Full Text of HB2426 95th General Assembly
HB2426ham001 95TH GENERAL ASSEMBLY
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Rep. Arthur L. Turner
Filed: 4/10/2008
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09500HB2426ham001 |
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LRB095 00974 HLH 48948 a |
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| AMENDMENT TO HOUSE BILL 2426
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| AMENDMENT NO. ______. Amend House Bill 2426 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Housing Development Act is amended | 5 |
| by changing Section 7.28 as follows:
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| (20 ILCS 3805/7.28)
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| Sec. 7.28. Tax credit for donation to sponsors. The | 8 |
| Authority may administer and adopt rules
for
an affordable | 9 |
| housing tax donation credit program to provide tax credits for
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| donations as set forth in this
Section.
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| (a) In this Section:
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| "Administrative housing agency" means either the Authority | 13 |
| or an agency of the City of Chicago.
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| "Affordable housing project" means either (i) a rental | 15 |
| project in which at
least 25% of the units have rents | 16 |
| (including tenant-paid heat) that do not
exceed, on a monthly |
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| basis,
maximum gross rent figures, as published by the | 2 |
| Authority, that are: (i)
based
on data published annually by | 3 |
| the U.S. Department of Housing and Urban
Development, (ii) | 4 |
| 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 | 7 |
| 25% of the units are
occupied by persons and families whose | 8 |
| incomes do not exceed 60% of the median
family income for the | 9 |
| geographic area in which the residential unit is located
or | 10 |
| (ii) a unit for sale to homebuyers whose gross household income | 11 |
| is at or
below 60% of the area median income and who pay no more | 12 |
| than 30% of their gross
household income for mortgage | 13 |
| principal, interest, property taxes, and
property insurance | 14 |
| (PITI).
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| "Donation" means money, securities, or real or personal | 16 |
| property that is
donated to a not-for-profit sponsor that is | 17 |
| used solely for costs associated
with either (i) purchasing, | 18 |
| constructing, or rehabilitating an affordable
housing project | 19 |
| in this State, (ii) an employer-assisted housing project in
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| this State, (iii) general operating support, or (iv) technical | 21 |
| assistance as
defined by this Section.
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| "Employer-assisted housing project" means either | 23 |
| down-payment assistance,
reduced-interest mortgages, mortgage | 24 |
| guarantee programs, rental subsidies, or
individual | 25 |
| development account savings plans that are provided by | 26 |
| employers to
employees to assist in securing affordable housing |
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| near the work place, that
are restricted to housing near the | 2 |
| work place, and that are restricted to
employees whose gross | 3 |
| 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 | 5 |
| sponsor that is a
part of its general program costs and is not | 6 |
| limited to costs directly incurred
by the affordable housing | 7 |
| project.
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| "Geographical area" means the metropolitan area or county | 9 |
| designated as an
area by the federal Department of Housing and | 10 |
| Urban Development under Section 8
of the United States Housing | 11 |
| Act of 1937, as amended, for purposes of
determining fair | 12 |
| market rental rates.
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| "Median income" means the incomes that are determined by | 14 |
| the federal
Department of Housing and Urban Development | 15 |
| guidelines and adjusted for family
size.
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| "Project" means an affordable housing project, an | 17 |
| employer-assisted housing
project, general operating support, | 18 |
| or technical assistance.
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| "Sponsor" means a not-for-profit organization that (i) is | 20 |
| organized as a
not-for-profit organization under the laws of | 21 |
| this State or another
state and (1) for an affordable housing | 22 |
| project, has as one of its purposes the
development of | 23 |
| affordable housing; (2) for an employer-assisted housing
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| project, has as one of its purposes home ownership education; | 25 |
| and (3) for a
technical assistance project, has as one of
its | 26 |
| purposes either the development of affordable housing or home |
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| ownership
education; (ii) is organized
for the purpose of | 2 |
| constructing or rehabilitating affordable housing units and
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| has
been issued a ruling from the Internal Revenue Service of | 4 |
| the United States
Department of the Treasury that the | 5 |
| organization is exempt from income taxation
under provisions of | 6 |
| the Internal Revenue Code; or (iii) is an organization
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| designated as a community development corporation by the United | 8 |
| States
government under Title VII of the Economic Opportunity | 9 |
| Act of 1964.
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| "Tax credit" means a tax credit allowed under Section 214 | 11 |
| of the Illinois
Income Tax Act.
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| "Technical assistance" means any cost incurred by a sponsor | 13 |
| for project
planning, assistance with applying for financing, | 14 |
| or counseling services
provided to prospective homebuyers.
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| (b) A sponsor must apply to an administrative housing | 16 |
| agency for approval of the project. The
administrative housing
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| agency must reserve a specific amount of tax credits for each | 18 |
| approved project.
Tax credits for general operating support can | 19 |
| only be reserved as part of a
reservation of tax credits for an | 20 |
| affordable housing project, an
employer-assisted housing | 21 |
| project, or technical assistance. No tax credits
shall be | 22 |
| allowed for a project without a reservation of such tax credits | 23 |
| by an
administrative housing agency for that project.
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| (c) The Authority must adopt rules
establishing
criteria | 25 |
| for eligible costs and donations, issuing and verifying tax | 26 |
| credits,
and selecting projects that are eligible for a tax
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| credit.
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| (d) Tax credits for employer-assisted housing projects are | 3 |
| limited to
that pool of
tax credits that have been set aside | 4 |
| for employer-assisted housing. Tax
credits for general | 5 |
| operating support are limited to 10% of the total tax
credit | 6 |
| reservation for the related project (other than general | 7 |
| 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. | 9 |
| Tax credits
for technical assistance are limited to that pool | 10 |
| of tax credits that have been
set aside for technical | 11 |
| assistance.
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| (e) The amount of tax credits reserved by the | 13 |
| administrative housing agency
for an approved project is | 14 |
| limited to $13 million in the initial year and shall
increase | 15 |
| each year by 5%. The City of Chicago shall receive 24.5% of | 16 |
| total tax
credits authorized for each fiscal year. The
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| Authority shall receive the balance of the tax credits | 18 |
| authorized for each
fiscal year. The tax credits may be used | 19 |
| anywhere in this State.
The tax
credits have the following | 20 |
| set-asides:
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| (1) for employer-assisted housing projects, $2 | 22 |
| million; and
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| (2) for general operating support and technical | 24 |
| assistance, $1 million.
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| The balance of the funds must be used for affordable | 26 |
| housing
projects.
During the first 9 months of a fiscal year, |
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| if an administrative housing
agency is unable to reserve the | 2 |
| tax credits set aside for the purposes
described in
subsection | 3 |
| (e), the administrative housing agency may reserve the tax | 4 |
| credits
for any approved projects.
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| (f) The administrative housing agency that reserves tax | 6 |
| credits for an
affordable housing project must cause to be | 7 |
| recorded record
against the land upon which the affordable | 8 |
| housing project is located an
instrument to assure that
the | 9 |
| property maintains its affordable housing compliance for a | 10 |
| minimum of 10
years. The administrative housing agency may | 11 |
| release an instrument prior to the 10-year minimum requirement | 12 |
| so long as the sponsor makes an equal or greater number of | 13 |
| rental units of equal or lesser rent available to all tenants | 14 |
| of the project prior to or simultaneous with the release. The | 15 |
| replacement units made available by the sponsor must be in the | 16 |
| immediate vicinity of the project. The sponsor must record a | 17 |
| new instrument against the replacement units assuring | 18 |
| affordable housing compliance for the remainder of the original | 19 |
| 10-year period. The Authority has flexibility to assure that | 20 |
| 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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