093_HB2206

                                     LRB093 07696 MKM 07881 b

 1        AN ACT in relation to housing.

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

 4        Section  1.  Short  title.  This  Act may be cited as the
 5    Rental Housing Support Program Act.

 6        Section 5.  Legislative findings and purpose. The General
 7    Assembly finds that  in  many  parts  of  this  State,  large
 8    numbers  of  citizens  are faced with the inability to secure
 9    affordable rental housing. Due to either  insufficient  wages
10    or  a  shortage  of affordable rental housing stock, or both,
11    many families have difficulty securing  decent  housing,  are
12    subjected  to  overcrowding, pay too large a portion of their
13    total monthly income for housing and consequently suffer  the
14    lack  of  other basic needs, live in substandard or unhealthy
15    housing,   or   experience   chronic   housing   instability.
16    Instability   and   inadequacy   in   housing   limits    the
17    employability  and  productivity  of many citizens, adversely
18    affects family health and stress levels,  impedes  children's
19    ability to learn, and produces corresponding drains on public
20    resources.  It  is  the purpose of this Act to create a State
21    program to  help  localities  address  the  need  for  decent
22    affordable permanent rental housing.

23        Section 7.  Definitions. In this Act:
24        "Authority"   means   the  Illinois  Housing  Development
25    Authority.
26        "Program" means the Rental Housing Support Program.
27        "Unit" means a rental apartment unit receiving a  subsidy
28    by  means  of a grant under this Act. "Unit" does not include
29    housing units intended as transitional or temporary housing.
 
                            -2-      LRB093 07696 MKM 07881 b
 1        Section 10.  Creation  of  program.  The  Rental  Housing
 2    Support  Program  is  created  within  the  Illinois  Housing
 3    Development  Authority.  The  Authority  shall administer the
 4    program.

 5        Section 15.  Grants to local administering agencies.
 6        (a)  Under the program, the Authority shall  make  grants
 7    to  local  administering  agencies  to  provide  subsidies to
 8    landlords to enable the landlords to charge  rent  affordable
 9    for  low-income  tenants. Grants shall also include an amount
10    for the operating expenses of local administering agencies.
11        (b)  The Authority shall develop a  request-for-proposals
12    process  for  soliciting  proposals  from local administering
13    agencies and for awarding grants.  The  request-for-proposals
14    process  and  the funded projects must be consistent with the
15    criteria set forth in Section 25 and with additional criteria
16    set forth by the Authority in rules implementing this Act.
17        (c)  Local   administering   agencies   may   be    local
18    governmental    bodies,   local   housing   authorities,   or
19    not-for-profit organizations. The Authority shall  set  forth
20    in  rules  the  financial and capacity requirements necessary
21    for an organization  to  qualify  as  a  local  administering
22    agency.
23        (d)  The  Authority  shall  distribute  grants  to  local
24    administering  agencies according to the following geographic
25    distribution  formula:  of  funds  received  to  support  the
26    program, 50% must go to Chicago; 20% must go to  the  Chicago
27    suburban  counties of Cook (excluding Chicago), DuPage, Lake,
28    Kane, Will, and McHenry; 15% must go  to  small  metropolitan
29    areas   ("small   metropolitan   areas"   are   defined   as:
30    Springfield,  Rockford,  Peoria,  Decatur,  Champaign-Urbana,
31    Bloomington-Normal,  Rock  Island,  DeKalb,  Madison  County,
32    Moline,  Pekin, Rantoul, and St. Clair County); and 15 % must
33    go to rural areas.
 
                            -3-      LRB093 07696 MKM 07881 b
 1        (e)  In order to ensure applications from all  geographic
 2    areas  of  the  State,  the  Authority shall create a plan to
 3    ensure that potential local administering agencies have ample
 4    time and support to consider making  an  application  and  to
 5    prepare  an application. Such a plan must include, but is not
 6    limited to: an outreach  and  education  plan  regarding  the
 7    program  and  the  requirements  for  a  local  administering
 8    agency;  ample  time  between  the  initial notice of funding
 9    ability and the deadline  to  submit  an  application,  which
10    shall  not  be  less  than 9 months; and access to assistance
11    from the Authority  or  another  agency  in  considering  and
12    preparing the application.
13        (f)  The  Chicago  Low-Income  Housing  Trust Fund has an
14    existing program that matches the function and purpose of the
15    program described in this Act and meets the specific criteria
16    set forth in Section 25. Therefore,  the  Chicago  Low-Income
17    Housing Trust Fund shall be the local administering agency of
18    the   program   for  Chicago  and  shall  receive  the  funds
19    designated for  Chicago  under  the  geographic  distribution
20    formula set forth in subsection (d)

