 4 appointed by the legislative leaders and 3 appointed by the Governor to (1) identify issues facing condominium owners, condominium associations, and other persons who have financial interests in condominiums; (2) study the Condominium Property Act and related Acts that affect condominium ownership and suggest legislation to the General Assembly to amend those Acts; and (3) report its findings and recommendations to the Governor and General Assembly by January 31, 2008. This new law, sponsored by Representative Harry Osterman and Senator Susan Garrett, has an immediate effective date.

-House Bill 1881 (Public Act 95-183) which amends two sections of the Municipal Code to make specific changes regarding nuisances was signed into law on Tuesday, August 14th. The legislation amends the section of the State law that allows the municipality to cut weeds to add the cutting of grass, trimming of trees/bushes and removal of nuisance bushes or trees. In the section that allows the removal of elm trees infected with Dutch elm disease- the removal of ash trees infected with the emerald ash borer was added. This new law, sponsored by Representative Kathy Ryg and Senator Susan Garrett, also has an immediate effective date.

- On Tuesday, August 14th the Governor took opposite action on two bills that sought to extend the term of a Tax Increment Financing (TIF) district in certain municipalities. The Governor signed into law House Bill 2918, sponsored by Representative Don Moffitt and Senator Mike Jacobs, which extended the life of the TIF in the city of Galesburg (Public Act 95-164). However, he used his veto power to strike down House Bill 2036 which sought to extend the life of the Tax Increment Financing (TIF) District in the city of Villa Grove. The Governor’s message indicated that he did “not agree with some aspects of House Bill 2036”. The sponsors, Representative Chapin Rose and Senator Dale Righter, can seek an override. In related action earlier this summer the Governor approved House Bill 2307 (Public Act 95-15) which extended the life of the TIF in the village of Riverdale. That bill, effective upon the July 16th signature, was sponsored by Representative Will Davis and Senator James Meeks.

- The House and the Senate are in perfunctory session next week. Perfunctory session days permit limited activity to occur; the Secretary of the Senate or the Clerk of the House can read any legislative measure into the official record, committees may meet and consider and act upon legislative measures, and the Secretary or Clerk may receive and read committee reports into the record. However, legislators are not required to attend a perfunctory session nor can any further action be taken with respect to a legislative measure. Both chambers have been advised that they may be asked to return to Springfield with short notice to conduct official business.

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

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

Illinois State Treasurer's Office

2007-08-14T08:27:00.000-07:00

The Illinois State Treasurer's office will be participating in this years RANWC Open House on September 14th. The Treasuer's office will be on hand with their unclaimed property computer system. Event attendees with have the opportunity to search for unclaimed property. Stay tuned for more details...

State Budget Updates

2007-08-10T08:18:00.000-07:00

For constant updates on the state budget and other issues in Springfield, please visit www.thecapitolfaxblog.com

Breaks Continue for Property Owners

2007-08-10T08:17:00.000-07:00

From the Daily Herald

Breaks continue for property owners

By Eric Krol
Daily Herald Political Writer
ekrol@dailyherald.com
Posted Friday, August 10, 2007

Suburban homeowners -- especially those in Cook County -- would get property tax breaks extended for three years under legislation the Senate approved Thursday.
The deal keeps a so-called 7 percent cap on Cook property tax assessments in place through 2010. Homeowners living outside Cook would see their general homestead exemption rise from $5,000 to $6,000 the next two years.
Senior citizens would see their special exemptions rise to $4,000, disabled homeowners would get a $2,000 break for the first time and returning war veterans would get a one-time $5,000 break. More seniors also would be eligible for the state's property assessment freeze program.
"You could see people paying huge increases in taxes if this did not go through. This is extremely important to those property tax owners in Cook County right now especially," said Democratic state Sen. Terry Link of Waukegan, who will head a task force looking at Illinois' property tax system.
The extension deal, which still has to get through the House, came after bickering on the issue between Democratic House Speaker Michael J. Madigan and Cook County Assessor James Houlihan.
In the end, Madigan will come closer to getting what he wanted. Cook homeowners will be able to exempt up to $33,000 of increased value the year their home is reassessed. That figure drops to $26,000 and then $20,000 the following two years. The amount has been $20,000 a year. A new provision would provide even greater relief to homeowners making less than $75,000 a year.
Houlihan argued the income provisions are too complex and the gradual phase-down will result in increased property tax bills, but he was glad to get an extension.
"Together with community groups, ministers and other legislators we were able to get a bill approved that will protect a majority of Cook County homeowners from rising property taxes this fall," Houlihan said.Â

