Sen. Iris Y. Martinez

Filed: 3/5/2015

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 742

2    AMENDMENT NO. ______. Amend Senate Bill 742 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Rental Housing Support Program Act is
5amended by changing Sections 7, 10, and 25 as follows:
 
6    (310 ILCS 105/7)
7    Sec. 7. Definitions. In this Act:
8    "Annual receipts" means revenue derived from the Rental
9Housing Support Program State surcharge from July 1 to June 30.
10    "Authority" means the Illinois Housing Development
11Authority.
12    "Developer" means any entity that receives a grant under
13Section 20.
14    "Program" means the Rental Housing Support Program.
15    "Real estate-related document" means any recorded document
16that affects an interest in real property excluding documents

 

 

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1which solely affect or relate to an easement for water, sewer,
2electricity, gas, telephone or other public service.
3    "Unit" means a rental apartment unit receiving a subsidy by
4means of a grant under this Act. "Unit" does not include
5housing units intended as transitional or temporary housing.
6(Source: P.A. 94-118, eff. 7-5-05.)
 
7    (310 ILCS 105/10)
8    Sec. 10. Creation of Program and distribution of funds.
9    (a) The Rental Housing Support Program is created within
10the Illinois Housing Development Authority. The Authority
11shall administer the Program program and adopt rules for its
12implementation.
13    (b) The Authority shall distribute amounts for the Program
14solely from annual receipts on deposit in the Rental Housing
15Support Program Fund that are appropriated in each year for
16distribution by the Authority for the Program, and not from any
17other source of funds for the Authority, The Authority shall
18distribute amounts appropriated for the Program from the Rental
19Housing Support Program Fund and any other appropriations
20provided for the Program as follows:
21        (1) A proportionate share of annual receipts on deposit
22    appropriated to the Fund each year the annual
23    appropriation, as determined under subsection (d) of
24    Section 15 of this Act, shall be distributed to
25    municipalities with a population greater than 2,000,000.

 

 

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1    Those municipalities shall use at least 10% of those funds
2    in accordance with Section 20 of this Act, and all
3    provisions governing the Authority's actions under Section
4    20 shall govern the actions of the corporate authorities of
5    a municipality under this Section. As to the balance of the
6    annual distribution, the municipality shall designate a
7    non-profit organization that meets the specific criteria
8    set forth in Section 25 of this Act to serve as the "local
9    administering agency" under Section 15 of this Act.
10        (2) Of the remaining annual receipts on deposit
11    appropriated to the Fund each year appropriation after the
12    distribution in paragraph (1) of this subsection, the
13    Authority shall designate at least 10% for the purposes of
14    Section 20 of this Act in areas of the State not covered
15    under paragraph (1) of this subsection.
16        (3) The remaining annual receipts on deposit
17    appropriated to the Fund each year appropriation after the
18    distributions in paragraphs (1) and (2) of this subsection
19    shall be distributed according to Section 15 of this Act in
20    areas of the State not covered under paragraph (1) of this
21    subsection.
22(Source: P.A. 94-118, eff. 7-5-05.)
 
23    (310 ILCS 105/25)
24    Sec. 25. Criteria for awarding grants. The Authority shall
25adopt rules to govern the awarding of grants and the continuing

 

 

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1eligibility for grants under Sections 15 and 20. Requests for
2proposals under Section 20 must specify that proposals must
3satisfy these rules. The rules must contain and be consistent
4with, but need not be limited to, the following criteria:
5        (1) Eligibility for tenancy in the units supported by
6    grants to local administering agencies must be limited to
7    households with gross income at or below 30% of the median
8    family income for the area in which the grant will be made.
9    Fifty percent of the units that are supported by any grant
10    must be set aside for households whose income is at or
11    below 15% of the area median family income for the area in
12    which the grant will be made, provided that local
13    administering agencies may negotiate flexibility in this
14    set-aside with the Authority if they demonstrate that they
15    have been unable to locate sufficient tenants in this lower
16    income range. Income eligibility for units supported by
17    grants to local administering agencies must be verified
18    annually by landlords and submitted to local administering
19    agencies. Tenants must have sufficient income to be able to
20    afford the tenant's share of the rent. For grants awarded
21    under Section 20, eligibility for tenancy in units
22    supported by grants must be limited to households with a
23    gross income at or below 30% of area median family income
24    for the area in which the grant will be made. Fifty percent
25    of the units that are supported by any grant must be set
26    aside for households whose income is at or below 15% of the

