I want to welcome everyone to the meeting on the committee
on housing and real estate of the city of Chicago and then
it has been called to order today. We have 14 items on the
agenda.
And we'll start now with the roll call to establish quorum.
We'll start with Vice chair Mitchell.
So, some Vice chair Mitchell.
B. Mitchell present.
Alderman. Dow.
No present. Alder Alderman, Quinn present, Alderman Moore.
A little bit more present.
I did see Alderman more but he's not in the chambers yet.
Um, all the women Taylor
all the 1 on Taylor, not present, all the woman is present
all the woman Scott
No present all their person Fuentes.
All the person, all the member net.
All the member net present.
all the women, uh, Alderman, Ramiro Rosa
Alderman row was in the present Alderman bees.
Presents.
Present all the clay.
present other women may not happen with present and all the
women had it
All the women had in present that makes.
12 people. So we have established Quorum. Um, thank you
very much. Everybody for joining us. We have a rule 59
requests from, um, Alder person.
Uh, here's um, and um, we're gonna, we have, uh, Alderman
Robinson Alderman, Harris Alderman, Rodriguez, Sanchez. Uh,
who has requested remote participation? Can I get a motion
to approve? The zoom participation, so move all those in
favor. Say I
All those opposed the name in the opinion of the chair the
eyes have it. So we do have now all the women Paris and I
think all the women here is for now and we'll wait for the
the other 2 to confirm. Um, now we have a a public comment.
comment, we have 5 members of the public have signed up
today. It just speaker will have 3 minutes to speak on all
items of the agenda. And we'll ask just to stay, uh,
Just stay on topic and please, you know, refrain from any
kind of vulgar language like would make arguments and we're
here to listen and hear you out. So, um, we also uh, well,
we we start then with the Perkins,
Hello. Uh,
Good afternoon. My name is D Perkins and I'm I'm here today
to, uh, speak to you all, obviously the housing committee.
Uh, you're going to, uh, appoint a couple new chairs to Cha
and, uh, you know, cha s on a billion dollar budget and
more than a billion dollar budget and we have more than 500
vacant properties in this city that have been vacant for
many, many years. And we have a homeless problem here in
the city and I'm not speaking of people who just showed up.
I'm speaking people who have been here, I ride my bike from
downtown to Southshore, uh, several times, uh, a month and
all I see laying in the streets. And I'm talking about and
different times of the day,
Early in the morning late at night. All I see. Are homeless
black Americans. Littered in the street families couples
men women when I'm downtown. I see them on the street.
When I'm in our neighborhoods, I see my people in the
street.
And all I keep hearing from the city is that we don't have
the money to tackle this problem.
We need to create a new tax, a new real estate tax in order
to solve homelessness in our city.
Yet we see, we see.
That you all have found.
Obscene amounts of money.
The handle situation and a problem that is not ours and is
not affect the people who live here. Who have been here?
Whose ancestors have toiled the soil here.
Where have you found that money and then have put us in a
atrocious debt?
To solve a problem. That is not ours. That is not even
solved.
So, I urge you all.
And your new commissioners.
To have financial responsibility.
When it comes to this new budget that you all are going to
enact.
Because there is money, there's property and there are
solutions to the homeless problem that we have here
currently in the city of Chicago.
We don't need a new tax. I'm glad bring home Chicago,
failed. I ran for Alderman and I actually, originally
supported it until, I dug a little deeper and until I saw
this situation and I'm so happy that it failed because I
urge people in my ward to not vote for it. And I'm glad
that they did that, they didn't, they listened? And I know
that there was a lot of money spent and trying to get
people to vote for it.
But it's a scam and it's not okay.
And it needs to fail again and if I understand correctly,
the the the mayor is going to try to put it on the ballot
again, in November after it failed, the people have spoken.
What do we live in? Where you can continuously
Force policy down the throats of people who have told you.
They don't want it. They don't like it.
We voted. We spoke. That's the end of the story.
Thank you. Uh, next we have uh, Zoe Lee.
So would like to recognize for the courtroom. Thank you.
I see she um left but I wanted to take a moment of silence.
Uh uh for Denise Rotherham who faced sexual harassment,
from Iver Silverstein and was further harmed by all the
woman de Deborah Silverstein for standing by him. So she
wants to do uh, moment of silence is when she knows that
our communities are affected just as much as any other
Jewish Community, you going to keep the same energy like I
said, people want to always do the Holocaust, the Holocaust
and slavery.
All of the saber was much worse, was much worse. If we want
to, we want to do the comparison.
Okay, so I'm tired of, I'm tired of that. We're gonna get
that same energy but, uh, going back to when it comes to
the city of Chicago Housing Authority, which is the only
Department that's in the green.
They're displaced. They're they're taking uh, how housing
Choice vouchers from black seniors. They're telling black
seniors that they're no longer paying for their, um, their
rent because and they have 120 days to find somewhere else.
Knowing that, they can't find anywhere else to go. So,
these 2 appointments today, for Commissioners, for the
Chicago Housing Authority, it it doesn't make any sense. I,
um, HUD already has taken Chicago Housing Authority away
like a lot of the advantages that you have that HUD has
already taken it away and y'all still are doing whatever
y'all want to do. Tracy. Scott needs to be removed, Cheryl
Burns need to be removed case, Carrie Steinbeck needs to be
removed. Um the whole Chicago Housing Authority just needs
to be investigated and it will be investigated. It will be
shut down. Like I said, I technically own the city of
Chicago because y'all oh, my family, 3 billion dollars on
top of that billion.
Deficit that y'all are dealing with. Um and even with this
situation when it comes to him, still being the chairman
Brian s Lopez, he really doesn't want to be. They're trying
to make him the zoning which at the end of the day. So the
Hispanic KKK, which is the DSA socialist.
Agenda that y'all have. Y'all are trying to control our
education, Public Safety housing zoning and not making and
we're not able to get anything. Y'all are moving us out.
This is and it's and it's getting to the point that
everybody is seeing it. So I don't care if you guys are
paying attention to me now, because the whole world is
watching.
And the justice department is coming, the IRS department is
coming, the feds is coming, it's going to be the biggest
audit in American history. That's going to happen in the
city of Chicago and the state of Illinois. And a lot of
y'all are going to jail a lot. Thank you.
Thank you. Uh next we have Taiwan Sims
51.
I say, in April week set, we spoke with you by and see Joe
Lopez right there.
And I'm saying your words, you said that we have to hold
these systems accountable.
And that would be the coordinated entry access system.
All Chicago, or the hmis which 1 because you're the
chairman of housing.
And since, but you were also speaking with a black American
father by Michael baymore and you expressed to him. Also,
he said I am a father, I understand because he dealing with
a home, he homeless
come in here, consistently trying to get housing but you
said that, you understood and he's still homeless, still
trying to find housing or some sort of shelter. However, I
also spoke with you, I got you recorded because I I like to
document things especially when I know I'm dealing with
somebody unscrupulous.
Somebody who does not have a moral standard. Somebody who
was all often times. Just you you, what, what, what is it
called? The opportunities.
For the way you set up that down at that DNC protest and
spoke your words for the opportunity, you took with the
American flag, the sensationalize yourself for all these
instances. But still, you are ahead of or the chairman of
housing. So I have to personally speak to you about this
instance in my life, now that I know it's manufactured.
or discriminatory, but you can't have you can't be hosting
these type of, um,
Behaviors or or, or have this type of mindset, right?
Especially in the position that you're in, especially, with
the responsibility that you hold over black Americans
Latin. What whichever you are housing. So I know that
personally I've been locked out of housing now, because I
come here, what does it say? How does it say? It says to
quickly identify assess refer and connect, people in crisis
and I came here in January, y'all seen me
Right.
Sleeping in the police station. Like a Venezuelan
but I'm a American citizen 44 years, but I was seeking
Sanctuary started because hey there has to be some
resolution to the situation that I'm dealing with but no
Mr. Byron see Joe Lopez.
Because you're going to push your agenda, whatever that
agenda might be same way, you screamed out us immigrants.
What about the American citizen? What about the residents
here in Chicago? What about the Black American, especially
you and your words in that, um,
What was it? You said that.
Though. Well, let's not say verbatim but you said
Those who have housing are less.
Less.
Not more.
But less likely to be caught up in violence incidents. You
said it. You said that housing
Can help us with this violence that's happening in the
streets. But still we see black, Americans sleep on elves.
And like she said,
Thank you, thank you. Miss Sims.
Um, we got now.
We going to recognize now for the purpose of Quorum, all
the women Scott and Alderman Moore. Um, next we have Miss
Jessica Jackson,
Good morning, well, good afternoon. Um,
It's kind of.
Wow, to hear the rules keep getting red before meetings.
Now when in these meetings, we're seeing that rules are
being broken all the time.
Now.
I'm not going to pound down on you per se um, Alderman
because you did take some initiative to
uh, address my issue with housing, I give you that
but,
All this other. It's gone too far.
the mere fact that you would suggest a 3% tax on
millionaires, in order to
deal with immigration.
That's, I mean why? It doesn't make any sense? And I'm not
even a millionaire, but I know that doesn't make any sense.
Why would Chicago millionaires paid 3% to take care of
illegal immigrants?
No, it was seen to me, if you all of that serious about it,
you would tax your country, 3%.
And have them pay that money to the city of Chicago.
Because you all have ran Chicago in the ground financially.
It is my opinion, whatever type of vote is going on about
your position or another position at this point in the
juncture. Hispanic ultimate should not have any more
positions of authority until this is all straightened out
because you all do not have the ability to see outside of
the needs of your immediate circle and whatever. This is
that you all got going on this agenda that clearly mayor.
Brandon Johnson is supporting this extreme radicals.
That's I don't know what, I don't even know what the end
game is.
It's The End Game to drain America of Everything, Is the
End Game to make Chicago and America look like the third
world countries that you all are coming from. Is the end
game for you all to overtake America? What is this really
about? Because you see the money is going away. It's
dwindling. And it's going fast, and you all still want
you still want more. Brandon Johnson is still willing to
give you all more Authority after Rosa. Did what he did and
paralyzed the issue of the sanctuary City and you still
want more and it's still backed by the mayor.
This is an agenda that is anti.
American is anti citizens is anti- Chicago and it's anti
the United States of America. I'm asking that the black
Alderman. We have to come together and deal with what's
happening with us because they don't care.
We're going to be done and they going to have it all.
Thank you. Next we have uh, Alicia Campbell.
Okay.
I need to remind everybody in this room that the taxes
collected also come from the black community. But yet
again, we are always asking the black community step aside
while we use your tax dollars to feed. Another group of
people, put another group of people on the path to wealth
and prosperity, educate another group of people always
asking us to step aside and then we come here with our
concerns and this dismissing, you love to say that you're
doing everything for the city. But we just learned in the
uh what was that? The economic capital and Technology
development. That something was built in your ward. A piece
produce that's in that has blacks in that community and not
1 black contractor was on the construction and none of the
black people were hired to work in the store.
So that's proof that your goal and agenda is for your
people and not the entire city of Chicago, and it's unfair.
and we have to keep putting you on blast me personally, I
think you are a very dangerous individual for this city and
you don't need any more power in this city because we are
also learned this terrorist group. That's on 71st Street,
you are associated with them.
A communist group allowed to open up a organization in our
community where there are recruiting to to create violence
in this city.
You are associated with them. That is extremely alarming to
me. And I can say that because my taxes paid your salary,
and all of you all salary, this is not a gay, whatever,
agenda you have, you better get it straight and you better
be honest because the truth is coming out about what is
really at stake here and who's going to profit, I am not
okay with you telling black people that we have to accept
these people from around the world. Nobody is more
oppressed by America and in America than the Black American
descendants of child slavery. I'mma say that again, there
is nobody more oppressed than us. Nobody, but step aside,
and let everybody have a piece of the American Pie, but
y'all pay for it and watch everybody rise. This is
unacceptable and we are not being quiet anymore about this.
As I said, go on the record. You are a very dangerous
individual for this city and you don't need no more power.
Thank you.
Thank you, thank you very much. Um,
We also we also like to recognize other person Rosana
Rodriguez. That is joining us on online. It was a
previously approved. Um,
Uh, our first order, this concludes our, our public
comment. We also had 20 written comments, submitted to the
committee before yesterday's deadline, which were emailed
to committee members and included in your packets. Uh, 12
written comments were in support of the agenda in the item.
Number 11, the Department of Housing loan to restruct uh
long restructuring ordinance.
6 were in reference to the item number 13 on the agenda.
And 1, written comment, was in support of today's subject
matter hearing, um, that concludes our public comment
section or for, for a first order of business is the rule
45 report from July 10th 2024, which was email and handed
out to committee members. I hope you all got your, your
packets. Can I get a motion to recommend approval of this
report?
So moved by all the person Jesse Fuentes all those in
favor. Say I
All those opposed say name and the opinion of the chair,
the eyes have it now, will we move on on the items before
the committee? Um, we will begin today's meeting with a
subject matter, hearing with the Cook County board of
review. There will be no votes taken on this subject
matter, but as you can hear, also, for the public comment,
there's a lot of conversation and a lot of concern about
property taxes, property tax increases the
Work of the housing committees to represent all Chicagoans
and just to clarify. The 3% income tax that is on the is on
the referendum for Statewide. Uh, consideration, actually
is allocated to relief, property taxes. So, just want to be
clear for for the facts. Um, now we have someone who's not
a stranger to our Council, former colleague, commissioner
George cardos? And we'll begin with the presentation on the
secret breaker, uh, program legislation. Uh, we also have
on the box, uh, from the board of review, uh, Juan mansano,
Mike Richards and Shane Beck. Uh, we also have uh, beashea
Sams who is feeling in for Neva, uh, book book, books,
books from The Institute of Taxation and economic policy.
Um, that will be followed via Zoom as well. Um, if you have
any questions, we will take him up to the presentation. Um,
so now we have commissioner Cardinals to to start us off
and uh followed by the people on the box.
Thank you, commissioner. Well, thank you. Uh, thank you
chairman uh for Ukraine introduction.
uh, I want to thank the members of the committee here on
housing, uh, I know many of you
Uh throughout the years and thank you for your phenomenal
work, advocating for your constituents uh in all matters.
Uh, that's the job of the Alderman and older person uh, to
look at the minutiae of city life and I'm proud of all of
you guys that do it on a daily basis.
um, as you stated chairman
Um, itep is known as uh, is sort of taxation of Economic
Policy, also, it's here. Uh, they're on view. I hopefully
they're they're there.
Uh, and they're, they're experts in this field.
Uh, of property taxes, uh, as they've helped other states,
uh, maneuver or navigate the topic of conversation that
we're having today.
And um, my teams here, uh, as they were introduced, uh,
many of, you know, Juan Manzano as my chief of staff.
uh, Shane back joined this, uh, about a month ago, it's a
phenomenal, uh, policy, uh, oriented individual that came
from, um,
uh,
the East Coast. So he's well versed in this topic.
And then we have uh Mike Richards. Uh he's my policy
director. Um I know matters at the border review.
Um thank you for the opportunity to address you uh this
important issue today.
I'm here to present the Illinois, circuit breaker program
uh a legislative proposal.
Uh, aim at delivering, meaning will relieve the homeowners.
Uh, non-homeowners.
And renters alike.
Those who have borne the brunt of Illinois, property tax
crisis for too long.
They're in this proposal.
Um, why we're here?
Uh, it is no secret. Uh, you see it in the headlines
cranes, rain, uh, articles just past weekend the Tribune,
uh, the sometimes
Um, a little residents are struggling.
Under the increasingly regressive property tax system. We
have in this in the state.
Last year, we saw significant spikes in the south suburbs.
Where some taxpayers saw their bills. Double
Now, uh, in Chicago, we were under the city trees. This
call reassessment
um,
Neighborhoods like pilson, uh, where the chairman uh
represents.
The community here in Chicago. So uh text Heights of 91%.
uh, since 2021
These increases had communities of color, specially hard.
Hispanic and African-American families are facing
unbearable tax burdens.
and you know, this is not just about
Uh, taxes. It's about fairness.
right now, property taxes are divorced from a person's
ability to pay
Well, middle class homeowners are spending up to 6% of
their income and property taxes. The wealth. The wealthy is
residents are paying just 1%
the next inequities ownable.
It is forcing families out of their homes.
Renters to their higher costs and small businesses uh, to
reconsider their future in Illinois.
How does this Circuit Breaker Program help?
It offers a simple.
Fair solution.
It links property taxes to a person's ability to pay.
Under this program, no household with our homeowner or a
renter. Will pay more than 5% of their income and property
taxes.
If your property tax burden exceeds the threshold, the
state will issue a rebate for the difference.
This is about protecting families.
Homeowners will no longer have to worry, about losing their
homes.
Due to skyrocketing tax bills.
While renters will benefit from stabilizing property,
taxes. That often drive up rents.
additionally by providing relief, we're creating an
environment where communities can Thrive instead of facing
the constant pressure of rising housing costs,
Illinois has a second highest property taxes in the nation.
A typical annoying homeowner pays double the typical
American homeowner according to the 2020 222 census.
Bill Illinois's, excessive Reliance on property taxes. Make
our tax code.
1 of the 10, most unfair codes in the country.
In last week's cranes series of columns.
And articles about property taxes.
Someone we who, we know, well.
A long time servant.
Our former Governor Pat Quinn.
A longtime advocate of Equitable Tax Solutions.
Also outlined similar strategies.
In his proposal.
He noted.
The legislature in 2021 passed a property, tax relief fund.
That we get to use.
but this fund,
if you use properly,
Would act as a buffer.
Ensure municipalities have the resources they need while
allowing the state to provide targeted relief to those most
affected by by property tax spikes.
why now,
We've been at this for many, many years.
I think, Pat Quinn tried to pass something. When he was
governor back in 2010, 2011,
It didn't go anywhere.
but,
you know, timing.
It's a funny way of showing up.
Telling you, that the crisis is here at your doorstep.
We are at a critical moment.
More than ever property. Taxes, have never been more
disconnected from what illinoisans can afford to pay.
And the burden is only growing.
The circuit breaker program offers a clear pathway to
restore fairness and stability.
It's also worth noting that 30 other states.
Have already some from a circuit breaker.
And it is time for Illinois to follow suit.
We Believe with the property tax relief fund.
And the proposed.
Constitutional Amendment.
Religious focus on the fund.
And what we can do now.
The amendment is on the ballot. This November?
but with today,
we all collaborate.
If we all join together, we are an opportunity to not just
provide immediate relief.
But to create a long-term solution.
The lynx property taxes to a families can afford. No more,
no less.
This is about in the end equity and fairness.
Giving illinoisans to security, they need to stay in their
homes and their communities.
Again, why are we here and what do we need from you?
We're obviously, we're asking for your support.
Not only for the legislation.
But for the Border movement to make Illinois, a fair more
Equitable state for all its residents.
I urge you to reach out to your fellow lawmakers.
In constituents. Making it clear that this program is a
Lifeline to homeowners renters and most small businesses
alike.
And with your backing.
That willing.
We can move this legislation forward to make Illinois, a
state where property taxes are fair.
And no 1 steps out of their home.
