Illinois REALTORS® January 2021

THE VOICE FOR REAL ESTATE IN ILLINOIS

JANUARY 2021

Welcome our new CEO Jeff Baker REALTORS® to lead on housing affordability and sustainability Highlights of proposed RELA rules

www.IllinoisRealtors.org

THE OFFICIAL PUBLICATION OF ILLINOIS REALTORS® ILLINOIS REALTOR® January 2021

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TABLE OF CONTENTS JANUARY 2021

04 Inside Track

Tips and tools to stay organized

05 President's Message We will be united, strong and resilient in 2021

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06 Quick Takes

• Fairhaven: Identify and combat discrimination with NAR’s fair housing training • IHDA launches new down payment assistance programs, SmartBuy and Opening Doors

Dearborn REALTISTS® lead community cleanup efforts

• Report highlights homeownership challenges for Black consumers and an agenda for change

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8 Legal Update

Highlights of changes to proposed RELA rules

16 Infographic

What REALTORS® do...

Our new CEO Jeff Baker shares his 2021 outlook

17 Ethics

Code of Ethics combats discriminatory speech

Illinois Young Professionals Network

Illinois YPN panelists share affordable and fair housing tips

27 Education

Q&A with Sandra Workman

29 At the Capitol

REALTORS® to lead on housing affordability and sustainability

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32 RVOICE

Landlord-tenant ordinances, evictions and other local housing issues

34 Market Watch

2020 housing market defied expectations; what will 2021 bring?

35 Community

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Ignite your business and your life this year

What's ahead for commercial real estate ILLINOIS REALTOR® January 2021

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INSIDE TRACK What is one tip or tool that helps you stay organized?

ILLINOIS REALTORS®

THE VOICE FOR REAL ESTATE IN ILLINOIS 2021 OFFICERS President Sue Miller, ABR, BPOR, C2EX, CRB, CRS, GRI, ePro, LTG, PMN, SFR, SRS smiller@coldwellhomes.com President-elect Ezekiel "Zeke" Morris zekemorris@zekemorris.com

A Google calendar for time blocking and a paper planner as a backup are great to stay organized.

Natalie Anderson

Kempa Group Realty, Homer Glen

Treasurer Michael Gobber, ABR, CIPS, CNC, CSC, GRI mike@gobberrealestate.com Immediate Past President Ed Neaves eneaves@tentacenterprises.com Chief Executive Officer Jeffrey T. Baker Executive Vice President Kristen Butcher, CMP Vice President Marketing and Communications Anthony Hebron

I use the “touch it once” rule. My process for handling paper, mail, messages and emails is to read it and if it requires an answer, respond immediately. It gets things off my desk and completed so things aren’t forgotten or lost. If it requires research or more detail, I put it on my daily “to do” list.

Loretta Alonzo-Deubel

Century 21 Affiliated, Westchester

I schedule my appointment reminders through my Echo. I have a “skill” that activates at 9 a.m. and plays a playlist instead of a verbal notification. I have a reminder to do my lead generation and until I order Echo to pause, the music keeps playing so it cannot be ignored. My entire family knows when it’s 9 a.m. without looking at the clock!

Shaun R. Pinkston

Keller Williams Chicago-O’Hare, Chicago

A CRM, but only if you take advantage of it. Important features include: ease of use, searchability of contacts, organization of contacts by types or groups, integration of snail mail and email, keeping notes in one place, a good follow-up system and integration with a calendar.

Carrie Healy

Compass, Winnetka Answers are the personal opinions of the members and do not constitute endorsements or sponsorship by Illinois REALTORS®.

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Director of Marketing Stephanie Sievers Senior Marketing Content Manager Dawn Tebrinke Marketing Content Specialist Bill Kozar Graphic 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.

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VOLUME 58: NUMBER 1 Copyright © 2021 Illinois REALTORS® All rights reserved. www.IllinoisRealtors.org info@IllinoisRealtors.org www.facebook.com/IllinoisREALTORS www.linkedin.com/company/IllinoisRealtors @ILREALTOR

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PRESIDENT'S MESSAGE We will be united, strong and resilient in 2021

Sue Miller

2021 President

q A full list of RPAC Major Investors will be posted on our website at www.

IllinoisRealtors.org/MI_ Recognition at the end of January 2021.

Welcome to 2021 and thank you for the honor of serving as your President of OUR Illinois REALTORS®.

Emerging from 2020, we need to become more united, stronger and resilient as our state and nation shakes off the lingering effects of the COVID-19 pandemic.

Our Illinois REALTORS® Political Action Committee (RPAC) is the tool that unites us. Leveraging our collective advocacy strength through RPAC, we demonstrated that the real estate industry is essential to the state’s economy. REALTORS® were at the table with THE elected officials who made decisions on issues affecting your business and lives last year. It was not about political party. It was about securing our future. I want to personally thank everyone who invested in RPAC. For the fourth consecutive year, we attained the high honor of the National Association of REALTORS® President’s Cup. Another major strength is our professionalism. To enhance it, take advantage of the Illinois REALTORS® professional development courses (many of which are offered through your local associations) and mentor

others through pre-license training. To further diversify our businesses, apply for grants through the recently announced diversity and inclusion grant program, offered through a partnership between Illinois REALTORS® and the Real Estate Educational Foundation (REEF). REEF offers scholarships to aid in the personal growth of REALTORS® and for students to pursue a career in real estate. For more information, visit www.ilreef.org.

Lastly, we must remain resilient. Our industry is the backbone of the economy for Illinois and our local communities.

A tool to help us is the new foundation for our programming – called ROI. It will provide you tools and resources to help revitalize your business, identify opportunities to grow and use your influence to advocate for homeowners and housing providers.

I am truly excited about working with you to be united, strong and resilient in 2021; and to continue advancing the real estate profession, protecting the rights of property owners and better serving our clients and communities.

My phone is always on. I am, humbly, your President.

Sue Miller Illinois REALTORS® President

ILLINOIS REALTOR® January 2021

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QUICK TAKES IHDA launches new down payment assistance programs, SmartBuy and Opening Doors

Fairhaven: Identify and combat discrimination with NAR’s fair housing training

Immerse yourself in the fictional community of Fairhaven, a free interactive simulation training course from NAR that puts you through a series of potential fair housing violation scenarios, both as an agent and as a client. As REALTORS® move through the simulation and work to close four deals, they’ll encounter discriminatory situations and receive feedback based on how they respond. fairhaven.realtor

Minority and working-class families now have two more mortgage assistance options launched by the Illinois Housing Development Authority (IHDA).

SmartBuy – Consumers can apply for a 30-year first mortgage at a fixed rate with $5,000 deferred for down payment and/or closing cost assistance, as well as 15 percent of the purchase price (up to a maximum of $40,000) in student loan debt relief. Applicants must have at least $1,000 in student loan debt and must pay off their full remaining student loan balance at closing.

Opening Doors – The program offers a 30-year first mortgage with a fixed interest rate and $6,000 in down payment and/or closing cost assistance. The down payment assistance is forgiven after five years. Deferred Action for Childhood Arrivals (DACA) recipients are eligible to apply.

Learn more about all IHDA mortgage products at www.ihdamortgage.org

Report highlights homeownership challenges for Black consumers and an agenda for change More than 50 years after the passage of the Fair Housing Act, Black and other minority families still face entrenched barriers to homeownership and ongoing structural inequalities, according to the report, "2020 State of Housing in Black America," from the National Association of Real Estate Brokers (NAREB) and its Chicago chapter, and Illinois REALTORS® industry partner, the Dearborn REALTISTS® Board.

The report identifies some of the challenges Black consumers face in achieving the American Dream of home ownership, such as higher rejection rates

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for mortgage applications, credit score practices that can skew or widen the gap between Black and non-Hispanic white borrowers, and the negative impact of COVID-19 on health and incomes.

