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Property-Tax Foreclosure Reform Gets Put Off By Illinois Legislators

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Property-Tax Foreclosure Reform Gets Put Off By Illinois Legislators


This story was produced by Injustice Watch, a nonprofit newsroom in Chicago that investigates issues of equity and justice in the Cook County court system. Sign up here to get their weekly newsletter.

In their end-of-session dash to pass a state budget, Illinois lawmakers put off consideration of proposed reforms to property tax sales and foreclosures.

That leaves Illinois the only remaining state where homeowners can face losing not just their homes but also all of the equity in them they’ve accumulated if their homes are foreclosed on for falling far behind on paying their property taxes.

Experts say it also means Illinois is out of step with a 2-year-old Supreme Court ruling that mandated that local governments give homeowners any money that’s left over after their homes are sold to pay off their tax debt and related fees and penalties.

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More than 1,000 owner-occupied homes in Cook County have been taken in tax foreclosures since 2019, mostly in majority-Black communities, an investigation by Injustice Watch and the Investigative Project on Race and Equity published in May by the Chicago Sun-Times found.

Those homes had a fair-market value totaling $108 million, according to county assessments. The homeowners lost them over tax debts that collectively amounted to just a fraction of that — $2.3 million.

All of that equity went into the pockets of private investors, known as tax buyers, who paid the delinquent taxes at a government auction, then took ownership of the properties when homeowners didn’t repay them in time. The taxes owed often were several times less than what investors made selling the homes. 

And hundreds more homeowners in Cook County are in the final stages of tax foreclosure and could end up losing all of their equity under the current system, court records show.

Legal experts and homeowner advocates say the system hits Black homeowners especially hard.

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For decades, efforts to win reforms in Springfield have failed. Supporters have hoped they’d have better luck this year thanks largely to the Supreme Court’s ruling and several lawsuits filed in its wake by former homeowners seeking their lost equity.

The proposals this year — pushed by lawmakers including state Sen. Celina Villanueva, D-Chicago, and state Rep. Will Guzzardi, D-Chicago — would have put homes in tax foreclosure up for sale at a public auction instead of immediately transferring ownership to tax buyers. And then any proceeds exceeding the taxes owed would go back to homeowners.

“I’m frustrated that we weren’t able to resolve this problem this legislative session, but we made a lot of headway,” Guzzardi said.

Legislators did send Gov. JB Pritzker a stopgap measure that would pause interest charges on delinquent taxes starting in September and allow Cook County Treasurer Maria Pappas to postpone the tax sale this year.

More than 12,000 owner-occupied homes with delinquent property taxes had been set to go to auction this year, including nearly 3,000 homes owned by people 65 and older.

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Pappas said her office will push for legislators to pass reform legislation when they return for their fall veto session. 

Pappas wouldn’t would provide details about that legislation. 

Advocates have long called for lawmakers to give homeowners more time to pay their delinquent property taxes, to let them pay in installments and to cut out private investors from the process altogether.

The temporary measures passed last week were to “give the state more time to find consensus,” a spokesperson for state Senate President Don Harmon, D-Oak Park, said. 

Lawyers and lobbyists representing the biggest tax buyers didn’t respond to requests for comment.

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“It boggles the mind that the state legislature would just keep kicking the can down the road, and you have a crisis on your hands,” said Rita Jefferson, an analyst with the Institute on Taxation and Economic Policy, a nonprofit that advocates for more equitable tax policies.

This article first appeared on Injustice Watch and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.





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Illinois

‘Mini Nerf football’: Hailstone produced during severe storms breaks Illinois record

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‘Mini Nerf football’: Hailstone produced during severe storms breaks Illinois record


A Kankakee 14-year-old discovered a larger-than-average hailstone during severe storms in Illinois. That hailstone broke the record for largest hailstone not just in Illinois but possibly for any place east of the Mississippi River. FOX Chicago meteorologist JD Rudd explains how the hailstone was discovered and how researchers found it broke the record.