Thank you. And I look forward to your questions after the
presentation by itap.
Thank you. Commissioner, go ahead. And if you can,
introduce yourself, also for the record. Absolutely. I'm
Mike Richards, uh, policy director for commissioner
Cardinals at the co County board of review. So, we wanted
to quickly go into a little bit more specifics of what the
circuit breaker is and what we're talking about. And then
the in uh we have a think, tank The Institute for Taxation
and economic policy. Who's going to talk to you a little
bit about what other states around. The country are doing
and what successes that they've seen in making property,
taxes, less regressive. And so,
Uh, what a circuit breaker does, is it alleviates the
property tax burden on working-class and middle-class
homeowners by telling them, that their property tax
liability to their ability to pay. And it makes sure the
property taxes don't exceed the manageable percentage of
the household income. It's the commissioner just said, 1 of
the problems we're facing in Illinois. Is that more and
more your ability to to pay is getting divorced from your
actual Property Tax Bill and that property, tax assessment
and especially here in Cook County.
And so, the 3 stools of a circuit breaker. And this is the
proposal that the board of review has been working on and
has been talking with chairman Sika Lopez about. But, uh,
it could take a lot of different forms. What we're talking
about in this proposal, uh, the instance would be so the,
the income threshold where it gets cut off, would be 75,000
in this instance. It would uh, be set near or at the
state's median, household income other states. Uh, Ohio
proposal was set at 60,000. Michigan does about 60,000,
which is near near their median income as well. And then
you're going to have a property value count, uh, so that
the benefits aren't going to uh, somebody who might be
under the the threshold because of they're only on
retirement income but they have a million dollar house. Uh
this proposal we're setting it at 350,000 which is Believe
It or Not, the current median sales price in the city of
Chicago. Uh and you know
There are states that are seniors. Only there are states
that are non seniors.
And then you're going to have uh the credit calculation is
then the other thing that you're going to need is what that
threshold, what that actual circuit breaker is going to be.
In this instance, we're saying once property taxes, reach
of that income then you would be eligible for a credit.
Which there are states where it's a full credit up to a
certain amount. There are states where it's a full where a
partial credit on
That and there are states. That's 4% states where it's 6% in
in this instance. There would be 5 5 percent. So, if you're
making that 75,000, once your property, taxes are going
over that 3750, you would be eligible to start getting some
sort of credit from the state. Uh, and in this instance,
the credit cap would be 5,000, which, you know, there are
circuit breakers that varying levels across the country,
uh, 1 of the things that we've been hearing from
stakeholders that's really that would be really important
for the city of Chicago, uh, is
There are states that have renters inclusion. You can have
renter inclusion in this. Obviously, your renters are
paying property taxes, indirectly. Uh, and so, in this,
this instance, uh,
We're including the provision. Uh, there are states. Where
renters can claim a credit based on in this instance, 20%
of their annual rent representing
their property tax payments.
And then this would this would actually reinstate funding,
the state had a circuit breaker until about 10 years ago.
This would reinstate and expand that.
uh,
and so some of the other, some of the other people who are
pushing some form of circuit breaker, the Civic Federation
has been pushing 1 for a while. Uh, the treasurer's office
Co County, Treasurer's Office is interested. In.
Collaborating with this, you guys have probably seen the
Press reports that the the Cook County Assessor and uh the
property tax.
Working group are also looking at ways to make this uh,
sustainable bring this to be in Illinois.
And so, and the administration would be uh, it would go
through the income tax code. It would be part of filing.
Your state income taxes, the administration would be the
Illinois Department of Revenue and there are states and in
this proposal where you can have it be part of your income
tax filings and you can also have a standalone option. So
uh, it can be refundable. If people are not having to file
those income taxes, you can still benefit from that.
And it's, of course, something that it's it's not for high
income households, it's not for high value properties, and
it is for homeowners.
And we're going to.
I'll leave these slides because we're going to hear from
itap in a second but they're going to go into some of the
successes around the a country.
and so, I think,
I think we're ready to hear from them.
Thank you, will.
If um, but now that we have, um, all the person Fuentes, all
the spa for questions and um um anybody else we can get on
the the role. So all the all the person just went, you have
a question.
Oh, do you have any? So we finished the presentation on the
other questions.
Hello. Can everyone hear me?
Yes.
Perfect. Um, members of the city council's committee on
housing and real estate. I just want to thank you all for
the opportunity to speak with you all today. Um, my name is
bisha Sams and I'm a policy analyst. Like you said earlier
with the institute on Taxation and economic policy, we're a
nonprofit and nonpartisan research organization that
focuses on local state and federal tax policy issues with
an emphasis on Revenue, sustainability and tax Equity. So
today my testimony as it's been previewed earlier is to
talk about how circuit breakers can help with housing
affordability, while explaining how circuit breakers
function summarizing major features of the program across
the country and outlining important consideration for
policy makers like yourselves. Um, next slide please,
circuit breaker credits are probably the most effective tool
available to promote tax affordability, these policies,
prevent a property tax from being overloaded, by rebating,
back property taxes that go beyond the share of a family
certain income. So, to put another way, this prevents
family budgets for being eaten up by property taxes.
Because circuit breakers ensure that property taxes, do not
overtake their ability to afford other expenses, like
groceries, utilities, and car payments. And so, what we've
seen across the country is that there are other property
tax cuts such as Homestead exemptions tax rate caps and
limits on growth and assessed value. But there's no better
tax cut that offers a more targeted solution to property
property tax affordability problems than circuit breaker
credits. And so when you look at Homestead exemptions by
contrast which is you know, when you exempt a certain
portion of a home
value from a tax it's actually less squarely focused on the
issue of property tax affordability. Since they usually
provide less benefits to homeowners regardless of need. So
for example, when the exemption is provided as a flat
dollar amount homes that are worth, let's say $400,000
received the same benefit as homes worth forty million
dollars and then the percentage based exemptions are even
less Equitable as
Home as high value homes, received the largest benefits.
and another property tax cap that you also see across the
country is when you cap growth and assessment values and
these missed up marked by an even wider margin and these
policies tend to favor wealthier people into high value
homes that are appreciating very quickly. And what this
does is if you think about young families, like
Millennials, for example, who are seeking to buy their
first home, they don't Fair really well under these
policies because it's artificially holding down the
property tax bill of long time, homeowners and this pushes
more of the responsibility of funding local Services onto
new buyers. And we talk about fairness a lot when we think
about property taxes and the tax code in general and these
policies don't provide that. And so unlike tax caps and
Homestead exemptions circuit breakers, measure the
affordability of, uh, the affordability of property taxes,
relative to families, ability to pay
Thus making it a better option and a smart policy
investment for fair and affordable housing initiatives. So
it's not just better for the tax code, it's better for
housing policy as well. And I know we've been talking a
little bit about ability to pay earlier, but I want to dig
a little bit deeper and kind of describe it for you too.
Um, property taxes are based on a home values rather than
income and so because of that property taxes,
Is our dis are generally disconnected from the ability to
pay.
Um, considerations in a way that income taxes are not. And
so, the way you can think about it is that this disconnect
can create problems for families as their financial as
their financial circumstances evolve. So when you think
about someone who suddenly becomes unemployed, whether they
lose a job because of a recession or anything, they'll um,
find that their property tax bills actually unchanged. So
their house value may not change but they don't have that
income and so that they'll find out that their ability to
pay is greatly reduced. Though their property tax hasn't
been unchanged. So that's that disconnect between the
ability to pay and property taxes. And then looking at
people living in gentrifying areas, like say Chicago for
example and other areas of Illinois, which includes a
disproportionate share of people who are black or Latino,
they could also be harmed if their home value and property
taxes surge, but their annual income does not keep pace.
And so property, tax value, it property tax, affordability
is also a problem for renters, which we talked a little bit
about previously in the presentation. As, you know,
economists have looked at it and say that some of that, um,
cost of property taxes are passed down to renters and
renters actually tend to have lower income and lower wealth
than homeowners. So affordability is particularly acute for
this group.
And so, when you think about it as a policy maker, your
constituents are people of color renters. First time home
buyers, low income low wealth people. Among many other
demographics, and a property tax circuit breaker provides
that laser focused solution to the ongoing property to the
ongoing problem of property tax circuit breakers. Next,
slide, please,
Or a property tax affordability, my apologies next slide.
Actually this this is fine. Um the most common form of help
through a circuit breaker is a threshold style, circuit
breaker. And under this approach credits are calculated
using a formula that compares property tax liability to
income and offset some or all of the tax that exceeds. What
is designated in unaffordable under the program. So um,
Most states typically have this solid for circuit breaker.
When you think of a circuit breaker, this is typically how
it's designed it states, um, across the country. Um, next
slide, please.
Thank you. Um, as you can tell through this map, the
majority of States, so 29 States in DC offer some sort of
circuit breaker. But the policy is very widely in size and
scope. But this map underscores how the number of states
with and without this policy is a telling example to the
extent to which states really take this idea seriously or
charging taxes on families, based on ability to pay. And if
you look geographically, Illinois is kind of an outlier for
not having a circuit breaker, so, both Michigan and
Minnesota. For example, have really good policies on the
books. Um, Michigan's program is open to renters and
available to households making under 60,000 with property
values less than 270 or less. Um, the maximum Credit in
Michigan is 1500 while when you look at Minnesota's program
it too is available to renters and homeowners and
homeowners are actually ineligible
After their income exceeds about 135,000 and their maximum
refund is a little bit higher. It's about 3,300. And in
2021, I found some data showing that the average refund in
Minnesota was around $100. And so this kind of shows how
this money can go a long way for families in Illinois
because they can build more wealth. They can save for the
future. They can spend that money in local communities and
build up local economies. So it's really important when
you think about what you can do with a property tax, circuit
breaker, um, next slide, please
And to dig a little further about what the circuit breaker
can do for your actual tax code. This chart here shows the
significance of this kind of policy in Minnesota, which
again, has 1 of the most robust circuit breakers in the
country and not coincidentally among the least Progressive
overall tax codes as well. And so according to our
Flagship, who pays report 1, clear benefit of Minnesota's
policy, is that it transformed? What would have been a
steeply, regressive residential property tax until a tax
that somewhat closer to being flat throughout much of the
income scale? I think the vast majority of people would
agree that Minnesota's circuit breaker is leading to a more
equitable distribution of property taxes overall.
And Illinois should take note here because this policy can
really help. Make your state tax, go fare as well.
Currently Illinois has above average taxes right now on
working-class people, and a circuit breaker honestly is a
great way to make a efficient targeted way to bring down
their tax liability to a more mainstream level, and on the
whole Illinois level levies, what's commonly called in? We
call it an upside down tax code so that means your the more
the less you make, the more you pay relative to your
income. And So speaking of that study, I talked about
earlier called, who pays we found that Illinois ranks as
the eighth most regressive.
Tax system in the country. And if that's concerned to you,
which I think really should be concerning a robust circuit
breaker is a clear-cut way to begin moving in a positive
direction. And so, again, circuit breakers are an effective
tool. I know, I probably sound like I'm repeating myself a
hundred times, but they're really an effective tool to help
Working Class People afford to stay in their homes, which I
know is a really important issue for people's for people in
your community and your constituents. And this policy that
directly speaks to the issues in your community, um, is
really important. And so implementing a circuit breaker
again is a straightforward way to ensure that property
taxes can be set at levels that families can afford. So,
when you think about these Rising housing costs that we see
in the economy right now, people are unable to afford their
property taxes. That could be losing all this wealth that
they've accumulated over time. And so when you have a
circuit breaker that helps them stay in their home in a and
build that wealth and build off of that,
Especially when you think about people of color in the
racial wealth Gap. So this is an important policy to kind
of stabilize that, um, issue. And so next slide, please
so, I just wanted to provide you with my email address and a
link to our full report in case you
I think you're muted. I don't know if you can hear us.
Oh sorry. Um here's my email address and I just and a link
to the full report and I wanted to say that there's more
information in the report. This was kind of a quick run
through of what we found in the report in our data. But if
you have any more questions, feel free to reach out
anytime. Um, thank you for your time today.
Thank you so much. Um, and then again, anybody who anybody
else, who has questions we have so far all the all the
person Jessie Fuentes followed by Al thank you.
And I, I recognizing all the KA, and also all the person,
um, had him for the for the questions.
Thank you. Commissioner, and for all of the subject matter
experts that, uh, came here today to make this
presentation, I, you know, commissioner you alluded to it
in your introduction. We have 1 of the most aggressive, tax
formulas in the country uh and we know that Working
Families across the state are suffering as a result. And I
believe, if we have a robust, uh, tax breaker policy, you
know, we can make this, right, but it is going to require
some real thoughtfulness, um, in the design and in the
application. So,
Can we start with the design of the application? First? Have
we given any thought? Um, because we know when we Design
Systems that are opaque and cumbersome, the folks that is
intended to benefit from that system, often don't even
apply, uh, because they don't understand that system. Have
Have we thought about how we are going to create a simple
application program. So that individuals and families
across the state can benefit from this tax breaker.
You know, a lot of it is similar to what we do with other
programs um that are pushed out.
Um, but this is why we're here uh, because it takes all of
us, you know, our ecosystem to be able to push up the
information to our to our folks that we represent to let
them know.
um, it is 1 of the challenges in the appeal system where
only 25% of our homeowners appeal, the property taxes,
And which are our best to get the word out as you know, by
doing workshops and so forth.
Uh, it's a challenge and I think we all have to meet that
moment to educate our folks.
but I'll tell you, I think, as long as soon I mean it's
As people here about a credit.
Just like the income tax just like the earned income credit
when they hear about it, they know it exists and they're
going to go pull that. I really believe in that, that, by
that, by letting folks know that it exists, that they are
going to do everything possible to make sure they apply,
uh, and they get that money, uh, in their bank account.
The piece of legislation that is being proposed at the
state level for this tax breaker, Does it include a budget
line item for outreach?
That that is not um right now uh in the mix we're trying to
obviously push the idea how to fund it.
But certainly, the legislators can then.
when they're um, drafting the legislation, I think a big
part of that uh how to reach people is going to be baked in
in in the uh, Endeavor. Absolutely. So I I see, you know,
it's, you're asking the question. I'm sure. I'm sure others
will be asking the same thing. How do we reach people?
Um, in our budget, uh, the Board review, we obviously have a
a budget for staff. We have a budget for, uh, technology,
uh, for personnel and for, um,
Outreach. And we bake a lot of those things in there
because it's it's necessary and you see it that you how you
reach people. Is it a text? Is it an email? Is it a
publication? Um is it a third party? And so I think it's a
matter of advancing it and so we'll include it in our
conversations is move forward um, based on the input that
we're that we're getting from from you all.
I appreciate that and commissioner feel free to pass on
questions to yes. They they can chime in I think Mike
Richards is the 1 that does the presentations um, that you
um all attend. And so he's well-versed uh, as to what uh
you know what happens and how we uh deal with the
information flow Mike
Uh, specifically on your question Alderman, we are
absolutely working with itap to look at some of the program
design in Minnesota Michigan. We've had several thought,
thoughtful legislators already say that. Before, uh, before
they would vote for this, they want to see how that program
design is going and and Minnesota, especially uh, is a a
specially uh, widespread uh, and especially effective. So
yeah, we're we're absolutely going to have answers for them
that we can get to you on what the best practices are and
try to to make sure that that's design.
Designed for, uh, Department of Revenue because obviously,
this is dropping more work on their lap and we want to make
sure that that gets designed. So we're not just going
through the motions so that this does help people as we see
in the property tax appeals and I'm sure you do, when you
do your workshops with us too, you know, the
The it can be hard to reach people and the hardest to
reach. People are the ones you most need to reach. And
that's something that we're we're keeping in mind.
I appreciate that. Can you tell me a little bit about how
are we defining income? Uh, because there are different
programs around the country and, uh, it's alluded to that
in their presentation. Uh, there is sort of this program
designed in New York. That hasn't really worked well,
right? Um, and it's often because of how we've defined
income, there are uh, broad income definitions that would
include something like like Social Security, right? Which
are families, that may be well below the poverty line. Are
we expecting to have this broad definition of income, so
that everyone is included in that threshold of 75,000.
Well what what property what property tax bills in
generally do is it's going to generally be for household.
household. Generally be for uh that adjusted gross income
uh for the entire household. But we're not bound by that.
So we'd like once again we would like to hear more once
again we want this to get to as many people as possible as
possible. It's going to be a big Bill and we want to
Make sure it gets written right amend it as necessary. I'm
the, those interested in sponsoring this, I think are
interested in that as well. So we'd love love to hear more
on that. Yeah. And, and these are things that I really want
us considering, right? When we're going to fight for
something like a tax breaker, there are seniors, there are
family households across the city of Chicago, that have
annual Social Security dollars, and it's not counted as
income. And these are the individuals that probably need
the tax breaker, the most, right? And so, I want us to
really be thinking about how we Define income sort of
stretching, that definition of income, when thinking about
a legislation like this at the state level,
Can we talk a little bit about what state legislators are
seeing themselves? Sort of carry this type of uh
legislation in the general assembly.
We've spoken with, uh, several senators and
representatives, some have raced the hands right away
saying, I want to carry it.
Um,
And I think we're all right. Our aim is to get to a lot of
the legislators and I think there's more than a handful for
sure. They want to carry the legislation and be a sponsor.
Um, there's an example, Senator Preston. We just met with
with him. He's from the south side of the city.
um,
Senator Cunningham Senator Walker Mike, anybody else?
Well, uh, we have a upcoming meeting that we had to
postpone with, uh, with your, your representative uh, we've
had.
War Cook Counties, where reaching out to Cook County
legislators now but we've had had a lot of interest from
all over the county. Suburban Southside Southwest side,
North Side City, uh a lot of interest. Obviously, everybody
wants to know what to pay for is, but a lot of interest in
this
Yeah. Senator santis from Southwest side. Cherry St. Pilson
is part of it. Awesome. There's there's a lot of interest I
think that having someone carry that is not going to be an
issue.
um but for us is getting you the information, having a
conversation with a debated
Uh and then look at the finer points of it. What exactly uh
is it going to look like, you know? Moving forward. Yeah,
absolutely.
Thank you, I appreciate that. Um, I'm going to ask 1 more
question Sharon and I think maybe if we have time I could I
could do a wrong, we can do a round 2. I promise. I'm
asking questions because I care about the issue, right, and
I think that good issue. Yeah. And and we gotta, we can't
just pass this sort of like, you know, weak piece of
legislation is not going to do the job that we intended to
do.
Hypothetically, let's say this passes in Spring of 2025. Can
Can you just articulate to me? What's going to be the
experience for taxpayers, in which their second installment
is due in July?
Well, it's it's not going to directly affect that property
tax. What it would do is so your, your taxes, theoretically
in 2025 would be eligible for that refund either
Standalone. If you're not well, if the state passes a
refundable option uh either Standalone, possibly refundable
or as a markdown on those income taxes. The next year, if
next year, if you're going over that threshold, we're
obviously looking, you know, every day we're looking at
ways to make sure that when people get that yellow bill,
that second installment, Bill next year, it's not going to
be as scarring as it was for some people this year.
