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1 | AN ACT concerning revenue. | |||||||||||||||||||||
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 House | |||||||||||||||||||||
5 | Illinois Families Act. | |||||||||||||||||||||
6 | Section 5. Definitions. As used in this Act: | |||||||||||||||||||||
7 | "Applicable taxpayer" means a taxpayer that is not: | |||||||||||||||||||||
8 | (i) A mortgage note holder that owns a single-family | |||||||||||||||||||||
9 | residence through foreclosure; | |||||||||||||||||||||
10 | (ii) An organization that is described in Section | |||||||||||||||||||||
11 | 501(c)(3) and exempt from tax under Section 501(a); | |||||||||||||||||||||
12 | (iii) An organization primarily engaged in the | |||||||||||||||||||||
13 | construction or rehabilitation of single-family | |||||||||||||||||||||
14 | residences; or. | |||||||||||||||||||||
15 | (iv) A person who owns federally subsidized housing. | |||||||||||||||||||||
16 | "Disqualified sale" means a sale or transfer to: | |||||||||||||||||||||
17 | (i) A corporation or entity engaged in a trade or | |||||||||||||||||||||
18 | business; | |||||||||||||||||||||
19 | (ii) A group of more than 2 individuals; or | |||||||||||||||||||||
20 | (iii) A person who owns any other single-family | |||||||||||||||||||||
21 | residence. | |||||||||||||||||||||
22 | "Department" means the Department of Revenue. | |||||||||||||||||||||
23 | "Single-family residence" means a residential property |
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1 | consisting of not more than 4 dwelling units. | ||||||
2 | "Own" means having a direct majority ownership interest in | ||||||
3 | the single-family residence. | ||||||
4 | Section 10. Excess single-family residences. | ||||||
5 | (a) There is imposed on each applicable taxpayer for each | ||||||
6 | taxable year a tax of 10% of the property value of each | ||||||
7 | single-family residence owned by the taxpayer as of the last | ||||||
8 | day of the taxable year in excess of 25 single-family | ||||||
9 | residences. | ||||||
10 | (b) The tax collected shall be deposited into the Illinois | ||||||
11 | Affordable Housing Trust Fund with the purpose of funding | ||||||
12 | housing programs for justice involved individuals and | ||||||
13 | providing rental and mortgage assistance. | ||||||
14 | Section 15. Special rule for certain sales. A | ||||||
15 | single-family residence which is sold or transferred in a | ||||||
16 | disqualified sale during the taxable year shall be treated as | ||||||
17 | a single-family residence which is owned by the applicable | ||||||
18 | taxpayer as of the last day of such taxable year. | ||||||
19 | Section 20. Reporting. | ||||||
20 | (a) The Department of Revenue shall adopt rules to | ||||||
21 | administer and enforce the provisions of this Act. Those rules | ||||||
22 | require such reporting as the Department determines necessary | ||||||
23 | or appropriate to carry out the purposes of this Act, |
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1 | including reporting with respect to: | ||||||
2 | (i) The dates on which single-family residences owned | ||||||
3 | by an applicable taxpayer were acquired by the taxpayer; | ||||||
4 | (ii) The dates on which single-family residences owned | ||||||
5 | by an applicable taxpayer are sold by the taxpayer in | ||||||
6 | accordance with this Act; and | ||||||
7 | (iii) Whether any person acquiring a single-family | ||||||
8 | residence from an applicable taxpayer owns any other | ||||||
9 | single-family residences. | ||||||
10 | (b) Any applicable taxpayer who fails to report in | ||||||
11 | accordance with this Section or who fails to include correct | ||||||
12 | information in the report shall pay a penalty of $50,000, on | ||||||
13 | notice and demand of the Department, to be deposited into the | ||||||
14 | Illinois Affordable Housing Trust Fund with the purpose of | ||||||
15 | funding housing programs for justice involved individuals and | ||||||
16 | providing rental and mortgage payment assistance. | ||||||
17 | (c) No penalty shall be imposed under this paragraph with | ||||||
18 | respect to any failure if it is shown that the failure is due | ||||||
19 | to reasonable cause and not to willful neglect. | ||||||
20 | Section 25. Sale of applicable single-family residences; | ||||||
21 | right of first refusal. | ||||||
22 | (a) An applicable taxpayer shall give notice to each | ||||||
23 | tenant of an applicable single-family residence of their | ||||||
24 | intent to sell the applicable single-family residence in which | ||||||
25 | the tenant resides. The notice under this subsection shall be |
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1 | mailed by certified mail. | ||||||
2 | (b) Before an applicable single-family residence may be | ||||||
3 | sold, the applicable taxpayer shall give notice to each tenant | ||||||
4 | of the residence, by certified mail, of any third-party bona | ||||||
5 | fide offer for sale that the taxpayer intends to accept. The | ||||||
6 | notice shall include the price and the terms and conditions of | ||||||
7 | the offer. The price shall be calculated as a single lump sum | ||||||
8 | amount that reflects (i) the total purchase price, or (ii) the | ||||||
