Committee on Housing and Real Estate meeting, September 11, 2024

• When: Wed, Sep 11, 2024, 1:00 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/1008520829
• Transcript: full text (34,544 words, official captions)

Video chapters

• 10:17 Rule 59 remote participation requests
• 10:57 Public comment
• 28:00 Subject matter hearing on a proposed Illinois property tax circuit breaker program
• 28:04 Byron Sigcho-López: Opened the property tax subject matter hearing and said the statewide 3% referendum on…
• 54:07 Jessica L. Fuentes: Said Illinois has one of the most regressive tax systems and asked how the circuit…
• 56:11 Jessica L. Fuentes: Asked whether the state legislation includes a budget line for outreach.
• 58:45 Jessica L. Fuentes: Asked how income would be defined, noting seniors whose Social Security may not be…
• 1:12:07 Maria E. Hadden: Asked about the structure, funding and outcomes of Illinois's former circuit breaker…
• 1:14:42 Maria E. Hadden: Asked which General Assembly members are involved, saying the renter inclusion matters for…
• 1:19:44 Maria E. Hadden: Asked which agencies would administer the program.
• 1:21:05 David H. Moore: Asked whether residents must file taxes to receive the credit and whether the relief fund…
• 1:24:44 David H. Moore: Asked how the renter credit would work and whether it could be double-counted when landlords…
• 1:28:30 Gilbert Villegas: Asked how the former circuit breaker was funded and what funding mechanism the new…
• 1:35:55 Gilbert Villegas: Asked how renter eligibility would work without transparency between landlords and…
• 1:39:58 Pat Dowell: Asked whether the renter credit depends on property value and said adding renters could be an…
• 1:42:42 Gregory I. Mitchell: Said income must be defined carefully because many retired residents lack earned income…
• 1:45:16 Gregory I. Mitchell: Raised a possible double benefit for owner-occupied two- and three-flats where both…
• 1:47:06 Gregory I. Mitchell: Said his office found seniors who had not received exemptions for years and asked why…
• 1:49:56 Emma Mitts: Asked what is being done to correct imbalances in property tax assessments before adding a…
• 1:53:13 Emma Mitts: Asked why implementation takes so long and said she supports the concept and wants to work on it.
• 1:58:15 Byron Sigcho-López: Said a 3% tax on incomes over $1 million would be less painful than property tax…
• 2:03:04 Appointment of Juliana Gonzalez as a Commissioner of the Chicago Housing Authority
• 2:09:54 David H. Moore: Asked whether the CHA nominee had met with the Central Advisory Council, said those resident…
• 2:16:13 Leni Manaa-Hoppenworth: Clarified that the request was for the nominees to meet with the president or…
• 2:21:18 Appointment of Brian Jawanza Malone as a Commissioner of the Chicago Housing Authority
• 2:23:30 Walter R. Burnett: Supported Malone's CHA appointment, citing their past work on affordable housing, and…
• 2:29:42 Angela Clay: Supported Malone's appointment and urged CHA board members to do site visits and address…
• 2:32:07 Pat Dowell: Supported Malone's appointment and urged CHA to speed up its transformation plan, citing slow…
• 2:33:12 Pat Dowell: Asked Malone whether public housing land should be used only for public housing or could include…
• 2:37:43 Byron Sigcho-López: Said he has known Brian Jawanza Malone for years as an organizer who cares about CHA…
• 2:39:19 License agreement for city access to property near Avenue O and 126th Street for environmental testing and…
• 2:42:32 Designation of North Milwaukee Avenue parcels as a low affordability community (35th Ward)
• 2:47:13 Financial restructuring and sale/transfer of Phoenix House apartments and vacant lots (24th Ward)
• 2:54:55 Loan restructurings for Senior Suites developments in the 10th, 45th and 27th Wards (items 8-10)
• 3:00:40 Loan restructuring for Senior Suites South Shore (5th Ward)
• 3:02:57 Amendment of Municipal Code Chapter 2-44 giving the Housing commissioner loan restructuring authority
• 3:21:12 Leni Manaa-Hoppenworth: Said a receivership at an Edgewater senior building disrupted residents' quality of…
• 3:29:34 ChiBlockBuilder open space land sales in the 15th, 16th and 37th Wards (substitute)
• 3:34:47 Leni Manaa-Hoppenworth: Asked how long ChiBlockBuilder has existed and how the program measures success amid…
• 3:37:52 Sale of vacant city parcels to NeighborSpace for a community garden in the 10th Ward (substitute)
• 3:39:13 Peter Chico: Moved to defer the NeighborSpace parcel sale to allow more time with stakeholders and community…
• 3:39:48 Sale of city-owned side yard parcels in the 20th Ward through ChiBlockBuilder

