SB1926sam001 104TH GENERAL ASSEMBLY

Sen. Michael W. Halpin

Filed: 3/4/2025

10400SB1926sam001 LRB104 11184 KTG 23382 a

AMENDMENT TO SENATE BILL 1926

AMENDMENT NO. ______. Amend Senate Bill 1926 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Illinois Middle-Income Housing Grant Pilot Act.

Section 5. Definitions. As used in this Act.

"Authority" means the Illinois Housing Development Authority.

"Developer" includes for profit and nonprofit developers, as well as land banks.

"Development costs" means any costs associated with the construction or rehabilitation of a qualified residence.

"Household" means all persons using the qualified residence as their principal place of residence upon the sale or lease of the qualified residence by the developer.

"Household income" means the combined federal adjusted gross income of the members of the household for the taxable year immediately preceding the year in which the qualified residence is sold or rented to the members of the household.

"Qualified residence" means a single-family residence that is a new construction or has been rehabilitated with $30,000 or more in rehabilitative development costs incurred by the taxpayer and:

(1) for an owner occupied development, is sold under a contract with a term of one year or longer to one or more individuals with a combined household income that exceeds 80% of the median household income in Illinois but does not exceed 140% of the median household income in Illinois at the time of purchase; or

(2) for units available for rent, the developer has certified that the prevailing rent of each unit incentivized under the Illinois Middle-Income Housing Grant Pilot Program is consistent with the requirements of subsection (d) of Section 10. The city in which a development takes place must also have at least a $1,000 local match investment.

Section 10. Illinois Middle-Income Housing Grant Pilot Program.

(a) Subject to appropriation for this purpose, the Authority shall establish and administer a 3-year Illinois Middle-Income Housing Grant Pilot Program to facilitate housing development in targeted communities across the State of Illinois. Eligible grant applicants shall include developers specifically in any community with an authorized River Edge Redevelopment Zone or any municipality that contains a River Edge Redevelopment Zone. Any community with this designation is eligible to apply to support projects anywhere within such communities. The Authority may enter into a subcontract agreement with developers with qualified residences.

Awards can be used for both redevelopment and new development projects.

Grant proposals may be submitted to the Authority directly to be used as a part of a development agreement with an eligible developer.

(b) The Authority shall:

(1) Adopt rules to implement and administer the Illinois Middle-Income Housing Grant Pilot Program, including rules concerning applications.

(2) Adopt rules for owner occupied housing, substantially similar to the rental unit rules.

(3) Create a simple certification process for cities to follow to ensure quick access to funds to facilitate project development.

(4) Keep record of all requests, including requests above and beyond current funding availability to demonstrate statewide need.

(c) Grant awards shall be available for eligible developers at $20,000 per unit, calculated as 10% of the eligible cost of development up to $200,000.

(1) The overall cost per unit of the project must remain less than $300,000 per unit.

(2) Awards shall not exceed $1,000,000 per project.

(d) Developers must certify that rental units will be available at or below the U.S. Department of Housing and Urban Development's recommended price point for 140% of area median income.

(1) The units must remain rented at such threshold for 10 years - as certified by the developer and city, and submitted to the Authority.

(2) The Authority or the municipality in which a development takes place shall not require income verification by the developer for units developed under the pilot program. This paragraph shall not apply to other units developed under the same development agreement between the municipality and developer for which other incentives are utilized.

(e) The Illinois Middle-Income Housing Grant Pilot Program Fund is created as a special fund in the State treasury. The fund shall consist of any moneys appropriated to the Illinois Housing Development Authority for the Illinois Middle-Income Housing Grant Pilot Program and all interest earned on moneys in the fund. Moneys in the Fund shall be expended for the Illinois Middle-Income Housing Grant Pilot Program and for no other purpose.

Section 15. The State Finance Act is amended by adding Section 5.1030 as follows:

(30 ILCS 105/5.1030 new)

Sec. 5.1030. The Illinois Middle-Income Housing Grant Pilot Program Fund.".