103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3292

 

Introduced 2/17/2023, by Rep. Theresa Mah

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Limited-Equity Housing Cooperative Task Force Act. Provides that the purpose of the Act is to establish the Illinois Limited-Equity Housing Cooperative Task Force to collect data and qualitative experiences regarding the needs of limited-equity housing cooperatives with the goal of analyzing their potential to (i) increase the supply of affordable ownership housing across Illinois and (ii) further home ownership and build wealth among lower-income and moderate-income Illinoisans, especially those locked out of the traditional homeownership market. Provides that the Task Force is created within the Illinois Housing Development Authority to study: (1) opportunities to expand the number of limited-equity housing cooperatives statewide, including the number of properties that could be developed as limited-equity housing cooperatives; (2) the use of limited-equity housing cooperatives as a tool to create permanently affordable ownership housing; (3) the impact that substantial investments in limited-equity housing cooperatives would have on closing the racial wealth gap in Illinois; and other matters. Requires the Task Force to prepare and submit a final report, on or before December 31, 2024, to the Governor and the General Assembly making specific recommendations of legislative and budgetary action that supports the mission of limited-equity housing cooperatives to foster permanently affordable ownership housing and homeownership among lower-income and moderate-income Illinois residents. Contains provisions concerning Task Force membership; meetings; vacancies; and other matters. Provides that the Task Force is dissolved and the Act is repealed on December 31, 2024. Effective immediately.


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A BILL FOR

 

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1    AN ACT concerning housing.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Limited-Equity Cooperative Housing Task Force Act.
 
6    Section 5. Purposes. The purposes of this Act are to
7establish the Illinois Limited-Equity Housing Cooperative Task
8Force to collect data and qualitative experiences regarding
9the needs of limited-equity housing cooperatives with the goal
10of analyzing their potential to (i) increase the supply of
11affordable ownership housing across Illinois and (ii) further
12home ownership and build wealth among lower-income and
13moderate-income Illinoisans, especially those locked out of
14the traditional homeownership market.
 
15    Section 10. Findings. The General Assembly finds the
16following:
17        (1) Homeownership is the principal way families build
18    wealth, yet homeownership is most inaccessible to
19    communities of color in Illinois, where roughly 75% of
20    white families own their homes, but only 61% of Asian
21    families, 52% of Hispanic families, and 38% of Black
22    families are homeowners.

 

 

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1        (2) Private development into neighborhoods displaces
2    long-time residents by purchasing and demolishing older,
3    single-family homes at low costs in favor of luxury
4    housing, raising property taxes and rents for surrounding
5    homes.
6        (3) Limited-equity housing cooperatives curb
7    displacement and foster generational wealth by creating
8    opportunities for permanently affordable homeownership.
9        (4) Limited-equity housing cooperatives preserve
10    naturally occurring affordable housing by closing the
11    affordability gap so that low-to-moderate income
12    households can live in high opportunity neighborhoods.
13        (5) Limited-equity housing cooperatives can be a
14    powerful solution for homeowners facing delinquent
15    property taxes or other financial threats to continued
16    homeownership that keeps residents in their homes and
17    creates permanently affordable properties for future
18    buyers and long-term residents.
19        (6) Limited-equity housing cooperatives foster safe
20    environments, community organizing and cooperation, civic
21    engagement, and collective decision-making.
22        (7) Limited-equity housing cooperatives currently
23    operate to successfully preserve and create affordable
24    housing in urban areas in Illinois, but there is need for
25    centralized support and coordination for the establishment
26    of limited-equity housing cooperatives across the State.

 

 

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1        (8) The State of Illinois commits to becoming a
2    national exemplar by supporting and encouraging the
3    establishment of limited-equity housing cooperatives
4    across the State.
 