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 met on September 11, 2024, heard five public commenters, approved its July Rule 45 report, and held a subject matter hearing with the Cook County Board of Review and the Institute on Taxation and Economic Policy on a proposed state property tax circuit breaker that would rebate property taxes above 5% of household income, including renters; no vote was taken on the hearing. The committee recommended approval of two Chicago Housing Authority board appointments, Juliana Gonzalez after members agreed she would meet with Central Advisory Council members before the full Council meeting, and Brian Jawanza Malone. It also recommended passage of an access agreement for environmental work at the Schroud site, a low-affordability designation along North Milwaukee Avenue in the 35th Ward, the sale and transfer of the Phoenix House apartments, loan restructurings for several Senior Suites developments, an ordinance giving the Department of Housing commissioner authority to approve certain loan restructurings, and ChiBlockBuilder land sales in several wards. An item on vacant parcels in the 10th Ward was deferred at Alderperson Peter Chico request.

Topics: property tax circuit breaker, property tax relief, Chicago Housing Authority appointments, affordable housing preservation, loan restructuring, low affordability communities, ChiBlockBuilder land sales, environmental remediation, public comment

Agenda items discussed

• 10:17 Rule 59 remote participation requests: passed
• 10:57 Public comment: discussed
• 27:35 Approval of the July 10, 2024 Rule 45 report: passed
• 28:00 Subject matter hearing on a proposed Illinois property tax circuit breaker program: discussed
• 2:03:04 Appointment of Juliana Gonzalez as a Commissioner of the Chicago Housing Authority: passed
• 2:21:18 Appointment of Brian Jawanza Malone as a Commissioner of the Chicago Housing Authority: passed
• 2:39:19 License agreement for city access to property near Avenue O and 126th Street for environmental testing and abatement (10th Ward) (O2024-0011043): passed
• 2:42:32 Designation of North Milwaukee Avenue parcels as a low affordability community (35th Ward): passed
• 2:47:13 Financial restructuring and sale/transfer of Phoenix House apartments and vacant lots (24th Ward): passed
• 2:54:55 Loan restructurings for Senior Suites developments in the 10th, 45th and 27th Wards (items 8-10): passed
• 3:00:40 Loan restructuring for Senior Suites South Shore (5th Ward): passed
• 3:02:57 Amendment of Municipal Code Chapter 2-44 giving the Housing commissioner loan restructuring authority: passed
• 3:29:34 ChiBlockBuilder open space land sales in the 15th, 16th and 37th Wards (substitute): passed
• 3:37:52 Sale of vacant city parcels to NeighborSpace for a community garden in the 10th Ward (substitute): deferred
• 3:39:48 Sale of city-owned side yard parcels in the 20th Ward through ChiBlockBuilder: passed

