For most, $10,000 cuts deep

Most Highland Park residents are unaware of the City’s $10,000 tax ($15,000 in some cases) levied against property owners that demolish their home… until they have to pay.  That was certainly the case with 87 year old Peter Diambri who owns a boarded up, water damaged rental property.  Diambri wants the structure removed, but was stunned to learn the City wants 10 to 15 percent of the property’s estimated value to fund, primarily, Highland Park affordable housing efforts.

Arguments in favor of the affordable housing demolition tax vary.  Some argue that Diambri and others can still make a sizeable profit on their property therefore they shouldn’t blink at $10,000.  One advocate has stated that it is unconscionable for someone to realize a significant return on investment on their property. 

Others have stated that the intent is to discourage teardowns and that the revenue is simply an added bonus.  Yet Highland Park staff person say there was no reductions in the number of tear downs when the tax was implemented.

Still, most advocates focus their message on the end goal – providing housing for people and families who otherwise cannot afford to live in Highland Park.  In other words, the ends justify the means. 

Homes, like most goods, have a lifespan.  There simply comes a point in the life of most homes where the economics do not favor maintaining the structure.  And those that have done nothing other than being guilty of owning an older home should not be compelled to fund $10,000 to fund the City’s affordable housing efforts while most other property owners do not have to pay even $100.

For most people, $10,000 is a lot of money.  It’s money that can go toward retirement, to a child’s college education, to paying off debt,, or even to a different charitable cause.  Highland Park property owners subject to this tax are average folks with varied financial needs and goals.  Forcing a narrow group of property owners to contribute $10,000 to a charitable effort without regard is inequitable and unjust.  A much broader, fairer revenue source is in order.  The Highland Park City Council is exploring possible reform and will next be discussing this matter on Monday, March 11 at 6:00 p.m. at City Hall – the meeting is open to the public.

Howard Handler is Government Affairs Director for the not-for-profit North Shore – Barrington Association of REALTORS® – the area’s leading private property advocate.  Handler, a licensed real estate broker, received his undergraduate degree in journalism from the University of Wisconsin – Madison, and his master’s degree in Public Policy and Administration from Northwestern University.  He can be reached at: hhandler@iar.org