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Wednesday, Apr 22, 2020 - Posted by Rich Miller

* Even if the governor had the power to do this (and I don’t think he does and neither does his legal counsel), a governor should not use this emergency to fulfill a policy goal that has been rejected for decades by the Illinois General Assembly just because elements of his base want him to do it. Here’s Ariel Cheung at the Tribune…

The state’s eviction moratorium has not been enough to protect Illinois renters, housing advocates say. Chicago’s 2,000 one-time housing grants — which 83,000 people have applied for — did not quiet the calls for relief.

Lawmakers are rushing to pass legislation that would suspend rent and mortgage payments during the coronavirus pandemic, while also keeping landlords and lenders afloat. But next month’s rent is due in just over a week, leaving little time to help those who need it. […]

Advocates and a growing number of politicians have urged Gov. J.B. Pritzker to use his emergency powers through his ongoing disaster proclamation to repeal the state’s preemptive ban on rent regulation — action Pritzker has repeatedly said he cannot legally take. They are also pushing for the governor to put a moratorium on rent and mortgage payments for the duration of his stay-at-home order and three months after it is lifted.

They come armed with a legal opinion arguing that such action is within the governor’s powers during a declared disaster, either by issuing a statewide order or leaving it up to municipalities to decide.

…Adding… Set aside for a moment the highly questionable legality of the governor issuing an executive order to nullify a state law that prohibits rent control, and consider their other demand that he place a “moratorium on rent and mortgage payments” for the duration.

Leases and mortgages are legally binding contracts. So, the progressives pushing this idea need to stop and think what they’re doing. If they say he has the ability to nullify contracts, then what’s to stop him from temporarily nullifying or altering public and private employee union contracts? The CTU has been backing this ill-advised campaign. Careful what you wish for. Also, y’all might want to check the US Constitution’s contract clause.

Heck, taking it to an extreme, if the governor supposedly has this much power during an emergency, what’s to stop him from nullifying the legally binding contract portion of the state Constitution’s pension clause?

17 Comments

- Practical Politics - Wednesday, Apr 22, 20 @ 11:56 am:
Illinois government bodies depend upon property tax payments. This moratorium is completely unworkable.

We are in a world of hurt now, but this proposal would make matters much worse.

- DuPage Saint - Wednesday, Apr 22, 20 @ 12:12 pm:
Of rent payments can be abated then abate real estate taxes
I love the fact people want to make landlords support their tenants. I believe tenants and homeowners need help. But help should come from the state or feds. In DuPage County it is not uncommon for the rent from one unit or one and a half units to go for real estate taxes

- BigLou - Wednesday, Apr 22, 20 @ 12:16 pm:
Why not have grocery stores and restaurants just give us food. Landlords provide a product/service and have their costs of running a business. Just like the mortgage companies and the investors that bought those securitizations of mortgages that rely on that income, like retirees who need the income to live off of. I know its a messed up situation but what these people want is ridiculous.

- JoanP - Wednesday, Apr 22, 20 @ 12:21 pm:
I completely appreciate how hard it is for folks with no or significantly reduced income to pay rent.

However, I am getting fed up with people in my neighborhood who are “demanding” (yes, that’s their word) that landlords “cancel” (again, their word) rents. I do think that landlords and tenants should be negotiating right now - rent reductions or deferrals, perhaps. But making “demands” is not the way to do that.

- Benjamin - Wednesday, Apr 22, 20 @ 12:26 pm:
It’s okay to order tenants shouldn’t have to pay rent if it’s okay to order that landlords shouldn’t have to make mortgage payments. That’s not snark–many small landlords would love to work something out with their tenants but they still have mortgages to pay. As those banks are typically regulated on the federal level and not the state, Pritzker doesn’t have a lot of power here.

As for allowing rent control, what immediate problem does that solve? Who’s raising rents dramatically in this crisis?

- the Patriot - Wednesday, Apr 22, 20 @ 12:27 pm:
Practical makes an excellent point. Landlords pay taxes with rent. IL cannot operate without our property taxes.

Mortgages are federally regulated instruments by federally regulated banks. You don’t just stop landlords, you shut down revenue for banks. Don’t just think Chicago, you lose many locally owned banks in small towns and the towns collapse.

