Committee on Housing & Real Estate
May 26, 2021 City Council Meeting
ORDINANCE
WHEREAS, there is a substantial racial wealth gap in the United States and in Chicago, with White households having ten times the net worth as Black households, and similar imbalance with respect to Brown households; and
WHEREAS, one of the main drivers of the wealth gap in Chicago is the lower rate of homeownership and home equity among minority families, due heavily to historic discrimination through red-lining, restrictive covenants, unfair implementation of the Gl Bill, contract sales, disinvestment, and other causes; and
WHEREAS, promoting homeownership is one ofthe factors that would reduce the racial wealth gap;and
WHEREAS, promoting homeownership is also an important factor in strengthening Chicago's neighborhoods; and
WHEREAS, Section 11-12-530 of the Municipal Code of the City of Chicago currently requires full payment of any outstanding water bill prior to recording a deed upon a transfer of property by sale or otherwise; and
WHEREAS, many transfers of title to a home are not the result of a typical sale, but are instead the result of court-ordered dispositions in which the new owner is not paying or receiving any money and may not have the resources to immediately pay a water bill in full. Moreover, most such transactions are already exempt from the real estate transfer tax; and
WHEREAS, because of section 11-12-530, real estate title transferees who cannot pay the full water bill are unable to have their deed recorded, and thus unable to assume full home ownership or accumulate or use home equity; and
WHEREAS, the operation of the current ordinance to block full home ownership disproportionately affects those living with lower income and people of color; and
WHEREAS, the current ordinance blocks the increase of home ownership in Chicago communities and prevents progress towards reducing the racial wealth gap; and
WHEREAS, an amended ordinance that removes the requir...
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