Full Text of HB2621 102nd General Assembly
HB2621sam002 102ND GENERAL ASSEMBLY | Sen. Mattie Hunter Filed: 5/26/2021
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| 1 | | AMENDMENT TO HOUSE BILL 2621
| 2 | | AMENDMENT NO. ______. Amend House Bill 2621 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "ARTICLE 1. COVID-19 AFFORDABLE HOUSING GRANT PROGRAM ACT | 5 | | Section 1-1. Short title. This Act may be cited as the | 6 | | COVID-19 Affordable Housing Grant Program Act. | 7 | | Section 1-5. Purpose and findings. The State of Illinois | 8 | | faces a large shortage of decent, affordable rental housing | 9 | | for low-income and moderate-income households. The COVID-19 | 10 | | pandemic has dramatically increased this need for affordable | 11 | | housing. The development of affordable housing will help | 12 | | Illinois to address the need for more housing, jobs, tax base, | 13 | | tax revenue, and population in the State. These funds will | 14 | | help developers to overcome increased construction costs | 15 | | related to pandemic-created supply shortages (in lumber and |
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| 1 | | other materials) and to jump-start a housing recovery in | 2 | | Illinois in the wake of the pandemic. These funds will also | 3 | | incentivize and attract private equity and private lending and | 4 | | will allow the State to more fully utilize and draw down unused | 5 | | federal resources for affordable housing. Funding will be used | 6 | | for the acquisition, construction, development, | 7 | | predevelopment, or rehabilitation of affordable multifamily | 8 | | rental development. | 9 | | Section 1-10. Definitions. As used in this Act: | 10 | | "Authority" means the Illinois Housing Development | 11 | | Authority. | 12 | | "Disproportionately impacted area" means a census tract or | 13 | | comparable geographic area that meets at least one of the | 14 | | following criteria, as determined by the Department of | 15 | | Commerce and Economic Opportunity: | 16 | | (1) the area has a poverty rate of at least 20% | 17 | | according to the latest federal decennial census; | 18 | | (2) 75% or more of the children in the area | 19 | | participate in the federal free lunch program according to | 20 | | reported statistics from the State Board of Education; | 21 | | (3) at least 20% of the households in the area receive | 22 | | assistance under the Supplemental Nutrition Assistance | 23 | | Program; or | 24 | | (4) the area has an average unemployment rate, as | 25 | | determined by the Department of Employment Security, that |
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| 1 | | is more than 120% of the national unemployment average, as | 2 | | determined by the United States Department of Labor, for a | 3 | | period of at least 2 consecutive calendar years preceding | 4 | | the date of the application. | 5 | | "Federal tax credit" means the federal low-income housing | 6 | | tax credit provided by Section 42 of the federal Internal | 7 | | Revenue Code, including federal low-income housing tax credits | 8 | | issued pursuant to 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4). | 9 | | "Qualified development" means a qualified low-income | 10 | | housing project, as that term is defined in Section 42 of the | 11 | | federal Internal Revenue Code of 1986, that is located in the | 12 | | State and is determined to be eligible for the federal tax | 13 | | credit set forth in Section 42 of the Internal Revenue Code. | 14 | | Section 1-15. Grant program. Subject to appropriation for | 15 | | this purpose, the Authority shall establish an affordable | 16 | | housing grant program to encourage the construction and | 17 | | rehabilitation of affordable multifamily rental housing in | 18 | | response to the COVID-19 pandemic. Funding may be used for the | 19 | | acquisition, construction, development, predevelopment, or | 20 | | rehabilitation of a qualified development. The goal of the | 21 | | grant program shall be to fund the development and | 22 | | preservation of up to 3,500 affordable rental homes and | 23 | | apartments by December 31, 2024. Project sponsors who wish to | 24 | | participate in the affordable housing grant program shall | 25 | | submit a grant application to the Authority in accordance with |
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| 1 | | rules adopted by the Authority. The Authority shall prescribe, | 2 | | by rule, standards and procedures for the provision of | 3 | | demonstration grant funds in relation to each grant | 4 | | application. | 5 | | Section 1-20. Affordable multifamily rental housing gap | 6 | | financing. Where a qualified development has been awarded a | 7 | | federal tax credit, the recipient may request additional gap | 8 | | financing under this grant program as the Authority deems | 9 | | appropriate. Through the program, the Authority shall provide | 10 | | grants with no expectation of repayment. | 11 | | Section 1-25. Prioritization efforts. | 12 | | (a) The Authority shall make best efforts to prioritize | 13 | | grant applications for proposed developments as follows: | 14 | | (1) developments that are located within an area that | 15 | | was disproportionately affected by the COVID-19 pandemic | 16 | | based on the number of positive COVID-19 cases; | 17 | | (2) developments involving contracts with certified | 18 | | disadvantaged business enterprises and certified | 19 | | underrepresented business enterprises owned by minorities, | 20 | | women, veterans, LGBT persons, and persons with | 21 | | disabilities during construction; | 22 | | (3) developments involving project labor agreements | 23 | | with local organized labor; and | 24 | | (4) developments involving contracts or subcontracts |
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| 1 | | with a registered apprenticeship program or | 2 | | preapprenticeship program. | 3 | | (b) The Authority shall balance the approval of projects | 4 | | between those located within a disproportionately impacted | 5 | | area as defined under this Act and those located in areas of | 6 | | opportunity, as defined or recognized by the Authority. | 7 | | Section 1-30. Annual reporting to the General Assembly. | 8 | | (a) The Authority shall submit an annual report to the | 9 | | General Assembly no later than March 31 of each calendar year | 10 | | with the first annual report due no later than March 31, 2022. | 11 | | (b) The annual report must describe the grant program's | 12 | | administration and the number and type of projects funded as | 13 | | of the date of the report with the following information: | 14 | | (1) location of projects and demographics of the | 15 | | surrounding community; | 16 | | (2) accessibility of projects to public | 17 | | transportation, schools, health care, grocery stores, and | 18 | | banking institutions; | 19 | | (3) total number of residential units developed or | 20 | | rehabbed per project; | 21 | | (4) total number of affordable units developed or | 22 | | rehabbed per project; | 23 | | (5) total number of affordable units put into service; | 24 | | (6) number of program applications; | 25 | | (7) number of applications awarded; |
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| 1 | | (8) amount of funding awarded through the program per | 2 | | calendar year; | 3 | | (9) amount of funding awarded through the grant | 4 | | program to date; | 5 | | (10) specific data for each prioritization category | 6 | | listed under Section 1-25; | 7 | | (11) delays or issues with development including, but | 8 | | not limited to, acquisition, zoning and permits, labor, | 9 | | and materials; and | 10 | | (12) any compliance issues with grant recipients and | 11 | | the corrective action taken. | 12 | | Section 1-35. Repeal. This Act is repealed on April 1, | 13 | | 2025. | 14 | | ARTICLE 5. AMENDATORY PROVISIONS | 15 | | Section 5-5. The Illinois Housing Development Act is | 16 | | amended by changing Section 7.28 as follows:
| 17 | | (20 ILCS 3805/7.28)
| 18 | | Sec. 7.28. Tax credit for donation to sponsors. The | 19 | | Authority may administer and adopt rules
for
an affordable | 20 | | housing tax donation credit program to provide tax credits for
| 21 | | donations as set forth in this
Section.
| 22 | | (a) In this Section:
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| 1 | | "Administrative housing agency" means either the Authority | 2 | | or an agency of the City of Chicago.
| 3 | | "Affordable housing project" means either : | 4 | | (1) (i) a rental project in which at
least 25% of the | 5 | | units have rents (including tenant-paid heat) that do not
| 6 | | exceed, on a monthly basis,
maximum gross rent figures, as | 7 | | published by the Authority, that are: | 8 | | (i)
based
on data published annually by the U.S. | 9 | | Department of Housing and Urban
Development ; , | 10 | | (ii) based on the annual income of households | 11 | | earning 60% of the
area median income ; , | 12 | | (iii) computed using a 30% of gross monthly
income
| 13 | | standard ; and | 14 | | (iv) adjusted for unit size and at least 25% of the | 15 | | units are
occupied by persons and families whose | 16 | | incomes do not exceed 60% of the median
family income | 17 | | for the geographic area in which the residential unit | 18 | | is located ;
or | 19 | | (2) (ii) a unit for sale to homebuyers whose gross | 20 | | household income is at or
below (A) 60% of the area median | 21 | | income (for taxable years beginning prior to January 1, | 22 | | 2022) or (B) 120% of the area median income (for taxable | 23 | | years beginning on or after January 1, 2022) and who pay no | 24 | | more than 30% of their gross
household income for mortgage | 25 | | principal, interest, property taxes, and
property | 26 | | insurance (PITI).
