Public Act 093-0727
 		





SB2329 Enrolled
LRB093 18462 DRJ 44174 b






    AN ACT in relation to housing. 

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 


 
    Section 5. The Federally Subsidized Housing Preservation 
Act is amended by
changing Sections 1, 3, 4, 5, 6, 7, 8, and 
10.1 as follows:


 
    (310 ILCS 60/1)  (from Ch. 67 1/2, par. 1151)

    Sec. 1. Short title.  This Act shall be known and may be 
cited as
the Federally Assisted
Subsidized Housing 
Preservation Act.


(Source: P.A. 86-810.)

 
    (310 ILCS 60/3)  (from Ch. 67 1/2, par. 1153)

    Sec. 3. Definitions.  As used in this Act:


    (a) "IHDA" means the Illinois Housing Development 
Authority.


    (b) (Blank).
"FmHA" means the Farmers Home Administration 
or a local
housing
authority administering an FmHA program.


    (c) (Blank).
"HUD" means the United States Department of 
Housing and
Urban
Development, or the Federal Housing 
Administration or a local housing
authority administering a HUD 
program.


    (d) "Owner" means the person, partnership, or corporation 
that
holds title to an assisted housing development
is a
party 
to a contract with HUD or FmHA providing for a mortgage, 
mortgage
assistance, mortgage insurance, or rent subsidy; or 
any spouse, employee,
agent, partner, master lessee, business 
affiliate or associate, or
successor in interest of such 
person, partnership or corporation, that
receives or demands 
rent for the subsidized housing.


    (e) "Assisted housing" or "assisted housing development" 
means a rental
housing
development, or a mixed use development 
that includes rental housing, that receives government 
assistance under any of the following
programs:

        (1) New construction, substantial rehabilitation, 
    moderate
rehabilitation, property disposition and loan 
    management set-aside programs, or
any other program 
    providing project-based
rental assistance, under Section 8 
    of the United States Housing
Act of 1937, as amended.

        (2) The Below-Market-Interest-Rate Program under 
    Section
221(d)(3) of the National Housing Act.

        (3) Section 236 of the National Housing Act.

        (4) Section 202 of the National Housing Act.

        (5) Programs for rent supplement assistance under 
    Section
101 of the Housing and Urban Development Act of 
    1965, as amended.

        (6) Programs under Section 514 or 515 of the Housing 
    Act of
1949.

        (7) Section 42 of the Internal Revenue Code.

    "Subsidized housing" means any housing or unit of housing 
    financed
by a loan or mortgage insured or held by HUD as 
    follows:

    (1) insured or held by HUD under Section 221(d)(3) of the 
National
Housing Act and assisted under Section 101 of the 
Housing and Urban
Development Act of 1965 or Section 8 of the 
United States Housing Act of 1937;

    (2) insured or held by HUD and bears interest at a rate 
determined under
the proviso of Section 221(d)(3) of the 
National Housing Act;

    (3) insured, assisted or held by HUD under Section 236 of 
the National
Housing Act;

    (4) insured or held by HUD under Section 514 or 515 of the 
Housing Act of
1949; or

    (5) held by HUD and formerly insured under a program listed 
in this
subsection (e).


    (f) "Tenant" means a tenant, subtenant, lessee, sublessee 
or other
person entitled to possession, occupancy or benefits 
of a rental unit
within the assisted
subsidized housing.


    (g) "Tenant Association" means an association, corporation 
or other
organization that represents at least a majority of 
the tenants in the
assisted
subsidized housing building.


    (h) "Prepayment" means the payment in full or refinancing 
of the
federally insured or federally held mortgage 
indebtedness prior to its
original maturity date, or the 
voluntary cancellation of mortgage
insurance, on an assisted 
housing development described in paragraph
(2), (3), or (4) of 
subsection (e) that would have the effect of
removing the 
affordability restrictions applicable to the assisted housing 
development under the programs described in paragraph (2), (3), 
or (4) of subsection (e).

