Illinois General Assembly - Full Text of HB2621
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Full Text of HB2621  102nd General Assembly

HB2621enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB2621 EnrolledLRB102 11691 SPS 17025 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5COVID-19 Affordable Housing Grant Program Act.
 
6    Section 5. Purpose and findings. The State of Illinois
7faces a large shortage of decent, affordable rental housing
8for low-income and moderate-income households. The COVID-19
9pandemic has dramatically increased this need for affordable
10housing. The development of affordable housing will help
11Illinois to address the need for more housing, jobs, tax base,
12tax revenue, and population in the State. These funds will
13help developers to overcome increased construction costs
14related to pandemic-created supply shortages (in lumber and
15other materials) and to jump-start a housing recovery in
16Illinois in the wake of the pandemic. These funds will also
17incentivize and attract private equity and private lending and
18will allow the State to more fully use and draw down unused
19federal resources for affordable housing. Funding will be used
20for the acquisition, construction, development,
21predevelopment, or rehabilitation of affordable multifamily
22rental development.
 

 

 

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1    Section 10. Definitions. As used in this Act:
2    "Authority" means the Illinois Housing Development
3Authority.
4    "Disproportionately impacted area" means a census tract or
5comparable geographic area that meets at least one of the
6following criteria, as determined by the Department of
7Commerce and Economic Opportunity:
8        (1) the area has a poverty rate of at least 20%
9    according to the latest federal decennial census;
10        (2) 75% or more of the children in the area
11    participate in the federal free lunch program according to
12    reported statistics from the State Board of Education;
13        (3) at least 20% of the households in the area receive
14    assistance under the Supplemental Nutrition Assistance
15    Program; or
16        (4) the area has an average unemployment rate, as
17    determined by the Department of Employment Security, that
18    is more than 120% of the national unemployment average, as
19    determined by the United States Department of Labor, for a
20    period of at least 2 consecutive calendar years preceding
21    the date of the application.
22    "Federal tax credit" means the federal low-income housing
23tax credit provided by Section 42 of the federal Internal
24Revenue Code, including federal low-income housing tax credits
25issued pursuant to 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4).
26    "Qualified development" means a qualified low-income

 

 

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1housing project, as that term is defined in Section 42 of the
2federal Internal Revenue Code of 1986, that is located in the
3State and is determined to be eligible for the federal tax
4credit set forth in Section 42 of the Internal Revenue Code.
 
5    Section 15. Grant program. Subject to appropriation for
6this purpose, the Authority shall establish an affordable
7housing grant program to encourage the construction and
8rehabilitation of affordable multifamily rental housing in
9response to the COVID-19 pandemic. Funding may be used for the
10acquisition, construction, development, predevelopment, or
11rehabilitation of a qualified development. The goal of the
12grant program shall be to fund the development and
13preservation of up to 3,500 affordable rental homes and
14apartments by December 31, 2024. Project sponsors who wish to
15participate in the affordable housing grant program shall
16submit a grant application to the Authority in accordance with
17rules adopted by the Authority. The Authority shall prescribe,
18by rule, standards and procedures for the provision of
19demonstration grant funds in relation to each grant
20application.
 
21    Section 20. Affordable multifamily rental housing gap
22financing. Where a qualified development has been awarded a
23federal tax credit, the recipient may request additional gap
24financing under this grant program as the Authority deems

 

 

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1appropriate. Through the program, the Authority shall provide
2grants with no expectation of repayment.
 
3    Section 25. Prioritization efforts.
4    (a) The Authority shall make best efforts to prioritize
5grant applications for proposed developments as follows:
6        (1) developments that are located within an area that
7    was disproportionately affected by the COVID-19 pandemic
8    based on the number of positive COVID-19 cases;
9        (2) developments involving contracts with certified
10    disadvantaged business enterprises and certified
11    underrepresented business enterprises owned by minorities,
12    women, veterans, LGBT persons, and persons with
13    disabilities during construction;
14        (3) developments involving project labor agreements
15    with local building trades; and
16        (4) developments involving contracts or subcontracts
17    with a registered apprenticeship program or
18    preapprenticeship program.
19    (b) The Authority shall balance the approval of projects
20between those located within a disproportionately impacted
21area as defined under this Act and those located in areas of
22opportunity, as defined or recognized by the Authority.
 
23    Section 30. Annual reporting to the General Assembly.
24    (a) The Authority shall submit an annual report to the

 

 

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1General Assembly no later than March 31 of each calendar year
2with the first annual report due no later than March 31, 2022.
3    (b) The annual report must describe the grant program's
4administration and the number and type of projects funded as
5of the date of the report with the following information:
6        (1) location of projects and demographics of the
7    surrounding community;
8        (2) accessibility of projects to public
9    transportation, schools, health care, grocery stores, and
10    banking institutions;
11        (3) total number of residential units developed or
12    rehabbed per project;
13        (4) total number of affordable units developed or
14    rehabbed per project;
15        (5) total number of affordable units put into service;
16        (6) number of program applications;
17        (7) number of applications awarded;
18        (8) amount of funding awarded through the program per
19    calendar year;
20        (9) amount of funding awarded through the grant
21    program to date;
22        (10) specific data for each prioritization category
23    listed under Section 25;
24        (11) delays or issues with development including, but
25    not limited to, acquisition, zoning and permits, labor,
26    and materials; and

 

 

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1        (12) any compliance issues with grant recipients and
2    the corrective action taken.
 
3    Section 35. Repeal. This Act is repealed on April 1, 2025.
 
4    Section 900. The Illinois Housing Development Act is
5amended by changing Section 7.28 and 22 as follows:
 
6    (20 ILCS 3805/7.28)
7    Sec. 7.28. Tax credit for donation to sponsors. The
8Authority may administer and adopt rules for an affordable
9housing tax donation credit program to provide tax credits for
10donations as set forth in this Section.
11    (a) In this Section:
12    "Administrative housing agency" means either the Authority
13or an agency of the City of Chicago.
14    "Affordable housing project" means either:
15        (1) (i) a rental project in which at least 25% of the
16    units have rents (including tenant-paid heat) that do not
17    exceed, on a monthly basis, maximum gross rent figures, as
18    published by the Authority, that are:
19            (i) based on data published annually by the U.S.
20        Department of Housing and Urban Development; ,
21            (ii) based on the annual income of households
22        earning 60% of the area median income; ,
23            (iii) computed using a 30% of gross monthly income

 

 

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1        standard; and
2            (iv) adjusted for unit size and at least 25% of the
3        units are occupied by persons and families whose
4        incomes do not exceed 60% of the median family income
5        for the geographic area in which the residential unit
6        is located; or
7        (2) (ii) a unit for sale to homebuyers whose gross
8    household income is at or below (A) 60% of the area median
9    income (for taxable years beginning prior to January 1,
10    2022) or (B) 120% of the area median income (for taxable
11    years beginning on or after January 1, 2022) and who pay no
12    more than 30% of their gross household income for mortgage
13    principal, interest, property taxes, and property
14    insurance (PITI).
15    "Donation" means money, securities, or real or personal
16property that is donated to a not-for-profit sponsor that is
17used solely for costs associated with either (i) purchasing,
18constructing, or rehabilitating an affordable housing project
19in this State, (ii) an employer-assisted housing project in
20this State, (iii) general operating support, or (iv) technical
21assistance as defined by this Section.
22    "Employer-assisted housing project" means either
23down-payment assistance, reduced-interest mortgages, mortgage
24guarantee programs, rental subsidies, or individual
25development account savings plans that are provided by
26employers to employees to assist in securing affordable

 

 

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1housing near the workplace work place, that are restricted to
2housing near the workplace work place, and that are restricted
3to employees whose gross household income is at or below 120%
4of the area median income.
5    "General operating support" means any cost incurred by a
6sponsor that is a part of its general program costs and is not
7limited to costs directly incurred by the affordable housing
8project.
9    "Geographical area" means the metropolitan area or county
10designated as an area by the federal Department of Housing and
11Urban Development under Section 8 of the United States Housing
12Act of 1937, as amended, for purposes of determining fair
13market rental rates.
14    "Median income" means the incomes that are determined by
15the federal Department of Housing and Urban Development
16guidelines and adjusted for family size.
17    "Project" means an affordable housing project, an
18employer-assisted housing project, general operating support,
19or technical assistance.
20    "Sponsor" means a not-for-profit organization that (i) is
21organized as a not-for-profit organization under the laws of
22this State or another state and (1) for an affordable housing
23project, has as one of its purposes the development of
24affordable housing; (2) for an employer-assisted housing
25project, has as one of its purposes home ownership education;
26and (3) for a technical assistance project, has as one of its