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| 1 | | "Donation" means money, securities, or real or personal | 2 | | property that is
donated to a not-for-profit sponsor that is | 3 | | used solely for costs associated
with either (i) purchasing, | 4 | | constructing, or rehabilitating an affordable
housing project | 5 | | in this State, (ii) an employer-assisted housing project in
| 6 | | this State, (iii) general operating support, or (iv) technical | 7 | | assistance as
defined by this Section.
| 8 | | "Employer-assisted housing project" means either | 9 | | down-payment assistance,
reduced-interest mortgages, mortgage | 10 | | guarantee programs, rental subsidies, or
individual | 11 | | development account savings plans that are provided by | 12 | | employers to
employees to assist in securing affordable | 13 | | housing near the work place, that
are restricted to housing | 14 | | near the work place, and that are restricted to
employees | 15 | | whose gross household income is at or below 120% of the area | 16 | | median
income.
| 17 | | "General operating support" means any cost incurred by a | 18 | | sponsor that is a
part of its general program costs and is not | 19 | | limited to costs directly incurred
by the affordable housing | 20 | | project.
| 21 | | "Geographical area" means the metropolitan area or county | 22 | | designated as an
area by the federal Department of Housing and | 23 | | Urban Development under Section 8
of the United States Housing | 24 | | Act of 1937, as amended, for purposes of
determining fair | 25 | | market rental rates.
| 26 | | "Median income" means the incomes that are determined by |
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| 1 | | the federal
Department of Housing and Urban Development | 2 | | guidelines and adjusted for family
size.
| 3 | | "Project" means an affordable housing project, an | 4 | | employer-assisted housing
project, general operating support, | 5 | | or technical assistance.
| 6 | | "Sponsor" means a not-for-profit organization that (i) is | 7 | | organized as a
not-for-profit organization under the laws of | 8 | | this State or another
state and (1) for an affordable housing | 9 | | project, has as one of its purposes the
development of | 10 | | affordable housing; (2) for an employer-assisted housing
| 11 | | project, has as one of its purposes home ownership education; | 12 | | and (3) for a
technical assistance project, has as one of
its | 13 | | purposes either the development of affordable housing or home | 14 | | ownership
education; (ii) is organized
for the purpose of | 15 | | constructing or rehabilitating affordable housing units and
| 16 | | has
been issued a ruling from the Internal Revenue Service of | 17 | | the United States
Department of the Treasury that the | 18 | | organization is exempt from income taxation
under provisions | 19 | | of the Internal Revenue Code; or (iii) is an organization
| 20 | | designated as a community development corporation by the | 21 | | United States
government under Title VII of the Economic | 22 | | Opportunity Act of 1964.
| 23 | | "Tax credit" means a tax credit allowed under Section 214 | 24 | | of the Illinois
Income Tax Act.
| 25 | | "Technical assistance" means any cost incurred by a | 26 | | sponsor for project
planning, assistance with applying for |
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| 1 | | financing, or counseling services
provided to prospective | 2 | | homebuyers.
| 3 | | (b) A sponsor must apply to an administrative housing | 4 | | agency for approval of the project. The
administrative housing
| 5 | | agency must reserve a specific amount of tax credits for each | 6 | | approved project.
Tax credits for general operating support | 7 | | can only be reserved as part of a
reservation of tax credits | 8 | | for an affordable housing project, an
employer-assisted | 9 | | housing project, or technical assistance. No tax credits
shall | 10 | | be allowed for a project without a reservation of such tax | 11 | | credits by an
administrative housing agency for that project.
| 12 | | (c) The Authority must adopt rules
establishing
criteria | 13 | | for eligible costs and donations, issuing and verifying tax | 14 | | credits,
and selecting projects that are eligible for a tax
| 15 | | credit.
| 16 | | (d) Tax credits for employer-assisted housing projects are | 17 | | limited to
that pool of
tax credits that have been set aside | 18 | | for employer-assisted housing. Tax
credits for general | 19 | | operating support are limited to 10% of the total tax
credit | 20 | | reservation for the related project (other than general | 21 | | operating
support) and are also limited to that pool of
tax
| 22 | | credits that have been set aside for general operating | 23 | | support. Tax credits
for technical assistance are limited to | 24 | | that pool of tax credits that have been
set aside for technical | 25 | | assistance.
| 26 | | (e) The amount of tax credits reserved by the |
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| 1 | | administrative housing agency
for an approved project is | 2 | | limited to $32,850,352 in State fiscal years 2022 and 2023 $13 | 3 | | million in the initial year and shall
increase by 5% each | 4 | | fiscal year thereafter by 5% . The City of Chicago shall | 5 | | receive 24.5% of total tax
credits authorized for each fiscal | 6 | | year. The
Authority shall receive the balance of the tax | 7 | | credits authorized for each
fiscal year. The tax credits may | 8 | | be used anywhere in this State.
The tax
credits have the | 9 | | following set-asides:
| 10 | | (1) for employer-assisted housing projects, $2 | 11 | | million; and
| 12 | | (2) for general operating support and technical | 13 | | assistance, $1 million.
| 14 | | The balance of the funds must be used for affordable | 15 | | housing
projects.
During the first 9 months of a fiscal year, | 16 | | if an administrative housing
agency is unable to reserve the | 17 | | tax credits set aside for the purposes
described in
subsection | 18 | | (e), the administrative housing agency may reserve the tax | 19 | | credits
for any approved projects.
| 20 | | (f) The administrative housing agency that reserves tax | 21 | | credits for an
affordable housing project must record
against | 22 | | the land upon which the affordable housing project is located | 23 | | an
instrument to assure that
the property maintains its | 24 | | affordable housing compliance for a minimum of 10
years. The | 25 | | Authority has flexibility to assure that the instrument
does
| 26 | | not cause undue hardship on homeowners.
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| 1 | | (Source: P.A. 92-491, eff. 8-23-01; 93-369, eff. 7-24-03.)
| 2 | | Section 5-15. The Illinois Income Tax Act is amended by | 3 | | changing Section 214 as follows:
| 4 | | (35 ILCS 5/214)
| 5 | | Sec. 214. Tax credit for affordable housing donations.
| 6 | | (a) Beginning with taxable years ending on or after | 7 | | December 31, 2001 and
until the taxable year ending on | 8 | | December 31, 2026 December 31, 2021 , a taxpayer who makes a
| 9 | | donation under Section 7.28 of the Illinois Housing | 10 | | Development Act is entitled to a credit
against the tax | 11 | | imposed by subsections (a) and (b) of Section 201 in an amount
| 12 | | equal
to 50% of the value of the donation. Partners, | 13 | | shareholders of subchapter S
corporations, and owners of | 14 | | limited liability companies (if the limited
liability company | 15 | | is treated as a partnership for purposes of federal and State
| 16 | | income
taxation) are entitled to a credit under this Section | 17 | | to be determined in
accordance with the determination of | 18 | | income and distributive share of income
under Sections 702 and | 19 | | 703 and subchapter S of the Internal Revenue Code.
Persons or | 20 | | entities not subject to the tax imposed by subsections (a) and | 21 | | (b)
of Section 201 and who make a donation under Section 7.28 | 22 | | of the Illinois
Housing Development Act are entitled to a | 23 | | credit as described in this
subsection and may transfer that | 24 | | credit as described in subsection (c).
