Full Text of HB5538 98th General Assembly
HB5538ham001 98TH GENERAL ASSEMBLY | Rep. Camille Y. Lilly Filed: 3/19/2014
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| 1 | | AMENDMENT TO HOUSE BILL 5538
| 2 | | AMENDMENT NO. ______. Amend House Bill 5538 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Property Tax Code is amended by changing | 5 | | Section 18-173 as follows:
| 6 | | (35 ILCS 200/18-173)
| 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 area | 12 | | 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
under |
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| 1 | | the United States Housing Act of 1937 to administer a housing | 2 | | choice
voucher
program, or the authorized agent of such a | 3 | | housing authority that is authorized
to
act upon that | 4 | | authority's behalf.
| 5 | | "Housing choice voucher" means a tenant voucher issued by a | 6 | | housing authority
under Section 8 of the United States Housing | 7 | | Act of 1937 and a tenant voucher converted to a project-based | 8 | | voucher by a housing authority.
| 9 | | "Housing opportunity area" means : (1) a census tract | 10 | | located within a county with 200,000 or more but fewer than | 11 | | 3,000,000 inhabitants, where less than 8% of the residents of | 12 | | the census tract live below the poverty level, as defined by | 13 | | the United States government using the 5-year estimates of the | 14 | | poverty rate compiled by the United States Census Bureau in the | 15 | | American Community Survey in the year of the most recent | 16 | | federal decennial census; (2) a census tract located in a | 17 | | county with 3,000,000 or more inhabitants and located in a | 18 | | township that is not located wholly within a municipality with | 19 | | 1,000,000 or more inhabitants, where 8% of the residents of the | 20 | | township in which the census tract is located and 8% of the | 21 | | residents of the census tract live below the poverty level, as | 22 | | defined by the United States government using the 5-year | 23 | | estimates of the poverty rate compiled by the United States | 24 | | Census Bureau in the American Community Survey in the year of | 25 | | the most recent federal decennial census; or (3) a census tract | 26 | | located within a township that is located wholly within a |
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| 1 | | municipality with 1,000,000 or more inhabitants, where less | 2 | | than 12% of the residents of the census tract live below the | 3 | | poverty level, as defined by the United States government using | 4 | | the 5-year estimates of the poverty rate compiled by the United | 5 | | States Census Bureau in the American Community Survey in the | 6 | | year of the most recent federal decennial census. where less | 7 | | than 10% of the
residents live below the poverty level, as | 8 | | defined by the United States
government and determined by the | 9 | | most recent United States census, that is
located within a | 10 | | qualified township, except for census tracts located within any | 11 | | township that is located wholly within a municipality with | 12 | | 1,000,000 or more inhabitants. A census tract that is located | 13 | | within a township that is located wholly within a municipality | 14 | | with 1,000,000 or more inhabitants is considered a housing | 15 | | opportunity area if less than 12% of the residents of the | 16 | | census tract live below the poverty level.
| 17 | | "Housing opportunity unit" means a dwelling unit located in | 18 | | residential
property that is located in a housing opportunity | 19 | | area, that is owned by
the applicant, and that is rented to and | 20 | | occupied by a tenant who is
participating in
a housing choice | 21 | | voucher program administered by a housing authority as of
| 22 | | January 1st of the tax year for which the application is made.
| 23 | | "Qualified units" means the number of housing opportunity | 24 | | units located in
the property with the limitation that no more | 25 | | than 2 units or 20% of
the total units contained within the | 26 | | property, whichever is greater, may be
considered qualified |
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| 1 | | units. Further, no unit may be considered qualified unless
the | 2 | | property in which it is contained is in substantial compliance | 3 | | with local
building codes, and, moreover, no unit may be | 4 | | considered qualified unless it
meets the United States | 5 | | Department of Housing and Urban Development's housing
quality
| 6 | | standards as of the most recent housing authority inspection.
