Illinois General Assembly - Full Text of SB0330
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Full Text of SB0330  102nd General Assembly

SB0330sam001 102ND GENERAL ASSEMBLY

Sen. Sara Feigenholtz

Filed: 3/18/2021

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 330

2    AMENDMENT NO. ______. Amend Senate Bill 330 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Housing Development Act is
5amended by adding Section 13.1 as follows:
 
6    (20 ILCS 3805/13.1 new)
7    Sec. 13.1. Form for local agencies. The Authority shall
8develop a form and include it with the final financing
9agreement that summarizes the terms of the financing
10agreement, which should include the following: the length of
11the affordability period guaranteed under the financing
12agreement; a legal description; if then available, the address
13and property index numbers for all applicable property
14contemplated by the agreement; and any other information that
15may be relevant for a local county assessor's office and local
16county and municipal housing development authority to qualify

 

 

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1or evidence eligibility for an applicable reduction in the
2assessed value of an affordable rental housing. This form may
3vary by county only if the Authority deems necessary. The
4nonprofit corporation, housing corporation, limited-profit
5entity, developer, or other entity receiving financing or
6other assistance under this Act shall file the form with the
7local county assessor's office and, where applicable, the
8local county and municipal housing authority for the county in
9which the property is located. No fees shall be levied against
10the nonprofit corporation, housing corporation, limited-profit
11entity, developer, or other entity for filing the form with
12the county assessor's office of local housing authority.
 
13    Section 10. The Property Tax Code is amended by adding
14Section 15-178 as follows:
 
15    (35 ILCS 200/15-178 new)
16    Sec. 15-178. Reduction in assessed value for affordable
17rental housing construction or rehabilitation.
18    (a) The General Assembly finds that there is a shortage of
19high quality affordable rental homes for low-income and
20very-low-income households throughout Illinois; that owners
21and developers of rental housing face significant challenges
22building newly constructed apartments or undertaking
23rehabilitation of existing properties that result in rents
24that are affordable for low-income and very-low-income

 

 

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1households; and that it will help Cook County and other parts
2of Illinois address the extreme shortage of affordable rental
3housing by developing a Statewide policy to determine the
4assessed value for newly constructed and rehabilitated
5affordable rental housing that both encourages investment and
6incentivizes property owners to keep rents affordable.
7    (b) Any county with 3,000,000 or more inhabitants shall
8implement a special assessment program to reduce the assessed
9value of all eligible newly-constructed residential real
10property or qualifying rehabilitation to all eligible existing
11residential real property in accordance with subsection (c)
12for 10 taxable years after the newly constructed residential
13real property or improvements to existing residential real
14property are put in service. Any county with less than
153,000,000 inhabitants may decide not to implement this special
16assessment program upon passage of an ordinance by a majority
17vote of the county board. Subsequent to a vote to opt-out of
18this special assessment program, any county with less than
193,000,000 inhabitants may decide to implement this special
20assessment program upon passage of an ordinance by a majority
21vote of the county board. Property is eligible for the special
22assessment program if and only if all of the following factors
23have been met:
24        (1) the property consists of a newly-constructed
25    multifamily building containing 7 or more rental dwelling
26    units or an existing multifamily building that has

 

 

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1    undergone qualifying rehabilitation resulting in 7 or more
2    rental dwelling units;
3        (2) except as defined in subparagraphs (E), (F), and
4    (G) of paragraph (6) of subsection (d) of this Section,
5    prior to the newly-constructed residential real property
6    or improvements to existing residential real property
7    being put in service, the owner of the residential real
8    property commits that, for a period of 10 years, at least
9    15% of the multifamily building's units will have rents as
10    defined in this Section that are at or below maximum rents
11    and are occupied by households with household incomes at
12    or below maximum income limits; and
13        (3) the property meets the application requirements
14    defined in subsection (d).
15    (c) The amount of the reduction shall be calculated as
16follows:
17        (1) if the owner of the residential real property
18    commits for a period of at least 10 years that at least 15%
19    but fewer than 35% of the multifamily building's units
20    have rents at or below maximum rents and are occupied by
21    households with household incomes at or below maximum
22    income limits, the assessed value of the property used to
23    calculate the tax bill shall be reduced by an amount equal
24    to 25% of the assessed value of the property as initially
25    determined by the assessor for the property in the current
26    taxable year for the newly-constructed residential real

