Public Act 099-0097
 
HB1361 EnrolledLRB099 08494 KTG 28650 b


  
    AN ACT concerning housing.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  






 
 
    Section 5. The Rental Housing Support
Program Act is 
amended  by changing Sections 7, 10, and 25 as follows:
 
    (310 ILCS 105/7)

    Sec. 7. Definitions. In this Act:


    "Annual receipts" means revenue derived from the Rental

Housing Support Program State surcharge from July 1 to June
30. 
    "Authority" means the Illinois Housing Development 
Authority.


    "Developer" means any entity that receives a grant under 
Section 20.
    "Program" means the Rental Housing Support Program.


    "Real estate-related document" means any recorded document 
that affects an
interest in real property excluding documents 
which solely affect or relate to an easement for water, sewer, 
electricity, gas, telephone or other public service.


    "Unit" means a rental apartment unit receiving a subsidy by 
means of a grant
under this Act. "Unit" does not include 
housing units intended as transitional
or
temporary housing.



(Source: P.A. 94-118, eff. 7-5-05.)
 
    (310 ILCS 105/10)

    Sec. 10. Creation of Program and distribution of funds.


    (a) The Rental Housing Support Program is created within 
the Illinois Housing Development Authority.  The Authority 
shall administer the Program program and adopt rules for its 
implementation.
    (b) The Authority shall distribute amounts for the Program 
solely from annual receipts on deposit in the Rental Housing 
Support Program Fund that are appropriated in each year for 
distribution by the Authority for the Program, and not from any 
other source of funds for the Authority, The Authority shall 
distribute amounts appropriated for the Program from the Rental 
Housing Support Program Fund and any other appropriations 
provided for the Program as follows:
        (1) A proportionate share of annual receipts on deposit 
    appropriated to the Fund each year the annual 
    appropriation, as determined under subsection (d) of 
    Section 15 of this Act, shall be distributed to 
    municipalities with a population greater than 2,000,000.  
    Those municipalities shall use at least 10% of those funds 
    in accordance with Section 20 of this Act, and all 
    provisions governing the Authority's actions under Section 
    20 shall govern the actions of the corporate authorities of 
    a municipality under this Section.  As to the balance of the 
    annual distribution, the municipality shall designate a 
    non-profit organization that meets the specific criteria 
    set forth in Section 25 of this Act to serve as the "local 
    administering agency" under Section 15 of this Act.
        (2) Of the remaining annual receipts on deposit 
    appropriated to the Fund each year appropriation after the 
    distribution in paragraph (1) of this subsection, the 
    Authority shall designate at least 10% for the purposes of 
    Section 20 of this Act in areas of the State not covered 
    under paragraph (1) of this subsection.
        (3) The remaining annual receipts on deposit 
    appropriated to the Fund each year appropriation after the 
    distributions in paragraphs (1) and (2) of this subsection 
    shall be distributed according to Section 15 of this Act in 
    areas of the State not covered under paragraph (1) of this 
    subsection.

(Source: P.A. 94-118, eff. 7-5-05.)
 
    (310 ILCS 105/25)

    Sec. 25. Criteria for awarding grants.  The Authority shall 
adopt rules
to govern the awarding of grants and the continuing 
eligibility for grants
under Sections 15 and 20. Requests for 
proposals under
Section 20 must specify that proposals must 
satisfy these rules.
The rules must contain and be consistent 
with, but need not be limited to,
the following criteria:


        (1) Eligibility for tenancy in the units supported by 
    grants to local
administering agencies must be
limited
to 
    households with gross income at or below 30% of the median

    family income for the area in which the grant will be
made. 
    Fifty percent of the units that are supported by any grant 
    must be set
aside for households whose income is at or 
    below 15% of the area median
family income for the area in 
    which the grant will be made, provided that local 
    administering agencies may negotiate flexibility in
this 
    set-aside with the Authority if they demonstrate that they 
    have been
unable to locate sufficient tenants in this lower 
    income range. Income eligibility for units supported by 
    grants to local administering agencies must be verified 
    annually by landlords and submitted to local administering 
    agencies. Tenants
must have sufficient income to be able to 
    afford the tenant's share of the
rent. For grants awarded 
    under Section 20, eligibility for tenancy in units

    supported by grants must be limited to households with a 
    gross income at or
below
30% of area median family income 
    for the area in which the grant will be made.  Fifty percent 
    of the units that are supported by any grant must be set 
    aside for households whose income is at or below 15% of the 
    median family income for the area in which the grant will 
    be made, provided that developers may negotiate 
    flexibility in this set-aside with the Authority or 
    municipality as defined in subsection (b) of Section 10 if 
    it demonstrates that it has  been unable to locate 
    sufficient tenants in this lower income range.
The 
    Authority shall determine what sources qualify as a 
    tenant's income.