This is a move that collapses the economy.

- Iamthepita - Wednesday, Apr 22, 20 @ 12:33 pm:
The stay-at-home executive order would be ineffective if tenants didn’t have a home but then again, there’s a suspension on eviction orders but it doesn’t mean landlords won’t take matters in their own hands… I have an Airbnb guest who checked in a couple days before the EO and was originally staying for a week but now he’s staying longer because he can’t move into his new apartment. I’m wondering how does this also affect Airbnb guests too… after all we’re trying to beat the curve with this stay at home stuff…

- Mason born - Wednesday, Apr 22, 20 @ 12:33 pm:
This seems really short sighted. It’s just shifting who is impacted. if a small landlord then they are out income while still having bills for the property as well as their personal expenses if a large landlord then they likely have employees depending on a check as well as the expenses of the property. I’m assuming these folks would still like to see landlords keep up on maintenance of the properties i’m sure the towns want their taxes, and banks their mortgage payments. 3 months + the stay at home order is 5 months or so, about half a year worth of income.

I will say that it’d be wise of landlords to help their tenants out as much as they can, reducing or deferring rent as best they can. they’ll need those tenants when we finally start to pull out of this. I do think lenders could help by letting borrowers add months on to the back end of the loan to skip payments now, provided the lender can afford to do it.

- Todd - Wednesday, Apr 22, 20 @ 12:37 pm:
The litigation from this is going to be facenating.

I wonder how this is not a governmental takings? It won’t stand up

- fs - Wednesday, Apr 22, 20 @ 12:40 pm:
== there’s a suspension on eviction orders but it doesn’t mean landlords won’t take matters in their own hands==

“taking matters in their own hands” is breaking the law. A new executive order does nothing to stop that.

This will push the housing market towards another collapse. The housing market is one of the few things right now that may end up holding up the overall economy through this, and it’d be insane to pressure it now.

- Anyone Remember - Wednesday, Apr 22, 20 @ 12:52 pm:
Can we get a copy of the legal “opinion” ?? Is it from Tillman’s attorney? /s

- DuPage Moderate - Wednesday, Apr 22, 20 @ 12:56 pm:
Had 5 multi-family sales under contract three weeks ago that would have netted $200,000 in transfer taxes to the State of Illinois, County of Cook and City of Chicago. Due to ridiculous proposals like this that do not promptly get shut down by our leaders, all have fallen apart due to the risk of government mandated/permitted non-payment of rent. These discussions are reckless and are having real financial impacts on day-to-day business in the State - impacts that we cannot continue to incur.

- Dotnonymous - Wednesday, Apr 22, 20 @ 1:10 pm:
Panic has it’s own legs.

- Nagidam - Wednesday, Apr 22, 20 @ 1:13 pm:
These folks are using the pandemic to push rent abatement in the guise of rent control. I have zero statistics to back up my claim but I seriously doubt their are any landlords trying to raise rents in todays rental environment. Even if for some crazy reason a Governor would be able to freeze rents and mortgages, taxes and insurance still have to be paid. If a county would freeze tax payments all hell would break loose as units of government dependent on property taxes would soon not be able to make payroll.

- Bigtwich - Wednesday, Apr 22, 20 @ 1:19 pm:
==These discussions are reckless ==

So stop discussion it.

- revvedup - Wednesday, Apr 22, 20 @ 2:28 pm:
The so-called “progressives” have co-opted the idea that a temporary suspension of having to pay rent is the same thing as “rent control”, which it is NOT. The Socialist/Communist dream of having the State control rents is alive and well. Fortunately it won’t be happening the way they want it.

- JoanP - Wednesday, Apr 22, 20 @ 3:49 pm:
A link to a .pdf of the legal opinion referred to in Ariel Cheung’s article can be found here: https://www.ltbcoalition.org/index.php/legal-memo-gov-pritzker-has-the-authority-to-lift-the-ban-on-rent-control-enact-rent-mortgage-holidays/

Also online at Despres, Schwartz and Geoghegan, Ltd.’s website: https://dsgchicago.com/2020/04/governor-pritzker-has-legal-authority-to-grant-rent-relief/

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