Illinois General Assembly - Full Text of HB2621
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Full Text of HB2621  102nd General Assembly

HB2621sam003 102ND GENERAL ASSEMBLY

Sen. Mattie Hunter

Filed: 5/28/2021

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 2621

2    AMENDMENT NO. ______. Amend House Bill 2621, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 1. Short title. This Act may be cited as the
6COVID-19 Affordable Housing Grant Program Act.
 
7    Section 5. Purpose and findings. The State of Illinois
8faces a large shortage of decent, affordable rental housing
9for low-income and moderate-income households. The COVID-19
10pandemic has dramatically increased this need for affordable
11housing. The development of affordable housing will help
12Illinois to address the need for more housing, jobs, tax base,
13tax revenue, and population in the State. These funds will
14help developers to overcome increased construction costs
15related to pandemic-created supply shortages (in lumber and
16other materials) and to jump-start a housing recovery in

 

 

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1Illinois in the wake of the pandemic. These funds will also
2incentivize and attract private equity and private lending and
3will allow the State to more fully use and draw down unused
4federal resources for affordable housing. Funding will be used
5for the acquisition, construction, development,
6predevelopment, or rehabilitation of affordable multifamily
7rental development.
 
8    Section 10. Definitions. As used in this Act:
9    "Authority" means the Illinois Housing Development
10Authority.
11    "Disproportionately impacted area" means a census tract or
12comparable geographic area that meets at least one of the
13following criteria, as determined by the Department of
14Commerce and Economic Opportunity:
15        (1) the area has a poverty rate of at least 20%
16    according to the latest federal decennial census;
17        (2) 75% or more of the children in the area
18    participate in the federal free lunch program according to
19    reported statistics from the State Board of Education;
20        (3) at least 20% of the households in the area receive
21    assistance under the Supplemental Nutrition Assistance
22    Program; or
23        (4) the area has an average unemployment rate, as
24    determined by the Department of Employment Security, that
25    is more than 120% of the national unemployment average, as

 

 

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1    determined by the United States Department of Labor, for a
2    period of at least 2 consecutive calendar years preceding
3    the date of the application.
4    "Federal tax credit" means the federal low-income housing
5tax credit provided by Section 42 of the federal Internal
6Revenue Code, including federal low-income housing tax credits
7issued pursuant to 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4).
8    "Qualified development" means a qualified low-income
9housing project, as that term is defined in Section 42 of the
10federal Internal Revenue Code of 1986, that is located in the
11State and is determined to be eligible for the federal tax
12credit set forth in Section 42 of the Internal Revenue Code.
 
13    Section 15. Grant program. Subject to appropriation for
14this purpose, the Authority shall establish an affordable
15housing grant program to encourage the construction and
16rehabilitation of affordable multifamily rental housing in
17response to the COVID-19 pandemic. Funding may be used for the
18acquisition, construction, development, predevelopment, or
19rehabilitation of a qualified development. The goal of the
20grant program shall be to fund the development and
21preservation of up to 3,500 affordable rental homes and
22apartments by December 31, 2024. Project sponsors who wish to
23participate in the affordable housing grant program shall
24submit a grant application to the Authority in accordance with
25rules adopted by the Authority. The Authority shall prescribe,

 

 

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1by rule, standards and procedures for the provision of
2demonstration grant funds in relation to each grant
3application.
 
4    Section 20. Affordable multifamily rental housing gap
5financing. Where a qualified development has been awarded a
6federal tax credit, the recipient may request additional gap
7financing under this grant program as the Authority deems
8appropriate. Through the program, the Authority shall provide
9grants with no expectation of repayment.
 
10    Section 25. Prioritization efforts.
11    (a) The Authority shall make best efforts to prioritize
12grant applications for proposed developments as follows:
13        (1) developments that are located within an area that
14    was disproportionately affected by the COVID-19 pandemic
15    based on the number of positive COVID-19 cases;
16        (2) developments involving contracts with certified
17    disadvantaged business enterprises and certified
18    underrepresented business enterprises owned by minorities,
19    women, veterans, LGBT persons, and persons with
20    disabilities during construction;
21        (3) developments involving project labor agreements
22    with local building trades; and
23        (4) developments involving contracts or subcontracts
24    with a registered apprenticeship program or

 

 

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1    preapprenticeship program.
2    (b) The Authority shall balance the approval of projects
3between those located within a disproportionately impacted
4area as defined under this Act and those located in areas of
5opportunity, as defined or recognized by the Authority.
 
6    Section 30. Annual reporting to the General Assembly.
7    (a) The Authority shall submit an annual report to the
8General Assembly no later than March 31 of each calendar year
9with the first annual report due no later than March 31, 2022.
10    (b) The annual report must describe the grant program's
11administration and the number and type of projects funded as
12of the date of the report with the following information:
13        (1) location of projects and demographics of the
14    surrounding community;
15        (2) accessibility of projects to public
16    transportation, schools, health care, grocery stores, and
17    banking institutions;
18        (3) total number of residential units developed or
19    rehabbed per project;
20        (4) total number of affordable units developed or
21    rehabbed per project;
22        (5) total number of affordable units put into service;
23        (6) number of program applications;
24        (7) number of applications awarded;
25        (8) amount of funding awarded through the program per

 

 

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1    calendar year;
2        (9) amount of funding awarded through the grant
3    program to date;
4        (10) specific data for each prioritization category
5    listed under Section 25;
6        (11) delays or issues with development including, but
7    not limited to, acquisition, zoning and permits, labor,
8    and materials; and
9        (12) any compliance issues with grant recipients and
10    the corrective action taken.
 
11    Section 35. Repeal. This Act is repealed on April 1, 2025.
 
12    Section 900. The Illinois Housing Development Act is
13amended by changing Section 7.28 and 22 as follows:
 
14    (20 ILCS 3805/7.28)
15    Sec. 7.28. Tax credit for donation to sponsors. The
16Authority may administer and adopt rules for an affordable
17housing tax donation credit program to provide tax credits for
18donations as set forth in this Section.
19    (a) In this Section:
20    "Administrative housing agency" means either the Authority
21or an agency of the City of Chicago.
22    "Affordable housing project" means either:
23        (1) (i) a rental project in which at least 25% of the

 

 

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1    units have rents (including tenant-paid heat) that do not
2    exceed, on a monthly basis, maximum gross rent figures, as
3    published by the Authority, that are:
4            (i) based on data published annually by the U.S.
5        Department of Housing and Urban Development; ,
6            (ii) based on the annual income of households
7        earning 60% of the area median income; ,
8            (iii) computed using a 30% of gross monthly income
9        standard; and
10            (iv) adjusted for unit size and at least 25% of the
11        units are occupied by persons and families whose
12        incomes do not exceed 60% of the median family income
13        for the geographic area in which the residential unit
14        is located; or
15        (2) (ii) a unit for sale to homebuyers whose gross
16    household income is at or below (A) 60% of the area median
17    income (for taxable years beginning prior to January 1,
18    2022) or (B) 120% of the area median income (for taxable
19    years beginning on or after January 1, 2022) and who pay no
20    more than 30% of their gross household income for mortgage
21    principal, interest, property taxes, and property
22    insurance (PITI).
23    "Donation" means money, securities, or real or personal
24property that is donated to a not-for-profit sponsor that is
25used solely for costs associated with either (i) purchasing,
26constructing, or rehabilitating an affordable housing project

 

 

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1in this State, (ii) an employer-assisted housing project in
2this State, (iii) general operating support, or (iv) technical
3assistance as defined by this Section.
4    "Employer-assisted housing project" means either
5down-payment assistance, reduced-interest mortgages, mortgage
6guarantee programs, rental subsidies, or individual
7development account savings plans that are provided by
8employers to employees to assist in securing affordable
9housing near the workplace work place, that are restricted to
10housing near the workplace work place, and that are restricted
11to employees whose gross household income is at or below 120%
12of the area median income.
13    "General operating support" means any cost incurred by a
14sponsor that is a part of its general program costs and is not
15limited to costs directly incurred by the affordable housing
16project.
17    "Geographical area" means the metropolitan area or county
18designated as an area by the federal Department of Housing and
19Urban Development under Section 8 of the United States Housing
20Act of 1937, as amended, for purposes of determining fair
21market rental rates.
22    "Median income" means the incomes that are determined by
23the federal Department of Housing and Urban Development
24guidelines and adjusted for family size.
25    "Project" means an affordable housing project, an
26employer-assisted housing project, general operating support,

