093_SB1465

 
                                     LRB093 10665 RCE 11004 b

 1        AN ACT concerning affordable housing.

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

 4        Section  1.  Short  title.  This  Act may be cited as the
 5    Builders' Appeal Act.

 6        Section 5.  Findings. The legislature finds and  declares
 7    that:
 8             (1)  there  exists  an acute shortage of affordable,
 9        accessible, safe, and sanitary housing for low-income and
10        moderate-income households in the State;
11             (2)  it  is  imperative   that   action   be   taken
12        immediately  to assure the availability of low-income and
13        moderate-income housing; and
14             (3)  it is necessary for all  local  governments  in
15        the   State   to   assist  in  providing  low-income  and
16        moderate-income  housing  opportunities  to  assure   the
17        health, safety, and welfare of all citizens of the State.

18        Section  10.  Purpose.  The  purpose  of  this  Act is to
19    provide  expeditious  relief  from   local   ordinances   and
20    regulations  that  inhibit  the  construction  of  affordable
21    housing   needed  to  serve  low-income  and  moderate-income
22    households in this State. The provisions of this Act shall be
23    liberally construed to accomplish this purpose.

24        Section 15.  Definitions. As used in this Act:
25        "Affordable housing" means housing that has a sales price
26    or rental amount that is within the means of a household that
27    may occupy moderate-income, low-income,  or  very  low-income
28    housing. In the case of dwelling units for sale, housing that
29    is  affordable means housing in which mortgage, amortization,
 
                            -2-      LRB093 10665 RCE 11004 b
 1    taxes, insurance, and condominium  or  association  fees,  if
 2    any,  constitute  no  more  than  30%  of  the  gross  annual
 3    household  income for a household of the size that may occupy
 4    the unit. In the case of dwelling  units  for  rent,  housing
 5    that  is  affordable  means  housing  for  which the rent and
 6    utilities constitute no more than 35%  of  the  gross  annual
 7    household  income for a household of the size that may occupy
 8    the unit.
 9        "Affordable housing developer" means a nonprofit  entity,
10    limited   equity   cooperative,  public  agency,  or  private
11    individual, firm, corporation, or  other  entity  seeking  to
12    build an affordable housing development.
13        "Affordable  housing  development"  means (i) any housing
14    that is subsidized by the federal or State government or (ii)
15    any housing in which at least 20% of the dwelling  units  are
16    subject  to  covenants  or restrictions that require that the
17    dwelling units be sold or rented at prices that preserve them
18    as affordable housing for a period of at least 30 years.
19        "Approving  authority"  means  the  planning  commission,
20    zoning board of  appeals,  governing  body,  or  other  local
21    government  body designated by law or ordinance to review and
22    approve an affordable housing development.
23        "Development"   means   any    building,    construction,
24    renovation,    mining,    extraction,    dredging,   filling,
25    excavation, or drilling activity or operation;  any  material
26    change  in  the  use or appearance of any structure or in the
27    land itself; the division of land into parcels; any change in
28    the intensity or use of land, such  as  an  increase  in  the
29    number  of  dwelling  units  in  a structure or a change to a
30    commercial or industrial use from a less intensive  use;  and
31    any  activity  that  alters  a shore, beach, seacoast, river,
32    stream, lake,  pond,  canal,  marsh,  dune  area,  woodlands,
33    wetland,   endangered  species  habitat,  aquifer,  or  other
34    resource  area,  including  coastal  construction  or   other
 
                            -3-      LRB093 10665 RCE 11004 b
 1    activity.
 2        "Exempt  local  government" means any local government in
 3    which at least 10% of its  housing  units,  at  the  time  an
 4    application  is  made under this Act, have been subsidized by
 5    the federal or State government, or by a private entity,  and
 6    in  which  occupancy is restricted or intended for low-income
 7    and moderate-income households.
 8        "Household" means  the  person  or  persons  occupying  a
 9    dwelling unit.
10        "Local   government"   means   a   county,  municipality,
11    township, or other political subdivision that has the primary
12    authority to review development plans.
13        "Low-income housing" means housing  that  is  affordable,
14    according  to  the  federal  Department  of Housing and Urban
15    Development, for either home ownership or rental, and that is
16    occupied, reserved, or marketed for occupancy  by  households
17    with a gross household income that does not exceed 50% of the
18    median gross household income for households of the same size
19    within the county or primary metropolitan statistical area in
20    which  the  housing is located. For purposes of this Act, the
21    term "low-income housing" includes "very low-income housing".
22        "Moderate-income   housing"   means   housing   that   is
23    affordable, according to the federal  Department  of  Housing
24    and  Urban  Development, for either home ownership or rental,
25    and that is occupied, reserved, or marketed for occupancy  by
26    households with a gross household income that is greater than
27    50%  but  does  not  exceed 80% of the median gross household
28    income for households of the same size within the  county  or
29    primary metropolitan statistical area in which the housing is
30    located.
31        "Unnecessary  cost  generating  requirements"  mean those
32    development standards that may be eliminated or reduced  that
33    are  not  essential  to protect the public health, safety, or
34    welfare or  that  are  not  critical  to  the  protection  or
 
