093_HB0220

 
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 1        AN ACT concerning affordable housing.

 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
 5    Builders' Appeal Act.

 6        Section 5.  Findings. The legislature finds and  declares
 7    that:
 8             (1)  there  exists  an acute shortage of affordable,
 9        accessible, safe, and sanitary housing for low-income and
10        moderate-income households in the State;
11             (2)  it  is  imperative   that   action   be   taken
12        immediately  to assure the availability of low-income and
13        moderate-income housing; and
14             (3)  it is necessary for all  local  governments  in
15        the   State   to   assist  in  providing  low-income  and
16        moderate-income  housing  opportunities  to  assure   the
17        health, safety, and welfare of all citizens of the State.

18        Section  10.  Purpose.  The  purpose  of  this  Act is to
19    provide  expeditious  relief  from   local   ordinances   and
20    regulations  that  inhibit  the  construction  of  affordable
21    housing   needed  to  serve  low-income  and  moderate-income
22    households in this State. The provisions of this Act shall be
23    liberally construed to accomplish this purpose.

24        Section 15.  Definitions. As used in this Act:
25        "Affordable housing" means housing that has a sales price
26    or rental amount that is within the means of a household that
27    may occupy moderate-income, low-income,  or  very  low-income
28    housing. In the case of dwelling units for sale, housing that
29    is  affordable means housing in which mortgage, amortization,
 
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 1    taxes, insurance, and condominium  or  association  fees,  if
 2    any,  constitute  no  more  than  30%  of  the  gross  annual
 3    household  income for a household of the size that may occupy
 4    the unit. In the case of dwelling  units  for  rent,  housing
 5    that  is  affordable  means  housing  for  which the rent and
 6    utilities constitute no more than 35%  of  the  gross  annual
 7    household  income for a household of the size that may occupy
 8    the unit.
 9        "Affordable housing developer" means a nonprofit  entity,
10    limited   equity   cooperative,  public  agency,  or  private
11    individual, firm, corporation, or  other  entity  seeking  to
12    build an affordable housing development.
13        "Affordable  housing  development"  means (i) any housing
14    that is subsidized by the federal or State government or (ii)
15    any housing in which at least 20% of the dwelling  units  are
16    subject  to  covenants  or restrictions that require that the
17    dwelling units be sold or rented at prices that preserve them
18    as affordable housing for a period of at least 15 years.
19        "Approving  authority"  means  the  planning  commission,
20    zoning board of  appeals,  governing  body,  or  other  local
21    government  body designated by law or ordinance to review and
22    approve an affordable housing development.
23        "Development"   means   any    building,    construction,
24    renovation,    mining,    extraction,    dredging,   filling,
25    excavation, or drilling activity or operation;  any  material
26    change  in  the  use or appearance of any structure or in the
27    land itself; the division of land into parcels; any change in
28    the intensity or use of land, such  as  an  increase  in  the
29    number  of  dwelling  units  in  a structure or a change to a
30    commercial or industrial use from a less intensive  use;  and
31    any  activity  that  alters  a shore, beach, seacoast, river,
32    stream, lake,  pond,  canal,  marsh,  dune  area,  woodlands,
33    wetland,   endangered  species  habitat,  aquifer,  or  other
34    resource  area,  including  coastal  construction  or   other
 
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 1    activity.
 2        "Exempt local government" means:
 3             (1)  any  local  government in which at least 10% of
 4        its housing units, at the time  an  application  is  made
 5        under  this  Act,  have been subsidized by the federal or
 6        State government, or by a private entity,  and  in  which
 7        occupancy  is  restricted  or intended for low-income and
 8        moderate-income households;
 9             (2)  any local  government  whose  median  household
10        income  is,  according  to  most recent census data, less
11        than 80% of the median household income of the county  or
12        primary metropolitan statistical area as last defined and
13        delineated  by the U.S. Bureau of the Census in which the
14        local government is located; or
15             (3)  any  local  government  whose   percentage   of
16        substandard dwelling units in its total housing stock, as
17        determined by the most recently available census data, is
18        more  than  1.2  times  (120%)  the  percentage  of those
19        dwellings in the housing stock for the county or  primary
20        metropolitan   statistical   area   in  which  the  local
21        government is located.
22        "Household" means  the  person  or  persons  occupying  a
23    dwelling unit.
24        "Local   government"   means   a   county,  municipality,
25    township, or other political subdivision that has the primary
26    authority to review development plans.
27        "Low-income housing" means housing  that  is  affordable,
28    according  to  the  federal  Department  of Housing and Urban
29    Development, for either home ownership or rental, and that is
30    occupied, reserved, or marketed for occupancy  by  households
31    with a gross household income that does not exceed 50% of the
32    median gross household income for households of the same size
33    within the county or primary metropolitan statistical area in
34    which  the  housing is located. For purposes of this Act, the
 