 

 

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1or technical assistance.
2    "Sponsor" means a not-for-profit organization that (i) is
3organized as a not-for-profit organization under the laws of
4this State or another state and (1) for an affordable housing
5project, has as one of its purposes the development of
6affordable housing; (2) for an employer-assisted housing
7project, has as one of its purposes home ownership education;
8and (3) for a technical assistance project, has as one of its
9purposes either the development of affordable housing or home
10ownership education; (ii) is organized for the purpose of
11constructing or rehabilitating affordable housing units and
12has been issued a ruling from the Internal Revenue Service of
13the United States Department of the Treasury that the
14organization is exempt from income taxation under provisions
15of the Internal Revenue Code; or (iii) is an organization
16designated as a community development corporation by the
17United States government under Title VII of the Economic
18Opportunity Act of 1964.
19    "Tax credit" means a tax credit allowed under Section 214
20of the Illinois Income Tax Act.
21    "Technical assistance" means any cost incurred by a
22sponsor for project planning, assistance with applying for
23financing, or counseling services provided to prospective
24homebuyers.
25    (b) A sponsor must apply to an administrative housing
26agency for approval of the project. The administrative housing

 

 

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1agency must reserve a specific amount of tax credits for each
2approved project. Tax credits for general operating support
3can only be reserved as part of a reservation of tax credits
4for an affordable housing project, an employer-assisted
5housing project, or technical assistance. No tax credits shall
6be allowed for a project without a reservation of such tax
7credits by an administrative housing agency for that project.
8    (c) The Authority must adopt rules establishing criteria
9for eligible costs and donations, issuing and verifying tax
10credits, and selecting projects that are eligible for a tax
11credit.
12    (d) Tax credits for employer-assisted housing projects are
13limited to that pool of tax credits that have been set aside
14for employer-assisted housing. Tax credits for general
15operating support are limited to 10% of the total tax credit
16reservation for the related project (other than general
17operating support) and are also limited to that pool of tax
18credits that have been set aside for general operating
19support. Tax credits for technical assistance are limited to
20that pool of tax credits that have been set aside for technical
21assistance.
22    (e) The amount of tax credits reserved by the
23administrative housing agency for an approved project is
24limited to $32,850,352 in State fiscal years 2022 and 2023 $13
25million in the initial year and shall increase by 5% each
26fiscal year thereafter by 5%. The City of Chicago shall

 

 

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1receive 24.5% of total tax credits authorized for each fiscal
2year. The Authority shall receive the balance of the tax
3credits authorized for each fiscal year. The tax credits may
4be used anywhere in this State. The tax credits have the
5following set-asides:
6        (1) for employer-assisted housing projects, $2
7    million; and
8        (2) for general operating support and technical
9    assistance, $1 million.
10    The balance of the funds must be used for affordable
11housing projects. During the first 9 months of a fiscal year,
12if an administrative housing agency is unable to reserve the
13tax credits set aside for the purposes described in subsection
14(e), the administrative housing agency may reserve the tax
15credits for any approved projects.
16    (f) The administrative housing agency that reserves tax
17credits for an affordable housing project must record against
18the land upon which the affordable housing project is located
19an instrument to assure that the property maintains its
20affordable housing compliance for a minimum of 10 years. The
21Authority has flexibility to assure that the instrument does
22not cause undue hardship on homeowners.
23(Source: P.A. 92-491, eff. 8-23-01; 93-369, eff. 7-24-03.)
 
24    (20 ILCS 3805/22)  (from Ch. 67 1/2, par. 322)
25    Sec. 22. (a) The Authority shall not have outstanding at

 

 

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1any one time bonds and notes for any of its corporate purposes
2in an aggregate principal amount exceeding $7,200,000,000
3$3,600,000,000, excluding bonds and notes issued to refund
4outstanding bonds and notes.
5    (b) Of the authorized aggregate principal amount of
6$7,200,000,000 $3,600,000,000 provided for by this Section,
7the amount of $150,000,000 shall be used for the purposes
8specified in Sections 7.23 and 7.24 of this Act.
9    (c) Of the $1,000,000,000 authorized by this amendatory
10Act of 1985, an amount not less than $100,000,000 shall be
11reserved for financing developments which involve the
12rehabilitation of dwelling accommodations, subject to the
13occupancy reservation of low or moderate income persons or
14families as provided in this Act.
15(Source: P.A. 87-250; 87-884; 88-93.)
 
16    Section 905. The Illinois Procurement Code is amended by
17changing Section 1-10 as follows:
 
18    (30 ILCS 500/1-10)
19    Sec. 1-10. Application.
20    (a) This Code applies only to procurements for which
21bidders, offerors, potential contractors, or contractors were
22first solicited on or after July 1, 1998. This Code shall not
23be construed to affect or impair any contract, or any
24provision of a contract, entered into based on a solicitation

 

 

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1prior to the implementation date of this Code as described in
2Article 99, including, but not limited to, any covenant
3entered into with respect to any revenue bonds or similar
4instruments. All procurements for which contracts are
5solicited between the effective date of Articles 50 and 99 and
6July 1, 1998 shall be substantially in accordance with this
7Code and its intent.
8    (b) This Code shall apply regardless of the source of the
9funds with which the contracts are paid, including federal
10assistance moneys. This Code shall not apply to:
11        (1) Contracts between the State and its political
12    subdivisions or other governments, or between State
13    governmental bodies, except as specifically provided in
14    this Code.
15        (2) Grants, except for the filing requirements of
16    Section 20-80.
17        (3) Purchase of care, except as provided in Section
18    5-30.6 of the Illinois Public Aid Code and this Section.
19        (4) Hiring of an individual as employee and not as an
20    independent contractor, whether pursuant to an employment
21    code or policy or by contract directly with that
22    individual.
23        (5) Collective bargaining contracts.
24        (6) Purchase of real estate, except that notice of
25    this type of contract with a value of more than $25,000
26    must be published in the Procurement Bulletin within 10

 

 

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1    calendar days after the deed is recorded in the county of
2    jurisdiction. The notice shall identify the real estate
3    purchased, the names of all parties to the contract, the
4    value of the contract, and the effective date of the
5    contract.
6        (7) Contracts necessary to prepare for anticipated
7    litigation, enforcement actions, or investigations,
8    provided that the chief legal counsel to the Governor
9    shall give his or her prior approval when the procuring
10    agency is one subject to the jurisdiction of the Governor,
11    and provided that the chief legal counsel of any other
12    procuring entity subject to this Code shall give his or
13    her prior approval when the procuring entity is not one
14    subject to the jurisdiction of the Governor.
15        (8) (Blank).
16        (9) Procurement expenditures by the Illinois
17    Conservation Foundation when only private funds are used.
18        (10) (Blank).
19        (11) Public-private agreements entered into according
20    to the procurement requirements of Section 20 of the
21    Public-Private Partnerships for Transportation Act and
22    design-build agreements entered into according to the
23    procurement requirements of Section 25 of the
24    Public-Private Partnerships for Transportation Act.
25        (12) (A) Contracts for legal, financial, and other
26    professional and artistic services entered into on or

 

 

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1    before December 31, 2018 by the Illinois Finance Authority
2    in which the State of Illinois is not obligated. Such
3    contracts shall be awarded through a competitive process
4    authorized by the members Board of the Illinois Finance
5    Authority and are subject to Sections 5-30, 20-160, 50-13,
6    50-20, 50-35, and 50-37 of this Code, as well as the final
7    approval by the members Board of the Illinois Finance
8    Authority of the terms of the contract.
9        (B) Contracts for legal and financial services entered
10    into by the Illinois Housing Development Authority in
11    connection with the issuance of bonds in which the State
12    of Illinois is not obligated. Such contracts shall be
13    awarded through a competitive process authorized by the
14    members of the Illinois Housing Development Authority and
15    are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,
16    and 50-37 of this Code, as well as the final approval by
17    the members of the Illinois Housing Development Authority
18    of the terms of the contract.
19        (13) Contracts for services, commodities, and
20    equipment to support the delivery of timely forensic
21    science services in consultation with and subject to the
22    approval of the Chief Procurement Officer as provided in
23    subsection (d) of Section 5-4-3a of the Unified Code of
24    Corrections, except for the requirements of Sections
25    20-60, 20-65, 20-70, and 20-160 and Article 50 of this
26    Code; however, the Chief Procurement Officer may, in

