Investors ‘Exploiting’ Illinois’ Property Tax Law at Expense of Black, Latino Communities: Study

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Investors ‘Exploiting’ Illinois’ Property Tax Law at Expense of Black, Latino Communities: Study
France Dernières Nouvelles,France Actualités
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Thanks to a “little-known loophole,” hedge funds, private equity firms and real estate investors have “siphoned” approximately $280 million from schools, parks, libraries, fire departments and other government agencies between Sept. 2015 and Sept. 2022.

Private investors are exploiting an “arcane” Illinois law to profit from the property tax debt owed on thousands of properties, fueling disinvestment in communities that are home to Black and Latino residents, according to a new study from the Cook County Treasurer’s office.

That can result in profits of 54% in just three years, if the owner does not pay off the debt in full, according to the study. That makes Illinois “like no other state in the country,” where the law “allows tax buyers to easily and quickly undo a tax deal for trivial reasons, often getting all of their money back, including interest, fees and court costs,” according to the study.

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