* Press release…
Two community organizations based in Chicago’s southwest and northwest sides, the Brighton Park Neighborhood Council and Logan Square Neighborhood Association, have filed a lawsuit in circuit court alleging that the office of Cook County Assessor Joseph Berrios conducts assessments that systematically and illegally shift residential property tax burdens from Whites to Hispanics and African-Americans and from the rich to the poor. The community organizations are represented by a team of lawyers from Chicago Lawyers’ Committee for Civil Rights, Hughes Socol Piers Resnick & Dym, and Miner, Barnhill & Galland.
According to the complaint, property owners in majority-Hispanic and majority-African-American neighborhoods are twice as likely to be over-assessed, by a rate of 20 percent or more above market value, when compared with majority-White neighborhoods. The complaint further alleges that as the percentage of White residents in a census tract increases, the ratio between the assessed values and actual market values decreases.
“It is fundamentally unfair that families in this community are required to pay artificially inflated taxes for their homes and bear a disproportionate share of the tax burden in Cook County,” says Patrick Brosnan of Brighton Park Neighborhood Council.
According to the complaint, 46 percent of residential properties that sold between 2011 and 2015 in Brighton Park were over-assessed by at least 20 percent; and 7 percent of residential properties were assessed at more than double their market value. Moreover, the Cook County Assessor’s office performs its assessments using methods that it refuses to disclose to the public, allowing the office to engage in “taxation without explanation.”
“What I find so dishonest and unfair is that if you’re a property owner just looking at your own tax bill, there’s no way to tell that you’re being under-charged or over-taxed based on the demographics of your neighborhood,” said Nancy Aardema of Logan Square Neighborhood Association (LSNA). “That’s why this outrage has gone on for so long.”
Hermosa, a predominantly Hispanic neighborhood served by LSNA, is the third most over-assessed neighborhood in the county. Data regarding homes sold between 2011-2015 shows that the Hermosa neighborhood properties were over-assessed by 24 percent on average and that even following individual homeowner appeals, the neighborhood was still over-assessed by 23.5 percent on average. In contrast, properties in the predominantly-White Lakeview neighborhood were 11 percent under-assessed on average before appeals and 15 percent under-assessed on average after appeals.
“What we see in this case is the perpetuation of a system that disproportionately impacts communities of color and continues to strip capital from already struggling neighborhoods,” said Aneel Chablani of Chicago Lawyers’ Committee for Civil Rights.
“It’s the same type of institutional racism that gave rise to Chicago’s extreme housing segregation through racial steering, discriminatory zoning and restrictive covenants.”
The complaint asks the court to declare the Cook County Assessor’s assessment system unlawful, and to order Berrios’ office to adopt and implement a fair, accurate, transparent, lawful, and nondiscriminatory system. It also seeks the appointment of an independent monitor to oversee the process. [Emphasis added.]
The lawsuit is here.
Chris Kennedy, among others, has been claiming this for a while now.
*** UPDATE 1 *** Kennedy campaign…
Logan Square Neighborhood Association (LSNA) and the Brighton Park Neighborhood Council had the courage to do what our elected officials and Democratic Party leaders refuse to do: condemn a system run by Joe Berrios that protects the wealthy and well-connected but hurts homeowners, communities of color and students. Political candidates and elected officials must follow the lead of these organizers and advocates and stop protecting our discriminatory, rigged property tax system.
*** UPDATE 2 *** Cook County Clerk David Orr…
An explosive lawsuit filed this morning in Cook County Circuit Court alleges, among other items, that Cook County Assessor Joe Berrios “systematically and illegally shifts residential property tax burdens in Cook County from property owners in majority-white neighborhoods to majority-Hispanic and majority African-American neighborhoods” as well as from the rich to the poor.
We saw this coming.
As Cook County Clerk, my office plays a major role in the calculation of Cook County property taxes. I remain frustrated at the blatant secrecy, lack of transparency and direction from the Assessor’s office regarding residential, commercial and industrial property tax assessments and why this ongoing issue has not yet been appropriately addressed.
Experts have already spent countless hours studying the assessment process and developing stronger models, so we know what the problems are. Three substantive studies have already been conducted: a 2011 study by the Lincoln Institute of Land Policy; a University of Chicago analysis commissioned by the Assessor in 2014 and funded by the MacArthur Foundation; and the Chicago Tribune investigation.
Berrios’s office acknowledged the problems several years ago, and in 2015, publicly touted a model he claimed would fix the regressivity issues.
We now know that was not true.
The new model was either partially or never implemented. No one outside of the Assessor’s office truly knows for sure because they have refused to tell the public what assessment model they are using.
