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91_HB4074
LRB9112134STsb
1 AN ACT concerning housing affordability.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Partnership for Home Ownership Act.
6 Section 5. Purposes. The purposes of this Act are:
7 (a) to expand home ownership opportunities to working
8 individuals and families;
9 (b) to encourage employers, counties, and municipalities
10 to invest in employer-assisted housing;
11 (c) to provide matching grants to employers, counties,
12 municipalities, and nonprofit housing organizations engaged
13 in employer-assisted housing.
14 Section 10. Definitions. In this Act:
15 "Authority" means the Illinois Housing Development
16 Authority.
17 "County" means any county within the State of Illinois.
18 "Employee" means a salaried or hourly individual who
19 works for an employer and whose median household income does
20 not exceed 120% of the area median income.
21 "Employer" means a business with operations in the State
22 of Illinois, including private, nonprofit, or governmental.
23 "Employer-assisted housing" means a program through which
24 employers assist their employees in acquiring homes in close
25 proximity to their jobs.
26 "Median income" means the United States Department of
27 Housing and Urban Development Area median income.
28 "Municipality" means any city, village, or incorporated
29 town within the State of Illinois.
30 "Nonprofit" or "nonprofit housing organization" means any
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1 organization that the Internal Revenue Service of the United
2 States Department of the Treasury has ruled is exempt from
3 income taxation under paragraphs (3), (4), or (5) of
4 subsection (c) of Section 501 of the Internal Revenue Code
5 and has as a stated purpose to produce, maintain, operate, or
6 promote affordable housing.
7 Section 15. Authority powers.
8 (a) The Authority is authorized to make grants to
9 employers, municipalities, counties, and nonprofit housing
10 organizations to develop and implement employer-assisted
11 housing programs for work forces throughout the State.
12 (b) The Authority shall enact rules and regulations
13 establishing standards and procedures for determining
14 eligibility for these grants, regulating the use of funds
15 under these grants, and periodically reporting the results
16 and impacts of activities funded by these grants.
17 (c) The Authority may work with stakeholders to develop
18 criteria to attract and evaluate proposals from employers,
19 housing agencies, counties, or municipalities, or any
20 combination of these.
21 (d) The Authority may target programs that benefit
22 employees earning less than 100% of the area median income.
23 Section 20. Matching funds. Grants may be used to match
24 employer investments toward housing resources for
25 participating employees. Employer investments may include,
26 but are not limited to:
27 (a) Down payment assistance. The Authority shall match,
28 at some percentage, money provided by the employer to the
29 employee for the purchase of a home.
30 (b) Contributions to second mortgage pools, which are low
31 interest loan programs accessible to qualified individuals
32 that assist in the purchase of a home. The Authority may set
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1 standards for eligible second mortgage pools. The Authority
2 shall match, at some percentage, employer contributions to
3 second mortgage pools.
4 (c) Mortgage guarantee programs. The Authority shall
5 match, at some percentage, employer contributions toward
6 repayment of any loans that default which are secured by an
7 employee and guaranteed by the employer.
8 (d) Savings plans such as Individual Development
9 Accounts. The Authority shall match, at some percentage,
10 contributions by employers to employee savings plans
11 designated for purchase of a home.
12 (e) Rent subsidy programs for eligible employees. While
13 employees are saving and preparing for home ownership, the
14 employer may choose to subsidize the rental of housing close
15 to work. The Authority shall match, at some percentage,
16 employer contributions toward rental payments.
17 Section 25. Funds for administration and nonprofit
18 organizations.
19 (a) Grants authorized under Section 15 may be used to
20 support administration of employer-assisted housing programs
21 and technical assistance.
22 (b) Nonprofit housing organizations are eligible for
23 funds for, but not limited to, the following: (i) to provide
24 program administration to the employers; (ii) to provide
25 technical assistance to home ownership counseling education
26 to the employees of participating employers for not more than
27 2 years at a time. Nonprofit grants shall not be greater than
28 20% of total employer-assisted housing program costs for the
29 participating employer. To be eligible for funding, the
30 nonprofit housing organization must demonstrate employer
31 interest in participating in an employer-assisted housing
32 program.
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1 (c) Municipalities and counties are eligible to receive
2 grants authorized by Section 15 if:
3 (1) the municipality or county is acting as an agent
4 of the State in promoting employer-assisted housing among
5 employers in their district and in compliance with
6 Authority-established eligibility criteria, and
7 (2) the municipality or county has demonstrated
8 employer interest in participating in an
9 employer-assisted program, or the municipality or county
10 is acting in the capacity of employer and providing
11 employer-assisted housing services to its work force.