Realtors oppose teardown fee plan

Word that Rolling Meadows may impose a fee of as much as $5,000 on teardowns has prompted a group representing Northwest suburban real estate agents to prepare to fight what it dubs a "teardown tax."

City officials next month plan to discuss imposing a $1,500 fee for homes that are completely demolished to make way for larger homes. Leaders say replacing the city's post-World War II homes can change the character of the neighborhood.

A city committee looking at maintaining affordable housing in Rolling Meadows has suggested increasing the proposed fee to $5,000.

Jeff Metzger, government affairs director for the Realtor Association of Northwest Chicagoland, said the fee amounts to a tax. He questions how setting a fee would encourage affordable housing.

"We think property owners should have the right to do whatever they want with their property," Metzger said.

A person who razes a home to build a new one might not necessarily be building a larger one, he added.

Metzger said a newer home that sells for more on the market also improves the community and adds property taxes to the city's coffers.

City officials pushing for the fee, which will be formally discussed by aldermen next month, disagree.

"The increase in property values is precisely the phenomenon that keeps middle-class professionals and young families from being able to buy a home," said a report from the city's affordable housing committee.