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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 incom...
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