093_HB2246enr

 
HB2246 Enrolled                      LRB093 08168 RCE 08374 b

 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Property  Tax Code is amended by adding
 5    Section 18-173 as follows:

 6        (35 ILCS 200/18-173 new)
 7        Sec. 18-173. Housing opportunity area abatement program.
 8        (a)  For the purpose of promoting access to housing  near
 9    work  and  in  order to promote economic diversity throughout
10    Illinois and to alleviate  the  concentration  of  low-income
11    households  in  areas  of high poverty, a housing opportunity
12    area tax abatement program is created.
13        (b)  As used in this Section:
14        "Housing authority"  means  either  a  housing  authority
15    created under the Housing Authorities Act or other government
16    agency  that  is  authorized  by the United States government
17    under the United States Housing Act of 1937 to  administer  a
18    housing  choice  voucher  program, or the authorized agent of
19    such a housing authority that is authorized to act upon  that
20    authority's behalf.
21        "Housing choice voucher" means a tenant voucher issued by
22    a  housing  authority  under  Section  8 of the United States
23    Housing Act of 1937.
24        "Housing opportunity area" means  a  census  tract  where
25    less  than 10% of the residents live below the poverty level,
26    as defined by the United States government and determined  by
27    the  most recent United States census, that is located within
28    a qualified township.
29        "Housing opportunity unit" means a dwelling unit  located
30    in   residential  property  that  is  located  in  a  housing
31    opportunity area, that is owned by the applicant, and that is

 
HB2246 Enrolled             -2-      LRB093 08168 RCE 08374 b
 1    rented to and occupied by a tenant who is participating in  a
 2    housing  choice  voucher  program  administered  by a housing
 3    authority as of January 1st of the tax  year  for  which  the
 4    application is made.
 5        "Qualified units" means the number of housing opportunity
 6    units  located  in  the  property with the limitation that no
 7    more than 2 units or 20% of the total units contained  within
 8    the   property,  whichever  is  greater,  may  be  considered
 9    qualified units. Further, no unit may be considered qualified
10    unless  the  property  in  which  it  is  contained   is   in
11    substantial   compliance  with  local  building  codes,  and,
12    moreover, no unit may be considered qualified unless it meets
13    the  United  States   Department   of   Housing   and   Urban
14    Development's housing quality standards as of the most recent
15    housing authority inspection.
16        "Qualified  township"  means  a township located within a
17    county with 200,000 or more inhabitants  whose  tax  capacity
18    exceeds  100%  of  the  average tax capacity of the county in
19    which it is located, except for townships  located  within  a
20    county  with 3,000,000 or more inhabitants, where a qualified
21    township means a township whose tax capacity exceeds 115%  of
22    the  average  tax capacity of the county except for townships
23    located wholly within a municipality with 1,000,000  or  more
24    inhabitants.   All   townships   located   wholly   within  a
25    municipality  with  1,000,000   or   more   inhabitants   are
26    considered qualified townships.
27        "Tax  capacity" means the equalized assessed value of all
28    taxable real estate  located  within  a  township  or  county
29    divided by the total population of that township or county.
30        (c)  The  owner  of  property  located  within  a housing
31    opportunity area who has a housing  choice  voucher  contract
32    with  a housing authority may apply for a housing opportunity
33    area tax abatement by annually submitting an  application  to
34    the  housing  authority  that  administers the housing choice
 
HB2246 Enrolled             -3-      LRB093 08168 RCE 08374 b
 1    voucher contract. The application must include the number  of
 2    housing  opportunity  units  as  well  as the total number of
 3    dwelling units contained  within  the  property.   The  owner
 4    must,  under  oath,  self-certify  as  to the total number of
 5    dwelling units in the property and must self-certify that the
 6    property is in substantial  compliance  with  local  building
 7    codes.   The  housing  authority shall annually determine the
 8    number of qualified units located within  each  property  for
 9    which an application is made.
10        The   housing   authority   shall   establish  rules  and
11    procedures governing the application processes and may charge
12    an  application  fee.   The  county  clerk  may   audit   the
13    applications  to determine that the properties subject to the
14    tax abatement meet the requirements  of  this  Section.   The
15    determination  of  eligibility  of a property for the housing
16    opportunity area abatement shall be made  annually;  however,
17    no  property  may  receive  an abatement for more than 10 tax
18    years.
19        (d)  The  housing  authority  shall   determine   housing
20    opportunity  areas  within  its  service  area  and  annually
21    deliver  to  the  county clerk, in a manner determined by the
22    county clerk, a list of all properties  containing  qualified
23    units  within  that  service area by December 31st of the tax
24    year for which the property is eligible  for  abatement;  the
25    list  shall  include  the  number  of qualified units and the
26    total number of dwelling units for each property.
27        The county clerk shall  deliver  annually  to  a  housing
28    authority,  upon  that  housing authority's request, the most
29    recent available equalized assessed value for the county as a
30    whole  and  for  those  taxing  districts  and  townships  so
31    specified by the requesting housing authority.
32        (e)  The county clerk shall abate the tax attributed to a
33    portion of the property  determined  to  be  eligible  for  a
34    housing  opportunity area abatement. The portion eligible for
 
HB2246 Enrolled             -4-      LRB093 08168 RCE 08374 b
 1    abatement shall  be  determined  by  reducing  the  equalized
 2    assessment   value  by  a  percentage  calculated  using  the
 3    following formula: 19% of the equalized assessed value of the
 4    property multiplied by a fraction where the numerator is  the
 5    number of qualified units and denominator is the total number
 6    of dwelling units located within the property.
 7        (f)  Any  municipality,  except  for  municipalities with
 8    1,000,000 or more  inhabitants,  may  annually  petition  the
 9    county  clerk  to be excluded from a housing opportunity area
10    if it is able to demonstrate that more than 2.5% of the total
11    residential  units  located  within  that  municipality   are
12    occupied by tenants under the housing choice voucher program.
13    Properties  located within an excluded municipality shall not
14    be eligible for the housing opportunity  area  abatement  for
15    the tax year in which the petition is made.
16        (g)  Applicability.   This  Section  applies to tax years
17    2004 through 2014, unless extended by law.

18        Section 99.  Effective date.  This Act takes effect  upon
19    becoming law.