                            -4-      LRB093 10665 RCE 11004 b
 1    preservation  of the environment, and that may otherwise make
 2    a  project  economically  infeasible.  An  unnecessary   cost
 3    generating  requirement  may  include, but is not limited to,
 4    excessive standards or requirements for:  minimum  lot  size,
 5    building  size, building setbacks, spacing between buildings,
 6    impervious  surfaces,  open  space,  landscaping,  buffering,
 7    reforestation, road  width,  pavements,  parking,  sidewalks,
 8    paved  paths, culverts and stormwater drainage, and oversized
 9    water and  sewer  lines  to  accommodate  future  development
10    without reimbursement.
11        "Very   low-income   housing"   means   housing  that  is
12    affordable, according to the federal  Department  of  Housing
13    and  Urban  Development, for either home ownership or rental,
14    and that is occupied, reserved, or marketed for occupancy  by
15    households with a gross household income equal to 30% or less
16    of  the  median  gross household income for households of the
17    same  size  within  the  county   or   primary   metropolitan
18    statistical area in which the housing is located.

19        Section   20.  Local   government  action  on  affordable
20    housing applications.
21        (a)  An  affordable  housing  developer   may   file   an
22    application  for  an  affordable  housing  development in any
23    nonexempt local government with the approving  authority,  in
24    accordance  with a checklist of items required for a complete
25    application that is established by rule of the Department  of
26    Commerce and Community Affairs.
27        (b)  The approving authority shall review the application
28    in accordance with the standards set forth in Section 25, and
29    has   the   power   to  issue  a  comprehensive  permit.  The
30    comprehensive  permit  shall  include  all  local  government
31    approvals  or  licenses,  other  than  a   building   permit,
32    necessary  for  the  authorization  of the affordable housing
33    development.  The approving authority shall hold at least one
 
                            -5-      LRB093 10665 RCE 11004 b
 1    public hearing on the proposal within 60 days  after  receipt
 2    of  the  application  and  shall  render a decision within 40
 3    business days after the conclusion of the public hearing.
 4        (c)  Failure of the approving  authority  to  act  within
 5    this  time  frame  means that the authority is deemed to have
 6    approved the application, unless the time frame  is  extended
 7    by a voluntary agreement with the applicant.

 8        Section 25.  Basis for approving authority determination.
 9        (a)  The  approving  authority shall grant approval of an
10    affordable housing development unless facts produced  in  the
11    record   at   the  public  hearing  or  otherwise  of  record
12    demonstrate that the development as proposed:
13             (1)  would have significant adverse effects  on  the
14        environment; or
15             (2)  would   significantly  conflict  with  planning
16        goals and policies specified in  the  local  government's
17        comprehensive plan, provided they are not designed to, or
18        do  not  have  the  effect  of,  rendering infeasible the
19        development of affordable housing while permitting  other
20        forms of housing.
21        (b)  The  approving  authority may condition the approval
22    of the affordable  housing  development  on  compliance  with
23    local  government  development  standards,  contained  in  an
24    ordinance   or   regulation,   that  are  necessary  for  the
25    protection of the health  and  safety  of  residents  of  the
26    proposed  development  or  of  the  residents  of  the  local
27    government,  or  that promote better site and building design
28    in relation to the area surrounding the proposed development,
29    provided that any ordinances or regulations must  be  equally
30    applicable  to both affordable housing developments and other
31    developments, and provided that any conditions do not  render
32    the  affordable housing development infeasible. The approving
33    authority shall waive local government development  standards
 
                            -6-      LRB093 10665 RCE 11004 b
 1    when   their   application  would  render  the  provision  of
 2    affordable housing infeasible, unless a  waiver  would  cause
 3    the   affordable  housing  development  to  have  significant
 4    adverse effects on the environment.
 5        (c)  For purposes of this Act, a requirement,  condition,
 6    ordinance,   or   regulation   is  considered  to  render  an
 7    affordable housing  development  proposed  by  an  affordable
 8    housing  developer that is a nonprofit entity, limited equity
 9    cooperative, or public agency infeasible when it renders  the
10    development  unable  to  proceed  in  accordance with program
11    requirements of any public  program  for  the  production  of
12    affordable   housing   in  view  of  the  amount  of  subsidy
13    realistically   available.   For   an   affordable    housing
14    development  proposed by an affordable housing developer that
15    is a private for-profit  individual,  firm,  corporation,  or
16    other  entity,  the imposition of unnecessary cost generating
17    requirements, either  alone  or  in  combination  with  other
18    requirements,  is  considered to render an affordable housing
19    development infeasible when it reduces the likely  return  on
20    the  development  to  a  point  where  a  reasonably  prudent
21    developer would not proceed.