 

 

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1    property or based on the improvements to an existing
2    residential real property; and
3        (2) if the owner of the residential real property
4    commits for a period of at least 10 years that at least 35%
5    of the multifamily building's units have rents at or below
6    maximum rents and are occupied by households with
7    household incomes at or below maximum income limits, the
8    assessed value of the property used to calculate the tax
9    bill shall be reduced by an amount equal to 35% of the
10    assessed value of the property as initially determined by
11    the assessor for the property in the current assessment
12    year for the newly constructed residential real property
13    or based on the improvements to an existing residential
14    real property.
15    (d) Application requirements.
16        (1) In order to receive the reduced valuation under
17    this Section, the owner must submit an application
18    containing the following information to the chief county
19    assessment officer for review in the form required by the
20    chief county assessment officer:
21            (A) the owner's name;
22            (B) the postal address and permanent index number
23        or numbers of the parcel or parcels for which the owner
24        is applying to receive reduced valuation under this
25        Section;
26            (C) a deed or other instrument conveying the

 

 

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1        parcel or parcels to the current owner;
2            (D) written evidence that the new construction or
3        qualifying rehabilitation has been completed with
4        respect to the residential real property, including,
5        but not limited to, copies of building permits, a
6        notarized contractor's sworn affidavit, and
7        photographs of the interior and exterior of the
8        building after new construction or rehabilitation is
9        completed;
10            (E) written evidence that the residential real
11        property meets local building codes, or if there are
12        no local building codes, Housing Quality Standards, as
13        determined by the United States Department of Housing
14        and Urban Development;
15            (F) a list identifying the affordable units in
16        residential real property and a written statement that
17        the affordable units are comparable to the market rate
18        units in terms of unit type, number of bedrooms per
19        unit, quality of exterior appearance, energy
20        efficiency, and overall quality of construction;
21            (G) a written schedule certifying the rents in
22        each affordable unit and a written statement that
23        these rents do not exceed the maximum rents allowable
24        for the area in which the residential real property is
25        located;
26            (H) documentation from the administering agency

 

 

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1        verifying the owner's participation in a qualifying
2        income-based rental subsidy program as defined in
3        subsection (e) of this Section if units receiving
4        rental subsidies are to be counted among the
5        affordable units in order to meet the thresholds
6        defined in this Section;
7            (I) a written statement identifying the household
8        income for every household occupying an affordable
9        unit and certifying that the household income does not
10        exceed the maximum income limits allowable for the
11        area in which the residential real property is
12        located;
13            (J) a written statement that the owner has
14        verified and retained documentation of household
15        income for every household occupying an affordable
16        unit; and
17            (K) any additional information consistent with
18        this Section as reasonably required by the chief
19        county assessment officer, including, but not limited
20        to, any information necessary to ensure compliance
21        with applicable local ordinances and to ensure the
22        owner is complying with the provisions of subparagraph
23        (F) of paragraph (4) of subsection (d) of this
24        Section.
25        (2) The application requirements contained in
26    subparagraphs (A), (B), (C), (F), (G), (H), (I), (J), and

 

 

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

 

 

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1    meet the requirements of this Section, the chief county
2    assessment officer shall provide a written explanation of
3    the reasons for denial.
4        (5) The chief county assessment officer may charge a
5    reasonable application fee to offset the administrative
6    expenses associated with the program.
7        (6) The reduced valuation conferred by this Section is
8    limited as follows:
9            (A) The owner is eligible to apply for the reduced
10        valuation conferred by this Section beginning in the
11        first assessment cycle after the effective date of
12        this amendatory Act of the 102nd General Assembly
13        through December 31, 2031. If approved, the reduction
14        will be effective for the current assessment year,
15        which will be reflected in the tax bill issued in the
16        following calendar year. Owners that are approved for
17        the reduced valuation under this Section before
18        December 31, 2031 shall, at minimum, be eligible for
19        annual renewal of the reduced valuation during an
20        initial 10-year period if annual certification
21        requirements are met for each of the 10 years, as
22        described in subparagraph (B) of this paragraph (6) of
23        this Section until December 31, 2041.
24            (B) Property receiving a reduction outlined in
25        this Section shall continue to be eligible for an
26        initial period of up to 10 years if annual

