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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

PPP Loan Scandal Busts Joliet Woman Working For Illinois Department Of Corrections: AG Kwame Raoul Reveals

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PPP Loan Scandal Busts Joliet Woman Working For Illinois Department Of Corrections: AG Kwame Raoul Reveals


JOLIET, IL —Attorney General Kwame Raoul issued a press release on Monday is alleging a Will County woman fraudulently received a Paycheck Protection Program (PPP) loan for more than $20,000 while employed by the Illinois Department of Corrections.

The Attorney General’s office charged Jamilah Franklin, 48, of Joliet, with one count of loan fraud of more than $10,000, a Class 2 felony punishable by up to seven years in prison; and three counts of forgery, Class 3 felonies punishable by up to five years in prison. Sentences are ultimately determined by the court. Franklin’s first court appearance is June 18.

“Federal assistance programs served as a lifeline for small businesses and unemployed Americans during the COVID-19 pandemic, and it is unacceptable that government employees would abuse that vital support,” Raoul said. “I will continue to collaborate with other agencies to hold public workers accountable for abusing these programs.”

Attorney General Raoul’s office alleges Franklin was employed by the DOC as a lieutenant when she fraudulently applied for a PPP loan from the U.S. Small Business Administration by falsely claiming she owned a business. According to Raoul’s office, Franklin received $20,516 in 2021 as a result.

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The Attorney General’s office is prosecuting this case based on a referral by the Office of Executive Inspector General and following an investigation by the Illinois State Police Division of Internal Investigation.

“The Illinois State Police pursues any state employee committing criminal behavior and will continue to work with Attorney General Raoul’s office to hold employees accountable and ensure justice,” said ISP Director Brendan F. Kelly.

Raoul’s office has prosecuted dozens of individuals for PPP loan fraud and referred other investigations to the appropriate state’s attorneys for further evaluation.

Deputy Chief Jonas Harger is prosecuting the case for Raoul’s Public Integrity Bureau.





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The Weekly: Illinois detention centers, Canvas breach and AI policies

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The Weekly: Illinois detention centers, Canvas breach and AI policies


The Daily Northwestern · The Weekly: Illinois detention centers, Canvas breach and AI policies   WALLIS ROGIN: Last week, The Daily reported on Illinois legislation defining where “detention center facilities” can be located, Northwestern professors’ policies on artificial intelligence and a Canvas hack that targeted over 9,000 schools. From The Daily Northwestern, I’m Wallis Rogin….



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Thousands of birds could migrate over the Chicago area this week, and here’s how to protect them

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Thousands of birds could migrate over the Chicago area this week, and here’s how to protect them


Thousands upon thousands of birds are expected to cross over Illinois as part of their spring migrations in coming days.

Thursday night saw the highest migration totals of the season so far, but researchers at Cornell believe that Sunday and Monday nights could see even more avian traffic in the skies over the Chicago area, with hundreds of thousands of birds expected to traverse the area.

According to estimates from Birdcast, Sunday night and into Monday morning there could be “medium” activity for migrating birds, with thousands of birds per kilometer flying over the area.

Even more birds are expected to take flight Monday night and into Tuesday morning thanks to favorable weather conditions, with a “high” number of birds expected to take to the skies over the Chicago area.

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According to estimates, up to 383 million birds could be in flight over the central United States during the peak of the migration overnight.

On Thursday night the Chicago area experienced its busiest night of the spring migration season so far, with more than 367,000 birds having been estimated to have passed over Cook County alone.

In all, more than 23,000,000 birds are believed to have crossed the state of Illinois so far during the spring migration.  

Among the primary birds expected to be flying through the area are American Redstarts, Magnolia Warblers, Baltimore Orioles and Indigo Buntings, according to researchers at the CornellLab.

As millions of birds continue visiting the Chicago area, here are some steps that residents can take to keep them safe.

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When do birds typically migrate?

Peak migration for birds over the state of Illinois occurs in mid-to-late May, with hundreds of different species heading north for the summer breeding season.

Those migration flights for songbirds and other species typically take place in the overnight hours. According to experts, birds typically take flight 30-to-45 minutes after sunset, with the greatest number of birds in flight typically seen approximately two-to-three hours later.

When should residents turn lights off?

One of the best ways to help protect birds is to turn off lights during peak migration times.

According to Birdcast, the best time to turn off or dim exterior lights and interior lights is between the hours of 11 p.m. and 6 a.m., when most birds are active.

Bright lights can disorient and attract birds, making them vulnerable to collisions and to predators on the ground, according to the website.

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Hundreds of millions of birds are killed each year in collisions with buildings, and residents and businesses are being asked to do their part to keep the creatures safe.

In addition to turning off unneeded exterior lights, residents and businesses are also asked to dim or turn off lights in lobbies, and to draw blinds to help keep light from escaping through windows.

Finally, exterior lights should be aimed downward and be well-shielded so that birds aren’t attracted to them.

Are there other steps?

Another key step in protecting birds is to bring pet cats inside during overnight hours.

According to the American Bird Conservancy, cats kill an estimated 2.4 billion birds in the United States every year, and during migration season those impacts can be even more devastating, as exhausted birds typically seek refuge in plants and trees to rest on their journeys, making them vulnerable to attack.

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Since cats like to hunt at night, active migrating birds can be a target, leading to experts asking residents to keep animals inside when possible.



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