103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1476

 

Introduced 2/7/2023, by Sen. Ann Gillespie

 

SYNOPSIS AS INTRODUCED:
 
310 ILCS 67/15
310 ILCS 67/25
310 ILCS 67/30
310 ILCS 67/50

    Amends the Affordable Housing Planning and Appeal Act. In provisions requiring non-exempt local governments to approve an affordable housing plan, provides that, in addition to other requirements, the affordable housing plan must consist of a description of any housing market conditions, infrastructure limitations, local government ordinances, local policies or practices that do not affirmatively further fair housing as defined in the federal Fair Housing Act, and other local factors that constrain the local government's ability to create and preserve affordable housing. Requires the plan to also include potential strategies to eliminate or mitigate the specified constraints. Provides that the plan must set forth certain benchmark goals for new affordable housing developments or redevelopments; as well as proposed timelines, within the first 24 months after the date upon which the affordable housing plan was adopted, for actions to implement the components of the affordable housing plan. Provides that no later than 36 months after adopting or updating an affordable housing plan, the local government shall submit a report to the Illinois Housing Development Authority summarizing actions taken to implement the current plan. Contains provisions concerning the review of affordable housing plans by the State Housing Appeals Board (Board); membership on the Board; and other matters.


LRB103 25764 KTG 52113 b

 

 

A BILL FOR

 

SB1476LRB103 25764 KTG 52113 b

1    AN ACT concerning housing.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Affordable Housing Planning and Appeal Act
5is amended by changing Sections 15, 25, 30, and 50 as follows:
 
6    (310 ILCS 67/15)
7    Sec. 15. Definitions. As used in this Act:
8    "Affordable housing" means housing that has a value or
9cost or rental amount that is within the means of a household
10that may occupy moderate-income or low-income housing. In the
11case of owner-occupied dwelling units, housing that is
12affordable means housing in which mortgage, amortization,
13taxes, insurance, and condominium or association fees, if any,
14constitute no more than 30% of the gross annual household
15income for a household of the size that may occupy the unit. In
16the case of dwelling units for rent, housing that is
17affordable means housing for which the rent, any required
18parking, maintenance, landlord-imposed fees, and utilities
19constitute no more than 30% of the gross annual household
20income for a household of the size that may occupy the unit. In
21the case of dwelling units for rent, the costs of any required
22parking, maintenance, or landlord-imposed fees is to be
23included in the calculation of affordable housing if available

 

 

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1from the U.S. Census Bureau or from a regional planning
2commission, as described in the Regional Planning Commission
3Act, for municipalities within the jurisdiction of the
4regional planning commission.
5    "Affordable housing developer" means a nonprofit entity,
6limited equity cooperative or public agency, or private
7individual, firm, corporation, or other entity seeking to
8build an affordable housing development.
9    "Affordable housing development" means (i) any housing
10that is subsidized by the federal or State government or (ii)
11any housing in which at least 20% of the dwelling units are
12subject to covenants or restrictions that require that the
13dwelling units be sold or rented at prices that preserve them
14as affordable housing for a period of at least 15 years, in the
15case of owner-occupied housing, and at least 30 years, in the
16case of rental housing.
17    "Approving authority" means the governing body of the
18county or municipality.
19    "Area median household income" means the median household
20income adjusted for family size for applicable income limit
21areas as determined annually by the federal Department of
22Housing and Urban Development under Section 8 of the United
23States Housing Act of 1937.
24    "Community land trust" means a private, not-for-profit
25corporation organized exclusively for charitable, cultural,
26and other purposes and created to acquire and own land for the

 

 

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1benefit of the local government, including the creation and
2preservation of affordable housing.
3    "Development" means any building, construction,
4renovation, or excavation or any material change in any
5structure or land, or change in the use of such structure or
6land, that results in a net increase in the number of dwelling
7units in a structure or on a parcel of land by more than one
8dwelling unit.
9    "Exempt local government" means any local government in
10which the percentage of its total year-round housing units
11that are affordable is greater than the 20th percentile of all
12local governments, as determined by the Illinois Housing
13Development Authority under Section 20, or any municipality
14with a population under 1,000. "Exempt local government" means
15any local government in which at least 10% of its total
16year-round housing units are affordable, as determined by the
17Illinois Housing Development Authority pursuant to Section 20
18of this Act; or any municipality under 1,000 population.
19    "High cost housing community" or "nonexempt local
20government" means any local government in which the percentage
21of its total year-round housing units that are affordable is
22less than or equal to the 20th percentile of all local
23governments, as determined by the Illinois Housing Development
24Authority under Section 20 of this Act. No municipality with a
25population under 1,000 shall be considered a high cost housing
26community or nonexempt local government.