 

 

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1purposes either the development of affordable housing or home
2ownership education; (ii) is organized for the purpose of
3constructing or rehabilitating affordable housing units and
4has been issued a ruling from the Internal Revenue Service of
5the United States Department of the Treasury that the
6organization is exempt from income taxation under provisions
7of the Internal Revenue Code; or (iii) is an organization
8designated as a community development corporation by the
9United States government under Title VII of the Economic
10Opportunity Act of 1964.
11    "Tax credit" means a tax credit allowed under Section 214
12of the Illinois Income Tax Act.
13    "Technical assistance" means any cost incurred by a
14sponsor for project planning, assistance with applying for
15financing, or counseling services provided to prospective
16homebuyers.
17    (b) A sponsor must apply to an administrative housing
18agency for approval of the project. The administrative housing
19agency must reserve a specific amount of tax credits for each
20approved project. Tax credits for general operating support
21can only be reserved as part of a reservation of tax credits
22for an affordable housing project, an employer-assisted
23housing project, or technical assistance. No tax credits shall
24be allowed for a project without a reservation of such tax
25credits by an administrative housing agency for that project.
26    (c) The Authority must adopt rules establishing criteria

 

 

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1for eligible costs and donations, issuing and verifying tax
2credits, and selecting projects that are eligible for a tax
3credit.
4    (d) Tax credits for employer-assisted housing projects are
5limited to that pool of tax credits that have been set aside
6for employer-assisted housing. Tax credits for general
7operating support are limited to 10% of the total tax credit
8reservation for the related project (other than general
9operating support) and are also limited to that pool of tax
10credits that have been set aside for general operating
11support. Tax credits for technical assistance are limited to
12that pool of tax credits that have been set aside for technical
13assistance.
14    (e) The amount of tax credits reserved by the
15administrative housing agency for an approved project is
16limited to $32,850,352 in State fiscal years 2022 and 2023 $13
17million in the initial year and shall increase by 5% each
18fiscal year thereafter by 5%. The City of Chicago shall
19receive 24.5% of total tax credits authorized for each fiscal
20year. The Authority shall receive the balance of the tax
21credits authorized for each fiscal year. The tax credits may
22be used anywhere in this State. The tax credits have the
23following set-asides:
24        (1) for employer-assisted housing projects, $2
25    million; and
26        (2) for general operating support and technical

 

 

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1    assistance, $1 million.
2    The balance of the funds must be used for affordable
3housing projects. During the first 9 months of a fiscal year,
4if an administrative housing agency is unable to reserve the
5tax credits set aside for the purposes described in subsection
6(e), the administrative housing agency may reserve the tax
7credits for any approved projects.
8    (f) The administrative housing agency that reserves tax
9credits for an affordable housing project must record against
10the land upon which the affordable housing project is located
11an instrument to assure that the property maintains its
12affordable housing compliance for a minimum of 10 years. The
13Authority has flexibility to assure that the instrument does
14not cause undue hardship on homeowners.
15(Source: P.A. 92-491, eff. 8-23-01; 93-369, eff. 7-24-03.)
 
16    (20 ILCS 3805/22)  (from Ch. 67 1/2, par. 322)
17    Sec. 22. (a) The Authority shall not have outstanding at
18any one time bonds and notes for any of its corporate purposes
19in an aggregate principal amount exceeding $7,200,000,000
20$3,600,000,000, excluding bonds and notes issued to refund
21outstanding bonds and notes.
22    (b) Of the authorized aggregate principal amount of
23$7,200,000,000 $3,600,000,000 provided for by this Section,
24the amount of $150,000,000 shall be used for the purposes
25specified in Sections 7.23 and 7.24 of this Act.

 

 

HB2621 Enrolled- 12 -LRB102 11691 SPS 17025 b

1    (c) Of the $1,000,000,000 authorized by this amendatory
2Act of 1985, an amount not less than $100,000,000 shall be
3reserved for financing developments which involve the
4rehabilitation of dwelling accommodations, subject to the
5occupancy reservation of low or moderate income persons or
6families as provided in this Act.
7(Source: P.A. 87-250; 87-884; 88-93.)
 
8    Section 905. The Illinois Procurement Code is amended by
9changing Section 1-10 as follows:
 
10    (30 ILCS 500/1-10)
11    Sec. 1-10. Application.
12    (a) This Code applies only to procurements for which
13bidders, offerors, potential contractors, or contractors were
14first solicited on or after July 1, 1998. This Code shall not
15be construed to affect or impair any contract, or any
16provision of a contract, entered into based on a solicitation
17prior to the implementation date of this Code as described in
18Article 99, including, but not limited to, any covenant
19entered into with respect to any revenue bonds or similar
20instruments. All procurements for which contracts are
21solicited between the effective date of Articles 50 and 99 and
22July 1, 1998 shall be substantially in accordance with this
23Code and its intent.
24    (b) This Code shall apply regardless of the source of the

 

 

HB2621 Enrolled- 13 -LRB102 11691 SPS 17025 b

1funds with which the contracts are paid, including federal
2assistance moneys. This Code shall not apply to:
3        (1) Contracts between the State and its political
4    subdivisions or other governments, or between State
5    governmental bodies, except as specifically provided in
6    this Code.
7        (2) Grants, except for the filing requirements of
8    Section 20-80.
9        (3) Purchase of care, except as provided in Section
10    5-30.6 of the Illinois Public Aid Code and this Section.
11        (4) Hiring of an individual as employee and not as an
12    independent contractor, whether pursuant to an employment
13    code or policy or by contract directly with that
14    individual.
15        (5) Collective bargaining contracts.
16        (6) Purchase of real estate, except that notice of
17    this type of contract with a value of more than $25,000
18    must be published in the Procurement Bulletin within 10
19    calendar days after the deed is recorded in the county of
20    jurisdiction. The notice shall identify the real estate
21    purchased, the names of all parties to the contract, the
22    value of the contract, and the effective date of the
23    contract.
24        (7) Contracts necessary to prepare for anticipated
25    litigation, enforcement actions, or investigations,
26    provided that the chief legal counsel to the Governor

 

 

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1    shall give his or her prior approval when the procuring
2    agency is one subject to the jurisdiction of the Governor,
3    and provided that the chief legal counsel of any other
4    procuring entity subject to this Code shall give his or
5    her prior approval when the procuring entity is not one
6    subject to the jurisdiction of the Governor.
7        (8) (Blank).
8        (9) Procurement expenditures by the Illinois
9    Conservation Foundation when only private funds are used.
10        (10) (Blank).
11        (11) Public-private agreements entered into according
12    to the procurement requirements of Section 20 of the
13    Public-Private Partnerships for Transportation Act and
14    design-build agreements entered into according to the
15    procurement requirements of Section 25 of the
16    Public-Private Partnerships for Transportation Act.
17        (12) (A) Contracts for legal, financial, and other
18    professional and artistic services entered into on or
19    before December 31, 2018 by the Illinois Finance Authority
20    in which the State of Illinois is not obligated. Such
21    contracts shall be awarded through a competitive process
22    authorized by the members Board of the Illinois Finance
23    Authority and are subject to Sections 5-30, 20-160, 50-13,
24    50-20, 50-35, and 50-37 of this Code, as well as the final
25    approval by the members Board of the Illinois Finance
26    Authority of the terms of the contract.

 

 

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1        (B) Contracts for legal and financial services entered
2    into by the Illinois Housing Development Authority in
3    connection with the issuance of bonds in which the State
4    of Illinois is not obligated. Such contracts shall be
5    awarded through a competitive process authorized by the
6    members of the Illinois Housing Development Authority and
7    are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,
8    and 50-37 of this Code, as well as the final approval by
9    the members of the Illinois Housing Development Authority
10    of the terms of the contract.
11        (13) Contracts for services, commodities, and
12    equipment to support the delivery of timely forensic
13    science services in consultation with and subject to the
14    approval of the Chief Procurement Officer as provided in
15    subsection (d) of Section 5-4-3a of the Unified Code of
16    Corrections, except for the requirements of Sections
17    20-60, 20-65, 20-70, and 20-160 and Article 50 of this
18    Code; however, the Chief Procurement Officer may, in
19    writing with justification, waive any certification
20    required under Article 50 of this Code. For any contracts
21    for services which are currently provided by members of a
22    collective bargaining agreement, the applicable terms of
23    the collective bargaining agreement concerning
24    subcontracting shall be followed.
25        On and after January 1, 2019, this paragraph (13),
26    except for this sentence, is inoperative.

