In the latest attempt by the real estate lobby to thwart Mayor Brandon Johnson’s efforts to fulfill a key campaign promise, a coalition of business groups has announced that a “Return to Chicago” referendum question will be placed on the March primary ballot. filed a lawsuit to stop it from happening.
The lawsuit was filed Friday. Groups opposed to increasing taxes on high-value real estate sales, including the Chicago Building Owners and Managers Association, Chicagoland Apartment Association, Neighborhood Building Owners Alliance and other real estate groups, filed suit in Cook County Circuit Court. They have opposed the proposal, arguing it would hamper sales in an already fragile market.
Their 12-page complaint argues that the referendum question passed by the City Council in November to allocate new revenue to combat homelessness in Chicago violates the city’s city code and constitution and should be left to voters. claims not to be.
The lawsuit was filed against the Chicago Board of Elections, which claims the city is not the “proper defendant in this case” and that the city and City Council are the “proper defendants.” .
Given that the city is not currently a party to the lawsuit, Mayor Brandon Johnson’s administration said in a statement that the question will be placed on a vote, adding, “And Mayor Johnson is committed to addressing the city’s homelessness problem and providing assistance to the homeless.” “We believe we can create even more much-needed resources to deliver.” Tens of thousands of our neighbors without a home. ”
BOMA/Chicago Executive Director Farzin Paran said in his release announcing the lawsuit: “Homelessness is a serious problem in our city that must be addressed with a serious plan that involves all stakeholders. ” he said.
“These important public policy issues should be presented to voters with fairness, detail and transparency. Rather, this referendum is playing a political role,” Paran said. .
[ Will Mayor Brandon Johnson’s transfer tax plan deliver for the homeless amid a real estate downturn? ]
Doug Schenkelberg, executive director of the Chicago Coalition for the Homeless, said in a news release that homeless advocates believe “the ballot measure is constitutional and we believe in its integrity.” .
The lawsuit is “a political maneuver orchestrated to protect the interests of greedy landlords and multinational real estate companies at the expense of black, brown, working class, and homeless Chicagoans,” Schenkelberg said. Stated.
The referendum asks voters to change the way real estate sales are taxed. Currently, the city charges the same flat rate of 0.75% on all real estate sales. Bring Chicago Home slightly lowers the tax on the first $1 million in value to 0.6%, while increasing the tax rate to 2% for properties valued between $1 million and $1.5 million, and increases the tax rate to 2% for properties valued at more than $1.5 million. demands that the tax rate be further increased. million, to 3%.
The majority of sales will be taxed at a lower rate, but large commercial facilities such as offices, large apartment complexes, stores and industrial sites will bear more of the burden.
[ ‘Bring Chicago Home’ proposal aims to boost funding for homeless services. But a similar measure in LA slowed real estate sales. ]
The lawsuit focuses on three parts of the referendum question, as well as the part that lowers the tax rate on affordable housing. They argue that it is unclear exactly what programs the estimated $100 million in additional revenue per year will go to.
Recent legal challenges involving other high-profile referendum issues have failed. A judge rejected the Illinois Policy Institute’s proposal to provide voters with a “corrective notice” of “misleading” language in a statewide progressive income tax referendum. The question was ultimately rejected by voters. Another lawsuit to block the proposed Workers’ Rights Amendment from appearing on the ballot also failed. Voters approved the amendment last year.
The real estate group is headed by two politically connected lawyers. They include Mike Kasper, a longtime top attorney for former House Speaker Michael Madigan and the state’s Democratic Party, and Michael Del Gardo, who recently represented Madigan’s former aide Will Cousineau.
Mail-in ballots are expected to start being mailed out by February 8th. “If there is a court order to remove the question after voting has begun, the board will most likely not reprint the ballots or make any early programming changes, only to conceal the results of the election.” ” said Max Bieber, a spokesman for the Board of Elections.
aquig@chicagotribune.com