 

 

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1    "Household" means the person or persons occupying a
2dwelling unit.
3    "Housing trust fund" means a separate fund, either within
4a local government or between local governments pursuant to
5intergovernmental agreement, established solely for the
6purposes authorized in subsection (d) of Section 25,
7including, without limitation, the holding and disbursing of
8financial resources to address the affordable housing needs of
9individuals or households that may occupy low-income or
10moderate-income housing.
11    "Local government" means a county or municipality.
12    "Low-income housing" means housing that is affordable,
13according to the federal Department of Housing and Urban
14Development, for either home ownership or rental, and that is
15occupied, reserved, or marketed for occupancy by households
16with a gross household income that does not exceed 50% of the
17area median household income.
18    "Moderate-income housing" means housing that is
19affordable, according to the federal Department of Housing and
20Urban Development, for either home ownership or rental, and
21that is occupied, reserved, or marketed for occupancy by
22households with a gross household income that is greater than
2350% but does not exceed 80% of the area median household
24income.
25    "Non-appealable local government requirements" means all
26essential requirements that protect the public health and

 

 

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1safety, including any local building, electrical, fire, or
2plumbing code requirements or those requirements that are
3critical to the protection or preservation of the environment.
4(Source: P.A. 102-175, eff. 7-29-21.)
 
5    (310 ILCS 67/25)
6    Sec. 25. Affordable housing plan.
7    (a) Prior to April 1, 2005, all non-exempt local
8governments must approve an affordable housing plan. Any local
9government that is determined by the Illinois Housing
10Development Authority under Section 20 to be non-exempt for
11the first time based on the recalculation of U.S. Census
12Bureau data after 2010 shall have 18 months from the date of
13notification of its non-exempt status to approve an affordable
14housing plan under this Act. On and after the effective date of
15this amendatory Act of the 102nd General Assembly, an
16affordable housing plan, or any revision thereof, shall not be
17adopted by a non-exempt local government until notice and
18opportunity for public hearing have first been afforded.
19    (b) For the purposes of this Act, the affordable housing
20plan shall consist of at least the following:
21        (i) a statement of the total number of affordable
22    housing units that are necessary to exempt the local
23    government from the operation of this Act as defined in
24    Section 15 and Section 20;
25        (ii) an identification of lands within the

 

 

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1    jurisdiction that are most appropriate for the
2    construction of affordable housing and of existing
3    structures most appropriate for conversion to, or
4    rehabilitation for, affordable housing, including a
5    consideration of affordable housing for both
6    owner-occupied dwelling units and dwelling units for rent,
7    lands and structures of developers who have expressed a
8    commitment to provide affordable housing, and lands and
9    structures that are publicly or semi-publicly owned;
10        (iii) incentives that local governments may provide
11    for the purpose of attracting affordable housing to their
12    jurisdiction; and
13        (iv) a description of any housing market conditions,
14    infrastructure limitations, local government ordinances,
15    including zoning and land use ordinances, local government
16    policies or practices that do not affirmatively further
17    fair housing as defined in the federal Fair Housing Act,
18    and other local factors that constrain the local
19    government's ability to create and preserve affordable
20    housing;
21        (v) a plan or potential strategies to eliminate or
22    mitigate these constraints identified in item (iv); and
23        (vi) one or more of the following goals with plans to
24    accomplish the goals within a period of no more than 5
25    years: (iv) a goal of a minimum of 15% of all new
26    development or redevelopment within the local government

 

 