 

 

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

 

 

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1        by the initial application.
2            (E) The owner may apply for the reduced valuation
3        if the residential real property meets all
4        requirements of this Section and the newly-constructed
5        residential real property or improvements to existing
6        residential real property were put in service on or
7        after January 1, 2015. However, the initial 10-year
8        eligibility period shall be reduced by the number of
9        years between the placed in service date and the date
10        the owner first receives this reduced valuation.
11            (F) The owner may apply for the reduced valuation
12        within 2 years after the newly-constructed residential
13        real property or improvements to existing residential
14        real property are put in service. However, the initial
15        10 year eligibility period shall be reduced for the
16        number of years between the placed in service date and
17        the date the owner first receives this reduced
18        valuation.
19            (G) Owners of a multifamily building receiving a
20        reduced valuation through the Cook County Class 9
21        program during the year in which this amendatory Act
22        of the 102nd General Assembly takes effect shall be
23        deemed automatically eligible for the reduced
24        valuation defined in this Section in terms of meeting
25        the criteria for new construction or substantial
26        rehabilitation for a specific multifamily building

 

 

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1        regardless of when the newly-constructed residential
2        real property or improvements to existing residential
3        real property were put in service. If a Cook County
4        Class 9 owner had Class 9 status revoked on or after
5        January 1, 2017 but can provide documents sufficient
6        to prove that the revocation was in error or any
7        deficiencies leading to the revocation have been
8        cured, the chief county assessment officer may deem
9        the owner to be eligible. However, owners may not
10        receive the both the reduced valuation under this
11        Section and the reduced valuation under the Cook
12        County Class 9 program in any single assessment year.
13        In addition, the number of years during which an owner
14        has participated in the Class 9 program shall count
15        against the number of remaining years eligible for the
16        reduced valuation as defined in this Section.
17            (H) At the completion of the assessment reduction
18        period described in this Section, the entire parcel
19        will be assessed as otherwise provided in State law.
20    (e) For the purposes of this Section,
21    "Affordable units" means units that have rents that do not
22exceed the maximum rents as defined in this Section.
23    "Household income" includes the annual income for all the
24people who occupy a housing unit that is anticipated to be
25received from a source outside of the family during the
2612-month period following admission or the annual

 

 

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1recertification, including related family members and all the
2unrelated people who share the housing unit. Household income
3includes the sum total of the following income sources: wages,
4salaries and tips before any payroll deductions; net business
5income; interest and dividends; payments in lieu of earnings,
6such as unemployment and disability compensation, worker's
7compensation and severance pay; Social Security income,
8including lump sum payments; payments from insurance policies,
9annuities, pensions, disability benefits and other types of
10periodic payments, alimony, child support, and other regular
11monetary contributions; and public assistance, except for
12assistance from the Supplemental Nutrition Assistance Program
13(SNAP). "Household income" does not include: earnings of
14children under age 18; temporary income such as cash gifts;
15reimbursement for medical expenses; lump sums from
16inheritance, insurance payments, settlements for personal or
17property losses; student financial assistance paid directly to
18the student or to an educational institution; foster child
19care payments; receipts from government-funded training
20programs; assistance from the Supplemental Nutrition
21Assistance Program (SNAP).
22    "Maximum income limits" means the maximum regular income
23limits for 60% of area median income for the geographic area in
24which the multifamily building is located for multifamily
25programs as determined by the United States Department of
26Housing and Urban Development and published annually by the

 

 