The report offers a variety of policy recommendations including: increasing the supply of affordable housing, restoring fair housing regulatory protections and enforcement, accounting for race in credit scoring and underwriting models, and increasing diversity in the real estate and mortgage industry. u Read report at: bit.ly/NAREB_2020

Follow us:

Guzmán receives Illinois REALTORS® Distinguished Service Award

Millenials buying earlier due to COVID-19

Tired of their current living situation, the pandemic has prompted more Millennial buyers to accelerate their plans to buy a home, according to a realtor.com and HarrisX survey. Nearly half of Millennial survey respondents said COVID-19 pushed them to buy a home sooner than their original timeline. Other findings: they are expecting and are ready for a competitive market, they are taking full advantage of virtual home search techniques and nearly half want to move within their current city.

Read more highlights from the survey at bit.ly/Millennial_Home_Buyer

Eight presidential medallions given in 2020

REALTOR® Tracey Royal and Mario Treto, acting director of the Illinois Department of Financial and Professional Regulation (IDFPR) Division of Real Estate, were recognized with presidential medallions for their contributions to the industry and Illinois REALTORS® during 2020. Illinois REALTORS® staff also received medallions including: then Deputy CEO Jeff Baker, Executive Vice President Kristen Butcher, Senior Director of Legislative & Political Affairs Julie Sullivan, Vice President of Operations Len Taylor, General Counsel and Vice President of Legal Services Betsy Urbance and the entire Illinois REALTORS® staff.

Mabél Guzmán, a broker with Coldwell Banker Residential Brokerage in Oak Park, was the 2020 recipient of the Illinois REALTORS® Distinguished Service Award, honoring a member with at least 20 years of service, who has demonstrated leadership and worked tirelessly toward the betterment of the real estate profession. Guzmán has a long history of service and in 2020 served on the National Association of REALTORS® leadership team as Vice President, Association Affairs.

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In 2020, COVID-19 prompted more people to buy a multi-generational home – 15% after March versus 11% who bought before April.

Tracey Royal

Mario Treto

Source: NAR 2020 Profile of Home Buyers and Sellers

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LEGAL UPDATE Highlights of changes to proposed RELA rules

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he following outline highlights select changes to the recently published proposed rules that correspond to and clarify the Real Estate License Act (RELA). This is not a complete summary of the proposed changes. A full review of the proposed rules is necessary to understand all of the changes and their impact on the industry. It also is important to know the use of the term "offices" throughout the text means virtual and physical offices. Additionally, the use of the term "in writing" includes physical or electronic documents or signatures.

Anneliese Fierstos Illinois REALTORS® Legal Hotline Attorney

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TERMINATION OF SPONSORSHIP (1450.115) u Upon termination of a sponsorship by a sponsoring broker (“SB”), the SB shall immediately notify the terminated licensee, and within 24 hours notify the Division. u If a licensee initiates termination from an SB, the licensee shall notify the Division within 24 hours, and immediately notify the SB. REQUIRED INFORMATION OF APPLICANT OR LICENSEE TO DIVISION (1450.150) u Each licensee shall provide the Division notice of change of physical office location or virtual office website or digital platform.

RESIDENTIAL LEASING AGENTS (“RLA”) (1450.220 AND 1450.240) u Application for RLA license by examination u Applications shall be submitted to IDFPR with proof of completion of the required examination. u Department shall issue/or deny application for residential leasing license within 30 days of receipt of application. u Residential Leasing Agent Permit u Under RELA Section 5-5(d), a person engaging in leasing residential real estate may engage in residential leasing activities for a period of 120 consecutive days without being licensed if they first obtain a residential leasing agent permit. u A sponsoring broker associating with an RLA shall submit to the department all previously required information under this section and must also certify that the RLA will not work for more than 120 consecutive calendar days without being issued an RLA license. u A person shall not practice under an RLA permit more than one time.

BROKER CONTINUING EDUCATION/MANAGING BROKER EDUCATION (SECTION 1450.450 AND SECTION 1450.540) u Each broker is required to complete 12 CE hours during the current term of the license and the total may be taken any time during the renewal term. u Failure to comply with CE requirements shall subject a licensee to citation provisions under new Section 1450.960. v No hearing-CE will be completed or not. v Past due completion will require paying citation fine and proof of CE completion. v In event of an error, licensees will be allowed to provide proof of completion-no hearing required. v If licensee cannot or did not certify compliance with CE, they may submit evidence of compliance within 60 days along with paying a fine. A license will be inactive until evidence of compliance with CE requirements are submitted and all fines are paid to the Department. v If a licensee certified compliance of CE requirements with the Department and cannot prove compliance, they will be subject to the formal discipline process under Section 20-20 of the Act.

LICENSING OF CORPORATIONS, LLC’S, PARTNERSHIPS AND LIMITED LIABILITY PARTNERSHIPS (SECTION 1450.600) u These entities shall not be granted a license if a nonparticipating owner, member, manager, partner or officer is currently barred from real estate practice because of a suspended or revoked license.

PLACES OF BUSINESS, OFFICES AND VIRTUAL OFFICES (1450.610) u (1450.610(a)) Licensee’s place of business shall be an office or business location of the licensee’s sponsoring broker (“SB”). The place of business may be in the SB’s physical office or may be a virtual office, i.e. a website. u A SB must maintain a list of all office locations (physical or virtual) with the Department. u Virtual Offices (1450.610(d)) u To operate a virtual office (without a dedicated office space or fixed physical location) the SB must be able to demonstrate licensees are: } Engaged in licensed activities; } Offering real estate services; } Holding out to the public they are engaging in licensed activities; } Maintaining electronic files securely (including escrow records) in same format they were generated, sent or received; } Able to make secure electronic files accessible to Department for inspection; } Maintaining electronic files related to special accounts for a minimum of 5 years; } Backing up electronic files monthly. u Virtual office shall have digital infrastructure to facilitate the transaction of business, communications, advertising and real estate services through a virtual office website, URL or other digital platform inviting general public to transact business. The virtual website, URL or digital platform shall: u Be registered with the Division, u Display current registry of all sponsored licensee and license numbers (see Section 1405.730), u Display city/geographic location and state where real estate services are offered, u Display contact information for Designated Managing Broker (DMB) (name, phone number, email address)

u If a sponsoring broker has multiple DMBs the contact information must be provided for each as well as names / license numbers of the licensees, they supervise, u Maintain a secure intranet or secure portal accessible by employees, independent contractors, licensees and upon request the Division: v The intranet/portal must include electronic records (including escrow) securely stored in same format they were generated, sent or received, w Physical documents converted to electronic records may not be altered in content, v Must include an updated registry of sponsored licensees, their DMB’s, identification of additional office locations, and licensees associated with those offices. u Virtual offices must comply with all advertising requirements under Section 1450.715 and 1450.720.

ILLINOIS REALTOR® January 2021

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LEGAL UPDATE

www.IllinoisRealtors.org/ rela_rewrite

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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DMB RESPONSIBILITIES AND SUPERVISION (1450.705) u DMB’s shall notify Division within 24 hours of any change of business offices they manage. u General DMB responsibilities include: u Implementing and training on company policies and procedures of the DMB, u Training sponsored licensees and unlicensed assistants, u Supervising and assisting licensees in real estate transactions, u Supervising any special accounts for they have been delegated responsibility, u Supervising all advertising, u Familiarizing sponsored licensees with federal and state laws/ordinances that relate to licensed real estate activities, u Compliance with Section 1450.705 by office, licensees, unlicensed assistants under their management. u DMB supervisory duties related to new broker licensees who have not completed 45 hours of post-license education: u Direct oversight and management of escrow moneys (including earnest money and security deposits). v DMB must have an established procedure for delivery from new broker licensee to DMB or with DMB’s oversight, to DMB’s accountant or office manager so that escrow money will be deposited by the next business day following the transaction or after receipt according to the terms of the contract, v DMB is directly responsible for handling and oversight of electronic funds transfers. u Direct involvement and oversight during contract negotiations: v Allowing for oversight by physical or electronic means that can be demonstrated to the Department in event of audit or investigation. u Direct supervision/approval of advertising or marketing by new broker licensee: v Allowing for oversight by physical or electronic means. u New broker licensees who have not completed 45-hour post-license education must not bind sponsoring broker to contracts, including brokerage agreements.

