Issues & Legislation
Congress Extends and Expands Tax Credit: A Message from NAR President Charles McMillan
Dear Fellow REALTOR®,
I am VERY excited to report that Congress has answered our call to extend and expand the homebuyer tax credit!
Both the House and the Senate have passed an unemployment insurance bill, which includes an amendment that expands and extends the tax credit. That bill will be sent to President Obama for his signature in the next day or so.
I have recorded a special edition of my President's Podcast, with details on the new tax credit and when it takes effect. Please take just a couple of minutes to listen.
We also have posted a comparison chart on REALTOR.org. This can be a helpful resource as you work with buyers to take advantage of the credit in the months ahead.
On behalf of NAR, I thank you all for your participation in our advocacy efforts on this issue. Not only did we set a new record on responses to Calls for Action, but we helped move another step closer to a brighter future for America’s families and our economy.
City Budget Hearings: Department of Buildings
C.A.R. attended a hearing held by the Budget Committee this week at City Hall that focused on the Department of Buildings. Buildings Commissioner Richard Monocchio testified on the coming year for the department and highlighted what the department is doing on foreclosed properties and properties scheduled for demolishing. The committee praised the department for its progress on online permit reviews and also for the efforts made in re-vamping the City’s inspection process. C.A.R. will continue to keep members informed of the happenings over the next several weeks of hearings.
C.A.R. Cultural Diversity Committee Meets
This week, the C.A.R. Cultural Diversity Committee met to discuss the upcoming year and welcomed new Chairperson Ted Evans and Vice-chair Brian Turner. The group was updated on Chicago's very successful Neighborhood Stabilization Program, which has become a national model, and other programs such as the federal Small Business Administration's ARC Loan Program and the City of Chicago's Minority and Women Owned Business Procurement Program that REALTORS® can utilize. The group also held a lively discussion on affordable housing, and the issue promises to be one that the Cultural Diversity Committee will continue to focus on throughout the year.
C.A.R. Economic Development Team Canvasses the Loop
This week the C.A.R. Economic Development team canvassed the Loop. Walking Wabash and State Street, this bustling downtown corridor is filled with shopping, restaurants and plenty of office space. Jam packed with people, it was surprising to see such a large amount of vacant storefronts. Look for the complete report for the Loop this winter. For more information, contact Caitlin Malloy.
Tax Credit Expansion and Extension, We Need Your Help!
Although the Senate was not able to reach a procedural agreement to schedule a vote on the Unemployment Insurance extension, the Dodd-Lieberman-Isakson Amendment to extend and expand the Tax Credit is contained in the bill.
The Senate is expected to vote, Monday evening, for a "Motion to Invoke Cloture" if 60 Senators vote yes on the cloture motion, the Senate will then be able to schedule a vote on the bill that contains the Dodd-Lieberman-Isakson Amendment.
Once the Senate acts, the tax credit must still go to the House of Representatives for action. Read More
General Assembly Passes Illinois Real Estate License Act During Fall Veto Session, Awaits Governor’s Signature
IAR’s Real Estate License Law rewrite (SB 1894) was approved on Oct. 15 by the House and on Oct. 29 by the Senate. The bill now goes to the Gov. Quinn for his approval. In terms of timing, the legislature has a maximum of 30 days to transmit the bill to the Governor, and then the Governor has 60 days to act on the bill. However, IAR anticipates that the bill will be acted upon relatively quickly. If approved, the section of the bill containing the Real Estate License Act is effective December 31, 2009. The bill gives licensees until April 30, 2012 to go through the proficiency exam or coursework requirements. Read More
C.A.R. Board Members in Illinois Realtor® Magazine Feature on Chicago’s NSP Program
C.A.R. President-elect Mabel Guzman and fellow Director Zeke Morris were featured in an Illinois REALTOR® Magazine column, penned by C.A.R. Government Affairs Director Brian Bernardoni, highlighting their and the Association’s role in the City of Chicago’s Neighborhood Stabilization Program. Read More
C.A.R. Participates in Press Conference with Mayor Daley on Property Tax Relief
C.A.R. was asked to participate in a press conference this week with Mayor Daley in Albany Park as the Mayor unveiled his property tax relief plan. C.A.R. President-elect Mabel Guzman, along with C.A.R. staff, took the opportunity to spend a few minutes with the Mayor to talk about the current lending crisis as well as our perspective on Neighborhood Stabilization Program. The Mayor is very knowledgeable on these matters and he thanked C.A.R. for our support and advocacy on these matters. Read More
NAR Legislative Analysis of the American Clean Energy and Security Act (as proposed)
The U.S. House of Representatives approved H.R. 2454, the American Clean Energy and Security Act by Reps. Waxman (D-CA) and Markey (D-MA). The bill, re-numbered H.R. 2998, includes NAR-supported provisions, championed by Rep.
