Homeowners feel run over by tollway
Say they’re being low-balled in making way for I-57/I-294 interchange
Nathaniel Humes is planning to join his wife, Arvis, in retirement next month.
“We have worked 100 years between the two of us,” he said.
So getting kicked out of their Posen home and starting over somewhere else to make room for a tollway ramp isn’t something they believe they deserve at this stage of their lives.
Neighbor Rodney Lane doesn’t want to go back to Square One in terms of home ownership, either. Ditto for the Bells, two doors down from Lane.
But their houses, and those of about 300 neighbors, stand where a highway ramp linking Interstate 57 to the Tri-State Tollway soon will be constructed. And while the Illinois State Toll Highway Authority will pay all of them for their properties, none of the residents will be moving to Easy Street.
Many, in fact, believe they are being ripped off by the tollway, which as a state agency wields the power to acquire land for the “common good” through eminent domain or condemnation.
The Humeses, Lanes and Bells, all of the 14900 block of California Avenue, know their homes’ days are numbered. But they also know they want more than they are being offered by the tollway, which after decades of planning is moving forward with the construction of the interchange.
“We’re being low-balled,” said Lane, who lives on the south end of the block, a culde-sac that is a stone’s throw from the northbound lanes of I-294.
The Bells were told their home, which cost them $225,000 seven years ago, is worth $155,000. The Humeses’ dwelling, for which they paid $257,000, is worth $175,000, an assessor told them. Lane and his wife are waiting for their offer after meeting with tollway representatives on July 12.
The tanking of the housing market depressed prices just about everywhere, but for those living in the footprint of the planned interchange, the difference is the fall in equity becomes a real loss instead of a paper loss as soon as the forced sale takes place. Those under water on their mortgages or who owe close to what the tollway pays them could be left without a down payment needed to move into a similar home.
Helping hand?
The Toll Highway Act that governs the scenario includes some protection for homeowners, and by law, the tollway will pay up to $25,000 whenever the cost of a replacement dwelling for a displaced resident is more than what the tollway paid to take the resident’s home. It also typically will pay off the balances on mortgages that are under water, tollway spokeswoman Wendy Abrams said. Relocation benefits are available as well.
But tollway officials can’t say for certain what will happen if a resident doesn’t have a down payment for another home after the tollway acquires their property.
“It’s hard to answer that question because every relocation is different and each homeowner has a different financial situation,” Abrams wrote in an email. “What we can say is that the Uniform Relocation Act ensures that all homeowners are treated fairly and consistently and that we work with each of them on a case-by-case basis and follow the protections for homeowners that are outlined in the law. Each owner occupant that qualifies is provided a relocation housing payment pursuant to (the law).”
So far, trust is in short supply. Lane and John Bell already have talked about retaining lawyers.
Lane has been in his home for seven years, loves it and takes good care of it, as evidenced by the shiny, scratchfree wood floors.
He paid $200,000 to build the house seven years ago, and added a $15,000 garage two years ago. He believes if his home were in another town where there wasn’t a threat of a highway ramp being built, it would be worth about $300,000 in a good economy.
But he expects the offer from the tollway to be less than what he paid for the house, so he plans to stay “until a judge orders me out.”
“All I know is I bought a house seven years ago and now they want me to leave,” Lane said. “And they’re acting like they’re doing me a favor. The only losers here are the homeowners. We’re not looking for $1 million or to walk away with a pocketful of money. We just want enough to put a down payment on a new home.”
The clock is ticking
The interchange project is part of a 15-year, $12 billion capital plan largely funded by the nearly 100 percent increase in toll rates that went into effect earlier this year.
The I-294/I-57 site is one of two points in the nation where interstates cross but do not connect, according to the tollway. It says the interchange will accommodate 76,000 vehicles per day and save drivers $4 million annually in fuel consumption.
Work for a ramp already has begun at 147th Street, near the southbound lanes. It’s just a matter of time be- fore wrecking balls are swinging at the home, sweet homes in the project footprint.
The Humeses said they got a letter June 5 saying they must sell their house by Aug. 20 and leave by Sept. 19 or face daily fees and an eviction lawsuit from Illinois Attorney General Lisa Madigan.
“It’s horrifying for someone to tell you they can waltz in here and take your home,” Arvis Humes said.
She said a $175,000 payout would cover the remainder of their mortgage but leave them without a house and nothing to show for it.
“When the government can get the little man and step on him, that’s not right,” Nathaniel Humes said.
The imminent demolition comes at a bad time for the couple. Nathaniel, a Navy veteran, is retiring as a Merchandise Mart security officer in August. Arvis retired two years ago.
“We’re at the prime of our old age now,” Nathaniel said. “Why do we have to go through this? Now it’s our time to say, ‘Job well done.’ ”
Determining prices
Abrams said the tollway’s offers for properties are formulated after a third-party appraiser “arrives at an independent, objective value for the property.”
The tollway has to acquire as many 320 parcels for the project. So far, it has two, she said Friday.
After an appraisal is reviewed and approved by an independent appraiser, the tollway makes a formal written offer to the owner, not to be less than the appraised value, she said.
A negotiator meets with the owners to explain the offer, and there’s a 60-day period for the sides to negotiate and try to reach an agreement. If none is reached, the tollway can file a condemnation suit to acquire the property, Abrams said.
Abrams said residents “are invited to participate in the valuation process” and “encouraged to accompany the appraiser during the inspection of the property.”
Bell said he and his wife Rosadelia, who have a 9-month-old daughter, “are pretty (ticked) off about the situation,” which for them includes an offer they said is $70,000 below their purchase price.
“The market values have plummeted and many of us are under water in our mortgages. What they’re offering does not provide us just compensation in trying to locate the house of our choice,” John Bell said.
Bell said that since the tollway had talked about the interchange for decades, the homes probably should not have been built there in the first place.
“I understand eminent domain,” he said, ”but we shouldn’t be the casualties of this war.”