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91_HB4074eng
HB4074 Engrossed LRB9112134STsb
1 AN ACT concerning housing affordability.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the Live
5 Near Work Act.
6 Section 5. Purposes. The purposes of this Act are:
7 (1) To expand home ownership opportunities to working
8 individuals and families.
9 (2) To encourage employers, counties, and municipalities
10 to invest in employer-assisted housing.
11 (3) To provide matching grants to employers, counties,
12 municipalities, and nonprofit housing organizations engaged
13 in employer-assisted housing.
14 (4) To reduce traffic congestion by reducing employee
15 commute times.
16 Section 10. Definitions. In this Act:
17 "Authority" means the Illinois Housing Development
18 Authority.
19 "County" means any county within the State of Illinois.
20 "Employee" means a salaried or hourly individual who
21 works for an employer and whose median household income does
22 not exceed 100% of the area median income.
23 "Employer" means a business with operations in the State
24 of Illinois, including private, nonprofit, or governmental.
25 "Employer-assisted housing program" means a program
26 through which employers assist their employees in acquiring
27 homes in close proximity to their jobs.
28 "Fund" means the Live Near Work Fund.
29 "Median income" means the United States Department of
30 Housing and Urban Development area median income.
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1 "Municipality" means any city, village, or incorporated
2 town within the State of Illinois.
3 "Nonprofit" or "nonprofit housing organization" means any
4 organization that the Internal Revenue Service of the United
5 States Department of the Treasury has ruled is exempt from
6 income taxation under paragraph (3), (4), or (5) of
7 subsection (c) of Section 501 of the Internal Revenue Code of
8 1986 and has as a stated purpose to produce, maintain,
9 operate, or promote affordable housing.
10 Section 15. Live Near Work Fund. The Authority must use
11 moneys appropriated to it from the Live Near Work Fund, a
12 special fund created in the State treasury, to implement and
13 administer the purposes of this Act.
14 Section 20. Powers.
15 (a) The Authority is authorized to make grants from the
16 Fund to employers, municipalities, counties, and nonprofit
17 housing organizations to develop and implement employer-
18 assisted housing programs for work forces throughout the
19 State.
20 (b) The Authority shall adopt rules establishing
21 standards and procedures for determining eligibility for
22 these grants, regulating the use of funds under these grants,
23 and periodically reporting the results and impacts of
24 activities funded by these grants.
25 (c) The Authority shall work with stakeholders to
26 develop criteria to attract and evaluate proposals from
27 employers, housing agencies, counties, or municipalities, or
28 any combination of these.
29 (d) The Authority may target programs that benefit
30 employees earning less than 80% of the area median income.
31 (e) The Authority may use its discretion, based on
32 criteria developed under subsection (c) of this Section, to
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1 allow employees earning less than 120% of the area median
2 income to be eligible.
3 Section 25. Matching funds. Grants from the Fund may be
4 used to match employer investments toward housing resources
5 for participating employees. The Authority must approve the
6 employer's home buying and home counseling plan in order for
7 that employer to be eligible to receive moneys from the Fund.
8 Employer investments may include, but are not limited to:
9 (a) Down payment assistance. The Authority may match, at
10 up to 100%, money provided by the employer to the employee
11 for the purchase of a home.
12 (b) Contributions to second mortgage pools, which are
13 low interest loan programs accessible to qualified
14 individuals that assist in the purchase of a home. The
15 Authority may set standards for eligible second mortgage
16 pools. The Authority may match, at up to 100%, employer
17 contributions to second mortgage pools.
18 (c) Mortgage guarantee programs. The Authority may
19 match, at up to 100%, employer contributions toward repayment
20 of any loans that default that are secured by an employee and
21 guaranteed by the employer.
22 (d) Savings plans such as Individual Development
23 Accounts. The Authority may match, at up to 100%,
24 contributions by employers to employee savings plans
25 designated for purchase of a home.
26 (e) Rent subsidy programs for eligible employees. While
27 employees are saving and preparing for home ownership, the
28 employer may choose to subsidize the rental of housing close
29 to work. The Authority may match, at up to 100%, employer
30 contributions toward rental payments.
31 (f) Home buyer education and home ownership counseling.
32 The Authority may match, at up to 100%, employer
33 contributions toward home buyer education and home ownership
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1 counseling.
2 Section 30. Funds for administration and nonprofit
3 organizations.
4 (a) Grants authorized under Section 20 may be used to
5 support administration of employer-assisted housing programs
6 and technical assistance. Nonprofit grants shall not be
7 greater than 20% of the total Live Near Work Fund.
8 (b) Nonprofit housing organizations are eligible for
9 funds for, but not limited to, the following: (i) program
10 administration to the employers; and (ii) technical
11 assistance to home ownership counseling education to the
12 employees of participating employers for not more than 2
13 years at a time. To be eligible for funding, the nonprofit
14 housing organization must demonstrate employer interest in
15 participating in an employer-assisted housing program.
16 (c) Municipalities and counties are eligible to receive
17 grants authorized by Section 20 if:
18 (1) the municipality or county is acting as an
19 agent of the State in promoting employer-assisted housing
20 among employers in its jurisdiction and in compliance
21 with eligibility criteria established by the Authority,
22 and
23 (2) the municipality or county has demonstrated
24 employer interest in participating in an
25 employer-assisted program, or the municipality or county
26 is acting in the capacity of employer and providing
27 employer-assisted housing services to its work force.
28 Section 35. Annual reports. The Authority shall report
29 annually to the General Assembly on the program. The report
30 shall specify the amounts expended under the program and the
31 number of housing units, local governments, and employees
32 served by the program.
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1 Section 40. Expiration. This Act is repealed on July 1,
2 2005.
3 Section 95. The State Finance Act is amended by adding
4 Section 5.541 as follows:
5 (30 ILCS 105/5.541 new)
6 Section 5.541. The Live Near Work Fund.
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