Committee on Housing and Real Estate meeting, July 27, 2023
- When: Thu, Jul 27, 2023, 2:00 PM (Chicago time)
- Where: City Council Chamber, 2nd Floor, City Hall, 121 North LaSalle Street - Chicago, IL 60602
- Status: Scheduled & Published
- Committee: Committee on Housing and Real Estate
- Video: https://vimeo.com/showcase/8928563/video/848825166
- Transcript: full text (27,344 words, official captions)
Meeting notes
AI-written from the transcript. Speakers are inferred from cues in the recording, so treat names as estimates and check the video at the linked time.
The Committee on Housing and Real Estate approved its July 10 rule 45 report and held a subject matter hearing, with no vote taken, on Bring Chicago Home, a proposal to raise the real estate transfer tax on properties sold for over $1 million to fund permanent housing and services for people experiencing homelessness. Fifteen public commenters spoke, most in support, while a downtown office building association representative and two residents raised concerns about the tax's impact and the level of public discussion. DFSS Commissioner Brandie Knazze and Housing Commissioner Marissa Novara described homelessness counts, current programs, and expiring federal funds, and Novara said the administration is considering a marginal rather than flat rate and an exemption for restricted affordable developments. Coalition members presented the proposal, estimating at least $150 million a year and noting it would require a ballot referendum before an ordinance. Members asked about revenue estimates, accountability, effects on naturally occurring affordable housing and commercial properties, homeownership, and union labor; officials said specific figures would come back in September.
Topics: Bring Chicago Home, real estate transfer tax, homelessness, permanent supportive housing, marginal vs. flat tax rate, affordable housing funding, ballot referendum, rental assistance and eviction counsel, public comment
Agenda items discussed
- 44:18 Rule 45 report from July 10, 2023: passed
- 44:52 Subject matter hearing on increasing the real estate transfer tax to fund housing and services for people experiencing homelessness (Bring Chicago Home): discussed
Alderpersons who spoke
- Byron Sigcho-López (chair): Introduced the subject matter hearing on raising the real estate transfer tax to fund permanent housing and services, noting no vote would be taken. (44:52); Said homeownership and generational wealth are among the pillars of the new administration's housing approach. (2:58:56); Thanked participants, said the resolution would go to voters before returning as an ordinance, and said the committee would not be swayed by scare tactics. (3:03:36)
- Maria E. Hadden (alderperson): Thanked the public and the chair for holding the hearing, noting a prior attempt last term could not get a quorum at a special council meeting. (43:38); As sponsor, thanked the coalition and departments, said opponents are using scare tactics about construction jobs, and outlined the timeline from resolution to referendum to ordinance. (2:59:31)
- Walter R. Burnett (alderperson): Described widespread homelessness in his ward, said he was among the first to sign on to the ordinance, and disclosed he is a former board member of the Coalition for the Homeless. (1:26:45); Asked Commissioner Novara whether the department has considered a marginal tax rate structure. (1:32:14); Asked whether affordable developments and nonprofit developers would be exempted from the tax. (1:35:06)
- Rossana Rodríguez Sánchez (alderperson): Asked Commissioner Novara how limited low-income housing tax credits are and how many affordable projects the city misses each year. (1:38:39); Expressed support for putting Bring Chicago Home on the ballot. (1:42:02)
- Jeanette B. Taylor (alderperson): Thanked the coalition and asked them to explain the slide on city revenue streams. (1:43:14); Asked how the coalition will work with the city to hold it accountable and measure whether the program works. (1:45:24); Asked the coalition to restate that only about 4.3% of property sales would be affected. (1:47:35)
- Jessica L. Fuentes (alderperson): Said housing should be a right, described interviewing residents of a Humboldt Park encampment, and said Bring Chicago Home is the solution. (1:58:40); Asked the coalition for examples of dedicated revenue sources in Chicago and nationally. (2:00:40)
- Gilbert Villegas (alderperson): Asked why the CTA receives a portion of the real estate transfer tax if funds are needed for homelessness. (2:02:29); Asked what total revenue the tax is expected to generate. (2:03:55); Asked how DOH and DFSS would appropriate the funds and whether nonprofits would be used. (2:05:13)
- Daniel La Spata (alderperson): Said anyone able to buy a million-dollar property is wealthy and noted the federal mortgage interest deduction benefits such buyers. (2:07:56); Said those offering alternative revenue sources had not proposed one meeting the criteria in eight months. (2:09:15); Described living on a friend's sofa for a year and said unstably housed people are homeless. (2:10:32)
- Leni Manaa-Hoppenworth (alderperson): Said she supports Bring Chicago Home as a permanent funding solution and described SROs and naturally occurring affordable housing in her ward. (2:15:28); Asked whether the 40th Ward hotel pilot resembles the permanent housing with wraparound services envisioned. (2:19:48)
- Angela Clay (alderperson): Said her ward has a large encampment needing supportive services and asked how the program would account for revenue fluctuations. (2:33:01)
- Matthew J. Martin (alderperson): Said the city has left large sums on the table and that expiring federal funds mean current homeless programs cannot be sustained without new revenue. (2:40:16); Asked the commissioners to explain why flexible funding is needed compared with existing restricted sources. (2:43:54)
Exchanges between members
- 43:38 Hadden thanked the chair for making space for the subject matter hearing.
- 1:30:05 Burnett commended Hadden for her efforts to get a hearing under the past administration.
- 1:38:22 Rodríguez Sánchez thanked the chair for holding the hearing.
- 1:58:40 Fuentes congratulated the chair on hosting the hearing.
- 1:58:48 Fuentes commended Hadden for leading the effort with the coalition.
- 2:07:16 La Spata said he was grateful for Hadden's leadership on the proposal.
- 2:33:01 Clay thanked the chair for hosting the hearing.
- 2:40:16 Martin thanked the chair for holding the hearing.
- 3:02:30 Hadden echoed Martin's point about not leaving money on the table.
- 3:04:59 The chair referenced Hadden's description of the resolution and referendum timeline.