Full Text of HB4657 103rd General Assembly
HB4657 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB4657 Introduced 2/6/2024, by Rep. Margaret Croke SYNOPSIS AS INTRODUCED: | | | Amends the Property Tax Code. Provides that provisions creating a housing opportunity abatement program apply through tax year 2034 (currently, 2024). Effective immediately. |
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| | A BILL FOR |
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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 18-173 as follows: | 6 | | (35 ILCS 200/18-173) | 7 | | Sec. 18-173. Housing opportunity area abatement program. | 8 | | (a) For the purpose of promoting access to housing near | 9 | | work and in order to promote economic diversity throughout | 10 | | Illinois and to alleviate the concentration of low-income | 11 | | households in areas of high poverty, a housing opportunity | 12 | | area tax abatement program is created. | 13 | | (b) As used in this Section: | 14 | | "Housing authority" means either a housing authority | 15 | | created under the Housing Authorities Act or other government | 16 | | agency that is authorized by the United States government | 17 | | under the United States Housing Act of 1937 to administer a | 18 | | housing choice voucher program, or the authorized agent of | 19 | | such a housing authority that is authorized to act upon that | 20 | | authority's behalf. | 21 | | "Housing choice voucher" means a tenant voucher issued by | 22 | | a housing authority under Section 8 of the United States | 23 | | Housing Act of 1937 and a tenant voucher converted to a |
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| 1 | | project-based voucher by a housing authority. | 2 | | "Housing opportunity area" means a census tract where less | 3 | | than 10% of the residents live below the poverty level, as | 4 | | defined by the United States government and determined by the | 5 | | most recent United States census, that is located within a | 6 | | qualified township, except for census tracts located within | 7 | | any township that is located wholly within a municipality with | 8 | | 1,000,000 or more inhabitants. A census tract that is located | 9 | | within a township that is located wholly within a municipality | 10 | | with 1,000,000 or more inhabitants is considered a housing | 11 | | opportunity area if less than 12% of the residents of the | 12 | | census tract live below the poverty level. | 13 | | "Housing opportunity unit" means a dwelling unit located | 14 | | in residential property that is located in a housing | 15 | | opportunity area, that is owned by the applicant, and that is | 16 | | rented to and occupied by a tenant who is participating in a | 17 | | housing choice voucher program administered by a housing | 18 | | authority as of January 1st of the tax year for which the | 19 | | application is made. | 20 | | "Qualified units" means the number of housing opportunity | 21 | | units located in the property with the limitation that no more | 22 | | than 2 units or 20% of the total units contained within the | 23 | | property, whichever is greater, may be considered qualified | 24 | | units. Further, no unit may be considered qualified unless the | 25 | | property in which it is contained is in substantial compliance | 26 | | with local building codes, and, moreover, no unit may be |
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| 1 | | considered qualified unless it meets the United States | 2 | | Department of Housing and Urban Development's housing quality | 3 | | standards as of the most recent housing authority inspection. | 4 | | "Qualified township" means a township located within a | 5 | | county with 200,000 or more inhabitants whose tax capacity | 6 | | exceeds 80% of the average tax capacity of the county in which | 7 | | it is located, except for townships located within a county | 8 | | with 3,000,000 or more inhabitants, where a qualified township | 9 | | means a township whose tax capacity exceeds 115% of the | 10 | | average tax capacity of the county except for townships | 11 | | located wholly within a municipality with 1,000,000 or more | 12 | | inhabitants. All townships located wholly within a | 13 | | municipality with 1,000,000 or more inhabitants are considered | 14 | | qualified townships. | 15 | | "Tax capacity" means the equalized assessed value of all | 16 | | taxable real estate located within a township or county | 17 | | divided by the total population of that township or county. | 18 | | (c) The owner of property located within a housing | 19 | | opportunity area who has a housing choice voucher contract | 20 | | with a housing authority may apply for a housing opportunity | 21 | | area tax abatement by annually submitting an application to | 22 | | the housing authority that administers the housing choice | 23 | | voucher contract. The application must include the number of | 24 | | housing opportunity units as well as the total number of | 25 | | dwelling units contained within the property. The owner must, | 26 | | under oath, self-certify as to the total number of dwelling |
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| 1 | | units in the property and must self-certify that the property | 2 | | is in substantial compliance with local building codes. The | 3 | | housing authority shall annually determine the number of | 4 | | qualified units located within each property for which an | 5 | | application is made. | 6 | | The housing authority shall establish rules and procedures | 7 | | governing the application processes and may charge an | 8 | | application fee. The county clerk may audit the applications | 9 | | to determine that the properties subject to the tax abatement | 10 | | meet the requirements of this Section. The determination of | 11 | | eligibility of a property for the housing opportunity area | 12 | | abatement shall be made annually; however, no property may | 13 | | receive an abatement for more than 10 tax years. | 14 | | (d) The housing authority shall determine housing | 15 | | opportunity areas within its service area and annually deliver | 16 | | to the county clerk, in a manner determined by the county | 17 | | clerk, a list of all properties containing qualified units | 18 | | within that service area by December 31st of the tax year for | 19 | | which the property is eligible for abatement; the list shall | 20 | | include the number of qualified units and the total number of | 21 | | dwelling units for each property. | 22 | | The county clerk shall deliver annually to a housing | 23 | | authority, upon that housing authority's request, the most | 24 | | recent available equalized assessed value for the county as a | 25 | | whole and for those taxing districts and townships so | 26 | | specified by the requesting housing authority. |
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| 1 | | (e) The county clerk shall abate the tax attributed to a | 2 | | portion of the property determined to be eligible for a | 3 | | housing opportunity area abatement. The portion eligible for | 4 | | abatement shall be determined by reducing the equalized | 5 | | assessment value by a percentage calculated using the | 6 | | following formula: 19% of the equalized assessed value of the | 7 | | property multiplied by a fraction where the numerator is the | 8 | | number of qualified units and denominator is the total number | 9 | | of dwelling units located within the property. | 10 | | (f) Any municipality, except for municipalities with | 11 | | 1,000,000 or more inhabitants, may annually petition the | 12 | | county clerk to be excluded from a housing opportunity area if | 13 | | it is able to demonstrate that more than 2.5% of the total | 14 | | residential units located within that municipality are | 15 | | occupied by tenants under the housing choice voucher program. | 16 | | Properties located within an excluded municipality shall not | 17 | | be eligible for the housing opportunity area abatement for the | 18 | | tax year in which the petition is made. | 19 | | (g) Applicability. This Section applies to tax years 2004 | 20 | | through 2034 2024 , unless extended by law. | 21 | | (Source: P.A. 98-957, eff. 8-15-14.) | 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law. |
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