093_HB0860sam001

 










                                     LRB093 05730 SJM 15558 a

 1                     AMENDMENT TO HOUSE BILL 860

 2        AMENDMENT NO.     .  Amend House Bill  860  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section 5.  The Property Tax Code is amended by changing
 5    Sections 10-235, 10-245, and 10-250 as follows:

 6        (35 ILCS 200/10-235)
 7        Sec.  10-235.  Section  515  Low-income  housing  project
 8    valuation policy; intent. It is the policy of this State that
 9    low-income  housing  projects  receiving a low-income housing
10    tax credit under Section 42  of  the  Internal  Revenue  Code
11    under  Section 515 of the federal Housing Act shall be valued
12    at 33 and one-third percent of the fair market value of their
13    economic productivity to the owners of the projects  to  help
14    insure  that  their  valuation for property taxation does not
15    result in taxes so high that rent levels must  be  raised  to
16    cover this project expense, which can cause excess vacancies,
17    project  loan  defaults,  and eventual loss of rental housing
18    facilities  for  those  most  in  need  of  them,  low-income
19    families and the elderly.  It is the  intent  of  this  State
20    that  the  valuation required by this Division is the closest
21    representation of cash value  required  by  law  and  is  the
22    method established as proper and fair.
 
                            -2-      LRB093 05730 SJM 15558 a
 1    (Source: P.A. 91-651, eff. 1-1-00; 92-16, eff. 6-28-01.)

 2        (35 ILCS 200/10-245)
 3        Sec.   10-245.   Method   of  valuation  of  Section  515
 4    low-income housing projects.   Notwithstanding  Section  1-55
 5    and except in counties with a population of more than 200,000
 6    that  classify  property  for  the  purposes  of taxation, to
 7    determine 33 and one-third percent of the fair cash value  of
 8    any  Section  515  low-income  housing  project  receiving  a
 9    low-income  housing  tax  credit  under  Section  42  of  the
10    Internal  Revenue  Code,  in  assessing  the  project,  local
11    assessment  officers must consider the actual or probable net
12    operating income attributable to the project, using a vacancy
13    rate of not more than 5%, capitalized at normal market rates.
14    The interest rate to be used in developing the normal  market
15    value  capitalization  rate  shall  be  one that reflects the
16    prevailing cost of cash for other types  of  commercial  real
17    estate  in  the  geographic  market  in  which the low-income
18    housing Section 515 project is located.
19    (Source: P.A. 91-651, eff. 1-1-00; 91-884, eff. 6-30-00.)

20        (35 ILCS 200/10-250)
21        Sec. 10-250. Certification procedure and  effective  date
22    of implementation.
23        (a)  After   (i)   an   application  for  a  Section  515
24    low-income housing project  certificate  is  filed  with  the
25    State Director of the United States Department of Agriculture
26    Rural  Development  Office in a manner and form prescribed in
27    regulations issued by the office and (ii) the certificate  is
28    issued   certifying   that  the  housing  is  a  Section  515
29    low-income housing project as defined in Section  2  of  this
30    Act,  the  certificate  must  be presented to the appropriate
31    local assessment officer to receive the  property  assessment
32    valuation  under  this Division. The local assessment officer
 
                            -3-      LRB093 05730 SJM 15558 a
 1    must assess the property according to this Act. Beginning  on
 2    January  1, 2000 and through taxable year 2003, all certified
 3    Section 515 low-income housing projects shall be assessed  in
 4    accordance with Section 10-245.
 5        (b)  Beginning  with  taxable  year  2004, all low-income
 6    housing projects receiving a low-income  housing  tax  credit
 7    under  Section  42  of  the  Internal  Revenue  Code shall be
 8    assessed in accordance with Section 10-245 if  the  owner  or
 9    owners  of  the  low-income  housing  project  certify to the
10    appropriate local assessment officer that the owner or  owner
11    is receiving a low-income housing tax credit under Section 42
12    of the Internal Revenue Code for the property.
13    (Source: P.A. 91-651, eff. 1-1-00; 91-884, eff. 6-30-00.)

14        Section  99.  Effective  date.   This Act takes effect on
15    January 1, 2004.".