Full Text of SB3895 102nd General Assembly
SB3895enr 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section 15-178 as follows: | 6 | | (35 ILCS 200/15-178) | 7 | | Sec. 15-178. Reduction in assessed value for affordable | 8 | | rental housing construction or rehabilitation. | 9 | | (a) The General Assembly finds that there is a shortage of | 10 | | high quality affordable rental homes for low-income and | 11 | | very-low-income households throughout Illinois; that owners | 12 | | and developers of rental housing face significant challenges | 13 | | building newly constructed apartments or undertaking | 14 | | rehabilitation of existing properties that results in rents | 15 | | that are affordable for low-income and very-low-income | 16 | | households; and that it will help Cook County and other parts | 17 | | of Illinois address the extreme shortage of affordable rental | 18 | | housing by developing a statewide policy to determine the | 19 | | assessed value for newly constructed and rehabilitated | 20 | | affordable rental housing that both encourages investment and | 21 | | incentivizes property owners to keep rents affordable. | 22 | | (b) Each chief county assessment officer shall implement | 23 | | special assessment programs to reduce the assessed value of |
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| 1 | | all eligible newly constructed residential real property or | 2 | | qualifying rehabilitation to all eligible existing residential | 3 | | real property in accordance with subsection (c) for 10 taxable | 4 | | years after the newly constructed residential real property or | 5 | | improvements to existing residential real property are put in | 6 | | service. Any county with less than 3,000,000 inhabitants may | 7 | | decide not to implement one or both of the special assessment | 8 | | programs defined in subparagraph (1) of subsection (c) of this | 9 | | Section and subparagraph (2) of subsection (c) of this Section | 10 | | upon passage of an ordinance by a majority vote of the county | 11 | | board. Subsequent to a vote to opt out of this special | 12 | | assessment program, any county with less than 3,000,000 | 13 | | inhabitants may decide to implement one or both of the special | 14 | | assessment programs defined in subparagraph (1) of subsection | 15 | | (c) of this Section and subparagraph (2) of subsection (c) of | 16 | | this Section upon passage of an ordinance by a majority vote of | 17 | | the county board. Property is eligible for the special | 18 | | assessment program if and only if all of the following factors | 19 | | have been met: | 20 | | (1) at the conclusion of the new construction or
| 21 | | qualifying rehabilitation, the property consists of a | 22 | | newly constructed multifamily building containing 7 or | 23 | | more rental dwelling units or an existing multifamily | 24 | | building that has undergone qualifying rehabilitation | 25 | | resulting in 7 or more rental dwelling units; and | 26 | | (2) the property meets the application requirements |
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| 1 | | defined in subsection (f). | 2 | | (c) For those counties that are required to implement the | 3 | | special assessment program and do not opt out of such special | 4 | | assessment program, the chief county assessment officer for | 5 | | that county shall require that residential real property is | 6 | | eligible for the special assessment program if and only if one | 7 | | of the additional factors have been met: | 8 | | (1) except as defined in subparagraphs (E), (F), and
| 9 | | (G) of paragraph (1) of subsection (f) of this Section,
| 10 | | prior to the newly constructed residential real property
| 11 | | or improvements to existing residential real property
| 12 | | being put in service, the owner of the residential real | 13 | | property commits that, for a period of 10 years, at least
| 14 | | 15% of the multifamily building's units will have rents as
| 15 | | defined in this Section that are at or below maximum rents
| 16 | | and are occupied by households with household incomes at | 17 | | or below maximum income limits; or | 18 | | (2) except as defined in subparagraphs (E), (F), and
| 19 | | (G) of paragraph (1) of subsection (f) of this Section,
| 20 | | prior to the newly constructed residential real property | 21 | | or improvements to existing residential real property | 22 | | located in a low affordability community being
put in | 23 | | service, the owner of the residential real property
| 24 | | commits that, for a period of 30 years after the newly
| 25 | | constructed residential real property or improvements to
| 26 | | existing residential real property are put in service, at
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| 1 | | least 20% of the multifamily building's units will have
| 2 | | rents as defined in this Section that are at or below
