Illinois REALTORS® February 2022

THE VOICE FOR REAL ESTATE IN ILLINOIS

FEBRUARY 2022

You are the key to unlocking the dream EVERYONE deserves the American Dream of homeownership

www.IllinoisRealtors.org

THE OFFICIAL PUBLICATION OF ILLINOIS REALTORS® ILLINOIS REALTOR® February 2022

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TABLE OF CONTENTS FEBRUARY 2022

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Inside Track

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President’s Message

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Quick Takes

Creating opportunity for the American Dream

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REALTORS® are the key to homeownership

Infographic: The typical REALTOR®

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• 2022 Leadership Development Class • How long are owners staying in homes • Seven presented with Presidential Medallions

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Legal Update

Pitfalls of buying your listings; Can text “agreements” be binding contracts?

18 Education

Be prepared for broker license renewal

21 8 Housing trends to watch in 2022 22 At the Capitol

Gearing up for an unpredictable legislative session

27 Meet Illinois REALTORS® Board of Directors

Broker license renewal requirements

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RVOICE: Scobey retires after 32 years leading local advocacy

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28 2022 Local Association leadership 32 Ethics

Advertising, unauthorized access to property top ethics citation list

33 Outreach

Using American Rescue Plan funds to address housing costs

35 Community

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Discriminatory Appraisals

Racial bias erodes housing equity and accessibility

ILLINOIS REALTOR® February 2022

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INSIDE TRACK How do you help people achieve the American Dream of homeownership?

Crystal Blanton

Fathom Realty Illinois, Chicago

“I help my community understand how REALTORS® help people achieve the American Dream. I educate them on how this goal can be achieved. With the many obstacles that can occur throughout the process – even during the initial steps – I continually provide reassurance that I am with them to the end.”

Laura Townsend-Dochwat

Coldwell Banker Brown Realtors, Edwardsville

“I believe everyone’s dream is different. For example, it may be someone’s dream to have a quaint little house on a lakefront that’s easy to maintain. It may be another’s to buy multi-family buildings and grow their portfolio into a rental empire. Listening to our clients and being resourceful, fast and transparent are the biggest factors to happy, closed transactions. We help our clients realize their dreams.”

Lucy “Luz” Marin

Century 21 Affiliated Maki, Waukegan

"As a REALTOR®, I guide clients individually based on their current circumstances. I build trust and listen carefully. I stay up to date on buyer programs to better guide each client and connect them with lenders that can assist with the qualification process. I am with them step by step all the way to the closing table. It is always rewarding when I hand over the keys to someone’s new home – it’s the American Dream."

Leimomi Manley

Coldwell Banker Realty, Hinsdale “To help people achieve the American Dream, I have to have the ears to listen to what they want. Growing up in both Japanese and American cultures, I also appreciate when I can learn more about my clients‘ backgrounds because cultures can influence how they make their buying and selling decisions.”

Sam Row

Keller Williams Pinnacle, O’Fallon

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“Educating my clients on the options and possibilities to buy their own home is my way of contributing to the American Dream. It’s shocking to me how many consumers don’t realize the variety of options they can use to buy a home, including little to ‘no money down’ loan programs, grants and seller-paid closing costs. The myth of needing large down payments can scare away many qualified buyers.”

ILLINOIS REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS 2022 Officers President Ezekiel “Zeke” Morris zekemorris@zekemorris.com President-elect Michael Gobber, ABR, CIPS, CNC, CSC, GRI, SFR mike@gobberrealestate.com Treasurer Matt Silver, C2EX, CRS, ePro, GRI mattsilver@corcoranurban.com Immediate Past President Sue Miller, ABR, AHWD, BPOR, C2EX, CRB, CRS, GRI, ePro, LTG, PMN, SFR, SRS smiller@coldwellhomes.com Chief Executive Officer Jeffrey T. Baker Executive Vice President Kristen Butcher, CMP Vice President Marketing and Communications Anthony Hebron Director of Marketing Stephanie Sievers Senior Marketing Content Manager Dawn Tebrinke Marketing Content Specialist Bill Kozar Graphics & Design Manager David Hine For advertising information contact: Advertising & Sponsorship, 217-529-2600, info@IllinoisRealtors.org ILLINOIS REALTOR® (ISSN 0744-221) is published four times a year during the months of January, April, July, and ­October by Illinois REALTORS®, Post Office Box 19451, Springfield, Illinois 62794-9451. Periodical postage paid at Springfield, Illinois and at additional mailing offices. Postmaster: Send address changes to: ILLINOIS REALTOR®, Post Office Box 19451, Springfield, Illinois 62794-9451, 217-529-2600.

Opinions expressed in any signed articles of ILLINOIS REALTOR® are those of the author and do not necessarily represent the opinions of Illinois ­REALTORS®. Advertising of product or services does not imply endorsement.

Advertising rates are available at www.IllinoisRealtors.org or on request. A ­ nnual dues of every REALTOR®, ­REALTOR-ASSOCIATE®, and Affiliate member include $3 for a one-year subscription to the ILLINOIS REALTOR®.

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PRESIDENT'S MESSAGE We create the opportunity for EVERYONE to achieve the American Dream

Ezekiel “Zeke” Morris President

I am honored and humbled to serve as your 2022 Illinois REALTORS® President. I look forward to us working together this year on: u Preserving and creating housing that is affordable for everyone in the state u Diversifying the real estate industry u Identifying and breaking down barriers to homeownership such as discriminatory appraisals and u Creating the opportunity for all of our clients to achieve the American Dream of homeownership As you know, these last few years we’ve focused our legislative agenda on property management as well as preserving and creating more

housing that is affordable. Some of our concepts for creating new resources and incentives to finance affordable housing are embodied in measures that went into effect this year. But that is not good enough. This year, Illinois REALTORS®, with your help, will use our combined influence to push even harder to ensure housing affordability and availability are the top issues of our state elected officials.

We also are strengthening our state and local governmental affairs program to better enable us to work on both residential and commercial property management policy issues at the local, regional and state levels. As someone who has done commercial real estate work over the years, I am pleased to tell you that in the coming year your Illinois REALTORS® will be taking even greater steps to promote our state’s commercial real estate sector to national and international investors. A few of those moves have already occurred.

But even with our dedicated staff, our success will be determined in part by you.

We need you to help us identify harmful legislation being considered, answer our Calls for Action to let elected officials know our position on such issues, and continue – if possible to increase – your investment in RPAC to secure our future at the local, state and federal levels.

This year we will continue our longstanding commitment to diversity

in the workplace by once again offering grants for Illinois real estate firms to retain experts in diversity and inclusion to help them understand sensitive topics and implement business practices that prioritize workplace diversity. This partnership between Illinois REALTORS® and the Illinois Real Estate Educational Foundation (REEF) will again include increasing the number of minority scholarships awarded.

The association’s theme this year focuses on creating the opportunity for everyone to achieve the American Dream of homeownership. That is the dream of building wealth through property ownership – both residential and commercial. Many of your neighbors, and mine, have been deprived of this Dream.

To break down the remaining vestiges of housing inequity facing women, people of color and our clients at all socioeconomic levels, our Discriminatory Appraisals Task Force has conducted research, disseminated information to our members and the media, and plans to take even more steps to remove this hindrance to homeownership.

We, REALTORS®, must work together this year to preserve private property rights and create the opportunity for everyone in Illinois to achieve the American Dream of homeownership. I look forward to doing so with you in 2022!