Two Republicans emerge for House race

2007-08-09T09:11:00.000-07:00

from the Daily Herald

Two Republicans emerge for House race

Primary needed to decide who could face new Democrat Froehlich

By Eric Peterson
epeterson@dailyherald.com
Posted Thursday, August 09, 2007

Newly Democratic state Rep. Paul Froehlich of Schaumburg found himself with not one but two challengers eager to reclaim his office for the Republican Party Wednesday.
Schaumburg Township District Library President Anita Forte-Scott has won the backing of the state GOP for the nomination, said House Minority Leader Tom Cross’s spokesman David Dring.
But also running, regardless of the party support Forte-Scott is receiving, is Hoffman Estates business owner Aaron Muller.
That means before either faces Froehlich, Muller and Forte-Scott will first have to face each other in the 2008 primary.
Forte-Scott was elected to the library board in 2005, becoming president a year later.
Newly elected to the board this spring was Froehlich’s wife, Marilyn. She and Forte-Scott have already had a few frosty exchanges in their time together on the board, particularly in debating an appointment to fill a vacancy.
“It should make those (library board) meetings even more interesting than they have been,” Paul Froehlich said.
But Forte-Scott said her candidacy will have no impact on what she feels is the non-political nature of library business.
“When I’m in the board room for the library, my main focus is running the library,” she said. “I personally will not engage in any kind of misbehavior or anything else that would be inappropriate in a library board meeting.”
Even if elected in November 2008, she plans to stay in her current office through at least the start of her first legislative session and possibly until the end of her library term just a few months later, if the workload is bearable.
Both she and Muller seemed unsure Wednesday how to approach their rivalry in the primary.
Muller said he was disappointed by the GOP’s decision to back Forte-Scott as he’d been gearing up to run against Froehlich for months.
“He’s probably rejoicing that the first person who was a real threat to him has been suppressed by not being nominated,” Muller said of Froehlich. “Now I’ve got to go up against this woman whom I don’t have even one single bone to pick with. I don’t have any ill intent toward her. I don’t even know her.”
Muller said that his lack of political experience may have been held against him. But he pointed out that Froehlich’s experience provided no guarantee of what voters could expect from him — or even that he’d leave the party.
Froehlich, too, said he might face an opponent in the Democratic primary, but he feels he’s the candidate who’ll be supported by the state party.
Forte-Scott said Froehlich’s recent defection to the Democrats was also what turned her thoughts about running for higher office someday more specific.

Prospect Heights Rental Inspection Increase

2007-08-08T12:04:00.000-07:00

The Village of Prospect Heights is considering an ordinance that would increase the inspection fees for rental properties. The fees which are currently $40 for initial inspections, would increase to $100 for a first inspection by January. The council is set to vote on the ordinance at the next city council meeting. Please contact me if you want additional information on this proposal.

IAR Quorum Call

2007-08-06T09:31:00.000-07:00

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

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

- On Wednesday the Senate Financial Institutions Committee approved Senate Bill 1167, the revised version of the predatory lending/4050 legislation that has been discussed throughout the spring session, on a roll call vote of 8-1 and sent the measure to the full Senate for final consideration. There was discussion regarding the fact that the association representing the mortgage brokers reversed their position on the bill. As reported last week, the association had filed a recorded committee witness slip in support of the bill in the House but now the association opposes the bill once again. The association did not have a representative speak at the Senate hearing. As you recall from earlier editions of Week in Review, this issue has been the subject of many negotiating sessions among all affected parties. The IAR is NEUTRAL on SB 1167 which includes requirements and restrictions applying to mortgage brokers as well as a codification of the recently-filed rules to re-establish the Predatory Lending Database Program (the HB 4050 program) in Cook County. This legislation will provide that only first time homebuyers must get counseling, and only if the loan they are seeking has certain characteristics: interest only, negative amortization, points and fees in excess of 5%, prepayment penalty, or ARM (the bill also would apply to borrowers who are refinancing, but that has not been a major issue for REALTORS). If signed by the Governor, the new program would become effective July 1, 2008.