I appreciate that. Uh, I'll save questions for Round 2, if
we have time. Commissioner. I'll say this. I think if, uh,
if we can move forward, I would love to be a part of the
think tank. That sort of really thinks through some of the
nuances of what this piece of legislation can look like.
And, you know, even getting my, uh, local electeds both
representatives and Senators to sort of participate in that
process, I appreciate that. Um, we are working obviously
with the chairman housing, and, and some of the uh,
Community organizations
Um, so we're you know, we're some critical mass. We are
meeting with all kinds of different stakeholders on a daily
basis. With as many as people as we can, there's broad
consensus and getting something done from the treasurer's
office from the assessor from, you know, the president's
office to to us
to legislators. It's it's just the information and in the
how
But I think there's definitely a blueprint of how to get
that done, right. Uh, if Pat Quinn, did it took try to do
it 20 I mean not 20. Let's say 15 years ago.
It's been tried. It just hasn't been successful but we
can't wait anymore. It is pretty pretty obvious. This needs
to get done how to fund. It is pretty clear that it can get
funded, uh, these are decisions that got to be made, but if
you build critical mass at the rest of this level here,
especially here in the council, people are hearing in the
gallery as well and it's going to carry through in the mass
media. The uh, sometimes picked up the, the iPad right away
because they know it's an issue cranes has been riding on
it and I'm sure the Tribune's writing stories on it, uh, on
the fact that we have a problem, so we appreciate it and
we'll, we'll definitely include you. You you seem
passionate about it, we care about it as well, because we
talk to people, um, just this Sunday. I was, uh, I think
Belmont Craig, and by by, uh, uh, near Logan is a Polish
American community that had a Outreach and there was a few
older, uh, Polish women, that were crying because, you
know, they hadn't paid their taxes in 2022. And they're
like, look at this bill. How am I going to pay this year?
Haven't paid last year and they don't want to lose their
home. Uh so we're trying to find out how is it that we're
going to be able to help those folks, right? Uh, but it's
it's a, you know, when when people are crying in front of
you, there's not an easy thing to to face deal with. Uh, so
the the issue is real
Yeah, thank you. And I know humble park has been affected
severely by high property taxes. We certainly welcome your
advocacy. We got a lot of work to do, uh, all the mam.
And thank you very much chair. I'm really glad we're having
this conversation. I actually started learning about
circuit breaker programs, nearly a decade ago through, uh,
organization called St. Augustine college that used to be
in the First Ward now, in the mighty mighty 26th, um, but
our students, even at the time were interested in property
tax relief, and at the time identified, um, a circuit
breaker, as a powerful tool, in fact, I would recommend
reaching out to representative because already because he
was even at that time, someone enthusiastic about this
technique and
Like many great things that we had and don't have. Now, you
should look at what the router Administration did with the
circuit breaker program. We had a powerful and effective
property Tech, circuit breaker, which was really beneficial
for a lot of seniors in Illinois. That was completely
defunded by Bruce honor. So thanks again. Um but now we
have the opportunity to come back to this and to see
Synergy across so many levels of government, the board of
review, the assessor's office, the general assembly. Now,
the city council means that we can do such powerful things,
when we're all rowing, in the same direction as each other,
and I really appreciate that. I, I want to lean into you
Ottawa, woman Fuentes, questions around implementation and
design. We we talked about the 755,000 threshold and I'm
curious for those who do more,
Tax policies than myself which is a lot lot of folks over
there. How do we mean means test that number to make sure
that we're targeting relief appropriately towards those who
who most need it.
well, I think you, as you carry this legislation, I think
there's going to be a lot of
you know, uh, a lot of
Controls in place to make sure it it gets to the needy. And
that's, you know, that's that that's the homework. Um,
right now, obviously, we we're trying to get people
educated but those questions are are are what other people
are. So
uh interested in that we get it right uh the right people
are the ones that end up getting the help so it it
definitely will be built in into uh
The piece of legislation that is going to carry forward. We
have a draft of it, but I think people once people start
getting serious about it um carrying it uh they'll be
amendments. They'll be additions as you know, here. Uh you
know um doing the bacon here is no different that uh
changes are going to to happen. Just because there's ideas
and there's things that other be included in there. You
didn't really think before this is part of the process and
we welcome that
Uh, we want everybody to be part of the process and and
have their, their 2 senses. I I, I call everything my 2
cents because uh, that's all I can afford.
I I appreciate. Oh, okay. Uh, other thoughts on means
testing from from the box.
Well, sure. So
where you would set the means testing. That's it's really
more of a moral choice. I don't know that there's
economically optimal place to put it. And so, that's our
opening Gambit is that 75 to 78 thousand dollars because
that's the median income of the state. But that's a
discussion that's going to have to be had with the
legislature, all the stakeholders, uh, every the
stakeholders holders of the county trying to create that
and I would encourage you guys to chime in as well. Uh,
it's the higher it is, the more it's going to cost the
lower. It is, obviously the fewer people are going to going
to need it. We're going to have uh itap the institute for
Taxation and economic policy is currently modeling out
these scenarios in Illinois for us. And so when we, when we
get the numbers for how many people you can reach at each
threshold, I think people are going to be able to make a
more educated decision on where they want to put it.
I appreciate that. I I was also curious. It was
spoken of uh earlier about after second installment before
second installment. Rebates versus credits as we think
about the the many, many states that already have existing
programs like this. Is there a predominant form that we see
circuit breaker relief taking
They are I was oh go ahead. Sorry. No, I that's probably
best for itap. Yes, go ahead.
I would, I would say, but based on my understanding, most
seem to be refundable, but there are some states that do
have just credits that aren't refundable
But at least from what I've seen, they're mostly not,
they're mostly refundable.
Thank you, Miss Sams. Uh, I had 1 other question. That
struck me as we were looking at the 350,000 number
which is with a lot of models that have hard caps on either
income or assessed value.
I can only imagine the the anxiety that Creeps in.
when your assessment, when your income gets just above
that,
Are there circuit breaker programs that that phase out your
rebate, your credit rather than having a a hard stop? How
do we design policy in a way that
Eliminate settings that anxiety like the day.
3 years from now. Hypothetically. You get um, an assessment
and now you're at 351000. Um,
How how do we adjust for that kind of?
Externality with this policy.
Yes. So there would there could be I'm sure there would be
a final hard cap of the 350 or whatever. But there are
states Utah, for instance, kind of has a reverse
progressive income tax. Where if you're if you're towards
the bottom of the scale you get 100% of the credit and at a
certain point that starts there's there's the the trapezoid
trapezoid it starts going down. You're going to get a
partial credit up until that Max. And so that is something
that's other states. Do successfully employ specifically
Utah and so that other people can do it, we could do that
too if we wanted to, that's fascinating. That's a really
interesting model to explore. Thank you very much. Thank
you. Commissioner, thank you, Allah. Uh, Alum, more
Thank you, chair. And thank you. Commissioner and, uh, to
all of our presenters,
um,
I'm wondering if you could share with us a little bit more
about the existing program on the books for Illinois. So I
think you all mentioned we had a circuit breaker program
that was in effect until about a decade ago, um, for our
info, could you talk about um, what was the structure? Um,
because from besa's presentation,
It was like a an other we're in that other category. What
was the structure of our prior program? And how much
funding did we have? At the end of that program?
Uh sure. So what Illinois used to do? Uh there there still
still is a program, housed under 320 ilcs 25, which is the
Department of Aging section and it was a program for senior
citizens. It's part of some of these programs are still on
the books. Just not the property tax refund, funding it.
Uh, I in addition to budget constraints it was thought that
the the senior freeze was largely covering this, but the
way it worked at the state phasing out in 2013 or 2014, was
that there was a $500 credit that you could apply for
through the Department of Aging. You wouldn't automatically
get it because they had a pot of money and when it was
gone, it was gone. It was not, not just, they went up to
everybody who applied and was eligible got 500, but senior
citizens could get a $500 rebate, check. If they met the,
uh, the requirements then, which were also more stringent
than this. It was something kind of for low-income seniors
along the lines of the
see what the senior freeze is also doing and the parts of
that program, that continued there still are circuit
breaker programs in Illinois is I'm sure you're familiar
with the the, uh, the discounts on the license plate fees,
that's technically a circuit breaker program that goes
through the secretary of state that still is in existence
and the the transit passes.
The free Transit passes for low-income seniors. Uh, that's
that's another surviving part of the program.
Maybe through, thank you for that through the chair. Um,
could you all get us the data on kind of the outcomes from
who benefited from this program and the state? So it'd be
good to know. Um, the structure makes sense, okay, $100
rebate checks. Um, if you could get us information on, you
know how many years was that in effect? What was the line
item in the state budget for that? Um, and how many people
that served and if it's possible? I don't know if the state
has demographic information for we could say, just the
Chicago for the city of Chicago, that would be great, um,
through the chair.
um,
and then I I'm wondering um, and this is open for all of
our guests to
Which which Illinois General Assembly members? Do we have
currently that you're in conversation with? Um, and I asked
us because I say this sounds like a fantastic program. Um,
I especially like the aspects of the renter inclusion. I
represent the 49th Ward which is 75% renter. Um, right now
our constituents are really struggling with the increasing
costs.
Of Housing and people are being displaced, they're having to
leave, right? Um and we're in Rogers Park, there are not
too many places that are as affordable as Rogers park
anywhere in the city anyway. So that means a lot of people
are having to leave the city. Um so thinking about how this
could help and I think that that figure in the presentation
was, hey, maybe up to 20% could be helpful for renters. So,
um, I'm excited to partner with you guys on this and make
this a reality. So that's the spirit of which I asked that
question. So which which general assembly members? Are you
talking to um, you know, and and
Yeah. How do we, how do we move forward with that? Oh, here
I I I think Shane Shane you go through, you're the ones
that uh, scheduling um, I can remember. Once I can tell you
senator,
Uh, Cunningham Senator Walker, Senator Cervantes, Senator
Preston, Senator. Preston was, hey, I want to carry it. Um,
emphatic, is that this is
Part of my Ally, um, especially with this constituents.
uh, others, um, obviously, they like the idea that the 1
it's a little more information, uh, about the cost, uh, at
about implementation just like, you guys are right now. Um,
but a handful of them were already in the ones that we
talked to like, absolutely. How do, how do we get involved?
Let's, let's let's do this.
It just if you let's I'm great. Well, Shane will take the
information your senator in the area as well. We want to
talk to senators and legislators because they're the ones
that have to pass this.
Um by coming here you just saying I support this. I mean
Senator would then take that into consideration and say
okay you know um my stakeholders my older person and so
forth, they supported so, you know, I'm on board. Uh, we're
meeting with as many as people as possible. I know some uh,
Senator, uh, Karina could not some technical issues
yesterday, but we were we had her on to to speak with her.
Um, I think we had we have somebody today at at 2 oclock. I
mean at 3 oclock, uh somebody else um, on on the schedule.
So every day we're talking to somebody, we'd love to have
your support and any ideas who to talk to so we can present
the idea is now
it it, as we talked to people, we get questions and we get
more information and then we start plugging stuff in so
that you know this thing just
Garners uh flow and then more information, by the time.
Hopefully, by the time we get to to The veto session, we
will have something robust already in place where it's a
matter of debate. Uh, we want to get there. And so your
help and just by helping with questions, uh, framing it.
Uh, how does this work? And who benefited, who didn't
benefit? Those are real questions that we have to dig into
the data. And we're getting the modeling from itap waiting.
Some other tax experts on on board. I think we're on
boarding 1 now.
Next week. So it's it's on and we're going to have the
tools. We're going to have the resources to get all of this
stuff. It matters that we bring this to people finally. Um
because you know, playing with appeals and, um, this person
got it, this person didn't get it, uh, because of X, Y and
Z. I think it just complicates things and I think it gives
people the wrong impression that they're not being
represented. We want to change that. We want to talk to the
real terms real dollars who's being impacted. Those numbers
are real 6%. Are folks pay more than the richest person.
You know, that's something to think about uh and it
shouldn't be happening in the state. Like Illinois, not a
progressive State like Illinois.
Thank you. Um, and I I want to follow up then. So timing
wise, what's your ideal time frame for this. So you
mentioned the veto session. Well, we want as soon as
possible. It's, you know what? It's I I call it critical
mass, I think, if we get it and and we start moving it, it
could be sooner rather than later. Um,
People are targeting the spring just because it's got a
little more play.
But if if, you know, if there's really a need and an
impetus to do something, you know, why not the veto
session, I I'm all in. I mean, I'll I'll cancel whatever I
need to cancel to make sure this thing gets done.
You know what I mean?
Gotcha, I'll let Mitchell's like, hey man, I'm with you.
I'm, I can't cancel church though because that's, that's
not, that's not good.
Um, fantastic. And then last question, um,
In and I I, I think I know the answer because I think
generally responded to this. And some of the other
questions, it sounds like this is, you said you're getting
a critical mass, you're just kind of bringing out the idea,
talking about this. So this might still be in formation,
but in your in your mind or with the team, do you guys have
an idea of the kind of agencies or um, offices that you
imagine, who would be like in charge of administering this
program
well, I mean
So the current property tax uh, Relief Fund.
Um, I believe the controller is 1 that sends out.
Uh, the checks, um, I think Mike, uh, alluded to the fact
that it's not a Department of Aging, but this would have to
be, uh, uh, in Revenue, um, where the money gets, uh, you
know, obviously gets in and gets out, you know, something
like that, um, and I'm sure the legislators will, will, you
know, will decide what, um, what agency, uh, will be, uh,
you know, put in charge of this program but there's
definitely, uh, already established a, you know, a
blueprint of how that could work.
Thank you for that and thank you chair. Sure.
Thank you. Uh we have now Alderman more followed by Alan
viegas.
thank you, chairman, just real quick and
so,
this is a, um,
80. When you file your taxes at the end of each year, they
can get a credit. They can have a. It's like a a credit
from the. You have to file taxes though. Correct.
To get this credit or no.
No, not necessarily if if the legislature wants to put a
standalone option in which you could apply for a refundable
credit that you're eligible for. Even if you do not have to
pay taxes, they could do. So and there are states that do
so
the, I guess the, I guess the difference is that this is
for property taxes. So, when you say file in taxes, you're
thinking of income taxes, but this would be a credit
against your property taxes, it's just your income is what
it would be based on. That's the eligibility piece.
so you don't have to file income taxes to get it or well it
depends on what the lawmakers want to do but you wouldn't
have to file your income taxes but this would be based on
the percentage of your the the property taxes as a
percentage of your income.
If that makes sense. It's important to uh, hear what she has
has to say. Because imagine if you get a refund, an income
tax refund by the state,
you know, that where the money is going to go, right? It's
not going to go up to pay a property taxes. I mean, because
you don't know, sometimes your money hits your account and
you have auto debit whatever you got going on. Go on. Uh it
should pay your property taxes. You go credit your property
tax bill.
so that at the end when you know, that bill comes
You you won't even know it is like oh wow, great. It's it's
already in there.
And so I'm I'm trying to see the process of it is through.
So as the credit based on the
Assessment bill, the treasurer who who's given so, so, so,
so for, for example, so they want to do the your property.
Taxes can exceed 5% of your income. So let's say you make
$10,000 so 5% of your income will be 5,000, but let's say
your property tax is $6,000 that year. You would get a 000
dollar rebate of your property taxes, that's how the
circuit breaker would work.
from the
and that would come from that property tax relief fund is,
is my understanding that would be from the state. Yes. But
it's based on your property taxes and the fact that you're
under the income threshold. So yeah, you make 10,000. So
you meet the eligibility criteria and 5% of your income is
5,000, but your bill is 6,000. So the difference between
the 6,000 and 5,000 is that thousand dollars so you would
get that thousand dollar rebate of your property taxes.
and and but but when you use that word Relief Fund, it's
going back to the circuit breaker that I'm used to is
Going to. And I, and I and I can't remember if somebody.
If this was answered clearly. So it's is that a limited
amount of money or it's clearly for everybody. I think that
that, that, that would be up to the lawmakers. So it would,
it would be that's a program designed question. So you
have to work with your lawmakers to figure out how they
they want to design the program. But um that I was just
doing like a plain example, like just a plain like
mathematical example of how it would work. So that's not
that that then that part has not figured out yet then.
Yeah. That I I don't.
I don't think that Parts have been figured out yet. No.
Okay, at least in my understanding, no.
and then it helped me with the renters,
the renters credit work. Let me, let me, let me, let me
finish.
when we're talking about the 20% and if I'm and it and is
that renters based on if renters are
Part of their rent. They pay property taxes, or if it's
I'm increasing my rent because my property taxes went up
and I'm passing off to my renter. So first of all, let's
deal with that episode right there. So if I'm a renter, is
it just because I passed it off to my renters? Or is it
because it's part of my rent?
and part of my lease that the renters pay the tax,
the, the 24% is,
basically, it's it's basically it's a basic assumption
saying,
20% of your rent, goes to property taxes, that's all I was
saying. That's, that's just a number that you can say, on
average, you, you know, maybe 20% of your rent that year
went to property taxes because your landlord who's, you
know, leases your apartment, you pay 10, you pay a thousand
dollars a month. That's 12,000 dollars a year and the
Assumption might be that 20% of that 12,000 went to your
landlord's property, taxes
Because your landlord was not going to pass down 100% of
their property taxes to the renter. There's a portion.
They're going to pay. And they're just saying 20% of what
you paid in rent went to your landlord's property taxes. So
when you enter in your rent information, you just multiply
that times 20% and that'll be your credit.
So that's an assumption. Yeah it's in a. So that's my yeah
that's how we would do it. Like mathematically like it's
probably an assumption but the number is it there's
probably some like logic behind the number but it's it's
it's a lot of econ. I don't want to get like behind too
much but
That's how we that's how usually works in like other
states. Like when I lived in DC, they have a property tax
credit like that where I think it's like 10 or 15% of your
income. When you're a renter, you can get a rebate. And
although I say, and, and recognize this assumption, I know,
as a farmer, um, landlord and that's why I had to get out
of it when you find, you got a good tenant, right? Um, You
10 not to go up if you don't want to lose that tenant, so
you may not even park, pass it off, you may absorb it. So
then my next question is then what is that? Is that a
double dip?
episode, or I'm just asking or
I mean, I think it's 1 of those things where it's like you
you have to think of the whole like
It's like the whole economy, like you're thinking of the
whole state, like you're thinking of all the landlords like
you would think.
All I mean it's it's like the whole it's not just 1
landlord like there are a few landlords that probably do
the same as you. But I would think like the assumption
would be majority of landlords passed along their property
taxes. Like when you do the economic analysis,
Right? Like that's how the that's how the math would work
out. Like there's research from economists saying that some
of the, the incidents of property taxes are passed down to
renters through their rent.
Like when you think like I would say, if you think about
like large, um, apartment buildings, like, for example,
like that, like, you think a big, you know, high rises and
stuff like that. Like, they pass down their rent. I mean,
they pass in the property taxes through rent.
Like when you think of like large apartment, I think it's a
good start the devil's in the details. It's still progress.
So exactly, exactly. You know, but it's a good start. Thank
you so much. Thanks for your questions, I appreciate it.
Thank you, Elder more Alias, followed by all the women Dow.