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1    that would be defined as affordable housing in this Act;
2    or a minimum of a 5 3 percentage point increase in the
3    overall percentage of affordable housing within its
4    jurisdiction, as described in subsection (b) of Section 20
5    of this Act; or a minimum of a total of 40% 10% affordable
6    housing within its jurisdiction as described in subsection
7    (b) of Section 20 of this Act. These goals may be met, in
8    whole or in part, through the creation of affordable
9    housing units under intergovernmental agreements as
10    described in subsection (e) of this Section; and .
11        (vii) proposed timelines, within the first 24 months
12    after the date upon which the affordable housing plan was
13    adopted, for actions to implement the components of the
14    affordable housing plan.
15    Local governments that have previously been determined as
16a non-exempt municipality and that have submitted an
17affordable housing plan shall also include a summary of
18actions taken to implement the previously submitted plan, as
19well as a summary of progress made toward achieving the goals
20of the plan.
21    To comply with the affordable housing plan requirements,
22no later than 36 months after adopting or updating an
23affordable housing plan the local government shall submit a
24report to the Illinois Housing Development Authority
25summarizing actions taken to implement the current plan.
26    (c) Within 60 days after the adoption of an affordable

 

 

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1housing plan or revisions to its affordable housing plan, the
2local government must submit a copy of that plan to the
3Illinois Housing Development Authority.
4    (d) In order to promote the goals of this Act and to
5maximize the creation, establishment, or preservation of
6affordable housing throughout the State of Illinois, a local
7government, whether exempt or non-exempt under this Act, may
8adopt the following measures to address the need for
9affordable housing:
10        (1) Local governments may individually or jointly
11    create or participate in a housing trust fund or otherwise
12    provide funding or support for the purpose of supporting
13    affordable housing, including, without limitation, to
14    support the following affordable housing activities:
15            (A) Housing production, including, without
16        limitation, new construction, rehabilitation, and
17        adaptive re-use.
18            (B) Acquisition, including, without limitation,
19        land, single-family homes, multi-unit buildings, and
20        other existing structures that may be used in whole or
21        in part for residential use.
22            (C) Rental payment assistance.
23            (D) Home-ownership purchase assistance.
24            (E) Preservation of existing affordable housing.
25            (F) Weatherization.
26            (G) Emergency repairs.

 

 

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1            (H) Housing related support services, including
2        homeownership education and financial counseling.
3            (I) Grants or loans to not-for-profit
4        organizations engaged in addressing the affordable
5        housing needs of low-income and moderate-income
6        households.
7        Local governments may authorize housing trust funds to
8    accept and utilize funds, property, and other resources
9    from all proper and lawful public and private sources so
10    long as those funds are used solely for addressing the
11    affordable housing needs of individuals or households that
12    may occupy low-income or moderate-income housing.
13        (2) A local government may create a community land
14    trust, which may: acquire developed or undeveloped
15    interests in real property and hold them for affordable
16    housing purposes; convey such interests under long-term
17    leases, including ground leases; convey such interests for
18    affordable housing purposes; and retain an option to
19    reacquire any such real property interests at a price
20    determined by a formula ensuring that such interests may
21    be utilized for affordable housing purposes.
22        (3) A local government may use its zoning powers to
23    require the creation and preservation of affordable
24    housing as authorized under Section 5-12001 of the
25    Counties Code and Section 11-13-1 of the Illinois
26    Municipal Code.

 

 

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1        (4) A local government may accept donations of money
2    or land for the purpose of addressing the affordable
3    housing needs of individuals or households that may occupy
4    low-income or moderate-income housing. These donations may
5    include, without limitation, donations of money or land
6    from persons, as long as the donations are demonstrably
7    used to preserve, create, or subsidize low-income housing
8    or moderate-income housing within the jurisdiction.
9    (e) In order to encourage regional cooperation and the
10maximum creation of affordable housing in areas lacking such
11housing in the State of Illinois, any non-exempt local
12government may enter into intergovernmental agreements under
13subsection (e) of Section 25 with local governments within 10
14miles of its corporate boundaries in order to create
15affordable housing units to meet the goals of this Act. A
16non-exempt local government may not enter into an
17intergovernmental agreement, however, with any local
18government that contains more than 50% 25% affordable housing
19as determined under Section 20 of this Act. All
20intergovernmental agreements entered into to create affordable
21housing units to meet the goals of this Act must also specify
22the basis for determining how many of the affordable housing
23units created will be credited to each local government
24participating in the agreement for purposes of complying with
25this Act. All intergovernmental agreements entered into to
26create affordable housing units to meet the goals of this Act

