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1    AN ACT concerning housing.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Rental Housing Support Program Act is
5amended by changing Section 25 as follows:
6    (310 ILCS 105/25)
7    Sec. 25. Criteria for awarding grants. The Authority
8shall adopt rules to govern the awarding of grants and the
9continuing eligibility for grants under Sections 15 and 20.
10Requests for proposals under Section 20 must specify that
11proposals must satisfy these rules. The rules must contain and
12be consistent with, but need not be limited to, the following
14        (1) Eligibility for tenancy in the units supported by
15    grants to local administering agencies must be limited to
16    households with gross income at or below 30% of the median
17    family income for the area in which the grant will be made.
18    Fifty percent of the units that are supported by any grant
19    must be set aside for households whose income is at or
20    below 15% of the area median family income for the area in
21    which the grant will be made, provided that local
22    administering agencies may negotiate flexibility in this
23    set-aside with the Authority if they demonstrate that they



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1    have been unable to locate sufficient tenants in this
2    lower income range. Income eligibility for units supported
3    by grants to local administering agencies must be verified
4    annually by landlords and submitted to local administering
5    agencies. Tenants must have sufficient income to be able
6    to afford the tenant's share of the rent. For grants
7    awarded under Section 20, eligibility for tenancy in units
8    supported by grants must be limited to households with a
9    gross income at or below 30% of area median family income
10    for the area in which the grant will be made. Fifty percent
11    of the units that are supported by any grant must be set
12    aside for households whose income is at or below 15% of the
13    median family income for the area in which the grant will
14    be made, provided that developers may negotiate
15    flexibility in this set-aside with the Authority or
16    municipality as defined in subsection (b) of Section 10 if
17    it demonstrates that it has been unable to locate
18    sufficient tenants in this lower income range. The
19    Authority shall determine what sources qualify as a
20    tenant's income. Once a tenant has received assistance
21    under the Program, the tenant shall remain eligible for
22    assistance under the Program until the tenant reaches an
23    income level of 35% of area median family income and will
24    then begin the transition out of the Program, as described
25    in the rules governing the Program.
26        (2) Local administering agencies should must include



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1    2-bedroom, 3-bedroom, and 4-bedroom units among those
2    intended to be supported by grants under the Program. In
3    grants under Section 15, the precise number of these units
4    among all the units intended to be supported by a grant
5    must be based on need in the community for larger units and
6    other factors that the Authority specifies in rules. The
7    local administering agency must specify the basis for the
8    numbers of these units that are proposed for support under
9    a grant. Local administering agencies must make a good
10    faith effort to comply with this allocation of unit sizes.
11    In grants awarded under Section 20, developers and the
12    Authority or municipality, as defined in subsection (b) of
13    Section 10, shall negotiate the numbers and sizes of units
14    to be built in a project and supported by the grant.
15        (3) Under grants awarded under Section 15, local
16    administering agencies must enter into a payment contract
17    with the landlord that defines the method of payment and
18    must pay subsidies to landlords on a quarterly basis and
19    in advance of the quarter paid for.
20        (4) Local administering agencies and developers must
21    specify how vacancies in units supported by a grant must
22    be advertised and they must include provisions for
23    outreach to local homeless shelters, organizations that
24    work with people with disabilities, and others interested
25    in affordable housing.
26        (5) The local administering agency or developer must



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1    establish a schedule for the tenant's rental obligation
2    for units supported by a grant. The tenant's share of the
3    rent must be a flat amount, calculated annually, based on
4    the size of the unit and the household's income category.
5    In establishing the schedule for the tenant's rental
6    obligation, the local administering agency or developer
7    must use 30% of gross income within an income range as a
8    guide, and it may charge an additional or lesser amount.
9        (6) The amount of the subsidy provided under a grant
10    for a unit must be the difference between the amount of the
11    tenant's obligation and the total amount of rent for the
12    unit. The total amount of rent for the unit must be
13    negotiated between the local administering authority and
14    the landlord under Section 15, or between the Authority or
15    municipality, as defined in subsection (b) of Section 10,
16    and the developer under Section 20, using comparable rents
17    for units of comparable size and condition in the
18    surrounding community as a guideline.
19        (7) Local administering agencies and developers,
20    pursuant to criteria the Authority develops in rules, must
21    ensure that there are procedures in place to maintain the
22    safety and habitability of units supported under grants.
23    Local administering agencies must inspect units before
24    supporting them under a grant awarded under Section 15.
25        (8) Local administering agencies must provide or
26    ensure that tenants are provided with a "bill of rights"



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1    with their lease setting forth local landlord-tenant laws
2    and procedures and contact information for the local
3    administering agency.
4        (9) A local administering agency must create a plan
5    detailing a process for helping to provide information,
6    when necessary, on how to access education, training, and
7    other supportive services to tenants living in units
8    supported under the grant. The plan must be submitted as a
9    part of the administering agency's proposal to the
10    Authority required under Section 15.
11        (10) Local administering agencies and developers may
12    not use funding under the grant to develop or support
13    housing that requires that a tenant has a particular
14    diagnosis or type of disability as a condition of
15    eligibility for occupancy unless the requirement is
16    mandated by another funding source for the housing. Local
17    administering agencies and developers may use grant
18    funding to develop integrated housing opportunities for
19    persons with disabilities, but not housing restricted to a
20    specific disability type.
21        (11) In order to plan for periodic fluctuations in
22    annual receipts on deposit appropriated to the Fund each
23    year, the Authority shall establish by rule a mechanism
24    for establishing a reserve fund and the level of funding
25    that shall be held in reserve either by the Authority or by
26    local administering agencies.



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1        (12) The Authority shall perform annual
2    reconciliations of all distributions made in connection
3    with the Program and may offset future distributions to
4    balance geographic distribution requirements of this Act.
5(Source: P.A. 99-97, eff. 7-22-15.)