21        Section 20.  Grants to developers.
22        (a)  The  Authority  may  award  grants under the program
23    directly to developers of new affordable rental  housing  for
24    long-term  operating support to enable the rent on such units
25    to be affordable. Developers of such new housing shall  apply
26    directly  to  the  Authority for this type of grant under the
27    program.
28        (b)  The  Authority   shall   prescribe   by   rule   the
29    application requirements and the qualifications necessary for
30    a  developer  and  a development to qualify for a grant under
31    the program. In any event, however, to qualify for  a  grant,
32    the  development  must  satisfy  the  criteria  set  forth in
33    Section 25, unless waived by the Authority based  on  special
 
                            -4-      LRB093 07696 MKM 07881 b
 1    circumstances  and  in  furtherance  of  the  purpose  of the
 2    program to increase the supply of affordable rental housing.
 3        (c)  The Authority must use 10% of its funds in any given
 4    year on grants under this Section. In  any  given  year,  the
 5    Authority  is not required to spend the 10% of its funds that
 6    accrues in that year but may add all or part of that  10%  to
 7    the  10%  allocation  for subsequent years for the purpose of
 8    funding grants under this Section.

 9        Section 25.  Criteria for awarding grants. The  Authority
10    shall  adopt  rules  to govern the awarding of grants and the
11    continuing eligibility for grants under Sections 15  and  20.
12    Requests  for  proposals  under  Section 20 must specify that
13    proposals must satisfy these rules. The  rules  must  contain
14    and  be  consistent  with,  but  need  not be limited to, the
15    following criteria:
16             (1)  Eligibility for tenancy in the units  supported
17        by grants must be limited to households with gross income
18        at  or below 30% of the area median income, determined by
19        the Authority using  statistical  data  it  deems  to  be
20        reliable  and  as  specific  as  possible for the area in
21        which the grant will be made. Fifty percent of the  units
22        that  are  supported  by  any grant must be set aside for
23        households whose income is at or below 15%  of  the  area
24        median  income,  provided  that localities and developers
25        may negotiate flexibility  in  this  set-aside  with  the
26        Authority  if they demonstrate that they have been unable
27        to locate sufficient tenants in this lower income  range.
28        Tenants  must have sufficient income to be able to afford
29        the tenant's share of the rent.
30             (2)  Local administering  authorities  must  include
31        2-bedroom,  3-bedroom,  and  4-bedroom  units among those
32        intended to be supported by grants under the program.  In
33        grants  under  Section  15,  the  precise number of these
 
                            -5-      LRB093 07696 MKM 07881 b
 1        units among all the units intended to be supported  by  a
 2        grant  must  be based on need in the community for larger
 3        units and other factors that the Authority  specifies  in
 4        rules.  The  local  administering agency must specify the
 5        basis for the numbers of these units  that  are  proposed
 6        for  support  under a grant. Local administering agencies
 7        must make  a  good  faith  effort  to  comply  with  this
 8        allocation of unit sizes. In grants awarded under Section
 9        20,  developers  and  the  Authority  shall negotiate the
10        numbers and sizes of units to be built in a  project  and
11        supported by the grant.
12             (3)  Under  grants  awarded  under Section 15, local
13        administering authorities must pay subsidies to landlords
14        on a quarterly basis and in advance of the  quarter  paid
15        for.
16             (4)  Local  administering  agencies  and  developers
17        must  specify how vacancies in units supported by a grant
18        must be advertised, and with respect to each vacancy they
19        must include provisions for outreach  to  local  homeless
20        shelters,   organizations  that  work  with  people  with
21        disabilities,  and  others   interested   in   affordable
22        housing.
23             (5)  The  local  administering  agency  or developer
24        must  establish  a  schedule  for  the  tenant's   rental
25        obligation  for  units supported by a grant. The tenant's
26        share of the rent must be a flat amount based on the size
27        of the unit  and  the  household's  income  category.  In
28        establishing   the   schedule  for  the  tenant's  rental
29        obligation, the local administering agency  or  developer
30        must  use 30% of gross income within an income range as a
31        guide, and it may charge an additional or  lesser  amount
32        depending on the size of the unit.
33             (6)  The  amount  of  the  subsidy  provided under a
34        grant for a unit  must  be  the  difference  between  the
 