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1Illinois Housing Development Authority.
2    "Maximum rent" means the maximum regular rent for 60% of
3the area median income for the geographic area in which the
4multifamily building is located for multifamily programs as
5determined by the United States Department of Housing and
6Urban Development and published annually by the Illinois
7Housing Development Authority. To be eligible for the reduced
8valuation defined in this Section, maximum rents are to be
9consistent with the Illinois Housing Development Authority's
10rules; or if the owner is leasing an affordable unit to a
11household with an income at or below the maximum income limit
12who is participating in qualifying income-based rental subsidy
13program, "maximum rent" means the maximum rents allowable
14under the guidelines of the qualifying income-based rental
15subsidy program.
16    "Qualifying income-based rental subsidy program" means a
17Housing Choice Voucher issued by a housing authority under
18Section 8 of the United States Housing Act of 1937, a tenant
19voucher converted to a project-based voucher by a housing
20authority or any other program administered or funded by a
21housing authority, the Illinois Housing Development Authority,
22another State agency, a federal agency, or a unit of local
23government where participation is limited to households with
24incomes at or below the maximum income limits as defined in
25this Section and the tenants' portion of the rent payment is
26based on a percentage of their income or a flat amount that

 

 

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1does not exceed the maximum rent as defined in this Section.
2    "Qualifying rehabilitation" means, at a minimum,
3compliance with local building codes and the replacement or
4renovation of at least 2 primary building systems. Although
5the cost of each primary building system may vary, to be
6approved for the reduced valuation under paragraph (1) of
7subsection (c) of this Section, the combined expenditure for
8making the building compliant with local codes and replacing
9primary building systems must be at least $8 per square foot
10for work completed between January 1 of the year in which this
11amendatory Act of the 102nd General Assembly takes effect and
12December 31 of the year in which this amendatory Act of the
13102nd General Assembly takes effect and in subsequent years,
14$8 adjusted by the Consumer Price Index for All Urban
15Consumers, as published annually by the U.S. Department of
16Labor. To be approved for the reduced valuation under
17paragraph (2) of subsection (c) of this Section, the combined
18expenditure for making the building compliant with local codes
19and replacing primary building systems must be at least $12.50
20per square foot for work completed between January 1 of the
21year in which this amendatory Act of the 102nd General
22Assembly takes effect and December 31 of the year in which this
23amendatory Act of the 102nd General Assembly takes effect, and
24in subsequent years, $12.50 adjusted by the Consumer Price
25Index for All Urban Consumers, as published annually by the
26U.S. Department of Labor. Primary building systems, together

 

 

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1with their related rehabilitations, specifically approved for
2this program are:
3        (1) Electrical. All electrical work must comply with
4    applicable codes; it may consist of a combination of any
5    of the following alternatives:
6            (A) installing individual equipment and appliance
7        branch circuits as required by code (the minimum being
8        a kitchen appliance branch circuit);
9            (B) installing a new emergency service, including
10        emergency lighting with all associated conduits and
11        wiring;
12            (C) rewiring all existing feeder conduits ("home
13        runs") from the main switchgear to apartment area
14        distribution panels;
15            (D) installing new in-wall conduits for
16        receptacles, switches, appliances, equipment, and
17        fixtures;
18            (E) replacing power wiring for receptacles,
19        switches, appliances, equipment, and fixtures;
20            (F) installing new light fixtures throughout the
21        building including closets and central areas;
22            (G) replacing, adding, or doing work as necessary
23        to bring all receptacles, switches, and other
24        electrical devices into code compliance;
25            (H) installing a new main service, including
26        conduit, cables into the building, and main disconnect

 

 

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1        switch; and
2            (I) installing new distribution panels, including
3        all panel wiring, terminals, circuit breakers, and all
4        other panel devices.
5        (2) Heating. All heating work must comply with
6    applicable codes; it may consist of a combination of any
7    of the following alternatives:
8            (A) installing a new system to replace one of the
9        following heat distribution systems:
10                (i) piping and heat radiating units, including
11            new main line venting and radiator venting; or
12                (ii) duct work, diffusers, and cold air
13            returns; or
14                (iii) any other type of existing heat
15            distribution and radiation/diffusion components;
16            or
17            (B) installing a new system to replace one of the
18        following heat generating units:
19                (i) hot water/steam boiler;
20                (ii) gas furnace; or
21                (iii) any other type of existing heat
22            generating unit.
23        (3) Plumbing. All plumbing work must comply with
24    applicable codes. Replace all or a part of the in-wall
25    supply and waste plumbing; however, main supply risers,
26    waste stacks and vents, and code-conforming waste lines

 

 