 

 

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1    writing with justification, waive any certification
2    required under Article 50 of this Code. For any contracts
3    for services which are currently provided by members of a
4    collective bargaining agreement, the applicable terms of
5    the collective bargaining agreement concerning
6    subcontracting shall be followed.
7        On and after January 1, 2019, this paragraph (13),
8    except for this sentence, is inoperative.
9        (14) Contracts for participation expenditures required
10    by a domestic or international trade show or exhibition of
11    an exhibitor, member, or sponsor.
12        (15) Contracts with a railroad or utility that
13    requires the State to reimburse the railroad or utilities
14    for the relocation of utilities for construction or other
15    public purpose. Contracts included within this paragraph
16    (15) shall include, but not be limited to, those
17    associated with: relocations, crossings, installations,
18    and maintenance. For the purposes of this paragraph (15),
19    "railroad" means any form of non-highway ground
20    transportation that runs on rails or electromagnetic
21    guideways and "utility" means: (1) public utilities as
22    defined in Section 3-105 of the Public Utilities Act, (2)
23    telecommunications carriers as defined in Section 13-202
24    of the Public Utilities Act, (3) electric cooperatives as
25    defined in Section 3.4 of the Electric Supplier Act, (4)
26    telephone or telecommunications cooperatives as defined in

 

 

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1    Section 13-212 of the Public Utilities Act, (5) rural
2    water or waste water systems with 10,000 connections or
3    less, (6) a holder as defined in Section 21-201 of the
4    Public Utilities Act, and (7) municipalities owning or
5    operating utility systems consisting of public utilities
6    as that term is defined in Section 11-117-2 of the
7    Illinois Municipal Code.
8        (16) Procurement expenditures necessary for the
9    Department of Public Health to provide the delivery of
10    timely newborn screening services in accordance with the
11    Newborn Metabolic Screening Act.
12        (17) Procurement expenditures necessary for the
13    Department of Agriculture, the Department of Financial and
14    Professional Regulation, the Department of Human Services,
15    and the Department of Public Health to implement the
16    Compassionate Use of Medical Cannabis Program and Opioid
17    Alternative Pilot Program requirements and ensure access
18    to medical cannabis for patients with debilitating medical
19    conditions in accordance with the Compassionate Use of
20    Medical Cannabis Program Act.
21        (18) This Code does not apply to any procurements
22    necessary for the Department of Agriculture, the
23    Department of Financial and Professional Regulation, the
24    Department of Human Services, the Department of Commerce
25    and Economic Opportunity, and the Department of Public
26    Health to implement the Cannabis Regulation and Tax Act if

 

 

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1    the applicable agency has made a good faith determination
2    that it is necessary and appropriate for the expenditure
3    to fall within this exemption and if the process is
4    conducted in a manner substantially in accordance with the
5    requirements of Sections 20-160, 25-60, 30-22, 50-5,
6    50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,
7    50-36, 50-37, 50-38, and 50-50 of this Code; however, for
8    Section 50-35, compliance applies only to contracts or
9    subcontracts over $100,000. Notice of each contract
10    entered into under this paragraph (18) that is related to
11    the procurement of goods and services identified in
12    paragraph (1) through (9) of this subsection shall be
13    published in the Procurement Bulletin within 14 calendar
14    days after contract execution. The Chief Procurement
15    Officer shall prescribe the form and content of the
16    notice. Each agency shall provide the Chief Procurement
17    Officer, on a monthly basis, in the form and content
18    prescribed by the Chief Procurement Officer, a report of
19    contracts that are related to the procurement of goods and
20    services identified in this subsection. At a minimum, this
21    report shall include the name of the contractor, a
22    description of the supply or service provided, the total
23    amount of the contract, the term of the contract, and the
24    exception to this Code utilized. A copy of any or all of
25    these contracts shall be made available to the Chief
26    Procurement Officer immediately upon request. The Chief

 

 

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1    Procurement Officer shall submit a report to the Governor
2    and General Assembly no later than November 1 of each year
3    that includes, at a minimum, an annual summary of the
4    monthly information reported to the Chief Procurement
5    Officer. This exemption becomes inoperative 5 years after
6    June 25, 2019 (the effective date of Public Act 101-27)
7    this amendatory Act of the 101st General Assembly.
8    Notwithstanding any other provision of law, for contracts
9entered into on or after October 1, 2017 under an exemption
10provided in any paragraph of this subsection (b), except
11paragraph (1), (2), or (5), each State agency shall post to the
12appropriate procurement bulletin the name of the contractor, a
13description of the supply or service provided, the total
14amount of the contract, the term of the contract, and the
15exception to the Code utilized. The chief procurement officer
16shall submit a report to the Governor and General Assembly no
17later than November 1 of each year that shall include, at a
18minimum, an annual summary of the monthly information reported
19to the chief procurement officer.
20    (c) This Code does not apply to the electric power
21procurement process provided for under Section 1-75 of the
22Illinois Power Agency Act and Section 16-111.5 of the Public
23Utilities Act.
24    (d) Except for Section 20-160 and Article 50 of this Code,
25and as expressly required by Section 9.1 of the Illinois
26Lottery Law, the provisions of this Code do not apply to the

 

 

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1procurement process provided for under Section 9.1 of the
2Illinois Lottery Law.
3    (e) This Code does not apply to the process used by the
4Capital Development Board to retain a person or entity to
5assist the Capital Development Board with its duties related
6to the determination of costs of a clean coal SNG brownfield
7facility, as defined by Section 1-10 of the Illinois Power
8Agency Act, as required in subsection (h-3) of Section 9-220
9of the Public Utilities Act, including calculating the range
10of capital costs, the range of operating and maintenance
11costs, or the sequestration costs or monitoring the
12construction of clean coal SNG brownfield facility for the
13full duration of construction.
14    (f) (Blank).
15    (g) (Blank).
16    (h) This Code does not apply to the process to procure or
17contracts entered into in accordance with Sections 11-5.2 and
1811-5.3 of the Illinois Public Aid Code.
19    (i) Each chief procurement officer may access records
20necessary to review whether a contract, purchase, or other
21expenditure is or is not subject to the provisions of this
22Code, unless such records would be subject to attorney-client
23privilege.
24    (j) This Code does not apply to the process used by the
25Capital Development Board to retain an artist or work or works
26of art as required in Section 14 of the Capital Development

 

 

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1Board Act.
2    (k) This Code does not apply to the process to procure
3contracts, or contracts entered into, by the State Board of
4Elections or the State Electoral Board for hearing officers
5appointed pursuant to the Election Code.
6    (l) This Code does not apply to the processes used by the
7Illinois Student Assistance Commission to procure supplies and
8services paid for from the private funds of the Illinois
9Prepaid Tuition Fund. As used in this subsection (l), "private
10funds" means funds derived from deposits paid into the
11Illinois Prepaid Tuition Trust Fund and the earnings thereon.
12(Source: P.A. 100-43, eff. 8-9-17; 100-580, eff. 3-12-18;
13100-757, eff. 8-10-18; 100-1114, eff. 8-28-18; 101-27, eff.
146-25-19; 101-81, eff. 7-12-19; 101-363, eff. 8-9-19; revised
159-17-19.)
 
16    Section 915. The Illinois Income Tax Act is amended by
17changing Section 214 as follows:
 
18    (35 ILCS 5/214)
19    Sec. 214. Tax credit for affordable housing donations.
20    (a) Beginning with taxable years ending on or after
21December 31, 2001 and until the taxable year ending on
22December 31, 2026 December 31, 2021, a taxpayer who makes a
23donation under Section 7.28 of the Illinois Housing
24Development Act is entitled to a credit against the tax

 

 

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1imposed by subsections (a) and (b) of Section 201 in an amount
2equal to 50% of the value of the donation. Partners,
3shareholders of subchapter S corporations, and owners of
4limited liability companies (if the limited liability company
5is treated as a partnership for purposes of federal and State
6income taxation) are entitled to a credit under this Section
7to be determined in accordance with the determination of
8income and distributive share of income under Sections 702 and
9703 and subchapter S of the Internal Revenue Code. Persons or
10entities not subject to the tax imposed by subsections (a) and
11(b) of Section 201 and who make a donation under Section 7.28
12of the Illinois Housing Development Act are entitled to a
13credit as described in this subsection and may transfer that
14credit as described in subsection (c).
15    (b) If the amount of the credit exceeds the tax liability
16for the year, the excess may be carried forward and applied to
17the tax liability of the 5 taxable years following the excess
18credit year. The tax credit shall be applied to the earliest
19year for which there is a tax liability. If there are credits
20for more than one year that are available to offset a
21liability, the earlier credit shall be applied first.
22    (c) The transfer of the tax credit allowed under this
23Section may be made (i) to the purchaser of land that has been
24designated solely for affordable housing projects in
25accordance with the Illinois Housing Development Act or (ii)
26to another donor who has also made a donation in accordance

 

 

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1with Section 7.28 of the Illinois Housing Development Act.
2    (d) A taxpayer claiming the credit provided by this
3Section must maintain and record any information that the
4Department may require by regulation regarding the project for
5which the credit is claimed. When claiming the credit provided
6by this Section, the taxpayer must provide information
7regarding the taxpayer's donation to the project under the
8Illinois Housing Development Act.
9(Source: P.A. 99-915, eff. 12-20-16.)
 