| 3 | | maximum rents and are occupied by households with | 4 | | household incomes at or below maximum income limits. | 5 | | If a reduction in assessed value is granted under one | 6 | | special assessment program provided for in this Section, then | 7 | | that same residential real property is not eligible for an | 8 | | additional special assessment program under this Section at | 9 | | the same time. | 10 | | (d) The amount of the reduction in assessed value for | 11 | | residential real property meeting the conditions set forth in | 12 | | subparagraph (1) of subsection (c) shall be calculated as | 13 | | follows: | 14 | | (1) if the owner of the residential real property | 15 | | commits for a period of at least 10 years that at least 15% | 16 | | but fewer than 35% of the multifamily building's units | 17 | | have rents at or below maximum rents and are occupied by | 18 | | households with household incomes at or below maximum | 19 | | income limits, the assessed value of the property used to | 20 | | calculate the tax bill shall be reduced by an amount equal | 21 | | to 25% of the assessed value of the property as determined | 22 | | by the assessor for the property in the current taxable | 23 | | year for the newly constructed residential real property | 24 | | or based on the improvements to an existing residential | 25 | | real property; and | 26 | | (2) if the owner of the residential real property |
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| 1 | | commits for a period of at least 10 years that at least 35% | 2 | | of the multifamily building's units have rents at or below | 3 | | maximum rents and are occupied by households with | 4 | | household incomes at or below maximum income limits, the | 5 | | assessed value of the property used to calculate the tax | 6 | | bill shall be reduced by an amount equal to 35% of the | 7 | | assessed value of the property as determined by the | 8 | | assessor for the property in the current assessment year | 9 | | for the newly constructed residential real property or | 10 | | based on the improvements to an existing residential real | 11 | | property. | 12 | | (e) The amount of the reduction for residential real | 13 | | property meeting the conditions set forth in subparagraph (2) | 14 | | of subsection (c) shall be calculated as follows: | 15 | | (1) for the first, second, and third taxable year | 16 | | after the residential real property is placed in service, | 17 | | the residential real property is entitled to a reduction | 18 | | in its assessed value in an amount equal to the difference | 19 | | between the assessed value in the year for which the | 20 | | incentive is sought and the assessed value for the | 21 | | residential real property in the base year; | 22 | | (2) for the fourth, fifth, and sixth taxable year | 23 | | after the residential real property is placed in service, | 24 | | the property is entitled to a reduction in its assessed | 25 | | value in an amount equal to 80% of the difference between | 26 | | the assessed value in the year for which the incentive is |
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| 1 | | sought and the assessed value for the residential real | 2 | | property in the base year; | 3 | | (3) for the seventh, eighth, and ninth taxable year | 4 | | after the property is placed in service, the residential | 5 | | real property is entitled to a reduction in its assessed | 6 | | value in an amount equal to 60% of the difference between | 7 | | the assessed value in the year for which the incentive is | 8 | | sought and the assessed value for the residential real | 9 | | property in the base year; | 10 | | (4) for the tenth, eleventh, and twelfth taxable year | 11 | | after the residential real property is placed in service, | 12 | | the residential real property is entitled to a reduction | 13 | | in its assessed value in an amount equal to 40% of the | 14 | | difference between the assessed value in the year for | 15 | | which the incentive is sought and the assessed value for | 16 | | the residential real property in the base year; and | 17 | | (5) for the thirteenth through the thirtieth taxable | 18 | | year after the residential real property is placed in | 19 | | service, the residential real property is entitled to a | 20 | | reduction in its assessed value in an amount equal to 20% | 21 | | of the difference between the assessed value in the year | 22 | | for which the incentive is sought and the assessed value | 23 | | for the residential real property in the base year. | 24 | | (f) Application requirements. | 25 | | (1) In order to receive the reduced valuation under | 26 | | this Section, the owner must submit an application |