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

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

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

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

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

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

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

August Committee Dates & Times

2007-08-02T06:54:00.000-07:00

August Government Affairs Committee Meeting Dates & Time

Legislative North
August 16th
9:00am
Libertyville RANWC Office

Legislative South
August 23rd
9:30am
RANWC Arlington Heights Office (Hearing Room)

RPAC Committee
August 23rd
10:30am
RANWC Arlington Heights Office (Hearing Room)

Des Plaines requires sprinklers for large additions

2007-08-01T08:20:00.000-07:00

From the Daily Herald

By Ames Boykin
rboykin@dailyherald.com
Posted Wednesday, August 01, 2007

New homes built in Des Plaines already must include sprinklers.
Now, adding a large addition to your Des Plaines home also will mean adding a sprinkler system.
Building code changes approved Monday night by the city council require Des Plaines residents to install sprinklers for major home renovation, such as a second level or a substantial addition.
“At that point, you’ve got all the plumbing exposed. Then, it’s a relatively minor factor to add the fire suppression (sprinklers),” said Michael Conlan, community and economic development director.
The requirement won’t apply to a new recreation room or small addition, he said.
Aldermen approved the change as part of a slew of building code changes designed to update the city’s laws.
The new rule is aimed at closing a loophole that allowed contractors to demolish an entire house except for one wall, yet call it “remodeling.”
The new rule says: “When alterations to a residential structure become so substantial as to render the house uninhabitable, then the entire structure shall be brought into compliance with the requirements for a new residential structure.”
The city in 2005 began requiring sprinklers in new homes over the opposition of developers, who said the few thousands of dollars it would cost would be added to the price of the home.

30% rise in home value?