10    Section 920. The Property Tax Code is amended by changing
11Section 10-260 and by adding Section 15-178 as follows:
 
12    (35 ILCS 200/10-260)
13    Sec. 10-260. Low-income housing. In determining the fair
14cash value of property receiving benefits from the Low-Income
15Housing Tax Credit authorized by Section 42 of the Internal
16Revenue Code, 26 U.S.C. 42, emphasis shall be given to the
17income approach, except in those circumstances where another
18method is clearly more appropriate.
19    In counties with more than 3,000,000 inhabitants, during a
20general reassessment year in accordance with Section 9-220 or
21at such other time that a property is reassessed, to determine
22the fair cash value of any low-income housing project that
23qualifies for the Low-Income Housing Tax Credit under Section
2442 of the Internal Revenue Code: (i) in assessing any building

 

 

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1with 7 or more units, the assessment officer must consider the
2actual or projected net operating income attributable to the
3property, capitalized at rates for similarly encumbered
4Section 42 properties; and (ii) in assessing any building with
56 units or less, the assessment officer, prior to finalizing
6and certifying assessments to the Board of Review, shall
7reassess the building considering the actual or projected net
8operating income attributable to the property, capitalized at
9rates for similarly encumbered Section 42 properties. The
10capitalization rate for items (i) and (ii) shall be one that
11reflects the prevailing cost of capital for other types of
12similarly encumbered Section 42 properties in the geographic
13market in which the low-income housing project is located.
14    All low-income housing projects that seek to be assessed
15in accordance with the provisions of this Section shall
16certify to the appropriate local assessment officer that the
17owner or owners qualify for the Low-Income Housing Tax Credit
18under Section 42 of the Internal Revenue Code for the
19property, in a form prescribed by that assessment officer.
20(Source: P.A. 91-502, eff. 8-13-99; 92-16, eff. 6-28-01.)
 
21    (35 ILCS 200/15-178 new)
22    Sec. 15-178. Reduction in assessed value for affordable
23rental housing construction or rehabilitation.
24    (a) The General Assembly finds that there is a shortage of
25high quality affordable rental homes for low-income and

 

 

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1very-low-income households throughout Illinois; that owners
2and developers of rental housing face significant challenges
3building newly constructed apartments or undertaking
4rehabilitation of existing properties that results in rents
5that are affordable for low-income and very-low-income
6households; and that it will help Cook County and other parts
7of Illinois address the extreme shortage of affordable rental
8housing by developing a statewide policy to determine the
9assessed value for newly constructed and rehabilitated
10affordable rental housing that both encourages investment and
11incentivizes property owners to keep rents affordable.
12    (b) Each chief county assessment officer shall implement
13special assessment programs to reduce the assessed value of
14all eligible newly constructed residential real property or
15qualifying rehabilitation to all eligible existing residential
16real property in accordance with subsection (c) for 10 taxable
17years after the newly constructed residential real property or
18improvements to existing residential real property are put in
19service. Any county with less than 3,000,000 inhabitants may
20decide not to implement one or both of the special assessment
21programs defined in subparagraph (1) of subsection (c) of this
22Section and subparagraph (2) of subsection (c) of this Section
23upon passage of an ordinance by a majority vote of the county
24board. Subsequent to a vote to opt out of this special
25assessment program, any county with less than 3,000,000
26inhabitants may decide to implement one or both of the special

 

 

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1assessment programs defined in subparagraph (1) of subsection
2(c) of this Section and subparagraph (2) of subsection (c) of
3this Section upon passage of an ordinance by a majority vote of
4the county board. Property is eligible for the special
5assessment program if and only if all of the following factors
6have been met:
7        (1) at the conclusion of the new construction or
8    qualifying rehabilitation, the property consists of a
9    newly constructed multifamily building containing 7 or
10    more rental dwelling units or an existing multifamily
11    building that has undergone qualifying rehabilitation
12    resulting in 7 or more rental dwelling units; and
13        (2) the property meets the application requirements
14    defined in subsection (f).
15    (c) For those counties that are required to implement the
16special assessment program and do not opt out of such special
17assessment program, the chief county assessment officer for
18that county shall require that residential real property is
19eligible for the special assessment program if and only if one
20of the additional factors have been met:
21        (1) except as defined in subparagraphs (E), (F), and
22    (G) of paragraph (1) of subsection (f) of this Section,
23    prior to the newly constructed residential real property
24    or improvements to existing residential real property
25    being put in service, the owner of the residential real
26    property commits that, for a period of 10 years, at least

 

 

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1    15% of the multifamily building's units will have rents as
2    defined in this Section that are at or below maximum rents
3    and are occupied by households with household incomes at
4    or below maximum income limits; or
5        (2) except as defined in subparagraphs (E), (F), and
6    (G) of paragraph (1) of subsection (f) of this Section,
7    prior to the newly constructed residential real property
8    or improvements to existing residential real property
9    located in a low affordability community being put in
10    service, the owner of the residential real property
11    commits that, for a period of 30 years after the newly
12    constructed residential real property or improvements to
13    existing residential real property are put in service, at
14    least 20% of the multifamily building's units will have
15    rents as defined in this Section that are at or below
16    maximum rents and are occupied by households with
17    household incomes at or below maximum income limits.
18    If a reduction in assessed value is granted under one
19special assessment program provided for in this Section, then
20that same residential real property is not eligible for an
21additional special assessment program under this Section at
22the same time.
23    (d) The amount of the reduction in assessed value for
24residential real property meeting the conditions set forth in
25subparagraph (1) of subsection (c) shall be calculated as
26follows:

 

 

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1        (1) if the owner of the residential real property
2    commits for a period of at least 10 years that at least 15%
3    but fewer than 35% of the multifamily building's units
4    have rents at or below maximum rents and are occupied by
5    households with household incomes at or below maximum
6    income limits, the assessed value of the property used to
7    calculate the tax bill shall be reduced by an amount equal
8    to 25% of the assessed value of the property as determined
9    by the assessor for the property in the current taxable
10    year for the newly constructed residential real property
11    or based on the improvements to an existing residential
12    real property; and
13        (2) if the owner of the residential real property
14    commits for a period of at least 10 years that at least 35%
15    of the multifamily building's units have rents at or below
16    maximum rents and are occupied by households with
17    household incomes at or below maximum income limits, the
18    assessed value of the property used to calculate the tax
19    bill shall be reduced by an amount equal to 35% of the
20    assessed value of the property as determined by the
21    assessor for the property in the current assessment year
22    for the newly constructed residential real property or
23    based on the improvements to an existing residential real
24    property.
25    (e) The amount of the reduction for residential real
26property meeting the conditions set forth in subparagraph (2)

 

 

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1of subsection (c) shall be calculated as follows:
2        (1) for the first, second, and third taxable year
3    after the residential real property is placed in service,
4    the residential real property is entitled to a reduction
5    in its assessed value in an amount equal to the difference
6    between the assessed value in the year for which the
7    incentive is sought and the assessed value for the
8    residential real property in the base year;
9        (2) for the fourth, fifth, and sixth taxable year
10    after the residential real property is placed in service,
11    the property is entitled to a reduction in its assessed
12    value in an amount equal to 80% of the difference between
13    the assessed value in the year for which the incentive is
14    sought and the assessed value for the residential real
15    property in the base year;
16        (3) for the seventh, eighth, and ninth taxable year
17    after the property is placed in service, the residential
18    real property is entitled to a reduction in its assessed
19    value in an amount equal to 60% of the difference between
20    the assessed value in the year for which the incentive is
21    sought and the assessed value for the residential real
22    property in the base year;
23        (4) for the tenth, eleventh, and twelfth taxable year
24    after the residential real property is placed in service,
25    the residential real property is entitled to a reduction
26    in its assessed value in an amount equal to 40% of the