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| 1 | | (b) If the amount of the credit exceeds the tax liability | 2 | | for the year, the
excess may be carried forward and applied to | 3 | | the tax liability of the 5 taxable
years following the excess | 4 | | credit year. The tax credit shall be applied to the
earliest | 5 | | year for which there is a tax liability. If there are credits | 6 | | for
more than one year that are available to offset a | 7 | | liability, the earlier credit
shall be applied first.
| 8 | | (c) The transfer of the tax credit allowed under this | 9 | | Section may be made
(i) to the purchaser of land that has been | 10 | | designated solely for affordable
housing projects in | 11 | | accordance with the Illinois Housing Development Act or
(ii) | 12 | | to another donor who has also made a donation in accordance | 13 | | with Section 7.28 of the
Illinois Housing
Development Act.
| 14 | | (d) A taxpayer claiming the credit provided by this | 15 | | Section must maintain
and record any information that the | 16 | | Department may require by regulation
regarding the project for | 17 | | which the credit is claimed.
When
claiming the credit provided | 18 | | by this Section, the taxpayer must provide
information | 19 | | regarding the taxpayer's donation to the project under the | 20 | | Illinois Housing Development Act.
| 21 | | (Source: P.A. 99-915, eff. 12-20-16.)
| 22 | | Section 5-20. The Property Tax Code is amended by changing | 23 | | Section 10-260 and by adding Section 15-178 as follows:
| 24 | | (35 ILCS 200/10-260)
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| 1 | | Sec. 10-260. Low-income housing. In determining the fair
| 2 | | cash value of property receiving benefits from the Low-Income | 3 | | Housing Tax
Credit authorized by Section 42 of the Internal | 4 | | Revenue Code, 26 U.S.C. 42,
emphasis shall be given to the | 5 | | income approach , except in those circumstances
where another | 6 | | method is clearly more appropriate .
| 7 | | In counties with more than 3,000,000 inhabitants, during a | 8 | | general reassessment year in accordance with Section 9-220 or | 9 | | at such other time that a property is reassessed, to determine | 10 | | the fair cash value of any low-income housing project that | 11 | | qualifies for the Low-Income Housing Tax Credit under Section | 12 | | 42 of the Internal Revenue Code: (i) in assessing any building | 13 | | with 7 or more units, the assessment officer must consider the | 14 | | actual or projected net operating income attributable to the | 15 | | property, capitalized at rates for similarly encumbered | 16 | | Section 42 properties; and (ii) in assessing any building with | 17 | | 6 units or less, the assessment officer, prior to finalizing | 18 | | and certifying assessments to the Board of Review, shall | 19 | | reassess the building considering the actual or projected net | 20 | | operating income attributable to the property, capitalized at | 21 | | rates for similarly encumbered Section 42 properties. The | 22 | | capitalization rate for items (i) and (ii) shall be one that | 23 | | reflects the prevailing cost of capital for other types of | 24 | | similarly encumbered Section 42 properties in the geographic | 25 | | market in which the low-income housing project is located. | 26 | | All low-income housing projects that seek to be assessed |
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| 1 | | in accordance with the provisions of this Section shall | 2 | | certify to the appropriate local assessment officer that the | 3 | | owner or owners qualify for the Low-Income Housing Tax Credit | 4 | | under Section 42 of the Internal Revenue Code for the | 5 | | property, in a form prescribed by that assessment officer. | 6 | | (Source: P.A. 91-502, eff. 8-13-99; 92-16, eff. 6-28-01.)
| 7 | | (35 ILCS 200/15-178 new) | 8 | | Sec. 15-178. Reduction in assessed value for affordable | 9 | | rental housing construction or rehabilitation. | 10 | | (a) The General Assembly finds that there is a shortage of | 11 | | high quality affordable rental homes for low-income and | 12 | | very-low-income households throughout Illinois; that owners | 13 | | and developers of rental housing face significant challenges | 14 | | building newly constructed apartments or undertaking | 15 | | rehabilitation of existing properties that results in rents | 16 | | that are affordable for low-income and very-low-income | 17 | | households; and that it will help Cook County and other parts | 18 | | of Illinois address the extreme shortage of affordable rental | 19 | | housing by developing a Statewide policy to determine the | 20 | | assessed value for newly constructed and rehabilitated | 21 | | affordable rental housing that both encourages investment and | 22 | | incentivizes property owners to keep rents affordable. | 23 | | (b) Each chief county assessment officer shall implement | 24 | | special assessment programs to reduce the assessed value of | 25 | | all eligible newly constructed residential real property or |
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| 1 | | qualifying rehabilitation to all eligible existing residential | 2 | | real property in accordance with subsection (c) for 10 taxable | 3 | | years after the newly constructed residential real property or | 4 | | improvements to existing residential real property are put in | 5 | | service. Any county with less than 3,000,000 inhabitants may | 6 | | decide not to implement one or both of the special assessment | 7 | | programs defined in in subparagraph (1) of subsection (c) of | 8 | | this Section and subparagraph (2) of subsection (c) of this | 9 | | Section upon passage of an ordinance by a majority vote of the | 10 | | county board. Subsequent to a vote to opt out of this special | 11 | | assessment program, any county with less than 3,000,000 | 12 | | inhabitants may decide to implement one or both of the special | 13 | | assessment programs defined in in subparagraph (1) of | 14 | | subsection (c) of this Section and subparagraph (2) of | 15 | | subsection (c) of this Section upon passage of an ordinance by | 16 | | a majority vote of the county board. Property is eligible for | 17 | | the special assessment program if and only if all of the | 18 | | following factors have been met: | 19 | | (1) at the conclusion of the new construction or
| 20 | | qualifying rehabilitation, the property consists of a | 21 | | newly constructed multifamily building containing 7 or | 22 | | more rental dwelling units or an existing multifamily | 23 | | building that has undergone qualifying rehabilitation | 24 | | resulting in 7 or more rental dwelling units; and | 25 | | (2) the property meets the application requirements | 26 | | defined in subsection (f). |
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| 1 | | (c) For those counties that are required to implement the | 2 | | special assessment program and do not opt out of such special | 3 | | assessment program, the chief county assessment officer for | 4 | | that county shall require that residential real property is | 5 | | eligible for the special assessment program if and only if one | 6 | | of the additional factors have been met: | 7 | | (1) except as defined in subparagraphs (E), (F), and
| 8 | | (G) of paragraph (5) of subsection (f) of this Section,
| 9 | | prior to the newly constructed residential real property
| 10 | | or improvements to existing residential real property
| 11 | | being put in service, the owner of the residential real | 12 | | property commits that, for a period of 10 years, at least
| 13 | | 15% of the multifamily building's units will have rents as
| 14 | | defined in this Section that are at or below maximum rents
| 15 | | and are occupied by households with household incomes at | 16 | | or below maximum income limits; or | 17 | | (2) except as defined in subparagraphs (E), (F), and
| 18 | | (G) of paragraph (5) of subsection (f) of this Section,
| 19 | | prior to the newly constructed residential real property | 20 | | located in a low affordability community being
put in | 21 | | service, the owner of the residential real property
| 22 | | commits that, for a period of 30 years after the newly
| 23 | | constructed residential real property or improvements to
| 24 | | existing residential real property are put in service, at
| 25 | | least 20% of the multifamily building's units will have
| 26 | | rents as defined in this Section that are at or below
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| 1 | | maximum rents and are occupied by households with | 2 | | household incomes at or below maximum income limits. | 3 | | If a reduction in assessed value is granted under one | 4 | | special assessment program provided for in this Section, then | 5 | | that same residential real property is not eligible for an | 6 | | additional special assessment program under this Section at | 7 | | the same time. | 8 | | (d) The amount of the reduction in assessed value for | 9 | | residential real property meeting the conditions set forth in | 10 | | subparagraph (1) of subsection (c) shall be calculated as | 11 | | follows: | 12 | | (1) if the owner of the residential real property | 13 | | commits for a period of at least 10 years that at least 15% | 14 | | but fewer than 35% of the multifamily building's units | 15 | | have rents at or below maximum rents and are occupied by | 16 | | households with household incomes at or below maximum | 17 | | income limits, the assessed value of the property used to | 18 | | calculate the tax bill shall be reduced by an amount equal | 19 | | to 25% of the assessed value of the property as determined | 20 | | by the assessor for the property in the current taxable | 21 | | year for the newly constructed residential real property | 22 | | or based on the improvements to an existing residential | 23 | | real property; and | 24 | | (2) if the owner of the residential real property | 25 | | commits for a period of at least 10 years that at least 35% | 26 | | of the multifamily building's units have rents at or below |