Perlmutter (D-CO), that exempt existing homes and buildings from the bill's provisions to build upon an existing Energy Star energy labeling program. Read More
City to Implement Annual Inspection Certification Program
The Department of Buildings is continuing to augment
enforcement model in an effort to ensure public safety
increase efficiency. As such, they will soon begin implementing
an Annual Inspection Certification (AIC) program. Read More
Annual Inspection Certification Program
Call to Action: Land Banking Bill-Contact Your Senator
The IAR has taken a hard OPPOSE position on House Bill 1195 and Senate Bill 2101 – the Land Banking bills – which are both in the Senate.
Some key points about these bills to know:
- This is an ENORMOUS grant of power to ALL municipalities, with almost no oversight or guidance from the General Assembly; given the scope of real estate and financial power that these LBAs will have, this is just asking for problems and abuse.
- Municipalities already have far-reaching powers regarding vacant and abandoned property, and they can do a very robust abandoned property program without this Land Bank power, and many municipalities do just that now. IAR has not heard any Senator bringing to issue their municipalities being unable to address abandoned or foreclosed properties without a land bank.
Please take the time to contact your Senator in the District on Monday, before they return to town next week.
View the IAR Position Paper on this Issue
Neighborhood Stabilization Program: Request For Proposals-Deadline Extended
Mercy Portfolio Services has extended the due date for responses to the Request for Proposal (RFP) for Real Estate Professionals to May 29, 2009.
Mercy Portfolio Services is going to be releasing a Request for Proposals (RFP) for licensed real estate professionals to help them facilitate the acquisition of foreclosed properties in targeted Chicago neighborhoods. The deadline for the RFP is May 1, 2009. Copies of the RFP can be found by clicking here.
Mercy Portfolio Services also has released a Request for Qualifications (RFQ) for developers with interest in acquiring, rehabbing, and thereafter owning and managing or selling properties that are vacant as a result of foreclosure. The RFQ will be processed on a rolling basis. For more information, contact William Towns at 312-447-4609.
The Association would like to thank C.A.R. leadership, especially Ginger Downs, David Hanna, Genie Birch, Mabel Guzman, Zeke Morris and Bob Floss, for their efforts and guidance on this project. If you have any questions relating to the Neighborhood Stabilization Program for C.A.R. please submit them by clicking here.
New Legislation
PA 095-0988 is a pilot program for notarial acts involving documents that transfer title to Cook County residential properties. The IAR participated over the past two years in negotiations on this legislation and was NEUTRAL on the bill as approved. The new law will provide that for the period from June 1, 2009 until July 1, 2013 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. The notarial record must contain:
- the date of the notarial act;
- 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;
- 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;
- 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;
- 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;
- 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.
Public Act 095-0988
NAR Opposes Mortgage Interest Deduction Provision on Obama's Budget Proposal
February 26, 2009 - President Obama released his budget proposal this morning. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. NAR is 100% opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment. Read More
FHA Loan Limits Released
As a result of the passage of the American Recovery and Reinvestment Act of 2009, today HUD published changes to FHA's single family loan limits . Given that most of the loan limits decreased for 2009, most areas will revert to the higher 2008 mortgage limit.
