Public Act 093-0755
 		





HB4461 Enrolled
LRB093 19051 SJM 44786 b






    AN ACT concerning taxes.

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


 
    Section 5. The Property Tax Code is amended  by changing 
Sections 10-235, 10-245, and 10-250 as follows:
 



    (35 ILCS 200/10-235)



    Sec. 10-235. Low-income housing project valuation policy;

intent. It is the policy of this State that low-income housing 
projects
developed under Section 515 of the federal Housing Act 
or that qualify for the low-income housing tax credit under 
Section 42 of the
Internal Revenue Code shall be valued at 33 
and
one-third percent of the fair market value of their 
economic productivity
to the owners of the projects to help 
insure that their valuation for
property taxation does not 
result in taxes so high that rent levels
must be raised to 
cover this project expense, which can cause excess
vacancies, 
project loan defaults, and eventual loss of rental housing

facilities for those most in need of them, low-income families 
and the
elderly.  It is the intent of this State that the 
valuation required by
this Division is the closest 
representation of cash value required by law
and is the method 
established as proper and fair.

(Source: P.A. 92-16, eff. 6-28-01; 93-533, eff. 1-1-04.)

 



    (35 ILCS 200/10-245)



    Sec. 10-245. Method of valuation of low-income housing 
projects. Notwithstanding Section 1-55 and except in counties 
with a population of more
than 200,000 that classify property 
for the purposes of taxation, to determine
33 and one-third 
percent of the fair cash value of any low-income housing

project developed under the Section 515 program or that 
qualifies for the low-income housing tax credit under Section 
42
of the Internal Revenue Code, in assessing the project, 
local assessment
officers must consider the actual or probable 
net operating income attributable
to the project, using a 
vacancy rate of not more than 5%, capitalized at normal
market 
rates. The interest rate to be used in developing the normal 
market
value capitalization rate shall be one that reflects the 
prevailing cost of
cash for other types of commercial real 
estate in the geographic market in
which the low-income housing 
project is located.

(Source: P.A. 93-533, eff. 1-1-04.)

 



    (35 ILCS 200/10-250)



    Sec. 10-250. Certification procedure and effective date of

implementation.

    (a) After (i) an application for a Section 515 low-income 
housing project
certificate is filed with the State Director of

the United States Department of Agriculture Rural Development 
Office in a
manner and form prescribed in
regulations issued by 
the office and (ii) the certificate is issued certifying
that 
the housing is a Section 515 low-income housing project as 
defined in
Section 2 of this Act, the certificate must be 
presented to the appropriate
local assessment officer to 
receive the property assessment valuation under
this Division. 
The local assessment officer must assess the property according

to this Act.
Beginning on January 1, 2000 and through taxable 
year 2003, all certified
Section 515 low-income housing

projects shall be assessed in accordance with Section 10-245.

    (b) Beginning with taxable year 2004, all low-income 
housing projects
that qualify for the low-income housing tax 
credit under Section 42 of the
Internal Revenue Code
shall be

assessed in accordance with Section 10-245 if the owner or 
owners of the
low-income
housing project certify to the 
appropriate local assessment officer that the
owner or owners  
qualify
owner that qualifies for the low-income housing tax 
credit under Section 42 of the
Internal Revenue Code for the 
property.

(Source: P.A. 93-533, eff. 1-1-04.)

 

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