OFFICE REGISTRY REQUIREMENTS (1450.730) u Proof of licensure for all sponsored licensees must be readily available to the public in the SB’s physical office or available through electronic means provided by the SB, u For virtual offices this requires prominently displaying a registry of all sponsored licensees on the virtual website or digital platform.

ADVERTISING (TEAM NAMES) (1450.715) u Inherently misleading team names that imply a stand-alone company as opposed to a team are prohibited (including but not limited to): “company”, “realty”, “real estate”, “agency”, “associates”, “brokers”, “properties” and “property”.

However, if these terms are followed by the word “team” they could be used. u Advertising must contain the SB’s legal name or assumed name and it must be as large or larger than the team name or that of a sponsored licensee. u Advertising that meets the following “tests” shall be considered compliant with this section: u The font size used for the letters in the SB’s name is as large or larger than the letters used in the team name or individual licensee name, u The area, in terms if height and width containing the SB’s name, is as large or larger than the area, in terms of height and width, than that if the team name or individual licensee name, or u Any logo, emblem, label, trademarked image, or similar identification incorporating the SB’s name, is as large or larger than that of the team name or individual licensee name.

DIGITAL OR ELECTRONIC ADVERTISING AND COMMUNICATION (1450.720) u Note that all electronic advertising has added language that requires posting the city and state of a physical office or a direct link to the SB’s virtual office website or digital platform. u A URL or domain name is not considered advertising, but it must not be used for improper purposes such as phishing or misdirecting traffic in order to mislead consumers.

EMPLOYMENT/ INDEPENDENT CONTRACTOR AGREEMENT (1450.735) u SB’s must have signed and dated written employment or independent contractor agreements for every sponsored licensee that are also provided in physical or electronic format to the sponsored licensee. u Employment or independent contractor agreements must be maintained for five years after the broker licensee is no longer with the SB (1450.755(a)(4)).

UNLICENSED ASSISTANTS (“UA”) 1450.740 u Updates to list of activities which a UA can engage in found in this section; also making it clear that a UA cannot perform licensed activities (as defined by term “broker” in RELA Section 1-10).

ESCROW RECORDS (1450.750) u SB must report loss or destruction of escrow records to the Department within 48 hours by mail or email.

DISCLOSURE OF LICENSEE STATUS (1450.765) u Licensee must disclose prior to initiating a transaction.

UNPROFESSIONAL CONDUCT (1450.900) u Expanded to include accessing a property or granting permission to access a property without proper authorization.

CONTINUING EDUCATION LICENSES (1450.1145) u A CE instructor who holds a CE instructor license may only teach elective courses. A pre-license instructor may teach pre-license, broker management or any elective CE courses.

CITATIONS FOR NON-COMPLIANCE WITH CE (1450.960) u The Division will conduct audits to verify compliance with CE requirements and issue citations noting the deficiency to licensees (copying the DMB and SB). Upon receipt of a citation, a licensee shall have 60 days to submit evidence of compliance and pay any fines. The Rules at this section outline the licensee’s opportunity for a hearing and potential discipline and fines.

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Our new CEO Jeff Baker shares his 2021 outlook

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n 2020, we treated every challenge like an opportunity. Rest assured, we will take that same approach in 2021.

We recognize that times like these are a test, and we will continue to pass it by becoming sharper, helping you create a stronger real estate market and being an indispensable resource to all REALTORS® to make your businesses better.

During the past year, Gary Clayton and I have focused the transition on analyzing each and every program and service to maximize member value. In 2021, we’ll be finalizing updates and changes to programming, committee structure and even internal departmental reorganizations, all again, with an aim toward making sure everything we do fulfills our mission to members.

We plan to do more to tell the REALTOR® story.

REALTORS®, at the brokerage level, at their local associations and here at the state association do so much to benefit our communities. We can make those benefits more apparent to their neighbors, local elected leaders and even state officials and empower REALTORS® even more.

Our Illinois REALTORS® is the voice for real estate in Illinois. REALTOR® education at local associations is through our best-inclass statewide real estate school; our local governmental affairs directors are located within local associations and they secure big and small policy wins for REALTORS® every month; our state association administers the Code of Ethics for the majority of local associations in Illinois; and obviously, we are one of the most influential voices in all the halls of the state Capitol.

2021 is going to be a really important year for the state and the direction of housing policy. And our voices must and will be heard.

The economic impact of the COVID-19 pandemic has touched every aspect of our lives, from housing to government budgets. For good reason, housing providers and property owners in general felt taken for granted throughout the pandemic. Almost every industry that was shut down or restricted from doing business was provided tailored stimulus relief, except housing providers. They were told they could no longer expect payment but they still had to continue operating at 100 percent. Property owners, some without income for months, are now told that continued on next page

Illinois REALTORS® Leadership Team

Kristen Butcher

Executive Vice President

Greg St. Aubin

Betsy Urbance

Senior Vice President, Governmental Affairs

Matt Brewer

General Counsel and Vice President of Legal Services

Young Brockhouse

Vice President, Information Technology

Anthony Hebron

Vice President, Marketing and Communications

Vice President, Professional Development

Cathy Madaus

Vice President, Operations

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rather than reducing municipal budgets, local governments will simply increase property taxes yet again to cover existing or even high levels of public spending.

Additionally, Illinois faced a shortage of affordable housing before the pandemic and housing policies in urban areas were already reducing opportunity and producing further inequality. The effects of COVID-19 have just amplified these issues. Combine this with municipal budget shortages and crushing property taxes and our state is desperate for leadership that won’t simply repeat the mistakes of the past.

Our Illinois REALTORS® believes more housing opportunity and more housing equality is the bridge to more economic growth for our state and our members. And our Illinois REALTORS® will be front and center on all housing policy issues because we know our members and communities need that from us.

I’m looking forward to working with you in 2021!

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Meet Illinois REALTORS® CEO Jeff Baker Jeffrey T. Baker took over as Chief Executive Officer of Illinois REALTORS® in January 2021. He becomes just the fourth full-time association leader in Illinois REALTORS®’ 103-year history. u Baker, who served as deputy CEO since 2019, replaced Gary L. Clayton who led the statewide real estate trade association for more than 30 years. u Baker had worked in various capacities with the association since 2014, including serving as the association’s associate general counsel. u Baker is a graduate of the University of Illinois-Champaign, where he earned a bachelor’s degree in Political Science. He went on to earn a master’s degree in Public Policy from Georgetown University in Washington, D.C., and a J.D. from Loyola University Chicago School of Law. u Baker has extensive experience working on state and congressional campaigns. He previously had his own law practice and worked for the Sorling Northrup law firm in Springfield. u Baker lives in Springfield with his wife, Kim, and three children.

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Just a few things REALTORS® do...