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 1    term "low-income housing" includes "very low-income housing".
 2        "Moderate-income   housing"   means   housing   that   is
 3    affordable, according to the federal  Department  of  Housing
 4    and  Urban  Development, for either home ownership or rental,
 5    and that is occupied, reserved, or marketed for occupancy  by
 6    households with a gross household income that is greater than
 7    50%  but  does  not  exceed 80% of the median gross household
 8    income for households of the same size within the  county  or
 9    primary metropolitan statistical area in which the housing is
10    located.
11        "Unnecessary  cost  generating  requirements"  mean those
12    development standards that may be eliminated or reduced  that
13    are  not  essential  to protect the public health, safety, or
14    welfare or  that  are  not  critical  to  the  protection  or
15    preservation  of the environment, and that may otherwise make
16    a  project  economically  infeasible.  An  unnecessary   cost
17    generating  requirement  may  include, but is not limited to,
18    excessive standards or requirements for:  minimum  lot  size,
19    building  size, building setbacks, spacing between buildings,
20    impervious  surfaces,  open  space,  landscaping,  buffering,
21    reforestation, road  width,  pavements,  parking,  sidewalks,
22    paved  paths, culverts and stormwater drainage, and oversized
23    water and  sewer  lines  to  accommodate  future  development
24    without reimbursement.
25        "Very   low-income   housing"   means   housing  that  is
26    affordable, according to the federal  Department  of  Housing
27    and  Urban  Development, for either home ownership or rental,
28    and that is occupied, reserved, or marketed for occupancy  by
29    households with a gross household income equal to 30% or less
30    of  the  median  gross household income for households of the
31    same  size  within  the  county   or   primary   metropolitan
32    statistical area in which the housing is located.

33        Section   20.  Local   government  action  on  affordable
 
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 1    housing applications.
 2        (a)  An  affordable  housing  developer   may   file   an
 3    application  for  an  affordable  housing  development in any
 4    nonexempt local government with the approving  authority,  in
 5    accordance  with a checklist of items required for a complete
 6    application that is established by rule of the Department  of
 7    Commerce and Community Affairs.
 8        (b)  The approving authority shall review the application
 9    in accordance with the standards set forth in Section 25, and
10    has   the   power   to  issue  a  comprehensive  permit.  The
11    comprehensive  permit  shall  include  all  local  government
12    approvals  or  licenses,  other  than  a   building   permit,
13    necessary  for  the  authorization  of the affordable housing
14    development.  The approving authority shall hold at least one
15    public hearing on the proposal within 60 days  after  receipt
16    of  the  application  and  shall  render a decision within 40
17    business days after the conclusion of the public hearing.
18        (c)  Failure of the approving  authority  to  act  within
19    this  time  frame  means that the authority is deemed to have
20    approved the application, unless the time frame  is  extended
21    by a voluntary agreement with the applicant.

22        Section 25.  Basis for approving authority determination.
23        (a)  The  approving  authority shall grant approval of an
24    affordable housing development unless facts produced  in  the
25    record   at   the  public  hearing  or  otherwise  of  record
26    demonstrate that the development as proposed:
27             (1)  would have significant adverse effects  on  the
28        environment; or
29             (2)  would   significantly  conflict  with  planning
30        goals and policies specified in  the  local  government's
31        comprehensive plan, provided they are not designed to, or
32        do  not  have  the  effect  of,  rendering infeasible the
33        development of affordable housing while permitting  other
 
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 1        forms of housing.
 2        (b)  The  approving  authority may condition the approval
 3    of the affordable  housing  development  on  compliance  with
 4    local  government  development  standards,  contained  in  an
 5    ordinance   or   regulation,   that  are  necessary  for  the
 6    protection of the health  and  safety  of  residents  of  the
 7    proposed  development  or  of  the  residents  of  the  local
 8    government,  or  that promote better site and building design
 9    in relation to the area surrounding the proposed development,
10    provided that any ordinances or regulations must  be  equally
11    applicable  to both affordable housing developments and other
12    developments, and provided that any conditions do not  render
13    the  affordable housing development infeasible. The approving
14    authority shall waive local government development  standards
15    when   their   application  would  render  the  provision  of
16    affordable housing infeasible, unless a  waiver  would  cause
17    the   affordable  housing  development  to  have  significant
18    adverse effects on the environment.
19        (c)  For purposes of this Act, a requirement,  condition,
20    ordinance,   or   regulation   is  considered  to  render  an
21    affordable housing  development  proposed  by  an  affordable
22    housing  developer that is a nonprofit entity, limited equity
23    cooperative, or public agency infeasible when it renders  the
24    development  unable  to  proceed  in  accordance with program
25    requirements of any public  program  for  the  production  of
26    affordable   housing   in  view  of  the  amount  of  subsidy
27    realistically   available.   For   an   affordable    housing
28    development  proposed by an affordable housing developer that
29    is a private for-profit  individual,  firm,  corporation,  or
30    other  entity,  the imposition of unnecessary cost generating
31    requirements, either  alone  or  in  combination  with  other
32    requirements,  is  considered to render an affordable housing
33    development infeasible when it reduces the likely  return  on
34    the  development  to  a  point  where  a  reasonably  prudent
 
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 1    developer would not proceed.