Ezekiel “Zeke” Morris Illinois REALTORS® President

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QUICK TAKES History indicates real estate is a good hedge against inflation: Yun Inflation may be a concern for Americans in 2022, according to Lawrence Yun, chief economist of the National Association of REALTORS®, but even if mortgage rates, energy prices, rents and costs of consumer goods go up, the value of real estate

generally seems safe.

Looking back at high inflationary periods in American history, such as the 1970s and 1980s, Yun says home prices tended to outpace inflation. In the 1970s, the Consumer Price Index averaged 7.1 percent annually, while home prices averaged 9.9 percent. In the 1980s, the CPI was 5.5 percent and home prices averaged 5.6 percent, he said. Other decades showed similar patterns.

“Therefore, for those concerned about the loss in purchasing power of money and savings, be assured that real estate has proven to be a good hedge against inflation,” Yun said. For more information, go to: bit.ly/InflationAndRealEstate

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YEARS

The average homeowner’s tenure in a home, according to NAR’s 2021 Profile of Home Buyers and Sellers.

It dropped from 10 years the year before, the largest year-over-year decline in the history of the data set, NAR reported. bit.ly/HomeTenure

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2022 Color of the Year: Very Peri

Guzmán testifies before Housing Committee on behalf of Illinois REALTORS®

You might see more periwinkle blue used in interior design elements and accents this year.

Pantone has chosen Very Peri, a blue with violet-red undertones as its color of the year.

Chicago REALTOR® Mabél Guzmán, Coldwell Banker Realty, testified virtually before a committee of the Illinois House of Representatives in November, advocating for homeownership as a means of wealth building and to reinforce the importance of making the American Dream of homeownership available to all.

Pippion McGriff named 2022 Special Committee Liaison As 2022 Illinois REALTORS® Special Committee Board Liaison, Nykea Pippion McGriff will coordinate with leadership and the chairs and vice chairs of the Commercial and Property Management Committee, Affordable Housing and Community Involvement Committee and Local Government Affairs Committee.

Pippion McGriff is vice president of brokerage services at Coldwell Banker Realty in Chicago.

Miller honors seven with Presidential Medallions Illinois REALTORS® 2021 President Sue Miller recognized REALTORS® Tommy Choi, Matt Difanis, Lutalo McGee, Michael D. Oldenettel, Mike Scobey, Ginger Sreenan and Rebecca Thomson with Presidential Medallions for their outstanding service to the association during 2021.

Tommy Choi

Matt Difanis

Mike Scobey

Lutalo McGee

Ginger Sreenan

Michael D. Oldenettel

Fannie Mae instituting tighter condo lender, appraisal requirements In response to the tragic 2021 condo collapse in South Florida, Fannie Mae has implemented new guidelines aimed at blocking the purchase of mortgage loans in condos and co-ops with five or more attached units if there is significant deferred maintenance that affects the building’s safety. Read more: bit.ly/UpdatedFannieMae CondoRules

Rebecca Thomson ILLINOIS REALTOR® February 2022

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LEGAL UPDATE Legal pitfalls of buying your own listings; could ‘agreements’ by text be binding contracts?

As a listing broker, may I purchase my own listing?

Anneliese Fierstos Illinois REALTORS® Legal Hotline Attorney

Have a legal question?

Illinois REALTORS® Legal Hotline is the Designated REALTOR®/ managing broker’s go-to source for legal information.

Hours: 9 a.m. - 4 p.m.

Monday – Friday Phone: 800-952-0578 Email: afierstos@ IllinoisRealtors.org.

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The safest answer to this question is “NO.” A listing broker is in a very vulnerable position when they choose to buy a client’s listing. In addition, there is a violation of the Illinois Real Estate License Act dual agency prohibition when the broker is both the buyer and the agent for the seller. Not only is this prohibited by law, but the appearance is bad because a listing broker may be perceived to be taking advantage of an unlicensed seller by buying the seller’s listing. In such cases, if the listing broker has some compelling reason to buy their client’s property, that broker needs to take steps to protect themselves from allegations by a seller who may feel “wronged” after selling their house to their listing agent.

If a listing broker believes they MUST buy their own listing, they should adhere to the following cautionary guidelines: u Give up the listing and refer seller to their own attorney, appraiser and/or a new agent. u Do not take a commission. u Have your attorney draft a release for seller’s signature that the seller will not complain about the transaction at a later date. u Check your errors and omissions insurance policy to see if the transaction would be covered in the event of a complaint from the seller. u Brokerages should consult with their legal counsel on this issue to determine an office policy prohibiting their listing agents from buying their own listings, unless certain safeguards are met, and the listing is terminated prior to negotiating a purchase.

Might an “agreement” over a text exchange or direct messaging (DM) between licensees create a binding real estate contract?

This area of the law is still developing, but in certain situations courts have found agreements made through texts to be enforceable. Since the pandemic began, informal means of communication have become a more common way of doing business in the real estate industry.

There are likely many reasons for this, including working remotely, maintaining social distancing from clients during the last couple years, increasing the use of virtual showings and creating more virtual brokerage offices. This trend toward making agreements through more informal channels is likely to continue.

In Illinois, a contract is generally determined to be legally binding if a party made an offer to do something in exchange for consideration from the other party, and the offer was accepted by the other party. These are the three elements of a contract: (1) offer; (2) acceptance; and (3) consideration. In addition, for the sale of real estate there must be a sufficient writing under the Statute of Frauds for the contract to be enforceable in court. Until recently, in Illinois it would be presumed that an exchange of terms, and an agreement over text message could not be an enforceable real estate contract due to the requirement for a sufficient writing.

However, if there is anything the past year has taught us, nothing should be presumed, and based upon some recent case law in other states, licensees should be more cautious about how they are negotiating by text or DM.

For example, in 2019, a New York State court found that a text exchange agreement between a landlord and a tenant was an enforceable contract. (See Karaduman v. Grover (Ithaca City Ct. 2019)). In that case, a plaintiff signed a lease for a property sight unseen (a familiar scenario post-pandemic), but upon arriving at the property found the premises to be in poor condition and not as described in the advertising. The plaintiff did not take possession of the property but notified the landlord that she would be willing to forgo a portion of her original security deposit and expected a return of funds and a cancellation of her lease. The defendant landlord agreed to plaintiff’s proposal over the text exchange, but then reneged on his promise to return the deposit. The court ruled in favor of the plaintiff, stating that “text messages are recognized by courts as having the import of letters and emails” and therefore, the plaintiff has the right to rely on the agreement reached between the parties.

In Massachusetts, a court upheld the validity of a contract for sale of land based upon text messages exchanged between the brokers for the parties, finding that the content of messaging signified an intent to be bound. (St. John’s Holdings LLC v. Two Electronics, LLC (Mass. Land Ct. 2016)). The parties in that case, through their respective brokers (who had both been designated to have authority to legally bind their clients), exchanged unsigned letters of intent via email. The seller’s broker subsequently sent the buyer’s agent a text message asking that the buyer sign the final letter of intent, and specifically stated that the seller was ready to commit to the agreement. The buyer signed and deposited an earnest

money check, but in the interim, the seller received a more favorable offer from a third party and then refused to sign the returned letter.