 

 

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1    difference between the assessed value in the year for
2    which the incentive is sought and the assessed value for
3    the residential real property in the base year; and
4        (5) for the thirteenth through the thirtieth taxable
5    year after the residential real property is placed in
6    service, the residential real property is entitled to a
7    reduction in its assessed value in an amount equal to 20%
8    of the difference between the assessed value in the year
9    for which the incentive is sought and the assessed value
10    for the residential real property in the base year.
11    (f) Application requirements.
12        (1) In order to receive the reduced valuation under
13    this Section, the owner must submit an application
14    containing the following information to the chief county
15    assessment officer for review in the form and by the date
16    required by the chief county assessment officer:
17            (A) the owner's name;
18            (B) the postal address and permanent index number
19        or numbers of the parcel or parcels for which the owner
20        is applying to receive reduced valuation under this
21        Section;
22            (C) a deed or other instrument conveying the
23        parcel or parcels to the current owner;
24            (D) written evidence that the new construction or
25        qualifying rehabilitation has been completed with
26        respect to the residential real property, including,

 

 

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1        but not limited to, copies of building permits, a
2        notarized contractor's affidavit, and photographs of
3        the interior and exterior of the building after new
4        construction or rehabilitation is completed;
5            (E) written evidence that the residential real
6        property meets local building codes, or if there are
7        no local building codes, Housing Quality Standards, as
8        determined by the United States Department of Housing
9        and Urban Development;
10            (F) a list identifying the affordable units in
11        residential real property and a written statement that
12        the affordable units are comparable to the market rate
13        units in terms of unit type, number of bedrooms per
14        unit, quality of exterior appearance, energy
15        efficiency, and overall quality of construction;
16            (G) a written schedule certifying the rents in
17        each affordable unit and a written statement that
18        these rents do not exceed the maximum rents allowable
19        for the area in which the residential real property is
20        located;
21            (H) documentation from the administering agency
22        verifying the owner's participation in a qualifying
23        income-based rental subsidy program as defined in
24        subsection (e) of this Section if units receiving
25        rental subsidies are to be counted among the
26        affordable units in order to meet the thresholds

 

 

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1        defined in this Section;
2            (I) a written statement identifying the household
3        income for every household occupying an affordable
4        unit and certifying that the household income does not
5        exceed the maximum income limits allowable for the
6        area in which the residential real property is
7        located;
8            (J) a written statement that the owner has
9        verified and retained documentation of household
10        income for every household occupying an affordable
11        unit; and
12            (K) any additional information consistent with
13        this Section as reasonably required by the chief
14        county assessment officer, including, but not limited
15        to, any information necessary to ensure compliance
16        with applicable local ordinances and to ensure the
17        owner is complying with the provisions of subparagraph
18        (F) of paragraph (4) of subsection (d) of this
19        Section.
20        (1.1) In order for a development to receive the
21    reduced valuation under subsection (e), the owner must
22    provide evidence to the county assessor's office of a
23    fully executed project labor agreement entered into with
24    the applicable local building trades council, prior to
25    commencement of any and all construction, building,
26    renovation, demolition, or any material change to the

 

 

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1    structure or land.
2        (2) The application requirements contained in
3    paragraph (1) of subsection (f) are continuing
4    requirements for the duration of the reduction in assessed
5    value received and may be annually or periodically
6    verified by the chief county assessment officer for the
7    county whereby the benefit is being issued.
8        (3) In lieu of submitting an application containing
9    the information prescribed in paragraph (1) of subsection
10    (f), the chief county assessment officer may allow for
11    submission of a substantially similar certification
12    granted by the Illinois Housing Development Authority or a
13    comparable local authority provided that the chief county
14    assessment officer independently verifies the veracity of
15    the certification with the Illinois Housing Development
16    Authority or comparable local authority.
17        (4) The chief county assessment officer shall notify
18    the owner as to whether or not the property meets the
19    requirements of this Section. If the property does not
20    meet the requirements of this Section, the chief county
21    assessment officer shall provide written notice of any
22    deficiencies to the owner, who shall then have 30 days
23    from the date of notification to provide supplemental
24    information showing compliance with this Section. The
25    chief county assessment officer shall, in its discretion,
26    grant additional time to cure any deficiency. If the owner

 

 

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1    does not exercise this right to cure the deficiency, or if
2    the information submitted, in the sole judgment of the
3    chief county assessment officer, is insufficient to meet
4    the requirements of this Section, the chief county
5    assessment officer shall provide a written explanation of
6    the reasons for denial.
7        (5) The chief county assessment officer may charge a
8    reasonable application fee to offset the administrative
9    expenses associated with the program.
10        (6) The reduced valuation conferred by this Section is
11    limited as follows:
12            (A) The owner is eligible to apply for the reduced
13        valuation conferred by this Section beginning in the
14        first assessment year after the effective date of this
15        amendatory Act of the 102nd General Assembly through
16        December 31, 2027. If approved, the reduction will be
17        effective for the current assessment year, which will
18        be reflected in the tax bill issued in the following
19        calendar year. Owners that are approved for the
20        reduced valuation under paragraph (1) of subsection
21        (c) of this Section before December 31, 2027 shall, at
22        minimum, be eligible for annual renewal of the reduced
23        valuation during an initial 10-year period if annual
24        certification requirements are met for each of the 10
25        years, as described in subparagraph (B) of paragraph
26        (4) of subsection (d) of this Section.

 

 

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1            (B) Property receiving a reduction outlined in
2        paragraph (1) of subsection (c) of this Section shall
3        continue to be eligible for an initial period of up to
4        10 years if annual certification requirements are met
5        for each of the 10 years, but shall be extended for up
6        to 2 additional 10-year periods with annual renewals
7        if the owner continues to meet the requirements of
8        this Section, including annual certifications, and
9        excluding the requirements regarding new construction
10        or qualifying rehabilitation defined in subparagraph
11        (D) of paragraph (1) of this subsection.
12            (C) The annual certification materials in the year
13        prior to final year of eligibility for the reduction
14        in assessed value must include a dated copy of the
15        written notice provided to tenants informing them of
16        the date of the termination if the owner is not seeking
17        a renewal.
18            (D) If the property is sold or transferred, the
19        purchaser or transferee must comply with all
20        requirements of this Section, excluding the
21        requirements regarding new construction or qualifying
22        rehabilitation defined in subparagraph (D) of
23        paragraph (1) of this subsection, in order to continue
24        receiving the reduction in assessed value. Purchasers
25        and transferees who comply with all requirements of
26        this Section excluding the requirements regarding new

 

 

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1        construction or qualifying rehabilitation defined in
2        subparagraph (D) of paragraph (1) of this subsection
3        are eligible to apply for renewal on the schedule set
4        by the initial application.
5            (E) The owner may apply for the reduced valuation
6        if the residential real property meets all
7        requirements of this Section and the newly constructed
8        residential real property or improvements to existing
9        residential real property were put in service on or
10        after January 1, 2015. However, the initial 10-year
11        eligibility period or 30-year eligibility period,
12        depending on the applicable program, shall be reduced
13        by the number of years between the placed in service
14        date and the date the owner first receives this
15        reduced valuation.
16            (F) The owner may apply for the reduced valuation
17        within 2 years after the newly constructed residential
18        real property or improvements to existing residential
19        real property are put in service. However, the initial
20        10-year eligibility period or 30-year eligibility
21        period, depending on the applicable program, shall be
22        reduced for the number of years between the placed in
23        service date and the date the owner first receives
24        this reduced valuation.
25            (G) Owners of a multifamily building receiving a
26        reduced valuation through the Cook County Class 9

 

 

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1        program during the year in which this amendatory Act
2        of the 102nd General Assembly takes effect shall be
3        deemed automatically eligible for the reduced
4        valuation defined in paragraph (1) of subsection (c)
5        of this Section in terms of meeting the criteria for
6        new construction or substantial rehabilitation for a
7        specific multifamily building regardless of when the
8        newly constructed residential real property or
9        improvements to existing residential real property
10        were put in service. If a Cook County Class 9 owner had
11        Class 9 status revoked on or after January 1, 2017 but
12        can provide documents sufficient to prove that the
13        revocation was in error or any deficiencies leading to
14        the revocation have been cured, the chief county
15        assessment officer may deem the owner to be eligible.
16        However, owners may not receive both the reduced
17        valuation under this Section and the reduced valuation
18        under the Cook County Class 9 program in any single
19        assessment year. In addition, the number of years
20        during which an owner has participated in the Class 9
21        program shall count against the 3 10-year periods of
22        eligibility for the reduced valuation as defined in
23        subparagraph (1) of subsection (c) of this Section.
24            (H) At the completion of the assessment reduction
25        period described in this Section: the entire parcel
26        will be assessed as otherwise provided by law.