                            -6-      LRB093 07696 MKM 07881 b
 1        amount of the tenant's obligation and the total amount of
 2        rent  for the unit. The total amount of rent for the unit
 3        must  be  negotiated  between  the  local   administering
 4        authority  and  the landlord under Section 15, or between
 5        the Authority and the developer under Section  20,  based
 6        on  the  operating  expenses  for the unit and using fair
 7        market rent as a guideline.
 8             (7)  Local administering authorities and developers,
 9        pursuant to criteria the  Authority  develops  in  rules,
10        must  ensure  that  there  are  procedures  in  place  to
11        maintain  the  safety and habitability of units supported
12        under  grants  according  to   local   standards.   Local
13        administering   agencies   must   inspect   units  before
14        supporting them under a grant awarded under Section 15.
15             (8)  Local administering agencies  must  provide  or
16        ensure  that tenants are provided with a "bill of rights"
17        with their lease setting forth local landlord-tenant laws
18        and procedures and  contact  information  for  the  local
19        administering agency.
20             (9)  A local administering agency must create a plan
21        detailing  a  process  for helping to provide information
22        and referrals when necessary for education, training, and
23        other supportive services  to  tenants  living  in  units
24        supported  under the grant. The plan must be submitted as
25        a part of the  administering  agency's  proposal  to  the
26        Authority required under Section 15.
27             (10)  Local  administering  agencies  and developers
28        may not use funding under the grant to develop or support
29        housing that segregates tenants according to presence  of
30        or type of disability.

31        Section  30.  Funding  stream  reserve.  If  the  program
32    receives  funding from a source that fluctuates (such as user
33    fees), the Authority must each year place 10% of the  revenue
 
                            -7-      LRB093 07696 MKM 07881 b
 1    from  that source in an operating reserve. The Authority must
 2    continue to add to the reserve until the reserve contains  an
 3    amount  equal  to the annual rental subsidy commitment of the
 4    program. The Authority shall draw on  this  reserve  whenever
 5    the  revenue falls below commitments for rental subsidies. If
 6    funds are withdrawn from the reserve, payments to the reserve
 7    must recommence when revenue is sufficient and must  continue
 8    until  the  reserve  reaches  an  amount  equal to the annual
 9    rental subsidy commitments.

10        Section 90.  The State Finance Act is amended  by  adding
11    Section 5.595 as follows:

12        (30 ILCS 105/5.595 new)
13        Sec. 5.595.  The Rental Housing Support Program Fund.

14        Section  95.  The  Counties  Code  is amended by changing
15    Sections 3-5018 and 4-12002 as follows:

16        (55 ILCS 5/3-5018) (from Ch. 34, par. 3-5018)
17        Sec. 3-5018.  Fees.  The recorder elected as provided for
18    in this Division shall receive such fees as  are  or  may  be
19    provided  for  him  by  law,  in  case of provision therefor:
20    otherwise he shall receive the same fees as  are  or  may  be
21    provided  in  this  Section,  except when increased by county
22    ordinance pursuant to the provisions of this Section,  to  be
23    paid  to  the  county clerk for his services in the office of
24    recorder for like services.
25        For recording deeds or  other  instruments  $12  for  the
26    first  4  pages  thereof,  plus  $1  for each additional page
27    thereof, plus $1 for each additional document number  therein
28    noted.   The  aggregate  minimum  fee  for  recording any one
29    instrument shall not be less than $12.
30        For recording deeds  or  other  instruments  wherein  the
 