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| 1 | | maximum rents and are occupied by households with | 2 | | household incomes at or below maximum income limits, the | 3 | | assessed value of the property used to calculate the tax | 4 | | bill shall be reduced by an amount equal to 35% of the | 5 | | assessed value of the property as determined by the | 6 | | assessor for the property in the current assessment year | 7 | | for the newly constructed residential real property or | 8 | | based on the improvements to an existing residential real | 9 | | property. | 10 | | (e) The amount of the reduction for residential real | 11 | | property meeting the conditions set forth in subparagraph (2) | 12 | | of subsection (c) shall be calculated as follows: | 13 | | (1) for the first, second, and third taxable year | 14 | | after the residential real property is placed in service, | 15 | | the residential real property is entitled to a reduction | 16 | | in its assessed value in an amount equal to the difference | 17 | | between the assessed value in the year for which the | 18 | | incentive is sought and the assessed value for the | 19 | | residential real property in the base year; | 20 | | (2) for the fourth, fifth, and sixth taxable year | 21 | | after the residential real property is placed in service, | 22 | | the property is entitled to a reduction in its assessed | 23 | | value in an amount equal to 80% of the difference between | 24 | | the assessed value in the year for which the incentive is | 25 | | sought and the assessed value for the residential real | 26 | | property in the base year; |
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| 1 | | (3) for the seventh, eighth, and ninth taxable year | 2 | | after the property is placed in service, the residential | 3 | | real property is entitled to a reduction in its assessed | 4 | | value in an amount equal to 60% 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 | | (4) for the tenth, eleventh, and twelfth taxable year | 9 | | after the residential real property is placed in service, | 10 | | the residential real property is entitled to a reduction | 11 | | in its assessed value in an amount equal to 40% of the | 12 | | difference between the assessed value in the year for | 13 | | which the incentive is sought and the assessed value for | 14 | | the residential real property in the base year; and | 15 | | (5) for the thirteenth through the thirtieth taxable | 16 | | year after the residential real property is placed in | 17 | | service, the residential real property is entitled to a | 18 | | reduction in its assessed value in an amount equal to 20% | 19 | | of the difference between the assessed value in the year | 20 | | for which the incentive is sought and the assessed value | 21 | | for the residential real property in the base year. | 22 | | (f) Application requirements. | 23 | | (1) In order to receive the reduced valuation under | 24 | | this Section, the owner must submit an application | 25 | | containing the following information to the chief county | 26 | | assessment officer for review in the form and by the date |
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| 1 | | required by the chief county assessment officer: | 2 | | (A) the owner's name; | 3 | | (B) the postal address and permanent index number | 4 | | or numbers of the parcel or parcels for which the owner | 5 | | is applying to receive reduced valuation under this | 6 | | Section; | 7 | | (C) a deed or other instrument conveying the | 8 | | parcel or parcels to the current owner; | 9 | | (D) written evidence that the new construction or | 10 | | qualifying rehabilitation has been completed with | 11 | | respect to the residential real property, including, | 12 | | but not limited to, copies of building permits, a | 13 | | notarized contractor's sworn affidavit, and | 14 | | photographs of the interior and exterior of the | 15 | | building after new construction or rehabilitation is | 16 | | completed; | 17 | | (E) written evidence that the residential real | 18 | | property meets local building codes, or if there are | 19 | | no local building codes, Housing Quality Standards, as | 20 | | determined by the United States Department of Housing | 21 | | and Urban Development; | 22 | | (F) a list identifying the affordable units in | 23 | | residential real property and a written statement that | 24 | | the affordable units are comparable to the market rate | 25 | | units in terms of unit type, number of bedrooms per | 26 | | unit, quality of exterior appearance, energy |
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| 1 | | efficiency, and overall quality of construction; | 2 | | (G) a written schedule certifying the rents in | 3 | | each affordable unit and a written statement that | 4 | | these rents do not exceed the maximum rents allowable | 5 | | for the area in which the residential real property is | 6 | | located; | 7 | | (H) documentation from the administering agency | 8 | | verifying the owner's participation in a qualifying | 9 | | income-based rental subsidy program as defined in | 10 | | subsection (e) of this Section if units receiving | 11 | | rental subsidies are to be counted among the | 12 | | affordable units in order to meet the thresholds | 13 | | defined in this Section; | 14 | | (I) a written statement identifying the household | 15 | | income for every household occupying an affordable | 16 | | unit and certifying that the household income does not | 17 | | exceed the maximum income limits allowable for the | 18 | | area in which the residential real property is | 19 | | located; | 20 | | (J) a written statement that the owner has | 21 | | verified and retained documentation of household | 22 | | income for every household occupying an affordable | 23 | | unit; and | 24 | | (K) any additional information consistent with | 25 | | this Section as reasonably required by the chief | 26 | | county assessment officer, including, but not limited |
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| 1 | | to, any information necessary to ensure compliance | 2 | | with applicable local ordinances and to ensure the | 3 | | owner is complying with the provisions of subparagraph | 4 | | (F) of paragraph (4) of subsection (d) of this | 5 | | Section. | 6 | | (1.1) In order for a development to receive the | 7 | | reduced valuation under subsection (e), the owner must | 8 | | provide evidence to the county assessor's office of a | 9 | | fully executed project labor agreement entered into with | 10 | | the applicable local building trades council, prior to | 11 | | commencement of any and all construction, building, | 12 | | renovation, demolition, or any material change to the | 13 | | structure or land. | 14 | | (2) The application requirements contained in | 15 | | paragraph (1) of subsection (f) are continuing | 16 | | requirements for the duration of the reduction in assessed | 17 | | value received and may be annually or periodically | 18 | | verified by the chief county assessment officer for the | 19 | | county whereby the benefit is being issued. | 20 | | (3) In lieu of submitting an application containing | 21 | | the information prescribed in paragraph (1) of subsection | 22 | | (f), the chief county assessment officer may allow for | 23 | | submission of a substantially similar certification | 24 | | granted by the Illinois Housing Development Authority or a | 25 | | comparable local authority provided that the chief county | 26 | | assessment officer independently verifies the veracity of |
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| 1 | | the certification with the Illinois Housing Development | 2 | | Authority or comparable local authority. | 3 | | (4) The chief county assessment officer shall notify | 4 | | the owner as to whether or not the property meets the | 5 | | requirements of this Section. If the property does not | 6 | | meet the requirements of this Section, the chief county | 7 | | assessment officer shall provide written notice of any | 8 | | deficiencies to the owner, who shall then have 30 days | 9 | | from the date of notification to provide supplemental | 10 | | information showing compliance with this Section. The | 11 | | chief county assessment officer shall, in its discretion, | 12 | | grant additional time to cure any deficiency. If the owner | 13 | | does not exercise this right to cure the deficiency, or if | 14 | | the information submitted, in the sole judgment of the | 15 | | chief county assessment officer, is insufficient to meet | 16 | | the requirements of this Section, the chief county | 17 | | assessment officer shall provide a written explanation of | 18 | | the reasons for denial. | 19 | | (5) The chief county assessment officer may charge a | 20 | | reasonable application fee to offset the administrative | 21 | | expenses associated with the program. | 22 | | (6) The reduced valuation conferred by this Section is | 23 | | limited as follows: | 24 | | (A) The owner is eligible to apply for the reduced | 25 | | valuation conferred by this Section beginning in the | 26 | | first assessment year after the effective date of this |
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| 1 | | amendatory Act of the 102nd General Assembly through | 2 | | December 31, 2027. If approved, the reduction will be | 3 | | effective for the current assessment year, which will | 4 | | be reflected in the tax bill issued in the following | 5 | | calendar year. Owners that are approved for the | 6 | | reduced valuation under paragraph (1) of subsection | 7 | | (c) of this Section before December 31, 2027 shall, at | 8 | | minimum, be eligible for annual renewal of the reduced | 9 | | valuation during an initial 10-year period if annual | 10 | | certification requirements are met for each of the 10 | 11 | | years, as described in subparagraph (B) of paragraph | 12 | | (4) of subsection (d) of this Section. | 13 | | (B) Property receiving a reduction outlined in | 14 | | paragraph (1) of subsection (c) of this Section shall | 15 | | continue to be eligible for an initial period of up to | 16 | | 10 years if annual certification requirements are met | 17 | | for each of the 10 years, but shall be extended for up | 18 | | to 2 additional 10-year periods with annual renewals | 19 | | if the owner continues to meet the requirements of | 20 | | this Section, including annual certifications, and | 21 | | excluding the requirements regarding new construction | 22 | | or qualifying rehabilitation defined in subparagraph | 23 | | (D) of paragraph (1) of this subsection. | 24 | | (C) The annual certification materials in the year | 25 | | prior to final year of eligibility for the reduction | 26 | | in assessed value must include a dated copy of the |
