Full Text of HB5538 98th General Assembly
HB5538 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5538 Introduced , by Rep. Barbara Flynn Currie SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Expands the housing opportunity area abatement program to also include long-term project-based Section 8 contracts (currently only housing choice voucher contracts). Provides that the portions of the program relating to long-term project-based Section 8 contracts shall be administered by the Illinois Housing Development Authority. Defines "long-term project-based Section 8 contract" and "Section 8", redefines "housing opportunity area", and makes other conforming changes. Extends the housing opportunity area abatement program through tax year 2024 (currently tax year 2014). Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section 18-173 as follows:
| 6 | | (35 ILCS 200/18-173)
| 7 | | Sec. 18-173. Housing opportunity area abatement program.
| 8 | | (a) For the purpose of promoting access to housing near | 9 | | work and in order to
promote economic diversity throughout | 10 | | Illinois and to alleviate the
concentration
of low-income | 11 | | households in areas of high poverty, a
housing opportunity area | 12 | | tax abatement program is created.
| 13 | | (b) As used in this Section:
| 14 | | "Housing authority" means either a housing authority | 15 | | created under the
Housing Authorities Act or other government | 16 | | agency that is authorized by the
United States government
under | 17 | | the United States Housing Act of 1937 to administer a housing | 18 | | choice
voucher
program, or the authorized agent of such a | 19 | | housing authority that is authorized
to
act upon that | 20 | | authority's behalf.
| 21 | | "Housing choice voucher" means a tenant voucher issued by a | 22 | | housing authority
under Section 8 of the United States Housing | 23 | | Act of 1937 and a tenant voucher converted to a project-based |
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| 1 | | voucher by a housing authority.
| 2 | | "Housing opportunity area" means a census tract where less | 3 | | than 8% 10% of the
residents live below the poverty level, as | 4 | | defined by the United States
government and determined by | 5 | | American Community Survey data in the year of the most recent | 6 | | federal decennial census United States census, that is
located | 7 | | within a qualified township , except for census tracts located | 8 | | within any township that is located wholly within a | 9 | | municipality with 1,000,000 or more inhabitants. A census tract | 10 | | that is located within a township that is located wholly within | 11 | | a municipality with 1,000,000 or more inhabitants is considered | 12 | | a housing opportunity area if less than 12% of the residents of | 13 | | the census tract live below the poverty level.
| 14 | | "Housing opportunity unit" means a dwelling unit located in | 15 | | residential
property that is located in a housing opportunity | 16 | | area, that is owned by
the applicant, and that is rented to and | 17 | | occupied by a tenant who is
participating in
a housing choice | 18 | | voucher program administered by a housing authority , or whose | 19 | | unit is covered by a project-based Section 8 contract, as of
| 20 | | January 1st of the tax year for which the application is made.
| 21 | | "Long-term project-based Section 8 contract" means | 22 | | project-based rental subsidies provided to a private owner of | 23 | | certain properties pursuant to a Housing Assistance Payment | 24 | | Contract with a term of 10 years or more under Section 8 of the | 25 | | United States Housing Act. | 26 | | "Qualified units" means the number of housing opportunity |
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| 1 | | units located in
the property with the limitation that no more | 2 | | than 2 units or 20% of
the total units contained within the | 3 | | property, whichever is greater, may be
considered qualified | 4 | | units. Further, no unit may be considered qualified unless
the | 5 | | property in which it is contained is in substantial compliance | 6 | | with local
building codes, and, moreover, no unit may be | 7 | | considered qualified unless it
meets the United States | 8 | | Department of Housing and Urban Development's housing
quality
| 9 | | standards as of the most recent housing authority inspection or | 10 | | decent, safe, and sanitary standards as of the most recent Real | 11 | | Estate Assessment Center inspection .
| 12 | | "Qualified township" means a township located within a | 13 | | county with 200,000 or
more inhabitants whose tax capacity | 14 | | exceeds 80% of the average tax capacity of
the county in which | 15 | | it is located, except for townships located within a county
| 16 | | with 3,000,000 or more inhabitants, where a qualified township | 17 | | means a township
whose tax capacity exceeds 115% of the average | 18 | | tax capacity of the county
except for townships located wholly | 19 | | within a municipality with 1,000,000 or
more inhabitants. All | 20 | | townships located wholly within a municipality with
1,000,000 | 21 | | or more inhabitants are considered qualified townships.
| 22 | | "Section 8" means Section 8 of the United States Housing | 23 | | Act. | 24 | | "Tax capacity" means the equalized assessed value of all | 25 | | taxable real estate
located within a township or county divided | 26 | | by the total population of that
township or county.
