In response to the recent letter to the editor on the transfer tax referendum, I offer an alternative perspective from 19 years of providing affordable housing across Chicago’s South and West sides. I emphasize private ownership, especially naturally occurring affordable housing, or NOAH, at the community level. (NOAH properties are affordable, but there are no federal subsidies).
“Big A” affordable housing, which would be shielded from the transfer tax, relies on substantial federal funding. But NOAH developers, who are crucial contributors to Chicago’s affordable housing stock, face increased financial strain with the proposed transfer tax.
I argue the transfer tax could harm vulnerable communities. Operational challenges, like rising material costs and the tax’s impact on struggling property owners, could reduce the number of affordable units, raising rents.
Second, the tax might destabilize communities by inducing unintended consequences. Rent hikes could push stable, paycheck-to-paycheck individuals into housing instability, potentially increasing the need for subsidies and worsening homelessness.
Third, the economic impact could be significant. The tax aims to generate funds, but may result in fewer units and a focus on extremely low-income voucher holders. This shift could harm small businesses, particularly in communities where Black, Indigenous and people of color live, due to decreased expendable income.
Despite good intentions, the transfer tax may not be the solution. Regarding transfer tax specifics:
- The idea that the tax targets only the ultra-wealthy is debunked; small family businesses using real estate for stability will also be impacted.
- While 93% of real estate transactions might see a tax decrease, the implications for the city budget remain unclear, potentially affecting homeless initiatives.
- The estimated $100 million annual revenue is questionable. Comparisons with Los Angeles, where a similar tax fell short due to legal challenges and a slow real estate market, cast doubt on Chicago’s anticipated revenue. Legal hurdles and market conditions may undermine reaching the projected amount.
- The claim that the transfer tax won’t directly increase property taxes is challenged. A density reduction may indirectly lead to higher property taxes for all owners.
A nuanced understanding of the proposed transfer tax reveals potential drawbacks requiring further consideration for a sustainable approach to affordable housing in Chicago.
Corey Oliver, CEO, Strength In Management LLC
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When will politicians get the message on guns?
I remember when the Chicago Cubs won the World Series in 2016. One of my children, who was 20 at the time, went to the rally downtown and was happy in that he’s a Cubs fan. He, like the people in Kansas City who celebrated a Super Bowl win, went to celebrate and feel pride and cheer his team. I saw him that morning and I saw the happiness on his face, never even thinking that a shooting could occur. Our politicians in Washington have to take action on gun legislation.
Joseph Battaglia, Clearing
Don’t tie ShotSpotter to Adam Toledo’s death
Whenever there is an article discussing the merits of ShotSpotter, the incident that is always mentioned is the tragic death of Adam Toledo. In this case, ShotSpotter worked exactly as it was supposed to. Ruben Ramon allegedly was shooting at passing cars driving down the street at 2:30 a.m. with Adam by his side. This part never gets mentioned anymore. ShotSpotter picked up the shots and police were there in minutes.
We all saw the videos of that night, including the first one that triggered the events that unfolded. Ruben Ramon’s actions were directly responsible for creating the scenario that led to Adam Toledo’s death and he should have been held accountable for his actions.
Mike Tully, Hillside
Remembering Jack Higgins
I have been reading the Sun-Times for many years, and one thing I looked forward to each day was to see which politician Jack Higgins had drawn a cartoon about. He clearly understood the Windy City, crime, scandals and especially the politics. Godspeed, Jack.
Richard Barber, Mount Greenwood
Why the case against Fani Willis matters
Marc Morial’s op-ed regarding Fani Willis and Nathan Wade misses the major point of the disqualification motion. The affair itself is not the issue. The issues are:
- When the affair began.
- Whether the large fees Mr. Wade would get influenced Ms. Willis’s decision to bring the case and retain him.
- Whether she received gifts or travel in return.
- Whether they each lied in court proceedings about when the affair began.
If the affair began before the prosecution began and Mr. Wade was hired, it would be a serious ethical violation because she would be steering money to her lover without disclosing that fact in advance. If some of the money came from federal grant funds, it would become a crime. Lying about that to the court would make things worse for Ms. Willis, and would amount to perjury by Mr. Wade. We don’t know the facts yet, but if the allegations are true, the prosecution is likely to be severely compromised. If they are not, things should proceed without additional delay.
Franklin G. Snyder, executive professor, Texas A&M University School of Law
NATO countries should pay up
It was entirely appropriate for former President Donald Trump to call out the NATO countries that want protection without paying their fair share.
In many cities years ago, and some rural areas today, fire companies operated by subscription. If your home or business caught fire and your bill was not paid, your structure was allowed to burn.
Hopefully, Trump will spur them into paying their bills. Freedom is not free!
Tom Murray, Barrington