Thank you, Mr. Chairman uh question. Um,
It was stated that this program was in existence over a
decade ago.
What was the funding mechanism back? Then around this whole
program.
It. Uh, go ahead.
I'm not sure uh, about that but it was
It was zeroed out in in the Quint Administration by the
legislature for lack of funding. I don't I think it was
probably just came out of the general pot even though it
was through the Department of Aging and didn't have a
dedicated Revenue stream,
So, and the legislation that you moving that you're putting
forward in Springfield, what's the funding mechanism there?
so that, uh, that would be a separate piece than the the
specific legislation. But what we would be looking at is uh
uh, funding this out of that, uh, amendment 3 in that that
Illinois property tax relief fund, that that would need to
get funded to pay for this. So, so if I'm hearing you
correctly, you would have 2 pieces of legislation 1. That's
the structure of the program, and then the second is the
appropriation.
Uh, to an extent. Yes, we this legislation would change how
circuit breaker would work in Illinois. Uh, there has
already been legislation that the Illinois Property Tax
Relief Fund was put on the books on uh unfunded in 2021 so
So that that is on the books. And then amendment 3 is
already on, on the ballot and so that 1's going to be up to
the voters in November.
So there's the intention to do something about property tax
relief.
In 2021. So they passed uh right that legislation. Did the
the ga did they identify a potential funding source? Well,
it gets spit on the controller's office. I don't think they
identified a particular funding source. It just there's,
there's a for the like, the Assumption, uh, so the home, so
I had done some re so I had done some research on the old
circuit breaker program.
And it said on like there's a website that has a little,
like a, it's kind of like a database for circuit breaker
programs, but it says that the state reimburses all the
local government tax laws, and that the Illinois Department
of Revenue will disperse payment of a property tax Grant in
the name of the claimant subject to annual appropriation.
So, is that what you're looking for? Well, well, yeah, so
so yeah, it says that there will be subject to to
reimbursement from annual appropriation. But again, what's
the funding mechanism that that drives the appropriation?
Um you basically saying we're going to, I think it's a
property tax relief Grant. Is that what you're? Okay. So
how's that? How's that property house? That property tax
relief Grant funded how what is the money come from? I I
guess this is where I'm trying to get to
Oh from from the member 3 uh if amendment 3 passes, it would
would create a 1.5 estimated 1.5 billion dollar fund that
already by Statute. If that passes the money that comes in
would go to this. Illinois property tax relief fund and so
the discussion is,
What form would that property tax relief go to? Would it
be, would it be through more of a, a circuit breaker and it
can go to different things within this fund? It would it be
more of a circuit breaker or would it say everybody? Every
taxpayer every homeowner in Illinois, gets say a flat
check.
But part of my ignorance on this. What is amendment 3? I'm
sorry. Uh, there's a Statewide Constitutional Amendment.
Uh, that would tax tax tax millionaires at 3%. Oh, I just
think it's over a million dollars. Just a binding
referendum or yes.
The legislature has put a a constitutional amendment
similar but different to the to the progressive income tax.
They they in the spring did put a constitutional amendment
on the ballot.
This is the 1, that that Quinn was talking about in the
article, in in the, in The Weeknd section of Ukraine's.
Yeah, I didn't read the article, I apologize. I'll, I'll go
get. I'll get, I'll send you the article. So he talks about
it in that I think chair references at 3%, which some
people mistake uh, for something else. But is a, the idea
is that 3% would be raised for the property tax relief.
Gotcha. And for this particular, you know, for this
particular this particular uh uh scenario gotcha and and
and in that statute you guys are also putting language
around the reimbursements for renters or is that something
that's going to be propagated rules? It'll be for me and I
can answer it, but the the idea is to include renters in in
in, in the legislation and debate in terms of how that
would apply. I think this is various mechanisms. I know I
was talking about how that works in some other states, uh,
we believe renters should be in the mix only because a lot
of landlords now, pass on the property taxes to the
renters. Well, here, I, the reason why they pass it on is
because listen, at the end of the day, you got to pay your
mortgage, your mortgage and your preference tax, right
correct? Yeah. And so we got to figure out government how
to be a little bit more efficient but I but I think that's
part of, you know, making the soup. I mean, you know, the
idea is just to its garnering uh the ideas because they're
critical issues that need to be dealt with. We know that
they have to be addressed the how to first of all be you
know you said how we're going to pay for it. Yeah. Uh and
that's really the debate that we're going to have, I think?
In Springfield, obviously I'm not a legislator but some
will have to debate and and decide what priorities as a
state that we're going to have in order to fund this right.
Got you, but it needs to be funded. So the, uh, the young
lady from itep, like, what is the best city or state?
That's
Putting forward, their circuit breaker program.
Um, B bisha.
Be there for you here. Can you repeat that question? I went
out a little bit. Sorry, my internet. Of course, uh,
Uh, Miss Sam's. Um
who, who, who, who is the the, um,
The role model, what city or state is doing this, the best,
their their program.
I don't think I can.
I don't think I can say who's doing it the best, but I
would say Minnesota has 1 of the stronger programs like I
was saying in the presentation, because of how it's been
able to shift their residential property tax system, from
being.
like really regressive to a more to less regressive more
like flat structure system. And I think that's something
that really is something. You should definitely look at as
in Illinois and like policy maker. I think Minnesota's a
pretty good example of what it can do to promote like tax
fairness and making the tax code more Progressive
especially because Minnesota's like
The most Progressive has the most progressive tax code in
the country. Like if you want to, if you want to think
about overall progressivity of a tax code and make that
your, you know,
Goal. I would definitely look at Minnesota and they have a
circuit breaker and it's working to make it a better.
Um, property tax system. But I think honestly, every state
has room to grow with making their property tax circuit
breaker better. And I think this proposal is a good start,
but it can be. There are also things you have to think
about and consider when you're designing it to
Thank you. Thank. Thank you. Miss Sams. And in my final
question. Mr. Chairman is
Oh, did you want to respond?
Oh let me go ahead. I'm sorry. Um with the renters um there
seems to be there's going to be a lot of their needs to be
a lot of transparency between the owner of the property and
the renters in order to get to some number that would allow
for the eligibility of some type of rebate for the renters.
Because what I've heard is that as
The rents rents go up.
Its associated with the property tax, increase or whatever.
Whatever the the, uh, cost of doing business is to maintain
property. How how does that come into play? Because I, I,
I, I still own property. And and I think Alderman, Moore
mentioned, I've had my tenant for 10 years because I
learned early on that. It's better to not to raise that
rent, than to have a good tenant that you don't have any
issues with. But if, if if I'm if I'm continuing to have,
uh, property taxes, um,
Garbage, tax, water tax, all these taxes. Uh continue to
hurt the ability for the for my deal to pencil out my, my
mortgage to pencil out. How does how does that come into
play? Where? Um, I'm having the renter is, is looking at
what my rent, rental charges. What is, is there a
requirement of that? How does that work?
Trying to figure that out.
So the the renter uh the renter proposal is probably going
to end up being 1 of the the trickier parts that's going to
be in there. But what I we are currently looking at for
this would be in instead of say taking that assessed value
on your building instead of you having to send out a
statement that Pro rates, what your actual property taxes,
are for your tenants, uh, the proof would be B them,
submitting, that lease. And instead of using the actual
property tax, that that 20% would be assumed. So if you're
and it, you might end up having to submit that lease to the
Department of Revenue. If you want that money, uh, we'll
have to see how other states do it. Uh, say how the, the
Minnesota Department of Revenue is doing that and what is
easiest and most feasible with Department of Revenue. But
in that case, that would be the thing where if you're
paying ten thousand dollars a year uh in rent, it would be
assumed that 2,000 of that is going to property taxes. Uh
Although obviously different cities, have different tax
rates so that would jump around. So, whatever number that
the legislature put that at, it would be assumed that your
property taxes. And so then, uh, we've been talking about
the if that cap is 5 is on your income, is your property.
Taxes are 6,000. You get 1,000, I guess, let's bump that up
a little bit, so make that eligible. If you're somebody say
paying 20,000 in rent then, so that's 4,000. And if your
cap was at 3,500, then that's how you're eligible for that
rebate, because you would have an assumed assumed tax rate
there. That's 20% of that lease, but you would have to have
some verification mechanisms on on your lease. You have you
have the components older and so you have the income
component which easily you can obviously you file your your
income taxes.
Um, no different than how you also appeal because we need
your rent rolls. We need your uh you know lease or
something that determines, you know, what type of expense
your your experiencing. So we already have it in our
system. I think it's a matter of your systems kind of
talking to 1 another. Um, but definitely the, the
mechanics, uh, are there to make sure that, you know, we
get it right? And, you know, we don't just refund, uh,
Uh, in a meeting in a meaningless way. Got you cool. Well, I
appreciate the the dialogue and thank you for bringing this
forward. Thank you, thank you for your comment. Thank you
Alderman. All the women Dao, followed by Vice chair
Mitchell, and will conclude with Alderman, Elder women
myths. Uh, thank you Mr. Chairman and commissioner
cardinus. Thank you for the presentation and everybody in
the box and um, Miss Sam's. I uh, think a lot of the
questions I had relate to the rental portion of this
project and Alderman Moore MV Vegas have covered some of
the questions that I have. Um
Just want to be clear, the credit calculation for the
renters. There's no, uh, Val, it doesn't matter. The value
of the property.
That you live in, is that accurate?
Correct. That would be, it would be based on the lease that
would be assumed verification, should not have to involve
that assessed value on the property. And there's, we do not
believe that there's going to be any pay extra paperwork.
That would be required of landlords to put that into place.
Okay. And
Miss Sam, you mentioned that Washington DC has a renters
program but you um alluded to Minnesota's having 1 of the
best programs. Do they have a renter component in their
program as well? Yes. And let me pull up that number
again, um,
that it's available to renters and the income, their income
cap is um 135,000
Or around 135,000, sorry, it's like 35,000, like 400 or
something like that and they're, um, maximum refund though
was around 3,300 as well. I just rounded the numbers in the
presentation, but it's around 3,300, but yes, they do have
it to and then Oregon is the only state in the country that
has it exclusively to renters.
They only offer a circuit breaker, 2, renters. That's the
only state in the country.
All right, well, I would like to see through the chair. How
Those programs are administered. Um, because I I really
think I mean, I can see the homeowner
property owner.
How that could be kind of easy to do.
But when you add the renters, it seems like a
administrative nightmare.
Um,
with a lot of
paperwork and check in. And
And cost associated with that. So I would like to just see
how those other programs are running. So I request that
information through the chair.
Thank you, Mr. Chairman, happy to work with that. Thank
you. Thanks for your question. Thank you.
um, Vice chair Mitchell followed by um Aluma mitz
Thank you, chairman. Um, a lot of my questions have been,
um, kind of addressed. Um, but I wanted to, uh, Circle back
on, on on a few things. But before I do that, uh,
commissioner Carter's, uh, former Alderman, I, we were
chuckling, because you're still long-winded, that's what we
were laughing about. I think I was telling 1 of my former
colleagues. I got a lot to say. Yeah, no kidding. Um,
the the, uh,
Income.
I uh I want to I want to kind of circle back on that 1 um
ottoman Fuentes kind of mentioned it. We got to be very
clear on.
How we categorize, or how we Define income. Um, because
uh, a lot of our communities have, um, retired or residents
that
Don't have earned income.
And I think that would be the that would be the the the
difference. Um, and then depending on how this would uh you
you would apply for this, or how would be a how it would be
applied.
A lot of people with unearned income don't have don't
necessarily have to file taxes.
so we those are things we want to look at and I would
encourage us to kind of um,
as we go down this and I'm saying, we because I absolutely
want to be involved in in this um, to to involve somebody
from the IRS that actually, that, that, that could be in
that room to understand and and kind of go between those
little nuances elder. Man, I think you're, you're correct,
has to be through federal law and especially when file
income taxes or don't have to file income taxes. Yeah.
Because it's got to go through the state and then the only
way to get to the state is you have to file your federal
tax, right? So the state knows what that earned income I
mean that that uh AGI is yeah. Um so they can tax you
basically. So, no, we we're on the same page. I think we
get you the but just remember the definition.
If no earned income, there will be no AGI.
Right. Okay, where you going to say? Okay, all right, I I
would say um,
You could do like for example in a state like without an
income tax, like let's say, like Washington has a circuit
breaker program and they don't have an income tax. I would
I would say you can provide, um, you know, Social Security
statements or yeah, for or they also can provide their, you
know, federal tax statements. But if you're talking about
seniors specifically, yeah, they can provide their social
security, statements, pension statements or whatever. But I
think also with income, you have to think about which I
think AGI gets at Is wealth Holdings because you can have
low income but high wealth and I think AGI gets at that
because it includes capital gains and such. So I think AGI
is a really like good way to look at
The income threshold, um, for the program. Yeah, okay. Um,
and I won't go down that road with we I think we all agree
that the renting piece
will be a will will be a little difficult or we need to
flush it out a little more flush. But I want to put on the
table that for those homeowners that own 2 and 3 Flats
where their owner occupied
that could get a little hairy because if if I fit the
criteria and I have a 2 flat and based on what I so far,
what I've been reading and hearing so far, I own a 2 flat.
I meet the criteria I can apply for a circuit breaker and
then we're saying that that person that's that's that lives
in that 1 unit.
Could we can assume that 20% of the, of the, of the, of the
taxes being passed on? Well, ottoman, more mentioned that
are we double dipping at that point?
So that's that's, that's some, this, this going to be a lot
a lot of things but I I'm 100% supportive of this.
Absolutely. I think again depending on on that income and
pending on uh on with that leads with that cost is um it's
I mean, they're separate, right? And that person obviously
has exceptions and so forth if they live there.
Uh, we'll we'll, you know, it's, it's a lot of homework that
that we that we that we got in our hands. Uh, it's a
complex issue. No doubt about it and this is why it has
been difficult to to pass right to do something. Uh, but I
think that everybody agrees that
That, you know, we can't make excuses anymore as to why how
difficult it is. We got to get it done. So, by us this
dating And discussing it with your ideas and your
questions, we can craft something. I think we can, we have
the means, and we have the tools to be able to craft
something that can work is going to be perfect. No. Um you
know but can't be the the what are the the end of the good.
Alright. Got to make it work. Yeah and the last thing I
mentioned um
We we can't Overlook or underestimate.
When it comes to circuit breakers and and and and, and
saving on property taxes. I think with all of us, our
seniors come into my first
we it has to be a situation where they can actually apply
you know, to to to an early Point, um, in my office, a lot
of our seniors. Don't I mean I I did a several initiatives
each year where we actually our staff goes through our
seniors. Uh uh tax bills.
And we found that.
They hadn't received their exemptions.
That's right years. And so we literally had to do it
ourselves and go back to 3 years. Um, so I know firsthand
that these seniors. They they're not, they're they, they
didn't apply and and it's honestly I think you're right. I
think for me it's hard to understand as to senior, that's
75.
Um, why? Why can't they just get an automatic? Yeah. Uh, an
automatic exception. Right? We know the age. We know that
they need it.
Yeah, we we're making them reapply now, they may be they
may be, they may try to do that at 1 Point. Yeah, they may
forget, you know, my mom forgot for 3 years. I I didn't
know, you know, and until I I find out their taxable is
like 3 times what it was and she hadn't filed a senior
exemption, she filed a senior freeze and you know, uh,
because
Yeah yeah it's not top of mind but we but we need to do
better as as as, as a community. Uh, and as Leaders to to
recognize, let's not make it difficult for folks. I mean
it's not that complicated. You have the age, uh, you should
be getting it.
All right. See I mean it's all I have but uh, definitely
want to be be a part of, thank you. Absolutely, thank you.
I don't know if I had a, I think my staff was going to
prepare. Uh, a page where you could sign on to, it doesn't
mean that that you can pull off, but if there's a
a way that we can sign on just that so that people are
going to ask me who is supporting it. I want to be able,
you know, take off all the names that were supporting it.
Who are like, look from the, from what I see. I like it.
You know, you need more information? Yes. But for now,
yeah, put me down. I, I like to have like to leave with
some names today. If you don't mind, we'll be happy to work
with that and all the questions that some of the committee
members requested, uh, we have all the women meets. Uh, and
then we have 1 more by the person chairman. Um, most of my
question too have been asked but I wanted to find out as
we're looking at the taxes right now. Before we even deal
with the circuit breaker, what what is being done to
correct?
uh, the unbalanced of the tax assessment before we start
because you don't straighten out,
Began it at how we going to fix.
The circuit breaker you put it on top of.
the uh,
unstable.
Process. That's out here. Now.
some people are paying higher, some shouldn't
the poor pay and more, the rich paying less and some
communities. How do we balance that out before we even deal
with?
The circuit breaker.
um, other
I, I
I deal with this on a daily basis.
Um,
you know, every year we go through this exercise, the
assessments are made
and then the assessments get put out and then people get
their tax bills or at least they get a notice of assessment
and they know what's coming.
Um,
I think we're all working. There's a property tax uh group
group or a working group, as they call it. That, that me,
that's what I want to ask you. You had a working group.
And, and, and if it was on networking group, we need to
know that as well. We, uh, chair. If you don't mind,
obviously, the assessors on that work on the working group.
Uh, the president's office, the treasurer. Uh, what about
the resident? The people that well, we, we need, because
we're the stakeholders that are part of managing, this
complex system need to meet and see what's working and
what's not? And then I think we brought in
Specific organizations to help us. Uh, okay.
You know, look at this very broad way and bring it down to
a level. That's understandable.
Um, so we we we're with you on that it is a complex system.
Um, it needs work.
We all want to put our our best foot forward but this is
this is a little separate in the sense that we recognize
that system is never going to be perfect.
But in the meantime, we got to get, we got to help people.
And this had this system has to recognize that in the
Municipal. Way in a in a local way there's going to be
differences in terms of what how they apply and what their
needs are.
but the need for folks to
know that something's there for them. A Lifeline to offset.
Some of those costs has to be there. This is something that
we just cannot continue to ignore.
now, with staining
the the there's a complex system that needs Improvement,
you know, every day, that's we got to work towards that
Perfection. Uh, but the people, uh, that they get these
bills know, they're not going away. Uh, and the spikes are
not going away. Those folks needed, whether this system is
perfect or not, they still paying overpaying uh, uh, based
on their income. Give me 1, 1 1/2.
If it's something, that's good.
Why should it take so long to get it implemented? What's
the? What's the hold? Give me the in between. Well, whether
it's in Springfield OR
what's the hold up?
You mean, which 1? What taxes? Just the circuit breaker?
Yes. That's, oh, the secret break. Yes. Well, this is
something that has been around the idea in various ways,
as uh, uh, my staff was, was alluding to um, you know, it's
it's there's some things that from a priority standpoint
somehow escapes us, right? There's something else that
comes along and takes the focus away from that and then,
and then you don't deal with it in the next year, changes.
