HB3813 94TH GENERAL ASSEMBLY

LRB094 10142 DRJ 40404 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB3813

Introduced 2/25/2005, by Rep. Julie Hamos

SYNOPSIS AS INTRODUCED:

310 ILCS 10/2	from Ch. 67 1/2, par. 2
310 ILCS 10/8.11a new
310 ILCS 10/8.19	from Ch. 67 1/2, par. 8.19
310 ILCS 10/8.20a new
310 ILCS 10/13	from Ch. 67 1/2, par. 13
310 ILCS 10/17	from Ch. 67 1/2, par. 17
310 ILCS 10/30.5 new
310 ILCS 10/30.10 new

Amends the Housing Authorities Act. Requires each housing authority to keep an accurate public account of all of its activities and of all receipts and expenditures and make an annual public report to the Department of Commerce and Economic Opportunity; requires the Department to submit to the Governor, the General Assembly, and the public an annual report that summarizes the annual reports of all the housing authorities. Provides that housing authorities, in the operation of their rental assistance programs, are to serve households with incomes of no more than 80% of the area median income. Adds definitions of "low-income household", very low-income household", "extremely low-income household", and "rental assistance program". Authorizes a housing authority to enter into a regional cooperative agreement with another housing authority or with a municipality. Provides that each housing authority is responsible for ensuring that its programs and activities are administered in a manner that will affirmatively further the goal of fair housing by examining its programs and proposed programs and identifying any impediments to fair housing choice within those programs and by taking other actions. Makes other changes. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning housing.

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

Section 5. The Housing Authorities Act is amended by changing Sections 2, 8.19, 13, and 17 and by adding Sections 8.11a, 8.20a, 30.5, and 30.10 as follows:

(310 ILCS 10/2) (from Ch. 67 1/2, par. 2)

Sec. 2. It is hereby declared as a matter of legislative determination that in order to promote and protect the health, safety, morals and welfare of the public, it is necessary in the public interest to provide for the creation of municipal corporations to be known as housing authorities, and to confer upon and vest in these housing authorities all powers necessary or appropriate in order that they may engage in low-rent housing and slum clearance projects, and provide rental assistance programs, and undertake land assembly, clearance, rehabilitation, development, and redevelopment projects as will tend to relieve the shortage of decent, safe, affordable, and sanitary dwellings; and that the powers herein conferred upon the housing authorities including the power to acquire and dispose of improved or unimproved property, to remove unsanitary or substandard conditions, to construct and operate housing accommodations, to regulate the maintenance of housing projects and to borrow, expend, loan, invest, and repay monies for the purposes herein set forth, are public objects and governmental functions essential to the public interest.

It is further declared as a matter of legislative determination that the crucial affordable housing shortage which continues to prevail throughout the State has contributed and will continue to contribute materially toward an increase in crime, juvenile delinquency, infant mortality, drug abuse, drug disability and disease; that by reason thereof it has become a social and economic imperative to broaden the powers of housing authorities with respect to the acquisition of property, the construction of housing accommodations, the provision of rental assistance programs and the assembly, clearance and sale or other disposition of property acquired for development or redevelopment by persons, firms and corporations; that the provisions of this Act are grounded in public necessity and predicated upon serious emergency conditions requiring immediate consideration and action, and that this amendatory Act embraces public objects and governmental functions essential to the public interest.

It is further declared that in municipalities of less than 500,000 population further stimulus must be provided for the conservation of urban areas and the prevention of slums if the public interest objectives of the Urban Community Conservation Act, are to be secured; that in these municipalities housing authorities should be authorized to initiate, plan, study and execute urban conservation projects as an alternative mechanism to that provided in the Urban Community Conservation Act; that unless this authority is so delegated there is a serious and substantial risk that many urban areas will deteriorate into actual slum and blight areas; and that to prevent the occurrence of these conditions and the social evils attendant thereon, and to protect and conserve the public interest, the provisions of this amendatory Act are necessary.

It is further declared as a matter of legislative determination that housing authorities, as part of their powers conferred in this Act, have a duty in the execution of those powers to promote the affirmative furtherance of fair housing, the deconcentration of poverty, and regional cooperation in all programs administered or supervised by the housing authorities.

(Source: P.A. 87-200.)

(310 ILCS 10/8.11a new)

Sec. 8.11a. Report to Department of Commerce and Economic Opportunity.