2007-08-01T07:56:00.000-07:00

from the Daily Herald

Palatine Township's turn at property tax sticker shock

By Sara Faiwell
sfaiwell@dailyherald.com
Posted Wednesday, August 01, 2007

If you live in Palatine Township, you might have done a double-take last weekend when the property tax assessments arrived in the mail.
If you live elsewhere in Northwest suburban Cook County, you already should have received your new assessment -- or be prepared for possible sticker shock in the next few months.
Palatine-area officials say they're fielding a lot of phone calls from residents wanting to know why the new assessments are so high.
On average, Palatine Township residents are seeing assessment increases of 30 percent to 35 percent, township Assessor Terry Kelly said.
Elk Grove and Maine township property owners received their assessments in May and June, and those numbers also were substantially higher.
Officials from both townships cite an increased number of assessment appeals.
Mike Marks of Palatine was among the 38,000 property owners in the township to get the notice over the weekend.
"I was just totally shocked by it," he said. "To be honest, I thought it was a mistake."
His assessment rose more than 20 percent.
"I've lived here since 1988," he said. "This was a heart-stopper."
Wheeling Township residents are up next. Their notifications are to be mailed Sept. 21.
"What homeowners need to look at is to see if their home's new assessed value is in line with similar homes in their neighborhood," Kelly said.
If your assessment is higher than your neighbors', that could be the basis for a successful appeal, he said.
The new assessed valuations will be used to calculate the second half of homeowners' 2007 tax bill, which is to be mailed in the fall of 2008.
Properties in Cook County are reassessed every three years, and the new assessments reflect what's occurring in the market, said Maura Kownacki, spokeswoman for the Cook County assessor's office.
The assessment notice from the county makes reference to a 7 percent assessment cap provision that's up for renewal in the state legislature.
It's referring to the 7 percent expanded homeowner exemption, which started in 2004. It's a three-year program and is set to expire on the second-installment tax bills in 2008 if the legislature does not renew it.
The savings from this 7 percent exemption appears on the second-installment tax bills as an "expanded" version of the regular homeowner exemption.
This means that properties will continue to be reassessed whether this exemption is in place or not, Kownacki said.
Since the assessed valuation is one piece of the puzzle that goes into calculating property taxes, it's no surprise that people are worried, Kelly said.
"These assessments will affect the bottom line if the 7 percent cap is not renewed or if it's changed or lowered," he said. "It's hard to predict that right now."
State Sen. Matt Murphy, a Palatine Republican, says he's "optimistic" an extension will be passed "in some form" to provide taxpayer relief.
Murphy was a co-sponsor of the bill that aims to renew the expanded homeowner exemption.
In Palatine Township, the deadline for appeals is Sept. 4. The township will extend office hours Aug. 15 and 22 until 7 p.m. How to appeal your property assessment
â€¢Assessments can be appealed for several reasons, including that a property is overvalued or not assessed in line with similar nearby homes.
â€¢Appeal forms available at the county assessor's Web site, at your local township assessor's office or in the assessor's branch office in the Rolling Meadows courthouse allow you to check the reason for your appeal. There is no need find your own comparable properties in order to file an appeal. Cook County analysts will check properties comparable to the one being appealed. Online, go to cookcountyassesor.com/ filings/active/appeal online.asp.
â€¢If you wish to do your own research, you're asked to select homes within your neighborhood code that closely resemble your own home in both size and style.
â€¢After the appeal is filed, the assessor's office will analyze the information and notify residents by letter of the result of the appeal. A taxpayer advocate is available to review the appeal results and answer questions. The Taxpayer's Advocate is located in the main office of the Cook County Assessor and can be reached at (312) 603-7530.
Upcoming property assessment dates to notes and assessor's office contact numbers:
â€¢Palatine Township: Assessment notices sent last week; deadline to appeal is Sept. 4. Call (847) 358-6700.
â€¢Wheeling Township: Notices to be mailed Sept. 21. Call (847) 259-1515.
â€¢Barrington Township: Notices to be mailed Oct. 13. Call (847) 381-5632.
â€¢Schaumburg Township: Notices to be mailed Nov. 6. Call (847) 884-0030.
â€¢Hanover Township: Notices to be mailed Dec. 21. Call (630) 837-0301.
(Elk Grove and Maine township residents got their assessments this past spring and the appeals deadline has passed.)

Krause Won't Run Again

2007-07-30T07:41:00.000-07:00

The Capitol Fax reports that there is yet another name to add the ever-growing list of Republicans who aren't running again next year. Rep. Carolyn Krause (R-Mt.Prospect) announced over the weekend that she won't be seeking an eighth term. Krause has been the epitome of the moderate Republican and is respected on both sides of the isle for her legislative abilities. No Republicans have surfaced yet for the seat, however her State Senator is a Democrat so that could put her seat in play.

Good to Be Back

2007-07-30T07:40:00.001-07:00

I am back from FL where I participated in the National Association of Realtors Government Affairs Directors Institute. I will have plenty to report from those meetings in the days and weeks to come.

No Blog this Week

2007-07-23T16:16:00.000-07:00

There will be no blog this week. Enjoy your week and stay cool.

Springfield Update

2007-07-20T14:43:00.000-07:00

Illinois Association of REALTORS
Quorum Call Week in Review
July 20, 2007

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

- The General Assembly was in session all week with little progress made in the negotiations on the State budget but some movement on other issues such as the electric rate relief legislation. You may recall that this issue has been pending all year as the rates dramatically soared when the 10-year rate freeze was lifted. Particularly hard hit were those with all electric residences and/or businesses.