Help you determine what you are looking for in a property and what is most important to you. • Stay up-to-date on local market data and interpret that information for you. • Find you a new house with a home office and a bigger yard. • Help you determine how much you can afford when looking for a new home. • Host a Zoom meeting to guide you through the buying, selling or leasing process. • List your property on the market. • Effectively market your property, choosing the right online, email and video tools that get the most bang per buck. • Create a virtual tour of your home. • Help determine the appropriate listing price. • Stay knowledgeable on local real estate markets • Schedule inspections and appraisals. • Email property upgrades to the appraiser. • Schedule 1-on-1 walk-through tours. • Know and enforce safe showing guidelines. • Wipe down surfaces with disinfectant after a home tour. • Schedule and coordinate appointments to show properties. • Stay up-to-date on mortgage loan, down payment and homeowner recovery programs. • Help you check your credit score. • Help guide you through the financing and insurance process. • Keep a list of recommended service providers such as inspectors, painters, etc. • Keep open lines of communication between buyers, sellers and any service providers. • Have a final video walk through with the client. • Assist with contract negotiations. • Work with attorneys to address issues and get to a closing • Coordinate closing with title company. • If necessary, attend a drive-by closing from the car. • Get the executed contract and escrow money to title company. • Ensure you get the keys or codes to your new home.

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ETHICS Code of Ethics combats discriminatory speech

Matt Difanis,

2020 Chair of the NAR Professional Standards Committee

On Nov. 13, the National Association of REALTORS® (NAR) passed the most significant anti-discrimination change to the Code of Ethics in decades. Effective immediately, discriminatory hate speech

by REALTORS®—even outside of work— is sanctionable under the Code.

In recent years, NAR has successfully promoted the many virtues of REALTORS® – like being advocates for fair housing – through its “That’s Who We R” ad campaign. Likewise, Illinois REALTORS® has a long history of promoting fairness and equality in housing and of trying to stamp out racism. Yet when the discriminatory hate speech of a small number of REALTORS® reverberates around the Internet, that unfortunately becomes who we are in the eyes of the public.

Numerous state and local associations petitioned NAR for a solution, as they lacked the tools to adequately address this type of behavior.

A major impediment to addressing this problem was that the Code previously applied only to REALTORS®’ real estate related activities and transactions.

This issue is personal to REALTORS®.

While the Code has prohibited

discrimination by REALTORS® in housing and employment since 1974, NAR President Charlie Oppler recently issued a formal apology for the role that the real estate industry, including REALTORS®, played in furthering systemic racism before the passage of the 1968 Fair Housing Act. Today, REALTORS® recognize fair housing as a moral imperative—as well as a legal and ethical mandate. Given our industry’s history, President Oppler correctly noted that REALTORS® have “a special role to play in the fight for fair housing.”

The changes adopted in November to the Policy Statements that accompany the Code, now make it apply to all activities by REALTORS®.

Most importantly, anti-discrimination provisions apply whether at work or on a personal social media profile. While the Code’s applicability has expanded, most Articles and Standards of Practice remain specific to real estate transactions and other real estate-related activities.

New Standard of Practice 10-5, adopted by NAR, states that “REALTORS® must not use harassing speech, hate speech, epithets, or slurs based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.”

What this new Standard of Practice doesn’t do is attack anyone’s religious beliefs, political ideology, or policy positions. Furthermore, a finding of a violation by a hearing panel requires more than showing that someone found the speech subjectively offensive, or that it invoked or referenced a protected class. To assist hearing panels in uniform and fair application of this new Standard of Practice, NAR’s Professional Standards Committee produced a new

appendix to the Code of Ethics and Arbitration Manual. This further ensures that enforcement will narrowly target weaponized, discriminatory hate speech.

The definition of “public trust” was also revised to remove the word “willful” from the term “willful discrimination.”

Since Article 10 has never required a finding of “willfulness” for there to be a violation, it made sense to remove this qualifier from violations that would trigger the obligation to report to government agencies a violation of the public trust. While violations need not be willful to be reported, they do still need to be related to real estate activities.

This is because government agencies are constitutionally limited in their ability to restrict private hate speech, regardless of how repugnant it may be.

The National Association of REALTORS® is a voluntary, private trade organization. The whole purpose of the Code has always been to hold REALTORS® to a higher standard. NAR’s Immediate Past President, Vince Malta said that the changes to the Code “ensure we are held to the highest possible standard while providing a mechanism of enforcement for those who violate our new policies.” Those unwilling to give up discriminatory hate speech need not be members. For the rest of us, we can more proudly proclaim that we’re REALTORS® and we pledge to live by the Code. Now more than ever before, the Code reflects who we R. About the writer: Matt Difanis is the broker-owner of RE/MAX Realty Associates with offices in Champaign, Mahomet and Monticello. He was president of Illinois REALTORS® in 2018.

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Ignite your business and life in 2021

By Lee Nelson

S

alsa and ballroom dancing along with Pilates helped Leslie Glazier keep her stress at bay and her world balanced through all the craziness of 2020.

"Dancing is harder virtually. You have to own every step instead of being led," says Glazier, a broker at @properties, Chicago and North Shore.

Many Illinois REALTORS® altered their lives and businesses – some drastically – in the last year.

According to recent Robert Half research, 34 percent of workers surveyed say they are more burned out on the job now versus a year ago.

Thirty percent said they are managing a heavier workload, and 19 percent noted they’re unable to establish boundaries between professional and personal life while working remotely.

Even with all the changes, Illinois REALTORS® aren’t sitting still. They are building stronger relationships with clients and family. They are getting their minds and bodies in shape. And they are revving up for a big 2021.

"I think we have leaned heavily on virtual meetings during this time and perhaps taking it 'old school' with phone calls can set us apart in our business and personal lives."

– Nykea Pippion McGriff

Leslie Glazier

Gathering good from the bad

For Glazier, the events of 2020 drew her family closer.

“We were thinking of downsizing before the pandemic, but we were glad we didn’t. There were seven people in our house and three dogs when we were quarantined together,” she says. “We had family dinners every night in our house, and we feel we have gotten to know each other in a different way.”

But she also saw the sale of condos and apartments in high-rises change as people wanted more space.

“People don’t want to be waiting in elevators anymore. They pay for amenities they can’t use. Some are moving to the suburbs,” she says.

As a certified divorce real estate expert (CDRE), she already knows she’ll be helping more divorcing couples. The change in schedules, homeschooling and working from home have a negative effect on some relationships.

“Attorneys and divorce coaches are talking about the huge uptick in divorce cases to come,” she says. “The courts are already overwhelmed and trying to do more collaborative work and mediation instead of litigation.”

She hopes to get divorce mediation training to help even more couples than she does now. Glazier also plans to start up her Windy City Wednesdays videos again.

For two years, she interviewed owners of neighborhood hot spots and her favorite places. That stopped with COVID-19.

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“It was the highlight of my day, and I want to go back to it. It was so fun,” she says. “These are places I’ve been going to forever, and I learned so much about the people during the interviews.”

That human interaction has become one of the biggest losses for REALTORS®. But they work through it with more videos, more wellness checks by phone, and more handwritten notes and cards.

Finding the balance with life and work

COVID impacted life and work for Nykea Pippion McGriff as she assisted her son with e-learning.

“I’m focused on being intentional with the time I spend with my son, so that means I have to say no to other things like checking email, answering the phone, etc.” says Pippion McGriff, 20202021 President of Chicago Association of REALTORS®. She works as Vice President of Brokerage Services, Gold Coast–Lincoln Park–West Loop for Coldwell Banker Realty.

She became the first Black female president of the association in its 137 years, and “it should not take another 137 to replace me. I would love to create a leadership hub with opportunities and training available to anyone who’s interested,” she said. Her focus for the next year is finding ways to connect with people one-on-one.

“I think we have leaned heavily on virtual meetings during this time and perhaps taking it 'old school' with phone calls can set us apart in our business and personal lives,” she explains.

Nykea Pippion McGriff 20

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gain productivity.

“If you are rudderless, you will have stress. The wrong business plan will cause stress. Change your strategy,” he states.

