Bring Chicago Home: A Failed Hope
Image Credits: Chicago Sun-Times
For many, a home is simply a means to an end — a place to pass the time. But, for the millions of others who aren’t as fortunate, a home is a sanctuary.
Unfortunately, when initiatives intended to help those most disadvantaged fail, the burden of relief is on no other than the people who needed the help the most in the first place.
One example is the Bring Chicago Home referendum, which was launched in the fall of 2018 in hopes of creating a new revenue stream for the homeless. It would legally be dedicated to providing permanent affordable housing along with services to aid individuals experiencing homelessness in Chicago.
As of 2021, there were an estimated 68,440 people experiencing homelessness in Chicago, with many having limited shelter, and some temporarily staying with others because of financial hardship or housing loss.
The surge of new migrants during 2022 to 2023 also contributed to the housing crisis in Chicago, going as far as to incentivize local governments to create shelters. 28 temporary shelters have been established in Chicago to house over 14.2 thousand migrants still seeking permanent housing.
The measure, which was already largely controversial, was intended to increase Chicago’s real estate transfer tax by 2% on properties sold for more than $1 million. As a result, the increase was expected to only apply to 4.2% of properties sold every year, generating an estimated $100 million every year. The revenue generated would then be used to provide permanent affordable housing for people experiencing homelessness.
According to Bring Chicago Home, the new tax was to be “legally dedicated to programs that alleviate homelessness, including assistance for children, veterans, and those fleeing gender-based violence.”
The measure also sought to lower transfer tax by 0.60% on properties sold for less than $1 million, which is what a vast majority of Chicago homes are sold for. An estimated 94% of properties would have had a decrease in transfer tax rates, as the tax was anticipated to primarily fall on commercial properties, which often sell at a drastically higher price than residential properties in the city.
Housing was said to be created in the form of housing vouchers, completely new construction, and renovation to preserve existing homes. In order to further help participants, they would also be connected to social services such as mental healthcare, substance use counseling, academic and job opportunities, and resources for individuals going through domestic violence.
This initiative was ultimately rejected by voters on Friday, March 22nd, 2024. The Associated Press called the race at 6pm on March 22nd, with 53.66% of voters rejecting the proposal. Previously, as of Wednesday morning, results had shown close to 54% of voters voting “no”, in comparison to the 46% who had voted “yes.”
Los Angeles had passed a similar tax increase in 2022, which increased transfer taxes for properties sold for more than $5 million. The measure turned out to be disastrous for LA as the real estate market froze, with people refusing to sell in hopes that the tax would be overturned in court.
The warranting behind the refusal of this policy was that with no official plans or details in regards to how money was supposed to help the homeless, Chicago mayor Brandon Johnson and the city could raise taxes without guaranteeing that the revenue earned would guarantee help for the homeless.
Sources:
https://apnews.com/article/chicago-mansion-tax-e67972192317186fd41988bdfbd6348a
https://www.bringchicagohome.org/
https://www.illinoispolicy.org/bring-chicago-home-referendum-being-rejected-by-voters/
https://www.axios.com/2023/09/23/housing-crisis-migrant-immigrants-homeless
https://www.illinoispolicy.org/what-you-need-to-know-about-bring-chicago-home/