 

 

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1        (14) Contracts for participation expenditures required
2    by a domestic or international trade show or exhibition of
3    an exhibitor, member, or sponsor.
4        (15) Contracts with a railroad or utility that
5    requires the State to reimburse the railroad or utilities
6    for the relocation of utilities for construction or other
7    public purpose. Contracts included within this paragraph
8    (15) shall include, but not be limited to, those
9    associated with: relocations, crossings, installations,
10    and maintenance. For the purposes of this paragraph (15),
11    "railroad" means any form of non-highway ground
12    transportation that runs on rails or electromagnetic
13    guideways and "utility" means: (1) public utilities as
14    defined in Section 3-105 of the Public Utilities Act, (2)
15    telecommunications carriers as defined in Section 13-202
16    of the Public Utilities Act, (3) electric cooperatives as
17    defined in Section 3.4 of the Electric Supplier Act, (4)
18    telephone or telecommunications cooperatives as defined in
19    Section 13-212 of the Public Utilities Act, (5) rural
20    water or waste water systems with 10,000 connections or
21    less, (6) a holder as defined in Section 21-201 of the
22    Public Utilities Act, and (7) municipalities owning or
23    operating utility systems consisting of public utilities
24    as that term is defined in Section 11-117-2 of the
25    Illinois Municipal Code.
26        (16) Procurement expenditures necessary for the

 

 

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1    Department of Public Health to provide the delivery of
2    timely newborn screening services in accordance with the
3    Newborn Metabolic Screening Act.
4        (17) Procurement expenditures necessary for the
5    Department of Agriculture, the Department of Financial and
6    Professional Regulation, the Department of Human Services,
7    and the Department of Public Health to implement the
8    Compassionate Use of Medical Cannabis Program and Opioid
9    Alternative Pilot Program requirements and ensure access
10    to medical cannabis for patients with debilitating medical
11    conditions in accordance with the Compassionate Use of
12    Medical Cannabis Program Act.
13        (18) This Code does not apply to any procurements
14    necessary for the Department of Agriculture, the
15    Department of Financial and Professional Regulation, the
16    Department of Human Services, the Department of Commerce
17    and Economic Opportunity, and the Department of Public
18    Health to implement the Cannabis Regulation and Tax Act if
19    the applicable agency has made a good faith determination
20    that it is necessary and appropriate for the expenditure
21    to fall within this exemption and if the process is
22    conducted in a manner substantially in accordance with the
23    requirements of Sections 20-160, 25-60, 30-22, 50-5,
24    50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,
25    50-36, 50-37, 50-38, and 50-50 of this Code; however, for
26    Section 50-35, compliance applies only to contracts or

 

 

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1    subcontracts over $100,000. Notice of each contract
2    entered into under this paragraph (18) that is related to
3    the procurement of goods and services identified in
4    paragraph (1) through (9) of this subsection shall be
5    published in the Procurement Bulletin within 14 calendar
6    days after contract execution. The Chief Procurement
7    Officer shall prescribe the form and content of the
8    notice. Each agency shall provide the Chief Procurement
9    Officer, on a monthly basis, in the form and content
10    prescribed by the Chief Procurement Officer, a report of
11    contracts that are related to the procurement of goods and
12    services identified in this subsection. At a minimum, this
13    report shall include the name of the contractor, a
14    description of the supply or service provided, the total
15    amount of the contract, the term of the contract, and the
16    exception to this Code utilized. A copy of any or all of
17    these contracts shall be made available to the Chief
18    Procurement Officer immediately upon request. The Chief
19    Procurement Officer shall submit a report to the Governor
20    and General Assembly no later than November 1 of each year
21    that includes, at a minimum, an annual summary of the
22    monthly information reported to the Chief Procurement
23    Officer. This exemption becomes inoperative 5 years after
24    June 25, 2019 (the effective date of Public Act 101-27)
25    this amendatory Act of the 101st General Assembly.
26    Notwithstanding any other provision of law, for contracts

 

 

HB2621 Enrolled- 19 -LRB102 11691 SPS 17025 b

1entered into on or after October 1, 2017 under an exemption
2provided in any paragraph of this subsection (b), except
3paragraph (1), (2), or (5), each State agency shall post to the
4appropriate procurement bulletin the name of the contractor, a
5description of the supply or service provided, the total
6amount of the contract, the term of the contract, and the
7exception to the Code utilized. The chief procurement officer
8shall submit a report to the Governor and General Assembly no
9later than November 1 of each year that shall include, at a
10minimum, an annual summary of the monthly information reported
11to the chief procurement officer.
12    (c) This Code does not apply to the electric power
13procurement process provided for under Section 1-75 of the
14Illinois Power Agency Act and Section 16-111.5 of the Public
15Utilities Act.
16    (d) Except for Section 20-160 and Article 50 of this Code,
17and as expressly required by Section 9.1 of the Illinois
18Lottery Law, the provisions of this Code do not apply to the
19procurement process provided for under Section 9.1 of the
20Illinois Lottery Law.
21    (e) This Code does not apply to the process used by the
22Capital Development Board to retain a person or entity to
23assist the Capital Development Board with its duties related
24to the determination of costs of a clean coal SNG brownfield
25facility, as defined by Section 1-10 of the Illinois Power
26Agency Act, as required in subsection (h-3) of Section 9-220

 

 

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1of the Public Utilities Act, including calculating the range
2of capital costs, the range of operating and maintenance
3costs, or the sequestration costs or monitoring the
4construction of clean coal SNG brownfield facility for the
5full duration of construction.
6    (f) (Blank).
7    (g) (Blank).
8    (h) This Code does not apply to the process to procure or
9contracts entered into in accordance with Sections 11-5.2 and
1011-5.3 of the Illinois Public Aid Code.
11    (i) Each chief procurement officer may access records
12necessary to review whether a contract, purchase, or other
13expenditure is or is not subject to the provisions of this
14Code, unless such records would be subject to attorney-client
15privilege.
16    (j) This Code does not apply to the process used by the
17Capital Development Board to retain an artist or work or works
18of art as required in Section 14 of the Capital Development
19Board Act.
20    (k) This Code does not apply to the process to procure
21contracts, or contracts entered into, by the State Board of
22Elections or the State Electoral Board for hearing officers
23appointed pursuant to the Election Code.
24    (l) This Code does not apply to the processes used by the
25Illinois Student Assistance Commission to procure supplies and
26services paid for from the private funds of the Illinois

 

 

HB2621 Enrolled- 21 -LRB102 11691 SPS 17025 b

1Prepaid Tuition Fund. As used in this subsection (l), "private
2funds" means funds derived from deposits paid into the
3Illinois Prepaid Tuition Trust Fund and the earnings thereon.
4(Source: P.A. 100-43, eff. 8-9-17; 100-580, eff. 3-12-18;
5100-757, eff. 8-10-18; 100-1114, eff. 8-28-18; 101-27, eff.
66-25-19; 101-81, eff. 7-12-19; 101-363, eff. 8-9-19; revised
79-17-19.)
 
8    Section 915. The Illinois Income Tax Act is amended by
9changing Section 214 as follows:
 
10    (35 ILCS 5/214)
11    Sec. 214. Tax credit for affordable housing donations.
12    (a) Beginning with taxable years ending on or after
13December 31, 2001 and until the taxable year ending on
14December 31, 2026 December 31, 2021, a taxpayer who makes a
15donation under Section 7.28 of the Illinois Housing
16Development Act is entitled to a credit against the tax
17imposed by subsections (a) and (b) of Section 201 in an amount
18equal to 50% of the value of the donation. Partners,
19shareholders of subchapter S corporations, and owners of
20limited liability companies (if the limited liability company
21is treated as a partnership for purposes of federal and State
22income taxation) are entitled to a credit under this Section
23to be determined in accordance with the determination of
24income and distributive share of income under Sections 702 and

 

 

HB2621 Enrolled- 22 -LRB102 11691 SPS 17025 b

1703 and subchapter S of the Internal Revenue Code. Persons or
2entities not subject to the tax imposed by subsections (a) and
3(b) of Section 201 and who make a donation under Section 7.28
4of the Illinois Housing Development Act are entitled to a
5credit as described in this subsection and may transfer that
6credit as described in subsection (c).
7    (b) If the amount of the credit exceeds the tax liability
8for the year, the excess may be carried forward and applied to
9the tax liability of the 5 taxable years following the excess
10credit year. The tax credit shall be applied to the earliest
11year for which there is a tax liability. If there are credits
12for more than one year that are available to offset a
13liability, the earlier credit shall be applied first.
14    (c) The transfer of the tax credit allowed under this
15Section may be made (i) to the purchaser of land that has been
16designated solely for affordable housing projects in
17accordance with the Illinois Housing Development Act or (ii)
18to another donor who has also made a donation in accordance
19with Section 7.28 of the Illinois Housing Development Act.
20    (d) A taxpayer claiming the credit provided by this
21Section must maintain and record any information that the
22Department may require by regulation regarding the project for
23which the credit is claimed. When claiming the credit provided
24by this Section, the taxpayer must provide information
25regarding the taxpayer's donation to the project under the
26Illinois Housing Development Act.