                            -8-      LRB093 07696 MKM 07881 b
 1    premises  affected thereby are referred to by document number
 2    and not by legal description a fee of $1 in addition to  that
 3    hereinabove  referred  to  for  each  document number therein
 4    noted.
 5        For recording assignments of mortgages, leases  or  liens
 6    $12  for  the  first  4  pages  thereof,  plus  $1  for  each
 7    additional  page  thereof.   However,  except  for leases and
 8    liens pertaining to oil, gas and other minerals,  whenever  a
 9    mortgage,  lease  or  lien  assignment  assigns more than one
10    mortgage, lease or lien document, a $7 fee shall  be  charged
11    for  the  recording  of  each  such  mortgage,  lease or lien
12    document after the first one.
13        For recording maps or plats of additions or  subdivisions
14    approved   by  the  county  or  municipality  (including  the
15    spreading of the same of record in map case or  other  proper
16    books)  or plats of condominiums $50 for the first page, plus
17    $1 for each additional page thereof except that in  the  case
18    of  recording  a  single page, legal size 8 1/2 x 14, plat of
19    survey in which there are no more than two lots or parcels of
20    land, the fee shall be $12. In each county where such maps or
21    plats are to be recorded, the recorder may require  the  same
22    to  be  accompanied by such number of exact, true and legible
23    copies thereof  as  the  recorder  deems  necessary  for  the
24    efficient conduct and operation of his office.
25        For  certified  copies  of  records  the same fees as for
26    recording, but in no case shall the fee for a certified  copy
27    of  a  map  or  plat of an addition, subdivision or otherwise
28    exceed $10.
29        Each certificate of such recorder of the recording of the
30    deed or other writing and of the date of recording  the  same
31    signed  by such recorder, shall be sufficient evidence of the
32    recording  thereof,  and  such  certificate   including   the
33    indexing  of  record,  shall be furnished upon the payment of
34    the fee for recording the instrument, and no  additional  fee
 
                            -9-      LRB093 07696 MKM 07881 b
 1    shall be allowed for the certificate or indexing.
 2        The recorder shall charge an additional fee, in an amount
 3    equal  to  the fee otherwise provided by law, for recording a
 4    document (other than a document filed under the Plat  Act  or
 5    the  Uniform  Commercial  Code)  that does not conform to the
 6    following standards:
 7             (1)  The document  shall  consist  of  one  or  more
 8        individual  sheets measuring 8.5 inches by 11 inches, not
 9        permanently bound and  not  a  continuous  form.  Graphic
10        displays  accompanying  a  document  to  be recorded that
11        measure up to 11 inches by 17 inches  shall  be  recorded
12        without charging an additional fee.
13             (2)  The  document shall be legibly printed in black
14        ink, by hand, type, or computer.   Signatures  and  dates
15        may  be  in  contrasting  colors  if  they will reproduce
16        clearly.
17             (3)  The document shall be on  white  paper  of  not
18        less  than  20-pound weight and shall have a clean margin
19        of at least one-half inch on the  top,  the  bottom,  and
20        each   side.   Margins  may  be  used  for  non-essential
21        notations that  will  not  affect  the  validity  of  the
22        document, including but not limited to form numbers, page
23        numbers, and customer notations.
24             (4)  The  first page of the document shall contain a
25        blank space, measuring at least 3  inches  by  5  inches,
26        from the upper right corner.
27             (5)  The  document  shall  not  have  any attachment
28        stapled or otherwise affixed to any page.
29    A document that does not conform to these standards shall not
30    be  recorded  except  upon  payment  of  the  additional  fee
31    required under this paragraph.  This paragraph, as amended by
32    this amendatory Act of 1995, applies only to documents  dated
33    after the effective date of this amendatory Act of 1995.
34        The  county  board  of  any  county  may  provide  for an
 