| 7 | | "Qualified township" means a township located within a | 8 | | county with 200,000 or
more inhabitants whose tax capacity | 9 | | exceeds 80% of the average tax capacity of
the county in which | 10 | | it is located, except for townships located within a county
| 11 | | with 3,000,000 or more inhabitants, where a qualified township | 12 | | means a township
whose tax capacity exceeds 115% of the average | 13 | | tax capacity of the county
except for townships located wholly | 14 | | within a municipality with 1,000,000 or
more inhabitants. All | 15 | | townships located wholly within a municipality with
1,000,000 | 16 | | or more inhabitants are considered qualified townships.
| 17 | | "Tax capacity" means the equalized assessed value of all | 18 | | taxable real estate
located within a township or county divided | 19 | | by the total population of that
township or county.
| 20 | | (c) The owner of property located within a housing | 21 | | opportunity area who has
a housing choice voucher contract with | 22 | | a housing authority may apply for a
housing opportunity area | 23 | | tax abatement by annually submitting an application to
the | 24 | | housing authority that administers the housing choice voucher | 25 | | contract. The
application must include the number of housing | 26 | | opportunity units as well as the
total number of dwelling units |
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| 1 | | contained within the property. The owner must,
under oath, | 2 | | self-certify as to the total number of dwelling units in the
| 3 | | property and must self-certify that the property is in | 4 | | substantial compliance
with local building codes. The housing
| 5 | | authority shall annually determine the number of qualified | 6 | | units located within
each property for which an application is | 7 | | made.
| 8 | | The housing authority shall establish rules and procedures | 9 | | governing the
application processes and may charge an | 10 | | application fee. The county clerk may
audit the
applications to | 11 | | determine that the properties subject
to the tax abatement meet | 12 | | the requirements of this Section. The
determination of | 13 | | eligibility of a property for the housing opportunity area
| 14 | | abatement shall be
made annually ; however, no property may | 15 | | receive an abatement for more than 10
tax years .
| 16 | | (d) The housing authority shall determine housing | 17 | | opportunity areas within
its service area and annually deliver | 18 | | to the county clerk, in a manner
determined by the county | 19 | | clerk, a list of all properties containing qualified
units | 20 | | within that service area by December 31st of the tax year for | 21 | | which the
property is eligible for abatement; the list shall | 22 | | include the number of
qualified units and the total number of | 23 | | dwelling units for each property.
| 24 | | The county clerk shall deliver annually to a housing | 25 | | authority, upon
that housing authority's request, the most | 26 | | recent available equalized assessed
value for the county as a |
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| 1 | | whole and for those taxing districts and townships so
specified | 2 | | by the requesting housing authority.
| 3 | | (e) The county clerk shall abate the tax attributed to a | 4 | | portion of the
property determined to be eligible for a housing | 5 | | opportunity area abatement.
The portion eligible for abatement | 6 | | shall be determined by reducing the
equalized assessment value | 7 | | by a percentage calculated using the following
formula: 19% of | 8 | | the equalized assessed value of the property
multiplied by a | 9 | | fraction where the numerator is the number of
qualified units | 10 | | and denominator is the total number of dwelling units
located | 11 | | within the property.
| 12 | | (f) Any municipality, except for municipalities with | 13 | | 1,000,000 or more
inhabitants, may annually petition the county | 14 | | clerk
to be excluded from a housing opportunity area if it is | 15 | | able to demonstrate
that more than 2.5% of the total | 16 | | residential units located within that
municipality are | 17 | | occupied by tenants under the housing choice voucher program.
| 18 | | Properties located within an excluded municipality shall not be | 19 | | eligible for
the housing opportunity area abatement for the tax | 20 | | year in which the petition
is made.
| 21 | | (g) Applicability. This Section applies to tax years 2004 | 22 | | through
2024 2014 , unless extended by law.
| 23 | | (Source: P.A. 96-685, eff. 8-25-09.)
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.".
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