Full Text of SB2329 93rd General Assembly
SB2329enr 93RD GENERAL ASSEMBLY
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| AN ACT in relation to housing.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Federally Subsidized Housing Preservation | 5 |
| Act is amended by
changing Sections 1, 3, 4, 5, 6, 7, 8, and | 6 |
| 10.1 as follows:
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| (310 ILCS 60/1) (from Ch. 67 1/2, par. 1151)
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| Sec. 1. Short title. This Act shall be known and may be | 9 |
| cited as
the Federally Assisted
Subsidized Housing | 10 |
| Preservation Act.
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| (Source: P.A. 86-810.)
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| (310 ILCS 60/3) (from Ch. 67 1/2, par. 1153)
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| Sec. 3. Definitions. As used in this Act:
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| (a) "IHDA" means the Illinois Housing Development | 15 |
| Authority.
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| (b) (Blank).
"FmHA" means the Farmers Home Administration | 17 |
| or a local
housing
authority administering an FmHA program.
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| (c) (Blank).
"HUD" means the United States Department of | 19 |
| Housing and
Urban
Development, or the Federal Housing | 20 |
| Administration or a local housing
authority administering a HUD | 21 |
| program.
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| (d) "Owner" means the person, partnership, or corporation | 23 |
| that
holds title to an assisted housing development
is a
party | 24 |
| to a contract with HUD or FmHA providing for a mortgage, | 25 |
| mortgage
assistance, mortgage insurance, or rent subsidy; or | 26 |
| any spouse, employee,
agent, partner, master lessee, business | 27 |
| affiliate or associate, or
successor in interest of such | 28 |
| person, partnership or corporation, that
receives or demands | 29 |
| rent for the subsidized housing .
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| (e) "Assisted housing" or "assisted housing development" | 31 |
| means a rental
housing
development, or a mixed use development |
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| that includes rental housing, that receives government | 2 |
| assistance under any of the following
programs:
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| (1) New construction, substantial rehabilitation, | 4 |
| moderate
rehabilitation, property disposition and loan | 5 |
| management set-aside programs, or
any other program | 6 |
| providing project-based
rental assistance, under Section 8 | 7 |
| of the United States Housing
Act of 1937, as amended.
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| (2) The Below-Market-Interest-Rate Program under | 9 |
| Section
221(d)(3) of the National Housing Act.
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| (3) Section 236 of the National Housing Act.
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| (4) Section 202 of the National Housing Act.
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| (5) Programs for rent supplement assistance under | 13 |
| Section
101 of the Housing and Urban Development Act of | 14 |
| 1965, as amended.
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| (6) Programs under Section 514 or 515 of the Housing | 16 |
| Act of
1949.
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| (7) Section 42 of the Internal Revenue Code.
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| "Subsidized housing" means any housing or unit of housing | 19 |
| financed
by a loan or mortgage insured or held by HUD as | 20 |
| follows:
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| (1) insured or held by HUD under Section 221(d)(3) of the | 22 |
| National
Housing Act and assisted under Section 101 of the | 23 |
| Housing and Urban
Development Act of 1965 or Section 8 of the | 24 |
| United States Housing Act of 1937;
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| (2) insured or held by HUD and bears interest at a rate | 26 |
| determined under
the proviso of Section 221(d)(3) of the | 27 |
| National Housing Act;
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| (3) insured, assisted or held by HUD under Section 236 of | 29 |
| the National
Housing Act;
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| (4) insured or held by HUD under Section 514 or 515 of the | 31 |
| Housing Act of
1949; or
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| (5) held by HUD and formerly insured under a program listed | 33 |
| in this
subsection (e).
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| (f) "Tenant" means a tenant, subtenant, lessee, sublessee | 35 |
| or other
person entitled to possession, occupancy or benefits | 36 |
| of a rental unit
within the assisted
subsidized housing.
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| (g) "Tenant Association" means an association, corporation | 2 |
| or other
organization that represents at least a majority of | 3 |
| the tenants in the
assisted
subsidized housing building.
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| (h) "Prepayment" means the payment in full or refinancing | 5 |
| of the
federally insured or federally held mortgage | 6 |
| indebtedness prior to its
original maturity date, or the | 7 |
| voluntary cancellation of mortgage
insurance, on an assisted | 8 |
| housing development described in paragraph
(2), (3), or (4) of | 9 |
| subsection (e) that would have the effect of
removing the | 10 |
| affordability restrictions applicable to the assisted housing | 11 |
| development under the programs described in paragraph (2), (3), | 12 |
| or (4) of subsection (e).