 

 

HB2621 Enrolled- 23 -LRB102 11691 SPS 17025 b

1(Source: P.A. 99-915, eff. 12-20-16.)
 
2    Section 920. The Property Tax Code is amended by changing
3Section 10-260 and by adding Section 15-178 as follows:
 
4    (35 ILCS 200/10-260)
5    Sec. 10-260. Low-income housing. In determining the fair
6cash value of property receiving benefits from the Low-Income
7Housing Tax Credit authorized by Section 42 of the Internal
8Revenue Code, 26 U.S.C. 42, emphasis shall be given to the
9income approach, except in those circumstances where another
10method is clearly more appropriate.
11    In counties with more than 3,000,000 inhabitants, during a
12general reassessment year in accordance with Section 9-220 or
13at such other time that a property is reassessed, to determine
14the fair cash value of any low-income housing project that
15qualifies for the Low-Income Housing Tax Credit under Section
1642 of the Internal Revenue Code: (i) in assessing any building
17with 7 or more units, the assessment officer must consider the
18actual or projected net operating income attributable to the
19property, capitalized at rates for similarly encumbered
20Section 42 properties; and (ii) in assessing any building with
216 units or less, the assessment officer, prior to finalizing
22and certifying assessments to the Board of Review, shall
23reassess the building considering the actual or projected net
24operating income attributable to the property, capitalized at

 

 

HB2621 Enrolled- 24 -LRB102 11691 SPS 17025 b

1rates for similarly encumbered Section 42 properties. The
2capitalization rate for items (i) and (ii) shall be one that
3reflects the prevailing cost of capital for other types of
4similarly encumbered Section 42 properties in the geographic
5market in which the low-income housing project is located.
6    All low-income housing projects that seek to be assessed
7in accordance with the provisions of this Section shall
8certify to the appropriate local assessment officer that the
9owner or owners qualify for the Low-Income Housing Tax Credit
10under Section 42 of the Internal Revenue Code for the
11property, in a form prescribed by that assessment officer.
12(Source: P.A. 91-502, eff. 8-13-99; 92-16, eff. 6-28-01.)
 
13    (35 ILCS 200/15-178 new)
14    Sec. 15-178. Reduction in assessed value for affordable
15rental housing construction or rehabilitation.
16    (a) The General Assembly finds that there is a shortage of
17high quality affordable rental homes for low-income and
18very-low-income households throughout Illinois; that owners
19and developers of rental housing face significant challenges
20building newly constructed apartments or undertaking
21rehabilitation of existing properties that results in rents
22that are affordable for low-income and very-low-income
23households; and that it will help Cook County and other parts
24of Illinois address the extreme shortage of affordable rental
25housing by developing a statewide policy to determine the

 

 

HB2621 Enrolled- 25 -LRB102 11691 SPS 17025 b

1assessed value for newly constructed and rehabilitated
2affordable rental housing that both encourages investment and
3incentivizes property owners to keep rents affordable.
4    (b) Each chief county assessment officer shall implement
5special assessment programs to reduce the assessed value of
6all eligible newly constructed residential real property or
7qualifying rehabilitation to all eligible existing residential
8real property in accordance with subsection (c) for 10 taxable
9years after the newly constructed residential real property or
10improvements to existing residential real property are put in
11service. Any county with less than 3,000,000 inhabitants may
12decide not to implement one or both of the special assessment
13programs defined in subparagraph (1) of subsection (c) of this
14Section and subparagraph (2) of subsection (c) of this Section
15upon passage of an ordinance by a majority vote of the county
16board. Subsequent to a vote to opt out of this special
17assessment program, any county with less than 3,000,000
18inhabitants may decide to implement one or both of the special
19assessment programs defined in subparagraph (1) of subsection
20(c) of this Section and subparagraph (2) of subsection (c) of
21this Section upon passage of an ordinance by a majority vote of
22the county board. Property is eligible for the special
23assessment program if and only if all of the following factors
24have been met:
25        (1) at the conclusion of the new construction or
26    qualifying rehabilitation, the property consists of a

 

 

HB2621 Enrolled- 26 -LRB102 11691 SPS 17025 b

1    newly constructed multifamily building containing 7 or
2    more rental dwelling units or an existing multifamily
3    building that has undergone qualifying rehabilitation
4    resulting in 7 or more rental dwelling units; and
5        (2) the property meets the application requirements
6    defined in subsection (f).
7    (c) For those counties that are required to implement the
8special assessment program and do not opt out of such special
9assessment program, the chief county assessment officer for
10that county shall require that residential real property is
11eligible for the special assessment program if and only if one
12of the additional factors have been met:
13        (1) except as defined in subparagraphs (E), (F), and
14    (G) of paragraph (1) of subsection (f) of this Section,
15    prior to the newly constructed residential real property
16    or improvements to existing residential real property
17    being put in service, the owner of the residential real
18    property commits that, for a period of 10 years, at least
19    15% of the multifamily building's units will have rents as
20    defined in this Section that are at or below maximum rents
21    and are occupied by households with household incomes at
22    or below maximum income limits; or
23        (2) except as defined in subparagraphs (E), (F), and
24    (G) of paragraph (1) of subsection (f) of this Section,
25    prior to the newly constructed residential real property
26    or improvements to existing residential real property

 

 

HB2621 Enrolled- 27 -LRB102 11691 SPS 17025 b

1    located in a low affordability community being put in
2    service, the owner of the residential real property
3    commits that, for a period of 30 years after the newly
4    constructed residential real property or improvements to
5    existing residential real property are put in service, at
6    least 20% of the multifamily building's units will have
7    rents as defined in this Section that are at or below
8    maximum rents and are occupied by households with
9    household incomes at or below maximum income limits.
10    If a reduction in assessed value is granted under one
11special assessment program provided for in this Section, then
12that same residential real property is not eligible for an
13additional special assessment program under this Section at
14the same time.
15    (d) The amount of the reduction in assessed value for
16residential real property meeting the conditions set forth in
17subparagraph (1) of subsection (c) shall be calculated as
18follows:
19        (1) if the owner of the residential real property
20    commits for a period of at least 10 years that at least 15%
21    but fewer than 35% of the multifamily building's units
22    have rents at or below maximum rents and are occupied by
23    households with household incomes at or below maximum
24    income limits, the assessed value of the property used to
25    calculate the tax bill shall be reduced by an amount equal
26    to 25% of the assessed value of the property as determined

 

 

HB2621 Enrolled- 28 -LRB102 11691 SPS 17025 b

1    by the assessor for the property in the current taxable
2    year for the newly constructed residential real property
3    or based on the improvements to an existing residential
4    real property; and
5        (2) if the owner of the residential real property
6    commits for a period of at least 10 years that at least 35%
7    of the multifamily building's units have rents at or below
8    maximum rents and are occupied by households with
9    household incomes at or below maximum income limits, the
10    assessed value of the property used to calculate the tax
11    bill shall be reduced by an amount equal to 35% of the
12    assessed value of the property as determined by the
13    assessor for the property in the current assessment year
14    for the newly constructed residential real property or
15    based on the improvements to an existing residential real
16    property.
17    (e) The amount of the reduction for residential real
18property meeting the conditions set forth in subparagraph (2)
19of subsection (c) shall be calculated as follows:
20        (1) for the first, second, and third taxable year
21    after the residential real property is placed in service,
22    the residential real property is entitled to a reduction
23    in its assessed value in an amount equal to the difference
24    between the assessed value in the year for which the
25    incentive is sought and the assessed value for the
26    residential real property in the base year;

 

 

HB2621 Enrolled- 29 -LRB102 11691 SPS 17025 b

1        (2) for the fourth, fifth, and sixth taxable year
2    after the residential real property is placed in service,
3    the property is entitled to a reduction in its assessed
4    value in an amount equal to 80% of the difference between
5    the assessed value in the year for which the incentive is
6    sought and the assessed value for the residential real
7    property in the base year;
8        (3) for the seventh, eighth, and ninth taxable year
9    after the property is placed in service, the residential
10    real property is entitled to a reduction in its assessed
11    value in an amount equal to 60% of the difference between
12    the assessed value in the year for which the incentive is
13    sought and the assessed value for the residential real
14    property in the base year;
15        (4) for the tenth, eleventh, and twelfth taxable year
16    after the residential real property is placed in service,
17    the residential real property is entitled to a reduction
18    in its assessed value in an amount equal to 40% of the
19    difference between the assessed value in the year for
20    which the incentive is sought and the assessed value for
21    the residential real property in the base year; and
22        (5) for the thirteenth through the thirtieth taxable
23    year after the residential real property is placed in
24    service, the residential real property is entitled to a
25    reduction in its assessed value in an amount equal to 20%
26    of the difference between the assessed value in the year