- Negotiations continued in the House this week on the legislation to infuse the RTA with significant funding. Senate Bill 572 includes a real estate transfer tax of $3 per $1,000 within the city of Chicago WITHOUT VOTER APPROVAL. The IAR STRONGLY OPPOSES this proposal that would give the statutory authority to levy a real estate transfer tax to a special taxing district governed by an APPOINTED Board. Without an elected and responsive entity a taxpayer has no way to voice their objection to this tax- clearly this is taxation without representation! We also object to the fact that this is ANOTHER LAYER of taxing authority on property owners in Chicago where a very high home rule municipal real estate transfer tax is already in place ($7.50 per $1,000 paid by the buyer) in addition to the State and county real estate transfer tax (combined $1.50 per $1,000 on the seller). The IAR is continuing our efforts to remove this funding piece from the legislation. Please continue to contact your Senator and Representative to urge that they reject this initiative.

- On Thursday, July 19th the House Executive Committee heard testimony and approved a revised version of the predatory lending/4050 legislation that has been discussed throughout the spring session. House Amendment #1 to Senate Bill 1167 is similar to SB 1674, which was pushed through the House in late May with the strong backing of Speaker Madigan, but was held up in the Senate due to opposition from the IAR and the Mortgage Brokers Association. After many negotiating sessions, the language was revised and placed on SB 1167. All of the lending groups, including the mortgage brokers, supported SB 1167 as amended, and the IAR took a NEUTRAL position on the bill, which now has no opposition.

This is the legislation that contains Attorney General Lisa Madigan’s mortgage lending initiative to enact requirements and restrictions applying to mortgage brokers (formerly in HB 1478), as well as a codification of the recently-filed rules to re-establish the Predatory Lending Database Program (the HB 4050 program).

As far as the HB 4050 program, the IAR was pleased that our strong opposition to the program being limited to ten contiguous zip codes on the southwest side of Chicago was heard, and that both the rule and the bill do not establish the program in this manner (the program now covers all of Cook County). As far as home buyers that must get counseling, the bill (as do the rules) will now apply only to first time buyers, and only if the loan they are seeking has certain characteristics: interest only, negative amortization, points and fees in excess of 5%, prepayment penalty, or ARM (the bill also apply to refi borrowers, but that has not been a major issue for REALTORS). Since the pending rules would have re-established the program anyway, the primary practical effect of the bill is to fix the program in statute rather than as an administrative rule. If enacted into law, the new program will become effective July 1, 2008.

As far as the Attorney General’s provisions in SB 1167, the IAR had some concerns with the application of the bill to all borrowers (the federal guidelines the bill is modeled after apply only to subprime borrowers), and with some of the language regarding “stated income” loans and ARMs. However, following negotiations, several changes favorable to our position were made.

The bill is now pending on Third Reading in the House.

- Also on Thursday, the House Revenue Committee met and unanimously approved concurrence motions with three Senate amendments to House Bill 1519. This legislation extends the life of TIFs in several communities from 23 to 35 years. These amendments are for the communities of Manteno, Chicago Heights, Rosemont and Stone Park. Concurrence by the House on these Senate amendments will mark final action on the legislation.

- The House Revenue Committee also had posted an amendment to Senate Bill 826 which made several changes to the provisions of the 7% assessment cap for Cook County contained in Senate Bill 13. The amendment made several technical changes to the bill suggested by the Cook County Assessor’s office and some substantive changes. However, the amendment was not called due to some additional changes that were being drafted. It is expected that the bill will be acted upon next week. Senate Bill 13 remains on the calendar in the Senate.

- Also this week the Senate Education Committee met each day to hear testimony on a variety of education and funding issues.

- The House and the Senate have adjourned for the week and will not be in session this weekend but will reconvene next Monday.

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.

Peterson Retires

2007-07-19T06:25:00.000-07:00

Senator Bill Peterson a senior Illinois State Senator will not seek reelection. Peterson has been a great friend to the Illinois Association of REALTORS. Several people are already interested in running for the seat including RANWC's Director of Operations and Mayor of Round Lake Bill Gentes.

Find the story from the Daily Herald below.