    (i) "Termination" means:
        (1) the expiration or early termination of an assisted 
    housing development's participation in a federal subsidy 
    program for assisted  housing described in paragraph (1) of 
    subsection (e), or
        (2) the expiration or early termination of an assisted 
    housing development's affordability restrictions described 
    in Section 42(g) of the Internal Revenue Code for assisted 
    housing described in paragraph (7) of subsection (e),
when 
    that event results in an increase in tenant rents, a change 
    in the form  of subsidy from project-based to tenant-based, 
    or a change in use of the assisted housing development to a 
    use other than rental housing.


    (j) "Affected public entities" means: the mayor of the city 
in
which the assisted housing development is located or, if the

development is located in an unincorporated area, the 
chairperson of
the county board; the public
housing authority 
in whose jurisdiction the assisted housing development is 
located, if any; and IHDA.


    (k) "Affordability restrictions" means limits on rents 
that owners may charge for occupancy of a rental unit in 
assisted housing and limits on tenant income for persons or 
families seeking to qualify as tenants in assisted housing.

(Source: P.A. 86-810.)

 
    (310 ILCS 60/4)  (from Ch. 67 1/2, par. 1154)

    Sec. 4. Notice of intent to sell.


    (a) An owner may not sell or otherwise dispose of
assisted

subsidized housing, complete prepayment, or complete a 
termination
 unless, not less than 12
6 months before the 
prepayment, termination, sale, or
disposal, the owner submits 
to all tenants of the assisted
subsidized
housing and to all 
affected public entities
IHDA a notice of intent to
complete 
prepayment, complete termination, sell, or otherwise dispose

of the property.


    (a-5) Every notice required under subsection (a) must 
include the address
of
the
assisted housing, characteristics of 
the property including the number of
units, and the
names and 
addresses of the owners. The notice must also include the date 
on
which
the
owner intends to sell, lease, complete prepayment, 
complete termination, or otherwise dispose of the property,  as 
well as a detailed list of affordability restrictions 
applicable to the property.
IHDA shall adopt rules concerning 
the content, format, delivery, and
publication of such
notices.


    (b) Within 60 days after the date of the owner's notice 
pursuant to
subsection (a), the tenants may notify the owner 
that they have formed a
Tenant Association meeting the 
requirements of this Act and shall designate
the name of its 
representative or representatives in the notice.
The Tenant 
Association may enter into an agreement with a not-for-profit

corporation or private purchaser in which the not-for-profit

corporation or private purchaser agrees to represent the 
residents and
maintain the development in a manner that 
preserves the housing development's
existing affordability 
restrictions or that would qualify the housing development as 
affordable housing as defined in the Illinois Affordable 
Housing Act. The agreement must set forth the minimum length of 
time that the affordability restrictions will be in effect.  The 
Tenant Association and individual tenants in the assisted 
housing shall each have the right to bring an action for 
specific performance or other injunctive relief for 
enforcement of the agreement, and the agreement must contain 
provisions to this effect along with such other remedies for 
breach as the Tenant Association and the not-for-profit 
corporation or private purchaser may agree. Once such an 
agreement is entered into, the
 not-for-profit corporation or 
private purchaser shall assume all rights and
responsibilities 
attributed to the Tenant Association under this Act.


(Source: P.A. 86-810; 86-1352.)

 
    (310 ILCS 60/5)  (from Ch. 67 1/2, par. 1155)

    Sec. 5. Offer for sale to Tenant Association.  Within 60 
days after the
Tenant Association has complied with the

requirements of Section 4, the owner shall, before selling, 
leasing, completing prepayment, completing termination, or

otherwise disposing of the

property, provide to the Tenant 
Association a
bona fide offer for sale of the property which 
shall contain the essential
terms of the sale, including, at a 
minimum, the following:  the
sales price; the terms of seller 
financing, if any, including the amount,
the interest rate, and 
amortization rate thereof; the terms of assumable
financing, if 
any, including the amount, the interest rate, and the

amortization rate thereof; and proposed improvements, if any, 
to the
property to be made by the owner in connection with the 
sale.