And then leadership changes. Remember Quinn, lost the
election. And he had another guy that had a different idea
and took out the circuit breaker, and so on, and so on,
we're back to Square 1, okay? We know it's needed. So we
need your help to get it pushed forward, uh, in the m in,
in, in the hands of the, the true stakeholders. The
legislature is going to make this thing happen. Well,
anything that's going to help the residents and, uh,
property taxes is 1 of them that, uh, they need help with,
for particularly for folks to stay in their home. Yes.
and um,
I support.
the concept of what you're doing, and
How to work with you to get it done.
Uh that's that's another we'll bring the donuts.
Absolutely. Well, I don't want to donate, I want the money
show me the money.
What? What have a meeting? Absolutely, no, my staff! Got
you down? We're gonna, we're gonna come with me with you
and okay. And uh, you know, bring bring some folks over.
We're gonna, we're gonna have a long session, okay. All
right, thank you very much, I appreciate it. Thank you.
Thank you, Mitch and and we know that the city through the
committee is now part of this effort. So we'll make sure
that everybody from the committee is aware and modified. We
have a point of clarification or just 1. Quick question,
does this apply to commercial know? Uh, tenants. No, no.
small businesses along some of our struggling corridors,
uh, it it would be through the rent abatement idea, which
is the people that if they have a, a mix uh, a mixed use
Flat.
That, that could be, uh, away, maybe they, they maybe they
live in the second floor, uh, of that. That's a way to help
them as well.
But we're not, we're not in this 1, we're not going to get
everybody, but we do want to talk about that. Okay,
something to add to the work.
Thank you. We have all the person Fuentes. Thank you. I, I
just have 1 last question. By the way, the policy 1 can me
is having a fantastic time during this subject matter
hearing. I'm hope to I'm hoping this type of diplomacy
translates to council.
so I I just want to be clear though, uh, because I did hear
about
Amendment 3 in November. Are we solely relying on the
passage of amendment 3 in November to fund this?
No, no, not necessarily. There's there's could be other
ideas on the table and so then my second question and this
is my last legislation to come up those funding mechanisms.
But yeah but you know as people who are proposing something
I'm in favor of proposing something that we think is best
for our city and not just allowing them to sort of
determine the parameters on their own. So we're going to
get, we're going to get, we going to need your passion to
say, Hey, you know, again I want to be respectful to the
process and I my my team is what we met on this. Because
You know, the legislators obviously have something to say.
And they know that there's going to be a funding mechanism
needed to Poland, get this done. Yeah. And the idea is not
to shove it down and you know what I mean idea is to
collaborate. Yeah, yeah, no no, no, absolutely look.
I believe that we need adequate tax relief but reliable
funding.
Absolutely, this design doesn't work.
Without reliable funding. We know that it's why there was a
bill passed that we can't even implement.
And so we have to be able to look at what sort of
progressive means. We're going to use to fund this. That is
not pulling from just another property tax. No, no, this
is, this is ideas of of potentially and higher higher tax
on on so. So, I'm interested, right? In sort of having this
conversation around, where does that Revenue pool come from
to Alderman Gilbert Villegas this point
Where the dollars. But unlike let's say, the progressive
tax, where people didn't know where the money was going to
go. We know where the money is going to go. All right, this
is it's going to go to property tax relief.
And I think people in the state and the county for sure
will raise their hands and they're like, I'm for that.
Help me. All right. It's about time we we get that. Is that
help me? We're helping you. All right. Well, I look most of
the time they like you raised the tax. I'm like where's it
going to go? We don't know. Well I look forward to to it.
Thank you commissioner. Thank you for your time and
and everyone in the Box 1 last question before before you,
and I was being appreciate that that you that you um, that
you came in from the community. There's a lot of concern
around raising property taxes, especially when the fiscal
gaps. Um, the the question definitely will make sure that
we talked about these referendum about Progressive Revenue.
That comes from people making more than $1 million. Um, a
3% will be
Less painful that people paying double or triple property
taxes. The last thing I'll say, in terms of short-term
immediate relief, I know you mentioned seniors that come
crying trying to ask for some help. Um, in terms of
short-term, again, notices, sustainable Revenue that we
need, but some of the residents in pilson, provided a did a
referendum early this year trying to use some of the
Surplus in Tiff to ultimately, this being collected by
property taxes for seniors who have been paying for decades
yet, they are not able to access. That, will that be per
se? Just like, in terms, I agree with my colleague in terms
of, we need long, long-term, Sustainable Solutions, but in
terms of just funding a program that already exists with a
tips Surplus Will T could be used at least in the immediacy
to help those seniors or low-income families that are
really struggling right now.
I don't know if we can, um,
I'll have my second me on this. I I spent, you know, 20
years in this Council
um,
that's something they could happen. It depends on the will
of the council depends on.
Uh, how you structure the Tif?
And the question, is it, you know, it's eligible to be
dispersed, it's eligible to to do this, right? So you,
those are the legal beagles here in Corporation Council,
for example, and those folks that work for for his office
to determine whether the eligibility and can and can be
triggered by that. But certainly, that's an idea uh
certainly there's there's money.
in the tips for short-term solution, there's nothing wrong
with people that live in a certain sector of the community
sort of benefit from the fact that, you know, we put this
money away for development and for some of the good uses
and it could be time to sort of for now a short-term relief
relief, sort of take that and say, you know, for the
benefit of the community, I could see that happening but it
has to be has to be decided here and the council. Thank
you. And I think that you had a. Did you have another add
into that? Or no? I, I would just second that. Yeah, under
current state, statute, that would be up to the
municipality, but that's something county is looking to
find a little part of money to do a circuit breaker this
year every bit helps. Excellent. Well, thank you so much. I
really
Oh all the women had I'm sorry. Oh, so that's 1, 1 1 last,
yeah, sorry. Um I didn't have any more questions until you
brought that up. So
you're saying that, uh, munisa under the city of Chicago's,
Tiff rules, or the state of Illinois is Tiff guidelines
that it's currently,
Feasible to use Tif funding in order to fund a circuit
breaker program. Is that what you're I'm saying? I'm saying
that you would have to check eligibility um, within the Tif
guidelines.
In in this, and obviously, in the city of Chicago, to see
if that's something that, that could be, could be done.
Gotcha. Um, I mean, we found all types of activities. Is
that something that that could be entertained that we have
to check? I, I don't remember because we never did anything
like that. Gotcha, but it could be something some, you
know, um, novel some something new that we could be looked
into. Yeah. And then maybe for I I don't know if pakisha or
folks are still with us and any of these models and other
states uh because right if we're using Tif which are
property tax revenues, um it seems a little weird to use
property tax revenues in order to give a rebate to people
who have paid the property tax. Um that seems a little
strange, I'm wondering if any of the other models
especially some of those best models that we were looking
at and like Minnesota. Um, do they use Tif dollars to fund
uh these rebates?
That's something I will have an answer to but I can get
back to you with an answer because I've never looked into
that.
That through the chair request. That would be fantastic.
Thank you, thank you so much and we also want to thank um,
thank you, commissioner. It's a good question and you're
right. It is kind of a just a position to to use property
tax money, that's been sort of put aside for something for
Relief. You know, you shouldn't shouldn't have done it in
the first place, I guess I
No.
Much. Thank you. Commissioner. We appreciate. Thank you
everyone for for putting out with my long-windedness. I'll
come back by the way. Yes, um, thank you, everyone. I
appreciate it. I appreciate your time. Thank you so much
and thank you all the members. I next, we have the second
item. Um, the appointment of Juliana Gonzalez crusie as
commissioner of the Chicago Housing Authority. Uh, so we're
going to give her some some time to come in. This is an
item number 2, and thank you very much for bearing with us.
Oh, we also going to recognize Alderman, Lamont Robinson
for the Quorum. He's joining us virtually.
and,
Juliana.
Maybe you can, you can join us here in the in the front.
You're gonna go first.
Um, Mr. Malone, I think you can wait in the Box. I think
you're gonna be after that.
So Juliana Gonzalez is present to give a quick, uh,
introduction and answer any questions from committee
members. Um, is there any questions or comments? Please
raise your hand and you'll be recognized. Um,
Yep. So all right, by the way.
So, go ahead.
All right.
Is this on?
All right, good afternoon, chairman cincha, Lopez Vice
chair, Mitchell, and honorable members of the housing and
real estate committee. I am pleased to be here with you
today for your consideration of my appointment as a
commissioner on the Chicago Housing Authority board
Thank you for taking up my nomination and I also want to
extend a special thank you to Mayor Brandon Johnson for
putting forth my candidacy.
The Chicago Housing Authority mission and vision is deeply
inspiring to me as they are rooted in a commitment to
transforming lives and communities.
By providing quality affordable, housing options, the
Chicago Housing, Authority, supports individuals and
families in achieving stability and improving lives.
For me, I see how this Vision extends Beyond housing and
encompasses a holistic approach that includes Supportive
Services Community engagement, and economic opportunities.
I hold the Deep dedication to Chicago and in supporting the
creation of vibrant inclusive neighborhoods where all
community members can thrive.
this dedication reflects my personal and profound belief in
the potential of every person and that housing Fosters a
sense of dignity hope and enhances the possibility of our
shared future.
I believe that housing is tied to the to building stronger,
more resilient communities, and it ensures that everyone
has the opportunity to live with dignity and purpose.
I am committed to working towards an outcome where
community members have access to Safe quality affordable.
Housing, my experience with serving on the Illinois,
Housing Development, trust fund Advisory Board. And on the
Chicago, low income housing, trust fund, has allowed me to
contribute, strategically to the development and
implementation of policies and resources that directly
impact underserved communities.
In my current position, as executive director of the center
for changing lives and my previous roles, including
director of housing counseling and advocacy at the Latin
United Community Housing Association. I have leveraged. My
deep understanding of nonprofits to advance housing and
address Community needs. My background as a senior policy
analyst on housing issues at the Latino policy Forum.
Coupled with my research experience at the Paul
University's Institute for housing. Studies has provided me
with a robust analytical Foundation to address complex
housing challenges.
moreover, my International experience including teaching
English as a second language in Mexico, France and China
has enriched my perspective on cultural diversity and
Global dimensions of Housing and Community Development.
As a board member of the Chicago area, fair, housing
Alliance. I continue to advocate for Equitable access to
housing, resources and work towards dismantling. Systemic
barriers. That disproportionately affect marginalized
communities.
I believe my extensive experience and background equipments
me to serve, effectively on the Chicago Housing Authority
board. It would be an honor to serve as a commissioner and
I look forward to advancing. The mission of the Chicago
Housing Authority by working with all of you. I hope that
this committee will approve my nomination and I thank you
again for your consideration.
Thank you Juliana. I'll do 1. Does any other members
Alderman more?
Thank you, chair, and Juliana. Thank you for being here
today. I, I don't have questions. I, I do want to let my
colleagues. Uh, know that I support Juliana hands down. And
I I want to tell you a little bit about why when we think
about the Chicago Housing Authority, and the Commissioners
that sit on that commission and the mission, that they have
to live up to in terms of ensuring that every single
resident in the city of Chicago can benefit from what is
the largest
Public good. And that is public housing. You need folks on
that commission to understand just how important housing
is. We know that when folks are seeking stability, we know
that when we're trying to resolve for issues of mental
health, safety housing, sits at the center of how we
resolve those things. No, 1 should be thinking about how
they're going to pay rent, or if they could keep a roof
over their head or do they need to pay utility bills or pay
that rent Bill, folks should be able to rely on a public
system that supports them and that begins with resolving
for some of the boarded up sites that we have across the
city. It begins with starting to resolve for. How do we
adequately spend the budget by Hud? It begins with looking
at what is the mission of the Chicago Housing Authority and
making sure as Commissioners that they are living up to
that?
I believe, in Juliana's ability to do that because her work
experience her dedication to community and her leadership
have proven that much with her involvement at Lucha as an
affordable housing developer in the city of Chicago. Her
leadership at the center for changing lives. A nonprofit
organization that on the every day are supporting families
that are navigating the cha system helping them through
Workforce Development, helping folks, get back into school,
helping our folks. Start small businesses. I mean, if you
want someone that gets it,
Juliana gets it.
And I am confident in her ability to get the job done and
to be collaborative because it's also equally as important
that folks in this body have access to the Commissioners,
right? It's also equally as important that the commissioner
is going to be responsive to the concerns with eyes and
ears wide open. Um, and Giuliana has been that at each, uh,
level of leadership that she has, uh, presented in the 26,
ward in Humble Park, in mosa and in Belmont Craig. And so
I'm excited about the possibilities. If your appointment,
um, and I asked my colleagues to support her. Thank you.
Thank you, Allenmore.
Thank you, and thank you. Um, alderman for 1 test, for
those kind words about, I want to apologize. Anybody that
tries to call me for any committee. I try to get back to
them. I found out a couple of days ago. I was out of town
that you had called and we didn't get a chance to, um, sit
down. Um, and I hope this question that I ask you based on
what, um, the things that, um, order them influencers just
said, um, the answer,
Would be the answer that I'm seeking so that we can move
forward on it. If it's not then if we I may have an issue.
Um have you sat down with the central advisory council
members?
if I were to be nominated in the past onto the Board of
Commissioners, that would something I would intend to do to
meet with people learn and listen about the issues at hand.
Why wouldn't you have called them to sit down with them
before the appointment?
Why didn't you call them beforehand to sit down with them
before you came before this body?
You know, it was a matter of time.
And I I look forward to having that I got you. I understand
that they are more important than we are. They were elected
to represent the residents of cha
Um, I used to work at Cha I was raised in a Chicago Housing
Authority and no 1 is more linked to those residents.
than um, those um
Um, local advisory Council presidents.
and,
I would ask the him, the same question because I would hate
to call any type of Quorum, those ladies. I respect those
ladies, I've dealt with for years over 20 years, and they
have a passion of, um, of the community. Um,
That, that should have taken place that that should have
taken place. And I, and I, I, I cannot, um, support this
until I know that that is taking place. Um, I'm almost to
the point that I have to ask to hold this item until that
conversation is had with them because I look for them for
feedback, your resume, is impressive everything that I'm
ordering for said, I believe it.
But I believe the, I believe in those women and and and
and that part of that um um advisory Council. And when they
don't have a say. So because I have to go back to them and
say XYZ, uh, I can't pass something without them having to
a conversation, I just can't. And so um,
I'm asked just to hold this item and uh, make a motion to
hold this item and if if not I I I don't want to call a
quorum but I will and uh I just want I just that
conversation got to take place immediately and so I I I I
know that you know they got their questions answered
otherwise we're disregarding um the key part because
there's been people come and go from this board. I've seen
it fit those they have been there.
And I can't and I cannot have them. Um um ignored. I think
there's a point of clarification but other person Fuentes.
Alderman Moore, can I ask that? We give time between
today's committee and Council on Wednesday to allow both
candidates to reach out, uh, to The Advisory Council
presidents. And if at that point, that, that sort of
communication and Outreach does not satisfy, um, your level
of expectation. And I believe a reasonable request by both
candidates that you can then sort of defer at Council. But
can we pass this out of committee? And give them the time
between committee and Council next week to do that?
Outreach? That is a fair compromise. If you saying you're
going to, uh, join me in that deferring punishment, if
deferring, um publish, if that meeting don't take place,
I, I will join you with the expectation that both
candidates reach out and schedule a meeting with the
advisor Council presidents. If you if you allow the passage
today, thank you so much. Um, I appreciate that. That's
what democracy is. You all? I will hold off. Thank you.
Thank you. Thank you all. Thank you all and is also just
another point of clarification in just in terms of
protocols because we try to you know, follow protocols as
closely as we can and we understand the importance of
listening to residents, of course. But Daniel I don't know
if you want to share in terms of like protocols, when
candidates approach
um,
the local advisory councils.
Um all the more. Um so Dan Kruse Chief of Staff of Chicago
Housing Authority. I just wanted to share, so the mayor's
nominated, these 2, um, nominees to serve on our board. And
board. And once they're confirmed, they'll be serving with,
um, the head of the CAC Francine Washington who serves on
our board, as you know, and they will absolutely be meeting
with her and other members of the central advisory Council,
but this is the first step, um, and once they're confirmed
and they, they will be meeting with the setup, I appreciate
that. But that's after the fact. And trust me, I know the
process. I know, I know it all. Okay. Um, and
It. I just need that to take place beforehand because if
they have any concerns, they can get them addressed before
the confirmation. And that's that's and I think, uh,
automated fluentes. And I there's nothing and no laws or
books that say they cannot uh, a candidate cannot meet with
the, um, Central advisory Council before an appointment.
Got it, there's nothing that says that and so did that. And
so we, we need to let make that happen and, uh, before um,
Council, thank you got. It sounds like a for, for
compromise and thank you. I'll do more appreciate that we
have. Ultimately spara follow for almond and then almond
Dow
Oh, point of clarification.
I just wanted to underscore as I'm walking in what I think.
I hear you saying Alderman Moore is that they have to meet
with members of the CAC. I definitely agree with that. Um,
so I wanted to just join the choir
Point will take him.
I'll do 1 minute to happen with.
Point information.
Um, mhm. There you go. Yeah, thank you chair. Um,
The criteria is that they have to meet with the president
or the members of the CAC.
In the request of alderman Moore is to meet with the
members of the CAC. That is correct. I just 1 person. Yeah.
And we'll make sure that, you know, we coordinate with cha,
and, and our committee to ensure that that happens before
the next city council committee.
Yeah. Well, we'll schedule it with the chah. We'll we'll
make sure to schedule it.
Yeah. Almond Danielson city government, and sister
agencies. Stresses me for a moment. Um, thank you very
much.
Chair Julian. I I could like just plus 1, everything that
older woman Fuentes said, so I'll I'll I'll only try to be
um,
Additive to what was shared to having worked with CCL for
the past.
20 years and knowing that amazing breadth of what the work
you've done there and how that informs what I believe
you're going to bring to the cha, I'll say to you quick
things.
I really appreciate the work that you've done with the
Chicago area. Fair housing Alliance cafa, is an incredible
organization.
I would encourage you with the fullness of your spirit and
and your energy to bring that value around affirmatively
furthering fair housing to the work of the cha.
That is.
A critical piece of what cha has been and needs to be and
to to push in that direction as hard as you feel
comfortable and I know that that is a significant effort
that I know you're going to make. I also say 1 thing, I
appreciate the work of the the CAC
I also want to flag that if you're a cha development that
has gone through the plan for transformation is now a a
mixed income development, you may not have representation
on the CAC anymore and that doesn't make.
The the values and perspective of those residents, any less
valuable or important, that is not a condition of my vote
today or at city council, but I would encourage you and I,
I won't even bother saying the same thing to to answer
because I know he's going to do it to to look out for those
communities that no longer have that representation, that
no longer have local advisory councils.
Because I feel like being a cha represent uh resident in
those situations.
Can feel.
Really isolating and disempowered and to to look out for
them as much as anyone else. Thank you. Thank you chair.
Thank you.
Chair. Um, Juliana. Thank you so much. Um, I, you know,
sorry. We didn't get to speak before, um, today. But um,
you know, thank you for stepping up to this call for
service and bringing to, um,
You know, bringing to the cha board. What? Um appears to be
a lot of both personal and professional experience. That
will be very valuable, um, and I'll I, you know, just also
wanted to add um, you know, thanks to Alder Fuentes for uh,
working with Alderman Moore on this. And um, I think more
for uh,
Uh Daniel and the cha team. I think that though it's not the
maybe not the standard process and I think this also give
give this to our own, uh, intergovernmental Affairs team,
Um, just to make things a little easier on the appointees.