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1    need not be replaced.
2        (4) Roofing. All roofing work must comply with
3    applicable codes; it may consist of either of the
4    following alternatives, separately or in combination:
5            (A) replacing all rotted roof decks and
6        insulation; or
7            (B) replacing or repairing leaking roof membranes
8        (10% is the suggested minimum replacement of
9        membrane); restoration of the entire roof is an
10        acceptable substitute for membrane replacement.
11        (5) Exterior doors and windows. Replace the exterior
12    doors and windows. Renovation of ornate entry doors is an
13    acceptable substitute for replacement.
14        (6) Floors, walls, and ceilings. Finishes must be
15    replaced or covered over with new material. Acceptable
16    replacement or covering materials are as follows:
17            (A) floors must have new carpeting, vinyl tile,
18        ceramic, refurbished wood finish, or a similar
19        substitute;
20            (B) walls must have new drywall, including joint
21        taping and painting; or
22            (C) new ceilings must be either drywall, suspended
23        type, or a similar
24        (7) Exterior walls.
25            (A) replace loose or crumbling mortar and masonry
26        with new material;

 

 

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1            (B) replace or paint wall siding and trim as
2        needed;
3            (C) bring porches and balconies to a sound
4        condition; or
5            (D) any combination of (A), (B), and (C).
6        (8) Elevators. Where applicable, at least 4 of the
7    following 7 alternatives must be accomplished:
8            (A) replace or rebuild the machine room controls
9        and refurbish the elevator machine (or equivalent
10        mechanisms in the case of hydraulic elevators);
11            (B) replace hoistway electro-mechanical items
12        including: ropes, switches, limits, buffers, levelers,
13        and deflector sheaves (or equivalent mechanisms in the
14        case of hydraulic elevators);
15            (C) replace hoistway wiring;
16            (D) replace door operators and linkage;
17            (E) replace door panels at each opening;
18            (F) replace hall stations, car stations, and
19        signal fixtures; or
20            (G) rebuild the car shell and refinish the
21        interior.
22        (9) Health and safety.
23            (A) install or replace fire suppression systems;
24            (B) install or replace security systems; or
25            (C) environmental remediation of lead-based paint,
26        asbestos, leaking underground storage tanks, or radon.

 

 

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1        (10) Energy conservation improvements undertaken to
2    limit the amount of solar energy absorbed by a building's
3    roof or to reduce energy use for the property, including,
4    but not limited to, any of the following activities:
5            (A) installing or replacing reflective roof
6        coatings (flat roofs);
7            (B) installing or replacing R-49 roof insulation;
8            (C) installing or replacing R-19 perimeter wall
9        insulation;
10            (D) installing or replacing insulated entry doors;
11            (E) installing or replacing Low E, insulated
12        windows;
13            (F) installing or replacing WaterSense labeled
14        plumbing fixtures;
15            (G) installing or replacing 90% or better sealed
16        combustion heating systems;
17            (H) installing Energy Star hot water heaters;
18            (I) installing or replacing mechanical ventilation
19        to exterior for kitchens and baths;
20            (J) installing or replacing Energy Star
21        appliances;
22            (K) installing or replacing Energy Star certified
23        lighting in common areas; or
24            (L) installing or replacing grading and
25        landscaping to promote on-site water retention if the
26        retained water is used to replace water that is

 

 

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1        provided from a municipal source.
2        (11) Accessibility improvements. All accessibility
3    improvements must comply with applicable codes. An owner
4    may make accessibility improvements to residential real
5    property to increase access for people with disabilities.
6    As used in this paragraph (11), "disability" has the
7    meaning given to that term in the Illinois Human Rights
8    Act. As used in this paragraph (11), "accessibility
9    improvements" means a home modification listed under the
10    Home Services Program administered by the Department of
11    Human Services (Part 686 of Title 89 of the Illinois
12    Administrative Code) including, but not limited to:
13    installation of ramps, grab bars, or wheelchair lifts;
14    widening doorways or hallways; re-configuring rooms and
15    closets; and any other changes to enhance the independence
16    of people with disabilities.
17        (12) Any applicant who has purchased the property in
18    an arm's length transaction not more than 90 days before
19    applying for this reduced valuation may use the cost of
20    rehabilitation or repairs required by documented code
21    violations, up to a maximum of $2 per square foot, to meet
22    the qualifying rehabilitation requirements.
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.".