Sen. William Delgado

Filed: 5/1/2012

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 5450

2    AMENDMENT NO. ______. Amend House Bill 5450 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Rental Housing Support Program Act is
5amended by changing Sections 5 and 25 and by adding Section 95
6as follows:
 
7    (310 ILCS 105/5)
8    Sec. 5. Legislative findings and purpose. The General
9Assembly finds that in many parts of this State, large numbers
10of citizens are faced with the inability to secure affordable
11rental housing. Due to either insufficient wages or a shortage
12of affordable rental housing stock, or both, many families have
13difficulty securing decent housing, are subjected to
14overcrowding, pay too large a portion of their total monthly
15income for housing and consequently suffer the lack of other
16basic needs, live in substandard or unhealthy housing, or

 

 

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1experience chronic housing instability. Instability and
2inadequacy in housing limits the employability and
3productivity of many citizens, adversely affects family health
4and stress levels, and impedes children's ability to learn;
5such instability , and produces corresponding drains on public
6resources and contributes to an overall decline in real estate
7values. It is the purpose of this Act to create a State program
8to help localities address the need for decent, affordable,
9permanent rental housing.
10(Source: P.A. 94-118, eff. 7-5-05.)
 
11    (310 ILCS 105/25)
12    Sec. 25. Criteria for awarding grants. The Authority shall
13adopt rules to govern the awarding of grants and the continuing
14eligibility for grants under Sections 15 and 20. Requests for
15proposals under Section 20 must specify that proposals must
16satisfy these rules. The rules must contain and be consistent
17with, but need not be limited to, the following criteria:
18        (1) Eligibility for tenancy in the units supported by
19    grants to local administering agencies must be limited to
20    households with gross income at or below 30% of the median
21    family income for the area in which the grant will be made.
22    Fifty percent of the units that are supported by any grant
23    must be set aside for households whose income is at or
24    below 15% of the area median family income for the area in
25    which the grant will be made, provided that local

 

 

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1    administering agencies may negotiate flexibility in this
2    set-aside with the Authority if they demonstrate that they
3    have been unable to locate sufficient tenants in this lower
4    income range. Income eligibility for units supported by
5    grants to local administering agencies must be verified
6    annually by landlords and submitted to local administering
7    agencies. Tenants must have sufficient income to be able to
8    afford the tenant's share of the rent. For grants awarded
9    under Section 20, eligibility for tenancy in units
10    supported by grants must be limited to households with a
11    gross income at or below 30% of area median family income
12    for the area in which the grant will be made. Fifty percent
13    of the units that are supported by any grant must be set
14    aside for households whose income is at or below 15% of the
15    median family income for the area in which the grant will
16    be made, provided that developers may negotiate
17    flexibility in this set-aside with the Authority or
18    municipality as defined in subsection (b) of Section 10 if
19    it demonstrates that it has been unable to locate
20    sufficient tenants in this lower income range. The
21    Authority shall determine what sources qualify as a
22    tenant's income.
23        (2) Local administering agencies must include
24    2-bedroom, 3-bedroom, and 4-bedroom units among those
25    intended to be supported by grants under the program. In
26    grants under Section 15, the precise number of these units

 

 

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1    among all the units intended to be supported by a grant
2    must be based on need in the community for larger units and
3    other factors that the Authority specifies in rules. The
4    local administering agency must specify the basis for the
5    numbers of these units that are proposed for support under
6    a grant. Local administering agencies must make a good
7    faith effort to comply with this allocation of unit sizes.
8    In grants awarded under Section 20, developers and the
9    Authority or municipality, as defined in subsection (b) of
10    Section 10, shall negotiate the numbers and sizes of units
11    to be built in a project and supported by the grant.
12        (3) Under grants awarded under Section 15, local
13    administering agencies must enter into a payment contract
14    with the landlord that defines the method of payment and
15    must pay subsidies to landlords on a quarterly basis and in
16    advance of the quarter paid for.
17        (4) Local administering agencies and developers must
18    specify how vacancies in units supported by a grant must be
19    advertised and they must include provisions for outreach to
20    local homeless shelters, organizations that work with
21    people with disabilities, and others interested in
22    affordable housing.
23        (5) The local administering agency or developer must
24    establish a schedule for the tenant's rental obligation for
25    units supported by a grant. The tenant's share of the rent
26    must be a flat amount, calculated annually, based on the

 

 

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1    size of the unit and the household's income category. In
2    establishing the schedule for the tenant's rental
3    obligation, the local administering agency or developer
4    must use 30% of gross income within an income range as a
5    guide, and it may charge an additional or lesser amount.
6        (6) The amount of the subsidy provided under a grant
7    for a unit must be the difference between the amount of the
8    tenant's obligation and the total amount of rent for the
9    unit. The total amount of rent for the unit must be
10    negotiated between the local administering authority and
11    the landlord under Section 15, or between the Authority or
12    municipality, as defined in subsection (b) of Section 10,
13    and the developer under Section 20, using comparable rents
14    for units of comparable size and condition in the
15    surrounding community as a guideline.
16        (7) Local administering agencies and developers,
17    pursuant to criteria the Authority develops in rules, must
18    ensure that there are procedures in place to maintain the
19    safety and habitability of units supported under grants.
20    Local administering agencies must inspect units before
21    supporting them under a grant awarded under Section 15.
22        (8) Local administering agencies must provide or
23    ensure that tenants are provided with a "bill of rights"
24    with their lease setting forth local landlord-tenant laws
25    and procedures and contact information for the local
26    administering agency.

 

 

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1        (9) A local administering agency must create a plan
2    detailing a process for helping to provide information,
3    when necessary, on how to access education, training, and
4    other supportive services to tenants living in units
5    supported under the grant. The plan must be submitted as a
6    part of the administering agency's proposal to the
7    Authority required under Section 15.
8        (10) Local administering agencies and developers may
9    not use funding under the grant to develop or support
10    housing that requires that a tenant has a particular
11    diagnosis or type or presence of disability as a condition
12    of eligibility for occupancy unless the requirement is
13    mandated by another funding source for the housing. Local
14    administering agencies and developers may use grant
15    funding to develop integrated housing opportunities for
16    persons with disabilities, but not housing restricted to a
17    specific disability type.
18        (11) In order to plan for periodic fluctuations in
19    program revenue, the Authority shall establish by rule a
20    mechanism for establishing a reserve fund and the level of
21    funding that shall be held in reserve either by the
22    Authority or by local administering agencies.
23(Source: P.A. 94-118, eff. 7-5-05.)
 
24    (310 ILCS 105/95 new)
25    Sec. 95. Severability. If any provision of this Act or its

 

 

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1application to any person or circumstance is held invalid, the
2invalidity of that provision or application does not affect
3other provisions or applications of this Act that can be given
4effect without the invalid provision or application.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.".