I think this would be good to, like, add to kind of some
of, the advice, um, um, because I feel like this, this has
come up a couple of times, um, not specifically not always
with cha, but with cha, I think you guys always hear from
us questions about, have you talked to, right? The, the
CAC, like, have you done this? And so I think it would be
behoove you guys to, um, support these volunteers
As they're coming before us, um, and making sure that they
are doing those things in advance or that you have a plan
for them. Um because you know, they're busy, they're
working full-time. They're volunteering and doing this
the city um and they may not know if you're not telling
telling them that these are the expectations. Um and then I
feel like it makes it, you know, can delay. Things can make
everyone look bad. Um, so both from the cha and our city of
Chicago IGA side, if you guys can just make that a thing
that you help support them in doing going forward, I would
appreciate it.
And thank you chair. Thank you. Any, any additional
questions?
Otherwise can I have a motion to approve the appointment of
Julissa Gonzalez? Of course, to move all the person play,
all those in favor. Say I
Those opposed and the opinion of the chairs. The I have it.
So we congratulate Julissa for her appointment to the cha
board. Congratulations.
Uh, next we have um next we have Brian jawanza, Malone 2%,
give a quick introduction. Um, and then again at the end of
the at the end of the presentation, we'll we'll have
questions from committee members.
and we think, um,
With them, Mr. Malone
On the just for the clarity, the item. The the appointment
is item. The appointment of 20240011022 for the record as
the appointment.
Thank you, Mr. Malone floor is yours.
So, good afternoon.
I would like to thank chairman Lopez, Vice chairman
Mitchell and the entire Community for the opportunity to
address you today.
I want to also extend my homeless appreciation and Mayor
Johnson for the nomination to the cha border Commissioners.
I like yourselves do take this nomination very seriously,
For the past 4 years. I've served as the executive
director, for the weevolt foundation is a small Family
Foundation started here in our city in 1921 the 6 to 8 in
the health and wellness of all of our communities.
Prior to that, I spent several years at the Kenwood,
Oakland Community organization where I got to work with
some of you as we saw to address the needs of our
respective communities.
A particular interest obviously was the escalating need for
safe and decent affordable housing.
in addition to those official capacities, I serve on
different boards that reflect my interest in the media, the
Arts philanthropic, giving, and housing
Also, served my lovely wife as the endearing husband, and
my handsome son, as a doting. Father
I look forward to continuing to work in relationship. I've
enjoyed with some of you. And I also look forward to
launching new working relationships with the remainder of
you and your colleagues on the full Council where you to
accept my nomination. Thank you.
Thank you, Mr. Malone
are there any questions or comments from committee members?
I'll remember Bernard followed by all the women had him.
Yeah, Mr. Chairman I'd be remiss if I did not say anything.
Uh I want to commend cha on this pick. Um, I work with this
brother.
When he had hair and not my hair was black right back in
the day. Uh, actually we both, uh, along with all the
Miller Sparta at the time we, uh, you know, I was always
great, all the spot.
And Lil blah. Okay. Little blah. Okay. But uh we we all we
all fought for affordable housing for the original Aro uh,
to happen in the city. And we had we used to have several
meetings, uh, trying to organize. And, you know, and
Advocate and all of that good stuff. I learned a lot from
these guys.
At the time. Uh, um, this brother has been committed to
housing and helping people in housing from all incomes,
especially lower incomes in particular, on the south side
where he was from or where he was working at uh and has
gone on to um work for a foundation that helped
organizations like that. I think could be a great addition
to Cha. Uh, I know he can feel the cha people most of the
folks, he was working for and advocating for at that time
with low income, people who were being displaced, by cha
trying to make sure they have a place to stay. But also,
um, he understand the help organizations to be able to get
funding, uh, which I think is a good thing. Because
unfortunately cha when they did the, uh, the, um,
replacement for, uh,
the when they when they tore down on the projects they had
hope 6 money and all of that money is pretty much
dissipated and now with every deal that they have, they
looking for more money. So they need someone with a
creative eye, who knows where grants can come from and
other funding can come from to help make these things
happen. Um, I know your commitment have always been to help
people, uh, with housing. I want you to recognize that
um, some folks have been displaced from their housing for
over 25 years and they need to come back and Cha need to
get on the stick and move faster. You know, to try and
allow those folks. Some of them probably as old as me or
older, a lot of those folks to be able to come back to
their home. That was the commitment and promise to a lot of
those people. And those promises haven't been uh, fully
fulfilled yet and it's still a lot of work to do still a
lot of land is vacant, you know, and uh, hopefully, uh, you
can help light a fire under those folks, uh, on the board
board and then C ha to be able to do more. So, I I support
this, uh, appointment, I commend, uh, cha the mayor
whomever, uh, uh, that's involved with this appointment. I
know this brother. He's he's what you call a quiet storm.
He's quiet. And he's, he's cool and he's quiet. Always
Sharp.
But uh the brother got a main stick he make things happen.
happen. So I look forward to uh seeing your work. Thank you
for your commitment. Appreciate you. Thank you. Thank you.
All the member Bernette Alum, Manhattan.
Thank you chair. Um, you know, also just want to add my, um,
very vocal support for, uh, this appointment and, uh, dwan
as well, I'll thank you for, uh, stepping up to serve and,
um, even more ways and continuing to be an advocate for,
um, housing affordable housing, and for the residents of
the city of Chicago, um, this is a fantastic appointment.
Um, I Echo everything. My, uh, vice mayor over there, had
to say, um, and encourage my colleagues to support this
appointment. Thank you.
Um, I'll follow but I'll the woman clay. And then uh I'll
do my head.
Thank you so much, cheer.
Do you want to it really was a privilege and enjoy to see
you in the back to see your name on the agenda because much
as Vice chair, vice mayor, Bernett cheered. I being here
with you now feels like a past life regression it. Where is
sincerely to to think back on the the time of life.
When we had the opportunity to start working on affordable
housing together, I feel very green at that time compared
to even then the wealth of experience that you brought to
that work. And I I think about
The city that we were fighting for and that you and others
had the courage to even imagine when I think about 2005
2009.
The idea that you spent Tif money on affordable, housing
was an absurdity.
And it was something we fought to bring into reality. The
the idea that tenants could have the right to stay in their
homes going through foreclosure.
Was an idea that people couldn't imagine until it was real.
And what strikes me?
Is that you have always had the courage of a man to Nation
to see something that hasn't been and through organizing
and power and force of will to bring that into reality.
And I think that's what we need. Uh, the cha there's a
reality of the cha that exists 1015 years from now.
That we probably can't even conceive of how transformative
that organization can be.
and I want to empower and encourage you the way I got to
witness the courage of your justice of imagination, then to
bring that same imagination for justice to the cha and I
know that you will and I hope to be an enabling Force for
that from the seed over here. Thank you so much for taking
this up. Thank you! Cheers. All the women claim, Follow by
all the women doubt. Thank you so much.
Chairman I sit here, um, smiling internally so large,
this man has known me for almost half my life. Now, I know
in my agent, me and him, um, it has given me a great sense
of relief to be on this Council and also know that we have
hardworking Chicagoans at the Forefront of something like
cha, um we have been on the other side we have been on the
other side where we have had to fight tooth and nail for
the bare minimum for our people. And I think that this is 1
of the greatest steps in the right direction to make sure
that we know we have people on our side who get it. Um, and
I want to really encourage that you bring that energy,
Like, I know you will to the entire board because I
recently had cha in my ward for over 3 hours. And I was
just thinking, how often do they get a chance to do this?
How often are you going out with the elected officials
doing site visits, checking logs? Checking Gates, checking
lights, right? All of the things that people complain to us
about on a consecutive basis. Why are we not setting these
things up? And and those being just the bare minimum things
that board members are doing? I I think it's going to be an
amazing opportunity for residents to see you in this
position because this gives them an opportunity. To be
honest. I had a senior come to my award and I yesterday and
tell me how she's gotten treatments for roaches.
every single week for the last 3 weeks,
Now, I don't know if it's something wrong with your pest
control or if there's something a bigger issue in the
building but consecutive issues like these need to be
addressed in a manner that isn't just us trying to play
defense at some point. We have to play offense. We have to
get our foot, not just in these buildings, but we have to
understand the lives that our tenants are also living,
right? Because a lot of them are on fixed income. They are
our elders. They, they are on their last leg and the least
that we can do is provide them with great quality,
affordable housing. So I'm extremely proud of you for
taking up the this, this job. I am so proud of you for
bringing the expertise of a live Chicago, in into this
position. And I can't wait to see you thrive, you have my
full support.
Thank you, Alum. Alum.
Yes. Thank you, Mr. Chairman, I, I want to Joan's that I
want to, uh, applaud the mayor for this appointment. I have
to be honest with you, we have butted heads from time to
time. Um, but 1 thing I can say about you is that you are
have a lot of integrity. And uh you care about the
residents and I know you care about the public housing.
um, I want to, uh, also support the point that uh,
Vice mayor Bernette made about the need to speed up the,
uh, cha transformation plan. Um,
people from ikis, for example, were moved out in 2011, it's
2000. What 24 and we've only have 1 phase of it up. So, and
and this is the same going down State Street, right? So I
hope that you also be a voice, um, at the cha border
Commissioners to push for that.
I think the 1 thing I wanted to um and we can have a
conversation about this offline but I would like to begin
it publicly which is if you could share your perspective I
want to know if you share the perspective of the Hope
Center
which um,
Believes that.
Uh, all Public House public housing land should only be
used for, uh, public housing residents or do you think
there are opportunities to, um, for other land uses for
other uses to go on public housing land, uh, as long as the
public housing residents are not, um,
um, marginalized and we
keep our promise to return people to their
developments.
And we also provide opportunities for even more public
housing, New Opportunities. Um, I want to know, are you
going in there with that perspective, or are you going in
there with the Hope Center perspective? Because I know that
your, in your former life, as a member of Coco. That that
perspective was uh, shared
no, I I appreciate the question and
Your comments Alderman and and thank you for all the
previous comments as well.
I want to go to the Board of Commissioners.
And listen.
I think part of what complicates the question that you're
asking,
Is the history of cha.
And the promise is that have been made and broken.
And so it it is really hard to answer that question knowing
what the history has been. So I can't, I don't want to sit
here and say,
I'm going to go to the board to do this.
Knowing that there's a million things at play. I do believe
that as
Auto and brunette said, like people were promised
opportunity to come back home.
And they have not been able to come back home.
And we have to figure out how to enable people to be able
to come back home.
There's a million different options within that and I want
us to be able to explore all of them in a way that makes
sense for a specific communities specific people. And I
think that's for me, that's priority being able to hear
from the actual people who are impacted by these issues and
to be able as best as possible to give them what they're
asking for.
I appreciate that response because I believe you going.
there you are going in, hopefully not
Stayed in 1 position. I agree with you about history, um
but I also think we have to think about the communities as
they did exist.
And not trying to recreate what I used to call Refugee
Islands. We don't want that anymore. We want a community
and community means more than just housing, it means, um,
commercial. It means schools, it means parks and to go in
there with that kind of perspective. Um,
That you have an open mind about those things as well.
I support you and um, we probably gonna butt heads some
more
But, uh, uh, on this day, I I really appreciate the mayor's
appointment here. I think it's a good 1. Thank you. Thank
you. Any additional questions?
I'll do.
Uh it's not every day you get to uh say nice things on the
record. Um about someone you worked with for a very long
time. So I'll take this opportunity to also uh add myself
to the long list of older people uh that have spoken while
of you today. Um, I'm happy to learn that. Your first name
is Brian because I've only ever known you as jawanza. Um,
so um
But, you know, it's been really great over the past 10
years that I've served in this body uh to be able to work
alongside you towards housing Justice and housing
affordability. Uh, and I really commend Mayor Johnson, uh,
for putting, uh, you on the cha board and you have my full
support. Thank you. Thank you, man. Premiere Rosa, I, I
received the, the, the closing on this, um, I have the
opportunity to know. Um Mr. Malone for a number of years,
as an organizer and someone who deeply cares about um cha
residents and, and the best interest of the city of
Chicago, I cannot think of anyone else who represents the
values and principles, um, that should guide or policies on
public housing and agree with all the mandala.
We need quality public, housing, dignified, housing, and I
cannot think of a better Champion, that reflects that, what
we call the good troubles, that often times people like to
talk about but sometimes make us feel uncomfortable. Uh,
but I think that we can all attest of Mr. Malone's
integrity and determination to push, even when the good
troubles arise to ensure that we are representing the best
interests of CHA residents. So with that said, I would like
to take a motion um to approve the appointment of Mr. Jonas
Malone.
So mobile album all those in favor. Say I
All those opposing name proudly said, we would like to
congratulate Joan Malone to and welcome him to the cha
board. Thank you.
The volunteer.
The do pass recommendation of this ordinance will be
reported out at the next city council meeting on septembar.
18th 2024.
Now we're going to the next item. Item number 4 ordinance.
20240011043 license agreement for City and agents to assess
property located at the southwest of intersection of East
Avenue, O at South, 126th Street to conduct environmental
testing and or abatement describe herin in the 10th word.
Imon real Riley, from the Department for Chicago Department
of Public Health is present to testify on behalf of this
ordinance.
Thank you, Mr. Riley
Thank you, chairman and housing committee members for the
opportunity to present this ordinance for your
consideration. And we look forward to your favorable
support
My name is Aman Riley. I'm an environmental engineer 3 with
the city of Chicago, Department of Public Health in the
Office of Environmental permitting and inspections in the
Bureau of Health protection.
The Shroud side.
Is a former industrial property bordered by railroad
on the West toward corandale. Ave Avenue O, on the east
east. 130th Street on the South and East 126th place to the
north.
The purpose of the ordinance for city council action.
Granting. The commissioner of the Department of Public
Health Authority to sign an agreement. With the owner of
the Shroud property that allows the city of Chicago access.
To perform environmental investigation. Andor abatement
including maintaining and operating a barrier system, a
long or near the boundary of the Shroud site formerly, LTV
Steel on the Southeast side.
The Shroud site was formerly used to store and dump slag
material from the Former Republic, LTV steel, manufacturing
operations.
Trespassers. Have historically, utilized the site with ATVs
and jeeps.
The United States Environmental Protection Agency added the
site to the super fund National priorities list, which
allows usapa to clean up contaminated sites.
It also forces, the parties responsible for the
contamination to either perform cleanups or reimburse, the
government for EPA lead, cleanup work.
The barrier events has been constructed along the access
areas, the city will arrange for maintenance of the barrier
system along the Shroud site.
The Chicago city council would be granting. The commissioner
of the Department of Public Health Authority to sign an
agreement. With the owner of the Shroud property that
that allows the city of Chicago access in order to maintain
and operate the barrier system along the Shroud site on the
Southeast side.
And please note an older manic letter of support is on file.
Thank you. Uh, are there any questions or comments for
committee members? Otherwise, can I get a motion to approve
this item?
So moved by other person, gonna happen with all those in
favor. Say I all those opposed and a and the opinion of the
chair, the eyes have it, they do pass recommendation of
this ordinance will be reported out at the next city
council meeting on septembar, 18th 2024. The next item is
item, number 5, thank you, Mr. Riley item. Number 5 is an
aldermanic introduction. Order is 20240000113 designation
of North Milwaukee Avenue, from North Windsor Avenue to
North KY Avenue as low affordability community in the 30th.
Ward Alderman, Ramirez. Rosa is present to testify on
behalf of this ordinance. Thank you so much, Mr. Chair. Um,
so I'm really excited to bring this tool to the 35th Ward.
Ugh, the state legislature passed legislation, allowing us
as a local body to designate Parcels in our communities as
low affordability. Uh, this, uh, helps incentivize the
creation of new housing there that includes, um,
affordability onsite and so I know that, uh,
My colleague Alderman laspada has done this previously in
his Ward. Ugh, in the 35th Ward, we have been working to
use a number of tools to promote housing affordability, and
when I knock doors in my community, the number 1 issue that
I hear from people on the doors is property. Taxes are too
high, rent is too high. I am being displaced out of the
community that I have called home and many instances for
Generations. Um so we want people to be able to stay in
their homes, particularly our longtime residents uh who
have done a lot of work to make the community what it is
today. Um, and so this, uh tool, um, we are looking to
designate 2 Parcels in the 35th Ward. Ugh actually, 3
Parcels in the 35th Ward as low affordability. Uh, that
will mean that if these Parcels are, um, redeveloped, uh,
as dense multi family housing, that includes, uh,
affordability on site at least 20%, uh, that they will be
able to receive some tax incentives. So, uh, currently
these Parcels are a 1-story street.
strip mall, uh, as well as a 1-story commercial building
and then, uh, a vacant lot, um, as they're currently, uh,
Stand, they contribute, not all that much in property
taxes. Um, you know, a vacant lot. You're not paying all
that much. A 1 story commercial building. You're not paying
all that much. But with these Parcels redeveloped, as
dense, affordable housing, uh, or as dense housing, with
some affordability, we expect, uh, that they'll pay a lot
more. So we actually put together a little analysis here.
Here, um, currently in my community, um, a 2-bedroom is
renting for anywhere from 2,100 to 2,740. Uh, if these were
redeveloped to include affordable units, those affordable
units would rent for 1,600 to 1700 so, significantly Less
in some instances less per month. Uh, that's the type of
uh, affordable savings that my longtime residents need. Um,
in addition to that, um, currently 1 of these Parcels is
paying 10,000 4555 in their property tax, bill for 2023,
That's uh, 1 story, commercial building. If This Were to be
redeveloped as a dense multi family housing, they could be
paying as much as 85,000 in property taxes. Uh which is
what a uh nearby property is paying. Uh, that's been
already uh, improved as a multi family dense. Uh housing.
So uh this is a, a clear example of how this is a good
policy to promote, affordability. Also to help
Redevelop sites and then to help towards property taxes,
right? Um, the, the more that we develop, uh, on, uh, in
communities and along Milwaukee Avenue, uh, the more
properties there are to shoulder, uh, that property tax
burden. So we'll help, uh, our longtime homeowners as well.
Um, so yeah, this is a key part of, uh, advancing uh, the
35th Wards, uh, land use and zoning, and housing policies.
And so, I hope that I can count on the support of my
colleagues, uh, to help bring uh, affordability to these
sites.
Thank you. Uh, aldermen. Are there any questions or
comments?
Only to say that your next word neighbor, uh, really loves
what you're doing here. I know these Lots very well.
I think you could get something really special here. And I
think the way this ordinance intersects with the Scott
ordinance, special character overlay District, look it up.
It's going to be incredible. I I think it's going to
combine to create.
Affordable, beautiful development along Milwaukee Avenue
and I'm really glad for what you're bringing forward and
that your whole team. I know has worked really hard on
this. Thank you. Thank you sir. Thank you. Okay. You make a
motion then to approve this item. Yeah, no she wants to do
it himself. I will take it.
With the pass, all those in favor.
