[ Search ] [ PDF text ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
92_HB6026 LRB9214175DJgc 1 AN ACT in relation to housing. 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 Rental Housing Support Program Act. 6 Section 5. Legislative findings and purpose. The General 7 Assembly finds that in many parts of this State, large 8 numbers of citizens are faced with the inability to secure 9 affordable rental housing. Due to either insufficient wages 10 or a shortage of affordable rental housing stock, or both, 11 many families have difficulty securing decent housing, are 12 subjected to overcrowding, pay too large a portion of their 13 total monthly income for housing and consequently suffer the 14 lack of other basic needs, live in substandard or unhealthy 15 housing, or experience chronic housing instability. 16 Instability and inadequacy in housing limits the 17 employability and productivity of many citizens, adversely 18 affects family health and stress levels, impedes children's 19 ability to learn, and produces corresponding drains on public 20 resources. It is the purpose of this Act to create a State 21 program to help localities address the need for decent 22 affordable rental housing. 23 Section 7. Definitions. In this Act: 24 "Authority" means the Illinois Housing Development 25 Authority. 26 "Program" means the Rental Housing Support Program. 27 Section 10. Creation of program. The Rental Housing 28 Support Program is created within the Illinois Housing 29 Development Authority. The Authority shall administer the -2- LRB9214175DJgc 1 program. 2 Section 15. Grants to local administering agencies. 3 (a) Under the program, the Authority shall make grants 4 to local administering agencies to provide subsidies to 5 landlords to enable the landlords to charge rent affordable 6 for low-income tenants. Grants shall also include an amount 7 for the operating expenses of local administering agencies. 8 (b) The Authority shall develop a request-for-proposals 9 process for soliciting proposals from local administering 10 agencies and for awarding grants. The request-for-proposals 11 process and the funded projects must be consistent with the 12 criteria set forth in Section 25 and with additional criteria 13 set forth by the Authority in rules implementing this Act. 14 (c) Local administering agencies may be local 15 governmental bodies, local housing authorities, or 16 not-for-profit organizations. The Authority shall set forth 17 in rules the financial and capacity requirements necessary 18 for an organization to qualify as a local administering 19 agency. 20 Section 20. Grants to developers. 21 (a) The Authority may award grants under the program 22 directly to developers of new affordable rental housing for 23 long-term operating support to enable the rent on such units 24 to be affordable. Developers of such new housing shall apply 25 directly to the Authority for this type of grant under the 26 program. 27 (b) The Authority shall prescribe by rule the 28 application requirements and the qualifications necessary for 29 a developer and a development to qualify for a grant under 30 the program. In any event, however, to qualify for a grant, 31 the development must satisfy the criteria set forth in 32 Section 25, unless waived by the Authority based on special -3- LRB9214175DJgc 1 circumstances and in furtherance of the purpose of the 2 program to increase the supply of affordable rental housing. 3 (c) The Authority may not use more than 10% of its funds 4 in any given year on grants under this Section. 5 Section 25. Criteria for awarding grants. The Authority 6 shall adopt rules to govern the awarding of grants and the 7 continuing eligibility for grants under Sections 15 and 20. 8 Requests for proposals under Section 20 must specify that 9 proposals must satisfy these rules. The rules must contain 10 and be consistent with, but need not be limited to, the 11 following criteria: 12 (1) Eligibility for tenancy in the units supported 13 by grants must be limited to households with gross income 14 at or below 30% of the area median income, determined by 15 the Authority using statistical data it deems to be 16 reliable and as specific as possible for the area in 17 which the grant will be made. Fifty percent of the units 18 that are supported by any grant must be set aside for 19 households whose income is at or below 15% of the area 20 median income, provided that localities and developers 21 may negotiate flexibility in this set-aside with the 22 Authority if they demonstrate that they have been unable 23 to locate sufficient tenants in this lower income range. 24 Tenants must have sufficient income to be able to afford 25 the tenant's share of the rent. 26 (2) Local administering authorities must include 27 2-bedroom, 3-bedroom, and 4-bedroom units among those 28 intended to be supported by grants under the program. In 29 grants under Section 15, the precise number of these 30 units among all the units intended to be supported by a 31 grant must be based on need in the community for larger 32 units and other factors that the Authority specifies in 33 rules. The local administering agency must specify the -4- LRB9214175DJgc 1 basis for the numbers of these units that are proposed 2 for support under a grant. Local administering agencies 3 must make a good faith effort to comply with this 4 allocation of unit sizes. In grants awarded under Section 5 20, developers and the Authority shall negotiate the 6 numbers and sizes of units to be built in a project and 7 supported by the grant. 8 (3) Under grants awarded under Section 15, local 9 administering authorities must pay subsidies to landlords 10 on a quarterly basis and in advance of the quarter paid 11 for. 12 (4) Local administering agencies and developers 13 must specify how vacancies in units supported by a grant 14 must be advertised, and with respect to each vacancy they 15 must include provisions for outreach to local homeless 16 shelters, organizations that work with people with 17 disabilities, and others interested in affordable 18 housing. 19 (5) The local administering agency or developer 20 must establish a schedule for the tenant's rental 21 obligation for units supported by a grant. The tenant's 22 share of the rent must be a flat amount based on the size 23 of the unit and the household's income category. In 24 establishing the schedule for the tenant's rental 25 obligation, the local administering agency or developer 26 must use 30% of gross income within an income range as a 27 guide, and it may charge an additional or lesser amount 28 depending on the size of the unit. 29 (6) The amount of the subsidy provided under a 30 grant for a unit must be the difference between the 31 amount of the tenant's obligation and the total amount of 32 rent for the unit. The total amount of rent for the unit 33 must be negotiated between the local administering 34 authority and the landlord under Section 15, or between -5- LRB9214175DJgc 1 the Authority and the developer under Section 20, based 2 on the operating expenses for the unit and using fair 3 market rent as a guideline. 4 (7) Local administering authorities and developers, 5 pursuant to criteria the Authority develops in rules, 6 must ensure that there are procedures in place to 7 maintain the safety and habitability of units supported 8 under grants according to local standards. Local 9 administering agencies must inspect units before 10 supporting them under a grant awarded under Section 15. 11 (8) Local administering agencies must provide or 12 ensure that tenants are provided with a "bill of rights" 13 with their lease setting forth local landlord-tenant laws 14 and procedures and contact information for the local 15 administering agency. Local administering agencies must 16 also provide tenants with a list of agencies that provide 17 supportive services to low-income people on a range of 18 issues.
[ Top ]