In recent weeks, President Obama has announced a series of programs designed to help homeowners stay in their homes and stabilize communities hard hit by foreclosure. The programs improve the Home Affordable Refinance Program (HARP) and expand similar benefits to homeowners with non-GSE-backed loans through an FHA refinance program, introduce a Homeowners’ Bill of Rights with better mortgage disclosures and standardized servicing practices, and expand HAMP eligibility and triple incentives for servicers to conduct principal writedowns, among other initiatives. Together, these programs will help make homeownership more affordable and boost homeowners’ incomes and/or equity. We call on Congress to work through the political gridlock to pass these measures.

Cook County recently joined the City of Chicago in passing a new vacant property ordinance that holds bank servicers as well as owners responsible for the maintenance and upkeep of vacant properties left behind during foreclosure. The new rules in both the Chicago and the Cook County ordinance are an important step forward because previously, only “owners” were responsible for property maintenance. Past ordinances did not give responsibility for upkeep to bank servicers that were in the process of foreclosure, but did not technically own the property yet. These so-called “in limbo” properties, located in neighborhoods throughout the county, are open to trespassers, can become a haven for criminal activity, and are sometimes stripped of wiring and appliances, making them less marketable and therefore less likely to sell.

During his State of the State address, Governor Pat Quinn announced the launch of an effort to better connect struggling homeowners to foreclosure prevention resources. He also emphasized the importance of the recent expansion of the Earned Income Tax Credit (EITC), which will help working families build wealth and invest in their futures and plans to make Illinois a leader in making public data open and accessible. Woodstock Institute applauds the Governor for making resources more accessible to homeowners facing foreclosure and helping low-income workers build more assets.

Illinois has made significant advances in protecting consumers from high-cost, short-term loans like payday and consumer installment loans, but more and more loans are originated online where  state consumer protections are too often ignored.  A bill introduced by Illinois Rep. Greg Harris would tackle the problem of unlicensed payday lenders, which generally operate online, by eliminating an unlicensed lender’s ability to collect on illegally-arranged loans.

Every day, we see families and communities struggling with foreclosure, job loss, debt, and lack of access to affordable credit as a result of the foreclosure and economic crisis. Many of our families, friends, and neighbors have lost their homes, suffered damaged credit, or filed for bankruptcy. Consequently, fewer people have access to affordable credit to buy a home, start a business, pay for college, and so on. The wealth gap between the haves and the have nots has widened significantly. The problems continue to hit hardest in communities of color, where there is a higher concentration of predatory lending, low credit scores, and bankruptcies.

The Earned Income Tax Credit (EITC) is an important tool that gives working families who are barely getting by the opportunity to build assets for themselves and the next generation. With the EITC, low-income tax filers can buy textbooks for their children, make repairs to their home or car, and build a cushion of savings for future emergencies. In 2011, the average EITC recipient in Illinois received $2,250 from the federal government and even more from the state—a substantial boost to working families’ assets. Unfortunately, one in five eligible tax filers do not claim the EITC, missing a chance to invest in their future. Today is Earned Income Tax Credit Awareness Day, organized by the IRS to encourage workers to file for the EITC and let them know about free tax preparation options available to them.

When it comes to setting priorities on pressing housing issues, municipalities across the Chicago region are putting aside their differences and working together to improve livability throughout the area. The latest manifestation of this collaborative spirit is the Northwest Suburban Housing Collaborative (NWSHC), a group of five municipalities in northwest Cook County who have joined forces to proactively address housing needs in their communities.

You are cordially invited to a workshop, hosted by the Cook County Bureau of Economic Development and Dept. of Building and Zoning, to explain the recently passed Vacant Building Ordinance and how it can help your municipality. As you may be aware, the ordinance allows interested municipal governments to "opt-in," with the goal of creating a uniform set of guidelines for maintaining and securing vacant properties throughout Cook County. The workshop will provide additional information regarding the features of the ordinance, including the creation of a vacant building registry and the ability to adjudicate violations of the ordinance through the Cook County Department of Administrative Hearings.

During his State of the Union address tonight, President Obama announced measures to make homeownership more affordable for homeowners and hold banks accountable for fraud and abuses that rocked the financial system and drained billions of dollars of wealth from families in Illinois and across the country. Specifically, the President announced an initiative to give homeowners who are current on their mortgages the opportunity to refinance at today’s record low rates. He also announced the creation of a unit, led by New York Attorney General Eric Schneiderman, which will focus on investigating abuses in the mortgage origination and servicing sectors.

On Dec. 14, 2011, I introduced and received unanimous support from my colleagues on the Cook County Board and President Toni Preckwinckle to pass the Cook County Vacant Building Ordinance. This ordinance is the first step for the County to be a part of the solution to help stabilize communities throughout the county suffering under the burden of increased foreclosures and the resulting vacancies.