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State Legislation Report - Commercial Real Estate

March, 2012

House Bill 5852:  This bill creates “The Vertical Construction Masonry Act” which requires that all vertical commercial construction started after July 1, 2013 must include masonry construction for at least 15% of the building’s components.  This would apply to new commercial buildings rising 15 feet or more above the ground.  IAR opposes.

House Bill 4694:  This bill amends the Tax Increment Finance(TIF) statute.  In provisions of the law regarding the approval of a redevelopment plan or redevelopment project area, this bill would require a three-fifths vote of the joint review board (now it’s just a simple majority for approval).  Further, the joint review board’s approval is binding (now in the law, it is a recommendation to the municipality) IAR opposes.  

Senate Bill 3688:  This bill extends the Illinois Enterprise Zones Act which is set to expire in 2013.  This bill also allows an Enterprise Zone to exist for 55 years (now 30 year allowance).  This bill also allows 10 additional zones to be created between 2013 and 2022.  Hearings on this legislation will take place in the spring and summer of this year with action in the General Assembly likely to take place in the fall veto session.   IAR is supportive.  There are expected to be several changes and additions to this bill.

House Bill 5453:  This bill, entitled the “Vacant Building in Foreclosure Responsibility Act,” emulates the recently passed Cook County ordinance on vacant properties, making similar provisions applicable statewide:  1) vacant properties must be registered with the Department of Financial and Professional Regulation; 2) lenders must maintain the property even before taking title to the property.  This applies to both commercial and residential vacant properties.   A particularly onerous provision of this bill states that if a real estate licensee, among others, becomes aware of a property vacant status and does not act to get it registered, the licensee is in violation of the Illinois Consumer Fraud Act!  IAR and DFPR oppose.

Senate Bill 3212:  IAR supports this bill which creates an Illinois income tax credit for the costs of remediation/clean-up of “brownfields.”

House Bill 4018:  This bill permits ALL municipalities to establish a business registry and require that businesses within the municipality to register the owner’s name; business address; business and emergency phone number; email address of the business; internet website address; nature of the business- all deemed to be public record.  If a business, after receiving two notices, fails to register the municipality can charge a $200 penalty.   IAR opposes.

 House Bill 4025: This bill seeks to change the date by which farm property owners would have to give lessees of their farmland notice of the termination of a lease to August 1 of each year.  The IAR had opposed this bill and testified against it. Various farm groups also testified and reported that most notices typically occur on or around March 1^st.  The sponsor chose not to move the bill.  

 For more information, contact Mike Scobey of IAR Staff at mscobey@iar.org

To view these bills in their entirety, go to www.ilga.gov

News of note

Private Property Rights Win in Recent U. S. Supreme Court Ruling

The U.S. Supreme Court ruled last month that Michael and Chantell Sackett could appeal a government claim that their property contains wetlands.  The U.S. Environment Protection Agency argued the property owners first had to undertake time-consuming and expensive mitigation and monitoring before it would consider an appeal of its order to stop building their house because of a wetlands it contends is on the property.

NAR filed an amicus brief with other groups in the case, saying the couple’s due process rights were being violated. The Court agreed, enabling the couple to have its hearing without having to first undertake the mitigation and monitoring.
For more information, contact Russell Riggs at rriggs@realtors.org

Studies & Reports

New study shows devastating impact of lease accounting rules. Read the latest from the National Association of REALTORS® on pending legislation and the proposed Lease Accounting rule. Download talking points (pdf).

Commercial Real Estate Market Survey: January 2012 - This NAR survey collects data from commercial REALTORS® and is designed to provide members with an overview of the market performance, sales and rental transactions, current economic challenges, and future expectations.

Internet Sales Tax issue getting more attention in Congress as online purchases continue to increase. The House recently held a hearing on this issue important in particular to commercial REALTORS®. This a federal issue but Illinois REALTORS® and lobbyists are out in front working to support bricks and mortar busines owners. If you want to stay on top of the issue, learn more from a video of the hearing It's a bipartisan issue and with two bills are under consideration H.R. 3129 in the House and S.1832 in the Senate, the good news is the issue is getting some attention and traction.

SBA Expands Temporary Refinance Program
Effective April 4, the U.S. Small Business Administration (SBA) has expanded its temporary 504 commercial real estate refinance program to assist more small business owners struggling to refinance commercial loans.

• SBA's 504 Refinance Program
• REALTOR.org report

Commercial Resources

• Commercial Webinars from REALTOR.org

• Does New Development Pay For Itself?  

• Field Guide to Breaking Into Commercial Sales

• 2011 Commercial Real Estate Lending Survey

Commercial Properties

• Commercial Real Estate Listings & Investment Properties - National Association of REALTORS® commercial property search.
• Commercial Information Exchange - Search the property databases of select local REALTOR® Controlled Commercial Information Exchanges (CIE).
• Location One Information System (LOIS) - This searchable economic development database provides information on buildings, sites and locations for businesses looking to expand.