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| 1 | | containing the following information to the chief county | 2 | | assessment officer for review in the form and by the date | 3 | | required by the chief county assessment officer: | 4 | | (A) the owner's name; | 5 | | (B) the postal address and permanent index number | 6 | | or numbers of the parcel or parcels for which the owner | 7 | | is applying to receive reduced valuation under this | 8 | | Section; | 9 | | (C) a deed or other instrument conveying the | 10 | | parcel or parcels to the current owner; | 11 | | (D) written evidence that the new construction or | 12 | | qualifying rehabilitation has been completed with | 13 | | respect to the residential real property, including, | 14 | | but not limited to, copies of building permits, a | 15 | | notarized contractor's affidavit, and photographs of | 16 | | the interior and exterior of the building after new | 17 | | construction or rehabilitation is completed; | 18 | | (E) written evidence that the residential real | 19 | | property meets local building codes, or if there are | 20 | | no local building codes, Housing Quality Standards, as | 21 | | determined by the United States Department of Housing | 22 | | and Urban Development; | 23 | | (F) a list identifying the affordable units in | 24 | | residential real property and a written statement that | 25 | | the affordable units are comparable to the market rate | 26 | | units in terms of unit type, number of bedrooms per |
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| 1 | | unit, quality of exterior appearance, energy | 2 | | efficiency, and overall quality of construction; | 3 | | (G) a written schedule certifying the rents in | 4 | | each affordable unit and a written statement that | 5 | | these rents do not exceed the maximum rents allowable | 6 | | for the area in which the residential real property is | 7 | | located; | 8 | | (H) documentation from the administering agency | 9 | | verifying the owner's participation in a qualifying | 10 | | income-based rental subsidy program as defined in | 11 | | subsection (e) of this Section if units receiving | 12 | | rental subsidies are to be counted among the | 13 | | affordable units in order to meet the thresholds | 14 | | defined in this Section; | 15 | | (I) a written statement identifying the household | 16 | | income for every household occupying an affordable | 17 | | unit and certifying that the household income does not | 18 | | exceed the maximum income limits allowable for the | 19 | | area in which the residential real property is | 20 | | located; | 21 | | (J) a written statement that the owner has | 22 | | verified and retained documentation of household | 23 | | income for every household occupying an affordable | 24 | | unit; and | 25 | | (K) any additional information consistent with | 26 | | this Section as reasonably required by the chief |
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| 1 | | county assessment officer, including, but not limited | 2 | | to, any information necessary to ensure compliance | 3 | | with applicable local ordinances and to ensure the | 4 | | owner is complying with the provisions 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 | | (g) (e) As used in 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 assessed value used to calculate the tax | 18 | | bill, as certified by the board of review, for the tax year | 19 | | immediately prior to the tax year in which the building permit | 20 | | is issued. For property assessed as other than residential | 21 | | property, the "assessed value for the residential real | 22 | | property in the base year" means the assessed value that would | 23 | | have been obtained had the property been classified as | 24 | | residential as derived from the board of review's certified | 25 | | market value the value in effect at the end of the taxable year | 26 | | prior to the latter of: (1) the date of initial application; or |
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| 1 | | (2) the date on which 20% of the total number of units in the | 2 | | property are occupied by eligible tenants paying eligible rent | 3 | | under this Section . | 4 | | "Household income" includes the annual income for all the | 5 | | people who occupy a housing unit that is anticipated to be | 6 | | received from a source outside of the family during the | 7 | | 12-month period following admission or the annual | 8 | | recertification, including related family members and all the | 9 | | unrelated people who share the housing unit. Household income | 10 | | includes the total of the following income sources: wages, | 11 | | salaries and tips before any payroll deductions; net business | 12 | | income; interest and dividends; payments in lieu of earnings, | 13 | | such as unemployment and disability compensation, worker's | 14 | | compensation and severance pay; Social Security income, | 15 | | including lump sum payments; payments from insurance policies, | 16 | | annuities, pensions, disability benefits and other types of | 17 | | periodic payments, alimony, child support, and other regular | 18 | | monetary contributions; and public assistance, except for | 19 | | assistance from the Supplemental Nutrition Assistance Program | 20 | | (SNAP). "Household income" does not include: earnings of | 21 | | children under age 18; temporary income such as cash gifts; | 22 | | reimbursement for medical expenses; lump sums from | 23 | | inheritance, insurance payments, settlements for personal or | 24 | | property losses; student financial assistance paid directly to | 25 | | the student or to an educational institution; foster child | 26 | | care payments; receipts from government-funded training |
