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09500HB2426ham001 |
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LRB095 00974 HLH 48948 a |
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| basis,
maximum gross rent figures, as published by the |
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| Authority, that are: (i)
based
on data published annually by |
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| the U.S. Department of Housing and Urban
Development, (ii) |
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| based on the annual income of households earning 60% of the
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| area median income, (iii) computed using a 30% of gross monthly
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| income
standard and (iv) adjusted for unit size and at least |
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| 25% of the units are
occupied by persons and families whose |
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| incomes do not exceed 60% of the median
family income for the |
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| geographic area in which the residential unit is located
or |
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| (ii) a unit for sale to homebuyers whose gross household income |
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| is at or
below 60% of the area median income and who pay no more |
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| than 30% of their gross
household income for mortgage |
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| principal, interest, property taxes, and
property insurance |
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| (PITI).
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| "Donation" means money, securities, or real or personal |
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| property that is
donated to a not-for-profit sponsor that is |
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| used solely for costs associated
with either (i) purchasing, |
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| constructing, or rehabilitating an affordable
housing project |
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| in this State, (ii) an employer-assisted housing project in
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| this State, (iii) general operating support, or (iv) technical |
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| assistance as
defined by this Section.
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| "Employer-assisted housing project" means either |
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| down-payment assistance,
reduced-interest mortgages, mortgage |
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| guarantee programs, rental subsidies, or
individual |
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| development account savings plans that are provided by |
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| employers to
employees to assist in securing affordable housing |
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09500HB2426ham001 |
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LRB095 00974 HLH 48948 a |
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| near the work place, that
are restricted to housing near the |
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| work place, and that are restricted to
employees whose gross |
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| household income is at or below 120% of the area median
income.
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| "General operating support" means any cost incurred by a |
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| sponsor that is a
part of its general program costs and is not |
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| limited to costs directly incurred
by the affordable housing |
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| project.
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| "Geographical area" means the metropolitan area or county |
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| designated as an
area by the federal Department of Housing and |
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| Urban Development under Section 8
of the United States Housing |
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| Act of 1937, as amended, for purposes of
determining fair |
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| market rental rates.
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| "Median income" means the incomes that are determined by |
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| the federal
Department of Housing and Urban Development |
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| guidelines and adjusted for family
size.
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| "Project" means an affordable housing project, an |
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| employer-assisted housing
project, general operating support, |
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| or technical assistance.
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| "Sponsor" means a not-for-profit organization that (i) is |
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| organized as a
not-for-profit organization under the laws of |
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| this State or another
state and (1) for an affordable housing |
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| project, has as one of its purposes the
development of |
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| affordable housing; (2) for an employer-assisted housing
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| project, has as one of its purposes home ownership education; |
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| and (3) for a
technical assistance project, has as one of
its |
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| purposes either the development of affordable housing or home |
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09500HB2426ham001 |
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LRB095 00974 HLH 48948 a |
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| ownership
education; (ii) is organized
for the purpose of |
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| constructing or rehabilitating affordable housing units and
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| has
been issued a ruling from the Internal Revenue Service of |
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| the United States
Department of the Treasury that the |
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| organization is exempt from income taxation
under provisions of |
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| the Internal Revenue Code; or (iii) is an organization
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| designated as a community development corporation by the United |
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| States
government under Title VII of the Economic Opportunity |
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| Act of 1964.
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| "Tax credit" means a tax credit allowed under Section 214 |
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| of the Illinois
Income Tax Act.
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| "Technical assistance" means any cost incurred by a sponsor |
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| for project
planning, assistance with applying for financing, |
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| or counseling services
provided to prospective homebuyers.
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| (b) A sponsor must apply to an administrative housing |
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| agency for approval of the project. The
administrative housing
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| agency must reserve a specific amount of tax credits for each |
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| approved project.
Tax credits for general operating support can |
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| only be reserved as part of a
reservation of tax credits for an |
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| affordable housing project, an
employer-assisted housing |
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| project, or technical assistance. No tax credits
shall be |
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| allowed for a project without a reservation of such tax credits |
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| by an
administrative housing agency for that project.
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| (c) The Authority must adopt rules
establishing
criteria |
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| for eligible costs and donations, issuing and verifying tax |
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| credits,
and selecting projects that are eligible for a tax
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09500HB2426ham001 |
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LRB095 00974 HLH 48948 a |
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| credit.
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| (d) Tax credits for employer-assisted housing projects are |
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| limited to
that pool of
tax credits that have been set aside |
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| for employer-assisted housing. Tax
credits for general |
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| operating support are limited to 10% of the total tax
credit |
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| reservation for the related project (other than general |
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| operating
support) and are also limited to that pool of
tax
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| credits that have been set aside for general operating support. |
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| Tax credits
for technical assistance are limited to that pool |
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| of tax credits that have been
set aside for technical |
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| assistance.
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| (e) The amount of tax credits reserved by the |
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| administrative housing agency
for an approved project is |
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| limited to $13 million in the initial year and shall
increase |
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| each year by 5%. The City of Chicago shall receive 24.5% of |
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| total tax
credits authorized for each fiscal year. The
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| Authority shall receive the balance of the tax credits |
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| authorized for each
fiscal year. The tax credits may be used |
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| anywhere in this State.
The tax
credits have the following |
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| set-asides:
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| (1) for employer-assisted housing projects, $2 |
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| million; and
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| (2) for general operating support and technical |
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| assistance, $1 million.
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| The balance of the funds must be used for affordable |
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| housing
projects.
During the first 9 months of a fiscal year, |
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09500HB2426ham001 |
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LRB095 00974 HLH 48948 a |
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| if an administrative housing
agency is unable to reserve the |
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| tax credits set aside for the purposes
described in
subsection |
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| (e), the administrative housing agency may reserve the tax |
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| credits
for any approved projects.
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| (f) The administrative housing agency that reserves tax |
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| credits for an
affordable housing project must cause to be |
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| recorded record
against the land upon which the affordable |
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| housing project is located an
instrument to assure that
the |
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| property maintains its affordable housing compliance for a |
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| minimum of 10
years. The administrative housing agency may |
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| release an instrument prior to the 10-year minimum requirement |
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| so long as the sponsor makes an equal or greater number of |
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| rental units of equal or lesser rent available to all tenants |
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| of the project prior to or simultaneous with the release. The |
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| replacement units made available by the sponsor must be in the |
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| immediate vicinity of the project. The sponsor must record a |
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| new instrument against the replacement units assuring |
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| affordable housing compliance for the remainder of the original |
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| 10-year period. The Authority has flexibility to assure that |
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| the instrument
does
not cause undue hardship on homeowners.
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| (Source: P.A. 92-491, eff. 8-23-01; 93-369, eff. 7-24-03.)".
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