 

 

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1must also specify the anticipated number of newly created
2affordable housing units that are to be credited to each local
3government participating in the agreement for purposes of
4complying with this Act. In specifying how many affordable
5housing units will be credited to each local government, the
6same affordable housing unit may not be counted by more than
7one local government.
8    (e-5) Affordable housing plans from local governments
9shall be subject to review by the State Housing Appeals Board
10which shall determine whether affordable housing plans
11submitted by local governments meet the minimum requirements
12set forth in this Section. Based upon this review or other
13relevant factors, the State Housing Appeals Board may reject
14an affordable housing plan. The State Housing Appeals Board
15may reject an affordable housing plan based on a
16determination, as evidenced by a majority vote of members,
17that the affordable housing plan does not meet the minimum
18requirements set forth in this Section. A local government
19submitting an affordable housing plan rejected by the State
20Housing Appeals Board shall resubmit a revised plan within 180
21days of being notified by the Illinois Housing Development
22Authority of the State Housing Appeals Board's decision. If
23upon resubmission a local government has their revised
24affordable housing plan rejected by the State Housing Appeals
25Board, the local government shall be subject to the provisions
26in subsection (f).

 

 

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1    (f) To enforce compliance with the provisions of this
2Section, and to encourage local governments to submit their
3affordable housing plans to the Illinois Housing Development
4Authority in a timely manner, the Illinois Housing Development
5Authority shall notify any local government and may notify the
6Office of the Attorney General that the local government is in
7violation of State law if the Illinois Housing Development
8Authority or State Housing Appeals Board finds that the
9affordable housing plan submitted is not in substantial
10compliance with this Section or that the local government
11failed to submit an affordable housing plan. The Attorney
12General may enforce this provision of the Act by an action for
13mandamus or injunction or by means of other appropriate
14relief.
15(Source: P.A. 102-175, eff. 7-29-21.)
 
16    (310 ILCS 67/30)
17    Sec. 30. Appeal to State Housing Appeals Board.
18    (a) (Blank).
19    (b) (Blank). Beginning January 1, 2009, an affordable
20housing developer whose application is either denied or
21approved with conditions that in his or her judgment render
22the provision of affordable housing infeasible may, within 45
23days after the decision, appeal to the State Housing Appeals
24Board challenging that decision unless the municipality or
25county that rendered the decision is exempt under Section 15

 

 

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1of this Act. The developer must submit information regarding
2why the developer believes he or she was unfairly denied or
3unreasonable conditions were placed upon the tentative
4approval of the development. In the case of local governments
5that are determined by the Illinois Housing Development
6Authority under Section 20 to be non-exempt for the first time
7based on the recalculation of U.S. Census Bureau data after
8the effective date of this amendatory Act of the 98th General
9Assembly, no developer may appeal to the State Housing Appeals
10Board until 60 months after a local government has been
11notified of its non-exempt status.
12    (b-5) Beginning January 1, 2024, an affordable housing
13developer, or resident of the municipality where an affordable
14housing development is proposed, may file an appeal as a
15plaintiff to the State Housing Appeals Board against a
16non-exempt municipality if the proposed affordable housing
17development was denied by the municipality or approved with
18conditions that in the plaintiff's judgment render the
19provision of affordable housing infeasible. Appeals must be
20filed within 45 days after the decision by the municipality.
21The plaintiff must submit information regarding why the
22plaintiff believes the affordable housing development was
23unfairly denied or unreasonable conditions were placed upon
24the tentative approval of the development. In the case of
25local governments that are determined by the Illinois Housing
26Development Authority under Section 20 to be non-exempt for

 

 

