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Government Affairs
Presently NICAR is looking for interested members to participate on our
Government Affairs Committee. If you are interested in joining the
Committee Chairperson please contact the Committee Chairman, Charles
Wiercinski, CRB, CCIM of McLennan Commercial Properties.
Phone: 847-655-3366, and at Network Real Estate Group:
708-873-5540.
REALTOR Action Center for Commercial Issues
Government Affairs Alerts
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4/1/2010
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Commercial State Legislative Report
| | Prepared for the Northern Illinois Commercial Association of REALTORS
The 2010 spring session of the Illinois General Assembly is under way and there are several bills that affect Commercial Real Estate, including the following:
Senate Bill 3334 deals with the issue of property tax valuation of foreclosed properties. Under current law, distressed property sales-like short sales and foreclosures--are not counted in determining assessed values in calculating the property tax multiplier. IAR supports amending the Property Tax Code to provide that the impact that distressed sales have on property values is reflected in the assessment of property for tax purposes. This bill states that boards of review and the Property Tax Appeal Board shall consider "compulsory sales" of comparable properties for the purpose of revising and correcting assessments. The bill does not apply to Cook County as it has a unique and complex system that classifies property for tax purposes. As introduced, this bill only applied to residential properties. At IAR's urging, the bill was amended to include ALL properties. This bill has passed the Senate and is currently assigned to the House Cities and Villages Committee.
Senate Bill 2572 would have allowed the Illinois Department of Public Health to order the evacuation and sealing of commercial and public buildings, the immediate suspension of licensed persons involved in improper removal of asbestos, and the authority to order persons to immediately cease activities--ALL WITHOUT NOTICE OR HEARING. This new power would be used if the Department determined that asbestos is being removed improperly. It was troubling that this proposal granted Public Health such sweeping powers since their regulatory statute is intended to only license and regulate persons/firms who perform asbestos inspection and abatement work. The IEPA is the agency with powers for regulation of asbestos during demolition, renovation and disposal. This legislation, if it had been advanced, would have created confusion and duplication and overreaching regulatory powers. IAR expressed these concerns to the chief sponsor of the bill and the bill was held in Committee.
Senate Bill 3001 would have allowed all counties to do a transfer fee of $5, the proceeds of which would go for affordable housing programs. In a Senate Committee where the bill was heard on February 24th, IAR pointed out in testimony that there already exists an allocation for affordable housing programs in the state transfer tax of $1 per thousand, with which 25 percent of those proceeds go to affordable housing. AND there’s a 10 dollar transfer fee already in effect (collected on all transfers in Illinois) that goes for an affordable rental housing program in Illinois. On Thursday, March 11th, this bill was defeated in the full Senate on a vote of 30No and 20Yes, the rest voting present or were absent.
SB 3747 is the “Transfer Fee Covenant Act” and it’s intended to deal with a new concept taking shape on the West Coast whereby a property developer records a covenant requiring all future buyers of the property to pay a fee on the transfer of the property. IAR opposes that kind of practice. This bill, drafted and introduced by IAR, would essentially prohibit that practice. IAR is pleased to report that on March 15th, the bill passed the Senate on a vote of 46-0. The bill is currently assigned to the House Judiciary Committee.
Senate Bill 2575 would amend the Property Tax Extension Limitation Law in the Property Tax Code. This law is otherwise known as the “Property Tax Caps” law. The bill would exempt, from the definition of "aggregate extension", all contributions to a pension fund created under the Illinois Pension Code. IAR usually opposes new exemptions to the Tax Caps law because it will mean that property tax payers would ultimately pay for a larger share of the cost of that function. This bill has not moved out of Senate Committee.
On April 22nd, The Senate approved Senate Bill 2505 on a roll call vote of 37-11-1. This measure, sponsored by Senator Michael Frerichs, adds language to the Illinois Property Tax Code to allow the creation of a new type of Special Service Area. A municipality or county would be permitted to establish a “green energy special service area” for the purpose of financing energy efficiency improvements, renewable energy improvements or water use improvements (defined in the legislation). The Illinois Finance Authority is permitted to assist local governments by establishing and implementing a program to issue its bonds secured by the SSA agreements for funding the projects. A green energy SSA can ONLY include property for which each owner has executed a contract or agreement consenting to the inclusion of the property within the green energy SSA and to the amount of special tax to be levied and extended against the property for such improvements. These contracts or agreements must be recorded in the county recorder’s office. Each owner within the green energy SSA is permitted to arrange for specific energy efficiency or renewable energy improvements and may obtain financing for those improvements through a specified process. The assessments levied on those participating property owners serves as the revenue stream for the bonds issued by the local government or the Authority. The IAR is NEUTRAL on this initiative which will now be considered by the House.