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| 1 | | written notice provided to tenants informing them of | 2 | | the date of the termination if the owner is not seeking | 3 | | a renewal. | 4 | | (D) If the property is sold or transferred, the | 5 | | purchaser or transferee must comply with all | 6 | | requirements of this Section, excluding the | 7 | | requirements regarding new construction or qualifying | 8 | | rehabilitation defined in subparagraph (D) of | 9 | | paragraph (1) of this subsection, in order to continue | 10 | | receiving the reduction in assessed value. Purchasers | 11 | | and transferees who comply with all requirements of | 12 | | this Section excluding the requirements regarding new | 13 | | construction or qualifying rehabilitation defined in | 14 | | subparagraph (D) of paragraph (1) of this subsection | 15 | | are eligible to apply for renewal on the schedule set | 16 | | by the initial application. | 17 | | (E) The owner may apply for the reduced valuation | 18 | | if the residential real property meets all | 19 | | requirements of this Section and the newly constructed | 20 | | residential real property or improvements to existing | 21 | | residential real property were put in service on or | 22 | | after January 1, 2015. However, the initial 10-year | 23 | | eligibility period or 30-year eligibility period, | 24 | | depending on the applicable program, shall be reduced | 25 | | by the number of years between the placed in service | 26 | | date and the date the owner first receives this |
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| 1 | | reduced valuation. | 2 | | (F) The owner may apply for the reduced valuation | 3 | | within 2 years after the newly constructed residential | 4 | | real property or improvements to existing residential | 5 | | real property are put in service. However, the initial | 6 | | 10-year eligibility period or 30-year eligibility | 7 | | period, depending on the applicable program, shall be | 8 | | reduced for the number of years between the placed in | 9 | | service date and the date the owner first receives | 10 | | this reduced valuation. | 11 | | (G) Owners of a multifamily building receiving a | 12 | | reduced valuation through the Cook County Class 9 | 13 | | program during the year in which this amendatory Act | 14 | | of the 102nd General Assembly takes effect shall be | 15 | | deemed automatically eligible for the reduced | 16 | | valuation defined in paragraph (1) of subsection (c) | 17 | | of this Section in terms of meeting the criteria for | 18 | | new construction or substantial rehabilitation for a | 19 | | specific multifamily building regardless of when the | 20 | | newly constructed residential real property or | 21 | | improvements to existing residential real property | 22 | | were put in service. If a Cook County Class 9 owner had | 23 | | Class 9 status revoked on or after January 1, 2017 but | 24 | | can provide documents sufficient to prove that the | 25 | | revocation was in error or any deficiencies leading to | 26 | | the revocation have been cured, the chief county |
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| 1 | | assessment officer may deem the owner to be eligible. | 2 | | However, owners may not receive both the reduced | 3 | | valuation under this Section and the reduced valuation | 4 | | under the Cook County Class 9 program in any single | 5 | | assessment year. In addition, the number of years | 6 | | during which an owner has participated in the Class 9 | 7 | | program shall count against the 3 10-year periods of | 8 | | eligibility for the reduced valuation as defined in | 9 | | subparagraph (1) of subsection (c) of this Section. | 10 | | (H) At the completion of the assessment reduction | 11 | | period described in this Section: the entire parcel | 12 | | will be assessed as otherwise provided by law. | 13 | | (e) For the purposes of this Section, | 14 | | "Affordable units" means units that have rents that do not | 15 | | exceed the maximum rents as defined in this Section. | 16 | | "Assessed value for the residential real property in the | 17 | | base year" means the value in effect at the end of the taxable | 18 | | year prior to the latter of: (1) the date of initial | 19 | | application; or (2) the date on which 20% of the total number | 20 | | of units in the property are occupied by eligible tenants | 21 | | paying eligible rent under this Section. | 22 | | "Household income" includes the annual income for all the | 23 | | people who occupy a housing unit that is anticipated to be | 24 | | received from a source outside of the family during the | 25 | | 12-month period following admission or the annual | 26 | | recertification, including related family members and all the |
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| 1 | | unrelated people who share the housing unit. Household income | 2 | | includes the sum total of the following income sources: wages, | 3 | | salaries and tips before any payroll deductions; net business | 4 | | income; interest and dividends; payments in lieu of earnings, | 5 | | such as unemployment and disability compensation, worker's | 6 | | compensation and severance pay; Social Security income, | 7 | | including lump-sum payments; payments from insurance policies, | 8 | | annuities, pensions, disability benefits and other types of | 9 | | periodic payments, alimony, child support, and other regular | 10 | | monetary contributions; and public assistance, except for | 11 | | assistance from the Supplemental Nutrition Assistance Program | 12 | | (SNAP). "Household income" does not include: earnings of | 13 | | children under age 18; temporary income such as cash gifts; | 14 | | reimbursement for medical expenses; lump-sums from | 15 | | inheritance, insurance payments, settlements for personal or | 16 | | property losses; student financial assistance paid directly to | 17 | | the student or to an educational institution; foster child | 18 | | care payments; receipts from government-funded training | 19 | | programs; assistance from the Supplemental Nutrition | 20 | | Assistance Program (SNAP). | 21 | | "Low affordability community" means (1) a municipality or | 22 | | jurisdiction in which 40% or less of its total year-round | 23 | | housing units are affordable, as determined by the Illinois | 24 | | Housing Development Authority during the exemption | 25 | | determination process under the Affordable Housing Planning | 26 | | and Appeal Act; or (2) a jurisdiction located in a |
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| 1 | | municipality with 1,000,000 or more inhabitants that has been | 2 | | designated as a low affordability community by passage of a | 3 | | local ordinance by that municipality, specifying the census | 4 | | tract or property by permanent index number or numbers. | 5 | | "Maximum income limits" means the maximum regular income | 6 | | limits for 60% of area median income for the geographic area in | 7 | | which the multifamily building is located for multifamily | 8 | | programs as determined by the United States Department of | 9 | | Housing and Urban Development and published annually by the | 10 | | Illinois Housing Development Authority. | 11 | | "Maximum rent" means the maximum regular rent for 60% of | 12 | | the area median income for the geographic area in which the | 13 | | multifamily building is located for multifamily programs as | 14 | | determined by the United States Department of Housing and | 15 | | Urban Development and published annually by the Illinois | 16 | | Housing Development Authority. To be eligible for the reduced | 17 | | valuation defined in this Section, maximum rents are to be | 18 | | consistent with the Illinois Housing Development Authority's | 19 | | rules; or if the owner is leasing an affordable unit to a | 20 | | household with an income at or below the maximum income limit | 21 | | who is participating in qualifying income-based rental subsidy | 22 | | program, "maximum rent" means the maximum rents allowable | 23 | | under the guidelines of the qualifying income-based rental | 24 | | subsidy program. | 25 | | "Qualifying income-based rental subsidy program" means a | 26 | | Housing Choice Voucher issued by a housing authority under |
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| 1 | | Section 8 of the United States Housing Act of 1937, a tenant | 2 | | voucher converted to a project-based voucher by a housing | 3 | | authority or any other program administered or funded by a | 4 | | housing authority, the Illinois Housing Development Authority, | 5 | | another State agency, a federal agency, or a unit of local | 6 | | government where participation is limited to households with | 7 | | incomes at or below the maximum income limits as defined in | 8 | | this Section and the tenants' portion of the rent payment is | 9 | | based on a percentage of their income or a flat amount that | 10 | | does not exceed the maximum rent as defined in this Section. | 11 | | "Qualifying rehabilitation" means, at a minimum, | 12 | | compliance with local building codes and the replacement or | 13 | | renovation of at least 2 primary building systems to be | 14 | | approved for the reduced valuation under paragraph (1) of | 15 | | subsection (d) of this Section and at least 5 primary building | 16 | | systems to be approved for the reduced valuation under | 17 | | paragraph (2) of subsection (d) of this Section. Although the | 18 | | cost of each primary building system may vary, to be approved | 19 | | for the reduced valuation under paragraph (1) of subsection | 20 | | (d) of this Section, the combined expenditure for making the | 21 | | building compliant with local codes and replacing primary | 22 | | building systems must be at least $8 per square foot for work | 23 | | completed between January 1 of the year in which this | 24 | | amendatory Act of the 102nd General Assembly takes effect and | 25 | | December 31 of the year in which this amendatory Act of the | 26 | | 102nd General Assembly takes effect and, in subsequent years, |