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| 1 | | programs; assistance from the Supplemental Nutrition | 2 | | Assistance Program (SNAP). | 3 | | "Low affordability community" means (1) a municipality or | 4 | | jurisdiction with less than 1,000,000 inhabitants in which 40% | 5 | | or less of its total year-round housing units are affordable, | 6 | | as determined by the Illinois Housing Development Authority | 7 | | during the exemption determination process under the | 8 | | Affordable Housing Planning and Appeal Act; (2) "D" zoning | 9 | | districts as now or hereafter designated in the Chicago Zoning | 10 | | Ordinance; or (3) a jurisdiction located in a municipality | 11 | | with 1,000,000 or more inhabitants that has been designated as | 12 | | a low affordability community by passage of a local ordinance | 13 | | by that municipality, specifying the census tract or property | 14 | | by permanent index number or numbers. | 15 | | "Maximum income limits" means the maximum regular income | 16 | | limits for 60% of area median income for the geographic area in | 17 | | which the multifamily building is located for multifamily | 18 | | programs as determined by the United States Department of | 19 | | Housing and Urban Development and published annually by the | 20 | | Illinois Housing Development Authority. A property may be | 21 | | deemed to have satisfied the maximum income limits with a | 22 | | weighted average if municipal, state, or federal laws, | 23 | | ordinances, rules, or regulations requires the use of a | 24 | | weighted average of no more than 60% of area median income for | 25 | | that property. | 26 | | "Maximum rent" means the maximum regular rent for 60% of |
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| 1 | | the area median income for the geographic area in which the | 2 | | multifamily building is located for multifamily programs as | 3 | | determined by the United States Department of Housing and | 4 | | Urban Development and published annually by the Illinois | 5 | | Housing Development Authority. To be eligible for the reduced | 6 | | valuation defined in this Section, maximum rents are to be | 7 | | consistent with the Illinois Housing Development Authority's | 8 | | rules; or if the owner is leasing an affordable unit to a | 9 | | household with an income at or below the maximum income limit | 10 | | who is participating in qualifying income-based rental subsidy | 11 | | program, "maximum rent" means the maximum rents allowable | 12 | | under the guidelines of the qualifying income-based rental | 13 | | subsidy program. A property may be deemed to have satisfied | 14 | | the maximum rent with a weighted average if municipal, state, | 15 | | or federal laws, ordinances, rules, or regulations requires | 16 | | the use of a weighted average of no more than 60% of area | 17 | | median income for that property. | 18 | | "Qualifying income-based rental subsidy program" means a | 19 | | Housing Choice Voucher issued by a housing authority under | 20 | | Section 8 of the United States Housing Act of 1937, a tenant | 21 | | voucher converted to a project-based voucher by a housing | 22 | | authority or any other program administered or funded by a | 23 | | housing authority, the Illinois Housing Development Authority, | 24 | | another State agency, a federal agency, or a unit of local | 25 | | government where participation is limited to households with | 26 | | incomes at or below the maximum income limits as defined in |
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| 1 | | this Section and the tenants' portion of the rent payment is | 2 | | based on a percentage of their income or a flat amount that | 3 | | does not exceed the maximum rent as defined in this Section. | 4 | | "Qualifying rehabilitation" means, at a minimum, | 5 | | compliance with local building codes and the replacement or | 6 | | renovation of at least 2 primary building systems to be | 7 | | approved for the reduced valuation under paragraph (1) of | 8 | | subsection (d) of this Section and at least 5 primary building | 9 | | systems to be approved for the reduced valuation under | 10 | | subsection (e) of this Section. Although the cost of each | 11 | | primary building system may vary, to be approved for the | 12 | | reduced valuation under paragraph (1) of subsection (d) of | 13 | | this Section, the combined expenditure for making the building | 14 | | compliant with local codes and replacing primary building | 15 | | systems must be at least $8 per square foot for work completed | 16 | | between January 1 of the year in which this amendatory Act of | 17 | | the 102nd General Assembly takes effect and December 31 of the | 18 | | year in which this amendatory Act of the 102nd General | 19 | | Assembly takes effect and, in subsequent years, $8 adjusted by | 20 | | the Consumer Price Index for All Urban Consumers, as published | 21 | | annually by the U.S. Department of Labor. To be approved for | 22 | | the reduced valuation under paragraph (2) of subsection (d) of | 23 | | this Section, the combined expenditure for making the building | 24 | | compliant with local codes and replacing primary building | 25 | | systems must be at least $12.50 per square foot for work | 26 | | completed between January 1 of the year in which this |