Theresa Mueller Balancing all of it in her life can be tough. But she constantly evaluates the time she spends on business as well as in business. For herself, she focuses on creating a specific plan of action for working out and eating healthy.

“Right now, everywhere you look are potential stressors,” she adds. “So, I’ve limited the time I spend consuming the news and social media. Working out also helps me to recharge.”

Sparking your personal world

Real estate can be a demanding job and that has only been exacerbated by trying to juggle it all during a pandemic.

REALTORS® say it is important to find personal and professional goals.

“I do exercise and meditate daily and try to not spin my wheels obsessing over a problem but rather think about solutions,” says Theresa Mueller, managing broker at Trelleum Real Estate, Naperville.

For Max McComb, he’s slowly but surely putting his health at the top of his to-do list.

“I have Type 2 diabetes, and less medication is my goal,” says McComb, broker at RE/MAX Realty Associates, Champaign. “I’m carrying this focus on health into next year.”

Walter Sanford has set many goals for himself, including a vacation to Montana, finishing the restoration of an 1898 Queen Anne Victorian home, increasing church responsibilities and focusing more on his health.

Sanford, a former real estate agent, now owns Sanford Systems and Strategies in Kankakee. He trains agents and loan officers on different systems to

Ways to get unstuck

If you are having problems getting motivated or changing bad habits, here are some ideas to rekindle your spirit, build your clientele, and be happier for the new year: u Find a good mentor – If you are new to the business, get a mentor or become part of a team, says Glazier. “It’s the best way to learn every facet of this business.

If you are by yourself, how do you know you are doing the right thing?” u Gain more clients – “Agents in 2021 will always win if they generate listing leads for a couple of hours every day,” Sanford says. u Strategize and make a plan – “Put together a plan and strategy that will work with you and for you, and keep working on it,” McComb says. If you have available dollars to put behind a lot of marketing, then go to that. But make sure it is sustainable. “It doesn’t do me any good to spend $10,000 on marketing the next quarter, but then I won’t be able to afford anything the next two years.” u Learn something new – “Often times, we get into a comfort level of doing things, and we don’t take the time to invest in ourselves to learn a new tool that may allow us to serve our clients more efficiently,” said Pippion McGriff. u Put yourself out there – Ask all your clients if they need anything from you and be ready to pivot, Mueller

Max McComb

says. She also volunteers for a few community endeavors and attends Zoom networking events. u Manage your stress – McComb unfollowed a lot of people that frustrated him on social media because “that’s a battleground overflowing with anger and hate.” He also has limited his time listening and watching the news. u Live on less – Save 25 percent of gross commission for taxes and invest 25 percent in income property to hold long-term with no flipping, Sanford suggests. “Learn to live on 50 percent of your income. I did this, and it was not easy (at first). But it is now.”

Bringing some normalcy back

Sanford says that even in this strange housing market, “inventory holders will be king.”

“Learn how to close against good competition, get the right price, do post-listing inspections, learn easy and

automatic customer service that evokes perceived value and close in a shorter time period,” he says.

REALTORS® are listing homes, and they are selling homes in the state. He believes if you find sellers who have reasons to sell, you have won part of the battle.

For Mueller, she has missed regular attendance at wine tastings, going to restaurants, creating themed monthly potluck parties at her house, and traveling.

But she quickly joined Zoom meetings and started a more aggressive social media presence with the gains coming.

She feels fortunate enough to work with a “variety of clients in this new normal.”

“I really hope to return to all the activities I so enjoy. But in the meantime, I’ll say yes to anything that even remotely seems social like a book club via Zoom,” she says.

Glazier has been picking up the phone and talking to people she had done business with five to 10 years ago.

Walter Sanford “We didn’t talk real estate. It was so fantastic,” she says.

Her experiences with all those conversations became a great life lesson.

“I learned to connect with everybody on a more personal level. Before, I would get too busy and just shoot texts and emails,” she adds.

Despite a pandemic or anything else that comes along, REALTORS® understand that it is a people business first and that will continue into the new year.

About the writer: Lee Nelson is a

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

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Illinois Young Professionals Network

Illinois YPN panelists share affordable and fair housing tips

By Bill Kozar, Marketing Content Specialist

T

he Illinois REALTORS® Young Professionals Network (YPN) hosted a virtual panel discussion, “Fairness is Opportunity – Doing R® Part,” featuring REALTORS® and experts skilled at helping consumers, including minorities, veterans and others in protected classes, find fair and affordable housing solutions.

The panelists offered suggestions you can apply to your own real estate business: u Talk to your local governmental affairs director and leaders of your local association to start the conversation about fair housing in your community. u Cultivate a partnership with a representative of the nearest housing counseling agency approved by the U.S. Department of Housing and Urban Development (HUD) at www.hud.gov. u With assistance from the HUDapproved organization, educate yourself about all the programs that can help consumers become homebuyers. u Learn about the connection of commercial real estate to residential real estate.

Experts share their ideas

REALTOR® Tommy Choi of Keller Williams Chicago-Lincoln Park and cofounder of Weinberg Choi Residential Team facilitated the discussion.

Panelists included: u Dionne Clifton, founder of LIVE Real Estate Group in Urbana, u Tracey Royal, managing broker associate at Coldwell Banker Realty Oak Park, u Rachel Scheid, branch manager of Coldwell Banker Realty in Chicago, 22

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u Athena Williams of the Oak Park Regional Housing Center, a non-profit housing counseling organization.

What prevents renters from becoming buyers?

Four of the biggest hurdles consumers face in realizing homeownership are: u low inventory, u saving enough money for down payments, u student loan debt and u a lack of knowledge about the available financing programs and resources.

“One of the biggest hurdles I see in veteran homeownership is just a lack of education around what the VA (Veterans Affairs) home loan product is and how to best utilize that benefit,” says Scheid, who has frequently partnered with the HUD-approved housing counseling organization, the Veterans Association of Real Estate Professionals (VAREP) to educate veterans on their homeownership and home affordability options.

“A lot of times they (veterans) don’t lead with the fact that they’re veterans and so a lot of veterans didn’t realize that was something they could take advantage of,” she said.

In addition to buyers and REALTORS® not understanding VA loans, Williams says MLSs that allow sellers to indicate they will not accept VA or Federal Housing Administration (FHA) loans are insensitive. REALTORS® who understand all the ins and outs can better prepare their clients, especially when multiple offers are on the table.

REALTORS® want their seller clients to

make decisions without implicit bias.

When asked for the best ways for REALTORS® to share information about fair and affordable housing with potential customers, several panelists recommended social media. But they also encouraged colleagues to take the idea of affordable housing to heart.

“If you believe in affordable housing,” says Clifton, “your messaging needs to be a part of your core values.”

“Our value as a REALTOR®, our fiduciary responsibility, is to never assume that clients need or don’t need (affordable housing),” says Scheid. “You have to make it a part of your everyday presentation.”

Start with a HUD-approved agency

Created 48 years ago, the Oak Park Regional Housing Center (OPRHC) has helped Oak Park develop a reputation as a welcoming community with a very diverse population, says Williams. That dynamic has helped homeowners improve the market value of their property.

Consumers start with a financial assessment at OPRHC, then take a mortgage readiness assessment to see how much they can afford to pay. They meet multiple REALTORS®, lenders and inspectors as they learn about the entire home buying process. OPHRC staff members match consumers with the right down payment assistance programs.

“To me, there's only on resource—a HUD-approved housing counseling agency,” says Williams. “Once buyers come into that agency, they learn everything they need to know about homeownership – even when it comes to foreclosure.”