 

 

HB2621 Enrolled- 30 -LRB102 11691 SPS 17025 b

1    for which the incentive is sought and the assessed value
2    for the residential real property in the base year.
3    (f) Application requirements.
4        (1) In order to receive the reduced valuation under
5    this Section, the owner must submit an application
6    containing the following information to the chief county
7    assessment officer for review in the form and by the date
8    required by the chief county assessment officer:
9            (A) the owner's name;
10            (B) the postal address and permanent index number
11        or numbers of the parcel or parcels for which the owner
12        is applying to receive reduced valuation under this
13        Section;
14            (C) a deed or other instrument conveying the
15        parcel or parcels to the current owner;
16            (D) written evidence that the new construction or
17        qualifying rehabilitation has been completed with
18        respect to the residential real property, including,
19        but not limited to, copies of building permits, a
20        notarized contractor's affidavit, and photographs of
21        the interior and exterior of the building after new
22        construction or rehabilitation is completed;
23            (E) written evidence that the residential real
24        property meets local building codes, or if there are
25        no local building codes, Housing Quality Standards, as
26        determined by the United States Department of Housing

 

 

HB2621 Enrolled- 31 -LRB102 11691 SPS 17025 b

1        and Urban Development;
2            (F) a list identifying the affordable units in
3        residential real property and a written statement that
4        the affordable units are comparable to the market rate
5        units in terms of unit type, number of bedrooms per
6        unit, quality of exterior appearance, energy
7        efficiency, and overall quality of construction;
8            (G) a written schedule certifying the rents in
9        each affordable unit and a written statement that
10        these rents do not exceed the maximum rents allowable
11        for the area in which the residential real property is
12        located;
13            (H) documentation from the administering agency
14        verifying the owner's participation in a qualifying
15        income-based rental subsidy program as defined in
16        subsection (e) of this Section if units receiving
17        rental subsidies are to be counted among the
18        affordable units in order to meet the thresholds
19        defined in this Section;
20            (I) a written statement identifying the household
21        income for every household occupying an affordable
22        unit and certifying that the household income does not
23        exceed the maximum income limits allowable for the
24        area in which the residential real property is
25        located;
26            (J) a written statement that the owner has

 

 

HB2621 Enrolled- 32 -LRB102 11691 SPS 17025 b

1        verified and retained documentation of household
2        income for every household occupying an affordable
3        unit; and
4            (K) any additional information consistent with
5        this Section as reasonably required by the chief
6        county assessment officer, including, but not limited
7        to, any information necessary to ensure compliance
8        with applicable local ordinances and to ensure the
9        owner is complying with the provisions of this
10        Section.
11        (1.1) In order for a development to receive the
12    reduced valuation under subsection (e), the owner must
13    provide evidence to the county assessor's office of a
14    fully executed project labor agreement entered into with
15    the applicable local building trades council, prior to
16    commencement of any and all construction, building,
17    renovation, demolition, or any material change to the
18    structure or land.
19        (2) The application requirements contained in
20    paragraph (1) of subsection (f) are continuing
21    requirements for the duration of the reduction in assessed
22    value received and may be annually or periodically
23    verified by the chief county assessment officer for the
24    county whereby the benefit is being issued.
25        (3) In lieu of submitting an application containing
26    the information prescribed in paragraph (1) of subsection

 

 

HB2621 Enrolled- 33 -LRB102 11691 SPS 17025 b

1    (f), the chief county assessment officer may allow for
2    submission of a substantially similar certification
3    granted by the Illinois Housing Development Authority or a
4    comparable local authority provided that the chief county
5    assessment officer independently verifies the veracity of
6    the certification with the Illinois Housing Development
7    Authority or comparable local authority.
8        (4) The chief county assessment officer shall notify
9    the owner as to whether or not the property meets the
10    requirements of this Section. If the property does not
11    meet the requirements of this Section, the chief county
12    assessment officer shall provide written notice of any
13    deficiencies to the owner, who shall then have 30 days
14    from the date of notification to provide supplemental
15    information showing compliance with this Section. The
16    chief county assessment officer shall, in its discretion,
17    grant additional time to cure any deficiency. If the owner
18    does not exercise this right to cure the deficiency, or if
19    the information submitted, in the sole judgment of the
20    chief county assessment officer, is insufficient to meet
21    the requirements of this Section, the chief county
22    assessment officer shall provide a written explanation of
23    the reasons for denial.
24        (5) The chief county assessment officer may charge a
25    reasonable application fee to offset the administrative
26    expenses associated with the program.

 

 

HB2621 Enrolled- 34 -LRB102 11691 SPS 17025 b

1        (6) The reduced valuation conferred by this Section is
2    limited as follows:
3            (A) The owner is eligible to apply for the reduced
4        valuation conferred by this Section beginning in the
5        first assessment year after the effective date of this
6        amendatory Act of the 102nd General Assembly through
7        December 31, 2027. If approved, the reduction will be
8        effective for the current assessment year, which will
9        be reflected in the tax bill issued in the following
10        calendar year. Owners that are approved for the
11        reduced valuation under paragraph (1) of subsection
12        (c) of this Section before December 31, 2027 shall, at
13        minimum, be eligible for annual renewal of the reduced
14        valuation during an initial 10-year period if annual
15        certification requirements are met for each of the 10
16        years, as described in subparagraph (B) of paragraph
17        (4) of subsection (d) of this Section.
18            (B) Property receiving a reduction outlined in
19        paragraph (1) of subsection (c) of this Section shall
20        continue to be eligible for an initial period of up to
21        10 years if annual certification requirements are met
22        for each of the 10 years, but shall be extended for up
23        to 2 additional 10-year periods with annual renewals
24        if the owner continues to meet the requirements of
25        this Section, including annual certifications, and
26        excluding the requirements regarding new construction

 

 

HB2621 Enrolled- 35 -LRB102 11691 SPS 17025 b

1        or qualifying rehabilitation defined in subparagraph
2        (D) of paragraph (1) of this subsection.
3            (C) The annual certification materials in the year
4        prior to final year of eligibility for the reduction
5        in assessed value must include a dated copy of the
6        written notice provided to tenants informing them of
7        the date of the termination if the owner is not seeking
8        a renewal.
9            (D) If the property is sold or transferred, the
10        purchaser or transferee must comply with all
11        requirements of this Section, excluding the
12        requirements regarding new construction or qualifying
13        rehabilitation defined in subparagraph (D) of
14        paragraph (1) of this subsection, in order to continue
15        receiving the reduction in assessed value. Purchasers
16        and transferees who comply with all requirements of
17        this Section excluding the requirements regarding new
18        construction or qualifying rehabilitation defined in
19        subparagraph (D) of paragraph (1) of this subsection
20        are eligible to apply for renewal on the schedule set
21        by the initial application.
22            (E) The owner may apply for the reduced valuation
23        if the residential real property meets all
24        requirements of this Section and the newly constructed
25        residential real property or improvements to existing
26        residential real property were put in service on or

 

 

HB2621 Enrolled- 36 -LRB102 11691 SPS 17025 b

1        after January 1, 2015. However, the initial 10-year
2        eligibility period or 30-year eligibility period,
3        depending on the applicable program, shall be reduced
4        by the number of years between the placed in service
5        date and the date the owner first receives this
6        reduced valuation.
7            (F) The owner may apply for the reduced valuation
8        within 2 years after the newly constructed residential
9        real property or improvements to existing residential
10        real property are put in service. However, the initial
11        10-year eligibility period or 30-year eligibility
12        period, depending on the applicable program, shall be
13        reduced for the number of years between the placed in
14        service date and the date the owner first receives
15        this reduced valuation.
16            (G) Owners of a multifamily building receiving a
17        reduced valuation through the Cook County Class 9
18        program during the year in which this amendatory Act
19        of the 102nd General Assembly takes effect shall be
20        deemed automatically eligible for the reduced
21        valuation defined in paragraph (1) of subsection (c)
22        of this Section in terms of meeting the criteria for
23        new construction or substantial rehabilitation for a
24        specific multifamily building regardless of when the
25        newly constructed residential real property or
26        improvements to existing residential real property