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| 1 | | amendatory Act of the 102nd General Assembly takes effect and | 2 | | December 31 of the year in which this amendatory Act of the | 3 | | 102nd General Assembly takes effect, and in subsequent years, | 4 | | $12.50 adjusted by the Consumer Price Index for All Urban | 5 | | Consumers, as published annually by the U.S. Department of | 6 | | Labor. To be approved for the reduced valuation under | 7 | | subsection (e) of this Section, the combined expenditure for | 8 | | making the building compliant with local codes and replacing | 9 | | primary building systems must be at least $60 per square foot | 10 | | for work completed between January 1 of the year that this | 11 | | amendatory Act of the 102nd General Assembly becomes effective | 12 | | and December 31 of the year that this amendatory Act of the | 13 | | 102nd General Assembly becomes effective and, in subsequent | 14 | | years, $60 adjusted by the Consumer Price Index for All Urban | 15 | | Consumers, as published annually by the U.S. Department of | 16 | | Labor. "Primary building systems", together with their related | 17 | | rehabilitations, specifically approved for this program are: | 18 | | (1) Electrical. All electrical work must comply with | 19 | | applicable codes; it may consist of a combination of any | 20 | | of the following alternatives: | 21 | | (A) installing individual equipment and appliance | 22 | | branch circuits as required by code (the minimum being | 23 | | a kitchen appliance branch circuit); | 24 | | (B) installing a new emergency service, including | 25 | | emergency lighting with all associated conduits and | 26 | | wiring; |
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| 1 | | (C) rewiring all existing feeder conduits ("home | 2 | | runs") from the main switchgear to apartment area | 3 | | distribution panels; | 4 | | (D) installing new in-wall conduits for | 5 | | receptacles, switches, appliances, equipment, and | 6 | | fixtures; | 7 | | (E) replacing power wiring for receptacles, | 8 | | switches, appliances, equipment, and fixtures; | 9 | | (F) installing new light fixtures throughout the | 10 | | building including closets and central areas; | 11 | | (G) replacing, adding, or doing work as necessary | 12 | | to bring all receptacles, switches, and other | 13 | | electrical devices into code compliance; | 14 | | (H) installing a new main service, including | 15 | | conduit, cables into the building, and main disconnect | 16 | | switch; and | 17 | | (I) installing new distribution panels, including | 18 | | all panel wiring, terminals, circuit breakers, and all | 19 | | other panel devices. | 20 | | (2) Heating. All heating work must comply with | 21 | | applicable codes; it may consist of a combination of any | 22 | | of the following alternatives: | 23 | | (A) installing a new system to replace one of the | 24 | | following heat distribution systems: | 25 | | (i) piping and heat radiating units, including | 26 | | new main line venting and radiator venting; or |
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| 1 | | (ii) duct work, diffusers, and cold air | 2 | | returns; or | 3 | | (iii) any other type of existing heat | 4 | | distribution and radiation/diffusion components; | 5 | | or | 6 | | (B) installing a new system to replace one of the | 7 | | following heat generating units: | 8 | | (i) hot water/steam boiler; | 9 | | (ii) gas furnace; or | 10 | | (iii) any other type of existing heat | 11 | | generating unit. | 12 | | (3) Plumbing. All plumbing work must comply with | 13 | | applicable codes. Replace all or a part of the in-wall | 14 | | supply and waste plumbing; however, main supply risers, | 15 | | waste stacks and vents, and code-conforming waste lines | 16 | | need not be replaced. | 17 | | (4) Roofing. All roofing work must comply with | 18 | | applicable codes; it may consist of either of the | 19 | | following alternatives, separately or in combination: | 20 | | (A) replacing all rotted roof decks and | 21 | | insulation; or | 22 | | (B) replacing or repairing leaking roof membranes | 23 | | (10% is the suggested minimum replacement of | 24 | | membrane); restoration of the entire roof is an | 25 | | acceptable substitute for membrane replacement. | 26 | | (5) Exterior doors and windows. Replace the exterior |
| | | SB3895 Enrolled | - 22 - | LRB102 24668 HLH 35207 b |
