103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2927

 

Introduced 1/26/2024, by Sen. Natalie Toro

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Community Land Trust Home Ownership Act. Provides that the Illinois Housing Development Authority's homeownership programs, including loan products, grants, and other types of assistance, shall be made available to home buyers and owners seeking to purchase or maintain housing where a leasehold interest in real property is held by a community land trust or other 501(c)(3) organization for the purposes of promoting long-term affordability, preservation of affordable housing, or community revitalization efforts. Provides that any other type of seller, including for-profit or private sellers of homes, through leasehold agreements, such as installment contracts, contract for deeds, or any other type of purchase or ownership structure, shall not be eligible under the amendatory Act. Requires the Illinois Housing Development Authority, within 90 days after the effective date of the Act, to propose new or amended administrative rules that will make the Authority's homeownership programs consistent with the purposes of the Act. Effective immediately.


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A BILL FOR

 

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1    AN ACT concerning housing.
 
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
5Community Land Trust Home Ownership Act.
 
6    Section 5. Purposes. The purposes of this Act are to
7ensure access to affordable housing loan products, grants, and
8other types of assistance for buyers and owners of housing
9located in a community land trust or other leasehold ownership
10structure with a ground lease between the buyer or owner and a
11501(c)(3) organization.
 
12    Section 10. Findings. The General Assembly finds the
13following:
14    (1) The State of Illinois is facing an affordable housing
15crisis.
16    (2) Homeownership serves as a critical tool to close the
17racial wealth gap by enabling historically excluded families
18to build generational wealth.
19    (3) Community land trusts and other ownership structures
20that promote long-term affordability are critical housing
21options that can reduce the affordable housing gap.
22    (4) Community land trusts and other ownership structures

 

 

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1that promote long-term affordability curb displacement and
2foster generational wealth by creating opportunities for
3homeownership to remain affordable for generations.
4    (5) Community land trusts and other ownership structures
5that promote long-term affordability preserve naturally
6occurring affordable housing by closing the affordability gap
7so that low-to-moderate income households can live in high
8opportunity neighborhoods.
 
9    Section 15. Definitions. As used in this Act:
10    "Authority" means the Illinois Housing Development
11Authority.
12    "Community land trust" means a 501(c)(3) organization
13governed by a board of community land trusts residents,
14community residents, and public representatives that provides
15permanent or long-term affordability and shared equity
16homeownership opportunities.
17    "501(c)(3) organization" means a nonprofit organization
18that is exempt or qualified for exemption from taxation
19pursuant to Section 501(c)(3) of the Internal Revenue Code of
201986.
 
21    Section 20. Eligibility for Authority homeownership
22programs. The Authority's homeownership programs, including
23loan products, grants, and other types of assistance, shall be
24made available to home buyers and owners seeking to purchase

 

 

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1or maintain housing where a leasehold interest in real
2property is held by a community land trust or other 501(c)(3)
3organization for the purposes of promoting long-term
4affordability, preservation of affordable housing, or
5community revitalization efforts. Any other type of seller,
6including for-profit or private sellers of homes, through
7leasehold agreements, such as installment contracts, contract
8for deeds, or any other type of purchase or ownership
9structure, shall not be eligible under this Section.
 
10    Section 25. Rulemaking. Within 90 days after the effective
11date of this Act, the Authority shall propose new or amended
12administrative rules that will make the Authority's
13homeownership programs consistent with the purposes of this
14Act.
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.