 2        Section 30.  Appeal to State Housing Appeals Board.
 3        (a)  An affordable housing developer whose application is
 4    either  denied or approved with conditions that in his or her
 5    judgment  render  the   provision   of   affordable   housing
 6    infeasible  may, within 45 days after the decision, appeal to
 7    the State Housing Appeals Board  challenging  that  decision.
 8    The  Board  shall render a decision on the application within
 9    120 days after the appeal is filed. In its  determination  of
10    an  appeal,  the  Board shall conduct a de novo review of the
11    matter.
12        (b)  In rendering its decision, the Board shall  consider
13    the  facts  and  whether  the  approving  authority correctly
14    applied the standards  set  forth  in  Section  25.   In  any
15    proceeding  before  the  Board, the approving authority bears
16    the burden of demonstrating that  it  correctly  applied  the
17    standards set forth in Section 25 in denying or conditionally
18    approving   the   application   for   an  affordable  housing
19    development.
20        (c)  The  Board  may  affirm,  reverse,  or  modify   the
21    conditions  of,  or add conditions to, a decision made by the
22    approving authority. The decision of the Board constitutes an
23    order directed to the approving authority and is  binding  on
24    the local government, which shall forthwith issue any and all
25    necessary   permits   and   approvals   consistent  with  the
26    determination of the Board.
27        (d)  The appellate court has the  exclusive  jurisdiction
28    to review decisions of the Board.

29        Section  35.  Enforcement.  The order of the Board may be
30    enforced by the Board  or  by  the  applicant  in  an  action
31    brought in the circuit court.
 
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 1        Section  40.  Nonresidential  development  as  part of an
 2    affordable housing development.
 3        (a)  An applicant for development of property  that  will
 4    be   principally   devoted   to   nonresidential  uses  in  a
 5    nonresidential  zoning  district  has  the   status   of   an
 6    affordable  housing  developer  for  the purposes of this Act
 7    when the applicant proposes that no less than 20% of the area
 8    of the development or  20%  of  the  square  footage  of  the
 9    development be devoted to affordable housing, except that the
10    applicant bears the burden of proof of demonstrating that the
11    purposes  of  a  nonresidential  zoning  district will not be
12    impaired by  the  construction  of  housing  in  that  zoning
13    district  and  that  the  health,  safety, and welfare of the
14    residents of the affordable housing  will  not  be  adversely
15    affected  by  nonresidential  uses  either  in  existence  or
16    permitted in that zoning district.
17        (b)  For  purposes  of subsection (a), the square footage
18    of the  residential  portion  of  the  development  shall  be
19    measured  by  the  interior  floor  area  of  dwelling units,
20    excluding that portion that is unheated.  Square  footage  of
21    the  nonresidential  portion shall be calculated according to
22    the gross leasable area.

23        Section 45.  Overconcentration of affordable housing.  In
24    order  to  prevent  the  drastic  alteration of a community's
25    character through the exercise of the rights  conferred  upon
26    affordable  housing  developers by this Act, the requirements
27    to  approve  affordable  housing  developments  by  a   local
28    government as specified in this Act cease when:
29             (1)  the  local government fulfills the requirements
30        to become an exempt local government; or
31             (2)  the  number  of  units  of  affordable  housing
32        approved and built pursuant to  this  Act  exceeds  5,000
33        dwelling units over a period of 5 years.
 
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 1        Section 50.  Housing Appeals Board.
 2        (a)  A  Housing  Appeals Board is created consisting of 7
 3    members appointed by the Governor as follows:
 4             (1)  a circuit judge, who shall act as chairperson;
 5             (2)  a local zoning board member;
 6             (3)  a regional planning board member;
 7             (4)  a city council member;
 8             (5)  a county board member;
 9             (6)  an affordable housing developer; and
10             (7)  an affordable housing advocate.
11        In  addition,  the  Chairman  of  the  Illinois   Housing
12    Development   Authority,   ex   officio,  shall  serve  as  a
13    non-voting member.
14        (b)  Initial  terms  of  4  members  designated  by   the
15    Governor  shall  be  for  2 years. Initial terms of 3 members
16    designated by the Governor shall be for one year. Thereafter,
17    members shall be appointed for terms of  2  years.  A  member
18    shall  receive  no  compensation for his or her services, but
19    shall be reimbursed by the State for all reasonable  expenses
20    actually  and  necessarily incurred in the performance of his
21    or her official duties. The board shall  hear  all  petitions
22    for  review  filed  under  this  Act  and  shall  conduct all
23    hearings  in  accordance  with  the  rules  and   regulations
24    established   by   the   chairperson.  The  Illinois  Housing
25    Development Authority shall provide space  and  clerical  and
26    other assistance that the Board may require.