Full Text of SB3531 96th General Assembly
SB3531eng 96TH GENERAL ASSEMBLY
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| AN ACT concerning State government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Housing Development Act is amended | 5 |
| by changing Section 7.28 as follows:
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| (20 ILCS 3805/7.28)
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| Sec. 7.28. Tax credit for donation to sponsors. The | 8 |
| Authority may administer and adopt rules
for
an affordable | 9 |
| housing tax donation credit program to provide tax credits for
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| donations as set forth in this
Section.
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| (a) In this Section:
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| "Administrative housing agency" means either the | 13 |
| Authority , or an agency of the City of Chicago , or the Chicago | 14 |
| Board of Education .
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| "Affordable housing project" means either (i) a rental | 16 |
| project in which at
least 25% of the units have rents | 17 |
| (including tenant-paid heat) that do not
exceed, on a monthly | 18 |
| basis,
maximum gross rent figures, as published by the | 19 |
| Authority, that are: (i)
based
on data published annually by | 20 |
| the U.S. Department of Housing and Urban
Development, (ii) | 21 |
| based on the annual income of households earning 60% of the
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| area median income, (iii) computed using a 30% of gross monthly
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| income
standard and (iv) adjusted for unit size and at least |
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| 25% of the units are
occupied by persons and families whose | 2 |
| incomes do not exceed 60% of the median
family income for the | 3 |
| geographic area in which the residential unit is located
or | 4 |
| (ii) a unit for sale to homebuyers whose gross household income | 5 |
| is at or
below 60% of the area median income and who pay no more | 6 |
| than 30% of their gross
household income for mortgage | 7 |
| principal, interest, property taxes, and
property insurance | 8 |
| (PITI).
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| "Donation" means money, securities, or real or personal | 10 |
| property that is
donated to a not-for-profit sponsor that is | 11 |
| used solely for costs associated
with either (i) purchasing, | 12 |
| constructing, or rehabilitating an affordable
housing project | 13 |
| in this State, (ii) an employer-assisted housing project in
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| this State, (iii) general operating support, or (iv) technical | 15 |
| assistance as
defined by this Section.
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| "Employer-assisted housing project" means either | 17 |
| down-payment assistance,
reduced-interest mortgages, mortgage | 18 |
| guarantee programs, rental subsidies, or
individual | 19 |
| development account savings plans that are provided by | 20 |
| employers to
employees to assist in securing affordable housing | 21 |
| near the work place, that
are restricted to housing near the | 22 |
| work place, and that are restricted to
employees whose gross | 23 |
| household income is at or below 120% of the area median
income.
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| "General operating support" means any cost incurred by a | 25 |
| sponsor that is a
part of its general program costs and is not | 26 |
| limited to costs directly incurred
by the affordable housing |
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| project.
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| "Geographical area" means the metropolitan area or county | 3 |
| designated as an
area by the federal Department of Housing and | 4 |
| Urban Development under Section 8
of the United States Housing | 5 |
| Act of 1937, as amended, for purposes of
determining fair | 6 |
| market rental rates.
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| "Median income" means the incomes that are determined by | 8 |
| the federal
Department of Housing and Urban Development | 9 |
| guidelines and adjusted for family
size.
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| "Project" means an affordable housing project, an | 11 |
| employer-assisted housing
project, general operating support, | 12 |
| or technical assistance.
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| "Sponsor" means a not-for-profit organization that (i) is | 14 |
| organized as a
not-for-profit organization under the laws of | 15 |
| this State or another
state and (1) for an affordable housing | 16 |
| project, has as one of its purposes the
development of | 17 |
| affordable housing; (2) for an employer-assisted housing
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| project, has as one of its purposes home ownership education; | 19 |
| and (3) for a
technical assistance project, has as one of
its | 20 |
| purposes either the development of affordable housing or home | 21 |
| ownership
education; (ii) is organized
for the purpose of | 22 |
| constructing or rehabilitating affordable housing units and
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| has
been issued a ruling from the Internal Revenue Service of | 24 |
| the United States
Department of the Treasury that the | 25 |
| organization is exempt from income taxation
under provisions of | 26 |
| the Internal Revenue Code; or (iii) is an organization
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| designated as a community development corporation by the United | 2 |
| States
government under Title VII of the Economic Opportunity | 3 |
| Act of 1964.
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| "Tax credit" means a tax credit allowed under Section 214 | 5 |
| of the Illinois
Income Tax Act.
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| "Technical assistance" means any cost incurred by a sponsor | 7 |
| for project
planning, assistance with applying for financing, | 8 |
| or counseling services
provided to prospective homebuyers.
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| (b) A sponsor must apply to an administrative housing | 10 |
| agency for approval of the project. The
administrative housing
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| agency must reserve a specific amount of tax credits for each | 12 |
| approved project.
Tax credits for general operating support can | 13 |
| only be reserved as part of a
reservation of tax credits for an | 14 |
| affordable housing project, an
employer-assisted housing | 15 |
| project, or technical assistance. No tax credits
shall be | 16 |
| allowed for a project without a reservation of such tax credits | 17 |
| by an
administrative housing agency for that project.
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| (c) The Authority must adopt rules
establishing
criteria | 19 |
| for eligible costs and donations, issuing and verifying tax | 20 |
| credits,
and selecting projects that are eligible for a tax
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| credit.
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| (d) Tax credits for employer-assisted housing projects are | 23 |
| limited to
that pool of
tax credits that have been set aside | 24 |
| for employer-assisted housing. Tax
credits for general | 25 |
| operating support are limited to 10% of the total tax
credit | 26 |
| reservation for the related project (other than general |
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| operating
support) and are also limited to that pool of
tax
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| credits that have been set aside for general operating support. | 3 |
| Tax credits
for technical assistance are limited to that pool | 4 |
| of tax credits that have been
set aside for technical | 5 |
| assistance.
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| (e) The amount of tax credits reserved by the | 7 |
| administrative housing agency
for an approved project is | 8 |
| limited to $13 million in the initial year and shall
increase | 9 |
| each year by 5%. The City of Chicago and the Chicago Board of | 10 |
| Education shall receive 21.5% and 3%, respectively, 24.5% of | 11 |
| the total tax
credits authorized for each fiscal year. The
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| Authority shall receive the balance of the tax credits | 13 |
| authorized for each
fiscal year. The tax credits may be used | 14 |
| anywhere in this State.
The tax
credits have the following | 15 |
| set-asides:
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| (1) for employer-assisted housing projects, $2 | 17 |
| million; and
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| (2) for general operating support and technical | 19 |
| assistance, $1 million.
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| The balance of the funds must be used for affordable | 21 |
| housing
projects.
During the first 9 months of a fiscal year, | 22 |
| if an administrative housing
agency is unable to reserve the | 23 |
| tax credits set aside for the purposes
described in
subsection | 24 |
| (e), the administrative housing agency may reserve the tax | 25 |
| credits
for any approved projects.
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| (f) The administrative housing agency that reserves tax |
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| credits for an
affordable housing project must record
against | 2 |
| the land upon which the affordable housing project is located | 3 |
| an
instrument to assure that
the property maintains its | 4 |
| affordable housing compliance for a minimum of 10
years. The | 5 |
| Authority has flexibility to assure that the instrument
does
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| not cause undue hardship on homeowners.
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| (Source: P.A. 92-491, eff. 8-23-01; 93-369, eff. 7-24-03.)
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