Meanwhile, the Assessor has already completed all assessments for the 2017 tax year, subject only to review by the Board of Review, laying the foundation for the 2017 tax bills.
Assessment decisions lay the foundation for property taxes. The Clerk calculates tax rates for hundreds of taxing districts each year based on equalized assessments located within each district and the amount of revenue requested by those districts. The only key factor that is “fluid” is the assessment. Our calculations are transparent and mathematically precise.
As an elected official with a fiduciary duty to calculate tax rates and amounts included in tax bills issued by the Treasurer, it is difficult and painful to execute those duties based on flawed assessments.
*** UPDATE 3 *** Berrios campaign…
This lawsuit is politically motivated and coordinated with other efforts to support the candidacy of Assessor Berrios’ Wall Street-connected opponent. There are two sides to this story.
The main focus of today’s lawsuit stems only from claims in articles in the Chicago Tribune. Those claims are not based on any research or studies conducted by assessment, appraisal or real estate professionals. The Tribune articles were replete with errors, misleading comparisons and conclusions based on information the Tribune had but knowingly omitted.
Long before media attention turned to property assessment, the Berrios Administration has been proactive in improving the system to make assessments fairer. Cook County and the Assessor’s Office hired Tyler Technologies to work on identifying improvements in the property assessment system at every level — a process that is still ongoing, as improving any 40-year-old system cannot be accomplished overnight.
Fixing the 40-year-old system which Assessor Berrios inherited has been his top priority since taking office, after thirteen years of mismanagement by previous assessor Jim Houlihan, who allegedly violated the law and Cook County policies - resulting in a major lawsuit against the County which has dragged on for years.
Assessor Berrios has been proactive in addressing problems in the system which he did not create. He is cooperating fully with the current study of property assessment being conducted for Cook County by the Civic Consulting Alliance (CCA). He has committed to implementing whatever changes and improvements are recommended to make the system even fairer and more equitable.
Joseph Berrios continues to stand up for the taxpayers of Cook County. He has saved them tens of millions of dollars every year by completing the assessment cycle on time, billed more than $47 million in would-be lost revenue from erroneous exemptions and opened up the appeal process.
We are confident that when all facts ultimately come to light and all the technical aspects of this complicated matter are presented by actual assessment and appraisal experts in court and elsewhere, the Assessor’s Office will be found to have done a fair and equitable job.
*** UPDATE 4 *** Fritz Kaegi…
“The lawsuit filed today amplifies the many voices who see the tragic and unjust consequences of Joe Berrios’ shameful practices as Assessor. This lawsuit, filed by neighborhood and civil rights organizations, is yet another sign that Joe Berrios cannot be trusted to be our Assessor. The harmful effects are disproportionately felt in lower income neighborhoods and communities of color, and it is urgently necessary to fix this broken system. Joe Berrios and his cronies should not play politics with our homes–our most treasured and important investments.”
- DuPage Saint - Thursday, Dec 14, 17 @ 10:49 am:
Maybe it is racism and maybe it isn’t. But there is something way wrong in a system that is so far off on assessed values. I suppose racism is worse than incompetence but something is off here and those running the system should be held accountable
- Montrose - Thursday, Dec 14, 17 @ 10:52 am:
If you have ever asked yourself what people mean by “systemic racism,” this case is a poster child for it.
- City Zen - Thursday, Dec 14, 17 @ 10:53 am:
“In contrast, properties in the predominantly-White Lakeview neighborhood were 11 percent under-assessed…”
Looks like Chad and Trixie’s townhome on Southport is going to receive a hefty property tax hike.
- RNUG - Thursday, Dec 14, 17 @ 10:59 am:
They seem to have the data to back up the claims that a certain class of taxpayer is being discriminated against. The class may be minorities. Or the class might just be the economically disadvantaged, since they are less likely to have the resources or time to fight incorrect assessments.
Assuming the courts find an injured class of one kind or another, it will be interesting to see what remedies the court orders.
- City Zen - Thursday, Dec 14, 17 @ 11:01 am:
“Hermosa neighborhood properties were over-assessed by 24 percent…”
Looking at single family homes for sale in Hermosa, I see properties that pay 1/2 the amount of property tax today (no senior exemption) as I did on my smaller north side city condo over a decade ago. Looking back, I didn’t realize I was so selfish. Apparently, I should I have paid 3x as much.
- Montrose - Thursday, Dec 14, 17 @ 11:06 am:
“Looking at single family homes for sale in Hermosa, I see properties that pay 1/2 the amount of property tax today (no senior exemption) as I did on my smaller north side city condo over a decade ago.”