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| 1 | | $8 adjusted by the Consumer Price Index for All Urban | 2 | | Consumers, as published annually by the U.S. Department of | 3 | | Labor. To be approved for the reduced valuation under | 4 | | paragraph (2) of subsection (d) of this Section, the combined | 5 | | expenditure for making the building compliant with local codes | 6 | | and replacing primary building systems must be at least $12.50 | 7 | | per square foot for work completed between January 1 of the | 8 | | year in which this amendatory Act of the 102nd General | 9 | | Assembly takes effect and December 31 of the year in which this | 10 | | amendatory Act of the 102nd General Assembly takes effect, and | 11 | | in subsequent years, $12.50 adjusted by the Consumer Price | 12 | | Index for All Urban Consumers, as published annually by the | 13 | | U.S. Department of Labor. To be approved for the reduced | 14 | | valuation under subsection (e) of this Section, the combined | 15 | | expenditure for making the building compliant with local codes | 16 | | and replacing primary building systems must be at least $60 | 17 | | per square foot for work completed between January 1 of the | 18 | | year that this amendatory Act of the 102nd General Assembly | 19 | | becomes effective and December 31 of the year that this | 20 | | amendatory Act of the 102nd General Assembly becomes effective | 21 | | and, in subsequent years, $60 adjusted by the Consumer Price | 22 | | Index for All Urban Consumers, as published annually by the | 23 | | U.S. Department of Labor. "Primary building systems", together | 24 | | with their related rehabilitations, specifically approved for | 25 | | this program are: | 26 | | (1) Electrical. All electrical work must comply with |
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| 1 | | applicable codes; it may consist of a combination of any | 2 | | of the following alternatives: | 3 | | (A) installing individual equipment and appliance | 4 | | branch circuits as required by code (the minimum being | 5 | | a kitchen appliance branch circuit); | 6 | | (B) installing a new emergency service, including | 7 | | emergency lighting with all associated conduits and | 8 | | wiring; | 9 | | (C) rewiring all existing feeder conduits ("home | 10 | | runs") from the main switchgear to apartment area | 11 | | distribution panels; | 12 | | (D) installing new in-wall conduits for | 13 | | receptacles, switches, appliances, equipment, and | 14 | | fixtures; | 15 | | (E) replacing power wiring for receptacles, | 16 | | switches, appliances, equipment, and fixtures; | 17 | | (F) installing new light fixtures throughout the | 18 | | building including closets and central areas; | 19 | | (G) replacing, adding, or doing work as necessary | 20 | | to bring all receptacles, switches, and other | 21 | | electrical devices into code compliance; | 22 | | (H) installing a new main service, including | 23 | | conduit, cables into the building, and main disconnect | 24 | | switch; and | 25 | | (I) installing new distribution panels, including | 26 | | all panel wiring, terminals, circuit breakers, and all |
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| 1 | | other panel devices. | 2 | | (2) Heating. All heating work must comply with | 3 | | applicable codes; it may consist of a combination of any | 4 | | of the following alternatives: | 5 | | (A) installing a new system to replace one of the | 6 | | following heat distribution systems: | 7 | | (i) piping and heat radiating units, including | 8 | | new main line venting and radiator venting; or | 9 | | (ii) duct work, diffusers, and cold air | 10 | | returns; or | 11 | | (iii) any other type of existing heat | 12 | | distribution and radiation/diffusion components; | 13 | | or | 14 | | (B) installing a new system to replace one of the | 15 | | following heat generating units: | 16 | | (i) hot water/steam boiler; | 17 | | (ii) gas furnace; or | 18 | | (iii) any other type of existing heat | 19 | | generating unit. | 20 | | (3) Plumbing. All plumbing work must comply with | 21 | | applicable codes. Replace all or a part of the in-wall | 22 | | supply and waste plumbing; however, main supply risers, | 23 | | waste stacks and vents, and code-conforming waste lines | 24 | | need not be replaced. | 25 | | (4) Roofing. All roofing work must comply with | 26 | | applicable codes; it may consist of either of the |
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| 1 | | following alternatives, separately or in combination: | 2 | | (A) replacing all rotted roof decks and | 3 | | insulation; or | 4 | | (B) replacing or repairing leaking roof membranes | 5 | | (10% is the suggested minimum replacement of | 6 | | membrane); restoration of the entire roof is an | 7 | | acceptable substitute for membrane replacement. | 8 | | (5) Exterior doors and windows. Replace the exterior | 9 | | doors and windows. Renovation of ornate entry doors is an | 10 | | acceptable substitute for replacement. | 11 | | (6) Floors, walls, and ceilings. Finishes must be | 12 | | replaced or covered over with new material. Acceptable | 13 | | replacement or covering materials are as follows: | 14 | | (A) floors must have new carpeting, vinyl tile, | 15 | | ceramic, refurbished wood finish, or a similar | 16 | | substitute; | 17 | | (B) walls must have new drywall, including joint | 18 | | taping and painting; or | 19 | | (C) new ceilings must be either drywall, suspended | 20 | | type, or a similar material. | 21 | | (7) Exterior walls. | 22 | | (A) replace loose or crumbling mortar and masonry | 23 | | with new material; | 24 | | (B) replace or paint wall siding and trim as | 25 | | needed; | 26 | | (C) bring porches and balconies to a sound |
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| 1 | | condition; or | 2 | | (D) any combination of (A), (B), and (C). | 3 | | (8) Elevators. Where applicable, at least 4 of the | 4 | | following 7 alternatives must be accomplished: | 5 | | (A) replace or rebuild the machine room controls | 6 | | and refurbish the elevator machine (or equivalent | 7 | | mechanisms in the case of hydraulic elevators); | 8 | | (B) replace hoistway electro-mechanical items | 9 | | including: ropes, switches, limits, buffers, levelers, | 10 | | and deflector sheaves (or equivalent mechanisms in the | 11 | | case of hydraulic elevators); | 12 | | (C) replace hoistway wiring; | 13 | | (D) replace door operators and linkage; | 14 | | (E) replace door panels at each opening; | 15 | | (F) replace hall stations, car stations, and | 16 | | signal fixtures; or | 17 | | (G) rebuild the car shell and refinish the | 18 | | interior. | 19 | | (9) Health and safety. | 20 | | (A) Install or replace fire suppression systems; | 21 | | (B) install or replace security systems; or | 22 | | (C) environmental remediation of lead-based paint, | 23 | | asbestos, leaking underground storage tanks, or radon. | 24 | | (10) Energy conservation improvements undertaken to | 25 | | limit the amount of solar energy absorbed by a building's | 26 | | roof or to reduce energy use for the property, including, |
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| 1 | | but not limited to, any of the following activities: | 2 | | (A) installing or replacing reflective roof | 3 | | coatings (flat roofs); | 4 | | (B) installing or replacing R-49 roof insulation; | 5 | | (C) installing or replacing R-19 perimeter wall | 6 | | insulation; | 7 | | (D) installing or replacing insulated entry doors; | 8 | | (E) installing or replacing Low E, insulated | 9 | | windows; | 10 | | (F) installing or replacing WaterSense labeled | 11 | | plumbing fixtures; | 12 | | (G) installing or replacing 90% or better sealed | 13 | | combustion heating systems; | 14 | | (H) installing Energy Star hot water heaters; | 15 | | (I) installing or replacing mechanical ventilation | 16 | | to exterior for kitchens and baths; | 17 | | (J) installing or replacing Energy Star | 18 | | appliances; | 19 | | (K) installing or replacing Energy Star certified | 20 | | lighting in common areas; or | 21 | | (L) installing or replacing grading and | 22 | | landscaping to promote on-site water retention if the | 23 | | retained water is used to replace water that is | 24 | | provided from a municipal source. | 25 | | (11) Accessibility improvements. All accessibility | 26 | | improvements must comply with applicable codes. An owner |
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| 1 | | may make accessibility improvements to residential real | 2 | | property to increase access for people with disabilities. | 3 | | As used in this paragraph (11), "disability" has the | 4 | | meaning given to that term in the Illinois Human Rights | 5 | | Act. As used in this paragraph (11), "accessibility | 6 | | improvements" means a home modification listed under the | 7 | | Home Services Program administered by the Department of | 8 | | Human Services (Part 686 of Title 89 of the Illinois | 9 | | Administrative Code) including, but not limited to: | 10 | | installation of ramps, grab bars, or wheelchair lifts; | 11 | | widening doorways or hallways; re-configuring rooms and | 12 | | closets; and any other changes to enhance the independence | 13 | | of people with disabilities. | 14 | | (12) Any applicant who has purchased the property in | 15 | | an arm's length transaction not more than 90 days before | 16 | | applying for this reduced valuation may use the cost of | 17 | | rehabilitation or repairs required by documented code | 18 | | violations, up to a maximum of $2 per square foot, to meet | 19 | | the qualifying rehabilitation requirements. | 20 | | Section 5-25. The Affordable Housing Planning and Appeal | 21 | | Act is amended by changing Sections 15, 25, and 50 and by | 22 | | adding Section 70 as follows:
| 23 | | (310 ILCS 67/15)
| 24 | | Sec. 15. Definitions. As used in this Act:
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| 1 | | "Affordable housing" means housing that has a value or | 2 | | cost or rental amount
that is within the means of a household | 3 | | that may occupy moderate-income or
low-income
housing. In the | 4 | | case of owner-occupied dwelling units,
housing that is | 5 | | affordable means housing in which mortgage, amortization,
| 6 | | taxes, insurance, and condominium or association fees, if any, | 7 | | constitute no
more than 30% of the gross annual household | 8 | | income for a household of the size
that may occupy the unit. In | 9 | | the case of dwelling units for rent, housing that
is | 10 | | affordable means housing for which the rent , any required | 11 | | parking, maintenance, landlord-imposed fees, and utilities | 12 | | constitute no more
than 30% of the gross annual household | 13 | | income for a household of the size that
may occupy the unit.