 

 

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1    (e) As used in this Section:
2    "Affordable units" means units that have rents that do not
3exceed the maximum rents as defined in this Section.
4    "Assessed value for the residential real property in the
5base year" means the value in effect at the end of the taxable
6year prior to the latter of: (1) the date of initial
7application; or (2) the date on which 20% of the total number
8of units in the property are occupied by eligible tenants
9paying eligible rent under this Section.
10    "Household income" includes the annual income for all the
11people who occupy a housing unit that is anticipated to be
12received from a source outside of the family during the
1312-month period following admission or the annual
14recertification, including related family members and all the
15unrelated people who share the housing unit. Household income
16includes the total of the following income sources: wages,
17salaries and tips before any payroll deductions; net business
18income; interest and dividends; payments in lieu of earnings,
19such as unemployment and disability compensation, worker's
20compensation and severance pay; Social Security income,
21including lump sum payments; payments from insurance policies,
22annuities, pensions, disability benefits and other types of
23periodic payments, alimony, child support, and other regular
24monetary contributions; and public assistance, except for
25assistance from the Supplemental Nutrition Assistance Program
26(SNAP). "Household income" does not include: earnings of

 

 

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1children under age 18; temporary income such as cash gifts;
2reimbursement for medical expenses; lump sums from
3inheritance, insurance payments, settlements for personal or
4property losses; student financial assistance paid directly to
5the student or to an educational institution; foster child
6care payments; receipts from government-funded training
7programs; assistance from the Supplemental Nutrition
8Assistance Program (SNAP).
9    "Low affordability community" means (1) a municipality or
10jurisdiction with less than 1,000,000 inhabitants in which 40%
11or less of its total year-round housing units are affordable,
12as determined by the Illinois Housing Development Authority
13during the exemption determination process under the
14Affordable Housing Planning and Appeal Act; (2) "D" zoning
15districts as now or hereafter designated in the Chicago Zoning
16Ordinance; or (3) a jurisdiction located in a municipality
17with 1,000,000 or more inhabitants that has been designated as
18a low affordability community by passage of a local ordinance
19by that municipality, specifying the census tract or property
20by permanent index number or numbers.
21    "Maximum income limits" means the maximum regular income
22limits for 60% of area median income for the geographic area in
23which the multifamily building is located for multifamily
24programs as determined by the United States Department of
25Housing and Urban Development and published annually by the
26Illinois Housing Development Authority.

 

 

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1    "Maximum rent" means the maximum regular rent for 60% of
2the area median income for the geographic area in which the
3multifamily building is located for multifamily programs as
4determined by the United States Department of Housing and
5Urban Development and published annually by the Illinois
6Housing Development Authority. To be eligible for the reduced
7valuation defined in this Section, maximum rents are to be
8consistent with the Illinois Housing Development Authority's
9rules; or if the owner is leasing an affordable unit to a
10household with an income at or below the maximum income limit
11who is participating in qualifying income-based rental subsidy
12program, "maximum rent" means the maximum rents allowable
13under the guidelines of the qualifying income-based rental
14subsidy program.
15    "Qualifying income-based rental subsidy program" means a
16Housing Choice Voucher issued by a housing authority under
17Section 8 of the United States Housing Act of 1937, a tenant
18voucher converted to a project-based voucher by a housing
19authority or any other program administered or funded by a
20housing authority, the Illinois Housing Development Authority,
21another State agency, a federal agency, or a unit of local
22government where participation is limited to households with
23incomes at or below the maximum income limits as defined in
24this Section and the tenants' portion of the rent payment is
25based on a percentage of their income or a flat amount that
26does not exceed the maximum rent as defined in this Section.

 

 

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1    "Qualifying rehabilitation" means, at a minimum,
2compliance with local building codes and the replacement or
3renovation of at least 2 primary building systems to be
4approved for the reduced valuation under paragraph (1) of
5subsection (d) of this Section and at least 5 primary building
6systems to be approved for the reduced valuation under
7subsection (e) of this Section. Although the cost of each
8primary building system may vary, to be approved for the
9reduced valuation under paragraph (1) of subsection (d) of
10this Section, the combined expenditure for making the building
11compliant with local codes and replacing primary building
12systems must be at least $8 per square foot for work completed
13between January 1 of the year in which this amendatory Act of
14the 102nd General Assembly takes effect and December 31 of the
15year in which this amendatory Act of the 102nd General
16Assembly takes effect and, in subsequent years, $8 adjusted by
17the Consumer Price Index for All Urban Consumers, as published
18annually by the U.S. Department of Labor. To be approved for
19the reduced valuation under paragraph (2) of subsection (d) of
20this Section, the combined expenditure for making the building
21compliant with local codes and replacing primary building
22systems must be at least $12.50 per square foot for work
23completed between January 1 of the year in which this
24amendatory Act of the 102nd General Assembly takes effect and
25December 31 of the year in which this amendatory Act of the
26102nd General Assembly takes effect, and in subsequent years,

 

 

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1$12.50 adjusted by the Consumer Price Index for All Urban
2Consumers, as published annually by the U.S. Department of
3Labor. To be approved for the reduced valuation under
4subsection (e) of this Section, the combined expenditure for
5making the building compliant with local codes and replacing
6primary building systems must be at least $60 per square foot
7for work completed between January 1 of the year that this
8amendatory Act of the 102nd General Assembly becomes effective
9and December 31 of the year that this amendatory Act of the
10102nd General Assembly becomes effective and, in subsequent
11years, $60 adjusted by the Consumer Price Index for All Urban
12Consumers, as published annually by the U.S. Department of
13Labor. "Primary building systems", together with their related
14rehabilitations, specifically approved for this program are:
15        (1) Electrical. All electrical work must comply with
16    applicable codes; it may consist of a combination of any
17    of the following alternatives:
18            (A) installing individual equipment and appliance
19        branch circuits as required by code (the minimum being
20        a kitchen appliance branch circuit);
21            (B) installing a new emergency service, including
22        emergency lighting with all associated conduits and
23        wiring;
24            (C) rewiring all existing feeder conduits ("home
25        runs") from the main switchgear to apartment area
26        distribution panels;

 

 

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1            (D) installing new in-wall conduits for
2        receptacles, switches, appliances, equipment, and
3        fixtures;
4            (E) replacing power wiring for receptacles,
5        switches, appliances, equipment, and fixtures;
6            (F) installing new light fixtures throughout the
7        building including closets and central areas;
8            (G) replacing, adding, or doing work as necessary
9        to bring all receptacles, switches, and other
10        electrical devices into code compliance;
11            (H) installing a new main service, including
12        conduit, cables into the building, and main disconnect
13        switch; and
14            (I) installing new distribution panels, including
15        all panel wiring, terminals, circuit breakers, and all
16        other panel devices.
17        (2) Heating. All heating work must comply with
18    applicable codes; it may consist of a combination of any
19    of the following alternatives:
20            (A) installing a new system to replace one of the
21        following heat distribution systems:
22                (i) piping and heat radiating units, including
23            new main line venting and radiator venting; or
24                (ii) duct work, diffusers, and cold air
25            returns; or
26                (iii) any other type of existing heat

 

 