After the buyer filed suit to enforce the agreement, the seller argued that because the Statute of Frauds required that a contract for the sale of land be signed by the party who was to be bound, the prospective buyer’s claim should be dismissed. The Court refused to dismiss the claim, finding that the text message at issue did constitute a signed writing under the Massachusetts Statute of Frauds, and was sufficient to bind the seller to the agreement. The Massachusetts Court held that the text message exchange, when read in context with the email exchanges, contained sufficient terms to meet the signed writing requirement of the Statute of Frauds and bind the parties.

So far, Illinois, courts have not moved in the direction of the decisions above, but licensees should be cautious in wording text exchanges during negotiations. It is

likely that brokerages will continue to use these informal means of communication to negotiate transactions. Precautions can be taken to make certain that the intentions of the parties are not misunderstood when conducting a business transaction via text, email or other less formal means of communication like DMs. For example, licensees should consider including language in any text exchange that any agreement is not a binding contract until reduced to writing and signed by the parties.

Brokerages might consider consulting with their legal counsel about the most appropriate phrasing to be included in text messages to signify an intent that their clients not be bound by the communication and educating licensees on the issue. However, if the market remains “hot,” clients might actually want a binding agreement via text or DM. If this is the case, specific direction should come from the client to the broker after clients have consulted with their attorneys.

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You are the key to unlocking the dream EVERYONE deserves the American Dream of homeownership

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www.IllinoisRealtors.org

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hat is the American Dream of homeownership? It is a phrase you will hear often in 2022.

The phrase, and the principles behind it, will be the guiding force behind everything Illinois REALTORS® does this year, from political advocacy efforts in Springfield to fighting to end discriminatory appraisal practices to increasing diversity and inclusion within the industry.

The American Dream also builds on the association’s program foundation of ROI (Revitalize, Opportunity and Influence). Illinois REALTORS® is working to create the opportunity for everyone to achieve the American Dream of homeownership.

Illinois REALTORS® will be working to increase affordability and equity in housing throughout Illinois so that EVERYONE has the opportunity to own a home regardless of where they live, their socio-economic background or their ethnicity.

If making the dream of homeownership accessible to everyone is the goal, then REALTORS® play an essential role in making it a reality.

A dream is launched

Illinois REALTORS® officially launched the “Everyone deserves the American Dream” campaign in January at its Winter Business Meetings in Bloomington-Normal.

You will see the American Dream theme at Illinois REALTOR® events throughout the year

along with information on resources that will help you promote homeownership including tip sheets on mortgage financing programs and reasons to sell a home, information and action steps regarding discriminatory appraisals and news on our advocacy efforts to improve housing affordability and fight bad legislations or regulations at the statehouse and local level.

We also want to hear your stories of what the American Dream of homeownership means to you or your clients. We will be collecting these stories throughout the year and sharing them on our website and social media channels.

Importance of the American Dream

Homeownership is a financial investment that allows people to build equity, generational stability and wealth. Homeownership also is a way to build neighborhood stability, economic opportunity and educational achievement.

But for too long that promise of homeownership and all that it can mean haven’t been available to all Americans equally.

REALTORS® are the key

As we work to expand the American Dream to everyone, REALTORS® are essential to making that happen. You aren’t just the voice of real estate in Illinois, you are also problem solvers who want to make a difference.

Find American Dream resources at www.KeyToHomeownership.com t Everyone Deserves the American Dream

Watch this video featuring 2022 Illinois REALTORS® President Ezekiel “Zeke” Morris and Illinois REALTORS®’ ongoing commitment to making sure homeownership is accessible to EVERYONE. Watch this video at www.

KeyToHomeownership.com

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Discriminatory Appraisals Racial bias in determining a home’s value erodes housing equity and accessibility for minority homeowners

By Lee Nelson

Erika Villegas A recent client of Erika Villegas lost $35,000 in equity when selling his home near Midway Airport because she believes the appraiser discriminated because of his race or the neighborhood he lived in.

“We all make mistakes, and sometimes, they are in a rush,” says Villegas, designated managing broker at RE/MAX in The Village, Oak Park.

The home listed at $310,000, but her client dropped the price to $290,000 to sell it faster so he could buy his dream home. However, the home only appraised

for $255,000 with comparable homes very similar to it selling for $290,000.

“We tried to fight it by writing a letter of dispute and sent the list of comparables,” she adds.

The appraiser refused to change anything. The owner had to sell the house to move on but lost a big chunk of his equity.

“Someone just robbed $35,000 from my clients. It gets me worked up,” Villegas states. “This appraiser is not fully aware of what is happening to this family just because he thinks he’s right.”

She’s seeing the mistakes and discrimination more often in the past year from the entire 16 years she has been in the profession. She believes the discrimination could be lessened if more diverse appraisers came into the profession.

“Ninety percent of the appraisers I meet are white men. But we need to have women, Latinos, AfricanAmericans, and others,” she comments.

Trying to fix the problem

Illinois REALTORS® formed a Discriminatory Appraisal Task Force to look into the topic and whether a person’s race has any impact on appraisals and values. The organization also commissioned a study from a professor affiliated with the University of Chicago to look at data on the topic. The study, released in October, definitively revealed that race does play a part.

For instance, neighborhood homogeneity seems to be rewarded by appraisers, while white mortgage seekers were more likely to get their mortgages denied if they lived in neighborhoods with more people of color.

Read more about the Illinois REALTORS®’ task force, its members and the research findings on page 16.

Paul Brown, an appraiser and member of the task force, believes an education piece could help. Everyone from the appraiser to all parties involved ILLINOIS REALTOR® February 2022

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in the transaction need to be informed about unconscious bias and the Fair Housing rules. Appraisers are bound by the Fair Housing Act to not discriminate based on race, national origin, gender, or religion, just like REALTORS®.

Paul Brown “Also, appraisals should not reflect market hype,” says Brown, Certified Residential Real Estate Appraiser at Corrie Appraisal & Consulting, Charleston, and instructor in the School of Business at Eastern Illinois University. “The envelope of prices has been pushed and pushed in this market the past 18-24 months. Many times, homes in different conditions are used as comparable sales. It doesn’t support the contract price.”

He emphasizes that contract price and appraised value are different things.

What a buyer is willing to pay for a home, especially lately due to low inventory, may be different than what a lender is willing to lend on a home.

“When we have a very limited supply of houses, the bidding wars happen. It doesn’t mean that the house will appraise for the contract price,” according to Brown, who serves as CEO of the Central Illinois Board of REALTORS®.

Pushing ahead to new diverse appraisers

In 2020, the Appraiser Diversity Initiative (ADI) was launched by the Appraisal Institute (headquartered in Chicago), Fannie Mae, and the National Urban League. Freddie Mac joined as a core partner in 2021. The initiative helps recruit more appraisers 14

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of color and women. The Institute’s Education and Relief Foundation offers the Minorities and Women Course Scholarship Program. The institute is also developing a 5-hour course focused on addressing unconscious biases in appraisals.

As of the middle of December 2021, more than 100 scholarships have been awarded to help pay for classes and test fees to those across the country with seven in Illinois.

“Appraisal is one piece of a larger ecosystem to look at when it comes to housing issues,” says Rodman Schley, president of the institute. “Appraisal groups are working alongside consumer groups, real estate brokers and agents, banks, government agencies, think tanks, and others to explore where housing inequities may stem from and what combination of solutions should be considered.”

Rodman Schley He believes efforts, such as the HUD Interagency Task Force created by President Biden’s administration, should include adjoining mortgage processing issues such as lender “reconsideration of value” and appraisal appeal processes as well as creative approaches to financing underserved markets.

