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35 ILCS 200/18-173
(35 ILCS 200/18-173)
Housing opportunity area abatement program.
(a) For the purpose of promoting access to housing near work and in order to
promote economic diversity throughout Illinois and to alleviate the
of low-income households in areas of high poverty, a
housing opportunity area tax abatement program is created.
(b) As used in this Section:
"Housing authority" means either a housing authority created under the
Housing Authorities Act or other government agency that is authorized by the
United States government
under the United States Housing Act of 1937 to administer a housing choice
program, or the authorized agent of such a housing authority that is authorized
act upon that authority's behalf.
"Housing choice voucher" means a tenant voucher issued by a housing authority
under Section 8 of the United States Housing Act of 1937 and a tenant voucher converted to a project-based voucher by a housing authority.
"Housing opportunity area" means a census tract where less than 10% of the
residents live below the poverty level, as defined by the United States
government and determined by the most recent United States census, that is
located within a qualified township, except for census tracts located within any township that is located wholly within a municipality with 1,000,000 or more inhabitants. A census tract that is located within a township that is located wholly within a municipality with 1,000,000 or more inhabitants is considered a housing opportunity area if less than 12% of the residents of the census tract live below the poverty level.
"Housing opportunity unit" means a dwelling unit located in residential
property that is located in a housing opportunity area, that is owned by
the applicant, and that is rented to and occupied by a tenant who is
a housing choice voucher program administered by a housing authority as of
January 1st of the tax year for which the application is made.
"Qualified units" means the number of housing opportunity units located in
the property with the limitation that no more than 2 units or 20% of
the total units contained within the property, whichever is greater, may be
considered qualified units. Further, no unit may be considered qualified unless
the property in which it is contained is in substantial compliance with local
building codes, and, moreover, no unit may be considered qualified unless it
meets the United States Department of Housing and Urban Development's housing
standards as of the most recent housing authority inspection.
"Qualified township" means a township located within a county with 200,000 or
more inhabitants whose tax capacity exceeds 80% of the average tax capacity of
the county in which it is located, except for townships located within a county
with 3,000,000 or more inhabitants, where a qualified township means a township
whose tax capacity exceeds 115% of the average tax capacity of the county
except for townships located wholly within a municipality with 1,000,000 or
more inhabitants. All townships located wholly within a municipality with
1,000,000 or more inhabitants are considered qualified townships.
"Tax capacity" means the equalized assessed value of all taxable real estate
located within a township or county divided by the total population of that
township or county.
(c) The owner of property located within a housing opportunity area who has
a housing choice voucher contract with a housing authority may apply for a
housing opportunity area tax abatement by annually submitting an application to
the housing authority that administers the housing choice voucher contract. The
application must include the number of housing opportunity units as well as the
total number of dwelling units contained within the property. The owner must,
under oath, self-certify as to the total number of dwelling units in the
property and must self-certify that the property is in substantial compliance
with local building codes. The housing
authority shall annually determine the number of qualified units located within
each property for which an application is made.
The housing authority shall establish rules and procedures governing the
application processes and may charge an application fee. The county clerk may
applications to determine that the properties subject
to the tax abatement meet the requirements of this Section. The
determination of eligibility of a property for the housing opportunity area
abatement shall be
made annually; however, no property may receive an abatement for more than 10
(d) The housing authority shall determine housing opportunity areas within
its service area and annually deliver to the county clerk, in a manner
determined by the county clerk, a list of all properties containing qualified
units within that service area by December 31st of the tax year for which the
property is eligible for abatement; the list shall include the number of
qualified units and the total number of dwelling units for each property.
The county clerk shall deliver annually to a housing authority, upon
that housing authority's request, the most recent available equalized assessed
value for the county as a whole and for those taxing districts and townships so
specified by the requesting housing authority.
(e) The county clerk shall abate the tax attributed to a portion of the
property determined to be eligible for a housing opportunity area abatement.
The portion eligible for abatement shall be determined by reducing the
equalized assessment value by a percentage calculated using the following
formula: 19% of the equalized assessed value of the property
multiplied by a fraction where the numerator is the number of
qualified units and denominator is the total number of dwelling units
located within the property.
(f) Any municipality, except for municipalities with 1,000,000 or more
inhabitants, may annually petition the county clerk
to be excluded from a housing opportunity area if it is able to demonstrate
that more than 2.5% of the total residential units located within that
municipality are occupied by tenants under the housing choice voucher program.
Properties located within an excluded municipality shall not be eligible for
the housing opportunity area abatement for the tax year in which the petition
(g) Applicability. This Section applies to tax years 2004 through 2024, unless extended by law.
(Source: P.A. 98-957, eff. 8-15-14.)