By Eric Krol
Daily Herald Political Writer
ekrol@dailyherald.com
Posted Wednesday, July 18, 2007
Longtime Long Grove state lawmaker William Peterson won’t seek re-election, and there’s no shortage of candidates vying to succeed him in the Senate.
Peterson, 71, said Tuesday “it’s time for young blood to take up the cause.” He served 10 years in the House and the last 15 in the Senate.
A quiet politician who sometimes tried to reach across the aisle to work with Democrats, Peterson is the lawmaker who pushed through the 1983 change that allowed voters to cast absentee ballots at village and township halls instead of by mail or at county buildings.
“I think it opened up the voting process. It got more people involved, regardless of their affiliation,” he said.
Two Republicans and two Democrats already are gearing up to run for Peterson’s 26th District seat in the Feb. 5 primary.
On the GOP side, 41-year-old Lake Barrington data management executive Dan Duffy has a campaign team in place. Active with the suburban chapter of the National Federation of Independent Businesses, Duffy said he would focus on job retention and opposing Democratic schemes to raise taxes and sell the lottery.
Bow tie-wearing Lake County Board member Michael Talbett of Lake Zurich also is said to be mulling a run. Talbett, who holds a law degree and doctorate in geography, could not be reached Tuesday. Given Peterson’s lengthy tenure, the list on the Republican side is likely to grow.
On the Democratic side, Round Lake Mayor Bill Gentes planned to announce his campaign Monday but acknowledged Tuesday to the Daily Herald that he’s in the 26th District race.
Gentes, 47, has been mayor of the fast-growing suburb for six years and is a real estate trade group executive. “As Democrats, we control the governor and the General Assembly. It’s nuts that we can’t get along, and I think we need to bring some sanity, find common ground,” Gentes said.
Democrat Richard Hammes, a 66-year-old North Barrington business management consultant and psychologist, originally thought about running for Congress in 2003 but bowed to Melissa Bean, who went on to defeat Republican Phil Crane.
For more on Peterson’s accomplishments and his potential replacements, see the Animal Farm political notebook at dailyherald.com.

Blogging

2007-07-18T09:48:00.000-07:00

updates will once again be daily. I was out ill last week. My apologies for those of you thirsting for ranwc government news last week.

springfield updates

2007-07-18T09:47:00.001-07:00

Illinois Association of REALTORS
Quorum Call Week in Review
July 13, 2007

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.

- While Shakespeare used the phrase "the winter of discontent" Statehouse observers agree that for now it is our “summer of discontent.”

- The General Assembly was in session all week with little progress made in the negotiations on the State budget or other issues and STILL no end in sight to this contentious session. The chambers held concurrent regular session days along with the Special Session days called by proclamation of the Governor. The House concentrated on holding a series of “Committee of the Whole” hearings and the Senate Appropriations Committees met as one to discuss aspects of State funding priorities.

- On Wednesday, July 11th the Senate concurred with the House amendments to Senate Bill 17, marking final legislative action on this legislation. You may recall that SB 17 was legislation that dealt with the assessment of timberland, prairie, wetlands and other undeveloped land. In 2004 the Illinois Department of Revenue had issued a ruling that had led to significant increases in the assessment of this type of property. The legislation will require property owners to place land (must be at least five acres) in an approved conservation stewardship program to qualify for the preferential assessment of 5% of the market value. The legislation has specific definitions to clarify what would qualify as wooded acreage, it creates a transition assessment and stipulates that after October 1, 2007 if the ownership interests or beneficial interests change by more than 50% from those interests as they existed on October 1, 2007 then the property would not longer qualify to receive the preferential assessment treatment of the wooded acreage.

- Also on Wednesday, the Senate approved legislation to resolve a conflict that occurred with the State notice provisions with respect to a school bond referendum held and approved by the voters in O’Fallon. This bill has been to the House for their consideration.

- Representative Ken Dunkin introduced a proposal this week to amend the Bill of Rights Article of the Illinois Constitution to add the “Right to Decent Housing”. This new provision states that all persons shall have a right to decent, safe, sanitary, and affordable housing and that the General Assembly may provide by law for the enforcement and implementation of this provision. House Joint Resolution Constitutional Amendment 26 (HJRCA 26) would have to be approved by both chambers and by the voters of the State to become effective. The resolution is currently in the House Rules Committee.

- The House and the Senate are scheduled to be in session Saturday and Sunday and continuing to next week.

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

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