Jake Williamson, vice president, single-family collateral risk management of Fannie Mae, believes that “many factors can contribute to potential bias in appraisals. But having an appraisal workforce that better represents the communities where they work could instill more confidence in the process and mitigate bias,” he adds.

Becoming an appraiser can be tough

The pathway to become a certified appraiser is not easy, Brown says.

“The education piece isn’t bad, but the supervision requirement or apprenticeship environment is steep,” he adds.

Jake Williamson It can be hard for a company to take on that responsibility to train, pay the apprentice a living wage, and assume the liability at the same time while knowing there’s a very good chance you are training your future competition, he says.

Marcus Knight of Chicago received one of the ADI scholarships, which covered the three appraisal courses and three proctored exams, valued at about $1,200.

In Illinois, an appraiser needs 1,500 hours of experience – 500 of those being supervised – to become certified. He got his license in August 2020, but didn’t start to do appraising under a supervisor until April 2021.

Marcus Knight It was hard for him to find a supervisor, which was his primary barrier to getting started. But he reached out to the National Urban

League Regional Entrepreneurship Center and Fannie Mae. Within two weeks, they connected him with a firm and a supervisor.

Knight continues to work fulltime at his job with non-profits while still training with his supervisor in appraisals.

“The scholarship’s whole purpose is to get people into the field. It’s not about holding your hand,” he says. “However, they will provide support to you. I can talk with them about any issues.”

He adds that as a trainee he has learned to always be cautious. He also has learned that appraisers, especially in Chicago, can be challenged by not having expertise in a certain geographic area.

“Many outsiders don’t understand the dynamics of the market area,” he adds.

Knight lives in Chatham but grew up by Humboldt. He knows the areas around him by walking, knowing the houses, and knowing the people.

“As a human being and an appraiser, I don’t want to accuse anyone of anything,” Knight adds. “But there have been intense studies on bias. I do know that a lot of appraisers worry about being accused of being bias.”

Doing your due diligence

Tony Hardy, a REALTOR , has experienced appraisal discriminatory practices against himself.

“When an appraiser decides that the value isn’t there for some reason, it does pull wealth out the community and out of that family,” says Hardy, executive director of Multi-Family Investment Advisers at Keller Williams ONEChicago, and president of the South Side Community Investors Association. ®

Tony Hardy When he and his wife tried to refinance their home in Kenwood just recently to get rid of the mortgage insurance, he believes the appraiser didn’t give them the value it truly was worth based on bias.

“It’s one of the most nonsegregated neighborhoods in Chicago.

My next-door neighbors are from

Ireland,” Hardy states. “They have keys to my house, and vice versa. We are one and a half blocks from President Obama,” Hardy states.

The strange fact for him is that this appraiser didn’t use any sales comparables of properties in Kenwood.

He used comparables from four blocks away, a completely different market.

That market is 99 percent AfricanAmerican, he comments.

“I believe the appraisal was so low because I am African-American,” he says.

“It’s pretty obvious that this is a black house from what we have in it.”

Hardy called the mortgage company to complain and gave the information about comparables located nearby that weren’t used for his appraisal. “They told me that they believe the appraiser, and they will stick with him,” he adds.

“Appraisers work to protect the bank and the lenders. That’s where their loyalty lies,” he adds. “The role of the appraiser is critical, even in commercial transactions, where you are dealing with $200 million or more.”

About the writer: Lee Nelson is a

freelance writer in Illinois. She can be reached at leenelson77@yahoo.com

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Illinois REALTORS® Discriminatory Appraisal Task Force sheds light on appraisal bias Task Force Members

• Chair Lutalo McGee, Ani Real Estate, Chicago • 2022 Illinois REALTORS® President Zeke Morris, EXIT Strategy/EMA Management, Chicago • Gideon Blustein, Illinois REALTORS® • Kristopher Anderson, Chicago Association of REALTORS® • Jasmine Baynes • LaShawn Brown • Natalie Carpenter • Betty Clayton • Brian Cunningham • Paulette Edwards • Sanina Ellison • Sarah Grossman • Tony Hardy • Andre Howard • Sybil Martin • Gwendolene Newton • Kuwana Norman • Paul Brown • Tony Pierce • Don Robinson • Ursula Shine • David Thomas • Erika Villegas • Sarah Ware • Gerald Wayne Williams • Christopher Posey • Bonita Harrison

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n 2021, an Illinois REALTORS® task force took a closer look at the topic of potential racial bias in home appraisals. Could a homeowner’s race result in a lower appraised value compared to a similar home owned by someone who was not a minority?

The answer: race potentially DOES play a key role in the rejection of home loan applications and appraised values of homes, according to research commissioned by Illinois REALTORS® and conducted by Dr. Marshall Jean, Assistant Instructional Professor of Sociology at the University of Chicago.

Find the full report, “Color and Collateral: Examining Individual and Neighborhood Effects of Race on Housing Valuation and Mortgage Lending” at www.IllinoisRealtors.org/Appraisals, but here are some key findings: u A substantial disparity in the denial rates of African American and White applicants in every year of data u African American applicants in Illinois are twice as likely to have mortgages denied due to lack of collateral u Neighborhood homogeneity appears to be rewarded by appraisers. White borrowers were more likely to have their mortgages denied if they lived in neighborhoods with more people of color. However, Black and Hispanic/ Latino borrowers were relatively less likely to have their mortgages denied if they lived in more diverse neighborhoods.

Beyond the research, the task force made up of REALTORS®, lenders and appraisers from around the state - has several other areas of focus including education and outreach and public policy.

Some of that ongoing work includes: u Creating appraisal education and guidance materials to help Illinois REALTORS® and their clients if they encounter discrimination in a transaction. The Illinois REALTOR® Appraisal FAQs and a Sample Appraiser’s Package are available at www.IllinoisRealtors.org/ Appraisals. u Working toward developing public policy and regulatory proposals aimed at decreasing and ultimately eliminating appraisal discrimination. u Contributing to federal oversight research into appraisal regulation. t At the Illinois REALTORS® Fall Business Meetings, the Business Issues Forum hosted a panel discussion with members of the Discriminatory Appraisals Task Force and University of Chicago researcher, Dr. Marshall Jean.

(L to R) Task Force Chair Lutalo McGee, member Paul Brown, Dr. Jean and Business Issues Forum Chair Sarah Ware.

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EDUCATION Be prepared for broker license renewal The current broker license renewal cycle is about to start. In February, the Illinois Department of Financial and Professional Regulation (IDFPR) will send email notifications to brokers and open the online broker license renewal portal for applications.

Young Brockhouse

Vice President, Professional Development

When is the broker license renewal deadline?

Renewal applications must be submitted to IDFPR on or by April 30, 2022.

What are the education requirements for broker license renewal?

Renewal applications must be submitted to IDFPR on or by April 30, 2022

Broker license renewal education requirements are based on the broker’s original license date. See the following categories. To verify your original license date and current license expiration date, visit www.IDFPR.com and navigate to License Look Up. To find out how many CE hours you have completed with Illinois REALTORS®, use our online CE Lookup tool: www.IllinoisRealtors.org/ Education/Lookup.

Brokers licensed prior to Nov. 2, 2019

Brokers who were licensed prior to Nov. 2, 2019 must complete 12 hours of continuing education (CE), which must include 4 hours of Core CE and 1 hour of Sexual Harassment Prevention Training (SHPT).