 

 

HB2621 Enrolled- 37 -LRB102 11691 SPS 17025 b

1        were put in service. If a Cook County Class 9 owner had
2        Class 9 status revoked on or after January 1, 2017 but
3        can provide documents sufficient to prove that the
4        revocation was in error or any deficiencies leading to
5        the revocation have been cured, the chief county
6        assessment officer may deem the owner to be eligible.
7        However, owners may not receive both the reduced
8        valuation under this Section and the reduced valuation
9        under the Cook County Class 9 program in any single
10        assessment year. In addition, the number of years
11        during which an owner has participated in the Class 9
12        program shall count against the 3 10-year periods of
13        eligibility for the reduced valuation as defined in
14        subparagraph (1) of subsection (c) of this Section.
15            (H) At the completion of the assessment reduction
16        period described in this Section: the entire parcel
17        will be assessed as otherwise provided by law.
18    (e) As used in this Section:
19    "Affordable units" means units that have rents that do not
20exceed the maximum rents as defined in this Section.
21    "Assessed value for the residential real property in the
22base year" means the value in effect at the end of the taxable
23year prior to the latter of: (1) the date of initial
24application; or (2) the date on which 20% of the total number
25of units in the property are occupied by eligible tenants
26paying eligible rent under this Section.

 

 

HB2621 Enrolled- 38 -LRB102 11691 SPS 17025 b

1    "Household income" includes the annual income for all the
2people who occupy a housing unit that is anticipated to be
3received from a source outside of the family during the
412-month period following admission or the annual
5recertification, including related family members and all the
6unrelated people who share the housing unit. Household income
7includes the total of the following income sources: wages,
8salaries and tips before any payroll deductions; net business
9income; interest and dividends; payments in lieu of earnings,
10such as unemployment and disability compensation, worker's
11compensation and severance pay; Social Security income,
12including lump sum payments; payments from insurance policies,
13annuities, pensions, disability benefits and other types of
14periodic payments, alimony, child support, and other regular
15monetary contributions; and public assistance, except for
16assistance from the Supplemental Nutrition Assistance Program
17(SNAP). "Household income" does not include: earnings of
18children under age 18; temporary income such as cash gifts;
19reimbursement for medical expenses; lump sums from
20inheritance, insurance payments, settlements for personal or
21property losses; student financial assistance paid directly to
22the student or to an educational institution; foster child
23care payments; receipts from government-funded training
24programs; assistance from the Supplemental Nutrition
25Assistance Program (SNAP).
26    "Low affordability community" means (1) a municipality or

 

 

HB2621 Enrolled- 39 -LRB102 11691 SPS 17025 b

1jurisdiction with less than 1,000,000 inhabitants in which 40%
2or less of its total year-round housing units are affordable,
3as determined by the Illinois Housing Development Authority
4during the exemption determination process under the
5Affordable Housing Planning and Appeal Act; (2) "D" zoning
6districts as now or hereafter designated in the Chicago Zoning
7Ordinance; or (3) a jurisdiction located in a municipality
8with 1,000,000 or more inhabitants that has been designated as
9a low affordability community by passage of a local ordinance
10by that municipality, specifying the census tract or property
11by permanent index number or numbers.
12    "Maximum income limits" means the maximum regular income
13limits for 60% of area median income for the geographic area in
14which the multifamily building is located for multifamily
15programs as determined by the United States Department of
16Housing and Urban Development and published annually by the
17Illinois Housing Development Authority.
18    "Maximum rent" means the maximum regular rent for 60% of
19the area median income for the geographic area in which the
20multifamily building is located for multifamily programs as
21determined by the United States Department of Housing and
22Urban Development and published annually by the Illinois
23Housing Development Authority. To be eligible for the reduced
24valuation defined in this Section, maximum rents are to be
25consistent with the Illinois Housing Development Authority's
26rules; or if the owner is leasing an affordable unit to a

 

 

HB2621 Enrolled- 40 -LRB102 11691 SPS 17025 b

1household with an income at or below the maximum income limit
2who is participating in qualifying income-based rental subsidy
3program, "maximum rent" means the maximum rents allowable
4under the guidelines of the qualifying income-based rental
5subsidy program.
6    "Qualifying income-based rental subsidy program" means a
7Housing Choice Voucher issued by a housing authority under
8Section 8 of the United States Housing Act of 1937, a tenant
9voucher converted to a project-based voucher by a housing
10authority or any other program administered or funded by a
11housing authority, the Illinois Housing Development Authority,
12another State agency, a federal agency, or a unit of local
13government where participation is limited to households with
14incomes at or below the maximum income limits as defined in
15this Section and the tenants' portion of the rent payment is
16based on a percentage of their income or a flat amount that
17does not exceed the maximum rent as defined in this Section.
18    "Qualifying rehabilitation" means, at a minimum,
19compliance with local building codes and the replacement or
20renovation of at least 2 primary building systems to be
21approved for the reduced valuation under paragraph (1) of
22subsection (d) of this Section and at least 5 primary building
23systems to be approved for the reduced valuation under
24subsection (e) of this Section. Although the cost of each
25primary building system may vary, to be approved for the
26reduced valuation under paragraph (1) of subsection (d) of

 

 

HB2621 Enrolled- 41 -LRB102 11691 SPS 17025 b

1this Section, the combined expenditure for making the building
2compliant with local codes and replacing primary building
3systems must be at least $8 per square foot for work completed
4between January 1 of the year in which this amendatory Act of
5the 102nd General Assembly takes effect and December 31 of the
6year in which this amendatory Act of the 102nd General
7Assembly takes effect and, in subsequent years, $8 adjusted by
8the Consumer Price Index for All Urban Consumers, as published
9annually by the U.S. Department of Labor. To be approved for
10the reduced valuation under paragraph (2) of subsection (d) of
11this Section, the combined expenditure for making the building
12compliant with local codes and replacing primary building
13systems must be at least $12.50 per square foot for work
14completed between January 1 of the year in which this
15amendatory Act of the 102nd General Assembly takes effect and
16December 31 of the year in which this amendatory Act of the
17102nd General Assembly takes effect, and in subsequent years,
18$12.50 adjusted by the Consumer Price Index for All Urban
19Consumers, as published annually by the U.S. Department of
20Labor. To be approved for the reduced valuation under
21subsection (e) of this Section, the combined expenditure for
22making the building compliant with local codes and replacing
23primary building systems must be at least $60 per square foot
24for work completed between January 1 of the year that this
25amendatory Act of the 102nd General Assembly becomes effective
26and December 31 of the year that this amendatory Act of the

 

 

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1102nd General Assembly becomes effective and, in subsequent
2years, $60 adjusted by the Consumer Price Index for All Urban
3Consumers, as published annually by the U.S. Department of
4Labor. "Primary building systems", together with their related
5rehabilitations, specifically approved for this program are:
6        (1) Electrical. All electrical work must comply with
7    applicable codes; it may consist of a combination of any
8    of the following alternatives:
9            (A) installing individual equipment and appliance
10        branch circuits as required by code (the minimum being
11        a kitchen appliance branch circuit);
12            (B) installing a new emergency service, including
13        emergency lighting with all associated conduits and
14        wiring;
15            (C) rewiring all existing feeder conduits ("home
16        runs") from the main switchgear to apartment area
17        distribution panels;
18            (D) installing new in-wall conduits for
19        receptacles, switches, appliances, equipment, and
20        fixtures;
21            (E) replacing power wiring for receptacles,
22        switches, appliances, equipment, and fixtures;
23            (F) installing new light fixtures throughout the
24        building including closets and central areas;
25            (G) replacing, adding, or doing work as necessary
26        to bring all receptacles, switches, and other

 

 

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1        electrical devices into code compliance;
2            (H) installing a new main service, including
3        conduit, cables into the building, and main disconnect
4        switch; and
5            (I) installing new distribution panels, including
6        all panel wiring, terminals, circuit breakers, and all
7        other panel devices.
8        (2) Heating. All heating work must comply with
9    applicable codes; it may consist of a combination of any
10    of the following alternatives:
11            (A) installing a new system to replace one of the
12        following heat distribution systems:
13                (i) piping and heat radiating units, including
14            new main line venting and radiator venting; or
15                (ii) duct work, diffusers, and cold air
16            returns; or
17                (iii) any other type of existing heat
18            distribution and radiation/diffusion components;
19            or
20            (B) installing a new system to replace one of the
21        following heat generating units:
22                (i) hot water/steam boiler;
23                (ii) gas furnace; or
24                (iii) any other type of existing heat
25            generating unit.
26        (3) Plumbing. All plumbing work must comply with

 

 

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1    applicable codes. Replace all or a part of the in-wall
2    supply and waste plumbing; however, main supply risers,
3    waste stacks and vents, and code-conforming waste lines
4    need not be replaced.
5        (4) Roofing. All roofing work must comply with
6    applicable codes; it may consist of either of the
7    following alternatives, separately or in combination:
8            (A) replacing all rotted roof decks and
9        insulation; or
10            (B) replacing or repairing leaking roof membranes
11        (10% is the suggested minimum replacement of
12        membrane); restoration of the entire roof is an
13        acceptable substitute for membrane replacement.
14        (5) Exterior doors and windows. Replace the exterior
15    doors and windows. Renovation of ornate entry doors is an
16    acceptable substitute for replacement.
17        (6) Floors, walls, and ceilings. Finishes must be
18    replaced or covered over with new material. Acceptable
19    replacement or covering materials are as follows:
20            (A) floors must have new carpeting, vinyl tile,
21        ceramic, refurbished wood finish, or a similar
22        substitute;
23            (B) walls must have new drywall, including joint
24        taping and painting; or
25            (C) new ceilings must be either drywall, suspended
26        type, or a similar material.