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1            distribution and radiation/diffusion components;
2            or
3            (B) installing a new system to replace one of the
4        following heat generating units:
5                (i) hot water/steam boiler;
6                (ii) gas furnace; or
7                (iii) any other type of existing heat
8            generating unit.
9        (3) Plumbing. All plumbing work must comply with
10    applicable codes. Replace all or a part of the in-wall
11    supply and waste plumbing; however, main supply risers,
12    waste stacks and vents, and code-conforming waste lines
13    need not be replaced.
14        (4) Roofing. All roofing work must comply with
15    applicable codes; it may consist of either of the
16    following alternatives, separately or in combination:
17            (A) replacing all rotted roof decks and
18        insulation; or
19            (B) replacing or repairing leaking roof membranes
20        (10% is the suggested minimum replacement of
21        membrane); restoration of the entire roof is an
22        acceptable substitute for membrane replacement.
23        (5) Exterior doors and windows. Replace the exterior
24    doors and windows. Renovation of ornate entry doors is an
25    acceptable substitute for replacement.
26        (6) Floors, walls, and ceilings. Finishes must be

 

 

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1    replaced or covered over with new material. Acceptable
2    replacement or covering materials are as follows:
3            (A) floors must have new carpeting, vinyl tile,
4        ceramic, refurbished wood finish, or a similar
5        substitute;
6            (B) walls must have new drywall, including joint
7        taping and painting; or
8            (C) new ceilings must be either drywall, suspended
9        type, or a similar material.
10        (7) Exterior walls.
11            (A) replace loose or crumbling mortar and masonry
12        with new material;
13            (B) replace or paint wall siding and trim as
14        needed;
15            (C) bring porches and balconies to a sound
16        condition; or
17            (D) any combination of (A), (B), and (C).
18        (8) Elevators. Where applicable, at least 4 of the
19    following 7 alternatives must be accomplished:
20            (A) replace or rebuild the machine room controls
21        and refurbish the elevator machine (or equivalent
22        mechanisms in the case of hydraulic elevators);
23            (B) replace hoistway electro-mechanical items
24        including: ropes, switches, limits, buffers, levelers,
25        and deflector sheaves (or equivalent mechanisms in the
26        case of hydraulic elevators);

 

 

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1            (C) replace hoistway wiring;
2            (D) replace door operators and linkage;
3            (E) replace door panels at each opening;
4            (F) replace hall stations, car stations, and
5        signal fixtures; or
6            (G) rebuild the car shell and refinish the
7        interior.
8        (9) Health and safety.
9            (A) Install or replace fire suppression systems;
10            (B) install or replace security systems; or
11            (C) environmental remediation of lead-based paint,
12        asbestos, leaking underground storage tanks, or radon.
13        (10) Energy conservation improvements undertaken to
14    limit the amount of solar energy absorbed by a building's
15    roof or to reduce energy use for the property, including,
16    but not limited to, any of the following activities:
17            (A) installing or replacing reflective roof
18        coatings (flat roofs);
19            (B) installing or replacing R-49 roof insulation;
20            (C) installing or replacing R-19 perimeter wall
21        insulation;
22            (D) installing or replacing insulated entry doors;
23            (E) installing or replacing Low E, insulated
24        windows;
25            (F) installing or replacing WaterSense labeled
26        plumbing fixtures;

 

 

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1            (G) installing or replacing 90% or better sealed
2        combustion heating systems;
3            (H) installing Energy Star hot water heaters;
4            (I) installing or replacing mechanical ventilation
5        to exterior for kitchens and baths;
6            (J) installing or replacing Energy Star
7        appliances;
8            (K) installing or replacing Energy Star certified
9        lighting in common areas; or
10            (L) installing or replacing grading and
11        landscaping to promote on-site water retention if the
12        retained water is used to replace water that is
13        provided from a municipal source.
14        (11) Accessibility improvements. All accessibility
15    improvements must comply with applicable codes. An owner
16    may make accessibility improvements to residential real
17    property to increase access for people with disabilities.
18    As used in this paragraph (11), "disability" has the
19    meaning given to that term in the Illinois Human Rights
20    Act. As used in this paragraph (11), "accessibility
21    improvements" means a home modification listed under the
22    Home Services Program administered by the Department of
23    Human Services (Part 686 of Title 89 of the Illinois
24    Administrative Code) including, but not limited to:
25    installation of ramps, grab bars, or wheelchair lifts;
26    widening doorways or hallways; re-configuring rooms and

 

 

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1    closets; and any other changes to enhance the independence
2    of people with disabilities.
3        (12) Any applicant who has purchased the property in
4    an arm's length transaction not more than 90 days before
5    applying for this reduced valuation may use the cost of
6    rehabilitation or repairs required by documented code
7    violations, up to a maximum of $2 per square foot, to meet
8    the qualifying rehabilitation requirements.
 
9    Section 925. The Affordable Housing Planning and Appeal
10Act is amended by changing Sections 15, 25, and 50 and by
11adding Section 70 as follows:
 
12    (310 ILCS 67/15)
13    Sec. 15. Definitions. As used in this Act:
14    "Affordable housing" means housing that has a value or
15cost or rental amount that is within the means of a household
16that may occupy moderate-income or low-income housing. In the
17case of owner-occupied dwelling units, housing that is
18affordable means housing in which mortgage, amortization,
19taxes, insurance, and condominium or association fees, if any,
20constitute no more than 30% of the gross annual household
21income for a household of the size that may occupy the unit. In
22the case of dwelling units for rent, housing that is
23affordable means housing for which the rent, any required
24parking, maintenance, landlord-imposed fees, and utilities

 

 

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1constitute no more than 30% of the gross annual household
2income for a household of the size that may occupy the unit.
3    "Affordable housing developer" means a nonprofit entity,
4limited equity cooperative or public agency, or private
5individual, firm, corporation, or other entity seeking to
6build an affordable housing development.
7    "Affordable housing development" means (i) any housing
8that is subsidized by the federal or State government or (ii)
9any housing in which at least 20% of the dwelling units are
10subject to covenants or restrictions that require that the
11dwelling units be sold or rented at prices that preserve them
12as affordable housing for a period of at least 15 years, in the
13case of owner-occupied housing, and at least 30 years, in the
14case of rental housing.
15    "Approving authority" means the governing body of the
16county or municipality.
17    "Area median household income" means the median household
18income adjusted for family size for applicable income limit
19areas as determined annually by the federal Department of
20Housing and Urban Development under Section 8 of the United
21States Housing Act of 1937.
22    "Community land trust" means a private, not-for-profit
23corporation organized exclusively for charitable, cultural,
24and other purposes and created to acquire and own land for the
25benefit of the local government, including the creation and
26preservation of affordable housing.

 

 

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1    "Development" means any building, construction,
2renovation, or excavation or any material change in any
3structure or land, or change in the use of such structure or
4land, that results in a net increase in the number of dwelling
5units in a structure or on a parcel of land by more than one
6dwelling unit.
7    "Exempt local government" means any local government in
8which at least 10% of its total year-round housing units are
9affordable, as determined by the Illinois Housing Development
10Authority pursuant to Section 20 of this Act; or any
11municipality under 1,000 population.
12    "Household" means the person or persons occupying a
13dwelling unit.
14    "Housing trust fund" means a separate fund, either within
15a local government or between local governments pursuant to
16intergovernmental agreement, established solely for the
17purposes authorized in subsection (d) of Section 25,
18including, without limitation, the holding and disbursing of
19financial resources to address the affordable housing needs of
20individuals or households that may occupy low-income or
21moderate-income housing.
22    "Local government" means a county or municipality.
23    "Low-income housing" means housing that is affordable,
24according to the federal Department of Housing and Urban
25Development, for either home ownership or rental, and that is
26occupied, reserved, or marketed for occupancy by households

 

 

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1with a gross household income that does not exceed 50% of the
2area median household income.
3    "Moderate-income housing" means housing that is
4affordable, according to the federal Department of Housing and
5Urban Development, for either home ownership or rental, and
6that is occupied, reserved, or marketed for occupancy by
7households with a gross household income that is greater than
850% but does not exceed 80% of the area median household
9income.
10    "Non-appealable local government requirements" means all
11essential requirements that protect the public health and
12safety, including any local building, electrical, fire, or
13plumbing code requirements or those requirements that are
14critical to the protection or preservation of the environment.
15(Source: P.A. 98-287, eff. 8-9-13.)
 
