On May, 11, 2009 the Cook County Assessor announced that residential properties not being reassessed this year will receive a market adjustment reflecting the real estate downturn. This action by the Cook County Assessor means that residential properties in 30 suburban townships will receive reductions in their assessed value for 2009.

The Assessor is making this market adjustment to all townships in Cook County due to the extraordinary high foreclosure rate and decline in sale prices of real estate that the county has seen recently. Normally, properties in Cook County are assessed every three years and receive notices only then. The City of Chicago is set for 2009 to have its properties reassessed. The north suburbs are not scheduled to be reassessed until 2010; and the south and west suburbs will be reassessed in 2011. However, the Assessor after review of market sales and foreclosure data determined these townships should not have to wait until their next reassessment for the impact to be reflected.

As part of this step, the Assessor's Office will mail notices to every property owner in Cook County this year. This year, each suburban township will receive an adjustment percentage, which will lower the existing assessed values of all residential properties in that township. The reductions will likely range from 4% to 15%.

Areas hit hard by foreclosures and market drops will see the biggest reductions. For example the first notices will be sent to River Forest Township latter in May and will reflect a 5% reduction for residences there. Cicero Township, burdened by a high foreclosure rate and a battered sales market, will receive a 15% reduction.

The market reductions come as the Assessor's Office is implementing the 10/25 Ordinance, a measure simplifying assessment levels passed by the County Board last year. Under the ordinance, the assessment level of residential properties is 10% of market value; for industrial and commercial properties, it is 25% of market value.

The market adjustment is being coordinated with the 2009 triennial reassessment of the city of Chicago. The Assessor's Office announced that the city reassessment notices will be mailed starting in June. Noting that some areas of the city will likely receive lower assessments because of market conditions, however, there are areas of the city that have maintained market strength.

Please keep in mind that this is only a summary of the recent announcement for the Cook County Assessor's Office. If you would like more details about this change, please do not hesitate to contact me. I could also assist you if you are having problems with IRS collections or other creditor problems. Please contact me at thughes@lavellelaw.com.