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| 1 | | doors and windows. Renovation of ornate entry doors is an | 2 | | acceptable substitute for replacement. | 3 | | (6) Floors, walls, and ceilings. Finishes must be | 4 | | replaced or covered over with new material. Acceptable | 5 | | replacement or covering materials are as follows: | 6 | | (A) floors must have new carpeting, vinyl tile, | 7 | | ceramic, refurbished wood finish, or a similar | 8 | | substitute; | 9 | | (B) walls must have new drywall, including joint | 10 | | taping and painting; or | 11 | | (C) new ceilings must be either drywall, suspended | 12 | | type, or a similar material. | 13 | | (7) Exterior walls. | 14 | | (A) replace loose or crumbling mortar and masonry | 15 | | with new material; | 16 | | (B) replace or paint wall siding and trim as | 17 | | needed; | 18 | | (C) bring porches and balconies to a sound | 19 | | condition; or | 20 | | (D) any combination of (A), (B), and (C). | 21 | | (8) Elevators. Where applicable, at least 4 of the | 22 | | following 7 alternatives must be accomplished: | 23 | | (A) replace or rebuild the machine room controls | 24 | | and refurbish the elevator machine (or equivalent | 25 | | mechanisms in the case of hydraulic elevators); | 26 | | (B) replace hoistway electro-mechanical items |
| | | SB3895 Enrolled | - 23 - | LRB102 24668 HLH 35207 b |
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| 1 | | including: ropes, switches, limits, buffers, levelers, | 2 | | and deflector sheaves (or equivalent mechanisms in the | 3 | | case of hydraulic elevators); | 4 | | (C) replace hoistway wiring; | 5 | | (D) replace door operators and linkage; | 6 | | (E) replace door panels at each opening; | 7 | | (F) replace hall stations, car stations, and | 8 | | signal fixtures; or | 9 | | (G) rebuild the car shell and refinish the | 10 | | interior. | 11 | | (9) Health and safety. | 12 | | (A) Install or replace fire suppression systems; | 13 | | (B) install or replace security systems; or | 14 | | (C) environmental remediation of lead-based paint, | 15 | | asbestos, leaking underground storage tanks, or radon. | 16 | | (10) Energy conservation improvements undertaken to | 17 | | limit the amount of solar energy absorbed by a building's | 18 | | roof or to reduce energy use for the property, including, | 19 | | but not limited to, any of the following activities: | 20 | | (A) installing or replacing reflective roof | 21 | | coatings (flat roofs); | 22 | | (B) installing or replacing R-49 roof insulation; | 23 | | (C) installing or replacing R-19 perimeter wall | 24 | | insulation; | 25 | | (D) installing or replacing insulated entry doors; | 26 | | (E) installing or replacing Low E, insulated |
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| 1 | | windows; | 2 | | (F) installing or replacing WaterSense labeled | 3 | | plumbing fixtures; | 4 | | (G) installing or replacing 90% or better sealed | 5 | | combustion heating systems; | 6 | | (H) installing Energy Star hot water heaters; | 7 | | (I) installing or replacing mechanical ventilation | 8 | | to exterior for kitchens and baths; | 9 | | (J) installing or replacing Energy Star | 10 | | appliances; | 11 | | (K) installing or replacing Energy Star certified | 12 | | lighting in common areas; or | 13 | | (L) installing or replacing grading and | 14 | | landscaping to promote on-site water retention if the | 15 | | retained water is used to replace water that is | 16 | | provided from a municipal source. | 17 | | (11) Accessibility improvements. All accessibility | 18 | | improvements must comply with applicable codes. An owner | 19 | | may make accessibility improvements to residential real | 20 | | property to increase access for people with disabilities. | 21 | | As used in this paragraph (11), "disability" has the | 22 | | meaning given to that term in the Illinois Human Rights | 23 | | Act. As used in this paragraph (11), "accessibility | 24 | | improvements" means a home modification listed under the | 25 | | Home Services Program administered by the Department of | 26 | | Human Services (Part 686 of Title 89 of the Illinois |
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| 1 | | Administrative Code) including, but not limited to: | 2 | | installation of ramps, grab bars, or wheelchair lifts; | 3 | | widening doorways or hallways; re-configuring rooms and | 4 | | closets; and any other changes to enhance the independence | 5 | | of people with disabilities. | 6 | | (12) Any applicant who has purchased the property in | 7 | | an arm's length transaction not more than 90 days before | 8 | | applying for this reduced valuation may use the cost of | 9 | | rehabilitation or repairs required by documented code | 10 | | violations, up to a maximum of $2 per square foot, to meet | 11 | | the qualifying rehabilitation requirements.
| 12 | | (Source: P.A. 102-175, eff. 7-29-21.)
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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