22        Section 30.  Appeal to State Housing Appeals Board.
23        (a)  An affordable housing developer whose application is
24    either  denied or approved with conditions that in his or her
25    judgment  render  the   provision   of   affordable   housing
26    infeasible  may, within 45 days after the decision, appeal to
27    the State Housing Appeals Board  challenging  that  decision.
28    The  Board  shall render a decision on the application within
29    120 days after the appeal is filed. In its  determination  of
30    an  appeal,  the  Board shall conduct a de novo review of the
31    matter.
32        (b)  In rendering its decision, the Board shall  consider
33    the  facts  and  whether  the  approving  authority correctly
 
                            -7-      LRB093 10665 RCE 11004 b
 1    applied the standards  set  forth  in  Section  25.   In  any
 2    proceeding  before  the  Board, the approving authority bears
 3    the burden of demonstrating that  it  correctly  applied  the
 4    standards set forth in Section 25 in denying or conditionally
 5    approving   the   application   for   an  affordable  housing
 6    development.
 7        (c)  The  Board  may  affirm,  reverse,  or  modify   the
 8    conditions  of,  or add conditions to, a decision made by the
 9    approving authority. The decision of the Board constitutes an
10    order directed to the approving authority and is  binding  on
11    the local government, which shall forthwith issue any and all
12    necessary   permits   and   approvals   consistent  with  the
13    determination of the Board.
14        (d)  The appellate court has the  exclusive  jurisdiction
15    to review decisions of the Board.

16        Section  35.  Enforcement.  The order of the Board may be
17    enforced by the Board  or  by  the  applicant  in  an  action
18    brought in the circuit court.

19        Section  40.  Nonresidential  development  as  part of an
20    affordable housing development.
21        (a)  An applicant for development of property  that  will
22    be   principally   devoted   to   nonresidential  uses  in  a
23    nonresidential  zoning  district  has  the   status   of   an
24    affordable  housing  developer  for  the purposes of this Act
25    when the applicant proposes that no less than 20% of the area
26    of the development or  20%  of  the  square  footage  of  the
27    development be devoted to affordable housing, except that the
28    applicant bears the burden of proof of demonstrating that the
29    purposes  of  a  nonresidential  zoning  district will not be
30    impaired by  the  construction  of  housing  in  that  zoning
31    district  and  that  the  health,  safety, and welfare of the
32    residents of the affordable housing  will  not  be  adversely
 
                            -8-      LRB093 10665 RCE 11004 b
 1    affected  by  nonresidential  uses  either  in  existence  or
 2    permitted in that zoning district.
 3        (b)  For  purposes  of subsection (a), the square footage
 4    of the  residential  portion  of  the  development  shall  be
 5    measured  by  the  interior  floor  area  of  dwelling units,
 6    excluding that portion that is unheated.  Square  footage  of
 7    the  nonresidential  portion shall be calculated according to
 8    the gross leasable area.

 9        Section 45.  Overconcentration of affordable housing.  In
10    order  to  prevent  the  drastic  alteration of a community's
11    character through the exercise of the rights  conferred  upon
12    affordable  housing  developers by this Act, the requirements
13    to  approve  affordable  housing  developments  by  a   local
14    government as specified in this Act cease when:
15             (1)  the  local government fulfills the requirements
16        to become an exempt local government; or
17             (2)  the  number  of  units  of  affordable  housing
18        approved and built pursuant to  this  Act  exceeds  5,000
19        dwelling units over a period of 5 years.

20        Section 50.  Housing Appeals Board.
21        (a)  A  Housing  Appeals Board is created consisting of 7
22    members appointed by the Governor as follows:
23             (1)  a circuit judge, who shall act as chairperson;
24             (2)  a local zoning board member;
25             (3)  a regional planning board member;
26             (4)  a city council member;
27             (5)  a county board member;
28             (6)  an affordable housing developer; and
29             (7)  an affordable housing advocate.
30        In  addition,  the  Chairman  of  the  Illinois   Housing
31    Development   Authority,   ex   officio,  shall  serve  as  a
32    non-voting member.
 
                            -9-      LRB093 10665 RCE 11004 b
 1        (b)  Initial  terms  of  4  members  designated  by   the
 2    Governor  shall  be  for  2 years. Initial terms of 3 members
 3    designated by the Governor shall be for one year. Thereafter,
 4    members shall be appointed for terms of  2  years.  A  member
 5    shall  receive  no  compensation for his or her services, but
 6    shall be reimbursed by the State for all reasonable  expenses
 7    actually  and  necessarily incurred in the performance of his
 8    or her official duties. The board shall  hear  all  petitions
 9    for  review  filed  under  this  Act  and  shall  conduct all
10    hearings  in  accordance  with  the  rules  and   regulations
11    established   by   the   chairperson.  The  Illinois  Housing
12    Development Authority shall provide space  and  clerical  and
13    other assistance that the Board may require.