Ordinance Passed Requiring Home Flippers to Post $10K Bond for Renovations

The Evergreen Park Village Board unanimously passed an ordinance that would require homebuyers to post a $10,000 cash bond before permits are issued for home renovations.

“We have had an influx of homes bought within the village in the past several months by large companies that don’t reside in Evergreen Park,” Mayor Jim Sexton said during Monday’s village board meeting. “They don’t reside in Evergreen Park. Their intention is to buy homes, fix them and rent them.”

The $10,000 bond applies to any residential building that has been vacant prior to purchase and where the homebuyer does not plan to live after rehabilitation is completed. Residential buildings which are substantially being rehabilitated for sale or rent fall under this category.

Sexton said the ordinance ensures that home rehabs are being done properly and completed in a timely manner.

“A lot of people are coming into town to rehab and rent homes,” the mayor said. “We think this gives them more of an investment, if not temporary, into the community.”

For residential dwellings that are occupied by the owner and not vacant prior to the building permit application, the cash bond is $500 where the amount of construction work being permitted is $5,000 or more. The cash bond is $250 for work less than $5,000.

Additional plumbing and/or electrical bonds of $500 for each are also required for owner-occupied residential buildings.

Cash bonds are returned 30 days after the certificate of occupancy is issued, subtracting any fines or payment for damages incurred to village property, or if modifications, such as curb cuts, are made in the public way.

Sexton said the ordinance will be applied at the village building commissioner’s discretion.

“Future tenants are well suited because of the bond. We’re not here to see flippers make money,” the mayor said. “What it’s probably going to do is raise the value of the neighborhood.”