                            -10-     LRB093 07696 MKM 07881 b
 1    additional charge of $3 for filing every  instrument,  paper,
 2    or  notice  for  record,  in  order  to  defray  the  cost of
 3    converting the county recorder's document storage  system  to
 4    computers or micrographics.
 5        A  special  fund  shall be set up by the treasurer of the
 6    county and  such  funds  collected  pursuant  to  Public  Act
 7    83-1321 shall be used solely for a document storage system to
 8    provide  the  equipment,  materials  and  necessary  expenses
 9    incurred  to  help  defray  the  costs  of  implementing  and
10    maintaining such a document records system.
11        The   county  board  of  any  county  that  provides  and
12    maintains a countywide map through a  Geographic  Information
13    System  (GIS)  may provide for an additional charge of $3 for
14    filing every instrument, paper, or notice for record in order
15    to  defray  the  cost  of  implementing  or  maintaining  the
16    county's Geographic Information System.  Of that  amount,  $2
17    must be deposited into a special fund set up by the treasurer
18    of  the  county,  and  any  moneys collected pursuant to this
19    amendatory Act of the 91st  General  Assembly  and  deposited
20    into  that  fund  must  be  used  solely  for  the equipment,
21    materials, and necessary expenses  incurred  in  implementing
22    and   maintaining   a   Geographic  Information  System.  The
23    remaining $1 must be deposited into  the  recorder's  special
24    funds  created  under Section 3-5005.4.  The recorder may, in
25    his or her discretion, use moneys in the funds created  under
26    Section  3-5005.4  to  defray  the  cost  of  implementing or
27    maintaining the county's Geographic Information System.
28        The recorder shall collect a $10 surcharge over and above
29    any other fees collected under this Section.  One  dollar  of
30    the surcharge shall be retained by the county in which it was
31    collected.   Nine  dollars  of  the  State surcharge shall be
32    deposited into the Rental Housing  Support  Program  Fund,  a
33    special  fund  created  in  the  State  treasury.  Subject to
34    appropriation, amounts in the Fund may be expended  only  for
 
                            -11-     LRB093 07696 MKM 07881 b
 1    the purpose of funding the Rental Housing Support Program.
 2        The  foregoing  fees  allowed  by  this  Section  are the
 3    maximum fees that may be collected from any officer,  agency,
 4    department or other instrumentality of the State.  The county
 5    board  may,  however, by ordinance, increase the fees allowed
 6    by this Section and collect  such  increased  fees  from  all
 7    persons   and   entities   other   than  officers,  agencies,
 8    departments and other instrumentalities of the State  if  the
 9    increase  is  justified  by  an acceptable cost study showing
10    that the fees allowed by this Section are not  sufficient  to
11    cover  the  cost of providing the service.  Regardless of any
12    other provision in this Section, the maximum fee that may  be
13    collected  from  the  Department  of  Revenue  for  filing or
14    indexing   a   lien,   certificate   of   lien   release   or
15    subordination,  or  any  other  type  of  notice   or   other
16    documentation   affecting   or   concerning  a  lien  is  $5.
17    Regardless of  any  other  provision  in  this  Section,  the
18    maximum  fee  that  may  be  collected from the Department of
19    Revenue for indexing each additional name in  excess  of  one
20    for  any  lien, certificate of lien release or subordination,
21    or any other type of notice or other documentation  affecting
22    or concerning a lien is $1.
23        A  statement  of  the  costs  of  providing each service,
24    program and activity shall be prepared by the  county  board.
25    All  supporting  documents shall be public record and subject
26    to public examination and audit.   All  direct  and  indirect
27    costs,  as  defined in the United States Office of Management
28    and  Budget  Circular  A-87,   may   be   included   in   the
29    determination  of  the  costs  of  each  service, program and
30    activity.
31    (Source: P.A.  91-791,  eff.  6-9-00;  91-886,  eff.  1-1-01;
32    91-893,  eff.  7-1-01;  92-16,  eff.  6-28-01;  92-492,  eff.
33    1-1-02.)
 
                            -12-     LRB093 07696 MKM 07881 b
 1        (55 ILCS 5/4-12002) (from Ch. 34, par. 4-12002)
 2        Sec. 4-12002. Fees of recorder in third  class  counties.
 3    The  fees  of the recorder in counties of the third class for
 4    recording deeds or other instruments in writing and  maps  of
 5    plats  of  additions,  subdivisions  or  otherwise,  and  for
 6    certifying  copies  of  records, shall be paid in advance and
 7    shall be as follows:
 8        For recording deeds or  other  instruments  $20  for  the
 9    first  2  pages  thereof,  plus  $2  for each additional page
10    thereof.  The aggregate minimum fee  for  recording  any  one
11    instrument shall not be less than $20.
12        For  recording  deeds  or  other  instruments wherein the
13    premises affected thereby are referred to by document  number
14    and  not by legal description the recorder shall charge a fee
15    of $4 in addition to that hereinabove referred  to  for  each
16    document number therein noted.
17        For  recording  deeds  or  other instruments wherein more
18    than  one  tract,  parcel  or  lot  is  described  and   such
19    additional  tract,  or tracts, parcel or parcels, lot or lots
20    is or are described therein  as  falling  in  a  separate  or
21    different  addition  or subdivision the recorder shall charge
22    as an additional fee, to that herein provided, the sum of  $2
23    for  each  additional  addition or subdivision referred to in
24    such deed or instrument.
25        For recording maps or plats of additions, subdivisions or
26    otherwise (including the spreading of the same of  record  in
27    well  bound books) $100 plus $2 for each tract, parcel or lot
28    contained therein.
29        For certified copies of records  the  same  fees  as  for
30    recording,  but in no case shall the fee for a certified copy
31    of a map or plat of an  addition,  subdivision  or  otherwise
32    exceed $200.
33        For  filing  of  each  release of any chattel mortgage or
34    trust deed which has been filed  but  not  recorded  and  for
 