 

 

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1    median family income for the area in which the grant will
2    be made, provided that developers may negotiate
3    flexibility in this set-aside with the Authority or
4    municipality as defined in subsection (b) of Section 10 if
5    it demonstrates that it has been unable to locate
6    sufficient tenants in this lower income range. The
7    Authority shall determine what sources qualify as a
8    tenant's income.
9        (2) Local administering agencies must include
10    2-bedroom, 3-bedroom, and 4-bedroom units among those
11    intended to be supported by grants under the Program
12    program. In grants under Section 15, the precise number of
13    these units among all the units intended to be supported by
14    a grant must be based on need in the community for larger
15    units and other factors that the Authority specifies in
16    rules. The local administering agency must specify the
17    basis for the numbers of these units that are proposed for
18    support under a grant. Local administering agencies must
19    make a good faith effort to comply with this allocation of
20    unit sizes. In grants awarded under Section 20, developers
21    and the Authority or municipality, as defined in subsection
22    (b) of Section 10, shall negotiate the numbers and sizes of
23    units to be built in a project and supported by the grant.
24        (3) Under grants awarded under Section 15, local
25    administering agencies must enter into a payment contract
26    with the landlord that defines the method of payment and

 

 

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1    must pay subsidies to landlords on a quarterly basis and in
2    advance of the quarter paid for.
3        (4) Local administering agencies and developers must
4    specify how vacancies in units supported by a grant must be
5    advertised and they must include provisions for outreach to
6    local homeless shelters, organizations that work with
7    people with disabilities, and others interested in
8    affordable housing.
9        (5) The local administering agency or developer must
10    establish a schedule for the tenant's rental obligation for
11    units supported by a grant. The tenant's share of the rent
12    must be a flat amount, calculated annually, based on the
13    size of the unit and the household's income category. In
14    establishing the schedule for the tenant's rental
15    obligation, the local administering agency or developer
16    must use 30% of gross income within an income range as a
17    guide, and it may charge an additional or lesser amount.
18        (6) The amount of the subsidy provided under a grant
19    for a unit must be the difference between the amount of the
20    tenant's obligation and the total amount of rent for the
21    unit. The total amount of rent for the unit must be
22    negotiated between the local administering authority and
23    the landlord under Section 15, or between the Authority or
24    municipality, as defined in subsection (b) of Section 10,
25    and the developer under Section 20, using comparable rents
26    for units of comparable size and condition in the

 

 

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1    surrounding community as a guideline.
2        (7) Local administering agencies and developers,
3    pursuant to criteria the Authority develops in rules, must
4    ensure that there are procedures in place to maintain the
5    safety and habitability of units supported under grants.
6    Local administering agencies must inspect units before
7    supporting them under a grant awarded under Section 15.
8        (8) Local administering agencies must provide or
9    ensure that tenants are provided with a "bill of rights"
10    with their lease setting forth local landlord-tenant laws
11    and procedures and contact information for the local
12    administering agency.
13        (9) A local administering agency must create a plan
14    detailing a process for helping to provide information,
15    when necessary, on how to access education, training, and
16    other supportive services to tenants living in units
17    supported under the grant. The plan must be submitted as a
18    part of the administering agency's proposal to the
19    Authority required under Section 15.
20        (10) Local administering agencies and developers may
21    not use funding under the grant to develop or support
22    housing that requires that a tenant has a particular
23    diagnosis or type of disability as a condition of
24    eligibility for occupancy unless the requirement is
25    mandated by another funding source for the housing. Local
26    administering agencies and developers may use grant

 

 

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1    funding to develop integrated housing opportunities for
2    persons with disabilities, but not housing restricted to a
3    specific disability type.
4        (11) In order to plan for periodic fluctuations in
5    annual receipts on deposit appropriated to the Fund each
6    year program revenue, the Authority shall establish by rule
7    a mechanism for establishing a reserve fund and the level
8    of funding that shall be held in reserve either by the
9    Authority or by local administering agencies.
10        (12) The Authority shall perform annual
11    reconciliations of all distributions made in connection
12    with the Program and may offset future distributions to
13    balance geographic distribution requirements of this Act.
14(Source: P.A. 97-892, eff. 8-3-12.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".