        (2) Local administering agencies must include 
    2-bedroom, 3-bedroom,
and 4-bedroom units among those 
    intended to be supported by grants
under the Program 
    program. In grants under Section 15, the precise number of

    these units among all the units intended to be supported by 
    a grant must be
based on need in the community for larger 
    units and other factors that the
Authority specifies in 
    rules. The local administering agency must specify
the 
    basis for the numbers of these units that are proposed for 
    support under
a grant. Local administering agencies must 
    make a good faith effort to
comply with this allocation of 
    unit sizes. In grants awarded under Section
20, developers 
    and the Authority or municipality, as defined in subsection 
    (b) of Section 10, shall negotiate the numbers and sizes of

    units to be built in a project and supported by the grant.


        (3) Under grants awarded under Section 15, local 
    administering agencies
must enter into a payment contract 
    with the landlord that defines the method of payment and 
    must pay subsidies to landlords on a quarterly basis and in 
    advance of the
quarter paid for.


        (4) Local administering agencies and developers must 
    specify how
vacancies in units supported by a grant must be 
    advertised and they must include provisions for outreach to 
    local
homeless shelters, organizations that work with 
    people with disabilities,
and others interested in 
    affordable housing.


        (5) The local administering agency or developer must 
    establish a schedule
for the tenant's rental obligation for 
    units supported by a grant. The
tenant's share of the rent 
    must be a flat amount, calculated annually, based on the 
    size of the
unit and the household's income category. In 
    establishing the schedule for
the tenant's rental 
    obligation, the local administering agency or developer

    must use 30% of gross income within an income range as a 
    guide, and it
may charge an additional or lesser amount.


        (6) The amount of the subsidy provided under a grant 
    for a unit must be
the difference between the amount of the 
    tenant's obligation and the total
amount of rent for the

    unit. The total amount of rent for the unit must be 
    negotiated between the
local
administering authority and 
    the landlord under Section 15, or between the
Authority or 
    municipality, as defined in subsection (b) of Section 10, 
    and the developer under Section 20, using comparable rents 
    for units of comparable size and condition in the 
    surrounding community as a guideline.


        (7) Local administering agencies and developers, 
    pursuant to criteria
the
Authority develops in rules, must 
    ensure that there are procedures in place
to maintain the 
    safety and habitability of units supported under grants. 
    Local administering agencies must inspect
units before 
    supporting them under a grant awarded under Section 15.


        (8) Local administering agencies must provide or 
    ensure that tenants are
provided with a "bill of rights" 
    with their lease setting forth local
landlord-tenant laws 
    and procedures and contact information for the local

    administering agency.


        (9) A local administering agency must create
a plan 
    detailing a process for helping
to provide information, 
    when necessary, on how to access education, training, and 
    other
supportive services to tenants living in units 
    supported under the grant. The
plan must be
submitted as a 
    part of the administering agency's proposal to the 
    Authority
required under
Section 15.


        (10) Local administering agencies and developers may 
    not use funding under
the
grant to develop or support 
    housing that requires that a tenant has a particular 
    diagnosis or type of disability as a condition of 
    eligibility for occupancy unless the requirement is 
    mandated by another funding source for the housing. Local 
    administering agencies and developers may use grant 
    funding to develop integrated housing opportunities for 
    persons with disabilities, but not housing restricted to a 
    specific disability type.

        (11) In order to plan for periodic fluctuations in 
    annual receipts on deposit appropriated to the Fund each 
    year program revenue, the Authority shall establish by rule 
    a mechanism for establishing a reserve fund and the level 
    of funding that shall be held in reserve either by the 
    Authority or by local administering agencies.


        (12) The Authority shall perform annual 
    reconciliations of all distributions made in connection 
    with the Program and may offset future distributions to 
    balance geographic distribution requirements of this Act. 
(Source: P.A. 97-892, eff. 8-3-12.)
 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.