Illinois General Assembly - Full Text of SB3512
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Full Text of SB3512  100th General Assembly




State of Illinois
2017 and 2018


Introduced 2/16/2018, by Sen. Mattie Hunter


See Index

    Creates the Rent Control Act. Establishes County Rent Control Boards in every county on the date all initial members of a Board are elected and qualified. Provides for nomination and election of Board members. Includes provisions relating to qualifications of members, vacancy of a Board member seat, and meetings of a Board. Provides for duties of a Board, including establishing countywide rent-controlled amounts for renting to households of specified income levels and calculating an average rent for dwellings in the county. Provides that a Board must establish regulations concerning rent for households of specified income levels, including: restrictions on increasing rent-controlled amounts; notice to tenants before increasing rent; creation of a reserve account by property owners for repairs and capital improvements; and other regulations. Defines terms. Limits home rule powers. Amends the Election Code by making conforming changes relating to the election of Board members. Amends the Illinois Income Tax Act. Adds an income tax credit equal to the difference between the rent-controlled amount and the average rent established by a County Rent Control Board and an income tax credit for an amount equal to the amount of capital improvements to property a taxpayer owns and rents to households of specified income levels. Repeals the Rent Control Preemption Act.

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SB3512LRB100 19917 AWJ 35197 b

1    AN ACT concerning local government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the Rent
5Control Act.
6    Section 5. Definitions. As used in this Act:
7    "Average rent" means the average of the rents charged for
8dwellings with the same number of bedrooms.
9    "Board" means a County Rent Control Board.
10    "Consumer price index-u" means the index published by the
11Bureau of Labor Statistics of the United States Department of
12Labor that measures the rent of primary residence by all urban
13renters, United States city average, all items, 1982-84 = 100,
14or as otherwise redefined by a Board.
15    "Dwelling" means units in privately-owned housing
16developments and single-family homes. "Dwelling" does not
17include subsidized housing, owner-occupied developments with
18fewer than 6 units, or commercial units in mixed-use
20    "Person with a disability" has the meaning given to that
21term in paragraph (2) of Subsection 2FF of the Consumer Fraud
22and Deceptive Business Practices Act.
23    "Subsidized housing" has the meaning given to that term in



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1Section 3 of the Subsidized Housing Joint Occupancy Act.
2    "Tier 1 household" means a household earning not more than
360% of a county's area median income as calculated by the
4Department of Housing and Urban Development.
5    "Tier 2 household" means a household earning not more than
6120% of a county's area median income as calculated by the
7Department of Housing and Urban Development.
8    Section 10. Establishment of County Rent Control Board;
10    (a) A County Rent Control Board in each county is
11established on the date all initial members of a Board are
12elected and qualified as provided in this Section.
13    (b) A Board shall consist of the following members:
14        (1) Two members who are residents of the county, from
15    Tier 1 households, and renting their residence.
16        (2) Two members who are residents of the county, from
17    Tier 2 households, and renting their residence.
18        (3) Three members who own property in the county.
19        (4) Two members who are representatives of an
20    organization that advocates for low-income housing
21    residents.
22    (c) Candidates for Board membership shall be nominated in
23the same manner and form as prescribed by the general election
24law, except that (i) party name or affiliation may not appear
25on any nominating petition, (ii) each nominating petition shall



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1contain the candidate's residence address, which must include
2the candidate's county of residence, (iii) each nominating
3petition shall specify the member position he or she is running
4for under paragraphs (1) through (4) of subsection (b), and
5(iv) each nominating petition shall provide documentation
6evidencing the qualifications necessary under paragraphs (1)
7through (4) of subsection (b). Candidates for election as Board
8members shall file nomination petitions in the manner and at
9the time prescribed by the general election law.
10    (d) Members shall be elected initially in the 2019
11consolidated election, and the members initially elected shall
12meet within 21 days after the election and determine by lot the
13terms for which they each shall serve. Of the members initially
14elected, 3 members shall each serve 2-year terms and 4 members
15shall each serve 4-year terms. At each consolidated election
16thereafter, each member elected to succeed a member whose term
17expires shall hold office for a term of 4 years. The term of
18office of each member elected shall commence on the 1st Monday
19of the month following the month of that member's election, and
20each member shall serve until her or his successor is elected
21and has qualified.
22    (e) The office of a member shall be deemed vacant and shall
23be filled by appointment pursuant to paragraph (f) for the
24remainder of the term if any member elected under paragraphs
25(1) through (4) of subsection (b) does not continue to meet the
26requirements of the paragraph under which he or she was