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Residents, lawmakers oppose proposed Illinois American Water rate increase at Bolingbrook hearing

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Residents, lawmakers oppose proposed Illinois American Water rate increase at Bolingbrook hearing


BOLINGBROOK, Ill. (WLS) — Dozens of southwest suburban residents and lawmakers voiced opposition Tuesday night to Illinois American Water’s proposed $142 million rate increase during an Illinois Commerce Commission hearing in Bolingbrook.

Nearly every speaker during the first hour of the hearing spoke against the proposal, with many concerns centered on affordability and the impact of higher utility costs on families and seniors.

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Bolingbrook Mayor Mary Alexander-Basta urged regulators to reject the request.

“Water is not a luxury. It is not optional. It is a basic human necessity,” Alexander-Basta said.

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Illinois American Water President Rebecca Losli defended the proposal, saying additional revenue is needed to support infrastructure improvements.

“We do this because of our customers. We are investing in this because of you. We want less water main breaks, and less constructions, less water boil orders. Simply put, continuing to invest in our water infrastructure is critical to ensuring that we provide reliable service to all of you,” Losli said.

According to Illinois American Water, the proposed increase would add about $14 per month for a typical customer using 3,500 gallons of water. Wastewater customers would see an increase of about $28 per month.

Several residents told regulators they are still feeling the effects of the utility’s previous rate increase. Pat Smith described changes she has made to reduce water use.

“I bathe twice a week now, instead of every day. I wear my clothes multiple times before washing,” Smith said. She later added, “This is unacceptable and the longer it goes the worse it’s going to get.”

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Bolingbrook resident Michael Boyd also expressed concern about the proposal’s impact on customers.

“What concerns me is the frequency and size of the proposed increase and what it means for ordinary families who are already struggling,” Boyd said.

Several elected officials also called on the Illinois Commerce Commission to deny the request.

Illinois state Rep. Natalie Manley told attendees, “Just because it’s legal does not make it right.”

Alexander-Basta echoed that sentiment, saying, “Today, Bolingbrook is taking the lead in saying what people across the state have been saying for years: Enough is enough.”

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Additional hearings in the case are scheduled for August. The Illinois Commerce Commission is expected to issue a final decision by Dec. 18.

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2 teens hospitalized after being rescued by bystanders from Lake Michigan at Illinois Beach State Park near Zion

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2 teens hospitalized after being rescued by bystanders from Lake Michigan at Illinois Beach State Park near Zion


Firefighters and paramedics tend to two victims who were pulled from Lake Michigan at Illinois Beach State Park in unincorporated Zion after struggling in the water Monday evening. | Photos: Promociones Noticias Y Más

Two teenage boys were transported to the hospital after they were rescued by friends and bystanders from Lake Michigan at Illinois Beach State Park near Zion Monday evening.

The Beach Park Fire Department and Lake County Sheriff’s Office responded around 6:15 p.m. Monday to Adeline Jay Geo-Karis Illinois Beach State Park, 1 Lake Front Drive in unincorporated Zion, for a report of a water rescue.

911 callers reported two people in Lake Michigan struggling approximately 100 yards from shore.

Beach Park Fire Department Battalion Chief Thomas Hopkins said crews arrived and learned two teenage males had been in distress in the water.

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They were rescued by friends and bystanders and were on shore when emergency crews arrived.

A significant response was initially dispatched but was downgraded after it was determined that no one was still in need of rescue, Hopkins said.

The incident happened at the main beach while the victims were swimming with their friends.

Hopkins said paramedics provided medical care to both of the victims and transported them to Vista Medical Center East in Waukegan.

One of the victims, who was doing worse than the other, seemed to improve by the time the ambulance arrived at the hospital, Hopkins said.

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Both were awake and talking. Their exact conditions were not known but they were both expected to survive.

Hopkins said visitors at the state park should be cautious and aware. The state provides life preservers at the beach for patrons to use.

Hopkins also said that the state has made safety improvements but Lake Michigan still can be “very dangerous.”

The Zion Fire/Rescue Department assisted the Beach Park Fire Department during the incident.



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