Illinois REALTORS® includes IDFPRapproved SHPT in our online CE and post-license packages. If you have completed CE that did not include SHPT, Illinois REALTORS® offers a standalone SHPT course.

Brokers licensed Nov. 2, 2019 to Oct. 31, 2021

Brokers who were licensed Nov. 2, 2019 to Oct. 31, 2021 must complete 45 hours of Broker Post-License coursework which includes SHPT. The 45 hours consists of three 15-hour courses, each with a 50-question exam.

Brokers licensed on or after Nov. 1, 2021

Brokers who were licensed on or after Nov. 1, 2021 may take their required coursework now, but are not required to submit a license renewal application to IDFPR until April 30, 2024. Until their post-license education requirements are fully met, brokers are subject to additional designated managing broker supervision.

How to renew your broker license IDFPR provides renewal assistance for individuals having difficulty with the online renewal process: bit. ly/3mb8C7U. For those requiring additional assistance with the login process, please contact IDFPR by emailing FPR.RealEstate@illinois.gov.

Please enter “RENEWAL” in the subject line of your email.

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Complete all of your education requirements before attempting to renew, and have your payment method ready for the license renewal fee.

Go to www.IDFPR.com and navigate to the online license renewal portal. The portal opens approximately 90 days prior to the renewal deadline.

Brokers will receive an email notification from IDFPR that contains a unique pin number necessary to renew online. If you do not receive an email, you may also use your social security number or date of birth to log in to the license renewal portal. If there are any changes to your license (name change, phone number, email address, mailing address or license status), you may be required to submit a

paper renewal application.

Once at the IDFPR license renewal portal, click “online credit card renewal” to get started. You will pay the $150 state of Illinois licensing fee online.

After submitting your license renewal, wait 1-2 business days before checking the IDFPR website to verify your license has been renewed.

Have a question?

Visit our website at www.IllinoisRealtors. org/BrokerRenewal. Our Education Specialists are available Monday-Friday, 9:00 a.m.-4:30 p.m. via online chat, phone call or email: www.IllinoisRealtors.org/ Education, 217-529-2600, Education@ IllinoisRealtors.org

Broker license renewal resources u IDFPR renewal assistance: bit.ly/3mb8C7U u IDFPR online: www.IDFPR.com u Education requirements: www.IllinoisRealtors.org/ BrokerRenewal u Illinois REALTORS® CE Look Up: www.IllinoisRealtors.org./ Education/Lookup

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8 Housing Trends to Watch in 2022

1

Median prices expected to rise, but at slower pace than 2021

Illinois home prices will increase again this year, but not at the varied rates of 2021. Even if the ranges are more moderate, home prices are still expected to be high by historical standards, said Dr. Daniel McMillen, head of the Stuart Handler Department of Real Estate at the University of Illinois at Chicago, in his 2022 Housing Market Forecast for Illinois REALTORS®. Nationally, economic experts are predicting the annual median home price will increase by 5.7 percent, said National Association of REALTORS® Chief Economist Lawrence Yun at NAR’s REAL Estate Forecast Summit.

2

Home sales will be more moderate

Nationally, home sales could continue to grow by as much 6.6 percent this year as more Millennials enter the homebuying market, according to realtor.com’s 2022 Housing Forecast. Expect Illinois home sales to be more tempered with moderate increases at different times of the year, Dr. McMillen says.

3

Inventory could pick up slightly

Low inventory has been one of the biggest issues facing the housing market for several years, but there could be some positive growth on the horizon, according to realtor.com economists. Nationally, inventory is expected to increase 0.3

percent on average this year and more sellers are expected to list their homes, according to realtor.com’s forecast.

4

Foreclosures to remain steady

Even with the end of foreclosure moratoriums around the country, CoreLogic Chief Economist Dr. Frank Nothaft is expecting only a small uptick in mortgage delinquencies and distressed sales in 2022, according to his 2022 Housing Outlook. The same will likely hold true in Illinois as well, says Dr. McMillen.

Even if there is a bump in Illinois foreclosures, it would still be on the low side by historical standards, he said.

5

Inflation could be a short-term situation

The current inflation situation may have more to do with global supply bottlenecks not keeping pace with consumer demand of durable goods than the traditional definition of a steady overall increase in prices, says Dr. McMillen. Consumer demand is currently driving up prices, but it is likely to be short-term, he said in his 2022 forecast. One side effect of inflation, however, is higher interest rates and that could have an impact on the housing market, he said.

6

Mortgage interest rates likely to move higher

Mortgage interest rates remained consistently low throughout 2021, with the 30-year, fixed rate often hovering

just above and below 3 percent. Don’t be surprised if interest rates begin to head higher this year. Yun said he expects the 30-year, fixed rate to increase to 3.5 percent this year. Freddie Mac Chief Economist Sam Khater has also said rates are likely to rise, but added, “the push of the first-time homebuyer demographic that’s been propelling the purchase market will continue in 2022 and beyond.”

7

Rent prices will outpace home price growth

Nationally, look for rent prices to grow as much as 7.1 percent in 2022, putting rent costs ahead of home price growth, according to the realtor.com forecast.

Rents grew at a double-digit pace in 2021 in some markets while the rental vacancy rates hovered near historic lows.

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Positive rent payment histories could be a step to homeownership

Consumers with a history of on-time rent payments could find it easier to build their credit and qualify for home loans. New underwriting guidelines from Fannie Mae and Freddie Mac allow lenders to consider positive rent payment histories when determining someone’s creditworthiness and that, in turn, could make it easier for more renters to get mortgages and become homeowners.

Sources: Illinois REALTORS® 2022 Housing Market Forecast with Dr. Daniel McMillen - bit.ly/3JJVeBW NAR Real Estate Forecast Summit - bit.ly/3mZraZk Realtor.com 2022 Housing Forecast - bit.ly/3qQZBSR CoreLogic 2022 Housing Outlook - bit.ly/3321moj

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AT THE CAPITOL Lobbying team ready for anything ahead of unpredictable 2022 General Assembly session

Greg St. Aubin

Senior Vice President, Governmental Affairs

The Illinois legislative process is inherently unpredictable, but this year there are a number of new variables that will impact the outcome of the 2022 spring session in Springfield.

Your Illinois REALTORS® statehouse lobbying team is adept at adapting and modifying our strategies and tactics to advance the REALTOR® agenda and to stop or fix ideas that would be bad for the real estate industry and housing market.

We are also enhancing our grassroots advocacy to ensure the REALTOR® voice is heard loud and clear, no matter what political and legislative landscape we face.

Let’s run through these major “variables” and how they may impact policy and lawmaking this spring in order to provide insight on what’s going on and what to expect.

It’s a redistricting year, so every seat is up for election, and many are running in new territories

Similar to other states, the Illinois Constitution provides for the “remapping” of the state’s legislative and congressional

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districts following the decennial census.

As such, ALL of the state’s 59 Senate and 118 House Districts will be up for election in 2022 with newly drawn boundaries.

Some incumbent legislators will see little change in their districts, and some (mostly Democrats, who were in charge of redrawing the map as they have majority control the legislative process) will be running in districts that enhance their partisan advantage.

But some legislators on both sides of the aisle will be running in districts that contain upwards of 40 percent new territory where they will have to campaign and raise their visibility. It’s a time-consuming and expensive task.

A few unlucky (or targeted) incumbents (mostly Republicans) were drawn into districts with a fellow incumbent, or whose current home is in a wholly new legislative district.