9 | present value of any installment payments offered in lieu of | ||||||
10 | cash payments. | ||||||
11 | (c) Upon receiving notice of any third-party bona fide | ||||||
12 | offer, the tenant of that residence shall have the right to | ||||||
13 | purchase the subject property for the purpose of continuing | ||||||
14 | the use of the property as their residence. The tenant shall | ||||||
15 | (1) submit to the applicable taxpayer notice of their interest | ||||||
16 | in purchasing the applicable single-family residence; (2) | ||||||
17 | submit to the applicable taxpayer a proposed purchase and sale | ||||||
18 | agreement on substantially equivalent terms and conditions | ||||||
19 | within 45 days after receipt of notice of the bona fide offer | ||||||
20 | made; (3) obtain a binding commitment for any necessary | ||||||
21 | financing or guarantees within an additional 90 days after | ||||||
22 | execution of the purchase and sale agreement; and (4) close on | ||||||
23 | the purchase within an additional 90 days after the end of the | ||||||
24 | 90-day period under item (3). | ||||||
25 | No applicable taxpayer shall unreasonably refuse to enter | ||||||
26 | into, or unreasonably delay the execution or closing on, a |
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1 | purchase and sale or lease agreement with tenants who have | ||||||
2 | made a bona fide offer to meet the price and substantially | ||||||
3 | equivalent terms and conditions of an offer for which notice | ||||||
4 | is required to be given pursuant to subsection (b). Failure of | ||||||
5 | the tenants to submit such a purchase and sale agreement | ||||||
6 | within the first 45-day period, to obtain a binding commitment | ||||||
7 | for financing within the additional 90-day period, or to close | ||||||
8 | on the purchase within the second 90-day period shall serve to | ||||||
9 | terminate the rights of the residents to purchase the | ||||||
10 | applicable single-family residence. The time periods provided | ||||||
11 | in this Section may be extended by agreement. Nothing in this | ||||||
12 | Section shall be construed to require an applicable taxpayer | ||||||
13 | to provide financing to tenants except to the extent such | ||||||
14 | financing would be provided to the third-party offeror. | ||||||
15 | (d) The right of first refusal created in this Section | ||||||
16 | shall inure to the tenants for the time periods set forth in | ||||||
17 | this Section, beginning on the date of notice to the tenants | ||||||
18 | under paragraph (b). The effective period for such right of | ||||||
19 | first refusal shall obtain separately for each substantially | ||||||
20 | different bona fide offer to purchase the applicable | ||||||
21 | single-family residence, and for each offer substantially | ||||||
22 | equivalent to an offer made more than 3 months prior to the | ||||||
23 | later offer; provided however, that in the case of a | ||||||
24 | substantially equivalent offer made by a prospective buyer who | ||||||
25 | has previously made an offer for which notice to tenants was | ||||||
26 | required by subsection (b), the right of first refusal shall |
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1 | obtain only if the subsequent offer is made more than 6 months | ||||||
2 | after the earlier offer. The right of first refusal shall not | ||||||
3 | apply with respect to any offer received by the applicable | ||||||
4 | taxpayer for which a notice is not required pursuant to | ||||||
5 | subsection (b). No right of first refusal shall apply to a | ||||||
6 | government taking by eminent domain or negotiated purchase, a | ||||||
7 | forced sale pursuant to a foreclosure by an unrelated third | ||||||
8 | party, transfer by gift, devise or operation of law, or a sale | ||||||
9 | to a person who would be an heir at law if there were to be a | ||||||
10 | death intestate of a mobile home park owner. | ||||||
11 | (e) If the tenants of the applicable single-family | ||||||
12 | residence are not the successful purchasers, the applicable | ||||||
13 | taxpayer shall provide evidence of compliance with this | ||||||
14 | Section by filing an affidavit of compliance with the | ||||||
15 | Department within 7 days after the sale or lease of the park. | ||||||
16 | Section 900. The Illinois Affordable Housing Act is | ||||||
17 | amended by changing Section 5 as follows: | ||||||
18 | (310 ILCS 65/5) (from Ch. 67 1/2, par. 1255) | ||||||
19 | Sec. 5. Illinois Affordable Housing Trust Fund. | ||||||
20 | (a) There is hereby created the Illinois Affordable | ||||||
21 | Housing Trust Fund, hereafter referred to in this Act as the | ||||||
22 | "Trust Fund" to be held as a separate fund within the State | ||||||
23 | Treasury and to be administered by the Program Administrator. | ||||||
24 | The purpose of the Trust Fund is to finance projects of the |
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1 | Illinois Affordable Housing Program as authorized and approved | ||||||
2 | by the Program Administrator. The Funding Agent shall | ||||||
3 | establish, within the Trust Fund, a General Account, a Bond | ||||||
4 | Account, a Commitment Account and a Development Credits | ||||||
