Security in ones’ property has been a fundamental tenant of our society since its inception. The Fifth Amendment enumerates this vital right and has served as a refuge against the government unjustly interfering with individual property rights for centuries. But, as judicial interpretation develops over time, a startling trend has emerged that could profoundly shape the future of the taking of private lands by the government. The landmark case of Kelo v. City of New London marked a radical shift in what could be construed as a legitimate taking based on a state’s police power. (1) This ruling has resulted in many states drafting new legislation in an attempt to temper the controversial ruling. (2) Regardless of how the legislature approaches the issue, it is clear that the takings landscape has fundamentally changed in ways that were unintended and unforeseen. Have we entered an age of disintegrating property rights? [More]

In August 2010, the Federal Housing Finance Agency (FHFA) proposed “Guidance on Private Transfer Fee Covenants” (No. 2010-N-11) that would prohibit Fannie Mae, Freddie Mac, and the Federal Home Loan Banks from purchasing mortgages with private transfer fee covenants. A private transfer fee is charged each time a property subject to such a covenant is sold. The fee is typically calculated as a percentage of the property’s sales price. These covenants are commonly used by homeowner associations.

FHFA’s stated reason for this decision was that these covenants “appear adverse to liquidity, affordability and stability in the housing finance market and to financially safe and sound investments.” FHFA was further concerned with the private income streams created by these covenants and whether all of the money collected was used for the stated purpose of the fees. Another concern was with disclosure of the fees since they can be hidden with other closing costs at the time of sale of a property. FHFA was also concerned with harm to the valuation of properties encumbered by these private transfer fee covenants. [More]

The current financial crisis ushered in by the collapse of the sub-prime mortgage market has shaken the foundations of our financial markets, exposed numerous Ponzi schemes, most infamously that of Bernard Madoff, and resulted in a tremendous increase in home foreclosures and bankruptcies. In many of the current bankruptcy cases the line between a fraudulent conveyance and a legitimate transfer can make a difference of millions of dollars for the legitimate creditors. In the realm of real estate, this situation has placed on the courts the burden of deciding which is more important: fair and equitable distribution of assets among creditors, or the historical distinctions between fraudulent conveyance law and foreclosure law. [More]

This article will consider the various treatments and readings the Illinois courts have given the Home Repair and Remodeling Act and consider how different courts attempt to make the law conform to unexpected facts. This article will analyze the judicial activism taking place in three very different cases and consider the methods in which the courts achieve their goals. [More]

This article discusses certain judges’ reluctance in granting deficiency judgments on residential foreclosures. Particularly, the effects categorical refusals to grant such judgments are considered. Potential effects on the lending market and available residential loans are identified addressed. Ultimately, a lack of deficiency judgments may lead to fewer loan products being available to homeowners and/or an increase in interest rates on full-recourse loans. In addition, the need for further research in the area is highlighted, particularly as it relates to the current economic situation. [More]

As the economy is getting worse homeowners residing in common interest communities are struggling to pay their monthly assessment fees. As a result, many property owners are unable to pay their fees and are accumulating monthly debts. Homeowners associations are faced with difficult choices of how to keep the community alive but also keep members in their homes. In many states, homeowners associations are pursuing non-judicial foreclosure against property owners who have not paid their assessment fees. Property owners are outraged because they are at risk for losing their primary residence and largest investment. Legislatures in different states have reacted by enacting laws that limit the power of homeowners associations to pursue foreclosure. First, this article will explore the law governing common interest communities and homeowners associations. Second, this article will address and criticize various state responses to this problem. Finally, this article will propose a solution that attempts to address the concerns of the homeowners associations and their members. [More]

I. INTRODUCTION

The nationwide credit crisis has made the “American Dream” unattainable to most citizens. With lenders instituting rigorous requirements making qualifying for mortgages nearly impossible. The record breaking foreclosures and unemployment have added fuel to the fire, putting pressure on homeowners to reduce their asking prices. Many owners have been forced to sell at far below market value, accepting a large loss on properties that when purchased had high potential for profitability. However, the resurgence of lease-option agreements, especially in areas where foreclosure rates are high, has sparked hope for many sellers and buyers. [1] [More]

I. Introduction

A key battle over America’s healthcare future is being fought in one of the most unlikeliest of places: Urbana, Illinois. Scheduled for argument in front of the Illinois Supreme Court in mid-2009, Provena Covenant Medical Center v. Department of Revenue is poised to set the bar regarding the tax exempt status of nonprofit hospitals.[1] Nonprofit hospitals, such as Provena, account for near sixty percent of the hospitals in the U.S., while the others are either for-profit or government-owned.[2] Oddly, these nonprofit hospitals are actually faring better than their for-profit counterparts. Seventy-seven percent of the 2033 U.S. nonprofit hospitals are “in the black”, while sixty-one percent of for-profit hospitals are profitable.[3] One of the reasons for such high success rates is the ability of non-profit hospitals to receive significant tax exemptions. The Congressional Budget Office reported in 2006 that nonprofit hospitals receive an estimated $12.6 billion in annual tax exemptions on top of the $32 billion in federal, state and local subsidies the hospital industry receives each year.[4] Given such figures, it is not surprising that many hospitals do not make up for the exemptions they receive with the charitable services they provide. This article delves into the federal income tax code applications for nonprofit hospitals and resulting litigation.

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I. Background

Detroit has been working hard to revive the city and bring residential growth to the downtown area. [1] Millions of dollars have gone into renovating historic buildings, creating new public transportation, reviving the riverfront and building residential lofts in the Central Business District area. [2] Detroit wants to prove that, “the growing population can support and sustain retail and grocery development,” for its current and future residents. [3] New casinos and stadiums have also enhanced the city’s cultural atmosphere while attracting a wave of young professionals. [4] Issues will arise, however, when the city tries to achieve this vision of a “better Detroit” by imposing ordinances and regulations on businesses that it deems problematic to their ideal. In particular, the city of Detroit has targeted the adult entertainment business as an industry they would like to see zoned out.

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Despite Americans’ preference towards the suburb in the later half of the twentieth century, our nation is currently poised to regret the very expansionist zest that drew it away from the urban core. With the fluctuating price of gas and the limited public transportation alternatives, suburban Americans are forced to devote an ever-growing portion of their income and time to surviving their daily commutes. [2] The issue confronting policymakers today is whether to realign current residential settlement patterns or to vastly improve public transportation within suburbs. This article discusses some of the possible means available for accomplishing the latter. [More]