Anecdotal information is nice and all, but there is a reason their lawsuit is based on large scale data analysis and not on one person’s experience.
- Anonymous - Thursday, Dec 14, 17 @ 11:15 am:
When State Senator Harold Washington saw the overassessment of the West and South sides, he exclaimed, “They did that to us!.”
- City Zen - Thursday, Dec 14, 17 @ 11:16 am:
==Anecdotal information is nice and all, but there is a reason their lawsuit is based on large scale data analysis and not on one person’s experience.==
Agreed, but the world of property taxes, it’s a zero sum game. If Hermosa pays less, someone else is going to pay more.
- Responsa - Thursday, Dec 14, 17 @ 11:18 am:
This lawsuit keeps Berrios and his enablers and his beneficiaries in the news. That *is* the news. It is well timed and and is a tactic that can’t help but bring more attention to the longtime problems in– and surrounding– the operation of the Cook County Assessor’s office. Good.
- Anon - Thursday, Dec 14, 17 @ 11:26 am:
You mean the leader of the Cook County Democratic Organization, is being charge for discriminating against by the very same people who vote for him and his predecessor, the speaker of the house in Springfield, and their respective Ald., and State Reps., and Sens.on every election?
- Boone's is Back - Thursday, Dec 14, 17 @ 11:49 am:
Suits filed under the Equal Protection Clause have an incredibly high burden to meet in proving discrimination to a particular class.
RNUG- the “economically disadvantaged” are not a protected class per Supreme Court case law.
- SOIL M - Thursday, Dec 14, 17 @ 11:52 am:
Could be fueled by racism, or could not be. What it is the product of is Elitism. The Elite Ruling Class develops the rules for the Masses, while exempting the members of the Elite Class. Now where do these types of ideas come from?
- SaulGoodman - Thursday, Dec 14, 17 @ 12:05 pm:
**Looking at single family homes for sale in Hermosa, I see properties that pay 1/2 the amount of property tax today (no senior exemption) as I did on my smaller north side city condo over a decade ago. Looking back, I didn’t realize I was so selfish. Apparently, I should I have paid 3x as much.**
That’s… not how it works. But, I think you already know that.
- walker - Thursday, Dec 14, 17 @ 12:27 pm:
Worth looking into on a formal basis. I have my own theories on why this pattern occurs, but would rather wait until experts look at evidence and argue all sides.
Taxes will be the key theme of coming campaigns.
- anon2 - Thursday, Dec 14, 17 @ 12:35 pm:
==+ it’s a zero sum game. If Hermosa pays less, someone else is going to pay more.===
How about Lakeview and other underassessed neighborhoods paying their fair share?
- anon2 - Thursday, Dec 14, 17 @ 12:37 pm:
Property taxes are already regressive. That problem is compounded when assessment is regressive too. This should be an embarrassment to Berrios and those who support him.
- cdog - Thursday, Dec 14, 17 @ 12:39 pm:
Maybe this case can move up the judiciary ladder and protect a new class.
I think it would be easier to prove that some people are just not mentally equipped to handle a system such as Berrios oversees.
The class of mentally-disadvantaged people are many times the economically-disadvantaged.
It’s sad that in American, in the 21st century, people don’t have the math skills or civics understanding to prevent themselves from being victimized.
- City Zen - Thursday, Dec 14, 17 @ 12:49 pm:
==How about Lakeview and other underassessed neighborhoods paying their fair share?==
Agreed, but would the average Lakeview resident look at their already high (monetarily) tax bill and think they are not already paying their fair share?
- The Captain - Thursday, Dec 14, 17 @ 1:05 pm:
Any time there’s a development in state government you can usually find a statement from Pritzker either commenting on it or criticizing Rauner, or both. Sometimes you get a statement from Kennedy but not often.
Any time there’s a development in the Cook County Assessor’s office you definitely get a statement from Kennedy as evidenced above. So I’ll ask again for the millionth time, why is Kennedy running for Governor and not Assessor?
- RNUG - Thursday, Dec 14, 17 @ 1:41 pm:
-Boone’s-
You make a good point about SCOTUS not recognizing “economically disadvantaged” as a valid class. I still think the data may show economics is more at play than race. But, as you point out, race is what it is legal to sue over.
- Perrid - Thursday, Dec 14, 17 @ 1:52 pm:
This is largely semantics, but it’s more likely that these groups are being hit because they are poor, not because of their minority status. The original article listed many ways the assessments were out of whack, one of the being that the models use average price per square foot, meaning that expensive houses were under priced and cheap houses were over priced. Plus, if the system is set up to naturally over assess houses to force appeals, which I don’t think that specific claim has been proven but has certainly been implied, then the poor would be harder hit because they can’t afford a lawyer. This’ll probably turn into a war of the experts, where both sides say the other’s models and data are wrong. Both sides will be twisting it to make their argument.
