Public Act 093-0727
Public Act 0727 93RD GENERAL ASSEMBLY
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Public Act 093-0727
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| SB2329 Enrolled |
LRB093 18462 DRJ 44174 b |
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| AN ACT in relation to housing.
| Be it enacted by the People of the State of Illinois, | represented in the General Assembly:
| Section 5. The Federally Subsidized Housing Preservation | Act is amended by
changing Sections 1, 3, 4, 5, 6, 7, 8, and | 10.1 as follows:
| (310 ILCS 60/1) (from Ch. 67 1/2, par. 1151)
| Sec. 1. Short title. This Act shall be known and may be | cited as
the Federally Assisted
Subsidized Housing | Preservation Act.
| (Source: P.A. 86-810.)
| (310 ILCS 60/3) (from Ch. 67 1/2, par. 1153)
| Sec. 3. Definitions. As used in this Act:
| (a) "IHDA" means the Illinois Housing Development | Authority.
| (b) (Blank).
"FmHA" means the Farmers Home Administration | or a local
housing
authority administering an FmHA program.
| (c) (Blank).
"HUD" means the United States Department of | Housing and
Urban
Development, or the Federal Housing | Administration or a local housing
authority administering a HUD | program.
| (d) "Owner" means the person, partnership, or corporation | that
holds title to an assisted housing development
is a
party | to a contract with HUD or FmHA providing for a mortgage, | mortgage
assistance, mortgage insurance, or rent subsidy; or | any spouse, employee,
agent, partner, master lessee, business | affiliate or associate, or
successor in interest of such | person, partnership or corporation, that
receives or demands | rent for the subsidized housing.
| (e) "Assisted housing" or "assisted housing development" | means a rental
housing
development, or a mixed use development |
| that includes rental housing, that receives government | assistance under any of the following
programs:
| (1) New construction, substantial rehabilitation, | moderate
rehabilitation, property disposition and loan | management set-aside programs, or
any other program | providing project-based
rental assistance, under Section 8 | of the United States Housing
Act of 1937, as amended.
| (2) The Below-Market-Interest-Rate Program under | Section
221(d)(3) of the National Housing Act.
| (3) Section 236 of the National Housing Act.
| (4) Section 202 of the National Housing Act.
| (5) Programs for rent supplement assistance under | Section
101 of the Housing and Urban Development Act of | 1965, as amended.
| (6) Programs under Section 514 or 515 of the Housing | Act of
1949.
| (7) Section 42 of the Internal Revenue Code.
| "Subsidized housing" means any housing or unit of housing | financed
by a loan or mortgage insured or held by HUD as | follows:
| (1) insured or held by HUD under Section 221(d)(3) of the | National
Housing Act and assisted under Section 101 of the | Housing and Urban
Development Act of 1965 or Section 8 of the | United States Housing Act of 1937;
| (2) insured or held by HUD and bears interest at a rate | determined under
the proviso of Section 221(d)(3) of the | National Housing Act;
| (3) insured, assisted or held by HUD under Section 236 of | the National
Housing Act;
| (4) insured or held by HUD under Section 514 or 515 of the | Housing Act of
1949; or
| (5) held by HUD and formerly insured under a program listed | in this
subsection (e).
| (f) "Tenant" means a tenant, subtenant, lessee, sublessee | or other
person entitled to possession, occupancy or benefits | of a rental unit
within the assisted
subsidized housing.
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| (g) "Tenant Association" means an association, corporation | or other
organization that represents at least a majority of | the tenants in the
assisted
subsidized housing building.
| (h) "Prepayment" means the payment in full or refinancing | of the
federally insured or federally held mortgage | indebtedness prior to its
original maturity date, or the | voluntary cancellation of mortgage
insurance, on an assisted | housing development described in paragraph
(2), (3), or (4) of | subsection (e) that would have the effect of
removing the | affordability restrictions applicable to the assisted housing | development under the programs described in paragraph (2), (3), | or (4) of subsection (e).
| (i) "Termination" means: | (1) the expiration or early termination of an assisted | housing development's participation in a federal subsidy | program for assisted housing described in paragraph (1) of | subsection (e), or | (2) the expiration or early termination of an assisted | housing development's affordability restrictions described | in Section 42(g) of the Internal Revenue Code for assisted | housing described in paragraph (7) of subsection (e),
when | that event results in an increase in tenant rents, a change | in the form of subsidy from project-based to tenant-based, | or a change in use of the assisted housing development to a | use other than rental housing.
| (j) "Affected public entities" means: the mayor of the city | in
which the assisted housing development is located or, if the
| development is located in an unincorporated area, the | chairperson of
the county board; the public
housing authority | in whose jurisdiction the assisted housing development is | located, if any; and IHDA.
| (k) "Affordability restrictions" means limits on rents | that owners may charge for occupancy of a rental unit in | assisted housing and limits on tenant income for persons or | families seeking to qualify as tenants in assisted housing.
| (Source: P.A. 86-810.)
|
| (310 ILCS 60/4) (from Ch. 67 1/2, par. 1154)
| Sec. 4. Notice of intent to sell.
| (a) An owner may not sell or otherwise dispose of
assisted
| subsidized housing, complete prepayment, or complete a | termination
unless, not less than 12
6 months before the | prepayment, termination, sale, or
disposal, the owner submits | to all tenants of the assisted
subsidized
housing and to all | affected public entities
IHDA a notice of intent to
complete | prepayment, complete termination, sell, or otherwise dispose
| of the property.
| (a-5) Every notice required under subsection (a) must | include the address
of
the
assisted housing, characteristics of | the property including the number of
units, and the
names and | addresses of the owners. The notice must also include the date | on
which
the
owner intends to sell, lease, complete prepayment, | complete termination, or otherwise dispose of the property, as | well as a detailed list of affordability restrictions | applicable to the property.