Alderpersons who spoke

• Byron Sigcho-López (chair): Opened the property tax subject matter hearing and said the statewide 3% referendum on incomes over $1 million is allocated to property tax relief. (28:04); Said a 3% tax on incomes over $1 million would be less painful than property tax increases and asked whether TIF surplus could provide short-term relief to seniors and low-income families. (1:58:15); Said he has known Brian Jawanza Malone for years as an organizer who cares about CHA residents and supported his appointment. (2:37:43)
• Jessica L. Fuentes (alderperson): Said Illinois has one of the most regressive tax systems and asked how the circuit breaker application would be made simple so eligible families apply. (54:07); Asked whether the state legislation includes a budget line for outreach. (56:11); Asked how income would be defined, noting seniors whose Social Security may not be counted could need the relief most. (58:45)
• Maria E. Hadden (alderperson): Asked about the structure, funding and outcomes of Illinois's former circuit breaker program and requested data through the chair. (1:12:07); Asked which General Assembly members are involved, saying the renter inclusion matters for her 75% renter ward facing displacement. (1:14:42); Asked which agencies would administer the program. (1:19:44)
• David H. Moore (alderperson): Asked whether residents must file taxes to receive the credit and whether the relief fund would be limited or available to all. (1:21:05); Asked how the renter credit would work and whether it could be double-counted when landlords absorb tax increases rather than passing them on. (1:24:44); Asked whether the CHA nominee had met with the Central Advisory Council, said those resident leaders should be consulted before confirmation, and moved to hold the item. (2:09:54)
• Gilbert Villegas (alderperson): Asked how the former circuit breaker was funded and what funding mechanism the new legislation would use. (1:28:30); Asked how renter eligibility would work without transparency between landlords and tenants, noting he is a landlord facing rising costs. (1:35:55)
• Pat Dowell (alderperson): Asked whether the renter credit depends on property value and said adding renters could be an administrative burden, requesting information on other states' programs. (1:39:58); Supported Malone's appointment and urged CHA to speed up its transformation plan, citing slow redevelopment of former public housing sites. (2:32:07); Asked Malone whether public housing land should be used only for public housing or could include other uses while keeping promises to returning residents. (2:33:12)
• Gregory I. Mitchell (alderperson): Said income must be defined carefully because many retired residents lack earned income and may not file taxes, and suggested involving the IRS. (1:42:42); Raised a possible double benefit for owner-occupied two- and three-flats where both owner and tenant could claim relief, while saying he supports the program. (1:45:16); Said his office found seniors who had not received exemptions for years and asked why seniors cannot receive exemptions automatically. (1:47:06)
• Emma Mitts (alderperson): Asked what is being done to correct imbalances in property tax assessments before adding a circuit breaker. (1:49:56); Asked why implementation takes so long and said she supports the concept and wants to work on it. (1:53:13)
• Walter R. Burnett (alderperson): Supported Malone's CHA appointment, citing their past work on affordable housing, and urged CHA to move faster on bringing displaced residents back. (2:23:30)
• Angela Clay (alderperson): Supported Malone's appointment and urged CHA board members to do site visits and address resident complaints such as recurring pest problems. (2:29:42)
• Leni Manaa-Hoppenworth (alderperson): Clarified that the request was for the nominees to meet with the president or members of the Central Advisory Council. (2:16:13); Said a receivership at an Edgewater senior building disrupted residents' quality of life and asked whether the restructuring ordinance would require staffing changes. (3:21:12); Asked how long ChiBlockBuilder has existed and how the program measures success amid a housing crisis. (3:34:47)
• Carlos Ramírez-Rosa (alderperson): Supported Malone's appointment, citing ten years of working with him on housing justice. (2:37:06); Said designating three Milwaukee Avenue parcels as low affordability would incentivize dense housing with at least 20% affordable units and increase property tax revenue from underused sites. (2:42:50)
• Peter Chico (alderperson): Moved to defer the NeighborSpace parcel sale to allow more time with stakeholders and community members. (3:39:13)

Exchanges between members

• 1:05:30 The chair thanked Fuentes and welcomed her advocacy on property taxes affecting Humboldt Park.
• 1:14:04 Hadden asked that data on the former circuit breaker program be provided through the chair.
• 1:36:29 Villegas noted, as Moore had mentioned, that landlords may avoid raising rent on good tenants.
• 1:39:51 Dowell said Moore and Villegas had covered some of her questions on the renter portion.
• 1:41:23 Dowell requested information through the chair on how other states administer renter programs.
• 1:42:50 Mitchell echoed Fuentes's point that income must be defined carefully.
• 1:46:02 Mitchell referenced Moore's double-dipping concern regarding owner-occupied two-flats.
• 1:57:42 Fuentes referred to Villegas's point about identifying the revenue source for the program.
• 1:59:09 The chair said he agreed with Fuentes on the need for long-term sustainable funding.
• 2:09:54 Moore thanked Fuentes for her remarks about the nominee before raising his concern.
• 2:13:09 Fuentes asked Moore to allow the appointment to pass with time for nominees to meet the Central Advisory Council before the Council meeting.
• 2:13:49 Moore accepted Fuentes's compromise if she would join him in deferring at Council if the meeting did not occur.
• 2:16:13 Manaa-Hoppenworth clarified Moore's request that nominees meet with CAC members.
• 2:27:22 Hadden echoed Burnett's comments in support of Malone.
• 2:32:38 Dowell supported Burnett's point about the need to speed up the CHA transformation plan.
• 2:43:15 Ramírez-Rosa noted that La Spata had previously used the low affordability designation in his ward.
• 3:35:33 Manaa-Hoppenworth referenced Dowell's earlier question about uses of public land.
• 3:39:06 The chair invited Chico to move deferral of his item and offered to work with him until it is ready.

Documents

• Agenda
• Summary
• Notice

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