(a) Each housing authority shall keep an accurate public account of all of its activities and of all receipts and expenditures and make an annual public report to the Department. The report shall include but is not limited to information regarding: the proper selection of applicants for the rental assistance programs; the sound determination of reasonable rent for each unit leased; the establishment of payment standards within the required range of fair market rent; the extent of use of all available rental assistance programs; the locational patterns of participants in rental assistance programs; the amount of landlord participation in all rental assistance programs, particularly landlords with housing units in areas of economic opportunity and that foster racial integration; the innovative programs of housing authorities; any regional cooperative agreements; program participants' access to portability opportunities; compliance with affirmative fair housing marketing procedures; and the expansion of housing choice for rental assistance program participants outside areas of poverty and minority concentration.

(b) The Department shall prepare and submit to the Governor, the General Assembly, and the public an annual report that summarizes the annual reports of all the housing authorities for the State of Illinois filed with the Department under subsection (a).

(310 ILCS 10/8.19) (from Ch. 67 1/2, par. 8.19)

Sec. 8.19. The housing authority of any county, or of the several counties within its area of operation is authorized and permitted to operate a housing referral service. "Housing referral Service" for the purposes of this Section means that the Housing Authority establishing the service will use all of the information it has available by virtue of its duties under this Act, to assist persons with low incomes to find available housing that is decent, safe and sanitary and affordable without overcrowding, which is suitable for their needs. This service shall include housing anywhere within an authority's area of operation or in cooperation with any regional or State planning agency of any city, village or incorporated town wholly or partly within the area of its operation, but is not confined to housing projects of the authority. This service shall be without charge of any kind to the individuals seeking housing within their income range and shall be provided under rules promulgated by the Housing Authority.

"Low income" for the purposes of this Section means income as that term is defined by federal housing statutes and U.S. Department of Housing and Urban Development regulations.

(Source: P.A. 87-200.)

(310 ILCS 10/8.20a new)

Sec. 8.20a. Prioritization of low-income, very low-income and extremely low-income households.

(a) Housing authorities, in the operation of their rental assistance programs, are to serve households with incomes of no more than 80% of the area median income. Each housing authority, as defined in Section 17, in the operation of its rental assistance programs, shall, to the maximum extent practicable, serve households with incomes of less than 50% of the area median income, including households with incomes of less than 30% of the area median income. In administering its rental assistance programs, each housing authority shall to the maximum extent practicable attempt to serve households in the lower range of the income group for which the housing program was developed.

(b) Each housing authority shall target 75% of its new admissions to rental assistance programs to households with incomes of less than 30% of the area median income.

(310 ILCS 10/13) (from Ch. 67 1/2, par. 13)

Sec. 13. The Department may, in its discretion, prescribe methods and forms for keeping accounts, records and books to be used by an Authority, and prescribe accounts to which particular outlays and receipts shall be entered, charged, or credited. The Department may require an Authority to file periodical reports, but not more frequently than quarterly, covering its operations and activities in a form prescribed by the Department. The Department may also, from time to time, require an Authority to provide specific answers to questions on subjects when the Department desires information on those subjects.

The Department may investigate the conditions and affairs of an Authority, its dealings, transactions or relationships and the manner in which projects are managed, and may through its members or employees enter upon and inspect the property, equipment, buildings, plants and offices of an Authority and examine its books, contracts, records, documents and papers.

Every Authority shall further be subject to the further powers of supervision of the Department provided in Sections 27, 28 and 29 of the State Housing Act. This Section shall not apply with reference to any project financed in whole or in part by federal funds, so long as such project is supervised or controlled by the federal government or any agency or instrumentality thereof or designee or nominee thereof.

(Source: P.A. 87-200.)

(310 ILCS 10/17) (from Ch. 67 1/2, par. 17)

Sec. 17. The following terms, wherever used or referred to in this Act shall have the following respective meanings, unless in any case a different meaning clearly appears from the context:

(a) "Authority" or "housing authority" shall mean a municipal corporation organized in accordance with the provisions of this Act for the purposes, with the powers and subject to the restrictions herein set forth.

