Default and Liquidation of Thousands of Poorly Managed Units
A recent Crain's article described the default and liquidation of distressed portfolios with thousands of units in the Chicago area. Working with the City of Chicago, CIC's Troubled Buildings Initiative continues to monitor code compliance and act as Housing Court receiver. The Preservation Compact is advising suburban municipalities on intervention strategies and is advocating for policies to prevent similar occurrences in the future.
As the portfolios are dissolved, responsible parties are encouraged to purchase and rehab these properties. Parties can contact SVN for more information on EquityBuild property listings. As the Better Housing Foundation portfolios work toward a resolution, it is anticipated there will also be acquisition opportunities. To support the stabilization of these properties, CIC is offering financing opportunities to responsible parties.
Property Tax Incentive Proposal
Senator Feigenholtz has introduced SB3529 and Rep. Welch has filed HB5275, which would establish a new property tax incentive to encourage investment in multi-family apartment buildings and the creation of affordable rental homes. By providing reductions in assessed value in exchange for providing affordable units, the legislation will support the efforts of both market rate and affordable developers to maximize affordability for renters.
This legislation is being advanced by Housing Action Illinois, Enterprise Community Partners, Metropolitan Planning Council, and the Illinois Housing Council, and was developed based on a proposal The Preservation Compact developed with these and other partners to provide a meaningful property tax incentive for affordable rental housing.
New Cook County Assessor's Office Tool
The Cook County Assessor's Office recently created the Real Property Income & Expense (RPIE) Online tool, which is a digitally secure tool for commercial property owners to provide data associated with a business entity's buildings, income, expenses, and vacancies. The Assessor's Office encourages all property owners to submit information via RPIE to assist in their efforts to determine the most accurate property valuations for affordable housing properties.
In 2020, any commercial property owner who is filing an appeal is required to submit income, expense, and vacancy data using the RPIE tool. More information on RPIE can be found here. Additional questions can be sent to RPIE Support.
Properties in the South Suburban townships are being reassessed in 2020. To find deadlines for your township, click here. The deadline to file an appeal is March 19 for River Forest and March 25 for Riverside. Visit The Preservation Compact's Appeals Resources for additional appeals information and assistance.
Compact partner Housing Action Illinois is conducting outreach to ensure hard-to-count communities are included in the 2020 Census. The data collected from the Census affects the allocation of billions of dollars in federal funding to Illinois. If you are interested in learning more and assisting with outreach, visit the Housing Action Illinois website.
The Compact Data Download
The Institute for Housing Studies at DePaul University's Cook County Housing Price Index highlights changing prices for single-family homes through the second quarter of 2019. Seven submarkets show slight year-over-year price declines, including three high-cost areas on the north side of Chicago.