5 | Account. The Funding Agent shall authorize distribution of | ||||||
6 | Trust Fund moneys to the Program Administrator or a payee | ||||||
7 | designated by the Program Administrator for purposes | ||||||
8 | authorized by this Act. After receipt of the Trust Fund moneys | ||||||
9 | by the Program Administrator or designated payee, the Program | ||||||
10 | Administrator shall ensure that all those moneys are expended | ||||||
11 | for a public purpose and only as authorized by this Act. | ||||||
12 | (b) Except as otherwise provided in Section 8(c) of this | ||||||
13 | Act, there shall be deposited in the Trust Fund such amounts as | ||||||
14 | may become available under the provisions of this Act, | ||||||
15 | including, but not limited to: | ||||||
16 | (1) all receipts, including dividends, principal and | ||||||
17 | interest repayments attributable to any loans or | ||||||
18 | agreements funded from the Trust Fund; | ||||||
19 | (2) all proceeds of assets of whatever nature received | ||||||
20 | by the Program Administrator, and attributable to default | ||||||
21 | with respect to loans or agreements funded from the Trust | ||||||
22 | Fund; | ||||||
23 | (3) any appropriations, grants or gifts of funds or | ||||||
24 | property, or financial or other aid from any federal or | ||||||
25 | State agency or body, local government or any other public | ||||||
26 | organization or private individual made to the Trust Fund; |
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1 | (4) any income received as a result of the investment | ||||||
2 | of moneys in the Trust Fund; | ||||||
3 | (5) all fees or charges collected by the Program | ||||||
4 | Administrator or Funding Agent pursuant to this Act; | ||||||
5 | (6) amounts as provided in Section 31-35 of the Real | ||||||
6 | Estate Transfer Tax Law; | ||||||
7 | (7) other funds as appropriated by the General | ||||||
8 | Assembly; and | ||||||
9 | (8) any income, less costs and fees associated with | ||||||
10 | the Program Escrow, received by the Program Administrator | ||||||
11 | that is derived from Trust Fund Moneys held in the Program | ||||||
12 | Escrow prior to expenditure of such Trust Fund Moneys. | ||||||
13 | (c) Additional Trust Fund Purpose: Receipt and use of | ||||||
14 | federal funding for programs responding to the COVID-19 public | ||||||
15 | health emergency. Notwithstanding any other provision of this | ||||||
16 | Act or any other law limiting or directing the use of the Trust | ||||||
17 | Fund, the Trust Fund may receive, directly or indirectly, | ||||||
18 | federal funds from the Homeowner Assistance Fund authorized | ||||||
19 | under Section 3206 of the federal American Rescue Plan Act of | ||||||
20 | 2021 (Public Law 117-2). Any such funds shall be deposited | ||||||
21 | into a Homeowner Assistance Account which shall be established | ||||||
22 | within the Trust Fund by the Funding Agent so that such funds | ||||||
23 | can be accounted for separately from other funds in the Trust | ||||||
24 | Fund. Such funds may be used only in the manner and for the | ||||||
25 | purposes authorized in Section 3206 of the American Rescue | ||||||
26 | Plan Act of 2021 and in related federal guidance. Also, the |
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1 | Trust Fund may receive, directly or indirectly, federal funds | ||||||
2 | from the Emergency Rental Assistance Program authorized under | ||||||
3 | Section 3201 of the federal American Rescue Plan Act of 2021 | ||||||
4 | and Section 501 of Subtitle A of Title V of Division N of the | ||||||
5 | Consolidated Appropriations Act, 2021 (Public Law 116–260). | ||||||
6 | Any such funds shall be deposited into an Emergency Rental | ||||||
7 | Assistance Account which shall be established within the Trust | ||||||
8 | Fund by the Funding Agent so that such funds can be accounted | ||||||
9 | for separately from other funds in the Trust Fund. Such funds | ||||||
10 | may be used only in the manner and for the purposes authorized | ||||||
11 | in Section 3201 of the American Rescue Plan Act of 2021 and in | ||||||
12 | related federal guidance. Expenditures under this subsection | ||||||
13 | (c) are subject to annual appropriation to the Funding Agent. | ||||||
14 | Unless used in this subsection (c), the defined terms set | ||||||
15 | forth in Section 3 shall not apply to funds received pursuant | ||||||
16 | to the American Rescue Plan Act of 2021. Notwithstanding any | ||||||
17 | other provision of this Act or any other law limiting or | ||||||
18 | directing the use of the Trust Fund, funds received under the | ||||||
19 | American Rescue Plan Act of 2021 are not subject to the terms | ||||||
20 | and provisions of this Act except as specifically set forth in | ||||||
21 | this subsection (c). | ||||||
22 | (d) Additional Trust Fund Purpose. The Trust Fund may also | ||||||
23 | receive moneys that are designated for deposit into the Trust | ||||||
24 | Fund as provided in the House Illinois Families Act. Those | ||||||
25 | moneys may be used as provided in that Act. | ||||||
26 | (Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 7-1-23.) |
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1 | Section 999. Effective date. This Act takes effect upon | ||||||
2 | becoming law. |