5    Section 15. Task Force; composition. The Limited-Equity
6Housing Cooperative Task Force is created within the Illinois
7Housing Development Authority and shall consist of the
8following members:
9        (1) The Executive Director of the Illinois Housing
10    Development Authority, or the Executive Director's
11    designee.
12        (2) One member of the Senate, appointed by the
13    President of the Senate.
14        (3) One member of the Senate, appointed by the
15    Minority Leader of the Senate.
16        (4) One member of the House of Representatives,
17    appointed by the Speaker of the House of Representatives.
18        (5) One member of the House of Representatives,
19    appointed by the Minority Leader of the House of
20    Representatives.
21        (6) One representative from at least 3 Illinois
22    limited-equity housing cooperatives appointed by the
23    Governor.
24        (7) A representative from one organization, either
25    within Illinois or outside Illinois, devoted to the

 

 

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1    creation of limited-equity housing cooperatives.
2        (8) A representative from a bank or lender that serves
3    housing cooperatives.
4        (9) One representative of a university located in
5    Illinois who has expertise on housing studies, appointed
6    by the Governor.
7        (10) One member representing a national laboratory
8    that provides technical support to advance affordable
9    housing solutions, appointed by the Governor.
10        (11) One member representing a statewide organization
11    that advocates for affordable housing in Illinois,
12    appointed by the Governor.
 
13    Section 20. Task force duties.
14    (a) The Task Force shall study:
15        (1) opportunities to expand the number of
16    limited-equity housing cooperatives statewide, including
17    the number of properties that could be developed as
18    limited-equity housing cooperatives;
19        (2) the use of limited-equity housing cooperatives as
20    a tool to create permanently affordable ownership housing;
21        (3) strategies that support the use of limited-equity
22    housing cooperatives;
23        (4) the impact that substantial investments in
24    limited-equity housing cooperatives would have on closing
25    the racial wealth gap in Illinois;

 

 

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1        (5) any different considerations in the use of
2    limited-equity housing cooperatives in gentrifying and
3    disinvested communities; and
4        (6) any incentive packages that might encourage
5    current property owners to sell their homes to
6    limited-equity housing cooperatives.
7    (b) The Task Force shall also:
8        (1) make recommendations for establishing a
9    sustainable, dedicated source of funding for
10    limited-equity housing cooperatives;
11        (2) create a cost-benefit analysis describing any
12    savings to the State if a limited-equity housing
13    cooperative model were pursued, including when compared to
14    current affordable rental housing programs and savings
15    across other sectors;
16        (3) outline financing and lending opportunities for
17    limited-equity housing cooperatives to make homeownership
18    attainable to long-term neighborhood residents;
19        (5) explore complementary uses of limited-equity
20    housing cooperative and community land trusts.
21    Following the study, the Task Force shall prepare a final
22report to the Governor and the General Assembly making
23specific recommendations of legislative and budgetary action
24that supports the mission of limited-equity housing
25cooperatives to foster permanently affordable ownership
26housing and homeownership among lower-income and

 

 

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1moderate-income Illinois residents.
 
2    Section 25. Meetings; co-chair; administrative support.
3All members appointed under Section 15 shall serve without
4compensation. Task Force members shall be appointed within 30
5days after the effective date of this Act. If a vacancy occurs
6thereafter, a replacement shall be appointed by the co-chairs
7of the Task Force. The Task Force shall hold its initial
8meetings within 60 days after the effective date of this Act.
9The Task Force shall meet at least 6 times. Additional
10meetings may be called at the direction of the co-chairs. The
11following individuals shall serve as co-chairs of the Task
12Force:
13        (1) The Executive Director of the Illinois Housing
14    Development Authority, or the Executive Director's
15    designee.
16        (2) One member of the Senate, appointed by the
17    President of the Senate.
18        (3) One member of the House of Representatives,
19    appointed by the Speaker of the House of Representatives.
20    Additionally, one member from the non-governmental sector,
21appointed by the Governor, shall be appointed Vice-Chair.
22    The Illinois Housing Development Authority shall provide
23administrative and technical support to the Task Force and be
24responsible for administering its operations and ensuring that
25the requirements of the Task Force are met.
 

 

 

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1    Section 30. Duties. The Task Force shall submit its final
2report to the Governor and General Assembly no later than
3December 31, 2024. The final report shall be made available
4online for the general public.
 
5    Section 35. Repeal. This Task Force is dissolved, and this
6Act is repealed, on December 31, 2024.
 
7    Section 99. Effective date. This Act takes effect upon
8becoming law.