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PROPOSED SUBSTITUTE TO FILE 24-5414 - Issued 9/19/2024
PROPOSED RESOLUTION CREATING COOK COUNTY HOMEOWNER RELIEF FUND AND SPECIAL PURPOSE FUND
WHEREAS, in recent years, Cook County has enacted several programs designed to provide relief to County residents facing extraordinary financial hardship due to unforeseen or unexpected changes in circumstances, including the Cook County Medical Debt Relief Initiative, the COVID-19 Emergency Rental Assistance Program, and the Promise Guaranteed Income Pilot Program, each of which include household income limitations as part of its eligibility requirements; and
WHEREAS, Cook County is a home rule county and has authority under the Illinois Constitution to create a cash grant program for county residents experiencing financial hardship; and
WHEREAS, late payment property tax interest received by Cook County may lawfully be used to fund Cook County programs authorized under the County’s home rule authority, including grant programs to county residents experiencing financial hardship; and
WHEREAS, many Cook County homeowners now face a crisis due to a unexpected and substantial increase in their property tax bills; and
WHEREAS, research by Fannie Mae implies that property taxes should account for no more than about 5 percent of household income in order to keep total housing costs below threshold; and
WHEREAS, a study by the University of Chicago analyzing Cook County property tax and income data showed that more than 248,000 homeowners, or 21.6 percent, pay 10% or more of their income on property taxes; and
WHEREAS, the University of Chicago found that seniors aged 65+ disproportionately have higher property tax burdens and the percentage of household income spent on property taxes generally increases with age, with 33 percent of senior households paying 10 percent of their annual income on property taxes and 37 percent of seniors in gentrifying areas studied paid 20 percent or more of their annual income; and
WHEREAS, for many homeowners, the increase in the property tax bills received in 2024 will far outpace any increase in household income. This increase in property taxes will make it impossible for many Cook County residents to sustain homeownership, threatening neighborhood stabilization, which, without intervention by the County, will increase vacancies, leading to an increase in the property tax burden to be shouldered by the remaining property owners.
THEREFORE BE IT RESOLVED, that Cook County shall create a Homeowner Relief Fund seeking to provide relief to the most vulnerable homeowners, who pay the highest portion of household income toward property taxes, and who have seen the sharpest rise in those tax payments; and
BE IT FURTHER RESOLVED, that the Cook County Homeowner Relief Fund shall award one-time, unrestricted cash payments to Cook County residents who are experiencing financial hardship due as a result of property taxes and meet eligible criteria, to be determined.
BE IT FURTHER RESOLVED, the County Board authorizes the Cook County Budget Director and Comptroller to create and implement a Special Purpose Fund for the Cook County Homeowner Relief Fund and other accounting measures to track the disbursement of funds in accordance with this Resolution.
BE IT FURTHER RESOLVED, that the Cook County Budget Director and Comptroller shall be authorized to transfer up to $15,000,000.00 of unallocated revenue received pursuant to Section 21-15 during FY 2024 from the General Fund to the Homeowner Relief Fund.
BE IT FURTHER RESOLVED, that a Special Purpose Fund for the Cook County Homeowner Relief Fund shall sunset on November 30, 2026 and can be further evaluated by the Board at that time. .end