TOMMY CHOI

Keep families in their communities

DIONNE CLIFTON

“I can’t tell you how many times I encounter clients whose initial desires are to remain in the communities they grew up in,” says Royal. “They have extended family who still reside in these communities but often feel they cannot afford to purchase in neighborhoods where they are vested and have built history. Through my partnership with Athena, I know about programs designed to encourage homeownership in blighted and underserved areas, and it is my fiduciary duty to promote them.”

“It is critical for me to build

TRACEY ROYAL

RACHEL SCHEID

strategic relationships with lenders and vet them differently,” Royal says. “I ask open-ended questions to ensure I pass on valuable and accurate information to my clients.”

What homeowners want

“When we talk about affordable housing, we also have to remember that a large part of it is accessibility,” says Scheid.

“Accessibility to grocery stores, libraries, banking institutions, health care centers, hardware, restaurants, clothing stores – all of that. People want and need to live in communities where their needs can be met. That is commercial real estate.

ATHENA WILLIAMS

“I think this year, more than ever, we’re seeing how important commercial real estate is to our communities,” she says. “We would be remiss if we did not also highlight the importance of ensuring fair and equitable assessment of taxes and property values in the commercial landscape. There needs to be more opportunities for minority business and small business owners to come to our communities and thrive there.”

But all communities in Illinois are affected by a need for affordable housing, Scheid says, even ones that are experiencing building booms.

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COMMERCIAL CORNER Commercial crystal ball: Looking at what might be in store for 2021

By John LeTourneau

John LeTourneau

is the managing director at Keller Williams Infinity and oversees the Keller Williams Commercial operations of seven suburban Chicago offices.

He is the president-elect of Mainstreet Organization of REALTORS® and is on the

Illinois REALTORS® Board of Directors.

By the end of 2020, things weren’t any clearer than when we first began the roller coaster that COVID-19 unleashed earlier in the year. Toss in a presidential election, wildfires out west and eviction moratoriums and it has been an interesting time in commercial real estate.

Here are a few of my predictions on the direction of various commercial market segments in the new year.

Retail

Pain and more pain in 2021. Already oversupplied and being hammered by online shopping, there is no good news for the retail segment coming any time soon. Creative reuse of malls for residential use and even conversion to industrial distribution space will be a growing trend.

Multifamily

After overheating for several years, this segment has hit the “pause” button. Job

losses during COVID-19 have hit many who live in apartments and eviction bans will expire in 2021, creating some painful moments. Those who bought buildings on pro-forma at low cap rates may soon regret that decision as their income falls, evictions rise and property taxes creep up.

Office

A bleak 2020 may lead the office sector to a slightly better 2021 as office users shift from downtown high-density properties.

Fatigue from “work at home” will drive more users back into the market as COVID-19 settles, but expect fewer “open concept” layouts and a return to private offices/workspaces.

Industrial

Red hot and getting hotter. This segment has received an incredible boost during the pandemic, with millions of square feet in planning or under construction.

Development is focused on big-box distribution, however small incubator/ flex-type buildings can be hidden investment gems for those investors who are unable to find a multi-family property that makes any sense.

Debt

The debt markets were a bright spot in 2020. Mortgage rates are at incredible lows and lenders are eager to deploy capital. Many investors are weighing the idea of buying into a potentially declining market against the long-term impact of low-interest debt on their yield.

Small Business Administration financing is a powerful option and makes a buy vs. lease analysis very interesting indeed.

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Spotlight on retail vacancies

By Wayne Caplan

Mortgage Rates

Property Taxes Property taxes

While not a commercial property class, property taxes in Illinois, and especially Cook County and Chicago, must be considered. In November, the Chicago City Council voted to increase property taxes by $93.9 million in 2021. The Cook County Assessor also raised assessments on commercial properties by 56 percent in the south and west parts of the county. These increases will have a negative impact on commercial real estate segments that have already been battered by COVID-19.

REALTOR® Alex

Ruggieri, CRE,

CCIM, CIPS, SEC, is a contributing editor to

Commercial Corner. He is a senior investment advisor with SVNRamshaw Real Estate in

There is no question the retail sector was already in a pre-COVID downward spiral. Now retail landlords must figure out how to navigate more vacancies as well as tenants that either can’t pay rent or can only pay a portion. From a planning standpoint, the evolution of consumers turning to online channels to buy, coupled with the negative effect of COVID-19 on business openings and lease renewals, is more than a double-whammy.

Many tenants can’t—or won’t— pay their contracted rent while the pool of potential replacement tenants is ever smaller. Many tenants who have been absorbing space over the past several years are waiting out the crisis. Urban downtown/ Central Business District retail spaces have been hard hit as the lack of employees going to the office has caused an almost complete erosion of downtown retail customers.

So, how should landlords plan around this? They have to be flexible with their existing tenants. Even if a tenant is not paying full or any rent for a while, it’s much easier to work with an existing tenant than it would be to find a new one in this environment and for the foreseeable future, especially in urban Central Business District areas. This will cause a potential cash-flow crunch for landlords, as they still have to pay operating expenses, insurance, real estate taxes and their mortgage.

Proactive landlords are openly communicating with their lenders to see if they can get short-term relief on their debt payments. Those who are able to get debt relief are in a better position to keep their existing tenants in place rather than having to spend time and money on leasing commissions, tenant improvements and the landlord work required to

attract new tenants.

Retail landlords will need to be on top of their upcoming lease expirations so they can plan ahead if tenants are not going to renew. The earlier you have that information the better, since it is almost certainly going to take longer to lease retail spaces.

New tenants will be more demanding in all aspects of the retail lease negotiation: rental rate, abatement, tenant improvement allowances and landlord work. And count on them to make offers on multiple spaces while negotiating with you. Tenants will likely also negotiate a “COVID-19 Clause” in their leases, allowing them to either pay lower rents—or in some cases zero rent—if there are government restrictions that affect their ability to operate.

Another potential landmine is co-tenancy clauses, where one tenant’s lease is dependent on another tenant operating in a property, a common arrangement in malls. If an anchor tenant such as a department store leaves a property, other tenants may also be able to terminate their leases and/or pay discounted rent for a prolonged period of time while the anchor tenant is not operating. It is vital that landlords keep their anchor tenants operating.

It is not an easy time for retail landlords, but being proactive, planning ahead and being flexible are keys to getting through this uncertain time.

Wayne Caplan is a

Senior Vice President for SVN | Chicago Commercial, specializing in the sale and leasing of retail, investment and development properties.

Champaign.

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EDUCATION Education is key to success

By Young Brockhouse, Vice President, Professional Development

With nine professional designations and a commitment to teaching, it’s safe to say Sandra Workman has a passion for real estate education.

Workman is an Illinois REALTORS® continuing education instructor, an MRED MLS instructor, Illinois President at the Residential Real Estate Council, a REALTOR® at Keller Williams Realty in Bourbonnais, and a Director for the Kankakee-IroquoisFord Association of REALTORS® and the Illinois Real Estate Educational Foundation (REEF).

Illinois REALTORS® asked Workman some questions about real estate education and why she chooses to be an instructor.

Why is education so important to you?

I think education is one of the most important things you can do in this business. When you stop learning, you stop growing, and you have to continually grow as an agent in order to service your clients.

The more education you have, the better your skills are at negotiating and knowing your local rules and laws. You’re going to do better in your job and become a valued and trusted source of information because you’re knowledgeable in your field of experience.

On a day when I’m not learning something new it scares me, and I tell brokers they should spend an hour everyday learning something new. I’m also a director of REEF and when I’m in front of one of my classes the first thing I do is hand out information on how they can get scholarships to continue their education. Education helps you

grow your business, and nobody can take your knowledge away from you.

Why did you become a real estate instructor?

I became an instructor to help raise the bar for the industry and because the best way to grow is to first educate yourself and then teach others. When someone asks you a question and you don’t know the answer, it gives you an opportunity to find the answer and learn more.