IHDA shall adopt rules concerning | the content, format, delivery, and
publication of such
notices.
| (b) Within 60 days after the date of the owner's notice | pursuant to
subsection (a), the tenants may notify the owner | that they have formed a
Tenant Association meeting the | requirements of this Act and shall designate
the name of its | representative or representatives in the notice.
The Tenant | Association may enter into an agreement with a not-for-profit
| corporation or private purchaser in which the not-for-profit
| corporation or private purchaser agrees to represent the | residents and
maintain the development in a manner that | preserves the housing development's
existing affordability | restrictions or that would qualify the housing development as | affordable housing as defined in the Illinois Affordable | Housing Act. The agreement must set forth the minimum length of | time that the affordability restrictions will be in effect. The | Tenant Association and individual tenants in the assisted | housing shall each have the right to bring an action for |
| specific performance or other injunctive relief for | enforcement of the agreement, and the agreement must contain | provisions to this effect along with such other remedies for | breach as the Tenant Association and the not-for-profit | corporation or private purchaser may agree. Once such an | agreement is entered into, the
not-for-profit corporation or | private purchaser shall assume all rights and
responsibilities | attributed to the Tenant Association under this Act.
| (Source: P.A. 86-810; 86-1352.)
| (310 ILCS 60/5) (from Ch. 67 1/2, par. 1155)
| Sec. 5. Offer for sale to Tenant Association. Within 60 | days after the
Tenant Association has complied with the
| requirements of Section 4, the owner shall, before selling, | leasing, completing prepayment, completing termination, or
| otherwise disposing of the
property, provide to the Tenant | Association a
bona fide offer for sale of the property which | shall contain the essential
terms of the sale, including, at a | minimum, the following: the
sales price; the terms of seller | financing, if any, including the amount,
the interest rate, and | amortization rate thereof; the terms of assumable
financing, if | any, including the amount, the interest rate, and the
| amortization rate thereof; and proposed improvements, if any, | to the
property to be made by the owner in connection with the | sale.
| (Source: P.A. 86-810.)
| (310 ILCS 60/6) (from Ch. 67 1/2, par. 1156)
| Sec. 6. Notice of intent to purchase.
| (a) The Tenant Association shall
notify the owner in | writing, within 90
30 days after the receipt of the
bona
fide | offer of sale, of its intent to purchase the assisted
| subsidized
housing.
| (b) The owner shall, after receiving a notice pursuant to | subsection
(a), comply with any reasonable request to make | documents available to the
Tenant Association, during normal |
| business hours at the owner's principal place
of
business | within 15 days of receiving such a request, including but not | limited
to: a
floor plan of the development; itemized lists of | monthly operating
expenses, capital expenditures in each of the | 2 preceding calendar years
and deferred maintenance costs; the | amount of project reserves; utility
consumption rates; copies | of financial and physical inspection reports filed
with | federal, State or local agencies; the most recent rent roll; a | list of
tenants; a list of vacant units; and a statement of the | vacancy rate at the
development for each of the 2 preceding | calendar years.
| (Source: P.A. 86-810.)
| (310 ILCS 60/7) (from Ch. 67 1/2, par. 1157)
| Sec. 7. Bona fide offer to purchase; contract.
| (a) The Tenant Association shall, within 90 days after it
| notifies the owner of its intent to purchase, provide the owner | with a bona
fide offer to purchase evidenced by a purchase | contract reflecting a sales
price and terms agreed to by the | parties or the sales price and terms
determined pursuant to | subsection (b) of this Section and an earnest
money deposit | equal to 5% of the bona fide offer to purchase.
| (b) If the parties are unable to agree to a sales price | within the first
60 days of the 90 day period specified in | subsection (a), the sale price of
the assisted
subsidized
| housing shall be based upon its fair market
value, based on its | highest and best use, without affordability restrictions, as
| determined by 2 independent appraisers qualified to perform | multi-family
housing appraisals. One appraiser shall be | selected and paid by the owner
and the other shall be selected | and paid by the Tenant Association. If the
appraisers fail to | agree upon a fair market value, the owner and the
Tenant | Association shall either jointly select and pay a third | appraiser whose
appraisal shall be binding, or agree to take an | average of
the 2 appraisals. All appraisers shall be MAI | certified. The
determination of the sales price pursuant to |
| this subsection shall be
completed within the 90 day period | specified in subsection (a) of this Section.
| (c) The Tenant Association shall agree to close on the sale | within 90
days from the date the parties sign the contract to | purchase.
| (Source: P.A. 86-810; 86-1352.)
| (310 ILCS 60/8) (from Ch. 67 1/2, par. 1158)
| Sec. 8. The provisions of this Act shall not apply to any | of the
following: a government taking by eminent domain or | negotiated purchase; a
forced sale pursuant to a foreclosure; | or a transfer by gift, devise or operation of law; or an | owner's sale or other disposition of assisted housing in a | manner pursuant to which the property after the sale or other | disposition continues to be assisted housing as defined in this | Act.
| (Source: P.A. 86-810.)
| (310 ILCS 60/10.1) (from Ch. 67 1/2, par. 1160.1)
| Sec. 10.1. Civil action against owner. The Tenant | Association, or one
or
more tenants in the
assisted
subsidized
| housing, may bring a civil action against an owner
who has
| violated this Act. An owner found to have violated any | provision of this
Act shall, in addition to any other damages, | pay a civil penalty to each
tenant in the assisted
subsidized
| housing in the amount of $500 per
tenant, and
shall also pay | the attorney's fees and costs incurred in bringing the action.
| (Source: P.A. 86-810; 86-1352)
| Section 99. Effective date. This Act takes effect upon | becoming law. |
Effective Date: 7/14/2004
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