Synopsis As Introduced Amends the Illinois Housing Development Act. Provides that no later than July 1, 2022, the Illinois Housing Development Authority shall establish and administer the Rehab Program to help reclaim vacant and abandoned properties in communities of concentrated poverty. Provides that the purposes of the Rehab Program are: to encourage private sector investment in acquiring, rehabbing, and placing on the market, vacant and abandoned properties located in communities of concentrated poverty; to provide low-income families with more affordable housing options in modern, safe buildings while redressing historic discrimination against African Americans in housing; and other stated purposes. Provides that within 45 days of the satisfactory completion of a qualified project, the Authority shall pay to the qualified developer responsible for the project a Rehab Program incentive fee. Provides that after the initial pilot of the Rehab Program ends, and continuing thereafter, the Authority may authorize qualified projects in any calendar year in an amount not to exceed either $50,000,000 for the year in question, or, if the Authority is then utilizing bond proceeds to pay Rehab Program incentive fees as permitted under the amendatory Act, more than $250,000,000 in aggregate bond indebtedness then outstanding for all such bonds. Provides that the Authority may from time to time adopt rules requiring qualified developers to hire a certain percentage of workers for the qualified project in question from the community in which the qualified project is located. Provides that initially the Rehab Program shall be piloted out in 10 communities identified by the Authority that span the State, to ensure the program generates economic benefits equitably across Illinois. Permits the Authority to issue bonds and notes for the payment of Rehab Program incentive fees to qualified developers. Effective immediately.
Fiscal Note (Housing Development Authority)
Fiscal impact could be-offset with administration funding that is not currently contemplated in HB4784.
Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes: Provides that commencing State Fiscal Year 2023 (rather than no later than July 1, 2022), the Illinois Housing Development Authority shall establish and administer the Rehab Program to help reclaim vacant and abandoned properties in communities of concentrated poverty. Removes from the definition of "community of concentrated poverty" a community that is designated as or qualifies as a blighted or slum area under any federal, State, or local governmental authority or agency law, rule, regulation, or ordinance. Expands the definition of "project costs" to provide that the Authority shall issue regulations from time-to-time identifying what may be included within the rubric of reasonable costs for purposes of the amendatory Act, as well as the form and content of expense reporting a qualified developer must utilize. Makes a change to the definition of "qualified developer". In a provision concerning the administration of the Rehab Program, provides that within 45 days of the satisfactory completion of a qualified project, the Authority shall pay to the qualified developer responsible for such project a Rehab Program incentive fee in a dollar amount that is equal to: (i) the difference between the approved project costs for the qualified project in question and the fair market value of such completed qualified project; plus (ii) an amount equal to 5% of such approved project costs (rather than 5% of such fair market value). Removes a provision permitting the Authority to authorize qualified projects in any given calendar year in an amount not to exceed more than $250,000,000 in aggregate bond indebtedness then outstanding for all such bonds. Provides that the amount of Rehab Program incentive fees the Authority may issue during the pilot period shall be $30,000,000 (rather than $20,000,000). Removes a provision requiring the Authority to fund such incentive fees by issuing bonds if there are inadequate appropriations to cover the full fee amount during the pilot period. Instead provides that, to the extent authorized by the General Assembly and the Governor, the $30,000,000 appropriation for the pilot program shall be funded with proceeds the State receives under the federal American Rescue Plan Act of 2021. Removes a provision permitting the Authority to issue bonds for the payment of Rehab Program incentive fees to qualified developers. Effective immediately.