What does this mean for the process?

Some incumbents are choosing not to run again, thus creating an “open seat” contest in 2022. Some will resign before the election and let the open seat candidate of their party run as incumbents. Others will assume “lame duck” status, leaving them much less inhibited in their voting since they are not standing for reelection.

These realities add some volatility to the process, but also present some interesting opportunities for those as familiar with the process as your lobbying team.

The redistricting dynamic also opens up new grassroots opportunities. Illinois REALTORS® is exploring a program to fund REALTOR®-Candidate “Meet & Greets” for our legislative allies who have new populations of voters they need to reach out to and get to know. Stay tuned!

Primary election change causes major shift in legislative calendar

Due to delays finalizing the decennial census numbers, the remapping calendar was pushed back so far that having the 2022 primary election in March became impossible. Legislation was passed to change the Illinois primary date to June 28, 2022, and this turned the usual flow of the spring session legislative calendar on its head.

Normally, in election years, the legislature would convene in January to get the process going, but the real heavy lifting of the legislative session would take place in April and May, with the legislature adjourning at the end of May. A June 28 primary necessitated substantial revisions to the legislative calendar. The General Assembly will still convene in January, but will begin its work in earnest much earlier, with a scheduled adjournment date of April 8, 2022!

The schedule sets the key deadlines for getting bills out of the chamber of origin at Feb. 25 in the Senate and March 8 in the House. It will certainly be a busy January and February…likely much more so than usual!

But your lobbying team is already working with staff and legislators on pre-session legwork on issues, and we’ll be ready to stand as your advocates on issues when the bell rings!

Omicron variant likely to limit or eliminate Capitol access

Of course, the massive spread of the Omicron variant of COVID-19 has resulted in renewed concern about large, public gatherings. This is likely to substantially restrict in-person lobbying and curtail large groups descending on the Capitol from throughout the state. It is likely that many, or most, legislative hearings will take place virtually and meetings with legislators will be by Zoom or phone.

Your statehouse lobbying team is prepared to maximize our input on key legislative matters no matter what the environment. REALTORS® are at a competitive advantage because we have an amicable relationship with almost every legislator, and our local members have some kind of relationship with almost every lawmaker back home. Few groups can say this!

Because of our reputation as a knowledgeable, trusted and reasonable resource, legislators are reluctant to act on ANY issue affecting real estate or homeowners without hearing from the REALTORS® first. They want and need our input, and they know that we would never betray their trust. They will not only accept and return our calls, but legislators and their staff will pro-actively reach out to us for input before they act.

Legislators want to hear from you!

Plan on attending the 2022 Illinois REALTORS® Capitol Conference “REALTOR® Lobby Day” on Tuesday, March 29 in Springfield.

A 2022 'crystal ball' outlook of the session

While the legislative process presents challenges, we also see new opportunities to pursue the REALTOR® agenda. Here are some of our priorities this spring: u Illinois needs more housing.

Illinois REALTORS® will pick up where we left off in 2021, and spread the message that Illinois is desperately in need of more housing – of every kind – from affordable rental housing to enhanced opportunities for firsttime homeowners. We will continue to urge the legislature to stop pursuing legislation and policies which make constructing, buying, owning, maintaining, paying taxes on and selling real property more expensive and difficult.

Our corollary message is that the legislature should build on what we succeeded in passing in 2021 with the omnibus housing bill, which aimed at reducing regulatory barriers to constructing and maintaining affordable housing and invested in programs that will leverage the construction of more housing.

Most legislators were very receptive to this kind of approach, in lieu of destructive and counterproductive policies like Rent Control or forcing landlords to participate in certain federal rental housing assistance programs.

One major sub-topic in this area will be discussing how much of the remaining American Rescue Plan dollars allocated to Illinois will be earmarked for the housing sector, and what specifically will it fund. It is estimated that at least $5 billion has yet to be allocated or spent, and we have informally been suggesting that $1 billion go towards housing… but of course, there is a great deal of competition for these monies.

We simply must keep moving the ball forward on this front!

u Owner-tenant legislation.

Extension of sealed evictions, requiring “just cause” to evict, Tenants Bill of Rights statewide and others among the usual ownertenant battles.

Other potential/likely issues:

u Tweaks to the energy bill are likely u Working on Real Estate License Act bill with the IDFPR u Changes to methodology of property valuation for tax purposes (Kaegi bill) u Initiative to replace lead water lines u Protecting the “independent contractor” status of real estate licensees ILLINOIS REALTOR® February 2022

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The typical REALTOR® 8 years of experience,

Has down from 9 years in 2019.

65%

2021 2019 4

6

YEARS OF EXPERIENCE

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Nearly 4 out of 5 REALTORS® are certain they will remain in real estate for at least

two more years

88%

are independent contractors with a median tenure of 5 years at their firms

Lack of inventory now most

important factor limiting potential clients from making a purchase, ahead of difficulty finding the right property and housing affordability.

10 transactions per year and a sales volume of

of members are female

$2.1 million

Median gross income was

$43,330

FEMALE

2

MALE

0

On average a REALTOR® had

but REALTORS® with 16 or more years of experience earned a gross median income of $75,000

66%

(or two-thirds) of members report volunteering in their community

New REALTORS® tend to be more diverse; of those with two years or less of experience, were minorities

34%

The typical REALTOR® is a

54-year-old, college educated woman

Text messaging (93%)

who is a homeowner.

preferred method for REALTORS® to communicate with clients, followed by telephone (90%) and email (89%) Typical business expenses were

$5,330

Source: National Association of REALTORS® 2021 Member Profile

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2022 Illinois REALTORS® Board of Directors

The Illinois REALTORS® Board of Directors works on behalf of membership, helping to set association policies and goals.

Directors serve staggered, three-year terms. These real estate industry leaders comprise the 2022 Board of Directors.

Ezekiel “Zeke” Morris President Chicago

Michael Gobber President-elect Westchester

Matt Silver Treasurer Chicago

Sue Miller Immediate Past President McHenry

Ayn Bartok Harrisburg

Teresa Camarato Herrin

Tommy Choi Chicago

Patrick A. Dalessandro Niles

Matt Difanis Champaign

Linda Dressler Schaumburg

Gaspar Flores Jr. Bolingbrook

Maurice Hampton Chicago

Brian Kwilosz Downers Grove

John LeTourneau Naperville

Carrie J. Little Warrenville

Mark Massey Edwardsville

Max McComb Champaign

Ed Neaves Bloomington

Michael D. Oldenettel Springfield

Christopher Pezza Chicago

Nykea Pippion McGriff Chicago

Debbie Prodehl Homer Glen

Tracey Royal Oak Park

Eddie Ruettiger Plainfield

Ginger Sreenan Rockford

Nancy Suvarnamani Chicago

Rebecca Thomson Chicago

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2022 Local Association Leadership

Capital Area REALTORS® Michael D. Oldenettel - President Debra Sarsany - President-elect Dominic Campo - Treasurer Jami Winchester - Immediate Past President

Central Illinois Board of REALTORS® Kevin Gouchenouer - President Melissa Finkbiner - President-elect Tony Piraino - Treasurer Joe Doolin - Immediate Past President

Champaign County Association of REALTORS® Stefanie Pratt - President P.J. Trautman - President-elect Jim Waller - Secretary-Treasurer Liz McDonald - Immediate Past President