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| 1 | | (c) The owner of property located within a housing | 2 | | opportunity area who has
a housing choice voucher contract or a | 3 | | long-term project-based Section 8 contract may annually apply | 4 | | for a housing opportunity area tax abatement. Owners with | 5 | | housing choice voucher contracts must submit applications to | 6 | | the housing authority that administers the housing choice | 7 | | voucher contract. Owners with long-term project-based Section | 8 | | 8 contracts must submit applications to the Illinois Housing | 9 | | Development Authority. with a housing authority may apply for a
| 10 | | housing opportunity area tax abatement by annually submitting | 11 | | an application to
the housing authority that administers the | 12 | | housing choice voucher contract. The
application must include | 13 | | the number of housing opportunity units as well as the
total | 14 | | number of dwelling units contained within the property. The | 15 | | owner must,
under oath, self-certify as to the total number of | 16 | | dwelling units in the
property and must self-certify that the | 17 | | property is in substantial compliance
with local building | 18 | | codes. The housing
authority shall annually determine the | 19 | | number of qualified units located within
each property for | 20 | | which an application is made. The Illinois Housing Development | 21 | | Authority shall annually determine the number of qualified | 22 | | project-based Section 8 units within each property for which an | 23 | | application is made.
| 24 | | The housing authority and the Illinois Housing Development | 25 | | Authority shall establish rules and procedures governing the
| 26 | | application processes and may each charge an application fee. |
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| 1 | | The county clerk may
audit the
applications to determine that | 2 | | the properties subject
to the tax abatement meet the | 3 | | requirements of this Section. The
determination of eligibility | 4 | | of a property for the housing opportunity area
abatement shall | 5 | | be
made annually ; however, no property may receive an abatement | 6 | | for more than 10
tax years .
| 7 | | (d) The housing authority and the Illinois Housing | 8 | | Development Authority shall determine housing opportunity | 9 | | areas within their
its service areas area and annually deliver | 10 | | to the county clerk, in a manner
determined by the county | 11 | | clerk, a list of all properties containing qualified
units | 12 | | within those that service areas area by December 31st of the | 13 | | tax year for which the
property is eligible for abatement; the | 14 | | list shall include the number of
qualified units and the total | 15 | | number of dwelling units for each property.
| 16 | | The county clerk shall deliver annually to a housing | 17 | | authority or to the Illinois Housing Development Authority , | 18 | | upon
that housing authority's request, the most recent | 19 | | available equalized assessed
value for the county as a whole | 20 | | and for those taxing districts and townships so
specified by | 21 | | the requesting housing authority or the Illinois Housing | 22 | | Development Authority .
| 23 | | (e) The county clerk shall abate the tax attributed to a | 24 | | portion of the
property determined to be eligible for a housing | 25 | | opportunity area abatement.
The portion eligible for abatement | 26 | | shall be determined by reducing the
equalized assessment value |
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| 1 | | by a percentage calculated using the following
formula: 38% 19% | 2 | | of the equalized assessed value of the property
multiplied by a | 3 | | fraction where the numerator is the number of
qualified units | 4 | | and denominator is the total number of dwelling units
located | 5 | | within the property.
| 6 | | (f) Any municipality, except for municipalities with | 7 | | 1,000,000 or more
inhabitants, may annually petition the county | 8 | | clerk
to be excluded from a housing opportunity area if it is | 9 | | able to demonstrate
that more than 2.5% of the total | 10 | | residential units located within that
municipality are | 11 | | occupied by tenants under the housing choice voucher program or | 12 | | the project-based Section 8 program .
Properties located within | 13 | | an excluded municipality shall not be eligible for
the housing | 14 | | opportunity area abatement for the tax year in which the | 15 | | petition
is made.
| 16 | | (g) Applicability. This Section applies to tax years 2004 | 17 | | through 2024
2014 , unless extended by law.
| 18 | | (Source: P.A. 96-685, eff. 8-25-09.)
| 19 | | Section 99. Effective date. This Act takes effect upon | 20 | | becoming law.
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