16    (310 ILCS 67/25)
17    Sec. 25. Affordable housing plan.
18    (a) Prior to April 1, 2005, all non-exempt local
19governments must approve an affordable housing plan. Any local
20government that is determined by the Illinois Housing
21Development Authority under Section 20 to be non-exempt for
22the first time based on the recalculation of U.S. Census
23Bureau data after 2010 shall have 18 months from the date of
24notification of its non-exempt status to approve an affordable
25housing plan under this Act. On and after the effective date of

 

 

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1this amendatory Act of the 102nd General Assembly, an
2affordable housing plan, or any revision thereof, shall not be
3adopted by a non-exempt local government until notice and
4opportunity for public hearing have first been afforded.
5    (b) For the purposes of this Act, the affordable housing
6plan shall consist of at least the following:
7        (i) a statement of the total number of affordable
8    housing units that are necessary to exempt the local
9    government from the operation of this Act as defined in
10    Section 15 and Section 20;
11        (ii) an identification of lands within the
12    jurisdiction that are most appropriate for the
13    construction of affordable housing and of existing
14    structures most appropriate for conversion to, or
15    rehabilitation for, affordable housing, including a
16    consideration of lands and structures of developers who
17    have expressed a commitment to provide affordable housing
18    and lands and structures that are publicly or
19    semi-publicly owned;
20        (iii) incentives that local governments may provide
21    for the purpose of attracting affordable housing to their
22    jurisdiction; and
23        (iv) a goal of a minimum of 15% of all new development
24    or redevelopment within the local government that would be
25    defined as affordable housing in this Act; or a minimum of
26    a 3 percentage point increase in the overall percentage of

 

 

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1    affordable housing within its jurisdiction, as described
2    in subsection (b) of Section 20 of this Act; or a minimum
3    of a total of 10% affordable housing within its
4    jurisdiction as described in subsection (b) of Section 20
5    of this Act. These goals may be met, in whole or in part,
6    through the creation of affordable housing units under
7    intergovernmental agreements as described in subsection
8    (e) of this Section.
9    (c) Within 60 days after the adoption of an affordable
10housing plan or revisions to its affordable housing plan, the
11local government must submit a copy of that plan to the
12Illinois Housing Development Authority.
13    (d) In order to promote the goals of this Act and to
14maximize the creation, establishment, or preservation of
15affordable housing throughout the State of Illinois, a local
16government, whether exempt or non-exempt under this Act, may
17adopt the following measures to address the need for
18affordable housing:
19        (1) Local governments may individually or jointly
20    create or participate in a housing trust fund or otherwise
21    provide funding or support for the purpose of supporting
22    affordable housing, including, without limitation, to
23    support the following affordable housing activities:
24            (A) Housing production, including, without
25        limitation, new construction, rehabilitation, and
26        adaptive re-use.

 

 

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1            (B) Acquisition, including, without limitation,
2        land, single-family homes, multi-unit buildings, and
3        other existing structures that may be used in whole or
4        in part for residential use.
5            (C) Rental payment assistance.
6            (D) Home-ownership purchase assistance.
7            (E) Preservation of existing affordable housing.
8            (F) Weatherization.
9            (G) Emergency repairs.
10            (H) Housing related support services, including
11        homeownership education and financial counseling.
12            (I) Grants or loans to not-for-profit
13        organizations engaged in addressing the affordable
14        housing needs of low-income and moderate-income
15        households.
16        Local governments may authorize housing trust funds to
17    accept and utilize funds, property, and other resources
18    from all proper and lawful public and private sources so
19    long as those funds are used solely for addressing the
20    affordable housing needs of individuals or households that
21    may occupy low-income or moderate-income housing.
22        (2) A local government may create a community land
23    trust, which may: acquire developed or undeveloped
24    interests in real property and hold them for affordable
25    housing purposes; convey such interests under long-term
26    leases, including ground leases; convey such interests for

 

 

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1    affordable housing purposes; and retain an option to
2    reacquire any such real property interests at a price
3    determined by a formula ensuring that such interests may
4    be utilized for affordable housing purposes.
5        (3) A local government may use its zoning powers to
6    require the creation and preservation of affordable
7    housing as authorized under Section 5-12001 of the
8    Counties Code and Section 11-13-1 of the Illinois
9    Municipal Code.
10        (4) A local government may accept donations of money
11    or land for the purpose of addressing the affordable
12    housing needs of individuals or households that may occupy
13    low-income or moderate-income housing. These donations may
14    include, without limitation, donations of money or land
15    from persons, as long as the donations are demonstrably
16    used to preserve, create, or subsidize low-income housing
17    or moderate-income housing within the jurisdiction in lieu
18    of building affordable housing.
19    (e) In order to encourage regional cooperation and the
20maximum creation of affordable housing in areas lacking such
21housing in the State of Illinois, any non-exempt local
22government may enter into intergovernmental agreements under
23subsection (e) of Section 25 with local governments within 10
24miles of its corporate boundaries in order to create
25affordable housing units to meet the goals of this Act. A
26non-exempt local government may not enter into an

 

 

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1intergovernmental agreement, however, with any local
2government that contains more than 25% affordable housing as
3determined under Section 20 of this Act. All intergovernmental
4agreements entered into to create affordable housing units to
5meet the goals of this Act must also specify the basis for
6determining how many of the affordable housing units created
7will be credited to each local government participating in the
8agreement for purposes of complying with this Act. All
9intergovernmental agreements entered into to create affordable
10housing units to meet the goals of this Act must also specify
11the anticipated number of newly created affordable housing
12units that are to be credited to each local government
13participating in the agreement for purposes of complying with
14this Act. In specifying how many affordable housing units will
15be credited to each local government, the same affordable
16housing unit may not be counted by more than one local
17government.
18    (f) To enforce compliance with the provisions of this
19Section, and to encourage local governments to submit their
20affordable housing plans to the Illinois Housing Development
21Authority in a timely manner, the Illinois Housing Development
22Authority shall notify any local government and may notify the
23Office of the Attorney General that the local government is in
24violation of State law if the Illinois Housing Development
25Authority finds that the affordable housing plan submitted is
26not in substantial compliance with this Section or that the

 

 

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1local government failed to submit an affordable housing plan.
2The Attorney General may enforce this provision of the Act by
3an action for mandamus or injunction or by means of other
4appropriate relief.
5(Source: P.A. 98-287, eff. 8-9-13.)
 
6    (310 ILCS 67/50)
7    Sec. 50. Housing Appeals Board.
8    (a) Prior to January 1, 2008, a Housing Appeals Board
9shall be created consisting of 7 members appointed by the
10Governor as follows:
11        (1) a retired circuit judge or retired appellate
12    judge, who shall act as chairperson;
13        (2) a zoning board of appeals member;
14        (3) a planning board member;
15        (4) a mayor or municipal council or board member;
16        (5) a county board member;
17        (6) an affordable housing developer; and
18        (7) an affordable housing advocate.
19    In addition, the Chairman of the Illinois Housing
20Development Authority, ex officio, shall serve as a non-voting
21member. No more than 4 of the appointed members may be from the
22same political party. Appointments under items (2), (3), and
23(4) shall be from local governments that are not exempt under
24this Act.
25    (b) Initial terms of 4 members designated by the Governor

 

 

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1shall be for 2 years. Initial terms of 3 members designated by
2the Governor shall be for one year. Thereafter, members shall
3be appointed for terms of 2 years. After a member's term
4expires, the member shall continue to serve until a successor
5is appointed. There shall be no limit to the number of terms an
6appointee may serve. A member shall receive no compensation
7for his or her services, but shall be reimbursed by the State
8for all reasonable expenses actually and necessarily incurred
9in the performance of his or her official duties. The board
10shall hear all petitions for review filed under this Act and
11shall conduct all hearings in accordance with the rules and
12regulations established by the chairperson. The Illinois
13Housing Development Authority shall provide space and clerical
14and other assistance that the Board may require.
15    (c) (Blank).
16    (d) To the extent possible, any vacancies in the Housing
17Appeals Board shall be filled within 90 days of the vacancy.
18(Source: P.A. 98-287, eff. 8-9-13.)
 
19    (310 ILCS 67/70 new)
20    Sec. 70. Home rule application. Unless otherwise provided
21under this Act or otherwise in accordance with State law, a
22unit of local government, including a home rule unit, or any
23non-home rule county within the unincorporated territory of
24the county, may not regulate the activities described in this
25Act in a manner more restrictive than the regulation of those

 

 

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1activities by the State under this Act. This Section is a
2limitation under subsection (i) of Section 6 of Article VII of
3the Illinois Constitution on the concurrent exercise by home
4rule units of powers and functions exercised by the State.
 
5    Section 999. Effective date. This Act takes effect upon
6becoming law.".