- Say What? - Thursday, Dec 14, 17 @ 1:54 pm:
My monthly mortgage payment was increased again and as was the case in the past it is to cover the escrow for real estate taxes. Like many property owners with mortgages, the principal, interest and insurance portions of the bill are all less than the taxes.
While I applaud the lawsuit, I doubt that any property owner in any township in Chicago is satisfied with their property taxes.
- housing researcher - Thursday, Dec 14, 17 @ 2:21 pm:
City Zen:
==Agreed, but would the average Lakeview resident look at their already high (monetarily) tax bill and think they are not already paying their fair share?==
Everyone always feels that their taxes are too high. The entire point of the lawsuit and research is to show that the system is in fact unfair and that those in Lakeview aren’t paying their fair share. The system as it exists is causing others, specifically those in lower-priced homes, to pay more than they should, shouldn’t their justified outrage based on empirical facts matter? Or do only the feelings of Lakeview homeowners count?
- dlkut;qa - Thursday, Dec 14, 17 @ 2:21 pm:
The math involved makes it such that newspapers and the media in general are ill-equipped to report the story. Talk of ratios, coefficients of dispersion and such will not move the needle for anyone. These things are facts, but not very useful as political rallying cries because they are too hard to explain. I read the lawsuit and I think a judge may ask why the plaintiffs are seeking redress in the courts when the State of Illinois has authority to rectify poor assessment quality. In fact, the entity filing the suit in the first place should be Illinois Department of Revenue, after it had exhausted all attempt to fix the issue. If the Gov really wanted to hit at the Speaker, fixing assessment in Cook County would dry up his private sector income. But that would require exercising the Governor’s constitutional authority which is clearly a bridge to far.
- Just Visiting - Thursday, Dec 14, 17 @ 2:22 pm:
Because… MADIGAN!
Madigan and the assessor he controls.
Absolutely hold true here.
- Responsa - Thursday, Dec 14, 17 @ 2:30 pm:
==Any time there’s a development in the Cook County Assessor’s office you definitely get a statement from Kennedy as evidenced above. ==
Just a guess, but maybe it’s because Kennedy wisely understands that paying attention to the public frustration over this (property tax unfairness/ assessment credibility) broad, long-standing, non-partisan festering issue will help him with voters he hopes to attract.
- wordslinger - Thursday, Dec 14, 17 @ 2:40 pm:
–I think it would be easier to prove that some people are just not mentally equipped to handle a system such as Berrios oversees.
The class of mentally-disadvantaged people are many times the economically-disadvantaged.–
What in the world are you talking about?
You think it would be easier to establish that groups of people are “mentally disadvantaged” (whatever that means) than it would be to establish what neighborhoods are assessed more over market rates than others?
- City Zen - Thursday, Dec 14, 17 @ 2:46 pm:
==coefficients of dispersion==
That would be a great band name.
- Logan Squared - Thursday, Dec 14, 17 @ 3:12 pm:
The Logan Square Neighborhood Association may want to keep their heads down on this one. If properties in Logan Square were assessed at true market value taxes throughout the neighborhood would double and triple. It’s surely an imperfect system but people need to be careful for what they ask for.
- anon2 - Thursday, Dec 14, 17 @ 3:38 pm:
Regarding the Berrios response, how many more terms does he need to fix the system?
- Responsa - Thursday, Dec 14, 17 @ 3:58 pm:
The Sun Times editorial board made it abundantly clear a couple days ago just how poisonous they think Joe Berrios is. Here is the link for anybody who may have missed it the first time.
https://chicago.suntimes.com/opinion/joe-berrios-property-tax-assessor-politics-good-taxpayers-madigan/
- Say What? - Thursday, Dec 14, 17 @ 4:14 pm:
If the Cook County Democrats had a real leader, like Jacob Arvey or Richard J. Daley, Joe Berrios would not be have been slated again. Trouble is that the leaders are Berrios and Madigan now.
- Not Buying It - Thursday, Dec 14, 17 @ 4:42 pm:
@Logan^2 I wouldn’t be so that LSNA represents all of Logan Square. There are pockets of LS that would like to be Lincoln Park East.
- Ron - Thursday, Dec 14, 17 @ 11:22 pm:
Lake View property owners likely pay 20* the property tax that Hermosa does. And they use far less city services.
- Rabid - Friday, Dec 15, 17 @ 7:12 am:
rauner is in bed with the assessor shifting his tax burden, because home is worth fight for