All those opposing, a in the opinion of the chair, the eyes
have it, they do pass recommendation on this, ordinance
will be reported out at the next city council meeting on
septembar. 18th 2024.
Uh, next item um on the agenda is item, number 6, ordinance
202400000011, 045 Financial restructuring and sell transfer
for ownership. Adding City vacant, Lots transfer regarding
8 Kerr Campus Parcels from the previous principles of
Phoenix House, Development, Heartland property holding
interest in Wellness Center. Lots multi-purpose, Lots
garden View, Lots Sawyer Garden, lots and Ally rights. Uh,
now to Chas, SSA South Ketty, Lots LLC chha s.
As a Phoenix House, LLC cha SSA Garden View, LLC commonly
known as 1251 South. Sawyer Avenue 1214 to 12437, 302 South
KY Avenue, 12422 1256, South KY Avenue in the 24th Ward
Ivy's Monday, surf front, the Department of Housing is
present to testify on behalf of this ordinance. Thank you,
thank you. Okay.
Good afternoon, uh, chairman and members of the committee.
Um, my name is Eve monil along with Katrina Collins and
Crystal Allen from the Department of Housing.
Today we will be discussing soil properties.
AKA Phoenix.
House apartment.
The property is located at 1251, s Avenue in the 24th,
Ward.
Um all the women monik Scott has provided a letter of
support for the project.
The property is in the north London Community. We will
review the request for the approval of the sale of the
property include 2. Vacant Lots located, at 1214 1232,
South ketzi, and 12:42 to 5:56, South ketzi Avenue, and the
approval for the assumption.
Of the regulatory agreement.
and as you can see, now that's uh, the map
The building is located.
on the southwest corner of so, and
Avenue and 13 Street.
In March 2023.
I've learned Alliance which has, which was the parents
Agency for artland housing and formed the Department of
Housing that the
Affordable housing portfolio was in this was and it was of
collapse. The city along with other public fun and interest
interest borrow, uh, receiver complaint and emergency
motion in court and general receiver was appointed to
control the Affairs of all properties.
The portfolio under with extensive review, process to begin
restructuring activities for each building.
The portfolio and can the following properties, as you can
see, that's the list of the properties.
The current owner of the property is Heartland housing.
And it is being proposed to sell to Chicago.
House and Social Service Agency, shasa, Phoenix House, the
current property management.
Appointed during the receivership is 5 management. 5T is
also MBE wbe company.
they will continue to manage the property for 3, 6 months
after the transaction is complete, but will
Then be managed by Chicago house and Social Service Agency.
Took over the property in 2020, after the original owner
Edge, Alliance Diversified the portfolio.
Chicago house is a social.
organization that support individual impacted by HIV AIDS
and the broader lgbtq Community with housing health and
employment support founded in 1985 during the height of the
8th crisis.
Chicago House initial Reserve as a Housing Resource. And in
most cases, it has peace for those living with HIV AIDS.
Chicago Housing and power person living with or vulnerable
to HIV AIDS to lead, healthy dignified lives to housing and
compassionate client centered Support Services.
As you can see, now the property is a 3 story brick
building that houses, a total of 32 resident.
The property is currently used as a separate housing for
people that have diagnosis of HIV or Aids and are at risk
of homelessness.
The unit makes provided cancers of all. 32 Studios
restricted at 50% Ami.
The current unit. How on the half contract cha
Sha is currently in the process of submitting an assumption
request to Cha.
Or seen here, some picture of the building provided by the
PNA. Each floor has a laundry
Facility for Resident, the building has a community space,
a full commercial kitchen and dining room on the first
floor.
Let's talk a little bit about the finance.
The initial City home loan amount was 1,200 thousand
dollars. The home node will be expired in March 2039, the
city awarded the property, 1 million dollars in 2020, a
half fun, the Federal Loan Bank. As you see the expired in
June 2024, we're talking about the 750,000.
So the source of fund would not be assumed the hard sap
growth as a woman in balance of 200 dollars, that 200,000
will be in 4D as well.
Uh, the proposed sources as you can see, is already the
same thing, the 1.3 million City home, and also, the city
Chicago 1 million dollars previously, uh, stated that a
total in October 3 million.
for the recommendation, what we try to ask the council is
to approve, the sales and transfer physical asset of the 1
building and 2 vacant
2, vacant, land pass, so that make up soil properties. Also
known as Phoenix House apartment.
Shasa is also requesting that an affiliate of shasa will be
approved to enter any Regulatory and Loan document for the
existing dead on Phoenix House and the vacant Paso
um, as we regard to the vacant lot,
Shansa has no plan at this time but we'll be working with
North London Community. Coordinating Council nlcc
At this point.
I would like to thank you for listening. If there's any
question I can answer and also the developers here,
1 of them also can answer.
Thank you. Are there any questions from committee members?
Otherwise, can I get a motion to prove this item?
Move all the member net, all those in favor. Say I all
those opposing Aid in the opinions, independent of the
chair, the eyes have it, they do pass recommendation of
this ordinance will be reported out at the next city
council meeting on septembar. 18th 2024. The next 3 items
will be grouped together going in a slightly out of order
and congratulations for for those who still remain. Thank
you for your patience.
Um, the next 3 items will be grouped together. Going a
slightly out of order with items, 8, 9 and 10 first. Then
we'll Circle back to item 7, so it's 4 items. We'll uh,
pause between the first 3 for Q&A and then vote, uh, for
those 3 and then we'll come back to item number 7 uh, for
the Q&A and vote. Item. Number 8, is ordinance 2024, D
00011, z84 restructuring of septembar. Uh, the 2000,
subordinate, subordinate City, Home Investments partnership
program, uh, mortgage to extend 2032 maturity date and
secure new, senior loan for senior.
with Chicago has which llc at 1355, uh, 13550 south of
Avenue O in the 10th word item, number 9 is ordinance,
2024000011 088, restructuring of January. 20202 subordinate
City, Home Investments partnership, program, mortgage to
extend 2032 maturity date and secure new, senior loan for
senior suits Chicago Jefferson Park llc at 5400, North
Northwestern, uh, high highway in the 45th word item. 10 is
ordinance 20240000110 091 restructuring of November. 20203
subordinate City, Home Investments partnership, program
mortgage to extend maturity date of 2035 and secured new
senior loan for Senior Suites Chicago, West, Humble Park,
llc at 3656. West here, on the street, in the 27th word,
Michelle Pinar from the Department of Housing is present to
testify on behalf of
These ordinances. Thank you, Michelle.
Good afternoon, um, chairman s to Lopez and committee
members. Um, again my name is Michelle caner and I'm here
to present Senior, Suites of heish Jefferson Park and West
humble park with 3. Properties are requesting consent and
subordination to a new cic loan, extension to the
affordability, period, and a modification to the loan
maturity dates.
Um there are a total of 21 senior Suite developments across
the city. This presentation is just regarding hewish
Jefferson Park, and West Humble Park, the current senior
loans with um BMO for those 3 properties matured in this
March of 2024.
Um, in addition to the 3 properties, we talked about
Rainbow Beach um, is included in the cic, the new, this new
mortgage, the 4 properties have initiated new financing
with cic in the amount of 1.8 million for the benefit of
the 4 properties headquarters Jefferson Park. West, Humble
Park as using those 3 as collateral. It was determined by
cic that the Rainbow Beach property would not be included
in the collateral, but their existing BMO debt would be
paid off.
The loan agreement with cic, requires specific, deferred
maintenance on safety concerns, and I'll go over them in
that subsequent slides.
um, initially heish got 3.3 million in home funds, uh
341,000 in clifft subsidies and then um, they're currently
in the extended use period.
Jefferson Park received 3.7 million in home, funds about
600,000 in Cliff funds and also in the extended use period.
West to park at 4.8, million in home, funds, 327,000, in
Clift and is also in the extended use period.
But here's pictures of the 3 properties. He wishes on the
left Jefferson parks on the top and then West Humble Park
is on the bottom.
so, we've already gone over, um,
Alderman, 6 Lopez said with the wards and everything. So,
move it along. Um, I had wish has 84 affordable units and
um, Alderman, Chico Alderman, Chico has provided a letter
of support Jefferson Park, development has 81 affordable,
senior units, and is located in the 45th Ward and we have a
letter from Alderman Gardner as well.
The bus humble park has 88 affordable, senior units, and is
located in the 77th or 27th board, not 777. Um, and
Alderman Bernett has provided support as well.
Okay.
Here's a scope of work for haggish. Um, each of the
properties, the 4 properties benefiting from the cic loan,
have required work to be completed. This is just a extent
of work required for haggish.
And then this is Jefferson Park.
Park went through. It really fast.
Okay, so today we requested action is the approval from you
for the consent and subordination to the new mortgage loan
from cic which is community Investment corporation, which
will have a first mortgage lean position on the Senior
Suites of hedge haggish Jefferson Park and West lumbal Park
along with the approval of loan modifications of the
existing Home Loans. So that the home loan maturity dates
are extended 1231 to 2034 to mirror the new cic loan and
then extension of the loan of 40 billion periods to 1231
2034 as well to mirror the new maturity dates.
Any questions?
Are there any questions from committee members?
We have the developer here as well. Bob gronowski is here
if you develop please here as well. If you have any
questions. Um,
The alderman all have submitted their letters of support.
So unless there's any questions, can I get out motion to
approve these items? So to move to pass by all the member
net, all those in favor, say I
all those opposed and the opinion of the chair, the eyes
have it, the do pass recommendation of these ordinance
ordinances will be reported out at the next city council
meeting on september 18th 2024. Now we're going back to
item number 7 in the agenda ordinance. 2024.000 11090
restructure of June 2016 City, Home investment partnership,
program, mortgage, to extend 202.
6, maturity date, and secured new, senior loan for Senior
Suites Chicago Southshore, limited partnership at 2345, to
2561 East 67th Street in the fifth word. Uh, again,
Michelle Pinar from the Department of Housing will will
present on this item.
Okay, this is for Southshore.
Um, this is a fast and easy 1. Um, it's located in South
Shore neighborhood. There's a picture of the current
building
Um, this project.
Um,
Alderman. Why has provided a letter of support? The
Um development has 96 affordable, senior units of which
there are 84 Studios 121 bedroom units.
Okay. And then um, in 1995, they received 4.8 million in
home funds and do tax credits which are in the extended use
period.
Um, Senior Suites is requesting that we extend the loan
maturity date to um from 312024.
Um, it had an existing um 20-year the 20 year,
affordability period expired in 2017. If we extend the loan
maturity date to 24, 2034 this would allow Senior Suites to
submit and future qap rounds with either Ida or Doh and it
would also extend the affordability period in a community.
That's seeing raising rents due to the Obama Center and
other neighborhood changes.
And the approval, the requested action is the approval of
the loan modification. Um, from 312024, as well to 1231
2034 and along with the loan affordability period, that
same time frame.
Thank you. Michelle are there. Are there any questions for
committee members? Otherwise can I get a motion to approve
this item so move but I'll depress on Jessie Fuentes all
those in favor. Say I
all those opposed say a in the opinion of the chair, the
eyes have it, the do pass recommendation on, these item
will be reported out at the next city council meeting on
septembar. 18th 2024, thank you, Michelle. Uh, the next
item item 11 is, um, ordinance. 202400001095 amendment of
Municipal Code, chapter 2-44, providing loan, restructuring
and authority to Commissioner of housing, Asia. Boner. From
the Department of Housing is present to testify and give a
presentation.
And oh, thank you so much. And also we have commissioner
liser Casta to be a long Asia to present on this item.
Welcome both and thank you for being here today.
Great.
Afternoon. Thank you chair Co Lopez and members of the
committee for the record. My name is Asia Bonner. I am the
assistant Commissioner of our asset management division
within our Housing Development multi family, Finance Bureau
I'm here to present for your consideration a cut. The tape
initiative that is essential in our efforts to preserve
existing affordable housing, and what we're calling the
asset management, restructure plan ordinance,
Um so a little context, you guys have made it this far in
the day and um, you know, endured a pretty hefty agenda
item. So this is my solution for that. Our our dough is
contribution to helping to manage the the volume that you
guys uh endure.
So that said you've heard excellent presentations. From my
my, my team members Michelle and Eve who, uh, preceded me.
so they're, they're a part of the asset management
division. Their work Falls, within my purview, as
assistant, commissioner and what they presented, this
afternoon are the very types of requests. This ordinance
were proposing here through the cut. The tape initiative,
um, is here to streamline. So with that said,
I can do 2 tasks at once.
so, officially in the interest of advancing mayor Johnson's
cut, the tape initiative do is seeking city council
approval to allow the dough, commissioner authority to
approve the restructuring of certain terms and conditions
associated with previously. Issued City, financing for
affordable housing developments. If approved, the ordinance
would enable do to take timely action to prevent or
mitigate affordable, housing properties from becoming
troubled assets and this will be an essential tool in the
preservation of affordable. Properties. And preventing
tenant displacement,
All right, so to give a and I'll try to make this brief
background. Um, so this is what we're asking. Exactly. Um,
let's start with just an explanation of what we mean by
restructuring. So effectively restructuring is a generic
term, used interchangeably with loan. Modifications, on
basically an umbrella term to refer to standard activities
performed by all lending institutions to manage previously
issued debt. So these are, um, levers that we try to deploy
to protect the assets that we've made investments in we as
the city. Um, so these activities may include as you just
heard from Michelle and and Eve uh, situations where
there's a need to consent to the refinancing of a senior
mortgage and then therefore subordinate.
The city's debt to that new loan.
extending the date at which the loan matures and becomes
due in full modifying specific loan terms such as interest
rates or if and how much we collect in payments and finally
changes to title ownership or ownership interest. As we've
heard from Eve.
So why this is necessary? You can think like I said before
of these activities as different levers that lending
institutions of All Sorts will pull to ensure that the
borrower is in the best position to repay that loan or in
our case repay the loan or maintain that asset. That's
benefiting from our previous investment. So specifically to
name it. Uh, this is a way to ensure that the borrowers are
able to ensure that these affordable developments continued
to perform and provide the housing that we we're all
expecting them to
um, so these levers typically help improve cash flow at the
property which impacts the operating performance and
financial conditions of the buildings and ultimately
impacts the tenants quality of life.
Do of course is an integral public lender for affordable
multifamily developments. And therefore we have to have
these tools at the ready as other housing agencies, do to
make sure our affordable housing investments are best
positioned to cover their operating expenses and continue
to perform as healthy safe. Affordable.
Assets for Chicagoans to live in.
So it's very important to note that we are effectively
describing work. That would uh involve making modifications
to existing debt instruments which is to say these requests
do not require new or additional City financing. There are
no new funds.
Apply to the types of requests that we're contemplating for
this ordinance, can't stress that enough.
Other important considerations to know, we will as a
department, continue our practice of notifying impacted
Alders of requested actions happening in their Ward related
to these restructuring requests.
Um, also importantly, so you understand the volume and
implication time implications as we are all here today,
late late in the day, we typically see about 15 to 20 of
these types of requests annually, but there's a great
potential for these requests to increase as our portfolio
ages. Of course as the portfolio ages you approach maturity
date. There becomes a need to make adjustments to that
materiality date or other things related to that long. So
while we only see 15 to 20, now it could be more. And
imagine you just basically saw 5 of these transactions,
this afternoon and, and 1 day, and 1 sitting
um,
So, when these modifications are being sought time is
typically of the essence, um, the developers they'll come
in, they need to quickly take action to improve performance
of the building brain cash flow back into the building. Um,
extend the, the maturity dates for either our loan or other
loans in the capital stack. Um you know, make all of these
sorts of adjustments that are time-sensitive and in the
most extreme circumstances, which we we can point to some
recent and ongoing examples, these properties may be facing
foreclosure or bankruptcy and need to be dispositioned as
quickly as possible.
Um, and so we'll talk about the timing and greater depth
soon, but in general where things stand right now,
unfortunately, these requests can take as little as 3
months up to 18 months which is frankly just not accepted.
um, and so yeah, you can switch, um,
Yeah.
Um,
so to talk about the problem. So I I gave you all this
background contacts, we haven't even got to the problem
yet. So the challenge that we're facing as a department.
Um,
These restructurings are important. Um and we've talked
about why and why it's relevant for Doh. But um the
fundamental issue for this is the way our loan documents
are currently crafted. Um, they've been written
inconsistently. Okay, so our cities City attorneys
determine when deals require Council action. Um, which then
means do is unable to follow a predictable, efficient
process for handling loan. Restructuring. So as you can see
in the slide, there's some inconsistency with our portfolio
so projects that
were originated and provided financing prior to 2010 and
2010 is roughly the cutoff point.
The loan documents were crafted in such a way that they it
didn't give us the permission to continue to make these
modifications without some additional Authority.
After about 2010 2011, our attorney started drafting the
loan documents in such a fashion where we did have the
leeway to make these modifications without coming to city
council. And so, what that means is of our portfolio of
roughly 400 Pro properties about, 58% of them are in a
situation where we will have to go to to our attorneys, to
have them determine whether we need to come before you all
and have these sort of conversations
um so the variability is is kind of like I said before
unpredictable um,
And adds to our timeline, which we'll talk about now. So
what you see in this graphic here is a depiction of the
sort of Soup To Nuts process for reviewing these
transactions and hopefully it's not too much of an eye
chart for you to see. But it starts with an application
coming in from the developer requesting the restructuring.
And at that point, they will be reaching out to the impact
of all their person to advise them that they're seeking,
um, support. Um, for this process. Then from there, a
project manager on my team will take on the assignment, go
through their underwriting and evaluation to determine if
what they're requesting is truly feasible. Um, and then we
kind of begin this process of either going through the
public approval process or adjudicating it internally
depending on what our attorneys say. And so from that step,
from the moment, we engage Council our our uh, corporate
Council through to
if it has to go through city council, for passage that adds
to adds about 4 to 7 months, to our timeline, um, which is
just it, it it puts these projects in a precarious
position, it protracts, the ability for that developer to
quickly stabilize the property. When
Already possibly is in a dire state.
It runs the risk of putting tenants um, you know, in
substandard living conditions and possibly face
displacement.
And then additionally, as this disposition effort or
restructuring effort, um, is happening in extreme cases.
Um, we may need to put the property under receivership and
in with in those instances. Uh, the city is incurring costs
and I'll show you what that can look like. Um uh in a
second.
Um and then ultimately the developers incur transaction
costs and and loss of time. Um and again puts these
properties in a more precarious position.
So this slide again, possibly another eye chart. Um, is a a
display of the Heartland housing, uh, properties, if you
all are familiar with the, um, the solution of that
organization, Eve spoke to that in his presentation is as 1
of his. The, the property he presented is on this list as
well. All of those properties that are um, that were
formerly held by Heartland are now under receivership at
the city's expense and we're talking at this point, these
numbers are a bit dated from June. So it was recording at
about 3.2 million dollars and receivership fees that have
to be settled. Um, it's
Well, north of that at this point in septembar. So the
longer the process is for transferring these properties
into new owner's hands. The more money we possibly can
incur more expenses. We can incur and so that's what that
demonstrates, their
so,
Recommendation.