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| (i) "Termination" means: | 14 |
| (1) the expiration or early termination of an assisted | 15 |
| housing development's participation in a federal subsidy | 16 |
| program for assisted housing described in paragraph (1) of | 17 |
| subsection (e), or | 18 |
| (2) the expiration or early termination of an assisted | 19 |
| housing development's affordability restrictions described | 20 |
| in Section 42(g) of the Internal Revenue Code for assisted | 21 |
| housing described in paragraph (7) of subsection (e),
when | 22 |
| that event results in an increase in tenant rents, a change | 23 |
| in the form of subsidy from project-based to tenant-based, | 24 |
| or a change in use of the assisted housing development to a | 25 |
| use other than rental housing.
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| (j) "Affected public entities" means: the mayor of the city | 27 |
| in
which the assisted housing development is located or, if the
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| development is located in an unincorporated area, the | 29 |
| chairperson of
the county board; the public
housing authority | 30 |
| in whose jurisdiction the assisted housing development is | 31 |
| located, if any; and IHDA.
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| (k) "Affordability restrictions" means limits on rents | 33 |
| that owners may charge for occupancy of a rental unit in | 34 |
| assisted housing and limits on tenant income for persons or | 35 |
| families seeking to qualify as tenants in assisted housing.
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| (Source: P.A. 86-810.)
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| (310 ILCS 60/4) (from Ch. 67 1/2, par. 1154)
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| Sec. 4. Notice of intent to sell.
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| (a) An owner may not sell or otherwise dispose of
assisted
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| subsidized housing , complete prepayment, or complete a | 5 |
| termination
unless, not less than 12
6 months before the | 6 |
| prepayment, termination, sale , or
disposal, the owner submits | 7 |
| to all tenants of the assisted
subsidized
housing and to all | 8 |
| affected public entities
IHDA a notice of intent to
complete | 9 |
| prepayment, complete termination, sell , or otherwise dispose
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| of the property.
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| (a-5) Every notice required under subsection (a) must | 12 |
| include the address
of
the
assisted housing, characteristics of | 13 |
| the property including the number of
units, and the
names and | 14 |
| addresses of the owners. The notice must also include the date | 15 |
| on
which
the
owner intends to sell, lease, complete prepayment, | 16 |
| complete termination, or otherwise dispose of the property, as | 17 |
| well as a detailed list of affordability restrictions | 18 |
| applicable to the property.
IHDA shall adopt rules concerning | 19 |
| the content, format, delivery, and
publication of such
notices.
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| (b) Within 60 days after the date of the owner's notice | 21 |
| pursuant to
subsection (a), the tenants may notify the owner | 22 |
| that they have formed a
Tenant Association meeting the | 23 |
| requirements of this Act and shall designate
the name of its | 24 |
| representative or representatives in the notice.
The Tenant | 25 |
| Association may enter into an agreement with a not-for-profit
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| corporation or private purchaser in which the not-for-profit
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| corporation or private purchaser agrees to represent the | 28 |
| residents and
maintain the development in a manner that | 29 |
| preserves the housing development's
existing affordability | 30 |
| restrictions or that would qualify the housing development as | 31 |
| affordable housing as defined in the Illinois Affordable | 32 |
| Housing Act. The agreement must set forth the minimum length of | 33 |
| time that the affordability restrictions will be in effect. The | 34 |
| Tenant Association and individual tenants in the assisted | 35 |
| housing shall each have the right to bring an action for |
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| specific performance or other injunctive relief for | 2 |
| enforcement of the agreement, and the agreement must contain | 3 |
| provisions to this effect along with such other remedies for | 4 |
| breach as the Tenant Association and the not-for-profit | 5 |
| corporation or private purchaser may agree. Once such an | 6 |
| agreement is entered into, the
not-for-profit corporation or | 7 |
| private purchaser shall assume all rights and
responsibilities | 8 |
| attributed to the Tenant Association under this Act.
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| (Source: P.A. 86-810; 86-1352.)
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| (310 ILCS 60/5) (from Ch. 67 1/2, par. 1155)
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| Sec. 5. Offer for sale to Tenant Association. Within 60 | 12 |
| days after the
Tenant Association has complied with the
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| requirements of Section 4, the owner shall, before selling, | 14 |
| leasing , completing prepayment, completing termination, or
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| otherwise disposing of the
property, provide to the Tenant | 16 |
| Association a
bona fide offer for sale of the property which | 17 |
| shall contain the essential
terms of the sale, including, at a | 18 |
| minimum, the following: the
sales price; the terms of seller | 19 |
| financing, if any, including the amount,
the interest rate, and | 20 |
| amortization rate thereof; the terms of assumable
financing, if | 21 |
| any, including the amount, the interest rate, and the
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| amortization rate thereof; and proposed improvements, if any, | 23 |
| to the
property to be made by the owner in connection with the | 24 |
| sale.