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3/30/2010
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3/30/2010 - Capitol Conference and IAR Business Meetings Recap
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By John K. Rutledge, CRE
Vice Chair of IAR Public Policy/Government Affairs Member Involvement Group
Past President of NICAR
“If you are not at the table, you are on the menu.”
Capitol Conference
Last week, almost 600 REALTORS® converged on the Capitol in Springfield to emphasize that we fully intend to keep our place at the table. First we were briefed by Greg St. Aubin and Julie Sullivan (IAR Government Affairs Director and Assistant Director, respectively) on the principal bills concerning us. Then with the able assistance of our local government affairs directors we found our respective legislators and senators and reviewed those bills with them and asked for their support of our positions.
Last year was my first time attending the Capitol Conference, and frankly I did not know what to expect or how to go about the lobbying process. I was intimidated. This year was different for me. The experience last year gave me all the confidence I needed to set about the task.
The House was in session, and several of us gave our cards with the name of our legislator written on the back to the doorman. A few minutes later, Rep Fortner emerged and we had a brief visit on the issues before he returned to the floor. Next I went looking for Senator Hultgren. The Senate was not in session, and he was out of town, reportedly campaigning for the US House seat he is seeking. But I left our hand-out materials with his secretary.
That evening IAR held a reception for the senators and representatives. Many of them came, and we had the opportunity to visit with them in small groups and one-on-one. They welcomed the opportunity to meet us and share views.
If you have not previously participated, promise yourself to go next year. It is a very positive experience personally, and our participation contributes to the impact of our ongoing efforts to influence legislation toward the end of protecting property rights and providing the environment for a healthy real estate market.
What You Should Know
What are those issues that are on the front burner for us? Here are just a few examples:
We support SB 3747 which would prohibit private transfer covenants. These have appeared in other states, and our goal is to prevent them here. A developer could establish a requirement that a fee payable to the developer would be required every time a commercial or residential property in his development is resold and would affect the future marketability of the property. This bill has overwhelmingly passed in the Senate and is now in a House committee.
Many of us responded a few weeks ago to a call to action to oppose SB 3001, a bill to allow counties to impose an additional fee (initially $5 with future increases allowed) for recording mortgage-related documents to fund affordable housing. This bill was decisively defeated in the Senate, gaining only twenty of the thirty votes needed for passage.
HB 5409 is intended to address the problem of a title insurance agent taking escrow funds and converting them to personal use. IAR supports the consumer protection aspects of this bill that require the agent to have the backing of the title company. But the bill mandates a set fee of $50 on the seller and $25 on the buyer/lender. Our effort to eliminate those set fees appears to be succeeding.
Appraisal Management Companies have arisen to provide legally required insulation between lenders and appraisers. Unfortunately, these AMCs have not always selected the best appraisers for the job, and have added a cost element to mortgage financing. HB 5868 would require their licensing and would regulate their activities under the Illinois Real Estate Appraiser Licensing Act. IAR supports this measure which is now on the House floor.
Homebuilders were pushing HB 5071 to loosen the definition of “regular employee” to the disadvantage of those of us subject to licensing. Our opposition was instrumental in killing this bill in committee where the chair could not even get a motion to consider it.
Following the REALTOR® of the Year banquet on Wednesday evening, at which NICAR President Rose Gillece was recognized as the NICAR REALTOR® of the Year and John Kmiecik was honored as the state ROTY, a stick horse race was held. With the associated silent auction and raffle, another $16,000 was raised for RPAC. Friends, this came from people like you and me who were there.
What You Can Do
I cannot emphasize enough the importance of supporting RPAC. I have only touched on the hundreds of bills and local ordinances that IAR is monitoring and actively supporting or opposing in our best interests. We need your involvement in three ways:
1. Attend Capitol Conference next year and help make our presence felt.
2. Respond to Calls to Action. It is a matter of a few clicks of the mouse. The senators and representatives don’t read every identical emailed message, but they do keep count. Fewer than 15% of our members respond and it should be 100%. It is so easy.
3. Send a check. If every NICAR member contributed $25 to RPAC, we would blow past our $3540 goal. Please send your check payable to RPAC to:
NICAR
214 N Hale Street
Wheaton IL 60187
How Your NICAR Colleagues Are Volunteering
An additional note: Several of your past and present officers were in Springfield to actively participate in the business meetings. Past President Chuck Wiercinski chairs the Commercial/Industrial/Investment Committee and President Rose Gillece, Treasurer Dan Wagner, and Past Presidents Tammy Spilis and I participated. I serve as Vice Chair of the Public Policy and Government Affairs Member Involvement Group, and Rose, Tammy, Dan, and Chuck participated in the meeting. Chuck and I also participated in the Executive Committee meeting. Preparation for and attendance at these meetings require significant time commitments. We participate because we believe we are making a difference in the way we all do business. You are welcome to lend a hand!
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