Chicago Association of REALTORS® Antje Gehrken - President Sarah Ware - President-elect Drussy Hernandez - Treasurer Nykea Pippion McGriff - Immediate Past President

Egyptian Board of REALTORS® Mark Terry - President Paul Coons - President-elect Marianne James - Treasurer Ayn Bartok - Immediate Past President

Greater Gateway Association of REALTORS® Kris Schmitt - President Jean Lewis - President-elect Rick Swain - Vice President Elaine Rhodes - Immediate Past President

Heartland REALTOR® Organization Tim Sebastian - President Karen Conley - President-elect Melissa Kostelnik - Treasurer Erin Dierks - Immediate Past President

HomeTown Association of REALTORS® Bonita Willis - President Hillary Joy - President-elect Aaron Schwartz - Treasurer Todd Burghardt - Immediate Past President

Illini Valley Association of REALTORS® Christine Dahm - President Brian Phillips - President-elect Janelle McCarter - Treasurer Christine Schweickert - Immediate Past President

Kankakee-Iroquois-Ford Association of REALTORS® Millie Zigtema - President Rob Warmbir - President-elect Leanne Provost - Treasurer Brit-Anne Wilkening - Secretary Chip Chappell - Immediate Past President

Mainstreet Organization of REALTORS® John LeTourneau - President Debbie Pawlowicz - President-elect Tim Ryan - Treasurer Linda Dressler - Immediate Past President

Mid-Illinois REALTORS® Association Jessica Devore - President Tammy Heard - President-elect Meenu Bhaskar - Treasurer Brandon Shaffer - Immediate Past President

Mid Valley Association of REALTORS® Mary Jo Gibson - President Nancy Sutton - President-elect Debbie Wright - Treasurer

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North Shore-Barrington Association of REALTORS® Steve Hudson - President Kati Spaniak - President-elect Jude Offerle - Treasurer Brad Andersen - Immediate Past President

Northern Illinois Commercial Association of REALTORS® Andy Velkme - President Peter Cotsirilos - President-elect Shari Haefner - Treasurer Myra Nimchaiyong - Secretary Bruce Heller - Immediate Past President

Oak Park Area Association of REALTORS® Catherine Simon-Vobornik - President Elissa Palermo - President-elect Julie Downey - Treasurer Stephanie Eiger - Secretary Jonathan Zivojnovic - Immediate Past President

REALTOR® Association of the Fox Valley Miguel Ángel Fernández - President Natalee Dismuke - President-elect Patricia Romke - Treasurer Justin Letheby - Secretary Lucas Albright - Immediate Past President

Peoria Area Association of REALTORS® Ryan Cannon - President Robin Simpson - President-Elect Bill McCarthy - Secretary/Treasurer Jason Catton - Immediate Past President

REALTOR® Association of Southwestern Illinois Karen Sheesley - President Sam Row - President-elect Ashley Barud - Treasurer

Quad City Area REALTORS® Kendra Mulcahy - President Dennis Bell - President-elect David Gellerman - Treasurer Katie Sommers - Immediate Past President

Rockford Area REALTORS® Brad Marinelli - President Ginger Sreenan - President-elect Natalie Mulhall - Treasurer Jerry Gibson - Immediate Past President

Quincy Association of REALTORS® Bobette Cawthon - President Carol Shaffer - Treasurer

Three Rivers Association of REALTORS® Gibby Kirby - President Beth Stopka-Rios - President-elect Jim Ludes - Secretary-Treasurer Eddie Ruettiger - Immediate Past President

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Scobey retires after 32 years leading local advocacy For the last three decades, Mike Scobey, Illinois REALTORS® Director of Local Advocacy, has helped shape and grow the association’s successful local Governmental Affairs Directors (GAD) advocacy efforts in communities across the state.

When Scobey, who retired in midJanuary, joined Illinois REALTORS® in December 1989, the association was looking to expand advocacy resources at the local government level. Over the years, the GAD program was born and expanded statewide.

The goal was to monitor and lobby at the local level so that REALTORS® would have a voice in local issues affecting real estate while they were still being considered and not after something had passed, Scobey says.

The evolution into the RVOICE program in the mid-2000s, expanded that reach, providing issue analysis, consumer downloads and election resources that grew the association’s local grassroots lobbying efforts.

As he closes out his career with Illinois REALTORS®, Scobey says the GAD program reminds local government officials that REALTORS® are collaborators and should have a seat at the table when public policy affecting real estate is discussed in their municipalities.

In October during the association’s Fall Business Meetings, outgoing President Sue Miller honored Scobey with a Presidential Medallion Award, recognizing his years of service and work on behalf of the REALTOR® organization.

Scobey talks about the Illinois REALTORS® GAD program during an Insider Summit event in 2021.

Scobey with the late Chuck Wiercinski, a commercial REALTOR® member

Scobey and members at an Illinois REALTORS® Public Policy workshop in 2017

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Local advocacy accomplishments over 32 years 1990: Began state association’s first local lobbying efforts on municipal issues; also helped launch one of the first REALTOR® issues mobilization political action committees in the country.

1991: Developed a grassroots contact network for state legislative outreach.

1992: Organized the first “Opportunity Race” program to support REALTOR®-friendly candidates for congressional and state legislative offices.

1995: Lobbied to stop the passage of a highly restrictive “For Sale” sign ordinance in Chicago.

1996: Organized grassroots advocacy effort to help pass referendum requirement for local transfer tax enactments.

Scobey’s first Illinois REALTORS® staff photo from December, 1989

Receiving a Presidential Medallion in honor of his service to the association in October, 2021

1996: Worked to block a proposed increase in Cook County’s real estate transfer tax (from 50 cents per thousand of sale price to $7.50 per thousand).

1996: Began the local Governmental Affairs Directors (GAD) program with the hiring of two staffers assigned to the Chicago area. (The program would eventually have 10 staffers.)

1998-2003: Expanded the local GAD program to implement statewide coverage. Illinois became the first REALTOR® association in the nation to develop a program statewide.

(L to R) Scobey, former Illinois REALTORS® Senior Director of Legislative and Political Affairs Julie Sullivan and Kyle Anderson

2006: Launched the RVOICE advocacy program, creating resources to enhance local and state lobbying on behalf of property owners in Illinois.

Coordinated public relations efforts to help pass landmark Eminent Domain reform legislation.

2007: Ramped up association’s voter outreach efforts on local referenda (home rule and real estate transfer taxes) and candidate support efforts.

2008: Coordinated association’s first set of “independent expenditure” programs in support of state legislative candidates. The following year would see similar activity at the municipal level.

2017: Helped launch Real Property Alliance, a not-for-profit group which works to inform Illinois property owners about pending state and local issues affecting them.

Scobey at Capitol Conference in 2003

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ETHICS Advertising and unauthorized access to listed property top ethics citation violations list

Becky Carraher

Director of Ethics and Professional Standards

Please visit www.

IllinoisRealtors.org/Ethics/ Ethics-Citation-Program to learn more about the Ethics Citation Program.

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The Illinois REALTORS® Ethics Citation Program is an expedited process that allows complaints to be filed alleging violations of certain Articles as supported by some Standards of Practice of the Code of Ethics (qualifying violations).

Anonymous complaints are allowed under in this program.

The ethics citation complaints that are filed are reviewed monthly by the Ethics Citation Panel, a group of members from around the state who are appointed to serve in this capacity. If the Ethics Citation Panel determines the allegations contained in the complaint are a potential violation of one of the qualifying Articles of the Code of Ethics, a citation is issued to the Respondent. A copy of the citation issued is also provided to the managing broker of the Respondent and the Complainant, if named.