Um, our remedy.
that we're proposing today, uh, is to
address this problem of inconsistency in our loan documents
documents and require um, that requires some restructuring
restructuring requests to take an additional 4 to 7 months
versus not
um, is to advance this mayoral initiative to cut the tape,
um, through the um,
Through the request of granting, our do commissioner the
authority to defer loan payments modified loans, when
needed for bear on loans, which is to say, delay
enforcement of debt obligations, forgive default, interest
and fees that may, uh, uh, and get accured and possibly
convert up to $500,000, um, from a loan to a grant.
Subordinates and consents for transfer. So, these are all
the types of restructuring tools that are essential
particularly when projects are sort of in a precarious
State and need immediate action. Um and so this ordinance
that we're proposing would grant. Our do commissioner the
authority to do that without having to add to your email,
lengthy, uh, committee agenda.
Um,
but continue to as as noted in the ordinance report out on
the restructuring requests that come through, um, and
engage the alderman, um, that are impacted directly by said
actions.
Um,
And so with that, this is a quick depiction of what a
difference. This uh proposed ordinance would make in terms
of timing we can cut uh what could be up to 18 months down
to 6. Maybe 7 months in the worst case scenario. Um all
contingent on how quickly everyone can sort of turn
documents of course. But in any case, this is, I think a
really easy way to, um, reduce a lot of the, uh, burden
and red tape around some of the projects that that we
oversee.
And so with that, I will, I want to acknowledge that. We do
have a couple of uh development Partners present with us
who are
More than happy to provide comments around, uh, relating to
support of this initiative. And that's, uh, Allison
Clemente with the Illinois Housing Council, as well as
Kevin Jackson from the Chicago rehab Network, um, but I, I
can stop here for questions.
Thank you. Thank you both. Uh, are there any questions by
committee members? We have other all the person who may not
happen with
Okay, good. Yes, thank you so much chair. Thank you very
much, Asia. Commissioner Cina for bringing this to all of
us. Certainly, as someone I, I have not served long on the
finance committee, or like, well, this is more related to
committee on housing and real estate.
But certainly we have seen enough of these restructuring.
Um, through committee, particularly related, to Heartland
housing over the last 12-15 months to understand.
The necessity and the importance of what we're talking
about here today.
I only had 2 real questions, the piece where you talked
about the notification.
Of the older person.
Is that as a matter of policy or is that written into the
ordinance policy? Okay? Fantastic. Appreciate it. Uh,
probably more appreciated by others than even myself. Uh
but I would, I would say, as I thought through these cases,
these ordinances, they've been brought to us over the past
12 to 15 months. So the only time it would ever give me
pause to vote on 1 of these is if it was impacting, the
affordability of the units and I wondered if you could
share
How we see loan modifications, so subordination conversion
of loan to Grant impact affordability. If that's ever
Something you would foresee Council or the Department of
Housing being concerned about and how we should be thinking
about that. That's a great question. So it speaks to the
fact that the enabling instruments that we put in place as
a contingency around us giving money kind of falls on 2
track, we have our loan agreement that establishes payment
terms and you know sort of financial obligations related to
us giving money to a borrower. Then we have the covenants,
the regulatory agreement covenants that established the
affordability requirements and expectations.
and,
What we do to the loan instrument has no bearing on the
affordability restrictions that are in place. And in fact,
often what we do is we're Sly clever. Foxes is as a
condition of agreeing to affect these restructuring
requests, that a borrower will come in with, we'll say,
well, we want an additional 10 years of affordability. So
it gives us an opportunity to really expand and extend
those affordability restrictions or maybe in some cases.
This would probably be uncommon, but it might be a
negotiating tool for deeper affordability, but I say not so
much just because that does impact cash flow and that's
what we're all trying to address here. So,
I appreciate it. That's very helpful context. Thank you.
Thank you cheer. Thank you. Thank you. I'm going to happen
with. Thank you, cheer. Thank you, Asia and thank you,
commissioner for for being here. Um,
I'm in Edgewater and so we have Hollywood house and I'm
very familiar. Yes. So I don't know how many months
actually that was in receivership but I can tell you that
it, uh, through quality of life, you know, and the disarray
for so many of our seniors. And so, um, if we can get that
time down, of course that's going to help so much. So thank
you for bringing this forward. Um, I did have a question.
So
it seems like you're going to be taking on a lot of
the burden I guess or the work or maybe maybe it is going
to be easier if we have a better process. But I was just
wondering if that's going to require you to change Staffing
or how how are you going to be able to handle the work?
That's a fair question. So
With the existing process. Um, we still do our internal due
diligence, and, and evaluation so part and parcel to this
process. Regardless of, if this ordinance passes is a
requirement that we underwrite these requests that will
continue to be the case. So, when, uh, borrower, or a
developer comes in seeking these adjustments, we have to
scrutinize that and make sure that what they're proposing
is actually feasible and sound for the asset for the
property and ultimately for the people who live there. Um,
and so that that will continue. It just means we don't have
to do the extra step of preparing packages and coming. Um,
before you all though, we will do that on an individual
basis, depending on if you're impacted by the actions. So
um and almost all facets, it reduces the, the work burden
on us and our attorneys as well, which is
Important. Absolutely. Very good. Thank you so much and
thank you. Thank you. Uh, to the 2 guests that we have,
would you like to maybe share? Um, a little bit of the
impact up to you if you would like to share anything else
on this on the kind of policy on how this will impact. Yes,
please if you can and introduce yourself just for the
record as well, thank you. Sure, thank you. Um, good
afternoon. My name is Allison Clements and I'm executive
director of the Illinois. Housing Council, we are a
membership Association that represents over, 290 nonprofit
organizations and mission-driven private businesses active
in the development of affordable housing throughout the
state. And so, our members of developed thousands of units
of affordable housing and partnership with uh, the
Department of Housing in the city. Um, our organization is
in very much in support of do, is restructuring ordinance,
for affordable, housing developments. And we're also very
much in support of the cut, the tape initiative of Mayor
Johnson, and we believe that this ordinance very much
advances, those goals, um,
So you know, I would add that operating affordable rental
housing is a complex business. And in today's market
affordable properties are facing, many new challenges such
as high interest rates Rising Insurance costs, Property
Management staff, turnover and tenant vacancies. And it's
not uncommon for an existing affordable development to need
to restructure or modify its current financing to ensure
the properties long-term, Financial Health, and ultimately
maintain affordability. Um as Asia
Uh shared it may be necessary for a property to improve its
uh properties financial position when interest rates fall
you know amendments may be needed to address specific
Financial or operational challenges and in the worst cases
a development could potentially face receivership or
foreclosure and Swift action is really needed. At that time
to find a solution and prevent loss of affordability.
Um, so we see the ordinance. Um, as a really important step
and empowering the commissioner and staff at do to be able
to address these challenges quickly based on their
expertise and Analysis. Um, and we see it as helping to
safeguard City funded affordable, housing developments
speed up, the preservation of affordable housing, and
ultimately benefit low-income residents that reside in
these buildings.
Thank you very much.
Kevin. Good afternoon, chairman sitio Lopez commissioner.
Guana and members of the committee.
My name is Kevin Jackson with the Chicago rehab Network.
Crn, you may know is a coalition of the mission-based
community Developers.
In Chicago and uh we've been involved with this committee
since its Inception, talking about what's working and
what's not. It's been a great dialogue and I'm very
impressed with the proposal Azure asked us and commissioner
uh through the summer to think about this. We've spoken
with members from across the city. No 1 has said boy this
needs deliberation.
Their response was, this should be approved and it should
be approved right away. I did put a whole letter in as
well, but I'm not going to read from it because it just
reinforces Mo, most of the points that you heard from Miss
Bonner, as well as from
Allison's fine uh testimony as well. I would just add a
couple of things. The 1 thing I said is, you know, this is
a classic example as time is money.
And this is not something that we should be delaying. The
second piece, of course, the cut the tape. What good
congruence that has.
But it's also congruent with not just the city but across,
uh, America. There's this effort to think about who's doing
development today.
And how do we diversify the development Community? How do we
expand that opportunity for people to be? And that's the
mission of the rehabilitative community empowerment and
development without displacement. We believe strongly in
local developers in their neighborhoods and what that means
in terms of the stock of affordable housing
So smaller developers can't really deal with these type of
delays very well and it messes up the entire pipeline of
people who are in need it.
When you're trying to hold on to a construction team.
And you have to say, well I can't do anything yet.
That type of delay.
Gets to the workforce. So, there's a ripple effect.
And our final point was, we certainly recommend that
commissioner Castaneda.
Comes out of the Community Development field herself. She
knows a thing or 2.
About from the developer's per perspective, what's needed.
So for all those reasons, we certainly hope, you can
approve this passage so that we can continue to see more
streamlined approach over the other word I used.
Because I learned it a long time ago. Once speaking here,
uh, is predictability.
And and we were here years ago when we were passing the
Aro.
And Daniel knows about this and others. Almond Bernett, of
course, uh,
That was a long long arduous process.
And the attorney for the development Community. Never said
1 thing about including affordable housing
In the rewrite of the zoning law. It was the zoning law of
1954. It hadn't been changed.
This was about 2004.
and I said, well, afterwards I said you didn't mention
anything
in opposition about, including affordable housing, for the
first time,
Because we don't have to worry about that. It's
predictable.
That's what you have. We have predictability. We know how
to develop
and that's what this will help. The city do more of. Thank
you very much.
Fantastic. Thank you very much. Kevin. Unless there's any
questions. Can I get a motion to pass this item?
So move all the person that happened with all those in
favor. Say I all those opposed and a in the opinion of the
chair, the eyes have it, they do pass recommendation of,
these item will be reported out in the city council meeting
septembar. 18th 2024. Thank you so much and thank you
everybody for your patience.
um,
we have now item.
Ah we have a substitute uh ordinance for the next item for
item uh 12. The subsidiary ordinance. Corrects the budget
amount only for the land sale to hang Ignacio. Gonzalez at
4401 South, uh, on a road street from 42000 to 4,200 by a
meeting, an extra zero. No other substitute changes were
made and all the committee members were uh, were were able
to receive a copy of the substitute via email? Can I get a
motion to accept the substitute?
So moved by all the person that happened with all those in
favor. Say I
all in the opinion of the chair is that I have it. Um, item
number 12 is in front of the committee, The Substitute
ordinance 2024.000 10979, negotiated sale. As is of vacant
city on property regarding chai block, Builder, platform at
6337 South Carpenter Street to Gloria Allen 1055 North
Harding Avenue to Ali's Edwards. 5129 South Winchester
Avenue to Deborah Larson, 5436 South Palina Street, to
Santiago Trujillo 726 South, Aberdine Street to Joffrey
schillo. 6129 South Laflin Street to Nanette Tucker, 4401
South on the road Street to hang, in Gonzales, and 4428
South Wood Street to hang in nasio Gonzalez. These items
are in the 15th 16th and 37th.
Department of planning and Department.
Um the department of planning and development is present
here to testify on behalf of this ordinance. Thank you,
thank you. Uh, for the record Meg, gossipin Department of
planning, you pretty much just gave my whole presentation.
Thank you so much. Um, these all um, are open space land
sales, through the shy, block Builder platform. Um, I can
answer any questions about that, I know we're a little
short on time. Um, here are the the pins that we would like
to sell their currently. Um, baked in city-owned pins, we
have support letters on file, from 1637 and 15,
Um, I can go through them quickly uh Gloria Allen um wants
to fence in the, vacant lot near uh next to the house. She
owns um it's 1 block over its 1 lot over she's in
negotiations to buy the other lot. Um
The address is.
63333, South Carpenter.
Um, her budget's 1500. Um, she's actually already fenced
the lot and plans to, um, put benches and continue to
maintain this. Uh, next we have a lease Edwards. Um, this
is in the,
Um, 37th, Ward.
Uh, she has. This is a 1 of our larger Lots. These are
being sold for 10% of the value. Her budgets about 1300
1300, uh, 13,000 and, um, she has
Received some grants from the aldermen and um, my block my
hood.
Let's see, we have Deborah Larson. This is in the, um,
Where does this? I'm not seeing 16th ward. Um, like the
other ones. Uh, she plans to do an open space with raised
garden beds. Her budgets approximately 20,000 dollars.
Next, thank you. We have the 16th ward. Santiago trulio.
how do you say that? Um, thank you, um, the purchase price
will be 10% of market value, which is 882. Um, here is his
site plan. Um, all of these applicants are required to
fence the lot. Um, he has a 3,200 budget,
Next Jeffrey. Shiloh, he is in the 16th ward, um, in
Englewood, this will be sold at 10% of value for 782. Um,
This looks like it got a little messed up here, but his um,
budget is about 3600. Uh, he plans to fence the lot and do
some raised garden beds.
And possibly a shed.
Next, we have Nanette Tucker. This is in the 16th ward as
well.
Um, all of these applicants live nearby or on the Block.
Um, this 1 is in the 15th. Ward in her budget is 4,200
Um, there is the site plan, 4401 South Honore.
Um and then we have 1 Ygnacio Gonzalez. Um, 44428 Southwood
This is in the 15th, Ward.
Um, and here is his site plan. Um, the common theme is
fencing and Landscaping.
And that concludes my presentation. Thank you.
Thank you. Do you have any questions? Thank you. Mick. Any
questions from Community? I'll the women. I happen with.
Hi. Hi. Um, thank you chair. I just had a question about.
Should I block Builder? Sure. How how long have we had that
program? It started in 22.
And now we're on about to launch our fourth, um, October
1st, we're going to be listing properties again. We've been
reaching out to Alderman in the regional planners to see
which lots to list.
Um,
have we reached out about any vacant?
City-owned Lots in your ward. Okay. No. We don't. We don't
really have too many. Um,
Got it available right in the edge, water area. That I know
of. Maybe we have 1 or 2.
um, I was just curious because I'm thinking of the question
that alter, um,
uh, MC Dowell asked earlier about, you know, the
the availability of our public land and what we use it for
and we are in the middle of a housing crisis. So, I was
curious like what what is the what does it mean to be a
success for this program? Do you, can you speak? Great
question. So I'm only representing the open space land
sales. We're also working with Department of Housing to do.
Um, affordable housing, land sales on vacant land, and they
um, actually have a, a huge bulk of, of the land sales. Um,
sales. Um, the, I'm the open space person and Taylor is the
side yard person. So, um, that's what we have before you
today, but, um, Coming forward, there will be a lot of
affordable housing, proposals, and market rate.
As well, but all those sort of vertical development is in
our regional planning team and we're in the land sales and
open space team.
So there are, um, other parts of shy, block Builder, the
beginning of my presentation is strictly about the open
space.
Um, but if you go to shy block builder.com, there's all
kinds of information for you there. And I can also follow
up through the chair
I I'm happy for those. I can purchase the land and review
something with it. It's it's it's really neat to see what
they are going to do with it. But also, um, I'm thinking
about housing, it's the only thing that, uh, that's on my
mind these days. Absolutely. And there's a 5-year
restriction before they can sell it. Um, so that we
discourage any kind of flipping
um, but it's possible that in 5 years, if there's demand
for housing, um, on 1 of those lots, these um, new owners
could sell it for housing. So, that's another, uh, a lot of
the these Wards have a lot of vacant land.
So, thank you. Thanks.
Thank you. Um so um unless there's any questions, can I get
a motion to approve this item? So move by Alderman, um and
I have been with all those in favor. Say I
Hi well, doesn't papers say name in the beginning of the
chair, the eyes have it. They do pass recommendation of
this ordinance will be reported out at the next city
council meeting on septembar. 18 2024, thank you very much,
uh, Meg. Um, we have now before we move on item, uh 13th,
there's a substitute on the next item that includes the um,
complete sentence on the last bullet point on in Section, 3
of the ordinance, not a substantive changes were made and
all committee members have received a copy of the ordinance
via email and I get a motion to accept this substitute.
So moved by all the person that happened with all those in
favor. Say I
and the opinion of the chairs that I I have it. Um um the
item number 3 is as um subject ordinance 2024.001. 11039
sale of vacant city owned Parcels at 6:17 to 6:41 is 14034
a street and 6042608 is 134 Place 6. Uh 28 to 636 is 134
Place, 644 to 648 is 134 place, and 656660 is 134 place to
neighbor space to assist in development of Tom farm
community garden space, including acquisition of 24
additional Parcels from the Cook County, Land Bank
Authority, along is 134th, Place, and 100, and East. 134th
Street in land. Banking agreement among parties in the 10th
Ward, Alderman, Chico is here
I think he's requested to defer this item. So I I Alderman
if you want to make the motion so that we can defer this
item,
Yeah. Uh, thank you chair. I
I moved to the further side of for more time with
stakeholders and community members to talk this through and
uh, come up with a plan.
For us. Yeah can um, can I have a second for some move by
Alderman Mitchell? Um all this favour all those favor say I
All those opposing a independent of the chairs, I have it.
So these item will be deferred. Um, and we will be working
with um, Alderman, Chico, until the item is ready. It's
really happy to work with you until you will. You'll decide
to make sure it comes back. Um,
uh, the next item is item 14th. Uh, ordinance. It is the
last item. So thank you for bringing with us. Uh, ordinance
20240000110, 86 sell to City owned properties, in the 20th,
word to adjacent, neighbors, under chai block Builder,
platform, Taylor Thompson, from the Department of planning,
and development is present to testify on behalf of this
ordinance. Thank you, Taylor, the floor is yours.
For the record. My name is Taylor Thompson. I'm represent
representing the department of planning and development for
the disposition of 17 side, yard properties received
through the shot. Block Builder platform located in the
20th. Ward, the department has automatic support from
automatically.
This slide is provides an overview of the Saudi. Our
dispositions eligible buyers were required to show proof of
owner occupancy and must own them. Reside at the home
directly adjacent, to the city lot, the sale price for
qualified purchasers is 10% of the appraised market value.
Approved shop block Builder side. Yard purchasers are
required to make improvements within 6 months.
Um, to your point ottoman after they are improved
applicants can use the property for any use permitted by
zoning. So if there's housing that they are, can
financially feasibly complete, they're free to do so.
Another consideration is that each qualified purchaser must
hold the property for 5 years.
Outline of the parcels 20th award.
The next few slides are the recommended properties within
the 20th. Ward included, are the applicants property
location, existing conditions, and the zoning, and the
purchase price, which represent 10% with the market value.
We'll go through each.
Json.
So existing conditions, 10% of purchase price and the
community.
Areas located.
So in summary the department of Planning and Development has
has reviewed the proposed sale of the, the city Parcels to
qualify buyers in the 20th, Ward department has reviewed
this public benefits and recommend approval of this
project. Thank you.
Thank you. Taylor. Are there any questions or comments this
item? Otherwise can I make a can someone make a motion to
move on this item? So moved by all the person going to
happen with can all those in favor say I
All those all those supports in a in the opinion of the
chair, the eyes have it, the do pass recommendation of this
ordinance will be reported out at the next city council
meeting on septembar. 18th 2024 there being no further
business before the committee, can I get a motion to
recommend approval to adjourn?
So, move by Alderman, Rosa all those in favor. Say I all
those opposing of the the chair, the eyes, have it, the
meeting of the committee on housing. Real estate is
officially adjourned. Thank you very much for your patience
and support.