Full Text of SB3147 98th General Assembly
SB3147enr 98TH 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 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 area | 12 | | 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
under | 17 | | the United States Housing Act of 1937 to administer a housing | 18 | | choice
voucher
program, or the authorized agent of such a | 19 | | housing authority that is authorized
to
act upon that | 20 | | authority's behalf.
| 21 | | "Housing choice voucher" means a tenant voucher issued by a | 22 | | housing authority
under Section 8 of the United States Housing | 23 | | Act of 1937 and a tenant voucher converted to a project-based |
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| 1 | | 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 any | 7 | | 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 in | 14 | | residential
property that is located in a housing opportunity | 15 | | area, that is owned by
the applicant, and that is rented to and | 16 | | occupied by a tenant who is
participating in
a housing choice | 17 | | voucher program administered by a housing authority as of
| 18 | | January 1st of the tax year for which the application is made.
| 19 | | "Qualified units" means the number of housing opportunity | 20 | | units located in
the property with the limitation that no more | 21 | | than 2 units or 20% of
the total units contained within the | 22 | | property, whichever is greater, may be
considered qualified | 23 | | units. Further, no unit may be considered qualified unless
the | 24 | | property in which it is contained is in substantial compliance | 25 | | with local
building codes, and, moreover, no unit may be | 26 | | considered qualified unless it
meets the United States |
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| 1 | | Department of Housing and Urban Development's housing
quality
| 2 | | standards as of the most recent housing authority inspection.
| 3 | | "Qualified township" means a township located within a | 4 | | county with 200,000 or
more inhabitants whose tax capacity | 5 | | exceeds 80% of the average tax capacity of
the county in which | 6 | | it is located, except for townships located within a county
| 7 | | with 3,000,000 or more inhabitants, where a qualified township | 8 | | means a township
whose tax capacity exceeds 115% of the average | 9 | | tax capacity of the county
except for townships located wholly | 10 | | within a municipality with 1,000,000 or
more inhabitants. All | 11 | | townships located wholly within a municipality with
1,000,000 | 12 | | or more inhabitants are considered qualified townships.
| 13 | | "Tax capacity" means the equalized assessed value of all | 14 | | taxable real estate
located within a township or county divided | 15 | | by the total population of that
township or county.
| 16 | | (c) The owner of property located within a housing | 17 | | opportunity area who has
a housing choice voucher contract with | 18 | | a housing authority may apply for a
housing opportunity area | 19 | | tax abatement by annually submitting an application to
the | 20 | | housing authority that administers the housing choice voucher | 21 | | contract. The
application must include the number of housing | 22 | | opportunity units as well as the
total number of dwelling units | 23 | | contained within the property. The owner must,
under oath, | 24 | | self-certify as to the total number of dwelling units in the
| 25 | | property and must self-certify that the property is in | 26 | | substantial compliance
with local building codes. The housing
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| 1 | | authority shall annually determine the number of qualified | 2 | | units located within
each property for which an application is | 3 | | made.
| 4 | | The housing authority shall establish rules and procedures | 5 | | governing the
application processes and may charge an | 6 | | application fee. The county clerk may
audit the
applications to | 7 | | determine that the properties subject
to the tax abatement meet | 8 | | the requirements of this Section. The
determination of | 9 | | eligibility of a property for the housing opportunity area
| 10 | | abatement shall be
made annually; however, no property may | 11 | | receive an abatement for more than 10
tax years.
| 12 | | (d) The housing authority shall determine housing | 13 | | opportunity areas within
its service area and annually deliver | 14 | | to the county clerk, in a manner
determined by the county | 15 | | clerk, a list of all properties containing qualified
units | 16 | | within that service area by December 31st of the tax year for | 17 | | which the
property is eligible for abatement; the list shall | 18 | | include the number of
qualified units and the total number of | 19 | | dwelling units for each property.
| 20 | | The county clerk shall deliver annually to a housing | 21 | | authority, upon
that housing authority's request, the most | 22 | | recent available equalized assessed
value for the county as a | 23 | | whole and for those taxing districts and townships so
specified | 24 | | by the requesting housing authority.
| 25 | | (e) The county clerk shall abate the tax attributed to a | 26 | | portion of the
property determined to be eligible for a housing |
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| 1 | | opportunity area abatement.
The portion eligible for abatement | 2 | | shall be determined by reducing the
equalized assessment value | 3 | | by a percentage calculated using the following
formula: 19% of | 4 | | the equalized assessed value of the property
multiplied by a | 5 | | fraction where the numerator is the number of
qualified units | 6 | | and denominator is the total number of dwelling units
located | 7 | | within the property.
| 8 | | (f) Any municipality, except for municipalities with | 9 | | 1,000,000 or more
inhabitants, may annually petition the county | 10 | | clerk
to be excluded from a housing opportunity area if it is | 11 | | able to demonstrate
that more than 2.5% of the total | 12 | | residential units located within that
municipality are | 13 | | occupied by tenants under the housing choice voucher program.
| 14 | | Properties located within an excluded municipality shall not be | 15 | | eligible for
the housing opportunity area abatement for the tax | 16 | | year in which the petition
is made.
| 17 | | (g) Applicability. This Section applies to tax years 2004 | 18 | | through 2024
2014 , unless extended by law.
| 19 | | (Source: P.A. 96-685, eff. 8-25-09.)
| 20 | | Section 99. Effective date. This Act takes effect upon | 21 | | becoming law.
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