April 1, 2022 State Capitol Report

2022 Capitol Conference

A HUGE Success! Thank YOU for sharing your REALTOR® voice

On Tuesday morning, Illinois REALTORS® kicked off our annual Capitol Conference by welcoming REALTORS® to Springfield with a legislative breakfast featuring special guest, Speaker of the House Chris Welch. Over 400 REALTORS® enjoyed hearing from leaders in the General Assembly, insight into the advocacy programs provided by the Illinois REALTORS® and a trip to the Capitol steps for a group photo. Thank you to all who attended and for showing the strength in our advocacy and the power of the REALTOR® Voice.

This Week in Springfield

Bills that advanced this week

The Senate Executive Committee held a hearing to discuss the amendment Illinois REALTORS fought hard to get on HB 2775. The amendment pares down significantly the original bill, which had many onerous provisions in addition to the traditional “Source of Income” language. While Illinois REALTORS® remains philosophically opposed to this initiative, we supported the amendment which greatly reduced our concerns. The amended bill passed the Senate this afternoon with a 30-17-0 vote.

Makes clarifications in the Residential Real Property Disclosure Act. Illinois REALTORS® worked on this legislation with the Illinois Real Estate Lawyers Association, and we SUPPORT this legislation, as amended. The bill passed in the Senate on Thursday with a 53-0-0 vote and will now be sent to the Governor.

The bill provides that condo associations must provide the copies of information that must be made available to prospective purchasers upon request within no more than 10 days (rather than the current 30-days allowance). The bill leaves the current language in the Act that states that fees charged to supply copies of documents must be “reasonable…covering the direct out-of-pocket cost of providing such information,” but adds that such “reasonable” fee cannot in any case exceed $375. The bill also has a provision allowing the HOA to charge an additional $100 “rush service” fee to supply the material withing 72 hours. HB 5246 passed the House Thursday with a 111-0-0 vote and will now be sent to the Senate.

The bill creates the Money Laundering in Real Estate Task Force, which is in large part in response to the desire to assess and make recommendations to eliminate Russian money laundering through real estate. The bill, as amended, provides that two representatives “from a state association representing real estate brokers” (us) shall be appointed to the Task Force by the Governor. Illinois REALTORS® is NEUTRAL on this legislation which is pending in the House.

Initially, the bill would have codified certain language from the Federal Housing Act into the Illinois Human Rights Act. The new language introduced the term, “otherwise make unavailable.” Illinois REALTORS® pointed out that without the context of the precedent and other federal provisions, the addition of this language would have potentially caused confusion and uncertainty. After discussions with our legislative and legal teams, Chairperson Gong Gershowitz understood our concerns and took that provision out of the bill. The Legislative Team appreciates the sponsor seeking and hearing our views. The bill has passed both houses. Illinois REALTORS® is NEUTRAL on the bill.

As a result of the Surfside Condo collapse, condo owners are asking for information such as reserve studies regarding the property. Rep. Croke introduced this bill to add “any reserve study” to the list of information that is to be provided to unit owners upon request. The bill passed the House in February and on Tuesday,  HB 5148 passed the Senate with a 48-1-0 Vote. Due to an amendment while in the Senate, the bill now must go back to the House for concurrence in the Senate amendment. Illinois REALTORS® SUPPORTS this measure.

Allows condominium associations and homeowner associations to file appeals with the Property Tax Appeal Board. SB 3069 passed the Senate in February and passed the House Wednesday, with a 114-0-0 vote. Due to an amendment in the House, the bill must go back to the Senate for concurrence.

Still Active

Amends various regulatory Acts administered by the Department of Financial and Professional Regulation (IDFPR), including the Illinois Real Estate License Act. The changes are clean-up, clarification and updating the law. Illinois REALTORS® worked with IDFPR in drafting this bill, and we SUPPORT the legislation that is now expected to pass in the Senate at any time.

Intended to address wage theft issues across the construction industry, the bill provides that if a subcontractor fails to pay its employees, the primary contractor will be liable for a wage claim under the Wage Payment and Collection Act. As originally written, the term, “primary contractor” would have included homeowners acting as the primary contractor for their own homestead. Following negotiations, the revised bill, which is now advancing, exempts homeowners acting as the primary contractor on his or her own residence. As amended with this change, Illinois REALTORS® is neutral on the bill. Several other organizations continue to oppose this bill. This week a highly emotional hearing on this bill took place. Small minority construction company owners continue to seek changes to the bill, which is awaiting final action (a Third Reading vote) in the Senate.

Mandating special permits lengthening the process and excessive permitting fees (beginning at $200,000) are just one of the many controversial issues in this bill that would establish a process for designating environmental justice communities. The Illinois REALTORS® Legislative Team are members of the coalition that continues to collaborate with the sponsors. This week the sponsors announced that they would hold this bill so further negotiations may take place throughout the summer.

Modifies several provisions related to the assessed value of residential property. This week the bill moved to 3rd Reading (Passage Stage) in the House. Illinois REALTORS® are NEUTRAL.

Next Week At A Glance — Last Week?

Both the House and Senate plan to be in Springfield straight through until next Friday, April 8. The early adjournment date is due to the 2022 Illinois Primary Election now being conducted on Tuesday, June 28. Your Illinois REALTORS® Legislative Team will continue to conduct negotiation meetings on bills that are still active and mentioned above. REALTOR® input remains a critical part of every bill that affects the real estate industry and private property rights. Issues we anticipate next week include: Housing rental and mortgage assistance included in the budget; legislation allowing local government to require disclosure of homes in a potential area that could be impacted by hazardous material explosions (i.e., near a railroad track hauling hazardous substances), other last minute legislative attempts, as well as the further action pending on the bills listed above.

THANK YOU for your continued interest and involvement in Illinois REALTOR® Advocacy!

STAY TUNED for final action next week!

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April 25, 2023