(b) "Area" or "area of operation" shall mean: (1) in the case of an authority which is created hereunder for a city, village, or incorporated town, the area within the territorial boundaries of said city, village, or incorporated town, and so long as no county housing authority has jurisdiction therein, the area within three miles from such territorial boundaries, except any part of such area located within the territorial boundaries of any other city, village, or incorporated town; and (2) in the case of a county shall include all of the county except the area of any city, village or incorporated town located therein in which there is an Authority. When an authority is created for a county subsequent to the creation of an authority for a city, village or incorporated town within the same county, the area of operation of the authority for such city, village or incorporated town shall thereafter be limited to the territory of such city, village or incorporated town, but the authority for such city, village or incorporated town may continue to operate any project developed in whole or in part in an area previously a part of its area of operation, or may contract with the county housing authority with respect to the sale, lease, development or administration of such project. When an authority is created for a city, village or incorporated town subsequent to the creation of a county housing authority which previously included such city, village or incorporated town within its area of operation, such county housing authority shall have no power to create any additional project within the city, village or incorporated town, but any existing project in the city, village or incorporated town currently owned and operated by the county housing authority shall remain in the ownership, operation, custody and control of the county housing authority.

(c) "Presiding officer" shall mean the presiding officer of the board of a county, or the mayor or president of a city, village or incorporated town, as the case may be, for which an Authority is created hereunder.

(d) "Commissioner" shall mean one of the members of an Authority appointed in accordance with the provisions of this Act.

(e) "Government" shall include the State and Federal governments and the governments of any subdivisions, agency or instrumentality, corporate or otherwise, of either of them.

(f) "Department" shall mean the Department of Commerce and Economic Opportunity Community Affairs.

(g) "Project" shall include all lands, buildings, and improvements, acquired, owned, leased, managed or operated by a housing authority, and all buildings and improvements constructed, reconstructed or repaired by a housing authority, designed to provide housing accommodations and facilities appurtenant thereto (including community facilities and stores) which are planned as a unit, whether or not acquired or constructed at one time even though all or a portion of the buildings are not contiguous or adjacent to one another; and the planning of buildings and improvements, the acquisition of property, the demolition of existing structures, the clearing of land, the construction, reconstruction, and repair of buildings or improvements and all other work in connection therewith. As provided in Sections 8.14 to 8.18, inclusive, "project" also means, for Housing Authorities for municipalities of less than 500,000 population and for counties, the conservation of urban areas in accordance with an approved conservation plan. "Project" shall also include (1) acquisition of (i) a slum or blighted area or a deteriorated or deteriorating area which is predominantly residential in character, or (ii) any other deteriorated or deteriorating area which is to be developed or redeveloped for predominantly residential uses, or (iii) platted urban or suburban land which is predominantly open and which because of obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise substantially impairs or arrests the sound growth of the community and which is to be developed for predominantly residential uses, or (iv) open unplatted urban or suburban land necessary for sound community growth which is to be developed for predominantly residential uses, or (v) any other area where parcels of land remain undeveloped because of improper platting, delinquent taxes or special assessments, scattered or uncertain ownerships, clouds on title, artificial values due to excessive utility costs, or any other impediments to the use of such area for predominantly residential uses; (2) installation, construction, or reconstruction of streets, utilities, and other site improvements essential to the preparation of sites for uses in accordance with the development or redevelopment plan; and (3) making the land available for development or redevelopment by private enterprise or public agencies (including sale, initial leasing, or retention by the local public agency itself). If in any city, village or incorporated town there exists a land clearance commission created under the "Blighted Areas Redevelopment Act of 1947" having the same area of operation as a housing authority created in and for any such municipality such housing authority shall have no power to acquire land of the character described in subparagraph (iii), (iv) or (v) of paragraph 1 of the definition of "project" for the purpose of development or redevelopment by private enterprise.

(h) "Community facilities" shall include lands, buildings, and equipment for recreation or social assembly, for education, health or welfare activities and other necessary utilities primarily for use and benefit of the occupants of housing accommodations to be constructed, reconstructed, repaired or operated hereunder.

(i) "Real property" shall include lands, lands under water, structures, and any and all easements, franchises and incorporeal hereditaments and estates, and rights, legal and equitable, including terms for years and liens by way of judgment, mortgage or otherwise.

(j) The term "governing body" shall include the city council of any city, the president and board of trustees of any village or incorporated town, the council of any city or village, and the county board of any county.