| 14 | | "Affordable housing developer" means a nonprofit entity, | 15 | | limited equity
cooperative or public agency, or private | 16 | | individual, firm, corporation, or
other entity
seeking to | 17 | | build an affordable housing development.
| 18 | | "Affordable housing development" means (i) any housing | 19 | | that is subsidized by
the federal or State government or (ii) | 20 | | any housing in which at least 20% of
the dwelling units are | 21 | | subject to covenants or restrictions that require that
the | 22 | | dwelling units be sold or rented at prices that preserve them | 23 | | as affordable
housing for a period of at least 15 years, in the | 24 | | case of owner-occupied housing, and
at least 30 years, in the | 25 | | case of rental housing.
| 26 | | "Approving authority" means the governing body of the |
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| 1 | | county or municipality. | 2 | | "Area median household income" means the median household | 3 | | income adjusted for family size for applicable income limit | 4 | | areas as determined annually by the federal Department of | 5 | | Housing and Urban Development under Section 8 of the United | 6 | | States Housing Act of 1937.
| 7 | | "Community land trust" means a private, not-for-profit | 8 | | corporation organized exclusively for charitable, cultural, | 9 | | and other purposes and created to acquire and own land for the | 10 | | benefit of the local government, including the creation and | 11 | | preservation of affordable housing.
| 12 | | "Development" means any building, construction, | 13 | | renovation, or excavation or
any material change in any | 14 | | structure or land, or change in the
use
of such structure or | 15 | | land, that results in a net increase in the number of dwelling | 16 | | units in a structure or on a parcel of land by more than one | 17 | | dwelling unit.
| 18 | | "Exempt local government" means any local government in | 19 | | which at least 10% of
its total year-round housing units are | 20 | | affordable, as determined by the
Illinois Housing Development | 21 | | Authority pursuant to Section 20 of this Act; or
any | 22 | | municipality under 1,000 population.
| 23 | | "Household" means the person or persons occupying a | 24 | | dwelling unit.
| 25 | | "Housing trust fund" means a separate fund, either within | 26 | | a local government or between local governments pursuant to |
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| 1 | | intergovernmental agreement, established solely for the | 2 | | purposes authorized in subsection (d) of Section 25, | 3 | | including, without limitation, the holding and disbursing of | 4 | | financial resources to address the affordable housing needs of | 5 | | individuals or households that may occupy low-income or | 6 | | moderate-income housing.
| 7 | | "Local government" means a county or municipality.
| 8 | | "Low-income housing" means housing that is affordable, | 9 | | according to the
federal Department of Housing and Urban | 10 | | Development, for either home ownership
or rental, and that is | 11 | | occupied, reserved, or marketed for occupancy by
households | 12 | | with a gross household income that does not exceed 50% of the | 13 | | area median
household income.
| 14 | | "Moderate-income housing" means housing that is | 15 | | affordable, according to the
federal Department of Housing and | 16 | | Urban Development, for either home ownership
or
rental, and | 17 | | that is occupied, reserved, or marketed for occupancy by | 18 | | households
with a gross household income that is greater than | 19 | | 50% but does not exceed 80%
of the area median household | 20 | | income.
| 21 | | "Non-appealable local government requirements" means all | 22 | | essential
requirements that protect the public health and | 23 | | safety, including any local
building, electrical, fire, or | 24 | | plumbing code requirements or those requirements
that
are | 25 | | critical to the protection or preservation of the environment.
| 26 | | (Source: P.A. 98-287, eff. 8-9-13.)
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| 1 | | (310 ILCS 67/25)
| 2 | | Sec. 25. Affordable housing plan.
| 3 | | (a) Prior to April 1, 2005, all non-exempt local | 4 | | governments must approve an
affordable housing plan. Any local | 5 | | government that is determined by the Illinois Housing | 6 | | Development Authority under Section 20 to be non-exempt for | 7 | | the first time based on the recalculation of U.S. Census | 8 | | Bureau data after 2010 shall have 18 months from the date of | 9 | | notification of its non-exempt status to approve an affordable | 10 | | housing plan under this Act.
On and after the effective date of | 11 | | this amendatory Act of the 102nd General Assembly, an | 12 | | affordable housing plan, or any revision thereof, shall not be | 13 | | adopted by a non-exempt local government until notice and | 14 | | opportunity for public hearing have first been afforded.
| 15 | | (b) For the purposes of this Act, the affordable housing | 16 | | plan shall consist
of at least the following:
| 17 | | (i) a statement of the total number of affordable | 18 | | housing units that are
necessary to exempt the local | 19 | | government from the operation of this Act as
defined in | 20 | | Section 15 and Section 20;
| 21 | | (ii) an identification of lands within the | 22 | | jurisdiction that are most
appropriate for the | 23 | | construction of affordable housing and of existing
| 24 | | structures most appropriate for conversion to, or | 25 | | rehabilitation for,
affordable housing,
including a |
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| 1 | | consideration of lands and structures of developers who | 2 | | have
expressed a commitment to provide affordable housing | 3 | | and lands and structures
that are publicly or | 4 | | semi-publicly owned;
| 5 | | (iii) incentives that local governments may provide | 6 | | for the purpose of
attracting affordable housing to their | 7 | | jurisdiction; and
| 8 | | (iv) a goal of a minimum of 15% of all new development | 9 | | or
redevelopment within the local government that would be | 10 | | defined as affordable
housing in this Act; or a minimum of | 11 | | a 3 percentage point increase in the
overall percentage of | 12 | | affordable housing within its jurisdiction, as
described | 13 | | in subsection (b) of Section 20 of this Act; or a minimum | 14 | | of a total of 10% affordable
housing
within its | 15 | | jurisdiction as described in subsection (b) of Section 20 | 16 | | of this Act. These goals may be met, in whole or in part, | 17 | | through the creation of affordable housing units under | 18 | | intergovernmental agreements as described in subsection | 19 | | (e) of this Section.