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1the first time based on the recalculation of U.S. Census
2Bureau data after the effective date of this amendatory Act of
3the 103rd General Assembly, no developer may appeal to the
4State Housing Appeals Board until 6 months after a local
5government has been notified of its non-exempt status.
6    (c) Beginning on the effective date of this amendatory Act
7of the 98th General Assembly, the Board shall, whenever
8possible, render a decision on the appeal within 120 days
9after the appeal is filed. The Board may extend the time by
10which it will render a decision where circumstances outside
11the Board's control make it infeasible for the Board to render
12a decision within 120 days. In any proceeding before the
13Board, the plaintiff affordable housing developer bears the
14burden of demonstrating that the proposed affordable housing
15development (i) has been unfairly denied or (ii) has had
16unreasonable conditions placed upon it by the decision of the
17local government.
18    (d) The Board shall dismiss any appeal if:
19        (i) the local government has adopted an affordable
20    housing plan as defined in Section 25 of this Act and
21    submitted that plan to the Illinois Housing Development
22    Authority within the time frame required by this Act; and
23        (ii) the local government has implemented its
24    affordable housing plan and has met its goal as
25    established in its affordable housing plan as defined in
26    item (vi) of subsection (b) of Section 25 of this Act.

 

 

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1    (e) The Board shall dismiss any appeal if the reason for
2denying the application or placing conditions upon the
3approval is a non-appealable local government requirement
4under Section 15 of this Act.
5    (f) The Board may affirm, reverse, or modify the
6conditions of, or add conditions to, a decision made by the
7approving authority. The decision of the Board constitutes an
8order directed to the approving authority and is binding on
9the local government.
10    (g) The appellate court has the exclusive jurisdiction to
11review decisions of the Board. Any appeal to the Appellate
12Court of a final ruling by the State Housing Appeals Board may
13be heard only in the Appellate Court for the District in which
14the local government involved in the appeal is located. The
15appellate court shall apply the "clearly erroneous" standard
16when reviewing such appeals. An appeal of a final ruling of the
17Board shall be filed within 35 days after the Board's decision
18and in all respects shall be in accordance with Section 3-113
19of the Code of Civil Procedure.
20(Source: P.A. 98-287, eff. 8-9-13.)
 
21    (310 ILCS 67/50)
22    Sec. 50. Housing Appeals Board.
23    (a) Prior to January 1, 2008, a Housing Appeals Board
24shall be created consisting of 5 7 members appointed by the
25Governor as follows:

 

 

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1        (1) a current or retired circuit judge, or retired
2    appellate judge, administrative law judge, or attorney
3    with experience in the area of land use law, who shall act
4    as chairperson;
5        (2) 3 members selected from among the following
6    categories:
7            (A) county or municipal zoning board of appeals
8        members;
9            (B) county or municipal planning board members;
10            (C) a mayor or municipal council or board member;
11            (D) a county board member; and a zoning board of
12        appeals member;
13        (3) an affordable housing advocate. a planning board
14    member;
15        (4) (Blank). a mayor or municipal council or board
16    member;
17        (5) (Blank). a county board member;
18        (6) (Blank). an affordable housing developer; and
19        (7) (Blank). an affordable housing advocate.
20    In addition, the Chairman of the Illinois Housing
21Development Authority, ex officio, shall serve as a non-voting
22member. At least one of the appointments under paragraph (2)
23shall be from a local government that is non-exempt under this
24Act. No more than 4 of the appointed members may be from the
25same political party. Appointments under items (2), (3), and
26(4) shall be from local governments that are not exempt under

 

 

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1this Act.
2    (b) Initial terms of 4 members designated by the Governor
3shall be for 2 years. Initial terms of 3 members designated by
4the Governor shall be for one year. Thereafter, members shall
5be appointed for terms of 2 years. After a member's term
6expires, the member shall continue to serve until a successor
7is appointed. There shall be no limit to the number of terms an
8appointee may serve. A member shall receive no compensation
9for his or her services, but shall be reimbursed by the State
10for all reasonable expenses actually and necessarily incurred
11in the performance of his or her official duties. The board
12shall hear all petitions for review filed under this Act and
13shall conduct all hearings in accordance with the rules and
14regulations established by the chairperson. The Illinois
15Housing Development Authority shall provide space and clerical
16and other assistance that the Board may require.
17    (c) (Blank).
18    (d) To the extent possible, any vacancies in the Housing
19Appeals Board shall be filled within 90 days of the vacancy.
20(Source: P.A. 102-175, eff. 7-29-21.)