(k) The phrase "individual, association, corporation or organization" shall include any individual, private corporation, insurance company, housing corporation, neighborhood redevelopment corporation, non-profit corporation, incorporated or unincorporated group or association, educational institution, hospital, or charitable organization, and any mutual ownership or cooperative organization.

(l) "Conservation area", for the purpose of the exercise of the powers granted in Sections 8.14 to 8.18, inclusive, for housing authorities for municipalities of less than 500,000 population and for counties, means an area of not less than 2 acres in which the structures in 50% or more of the area are residential having an average age of 35 years or more. Such an area is not yet a slum or blighted area as defined in the Blighted Areas Redevelopment Act of 1947, but such an area by reason of dilapidation, obsolescence, deterioration or illegal use of individual structures, overcrowding of structures and community facilities, conversion of residential units into non-residential use, deleterious land use or layout, decline of physical maintenance, lack of community planning, or any combination of these factors may become a slum and blighted area.

(m) "Conservation plan" means the comprehensive program for the physical development and replanning of a "Conservation Area" as defined in paragraph (l) embodying the steps required to prevent such Conservation Area from becoming a slum and blighted area.

(n) "Fair use value" means the fair cash market value of real property when employed for the use contemplated by a "Conservation Plan" in municipalities of less than 500,000 population and in counties.

(o) "Community facilities" means, in relation to a "Conservation Plan", those physical plants which implement, support and facilitate the activities, services and interests of education, recreation, shopping, health, welfare, religion and general culture.

(p) "Loan agreement" means any agreement pursuant to which an Authority agrees to loan the proceeds of its revenue bonds issued with respect to a multifamily rental housing project or other funds of the Authority to any person upon terms providing for loan repayment installments at least sufficient to pay when due all principal of, premium, if any, and interest on the revenue bonds of the Authority issued with respect to the multifamily rental housing project, and providing for maintenance, insurance, and other matters as may be deemed desirable by the Authority.

(q) "Multifamily rental housing" means any rental project designed for mixed-income or low-income occupancy.

(r) "Rental assistance program" means any rental project, program, or unit of housing designed for mixed-income or low-income occupancy, including but not limited to projects, programs, or units of housing that: (i) receive the benefit of a subsidy in the form of tenant-based assistance under the Section 8 rent subsidy program for lower-income families or the Housing Choice Voucher Program of the United States Department of Housing and Urban Development authorized by 42 U.S.C. 1437f; or (ii) receive the benefit of a subsidy in the form of any other local, State, or federal rental assistance or rental support program administered or supervised by the housing authority.

(s) "Low-income household" means a household whose annual income does not exceed 80% of the median income for the area.

(t) "Very low-income household" means a household whose annual income does not exceed 50% of the median income for the area.

(u) "Extremely low-income household" means a household whose annual income does not exceed 30% of the median income for the area.

(Source: P.A. 92-481, eff. 8-23-01; revised 12-6-03.)

(310 ILCS 10/30.5 new)

Sec. 30.5. Regional cooperative agreements. For the purpose of enhancing portability, streamlining programs, and maximizing resources, any 2 or more housing authorities, or any housing authority and any municipality, may join or cooperate with one another to create regional cooperative agreements. Any such agreement shall set forth the rights, powers, and obligations of the parties to the agreement within the several cities or towns in which the parties operate.

(310 ILCS 10/30.10 new)

Sec. 30.10. Affirmative furtherance of fair housing. As set forth in subsection (G) of Section 1-102 of the Illinois Human Rights Act, it is the public policy of this State to establish Equal Opportunity and Affirmative Action as the policies of this State in all of its decisions, programs, and activities, and to assure that all State departments, boards, commissions, and instrumentalities rigorously take affirmative action to provide equality of opportunity and eliminate the effects of past discrimination in the internal affairs of State government and in their relations with the public.

Each housing authority thus is responsible for ensuring that its programs and activities are administered in a manner that will affirmatively further the goal of fair housing by: examining its programs and proposed programs and identifying any impediments to fair housing choice within those programs; addressing those impediments in a reasonable fashion in view of the resources available; working cooperatively with other housing authorities and local governments to implement initiatives to affirmatively further fair housing, including but not limited to streamlining and enhancing mobility and portability for rental assistance program participants, and ensuring the participation of landlords with housing units in areas of economic opportunity and that foster racial integration; and maintaining records reflecting these analyses and actions.

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