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2    (f) If a vacancy in a Board occurs, either by death,
3resignation, failure to qualify, change of residence, change of
4income level, or for any other reason, a majority of the
5remaining members of a Board shall fill the vacancy by
6appointment of a person who shall meet the qualifications of
7the vacant member position under paragraphs (1) through (4) of
8subsection (b). The appointed member shall then assume the
9duties of the office for the unexpired term to which the person
10was appointed.
11    Section 15. Board duties. A Board has the following duties:
12        (1) The Board must provide oversight to the units of
13    local government within its county in implementing the
14    requirements of this Act.
15        (2) The Board must establish regulations and penalties
16    consistent with this Act and enforce those regulations and
17    penalties for current dwellings and dwellings built in the
18    future.
19        (3) The Board must monitor rental rates in the county.
20        (4) The Board must set a countywide rent-controlled
21    amount for Tier 1 households and Tier 2 households with
22    consideration of rates of vacancy and rent burden among
23    Tier 1 and Tier 2 households as well as separate rates for
24    persons over 65 and persons with a disability who are in
25    Tier 1 and Tier 2 households.



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1        (5) The Board must yearly calculate an average rent for
2    dwellings with various bedroom numbers in the county.
3        (6) The Board must decide which consumer price index
4    should be used to calculate rent-controlled amounts.
5    Section 20. Board meetings.
6    (a) Board meetings shall be held in accordance with the
7Open Meetings Act.
8    (b) A Board shall initially meet no later than 60 days
9after the Board is established to establish regulations as set
10forth in Section 25.
11    (c) A Board shall meet at least quarterly and at other
12times as called by the chairperson of the Board.
13    Section 25. Rent control regulation. A Board shall
14establish regulations consistent with the following for Tier 1
15and Tier 2 households:
16        (1) The Board may adjust the countywide
17    rent-controlled amount no more than once every 12 months.
18    An increase in rent under this paragraph is restricted to
19    the increase in consumer price index-u plus: no more than
20    1% for a maximum total increase of 5% annually for Tier 1
21    households; or no more than 2% for a maximum total increase
22    of 6% annually for Tier 2 households. Adjustments in rent
23    for persons over 65 years old or persons with a disability
24    under this paragraph are restricted to the increase in



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1    consumer price index-u exclusively for a maximum total
2    increase of 4% annually.
3        (2) Before a property owner may increase rent based
4    upon a rent-control amount adjustment under paragraph (1),
5    the property owner must provide a tenant at least 90 days'
6    notice.
7        (3) A property owner may increase a tenant's rent above
8    the rent-controlled amount by no more than 10% if the
9    property owner petitions the Board for a waiver in the
10    event of a natural disaster or calamity outside of the
11    property owner's control requiring extensive repairs or
12    major capital improvements. Increased rent may not exceed
13    10% of the monthly rent-controlled amount for more than a
14    single 12-month period. If the waiver is approved, then the
15    property owner must give 30 days' notice to the tenant
16    before increasing rent.
17        (4) A property owner must create and fund a reserve
18    account for repairs and capital improvements. The property
19    owner must deposit, at least monthly, 10% of the property
20    owner's rent proceeds, after monthly expenses are paid,
21    into the reserve account. If a property owner is unable to
22    deposit the minimum of 10% into the reserve account, the
23    property owner must apply to the County Rent Control Board
24    for a hardship waiver and the Board may waive the
25    requirements of this paragraph for a period of up to 120
26    days.



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1        (5) A Board must require that property owners
2    demonstrate suitable documented grounds for the eviction
3    of tenants pursuant to the tenants' lease agreements and
4    existing law.
5        (6) If a tenant who is not in a Tier 1 or Tier 2
6    household moves into a dwelling previously occupied by a
7    Tier 1 or 2 household, then the property owner must
8    maintain the rent in that dwelling at the rent-controlled
9    amount for a period of not less than 3 years.
10    Section 30. Home rule. The rent control regulations in this
11Act are exclusive powers and functions of the State. A home
12rule unit may not regulate rent control. This Section is a
13denial and limitation of home rule powers and functions under
14subsection (h) of Section 6 of Article VII of the Illinois
16    Section 98. Applicability. The provisions of this Act may
17be enforced only against property owners who rent dwellings to
18Tier 1 or Tier 2 households.
19    Section 900. The Election Code is amended by changing
20Section 2A-1.2 as follows:
21    (10 ILCS 5/2A-1.2)  (from Ch. 46, par. 2A-1.2)
22    Sec. 2A-1.2. Consolidated Schedule of Elections - Offices



