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91_HB1261
LRB9102284PTpk
1 AN ACT concerning property valuation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by adding
5 Division 11 to Article 10 as follows:
6 (35 ILCS 200/Art. 10, Div. 11 heading new)
7 DIVISION 11. LOW-INCOME HOUSING PROJECTS
8 (35 ILCS 200/10-235 new)
9 Sec. 10-235. Section 515 low-income housing project
10 valuation policy; intent. It is the policy of this State that
11 low-income housing projects under Section 515 of the federal
12 Housing Act shall be valued at 33 and one-third percent of
13 the fair market value of their economic productivity to the
14 owners of the projects to help insure that their valuation
15 for property taxation does not result in taxes so high that
16 rent levels must be raised to cover this project expense,
17 which can cause excess vacancies, project loan defaults, and
18 eventual loss of rental housing facilities for those most in
19 need of them, low-income families and the elderly. It is the
20 intent of this State that the valuation required by this
21 Division is the closest representation of cash value required
22 by law and is the method established as proper and fair.
23 (35 ILCS 200/10-240 new)
24 Sec. 10-240. Definition of Section 515 low-income housing
25 projects. "Section 515 low-income housing projects" mean
26 rental apartment facilities (i) developed and managed under a
27 United States Department of Agriculture Rural Rental Housing
28 Program designed to provide affordable housing to low to
29 moderate income families and seniors in rural communities
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1 with populations under 20,000, (ii) that receive a subsidy in
2 the form of a 1% loan interest rate and a 50-year
3 amortization of the mortgage, (iii) that would not have been
4 built without a Section 515 interest credit subsidy, and (iv)
5 where the owners of the projects are limited to an annual
6 profit of an 8% return on a 5% equity investment, which may
7 result in a modest cash flow to owners of the projects unless
8 actual expenses, including property taxes, exceed budget
9 projections, in which case no profit may be realized.
10 (35 ILCS 200/10-245 new)
11 Sec 10-245. Method of valuation of Section 515 low-income
12 housing projects. Notwithstanding Section 1-55, to determine
13 33 and one-third percent of the fair cash value of any
14 Section 515 low-income housing project, in assessing the
15 project, local assessment officers must consider the actual
16 or probable net operating income attributable to the project,
17 capitalized at normal market values.
18 (35 ILCS 200/10-250 new)
19 Sec. 10-250. Certification procedure. After (i) an
20 application for a Section 515 low-income housing project
21 certificate is filed with the State Director of the United
22 States Department of Agriculture Rural Development Office in
23 a manner and form prescribed in regulations issued by the
24 office and (ii) the certificate is issued certifying that the
25 housing is a Section 515 low-income housing project as
26 defined in Section 2 of this Act, the certificate must be
27 presented to the appropriate local assessment officer to
28 receive the property assessment valuation under this
29 Division. The local assessment officer must assess the
30 property according to this Act. The effective date of a
31 certificate is the date of application for the certificate or
32 the date of the construction of the project, whichever is
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1 later.
2 (35 ILCS 200/10-255 new)
3 Sec. 10-255. Rules. The Department of Revenue may adopt
4 rules to implement and administer this Division.
5 Section 90. The State Mandates Act is amended by adding
6 Section 8.23 as follows:
7 (30 ILCS 805/8.23 new)
8 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
9 and 8 of this Act, no reimbursement by the State is required
10 for the implementation of any mandate created by this
11 amendatory Act of the 91st General Assembly.