| 20 | | (c) Within 60 days after the adoption of an affordable | 21 | | housing plan or
revisions to its affordable housing plan, the | 22 | | local government must submit a
copy of that plan to the | 23 | | Illinois Housing Development Authority.
| 24 | | (d) In order to promote the goals of this Act and to | 25 | | maximize the creation, establishment, or preservation of | 26 | | affordable housing throughout the State of Illinois, a local |
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| 1 | | government, whether exempt or non-exempt under this Act, may | 2 | | adopt the following measures to address the need for | 3 | | affordable housing: | 4 | | (1) Local governments may individually or jointly | 5 | | create or participate in a housing trust fund or otherwise | 6 | | provide funding or support for the purpose of supporting | 7 | | affordable housing, including, without limitation, to | 8 | | support the following affordable housing activities: | 9 | | (A) Housing production, including, without | 10 | | limitation, new construction, rehabilitation, and | 11 | | adaptive re-use. | 12 | | (B) Acquisition, including, without limitation, | 13 | | land, single-family homes, multi-unit buildings, and | 14 | | other existing structures that may be used in whole or | 15 | | in part for residential use. | 16 | | (C) Rental payment assistance. | 17 | | (D) Home-ownership purchase assistance. | 18 | | (E) Preservation of existing affordable housing. | 19 | | (F) Weatherization. | 20 | | (G) Emergency repairs. | 21 | | (H) Housing related support services, including | 22 | | homeownership education and financial counseling. | 23 | | (I) Grants or loans to not-for-profit | 24 | | organizations engaged in addressing the affordable | 25 | | housing needs of low-income and moderate-income | 26 | | households. |
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| 1 | | Local governments may authorize housing trust funds to | 2 | | accept and utilize funds, property, and other resources | 3 | | from all proper and lawful public and private sources so | 4 | | long as those funds are used solely for addressing the | 5 | | affordable housing needs of individuals or households that | 6 | | may occupy low-income or moderate-income housing. | 7 | | (2) A local government may create a community land | 8 | | trust, which may: acquire developed or undeveloped | 9 | | interests in real property and hold them for affordable | 10 | | housing purposes; convey such interests under long-term | 11 | | leases, including ground leases; convey such interests for | 12 | | affordable housing purposes; and retain an option to | 13 | | reacquire any such real property interests at a price | 14 | | determined by a formula ensuring that such interests may | 15 | | be utilized for affordable housing purposes. | 16 | | (3) A local government may use its zoning powers to | 17 | | require the creation and preservation of affordable | 18 | | housing as authorized under Section 5-12001 of the | 19 | | Counties Code and Section 11-13-1 of the Illinois | 20 | | Municipal Code. | 21 | | (4) A local government may accept donations of money | 22 | | or land for the purpose of addressing the affordable | 23 | | housing needs of individuals or households that may occupy | 24 | | low-income or moderate-income housing. These donations may | 25 | | include, without limitation, donations of money or land | 26 | | from persons , as long as the donations are demonstrably |
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| 1 | | used to preserve, create, or subsidize low-income housing | 2 | | or moderate-income housing within the jurisdiction in lieu | 3 | | of building affordable housing . | 4 | | (e) In order to encourage regional cooperation and the | 5 | | maximum creation of affordable housing in areas lacking such | 6 | | housing in the State of Illinois, any non-exempt local | 7 | | government may enter into intergovernmental agreements under | 8 | | subsection (e) of Section 25 with local governments within 10 | 9 | | miles of its corporate boundaries in order to create | 10 | | affordable housing units to meet the goals of this Act. A | 11 | | non-exempt local government may not enter into an | 12 | | intergovernmental agreement, however, with any local | 13 | | government that contains more than 25% affordable housing as | 14 | | determined under Section 20 of this Act. All intergovernmental | 15 | | agreements entered into to create affordable housing units to | 16 | | meet the goals of this Act must also specify the basis for | 17 | | determining how many of the affordable housing units created | 18 | | will be credited to each local government participating in the | 19 | | agreement for purposes of complying with this Act. All | 20 | | intergovernmental agreements entered into to create affordable | 21 | | housing units to meet the goals of this Act must also specify | 22 | | the anticipated number of newly created affordable housing | 23 | | units that are to be credited to each local government | 24 | | participating in the agreement for purposes of complying with | 25 | | this Act. In specifying how many affordable housing units will | 26 | | be credited to each local government, the same affordable |
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| 1 | | housing unit may not be counted by more than one local | 2 | | government.
| 3 | | (f) To enforce compliance with the provisions of this | 4 | | Section, and to encourage local governments to submit their | 5 | | affordable housing plans to the Illinois Housing Development | 6 | | Authority in a timely manner, the Illinois Housing Development | 7 | | Authority shall notify any local government and may notify the | 8 | | Office of the Attorney General that the local government is in | 9 | | violation of State law if the Illinois Housing Development | 10 | | Authority finds that the affordable housing plan submitted is | 11 | | not in substantial compliance with this Section or that the | 12 | | local government failed to submit an affordable housing plan. | 13 | | The Attorney General may enforce this provision of the Act by | 14 | | an action for mandamus or injunction or by means of other | 15 | | appropriate relief. | 16 | | (Source: P.A. 98-287, eff. 8-9-13.)
| 17 | | (310 ILCS 67/50)
| 18 | | Sec. 50. Housing Appeals Board.
| 19 | | (a) Prior to January 1, 2008, a Housing Appeals Board | 20 | | shall be created
consisting of 7 members appointed by the | 21 | | Governor as follows:
| 22 | | (1) a retired circuit judge or retired appellate | 23 | | judge, who shall act as
chairperson;
| 24 | | (2) a zoning board of appeals member;
| 25 | | (3) a planning board member;
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| 1 | | (4) a mayor or municipal council or board member;
| 2 | | (5) a county board member;
| 3 | | (6) an affordable housing developer; and
| 4 | | (7) an affordable housing advocate.
| 5 | | In addition, the Chairman of the Illinois Housing | 6 | | Development Authority, ex
officio, shall serve as a non-voting | 7 | | member.
No more than 4 of the appointed members may be from the | 8 | | same political party.
Appointments under items (2), (3), and | 9 | | (4) shall be from local governments that
are not exempt under | 10 | | this Act.
| 11 | | (b) Initial terms of 4 members designated by the Governor | 12 | | shall be for 2
years. Initial terms of 3 members designated by | 13 | | the Governor shall be for one
year. Thereafter, members shall | 14 | | be appointed for terms of 2 years. After a member's term | 15 | | expires, the member shall continue to serve until a successor | 16 | | is appointed. There shall be no limit to the number of terms an | 17 | | appointee may serve. A member
shall receive no
compensation | 18 | | for his or her services, but shall be reimbursed by the State | 19 | | for
all reasonable expenses actually and necessarily incurred | 20 | | in the performance of
his or her
official duties. The board | 21 | | shall hear all petitions for review filed under this
Act and | 22 | | shall conduct all hearings in accordance with the rules and | 23 | | regulations
established by the chairperson. The Illinois | 24 | | Housing Development Authority
shall provide space and
clerical | 25 | | and other assistance that the Board may require.
| 26 | | (c) (Blank).
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| 1 | | (d) Any vacancies in the Housing Appeals Board shall be | 2 | | filled within 90 days of the vacancy. | 3 | | (Source: P.A. 98-287, eff. 8-9-13.)
| 4 | | (310 ILCS 67/70 new) | 5 | | Sec. 70. Home rule application. Unless otherwise provided | 6 | | under this Act or otherwise in accordance with State law, a | 7 | | unit of local government, including a home rule unit, or any | 8 | | non-home rule county within the unincorporated territory of | 9 | | the county, may not regulate the activities described in this | 10 | | Act in a manner more restrictive than the regulation of those | 11 | | activities by the State under this Act. This Section is a | 12 | | limitation under subsection (i) of Section 6 of Article VII of | 13 | | the Illinois Constitution on the concurrent exercise by home | 14 | | rule units of powers and functions exercised by the State. | 15 | | ARTICLE 99. EFFECTIVE DATE | 16 | | Section 99-99. Effective date. This Act takes effect upon | 17 | | becoming law.".
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