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2    (a) At the general election in the appropriate
3even-numbered years, the following offices shall be filled or
4shall be on the ballot as otherwise required by this Code:
5        (1) Elector of President and Vice President of the
6    United States;
7        (2) United States Senator and United States
8    Representative;
9        (3) State Executive Branch elected officers;
10        (4) State Senator and State Representative;
11        (5) County elected officers, including State's
12    Attorney, County Board member, County Commissioners, and
13    elected President of the County Board or County Chief
14    Executive;
15        (6) Circuit Court Clerk;
16        (7) Regional Superintendent of Schools, except in
17    counties or educational service regions in which that
18    office has been abolished;
19        (8) Judges of the Supreme, Appellate and Circuit
20    Courts, on the question of retention, to fill vacancies and
21    newly created judicial offices;
22        (9) (Blank);
23        (10) Trustee of the Metropolitan Sanitary District of
24    Chicago, and elected Trustee of other Sanitary Districts;
25        (11) Special District elected officers, not otherwise
26    designated in this Section, where the statute creating or



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1    authorizing the creation of the district requires an annual
2    election and permits or requires election of candidates of
3    political parties.
4    (b) At the general primary election:
5        (1) in each even-numbered year candidates of political
6    parties shall be nominated for those offices to be filled
7    at the general election in that year, except where pursuant
8    to law nomination of candidates of political parties is
9    made by caucus.
10        (2) in the appropriate even-numbered years the
11    political party offices of State central committeeman,
12    township committeeman, ward committeeman, and precinct
13    committeeman shall be filled and delegates and alternate
14    delegates to the National nominating conventions shall be
15    elected as may be required pursuant to this Code. In the
16    even-numbered years in which a Presidential election is to
17    be held, candidates in the Presidential preference primary
18    shall also be on the ballot.
19        (3) in each even-numbered year, where the municipality
20    has provided for annual elections to elect municipal
21    officers pursuant to Section 6(f) or Section 7 of Article
22    VII of the Constitution, pursuant to the Illinois Municipal
23    Code or pursuant to the municipal charter, the offices of
24    such municipal officers shall be filled at an election held
25    on the date of the general primary election, provided that
26    the municipal election shall be a nonpartisan election



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1    where required by the Illinois Municipal Code. For partisan
2    municipal elections in even-numbered years, a primary to
3    nominate candidates for municipal office to be elected at
4    the general primary election shall be held on the Tuesday 6
5    weeks preceding that election.
6        (4) in each school district which has adopted the
7    provisions of Article 33 of the School Code, successors to
8    the members of the board of education whose terms expire in
9    the year in which the general primary is held shall be
10    elected.
11    (c) At the consolidated election in the appropriate
12odd-numbered years, the following offices shall be filled:
13        (1) Municipal officers, provided that in
14    municipalities in which candidates for alderman or other
15    municipal office are not permitted by law to be candidates
16    of political parties, the runoff election where required by
17    law, or the nonpartisan election where required by law,
18    shall be held on the date of the consolidated election; and
19    provided further, in the case of municipal officers
20    provided for by an ordinance providing the form of
21    government of the municipality pursuant to Section 7 of
22    Article VII of the Constitution, such offices shall be
23    filled by election or by runoff election as may be provided
24    by such ordinance;
25        (2) Village and incorporated town library directors;
26        (3) City boards of stadium commissioners;



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1        (4) Commissioners of park districts;
2        (5) Trustees of public library districts;
3        (6) Special District elected officers, not otherwise
4    designated in this section, where the statute creating or
5    authorizing the creation of the district permits or
6    requires election of candidates of political parties;
7        (7) Township officers, including township park
8    commissioners, township library directors, and boards of
9    managers of community buildings, and Multi-Township
10    Assessors;
11        (8) Highway commissioners and road district clerks;
12        (9) Members of school boards in school districts which
13    adopt Article 33 of the School Code;
14        (10) The directors and chairman of the Chain O Lakes -
15    Fox River Waterway Management Agency;
16        (11) Forest preserve district commissioners elected
17    under Section 3.5 of the Downstate Forest Preserve District
18    Act;
19        (12) Elected members of school boards, school
20    trustees, directors of boards of school directors,
21    trustees of county boards of school trustees (except in
22    counties or educational service regions having a
23    population of 2,000,000 or more inhabitants) and members of
24    boards of school inspectors, except school boards in school
25    districts that adopt Article 33 of the School Code;
26        (13) Members of Community College district boards;



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1        (14) Trustees of Fire Protection Districts;
2        (15) Commissioners of the Springfield Metropolitan
3    Exposition and Auditorium Authority;
4        (16) Elected Trustees of Tuberculosis Sanitarium
5    Districts;
6        (17) Elected Officers of special districts not
7    otherwise designated in this Section for which the law
8    governing those districts does not permit candidates of
9    political parties.
10        (18) Members of County Rent Control Boards under the
11    Rent Control Act.
12    (d) At the consolidated primary election in each
13odd-numbered year, candidates of political parties shall be
14nominated for those offices to be filled at the consolidated
15election in that year, except where pursuant to law nomination
16of candidates of political parties is made by caucus, and
17except those offices listed in paragraphs (12) through (17) of
18subsection (c).
19    At the consolidated primary election in the appropriate
20odd-numbered years, the mayor, clerk, treasurer, and aldermen
21shall be elected in municipalities in which candidates for
22mayor, clerk, treasurer, or alderman are not permitted by law
23to be candidates of political parties, subject to runoff
24elections to be held at the consolidated election as may be
25required by law, and municipal officers shall be nominated in a
26nonpartisan election in municipalities in which pursuant to law