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| (Source: P.A. 86-810.)
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| (310 ILCS 60/6) (from Ch. 67 1/2, par. 1156)
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| Sec. 6. Notice of intent to purchase.
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| (a) The Tenant Association shall
notify the owner in | 29 |
| writing, within 90
30 days after the receipt of the
bona
fide | 30 |
| offer of sale, of its intent to purchase the assisted
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| subsidized
housing.
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| (b) The owner shall, after receiving a notice pursuant to | 33 |
| subsection
(a), comply with any reasonable request to make | 34 |
| documents available to the
Tenant Association, during normal |
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| business hours at the owner's principal place
of
business | 2 |
| within 15 days of receiving such a request, including but not | 3 |
| limited
to: a
floor plan of the development; itemized lists of | 4 |
| monthly operating
expenses, capital expenditures in each of the | 5 |
| 2 preceding calendar years
and deferred maintenance costs; the | 6 |
| amount of project reserves; utility
consumption rates; copies | 7 |
| of financial and physical inspection reports filed
with | 8 |
| federal, State or local agencies; the most recent rent roll; a | 9 |
| list of
tenants; a list of vacant units; and a statement of the | 10 |
| vacancy rate at the
development for each of the 2 preceding | 11 |
| calendar years.
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| (Source: P.A. 86-810.)
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| (310 ILCS 60/7) (from Ch. 67 1/2, par. 1157)
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| Sec. 7. Bona fide offer to purchase; contract.
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| (a) The Tenant Association shall, within 90 days after it
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| notifies the owner of its intent to purchase, provide the owner | 17 |
| with a bona
fide offer to purchase evidenced by a purchase | 18 |
| contract reflecting a sales
price and terms agreed to by the | 19 |
| parties or the sales price and terms
determined pursuant to | 20 |
| subsection (b) of this Section and an earnest
money deposit | 21 |
| equal to 5% of the bona fide offer to purchase.
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| (b) If the parties are unable to agree to a sales price | 23 |
| within the first
60 days of the 90 day period specified in | 24 |
| subsection (a), the sale price of
the assisted
subsidized
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| housing shall be based upon its fair market
value , based on its | 26 |
| highest and best use, without affordability restrictions, as
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| determined by 2 independent appraisers qualified to perform | 28 |
| multi-family
housing appraisals. One appraiser shall be | 29 |
| selected and paid by the owner
and the other shall be selected | 30 |
| and paid by the Tenant Association. If the
appraisers fail to | 31 |
| agree upon a fair market value, the owner and the
Tenant | 32 |
| Association shall either jointly select and pay a third | 33 |
| appraiser whose
appraisal shall be binding, or agree to take an | 34 |
| average of
the 2 appraisals. All appraisers shall be MAI | 35 |
| certified. The
determination of the sales price pursuant to |
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| this subsection shall be
completed within the 90 day period | 2 |
| specified in subsection (a) of this Section.
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| (c) The Tenant Association shall agree to close on the sale | 4 |
| within 90
days from the date the parties sign the contract to | 5 |
| purchase.
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| (Source: P.A. 86-810; 86-1352.)
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| (310 ILCS 60/8) (from Ch. 67 1/2, par. 1158)
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| Sec. 8. The provisions of this Act shall not apply to any | 9 |
| of the
following: a government taking by eminent domain or | 10 |
| negotiated purchase; a
forced sale pursuant to a foreclosure; | 11 |
| or a transfer by gift, devise or operation of law ; or an | 12 |
| owner's sale or other disposition of assisted housing in a | 13 |
| manner pursuant to which the property after the sale or other | 14 |
| disposition continues to be assisted housing as defined in this | 15 |
| Act .
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| (Source: P.A. 86-810.)
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| (310 ILCS 60/10.1) (from Ch. 67 1/2, par. 1160.1)
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| Sec. 10.1. Civil action against owner. The Tenant | 19 |
| Association, or one
or
more tenants in the
assisted
subsidized
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| housing, may bring a civil action against an owner
who has
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| violated this Act. An owner found to have violated any | 22 |
| provision of this
Act shall, in addition to any other damages, | 23 |
| pay a civil penalty to each
tenant in the assisted
subsidized
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| housing in the amount of $500 per
tenant, and
shall also pay | 25 |
| the attorney's fees and costs incurred in bringing the action.
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| (Source: P.A. 86-810; 86-1352)
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| Section 99. Effective date. This Act takes effect upon | 28 |
| becoming law. |
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