What courses do you most enjoy teaching?

My favorite subjects to teach are professional standards, code of ethics, and license law, because I really enjoy the challenge of taking the stodginess out of it and putting in a spark that livens up the material. The worst thing you can do is sit in a classroom and listen to a mumbling teacher, bored and falling asleep. I want to make the classes entertaining. If you make it fun, they’re going to learn more and they’re going to remember more. I want to take the legal content and make it relatable and take the rules and make them personal and interesting. I try to bring students into the conversation and get them engaged, talking and comparing experiences. The best classes are ones where the students get to engage, talk, and compare life experiences and things they’ve seen.

What do you like about being an instructor for Illinois REALTORS®?

Illinois REALTORS® holds its instructors to a high standard. I attend its instructor training every year and

I attend its instructor workshops. You can learn so much from other educators and from networking with people in the business. The instructor training I find most valuable is when you get a room full of instructors together bouncing ideas off each other. You hear what they are saying, and you can implement it in your own classrooms.

Illinois REALTORS® staff is also very dependable, and we can reach out to them and get answers. I call on Illinois REALTORS® staff all the time. When the rules change, IDFPR comes out with something new, or Illinois REALTORS® comes out with something new, Carrie Elliott emails us immediately. She is fantastic about giving us up-to-date information and answering our questions. I send students to Carrie all the time for answers to questions about their education. I also reach out to Becky Carraher whenever I have professional standards questions, and it’s easy for me to pop on email and reach out to Betsy Urbance or Anneliese Fierstos about legal questions. They’re a great asset.

Sandra Workman

REALTOR® at Keller Williams Realty in Bourbonnais ILLINOIS REALTOR® January 2021

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AT THE CAPITOL REALTORS® to lead on housing affordability and sustainability in 2021 Illinois legislators are expected to return to Springfield soon to do some business in the lame-duck session, before the 102nd General Assembly is sworn in on Jan. 13, 2021. COVID-19 prevented the General Assembly from considering or passing much in 2020, so many constituencies will be clamoring for legislative action on their agendas.

Illinois REALTORS® plans to get our voices heard above the din to pass a package of housing affordability and sustainability measures, important first steps that set the stage for the robust, proactive housing agenda we will be pursuing in the spring session.

The legislative package provides incentives and removes barriers for the creation of new or rehabilitated safe, decent and affordable housing.

Greg St. Aubin

Senior Vice President, Governmental Affairs

The legislation:

u Offers significant reductions in the tax valuation of newly constructed or rehabilitated property. Housing providers will be able to reduce the equalized assessed value (EAV) of a property that is newly constructed or rehabbed and the owner keeps the rents “affordable.” The EAV will be reduced on a sliding scale up to a 35 percent reduction based on the percentage of units and length of time the units are kept affordable. u Establishes a state income tax credit program that mirrors the popular, federal Low-Income Housing Tax Credit (LIHTC) program. There is high demand in the LIHTC program, which outstrips the current federal program’s allocations. The state legislation would attract investment to meet that excess demand and result in increased affordable housing construction in Illinois.

According to the Illinois Housing Council, which also strongly supports this measure, a $35 million annual program could create 3,500 homes or apartments each year. u Provides that a unit of local government may not prohibit the building or usage of “accessory dwelling units (ADUs)”, which are defined as an attached or detached dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. u Exempts from the state sales tax the purchase of building materials from suppliers in “disproportionally affected areas” if the building materials are to be incorporated into an affordable housing project.

While these proposals are not directly related to the pandemic, they will help some of the most vulnerable people in our society who were already struggling and have been hit hardest by the pandemic.

These issues are ripe for consideration and passage so Illinois REALTORS® will be out there working and creating desperately needed housing opportunities.

The pursuit of these initiatives also sets the tone for the future.

During this past year, Illinois REALTORS® leadership and members rededicated ourselves to our core principles and mission of being agents for proactive, positive change through projects like our multi-faceted Diversity

Initiative, of which this affordable housing package is one component.

Illinois REALTORS® is also working on a “big picture,” positive approach to the seemingly irreconcilable situation facing both landlords and renters regarding the eviction moratorium.

Unlike some tenant advocates that seek a narrow and punitive approach to the present and future situation, Illinois REALTORS® is trying to lead the way out of this mess with creative proposals that offer assistance and resolution, but also shared sacrifice and reasonableness on both sides of the landlord-tenant equation.

We’ll keep at it and keep you informed.

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OUTREACH Dearborn REALTISTS® lead cleanup efforts, impact change daily

Gideon Blustein

Director of Member Outreach

“Freedom is not a state; it is an act. It is not some enchanted garden perched high on a distant plateau where we can finally sit down and rest. Freedom is the continuous action we all must take, and each generation must do its part to create an even more fair, more just society.”

-John Lewis, Civil Rights Leader and U.S. Congressman

In late May, the killing of George Floyd by Minneapolis Police officers led to protests in communities throughout the United States. In some instances, community unrest boiled over into confrontations and property damage.

In Chicago’s West Chatham Neighborhood, the Dearborn REALTISTS® were quick to organize and respond to community requests for cleanup efforts.

The response helped communities rebuild

p On June 5, 2020, Dearborn REALTISTS®, along with their families, friends and neighbors cleaned debris in the West Chatham Neighborhood which experienced damage and looting.

TOP PHOTOS BY GWENDOLENE NEWTON AND BOTTOM PHOTO MATT DIFANIS

and refocus efforts towards economic development, equity and inclusion.

“We show up when we’re needed, but we show up every day, not just when there’s a catastrophe,” said Gwendolene Newton, 1st Vice President, Dearborn REALTIST® Board and broker with Century 21 S.G.R. “Our commitment to the community can be showcased in an event, but our actions daily are trying to make a difference in our community.”

The Dearborn REALTIST® Board is the Chicago chapter of the National Association of Real Estate Brokers (NAREB), the oldest African American real estate trade association. The board is at the forefront of economic development in housing in the African American community. The Dearborn REALTIST® Board’s membership is comprised of real estate professionals including brokers, attorneys, title employees, developers and REALTORS®.

REALTISTS® rise to the challenge and will continue to take action to address racial injustice and build safe and inclusive communities.

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Landlord-tenant ordinances, evictions and other local housing issues Housing issues continue to come up at the local level, driven in part by the pandemic environment. Here is a rundown of some of the major issues affecting Illinois communities this year.

Cook County Tenant-Landlord Proposal

Mike Scobey

Senior Director of Local Advocacy & Global Programs

q Chicago and Suburban Cook County REALTORS® Call For Action: Help Fix Harmful Housing Laws

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In October, the Cook County Board introduced a Residential Tenant and Landlord Ordinance (RTLO) which regulates the relationship between the tenant and landlord. This proposal’s provisions grant a variety of new rights and remedies to tenants, and it imposes several new responsibilities and duties on landlords. The proposal is similar to Chicago’s landlord-tenant ordinance, but it goes even further in regard to new duties and limitations imposed on property owners.

This proposal includes the following provisions: u Tenant “right to cure” nonpayment of rent before a judge orders eviction,

u Limits on late rental fee payments to $10 per month, u Disclosure to prospective tenants of utility costs for the previous 12 months, u Landlord storage of tenant’s personal items if tenant vacates a unit, u Notice of non-lease renewal must be done in no less than 90 days, u Landlords cannot charge other “fees” such as a move-in fees.

On Nov. 16, a public hearing was held to consider this proposal.

REALTORS® and association staff testified in opposition. A Call for Action to members, accompanied by digital ads (directed to county commissioners) was launched in November.