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1candidates for such office are not permitted to be candidates
2of political parties.
3    At the consolidated primary election in the appropriate
4odd-numbered years, municipal officers shall be nominated or
5elected, or elected subject to a runoff, as may be provided by
6an ordinance providing a form of government of the municipality
7pursuant to Section 7 of Article VII of the Constitution.
8    (e) (Blank).
9    (f) At any election established in Section 2A-1.1, public
10questions may be submitted to voters pursuant to this Code and
11any special election otherwise required or authorized by law or
12by court order may be conducted pursuant to this Code.
13    Notwithstanding the regular dates for election of officers
14established in this Article, whenever a referendum is held for
15the establishment of a political subdivision whose officers are
16to be elected, the initial officers shall be elected at the
17election at which such referendum is held if otherwise so
18provided by law. In such cases, the election of the initial
19officers shall be subject to the referendum.
20    Notwithstanding the regular dates for election of
21officials established in this Article, any community college
22district which becomes effective by operation of law pursuant
23to Section 6-6.1 of the Public Community College Act, as now or
24hereafter amended, shall elect the initial district board
25members at the next regularly scheduled election following the
26effective date of the new district.



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1    (g) At any election established in Section 2A-1.1, if in
2any precinct there are no offices or public questions required
3to be on the ballot under this Code then no election shall be
4held in the precinct on that date.
5    (h) There may be conducted a referendum in accordance with
6the provisions of Division 6-4 of the Counties Code.
7(Source: P.A. 89-5, eff. 1-1-96; 89-95, eff. 1-1-96; 89-626,
8eff. 8-9-96; 90-358, eff. 1-1-98.)
9    Section 905. The Illinois Income Tax Act is amended by
10adding Section 227 as follows:
11    (35 ILCS 5/227 new)
12    Sec. 227. Rent-controlled property credit; rental property
13capital improvements credit.
14    (a) For taxable years beginning after the effective date of
15this amendatory Act of the 100th General Assembly, there shall
16be allowed a tax credit against the tax imposed by subsections
17(a) and (b) of Section 201 in an amount equal to the difference
18between the rent-controlled amount established by a County Rent
19Control Board and the county's average rent established by a
20County Rent Control Board under the Rent Control Act for each
21dwelling a taxpayer owns and rents to a Tier 1 household or a
22Tier 2 household, but only if the rent-controlled amount is
23lower than the average rent.
24    (b) For taxable years beginning after the effective date of



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1this amendatory Act of the 100th General Assembly, there shall
2be allowed a tax credit against the tax imposed by subsections
3(a) and (b) of Section 201 in an amount equal to the amount of
4capital improvements to property the taxpayer owns that is
5rented to Tier 1 households or Tier 2 households.
6    (c) A taxpayer may apply for a tax credit under subsection
7(a) or (b) or both.
8    (d) To obtain a tax credit or tax credits pursuant to this
9Section, the taxpayer must apply with the Department of
10Commerce and Economic Opportunity. The Department of Commerce
11and Economic Opportunity shall determine the amount of eligible
12amounts under subsection (a) or capital improvements under
13subsection (b). Upon approval of a tax credit, the Department
14of Commerce and Economic Opportunity shall issue a certificate
15in the amount of the eligible credits. The taxpayer must attach
16the certificate to the tax return on which the credits are to
17be claimed. The Department of Commerce and Economic Opportunity
18may adopt rules to implement this Section.
19    (e) The tax credit under subsection (a) or (b), or both,
20may not reduce the taxpayer's liability to less than zero.
21    (f) As used in this Section:
22    "Average rent", "dwelling", "Tier 1 household", and "Tier 2
23household" have the meanings given to those terms in Section 5
24of the Rent Control Act.
25    "Capital improvements" are capital improvements allowed
26under 26 U.S.C. 263.



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1    (50 ILCS 825/Act rep.)
2    Section 910. The Rent Control Preemption Act is repealed.



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2 Statutes amended in order of appearance
3    New Act
4    10 ILCS 5/2A-1.2from Ch. 46, par. 2A-1.2
5    35 ILCS 5/227 new
6    50 ILCS 825/Act rep.