 

 

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1        (7) Exterior walls.
2            (A) replace loose or crumbling mortar and masonry
3        with new material;
4            (B) replace or paint wall siding and trim as
5        needed;
6            (C) bring porches and balconies to a sound
7        condition; or
8            (D) any combination of (A), (B), and (C).
9        (8) Elevators. Where applicable, at least 4 of the
10    following 7 alternatives must be accomplished:
11            (A) replace or rebuild the machine room controls
12        and refurbish the elevator machine (or equivalent
13        mechanisms in the case of hydraulic elevators);
14            (B) replace hoistway electro-mechanical items
15        including: ropes, switches, limits, buffers, levelers,
16        and deflector sheaves (or equivalent mechanisms in the
17        case of hydraulic elevators);
18            (C) replace hoistway wiring;
19            (D) replace door operators and linkage;
20            (E) replace door panels at each opening;
21            (F) replace hall stations, car stations, and
22        signal fixtures; or
23            (G) rebuild the car shell and refinish the
24        interior.
25        (9) Health and safety.
26            (A) Install or replace fire suppression systems;

 

 

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1            (B) install or replace security systems; or
2            (C) environmental remediation of lead-based paint,
3        asbestos, leaking underground storage tanks, or radon.
4        (10) Energy conservation improvements undertaken to
5    limit the amount of solar energy absorbed by a building's
6    roof or to reduce energy use for the property, including,
7    but not limited to, any of the following activities:
8            (A) installing or replacing reflective roof
9        coatings (flat roofs);
10            (B) installing or replacing R-49 roof insulation;
11            (C) installing or replacing R-19 perimeter wall
12        insulation;
13            (D) installing or replacing insulated entry doors;
14            (E) installing or replacing Low E, insulated
15        windows;
16            (F) installing or replacing WaterSense labeled
17        plumbing fixtures;
18            (G) installing or replacing 90% or better sealed
19        combustion heating systems;
20            (H) installing Energy Star hot water heaters;
21            (I) installing or replacing mechanical ventilation
22        to exterior for kitchens and baths;
23            (J) installing or replacing Energy Star
24        appliances;
25            (K) installing or replacing Energy Star certified
26        lighting in common areas; or

 

 

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1            (L) installing or replacing grading and
2        landscaping to promote on-site water retention if the
3        retained water is used to replace water that is
4        provided from a municipal source.
5        (11) Accessibility improvements. All accessibility
6    improvements must comply with applicable codes. An owner
7    may make accessibility improvements to residential real
8    property to increase access for people with disabilities.
9    As used in this paragraph (11), "disability" has the
10    meaning given to that term in the Illinois Human Rights
11    Act. As used in this paragraph (11), "accessibility
12    improvements" means a home modification listed under the
13    Home Services Program administered by the Department of
14    Human Services (Part 686 of Title 89 of the Illinois
15    Administrative Code) including, but not limited to:
16    installation of ramps, grab bars, or wheelchair lifts;
17    widening doorways or hallways; re-configuring rooms and
18    closets; and any other changes to enhance the independence
19    of people with disabilities.
20        (12) Any applicant who has purchased the property in
21    an arm's length transaction not more than 90 days before
22    applying for this reduced valuation may use the cost of
23    rehabilitation or repairs required by documented code
24    violations, up to a maximum of $2 per square foot, to meet
25    the qualifying rehabilitation requirements.
 

 

 

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1    Section 925. The Affordable Housing Planning and Appeal
2Act is amended by changing Sections 15, 25, and 50 and by
3adding Section 70 as follows:
 
4    (310 ILCS 67/15)
5    Sec. 15. Definitions. As used in this Act:
6    "Affordable housing" means housing that has a value or
7cost or rental amount that is within the means of a household
8that may occupy moderate-income or low-income housing. In the
9case of owner-occupied dwelling units, housing that is
10affordable means housing in which mortgage, amortization,
11taxes, insurance, and condominium or association fees, if any,
12constitute no more than 30% of the gross annual household
13income for a household of the size that may occupy the unit. In
14the case of dwelling units for rent, housing that is
15affordable means housing for which the rent, any required
16parking, maintenance, landlord-imposed fees, and utilities
17constitute no more than 30% of the gross annual household
18income for a household of the size that may occupy the unit.
19    "Affordable housing developer" means a nonprofit entity,
20limited equity cooperative or public agency, or private
21individual, firm, corporation, or other entity seeking to
22build an affordable housing development.
23    "Affordable housing development" means (i) any housing
24that is subsidized by the federal or State government or (ii)
25any housing in which at least 20% of the dwelling units are

 

 

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1subject to covenants or restrictions that require that the
2dwelling units be sold or rented at prices that preserve them
3as affordable housing for a period of at least 15 years, in the
4case of owner-occupied housing, and at least 30 years, in the
5case of rental housing.
6    "Approving authority" means the governing body of the
7county or municipality.
8    "Area median household income" means the median household
9income adjusted for family size for applicable income limit
10areas as determined annually by the federal Department of
11Housing and Urban Development under Section 8 of the United
12States Housing Act of 1937.
13    "Community land trust" means a private, not-for-profit
14corporation organized exclusively for charitable, cultural,
15and other purposes and created to acquire and own land for the
16benefit of the local government, including the creation and
17preservation of affordable housing.
18    "Development" means any building, construction,
19renovation, or excavation or any material change in any
20structure or land, or change in the use of such structure or
21land, that results in a net increase in the number of dwelling
22units in a structure or on a parcel of land by more than one
23dwelling unit.
24    "Exempt local government" means any local government in
25which at least 10% of its total year-round housing units are
26affordable, as determined by the Illinois Housing Development

 

 

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1Authority pursuant to Section 20 of this Act; or any
2municipality under 1,000 population.
3    "Household" means the person or persons occupying a
4dwelling unit.
5    "Housing trust fund" means a separate fund, either within
6a local government or between local governments pursuant to
7intergovernmental agreement, established solely for the
8purposes authorized in subsection (d) of Section 25,
9including, without limitation, the holding and disbursing of
10financial resources to address the affordable housing needs of
11individuals or households that may occupy low-income or
12moderate-income housing.
13    "Local government" means a county or municipality.
14    "Low-income housing" means housing that is affordable,
15according to the federal Department of Housing and Urban
16Development, for either home ownership or rental, and that is
17occupied, reserved, or marketed for occupancy by households
18with a gross household income that does not exceed 50% of the
19area median household income.
20    "Moderate-income housing" means housing that is
21affordable, according to the federal Department of Housing and
22Urban Development, for either home ownership or rental, and
23that is occupied, reserved, or marketed for occupancy by
24households with a gross household income that is greater than
2550% but does not exceed 80% of the area median household
26income.

 

 

HB2621 Enrolled- 51 -LRB102 11691 SPS 17025 b

1    "Non-appealable local government requirements" means all
2essential requirements that protect the public health and
3safety, including any local building, electrical, fire, or
4plumbing code requirements or those requirements that are
5critical to the protection or preservation of the environment.
6(Source: P.A. 98-287, eff. 8-9-13.)
 