                            -13-     LRB093 07696 MKM 07881 b
 1    indexing  the  same  in  the book to be kept for that purpose
 2    $10.
 3        For processing the sworn or affirmed  statement  required
 4    for filing a deed or assignment of a beneficial interest in a
 5    land  trust  in  accordance with Section 3-5020 of this Code,
 6    $2.
 7        The recorder shall charge an additional fee, in an amount
 8    equal to the fee otherwise provided by law, for  recording  a
 9    document  (other  than a document filed under the Plat Act or
10    the Uniform Commercial Code) that does  not  conform  to  the
11    following standards:
12             (1)  The  document  shall  consist  of  one  or more
13        individual sheets measuring 8.5 inches by 11 inches,  not
14        permanently  bound  and  not  a continuous form.  Graphic
15        displays accompanying a  document  to  be  recorded  that
16        measure  up  to  11 inches by 17 inches shall be recorded
17        without charging an additional fee.
18             (2)  The document shall be legibly printed in  black
19        ink,  by  hand,  type, or computer.  Signatures and dates
20        may be in  contrasting  colors  if  they  will  reproduce
21        clearly.
22             (3)  The  document  shall  be  on white paper of not
23        less than 20-pound weight and shall have a  clean  margin
24        of  at  least  one-half  inch on the top, the bottom, and
25        each side.  Margins may be used  only  for  non-essential
26        notations  that  will  not  affect  the  validity  of the
27        document, including but not limited to form numbers, page
28        numbers, and customer notations.
29             (4)  The first page of the document shall contain  a
30        blank  space,  measuring  at  least 3 inches by 5 inches,
31        from the upper right corner.
32             (5)  The document  shall  not  have  any  attachment
33        stapled or otherwise affixed to any page.
34    A document that does not conform to these standards shall not
 
                            -14-     LRB093 07696 MKM 07881 b
 1    be  recorded  except  upon  payment  of  the  additional  fee
 2    required under this paragraph.  This paragraph, as amended by
 3    this  amendatory Act of 1995, applies only to documents dated
 4    after the effective date of this amendatory Act of 1995.
 5        The recorder shall collect a $10 surcharge over and above
 6    any other fees collected under this Section.  One  dollar  of
 7    the surcharge shall be retained by the county in which it was
 8    collected.   Nine  dollars  of  the  State surcharge shall be
 9    deposited into the Rental Housing  Support  Program  Fund,  a
10    special  fund  created  in  the  State  treasury.  Subject to
11    appropriation, amounts in the Fund may be expended  only  for
12    the purpose of funding the Rental Housing Support Program.
13        The  fee  requirements  of this Section apply to units of
14    local government and school districts.
15        Regardless of any other provision in  this  Section,  the
16    maximum  fee  that  may  be  collected from the Department of
17    Revenue for filing or indexing a lien,  certificate  of  lien
18    release  or  subordination,  or  any  other type of notice or
19    other documentation affecting or concerning  a  lien  is  $5.
20    Regardless  of  any  other  provision  in  this  Section, the
21    maximum fee that may be  collected  from  the  Department  of
22    Revenue  for  indexing  each additional name in excess of one
23    for any lien, certificate of lien release  or  subordination,
24    or  any other type of notice or other documentation affecting
25    or concerning a lien is $1.
26    (Source: P.A. 92-492, eff. 1-1-02.)