For 2009, the maximum mortgage limit for an area is the higher of the limit that was in effect for 2008 or the current 2009 limit as stated in Mortgagee Letter 2009-07. The new loan limits, which are effective for any loan closed in calendar year 2009, are in effect through December 31, 2009.
Please note that because the new limits are a comparison of 2008 and 2009 there is not a process for appealing the limits. You can find the FHA loan limit for your area Here.
View the mortgagee letter online.
American Recovery and Reinvestment Act of 2009
he President signed the bill on February 17, 2009. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.
Resources:
City Comptroller Announces 2009
Security Deposit Interest Rate
City Comptroller Announces 2009
Security Deposit Interest Rate Set at
0.12%
for the City of Chicago.
The state rate is
0.25%. Read More
Chicago REALTORS® Help Delay Commercial Lease Ordinance
C.A.R. worked with Chicago-area business groups and aldermen to delay introduction of an ordinance that would have significantly impacted the disclosure of commercial leases in Chicago. C.A.R. will continue to monitor the issue, but by most accounts, the issue has not garnered the aldermanic interest necessary to proceed. The ordinance (as discussed but not proposed) would compel commercial building owners to record all commercial leases with the city to assist in identifying gaps in existing business licenses as well as gaps in existing building permit applications. Cantact Brian Bernardoni with any questions
Chicago REALTORS® Help City Correct Tax Errors
The Chicago Association of REALTOR® helped the City realize and resolve an error that could have caused numerous Chicagoans to overpay their property tax bills. Read More
Property and Sales Tax Frustration Leads to Decisive Action from C.A.R.
Last month, before his own committee as well as the Governmental Affairs committee, Mike Cello, Chairman of CommercialForum (C.A.R.’s commercial real estate division), issued a call to action: do something about commercial property taxes. Read More
SB 1167: Predatory Lending
On July 1, 2008 implementation of the Anti-Predatory Lending Database Program will occur by the Department of Financial and Professional Regulation.
The purpose of this program is to reduce predatory lending practices by assisting the borrower in understanding the terms and conditions of the loan for which he or she has applied. The act does
not prohibit any type of loan. It is solely the borrower’s decision whether to
proceed. More Information Including Resources & Training
Transfer Tax Imposed Upon Seller
Effective April 1st, the Chicago Real Estate Transfer Tax increase of $3.00 will be imposed upon the seller.
For Details Please See Links Below:
“Wrong Tax, Wrong Time”: Coalition unites to fight Real Estate Transfer Tax
Chicago, Ill. – Standing shoulder to shoulder at City Hall this morning, 11 spokespersons from nine local organizations held a press conference denouncing the proposed Real Estate Transfer Tax that will go before City Council on Wednesday, February 6, 2008.
If passed, the increase will raise transfer taxes on all Chicago real estate transactions by 40%, to roughly $10.50 per $1,000. Revenue from the increased tax would be used to fund CTA pension plans, not improve CTA quality or service. Read More
Illinois Radon Awareness Act
The newly enacted Illinois Radon Awareness Act will go into effect on January 1, 2008. REALTORS® should have general knowledge about the Act. Read More
New 2008 City of Chicago Business & Real Estate Related Fees & Taxes
The following fees were approved by the Chicago City Council for 2008. Please note that the Chicago Association of REALTORS® as well as other business groups were in opposition to these fees. Read More
Property Tax Passes; Commercial Lease Tax Tabled
REALTORS® in Chicago and their clients can expect there taxes and fees to increase - but not at the same rate as announced, thanks in part to joint efforts from multiple business groups including the Chicago Association of REALTORS®. Read More
REALTORS® Reject City Property Tax Increases; Changes to Tax Cap and Development Fee Increases
Read The Chicago Association of REALTORS® City of Chicago 2007 Budget Testimony here.
If you have specific concerns on these issues please contact Brian Bernardoni
Past Legislation
Parking Permits Now Available
New Sign Warning Press Release
Approved Mayoral A.R.O.
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