Once a citation is issued, the Respondent has 30 days to either accept the citation or request a hearing on the matter.

From January 1, 2021, through October 31, 2021, 68 ethics citations were issued.

The most frequent ethics citation issued during this time period was for a violation of Article 3, supported by Standard of Practice 3-9, which carries a $2,500 fine.

Article 3 requires cooperation between brokers, and Standard of Practice 3-9 states: “REALTORS® shall not provide access to listed property on terms other than those established by the owner or the listing broker.”

The second most frequent ethics citation issued was for a violation of Article 12, which carries a $250 fine.

Article 12 states: “REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations. REALTORS® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional.”

The third most frequent ethics citation issued was for a violation of Article 12, supported by Standard of Practice 12-5, which also carries a $250 fine.

Article 12, Standard of Practice 12-5 states: “REALTORS® shall not advertise nor permit any person employed by or affiliated with them to advertise real estate services or listed property in any medium (e.g., electronically, print, radio, television, etc.) without disclosing the name of that REALTOR®’s firm in a reasonable and readily apparent manner either in the advertisement or in electronic advertising via a link to a display with all required disclosures.”

OUTREACH American Rescue Plan Act

Once in a generation opportunity for Illinois cities and towns to address housing costs

Gideon Blustein

Senior Director of Local Government & External Affairs

With so many federal dollars allocated through different vehicles, most people have probably lost track of how much the federal American Rescue Plan (ARP) is being used. However, a closer look at ARP, which was signed into law by President Biden on March 11, 2021, reveals an almost unfathomable opportunity to address two issues at the root of the rising costs of homeownership: housing inventory and water infrastructure.

Why unfathomable? The amount of funding making its way to local governments is like a giant, unexpected bonus. Just a few examples from Illinois: u u u u

Cook County: Just over $1 billion Waukegan: $19.7 million Springfield: $33.8 million Madison County: $51 million

The Center for Community Progress set up an interactive map that provides the estimated amount that a community will receive. Local governments have until Dec. 31, 2024, to obligate and

Dec. 31, 2026, to spend their funds.

It is important to note that local governments cannot use the funding to pay for existing debt.

So, what can they use the funds for? Highest priority is placed on activities related to fighting the COVID-19 health and economic crisis.

And according to a fact sheet from the Treasury Department, there are two ways the funds may be used for “bricks and mortar” or capital projects that could have a lasting impact on revitalizing communities, encouraging housing development and slowing the skyrocketing cost of homeownership:

Housing affordability

Housing development is specifically named as an allowable use of the ARP funds. This could be a game changing opportunity for local governments to fund the construction, acquisition or rehabilitation of housing units. Low inventory is fueling the steep rise in housing costs. Building code, zoning requirements, labor, land and material costs are all contributing to the housing affordability crisis, but local governments can take a major bite out of those costs and invest in the health of their communities by dedicating their ARP dollars to housing affordability.

Water/sewer/stormwater infrastructure

Because the pipes are underground, many communities don’t think about needed upgrades until there is a crisis.

Local governments throughout Illinois

are contemplating raising property taxes, transfer taxes, tap on and user fees to cover the costs of things like lead pipe replacement and flooding problems. Water infrastructure is a specifically named use for the ARP dollars local governments will receive.

Local communities will set themselves up for long-term financial success if they use their ARP bonus to upgrade water systems for generations to come.

Bottom line

Illinois is always in the running for the unfortunate recognition as having the highest property taxes of any state in the union. While ARP dollars cannot be used to lower property taxes directly, government should consider using their allocations for capital projects that will have the greatest impact on helping everyone access the American Dream of homeownership through housing affordability strategies and improved water infrastructure. If nothing else, Illinois residents should not give an inch when their local governments try to raise taxes. Ask them how they used their ARP dollars to address their budgets.

American Rescue Plan allocations

Find out how much your city and county received in federal ARP funds at bit.ly/ARP_Allocations.

This interactive dashboard from the Center for Community Progress allows you to zoom in on the state, county and metropolitan city level.

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REALTOR® COMMUNITY

(L to R) Heartland CEO Jim Haisler, Illinois REALTORS® Immediate Past President Sue Miller, REALTOR® Tracey Royal, former City of McHenry Mayor Sue Low Meyer, McHenry County Board Member and former State Representative Pam Althoff, REALTOR® Sam Powell, and REALTOR® T.J. Madigan.

Heartland REALTORS® show support for Women’s Council and growth of female leaders

Oak Park REALTOR® Tracey Royal, Chicago REALTOR® Sam Powell, McHenry County Board Chairperson Pam Althoff and former McHenry mayor Sue Low Meyer all played key roles in a three-hour event, “Elevate Women in Real Estate: Dare to Lead.”

The Heartland REALTOR® Organization and the Women’s Council of REALTORS® organized the event.

Royal, the Women’s Council of REALTORS® State President and a broker for Coldwell Banker Residential Brokerage, gave the keynote address, “Leading By Example,” sharing lessons she’s learned about leadership through her participation in WCR activities. She encouraged members to be open to future leadership possibilities.

Powell, of eXp Realty, LLC, in Chicago, Althoff and Meyer were panelists who shared ideas about developing and supporting local female leaders. Althoff is a former McHenry mayor and Illinois State Senator for the 32nd District.

(L to R) RASI CEO Deb Frazier, Immediate Past President Celeste Wheeler, REALTOR® and St. Clair County Transit District Managing Director Ken Sharkey, two unidentified volunteers from other organizations and Local GAD Ron Deedrick.

RASI members help with East St. Louis community project

The REALTOR® Association of Southwestern Illinois (RASI) helped update the Emerson Park MetroLink Station in East St. Louis. In addition to providing volunteer hours landscaping and cleaning the station in late summer, RASI donated $1,000 for the project, and the National Association of REALTORS® (NAR) provided a $4,500 placemaking grant, thanks to the efforts of Local Governmental Affairs Director Ron Deedrick.

The project transformed the concrete area between the bus bays and MetroLink entrance into an interactive space that gives a nod to the history of music in East St. Louis. A mural on the pedestrian overpass also depicts the historic importance of music in the community.

MIRA celebrates 100th Anniversary

The Mid-Illinois REALTORS® Association (MIRA) held a Centennial Holiday Celebration in mid-December to commemorate 100 years of serving clients in its part of central Illinois.

2022 President Jessica Devore, MIRA’s first American-Filipino President, said, “I am so honored to lead such an amazing REALTOR® association that has had such a significant impact on our community over the past 100 years. We have so much planned for the future, and I am excited to be a part of it!”

Brown and Anderson earn RCE designation

MIRA President Jessica Devore

(L to R) Illinois REALTORS® President-elect Michael Gobber, Immediate Past President Sue Miller and Treasurer Matt Silver

Rockford Area REALTORS® CEO Conor Brown and Greater Gateway Association of REALTORS® CEO Kyle Anderson became the 30th and 31st Illinoisans with REALTOR® Certified Executive (RCE) designations. In November, the National Association of REALTORS® recognized Brown, Anderson and the other members of the 2021 RCE Class.

Brown has led the Rockford Area REALTORS® (RAR) since 2018. Anderson has led Greater Gateway since 2017. Both are former Local Governmental Affairs Directors for Illinois REALTORS®.

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