Illinois General Assembly - Full Text of HB4575
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Full Text of HB4575  103rd General Assembly



State of Illinois
2023 and 2024


Introduced 1/31/2024, by Rep. Bradley Fritts


310 ILCS 105/10
310 ILCS 105/15

    Amends the Rental Housing Support Program Act. In provisions requiring the Illinois Housing Development Authority (Authority) to distribute certain amounts for the Rental Housing Support Program from annual receipts on deposit in the Rental Housing Support Program Fund, provides that certain annual receipts for municipalities and for grants to local administering agencies shall be distributed with priority to local administering agencies from the county in which the annual receipts were collected. Provides that the Authority shall wait at least 6 months after annual receipts are deposited into the Fund before distributing the annual receipts. In a provision concerning grants to local administering agencies to provide rent subsidies to landlords for low-income tenants, provides that at least one local administering agency shall serve each county (rather than requiring the Authority to use best efforts through outreach to local administering agencies to encourage at least one local administering agency to serve each county).

LRB103 35207 KTG 65187 b





HB4575LRB103 35207 KTG 65187 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 Rental Housing Support Program Act is
5amended by changing Sections 10 and 15 as follows:
6    (310 ILCS 105/10)
7    Sec. 10. Creation of Program and distribution of funds.
8    (a) The Rental Housing Support Program is created within
9the Illinois Housing Development Authority. The Authority
10shall administer the Program and adopt rules for its
12    (b) The Authority shall distribute amounts for the Program
13solely from annual receipts on deposit in the Rental Housing
14Support Program Fund that are appropriated in each year for
15distribution by the Authority for the Program, and not from
16any other source of funds for the Authority, as follows:
17        (1) A proportionate share of annual receipts on
18    deposit appropriated to the Fund each year, as determined
19    under subsection (d) of Section 15 of this Act, shall be
20    distributed to municipalities with a population greater
21    than 2,000,000. Those municipalities shall use at least
22    10% of those funds in accordance with Section 20 of this
23    Act, and all provisions governing the Authority's actions



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1    under Section 20 shall govern the actions of the corporate
2    authorities of a municipality under this Section. As to
3    the balance of the annual distribution, the municipality
4    shall designate a non-profit organization that meets the
5    specific criteria set forth in Section 25 of this Act to
6    serve as the "local administering agency" under Section 15
7    of this Act.
8        (2) Of the remaining annual receipts on deposit
9    appropriated to the Fund each year after the distribution
10    in paragraph (1) of this subsection, the Authority shall
11    designate at least 10% for the purposes of Section 20 of
12    this Act in areas of the State not covered under paragraph
13    (1) of this subsection.
14        (3) The remaining annual receipts on deposit
15    appropriated to the Fund each year after the distributions
16    in paragraphs (1) and (2) of this subsection shall be
17    distributed according to Section 15 of this Act in areas
18    of the State not covered under paragraph (1) of this
19    subsection.
20    Annual receipts distributed under paragraphs (1) and (2)
21of this subsection and under Section 15 shall be distributed
22with priority to local administering agencies from the county
23in which the annual receipts were collected.
24    The Authority shall wait at least 6 months after annual
25receipts are deposited into the Fund before distributing the
26annual receipts.



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1(Source: P.A. 99-97, eff. 7-22-15.)
2    (310 ILCS 105/15)
3    Sec. 15. Grants to local administering agencies.
4    (a) Under the program, the Authority shall make grants to
5local administering agencies to provide subsidies to landlords
6to enable the landlords to charge rent affordable for
7low-income tenants. Grants shall also include an amount for
8the operating expenses of local administering agencies. On an
9annual basis, operating expenses for local administering
10agencies shall not exceed 10% for grants under $500,000 and
11shall not exceed 7% for grants over $500,000. If a grant to a
12local administering agency covers more than one year, the
13Authority shall calculate operating expenses on an annual pro
14rata share of the grant. If the annual pro rata share is
15$500,000 or less, then the fee shall be 10%; if the annual pro
16rata share is greater than $500,000, then the fee shall be 7%.
17    (b) The Authority shall develop a request-for-proposals
18process for soliciting proposals from local administering
19agencies and for awarding grants. The request-for-proposals
20process and the funded projects must be consistent with the
21criteria set forth in Section 25 and with additional criteria
22set forth by the Authority in rules implementing this Act. As
23part of the request-for-proposal process and subject to the
24requirements contained in subsection (d), best efforts will be
25used to prioritize local administering agencies that serve the



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1county in which annual receipts were collected upon receipt of
2current data from the Department of Revenue applicable to the
3annual receipts.
4    (c) Local administering agencies may be local governmental
5bodies, local housing authorities, or not-for-profit
6organizations. The Authority shall set forth in rules the
7financial and capacity requirements necessary for an
8organization to qualify as a local administering agency and
9the parameters for administration of the grants by local
10administering agencies. At The Authority shall use best
11efforts through outreach to local administering agencies to
12encourage at least one local administering agency shall to
13serve each county, subject to subsection (d).
14    (d) The Authority shall distribute grants to local
15administering agencies according to a formula based on U.S.
16Census data. The formula shall determine percentages of the
17funds to be distributed to the following geographic areas: (i)
18Chicago; (ii) suburban areas: Cook County (excluding Chicago),
19DuPage County, Lake County, Kane County, Will County, and
20McHenry County; (iii) small metropolitan areas: Springfield,
21Rockford, Peoria, Decatur, Champaign-Urbana,
22Bloomington-Normal, Rock Island, DeKalb, Madison County,
23Moline, Pekin, Rantoul, and St. Clair County; and (iv) rural
24areas, defined as all areas of the State not specifically
25named in items (i), (ii), and (iii) of this subsection. A
26geographic area's percentage share shall be determined by the



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1total number of households that have an annual income of less
2than 50% of State median income for a household of 4, as
3determined by the U.S. Department of Housing and Urban
4Development, and that are paying more than 30% of their income
5for rent. The geographic distribution shall be re-determined
6by the Authority each time new U.S. Census data becomes
7available. The Authority shall phase in any changes to the
8geographic formula to prevent a large withdrawal of resources
9from one area that could negatively impact households
10receiving rental housing support. Up to 20% of the funds
11allocated for rural areas, as defined in this subsection, may
12be set aside and awarded to one administering agency to be
13distributed throughout the rural areas in the State to
14localities that desire a number of subsidized units of housing
15that is too small to justify the establishment of a full local
16program. In those localities, the administering agency may
17contract with local agencies to share the administrative tasks
18of the program, such as inspections of units.
19    (e) In order to ensure applications from all geographic
20areas of the State, the Authority shall create a plan to ensure
21that potential local administering agencies have ample time
22and support to consider making an application and to prepare
23an application. Such a plan must include, but is not limited
24to: an outreach and education plan regarding the program and
25the requirements for a local administering agency; ample time
26between the initial notice of funding ability and the deadline



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1to submit an application, which shall not be less than 9
2months; and access to assistance from the Authority or another
3agency in considering and preparing the application.
4    (f) In order to maintain consistency for households
5receiving rental housing support, the Authority shall, to the
6extent possible given funding resources available in the
7Rental Housing Support Program, continue to fund local
8administering agencies at the same level on an annual basis,
9unless the Authority determines that a local administering
10agency is not meeting the criteria set forth in Section 25 or
11is not adhering to other standards set forth by rule by the
13(Source: P.A. 102-1135, eff. 7-1-23.)