7    (310 ILCS 67/25)
8    Sec. 25. Affordable housing plan.
9    (a) Prior to April 1, 2005, all non-exempt local
10governments must approve an affordable housing plan. Any local
11government that is determined by the Illinois Housing
12Development Authority under Section 20 to be non-exempt for
13the first time based on the recalculation of U.S. Census
14Bureau data after 2010 shall have 18 months from the date of
15notification of its non-exempt status to approve an affordable
16housing plan under this Act. On and after the effective date of
17this amendatory Act of the 102nd General Assembly, an
18affordable housing plan, or any revision thereof, shall not be
19adopted by a non-exempt local government until notice and
20opportunity for public hearing have first been afforded.
21    (b) For the purposes of this Act, the affordable housing
22plan shall consist of at least the following:
23        (i) a statement of the total number of affordable
24    housing units that are necessary to exempt the local
25    government from the operation of this Act as defined in

 

 

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1    Section 15 and Section 20;
2        (ii) an identification of lands within the
3    jurisdiction that are most appropriate for the
4    construction of affordable housing and of existing
5    structures most appropriate for conversion to, or
6    rehabilitation for, affordable housing, including a
7    consideration of lands and structures of developers who
8    have expressed a commitment to provide affordable housing
9    and lands and structures that are publicly or
10    semi-publicly owned;
11        (iii) incentives that local governments may provide
12    for the purpose of attracting affordable housing to their
13    jurisdiction; and
14        (iv) a goal of a minimum of 15% of all new development
15    or redevelopment within the local government that would be
16    defined as affordable housing in this Act; or a minimum of
17    a 3 percentage point increase in the overall percentage of
18    affordable housing within its jurisdiction, as described
19    in subsection (b) of Section 20 of this Act; or a minimum
20    of a total of 10% affordable housing within its
21    jurisdiction as described in subsection (b) of Section 20
22    of this Act. These goals may be met, in whole or in part,
23    through the creation of affordable housing units under
24    intergovernmental agreements as described in subsection
25    (e) of this Section.
26    (c) Within 60 days after the adoption of an affordable

 

 

HB2621 Enrolled- 53 -LRB102 11691 SPS 17025 b

1housing plan or revisions to its affordable housing plan, the
2local government must submit a copy of that plan to the
3Illinois Housing Development Authority.
4    (d) In order to promote the goals of this Act and to
5maximize the creation, establishment, or preservation of
6affordable housing throughout the State of Illinois, a local
7government, whether exempt or non-exempt under this Act, may
8adopt the following measures to address the need for
9affordable housing:
10        (1) Local governments may individually or jointly
11    create or participate in a housing trust fund or otherwise
12    provide funding or support for the purpose of supporting
13    affordable housing, including, without limitation, to
14    support the following affordable housing activities:
15            (A) Housing production, including, without
16        limitation, new construction, rehabilitation, and
17        adaptive re-use.
18            (B) Acquisition, including, without limitation,
19        land, single-family homes, multi-unit buildings, and
20        other existing structures that may be used in whole or
21        in part for residential use.
22            (C) Rental payment assistance.
23            (D) Home-ownership purchase assistance.
24            (E) Preservation of existing affordable housing.
25            (F) Weatherization.
26            (G) Emergency repairs.

 

 

HB2621 Enrolled- 54 -LRB102 11691 SPS 17025 b

1            (H) Housing related support services, including
2        homeownership education and financial counseling.
3            (I) Grants or loans to not-for-profit
4        organizations engaged in addressing the affordable
5        housing needs of low-income and moderate-income
6        households.
7        Local governments may authorize housing trust funds to
8    accept and utilize funds, property, and other resources
9    from all proper and lawful public and private sources so
10    long as those funds are used solely for addressing the
11    affordable housing needs of individuals or households that
12    may occupy low-income or moderate-income housing.
13        (2) A local government may create a community land
14    trust, which may: acquire developed or undeveloped
15    interests in real property and hold them for affordable
16    housing purposes; convey such interests under long-term
17    leases, including ground leases; convey such interests for
18    affordable housing purposes; and retain an option to
19    reacquire any such real property interests at a price
20    determined by a formula ensuring that such interests may
21    be utilized for affordable housing purposes.
22        (3) A local government may use its zoning powers to
23    require the creation and preservation of affordable
24    housing as authorized under Section 5-12001 of the
25    Counties Code and Section 11-13-1 of the Illinois
26    Municipal Code.

 

 

HB2621 Enrolled- 55 -LRB102 11691 SPS 17025 b

1        (4) A local government may accept donations of money
2    or land for the purpose of addressing the affordable
3    housing needs of individuals or households that may occupy
4    low-income or moderate-income housing. These donations may
5    include, without limitation, donations of money or land
6    from persons, as long as the donations are demonstrably
7    used to preserve, create, or subsidize low-income housing
8    or moderate-income housing within the jurisdiction in lieu
9    of building affordable housing.
10    (e) In order to encourage regional cooperation and the
11maximum creation of affordable housing in areas lacking such
12housing in the State of Illinois, any non-exempt local
13government may enter into intergovernmental agreements under
14subsection (e) of Section 25 with local governments within 10
15miles of its corporate boundaries in order to create
16affordable housing units to meet the goals of this Act. A
17non-exempt local government may not enter into an
18intergovernmental agreement, however, with any local
19government that contains more than 25% affordable housing as
20determined under Section 20 of this Act. All intergovernmental
21agreements entered into to create affordable housing units to
22meet the goals of this Act must also specify the basis for
23determining how many of the affordable housing units created
24will be credited to each local government participating in the
25agreement for purposes of complying with this Act. All
26intergovernmental agreements entered into to create affordable

 

 

HB2621 Enrolled- 56 -LRB102 11691 SPS 17025 b

1housing units to meet the goals of this Act must also specify
2the anticipated number of newly created affordable housing
3units that are to be credited to each local government
4participating in the agreement for purposes of complying with
5this Act. In specifying how many affordable housing units will
6be credited to each local government, the same affordable
7housing unit may not be counted by more than one local
8government.
9    (f) To enforce compliance with the provisions of this
10Section, and to encourage local governments to submit their
11affordable housing plans to the Illinois Housing Development
12Authority in a timely manner, the Illinois Housing Development
13Authority shall notify any local government and may notify the
14Office of the Attorney General that the local government is in
15violation of State law if the Illinois Housing Development
16Authority finds that the affordable housing plan submitted is
17not in substantial compliance with this Section or that the
18local government failed to submit an affordable housing plan.
19The Attorney General may enforce this provision of the Act by
20an action for mandamus or injunction or by means of other
21appropriate relief.
22(Source: P.A. 98-287, eff. 8-9-13.)
 
23    (310 ILCS 67/50)
24    Sec. 50. Housing Appeals Board.
25    (a) Prior to January 1, 2008, a Housing Appeals Board

 

 

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1shall be created consisting of 7 members appointed by the
2Governor as follows:
3        (1) a retired circuit judge or retired appellate
4    judge, who shall act as chairperson;
5        (2) a zoning board of appeals member;
6        (3) a planning board member;
7        (4) a mayor or municipal council or board 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
12Development Authority, ex officio, shall serve as a non-voting
13member. No more than 4 of the appointed members may be from the
14same political party. Appointments under items (2), (3), and
15(4) shall be from local governments that are not exempt under
16this Act.
17    (b) Initial terms of 4 members designated by the Governor
18shall be for 2 years. Initial terms of 3 members designated by
19the Governor shall be for one year. Thereafter, members shall
20be appointed for terms of 2 years. After a member's term
21expires, the member shall continue to serve until a successor
22is appointed. There shall be no limit to the number of terms an
23appointee may serve. A member shall receive no compensation
24for his or her services, but shall be reimbursed by the State
25for all reasonable expenses actually and necessarily incurred
26in the performance of his or her official duties. The board

 

 

HB2621 Enrolled- 58 -LRB102 11691 SPS 17025 b

1shall hear all petitions for review filed under this Act and
2shall conduct all hearings in accordance with the rules and
3regulations established by the chairperson. The Illinois
4Housing Development Authority shall provide space and clerical
5and other assistance that the Board may require.
6    (c) (Blank).
7    (d) To the extent possible, any vacancies in the Housing
8Appeals Board shall be filled within 90 days of the vacancy.
9(Source: P.A. 98-287, eff. 8-9-13.)
 
10    (310 ILCS 67/70 new)
11    Sec. 70. Home rule application. Unless otherwise provided
12under this Act or otherwise in accordance with State law, a
13unit of local government, including a home rule unit, or any
14non-home rule county within the unincorporated territory of
15the county, may not regulate the activities described in this
16Act in a manner more restrictive than the regulation of those
17activities by the State under this Act. This Section is a
18limitation under subsection (i) of Section 6 of Article VII of
19the Illinois Constitution on the concurrent exercise by home
20rule units of powers and functions exercised by the State.
 
21    Section 999. Effective date. This Act takes effect upon
22becoming law.