The city of Chicago’s Committee on Housing and Real Estate may also consider a proposal on “Just Cause” evictions, making it difficult to evict a tenant for any reason other than nonpayment of rent. It would also require advance notices on rent increases and would require tenant relocation assistance if the eviction was not a “just” one (as defined in the proposal).

REALTORS® oppose these kinds of proposals. The requirements discourage new investment in existing rental housing and drive up housing costs. The ideas may seem to help tenants but have the negative, longterm effect of driving up rents. It is also the worst possible time to impose all of this on landlords while they struggle with lost rental income due to the pandemic.

SPONSORED CONTENT

Firm foundation creates flexibility to meet challenges

By Rebecca Jensen

President and CEO of Midwest Real Estate Data (MRED)

Other local issues that we have advocated on in recent months: u A proposal to expand Joliet’s landlord licensure program to include singlefamily home rentals was shelved in October. This may come up again in 2021. u The fees in a new rental property crime-free housing licensure proposal in Granite City were scaled back considerably in September. u Consideration of a vacant property registration ordinance in Decatur was shelved in October. u A ballot measure to grant the village of Crestwood (south Cook County) Home Rule status was defeated in the November election.

u Evanston enacted revisions to the Accessory Dwelling Unit (ADU) regulations to provide further clarity on requirements and limitations while also providing for one unit, by right, per zoning lot.

Whew! We made it to a new year.

Like most of you, I kind of feel like we deserve a medal for surviving 2020. It was the year that saw the housing market roller coaster to a strong finish despite a pandemic, provided a never-ending election cycle and even gave us murder hornets.

We can take many lessons to heart as we enter 2021, not the least of which is that years of building a business based on listening to our subscribers resulted in MRED’s ability to nimbly change policies and adapt.  We grew – again! In 2020, we added subscribers in the Greater Gateway Association of REALTORS® and the Rockford Area REALTORS®.

MRED’s family has expanded to reach virtually every part of Illinois.  Conversations with practitioners showed they wanted a slicker mobile experience for the MLS, given that they were on the go even more than usual.

We are constantly updating connectMLS, and this was part of several changes.

We began a process which will bear fruit this year to allow MRED’s rules to be customized for individual REALTOR® associations. We believe one size does not necessarily fit all when it comes to rules, and where possible MRED wants to partner with our subscribers to make changes that make sense in local markets.

In each case, MRED has delivered for our subscribers in ways that made the journey through the year easier. In response, MRED’s subscribers gave us the highest customer satisfaction score we’ve ever recorded.

Good rules and products aren’t meant to be static.

Rather, they should meet the moment, whatever that moment happens to be. MRED’s job is to listen carefully, act quickly and keep brokers at the heart of everything we do.

MRED plans to keep growing and innovating in the year ahead.

This is a continuing journey which we invite associations in and out of Illinois to join. We value making sure local association MLSs retain their identities and we’re spearheading new efforts to customize rules for local associations where they make sense.

Join us in making the real estate industry work better for all.

Here’s to a great 2021!

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MARKET WATCH 2020 housing market defied expectations; what will 2021 bring?

By Stephanie Sievers, Director of Marketing

2020 was tumultuous, but the Illinois housing market proved to be resilient.

Initially disrupted by the pandemic, home sales and prices ultimately had one of the strongest rallies in years, even while inventory sank to new lows.

What’s ahead for 2021?

Geoffrey J.D. Hewings

Emeritus Director of REAL

What other economists are saying: Strong home sales will continue into 2021 with new home sales expected to jump 21 percent and existinghome sales to climb at least 9 percent. Home prices could rise by 6 percent by end of 2020 and grow by another 3 percent in 2021.

– Lawrence Yun, chief economist National Association of REALTORS® Expect the 2021 housing market to settle into a more normal pattern after the wild swings of 2020. Home sales could come in 7.0 percent above 2020 levels and follow more normal, seasonal trends. Home price gains could ease somewhat in 2021 but end 5.7 percent above 2020 levels. Inventory levels will begin to improve.

– Danielle Hale, chief economist, realtor.com 34

www.IllinoisRealtors.org

Expect Illinois median prices to continuously grow in 2021 within a higher and broader range compared to 2020. Home sales are also forecast to post positive gains, according to the Regional Economics Applications Laboratory (REAL) at the University of Illinois. Download the 2021 Illinois housing forecast at www.

IllinoisRealtors.org/Marketstats.

But Geoffrey J.D. Hewings, emeritus director of REAL, cautions that “the uneven impact of the COVID-19 pandemic on employment by sector and income level is likely to be reflected in the housing market in 2021.”

“With increasing opportunities to work from home for higher income employees, analysts suggest an increased demand for larger homes perhaps in suburban and ex-urban locations,” he said.

“This flexibility is not available for lower-income employees, especially those in the retail, leisure and hospitality sectors where layoffs and furloughs have been more severe, dampening both demand and supply of homes in the bottom 25 percent of the price distribution.”

Hewings shared three housing trends to watch in 2021:

Forbearance and foreclosures

Foreclosures had a profound impact on Illinois home prices and sales after the Great Recession. In 2018 and 2019, new foreclosure filings (or inflow) in the Chicago Metro area began to increase faster than the outflow of foreclosures through sale or REO. But in 2020, both dropped dramatically. This may be due to financial institutions honoring forbearance requests on mortgage payments, combined with the protracted foreclosure legal process in Illinois. The concern now is whether this will turn into a problem once the vaccine availability provides the basis for economic recovery and lifts the pause button on forbearance and foreclosure moratoriums.

Housing inventory

For the last three years, there has been increasing concern about the sharp decrease in available housing inventory.

Inventory dipped to record lows in 2020.

It is likely that mobility, even postrecovery, will be muted as individuals, businesses and homeowners take stock of their prospects and decide to stay put.

Relocation

Some homeowners may relocate out of urban areas to get more space. For smaller households, urban locations will remain attractive because of the desire to have access to amenities only found within cities. The costs of relocation are not trivial and the impact will vary depending on household income levels.

REALTOR® COMMUNITY 40 Under 40s and Game Changers

Tommy Choi

Eddie Garcia

Illinois REALTORS® Tommy Choi and Eddie Garcia were both chosen for Crain’s Chicago Business 40 Under 40 Class of 2020, which recognizes Chicago-area residents who are leaders in their professional fields.

Jakeeva Lee Jakeeva Lee, external affairs director for the Chicago Association of REALTORS®, was named to the Association Forum’s 40 Under 40 class. Lee also serves as industry and global relations manager for Illinois REALTORS®.

Champaign County REALTORS® help local Habitat for Humanity

Members of the Champaign County Association of REALTORS® pitched in on a local Habitat build and donated $750 to Habitat for Humanity of Champaign County in October.

Moses Hall Illinois REALTOR® Moses Hall made the list of Chicago’s 40 Game Changers, an award sponsored by Ariel Investments and WVON Radio, recognizing Chicago’s top African American business achievers under 40.

Mainstreet and Chicago honored for global program achievements

The Mainstreet Organization of REALTORS® (MORe) received a Diamond Global Achievement Program Award and the Chicago Association of REALTORS® (CAR) received a Platinum Global Achievement Program Award from the National Association of REALTORS® (NAR) in November.

Mainstreet YPN turns parking spaces into temporary mini park

The Mainstreet Organization of REALTORS® Young Professionals Network (YPN) worked with the city of Wheaton, the city’s downtown association and the DuPage chapter of the National Alliance on Mental Illness (NAMI) to create a community outdoor space so people could get out and safely meet together in the fall.

Virtual Xplode Conference: REALTORS® share tech ideas

Illinois REALTORS® gathered for the “Illinois Rockstar Panel” discussion during the Virtual Xplode Conference 2020 and shared cutting-edge tech ideas colleagues can implement in their businesses.

ILLINOIS REALTOR® January 2021

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