Chicago Mayor-elect Brandon Johnson said he supports a proposal to triple the real estate transfer tax on sales of $1 million or more and made additional appointments to his transition team on Thursday.

They include affordable housing advocates, notably one who has advanced the transfer tax discussion, a sign he is struggling to keep a progressive housing policy campaign promise.

For his housing subcommittee, Johnson selected Julie Dworkin, policy director of the Chicago Coalition for the Homeless; Sendy Soto, senior director of community impact at the Community Trust of Chicago; jones.

The Chicago Coalition for the Homeless is one of the leading supporters of a proposal that would raise the real estate transfer tax on all real estate transactions over $1 million to 2.65 percent of the sale price, from 0.75 percent now on all transactions, regardless of price. . Dubbed “Bring Chicago Home,” and often nicknamed “The Mansion Tax,” the coalition estimates it generates an additional $163 million a year earmarked to combat homelessness.

Johnson has made it clear that expanding the affordable housing stock is a priority for the government, according to a statement from Dworkin.

“As a candidate, since his election, the mayor-elect has made it clear that bringing Chicago home and addressing homelessness is a top priority,” she said. “I am delighted to be working with the new administration to provide the dedicated funding needed to address our city’s homelessness crisis. I will also provide a perspective to the Housing Transition Council discussion, which focuses Provide housing resources for those who make housing a human right.”

The proposal, which has been around for years, was originally scheduled to be discussed in November, but due to Insufficient quorum At a City Council meeting under current Mayor Lori Lightfoot.

Johnson has yet to detail his legislative priorities on real estate and housing, though Dworkin’s appointment appears to reaffirm his commitment to consider some version of the Chicago homestead proposal.

Technically, the surcharge would be charged to buyers, but market participants say it will affect sellers and how they price. Additionally, the additional tax will be levied on top of transfer taxes already imposed by Cook County and the state.

The proposal has sparked controversy among real estate industry groups, many of whom Backing Johnson’s opponent Paul Vallaz in the election.

Illinois Realtors, the Neighborhood Homeowners Union and the Chicago Apartment Association have all opposed the measure, saying it would slow transactions. Multifamily groups have emphasized that rent increases may eventually occur as landlords pass the extra tax on to residents.Sales in the multifamily sector accounted for at least 20% the new tax, real deal previously reported.

It is unclear whether Johnson voted on the proposal in the city council, but several other progressive candidates won the election and will be sworn in with Johnson in May.

The impact of a similar proposal passed by Los Angeles voters last year before it went into effect this year was already being felt in the market, which is now facing a legal challenge From the real estate trade group.

read more

Leave a Reply

Your email address will not be published. Required fields are marked *