(Source: P.A. 86-810.)

 
    (310 ILCS 60/6)  (from Ch. 67 1/2, par. 1156)

    Sec. 6. Notice of intent to purchase.


    (a) The Tenant Association shall
notify the owner in 
writing, within 90
30 days after the receipt of the
bona
fide 
offer of sale, of its intent to purchase the assisted

subsidized
housing.


    (b) The owner shall, after receiving a notice pursuant to 
subsection
(a), comply with any reasonable request to make 
documents available to the
Tenant Association, during normal 
business hours at the owner's principal place
of
business 
within 15 days of receiving such a request, including but not 
limited
to:  a
floor plan of the development; itemized lists of 
monthly operating
expenses, capital expenditures in each of the 
2 preceding calendar years
and deferred maintenance costs; the 
amount of project reserves; utility
consumption rates; copies 
of financial and physical inspection reports filed
with 
federal, State or local agencies; the most recent rent roll; a 
list of
tenants; a list of vacant units; and a statement of the 
vacancy rate at the
development for each of the 2 preceding 
calendar years.


(Source: P.A. 86-810.)

 
    (310 ILCS 60/7)  (from Ch. 67 1/2, par. 1157)

    Sec. 7. Bona fide offer to purchase; contract.


    (a) The Tenant Association shall, within 90 days after it

notifies the owner of its intent to purchase, provide the owner 
with a bona
fide offer to purchase evidenced by a purchase 
contract reflecting a sales
price and terms agreed to by the 
parties or the sales price and terms
determined pursuant to 
subsection (b) of this Section and an earnest
money deposit 
equal to 5% of the bona fide offer to purchase.


    (b) If the parties are unable to agree to a sales price 
within the first
60 days of the 90 day period specified in 
subsection (a), the sale price of
the assisted
subsidized

housing shall be based upon its fair market
value, based on its 
highest and best use, without affordability restrictions, as

determined by 2 independent appraisers qualified to perform 
multi-family
housing appraisals.  One appraiser shall be 
selected and paid by the owner
and the other shall be selected 
and paid by the Tenant Association.  If the
appraisers fail to 
agree upon a fair market value, the owner and the
Tenant 
Association shall either jointly select and pay a third 
appraiser whose
appraisal shall be binding, or agree to take an 
average of
the 2 appraisals.  All appraisers shall be MAI 
certified.  The
determination of the sales price pursuant to 
this subsection shall be
completed within the 90 day period 
specified in subsection (a) of this Section.


    (c) The Tenant Association shall agree to close on the sale 
within 90
days from the date the parties sign the contract to 
purchase.


(Source: P.A. 86-810; 86-1352.)

 



    (310 ILCS 60/8)  (from Ch. 67 1/2, par. 1158)



    Sec. 8. The provisions of this Act shall not apply to any 
of the
following:  a government taking by eminent domain or 
negotiated purchase; a
forced sale pursuant to a foreclosure; 
or a transfer by gift, devise or operation of law; or an 
owner's sale or other disposition of assisted housing in a 
manner pursuant to which the property after the sale or other 
disposition continues to be assisted housing as defined in this 
Act.

(Source: P.A. 86-810.)

 
    (310 ILCS 60/10.1)  (from Ch. 67 1/2, par. 1160.1)

    Sec. 10.1. Civil action against owner.  The Tenant 
Association, or one
or
more tenants in the
assisted
subsidized

housing, may bring a civil action against an owner
who has

violated this Act.  An owner found to have violated any 
provision of this
Act shall, in addition to any other damages, 
pay a civil penalty to each
tenant in the assisted
subsidized

housing in the amount of $500 per
tenant, and
shall also pay 
the attorney's fees and costs incurred in bringing the action.


(Source: P.A. 86-810; 86-1352)


 
    Section 99. Effective date. This Act takes effect upon 
becoming law.



Effective Date:  7/14/2004