Full Text of HB3965 102nd General Assembly
HB3965 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB3965 Introduced 2/22/2021, by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Provides that each county shall implement a special assessment program to reduce the equalized
value for affordable rental housing construction or rehabilitation. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | 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 adding | 5 | | Section 15-178 as follows: | 6 | | (35 ILCS 200/15-178 new) | 7 | | Sec. 15-178. Reduction in assessed value for affordable | 8 | | rental housing construction or rehabilitation. | 9 | | (a) The General Assembly finds that: | 10 | | (1) there is a shortage of high quality affordable | 11 | | rental homes for low-income and very low-income households | 12 | | in Illinois; | 13 | | (2) owners and developers of rental housing face | 14 | | significant challenges building newly-constructed | 15 | | apartments or undertaking rehabilitation of existing | 16 | | properties that result in rents that are affordable for | 17 | | low-income and very low-income households; and | 18 | | (3) developing a Statewide policy to determine the | 19 | | assessed value for newly-constructed and rehabilitated | 20 | | affordable rental housing that both encourages investment | 21 | | and incentivizes property owners to keep rents affordable | 22 | | will help Cook County and other parts of Illinois address | 23 | | the extreme shortage of affordable housing. |
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| 1 | | (b) Each county shall implement a special assessment | 2 | | program to reduce the equalized
value of all eligible | 3 | | newly-constructed residential real property, qualified | 4 | | substantial rehabilitation to all eligible existing | 5 | | residential real property, or qualified moderate | 6 | | rehabilitation to existing residential real property in | 7 | | accordance with this Section. Any county with less than | 8 | | 3,000,000 inhabitants may opt-out of this special assessment | 9 | | program upon passage of an ordinance by a majority vote of the | 10 | | county board. If a county with less than 3,000,000 inhabitants | 11 | | chooses to opt-out of this special assessment program, that | 12 | | county may subsequently implement this special assessment | 13 | | program upon passage of an ordinance by a majority vote of the | 14 | | county board. Property is eligible for the program if and only | 15 | | if all of the following factors have been met: | 16 | | (1) at the conclusion of the new construction or | 17 | | rehabilitation, the property will consist of a | 18 | | newly-constructed multifamily building containing 7 or | 19 | | more rental dwelling units or an existing multifamily | 20 | | building that has undergone a qualifying substantial | 21 | | rehabilitation or a qualifying moderate rehabilitation | 22 | | containing 7 or more rental dwelling units; | 23 | | (2) for incentives under subsection (c) or (d), the | 24 | | property exercises a waitlist preference for veterans for | 25 | | a minimum
of 10% of total development units; for the | 26 | | purposes of this paragraph (2), a waitlist preference |
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| 1 | | means that, if there is a veteran on the property | 2 | | waitlist, the veteran's application shall be considered | 3 | | before any non-veteran applicant; if there is not a | 4 | | veteran on the property waitlist, the unit may be filled | 5 | | with a qualified applicant who is not a veteran; if 10% of | 6 | | a property's units are occupied by veterans, the property | 7 | | will not be required to exercise the preference until | 8 | | veteran occupancy drops below the 10% minimum, though | 9 | | properties may elect to apply the preference for more than | 10 | | 10% of units; | 11 | | (3) for incentives under subsection (c) or (d), except | 12 | | as defined in subparagraphs (D), (E), and (F) of paragraph | 13 | | (4) of subsection (f) of this Section, prior to the | 14 | | newly-constructed residential real property or substantial | 15 | | rehabilitation to existing residential real property being | 16 | | put in service, the owner of the residential real property | 17 | | commits that, for a period of 30 years after the | 18 | | newly-constructed residential real property or | 19 | | rehabilitation to existing residential real property is | 20 | | put in service, at least 20% of the multifamily building's | 21 | | units will have rents as defined in this Section that are | 22 | | at or below maximum rents and are occupied by households | 23 | | with household incomes at or below maximum income limits; | 24 | | (4) for incentives under subsection (e), except as | 25 | | defined in subparagraphs (D), (E), and (F) of paragraph | 26 | | (4) of subsection (f) of this Section, the owner of the |
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| 1 | | residential real property makes commitments with respect | 2 | | to maximum rents and household incomes as provided in | 3 | | subsection (e); and | 4 | | (5) the property meets the application requirements | 5 | | set forth in this Section. | 6 | | (c) For new construction and substantial rehabilitation, | 7 | | the incentives shall be calculated as follows: | 8 | | (1) during the construction period, the property is | 9 | | entitled to a reduction in its equalized assessed value in | 10 | | an amount equal to the difference between the equalized | 11 | | assessed value in the year for which the incentive is | 12 | | sought and the equalized assessed value for the property | 13 | | in the base year; | 14 | | (2) for the first through tenth taxable years after | 15 | | the property or improvements are placed in service, the | 16 | | property is entitled to a reduction in its equalized | 17 | | assessed value in an amount equal to 50% of the difference | 18 | | between the equalized assessed value in the year for which | 19 | | the incentive is sought and the equalized assessed value | 20 | | for the property in the base year; | 21 | | (3) except as provided in subsection (d), for the | 22 | | eleventh through twentieth taxable years after the | 23 | | property or improvements are placed in service, the | 24 | | property is entitled to a reduction in its equalized | 25 | | assessed value in an amount equal to 40% of the difference | 26 | | between the equalized assessed value in the year for which |
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| 1 | | the incentive is sought and the equalized assessed value | 2 | | for the property in the base year; and | 3 | | (4) for the twenty-first through thirtieth taxable | 4 | | years after the property or improvements are placed in | 5 | | service, the property is entitled to a reduction in its | 6 | | equalized assessed value in an amount equal to 30% of the | 7 | | difference between the equalized assessed value in the | 8 | | year for which the incentive is sought and the equalized | 9 | | assessed value for the property in the base year. | 10 | | (d) New construction or qualified substantial | 11 | | rehabilitation that meets 35% blended participation of | 12 | | certified disadvantaged business enterprises and certified | 13 | | underrepresented business enterprises owned by minorities, | 14 | | women, veterans, LGBT, and persons with disabilities during | 15 | | construction is entitled to a reduction in equalized assessed | 16 | | value in an amount equal to 50% of the difference between the | 17 | | equalized assessed value in the year for which the incentive | 18 | | is sought and the equalized assessed value for the property in | 19 | | the base year for the eleventh through twentieth taxable years | 20 | | after the property or improvements are placed in service.
For | 21 | | the purposes of this subsection (d), the chief county | 22 | | assessment officer shall require all contractors and | 23 | | subcontractors to comply with the requirements of Section | 24 | | 30-22 of the Illinois Procurement Code as they apply to | 25 | | responsible bidders and present satisfactory evidence of | 26 | | compliance to the chief county assessment officer. For those |
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| 1 | | seeking certification by the Department of Central Management | 2 | | Services under this subsection, the Department of Central | 3 | | Management Services shall require the contractor to provide | 4 | | evidence of a fully executed project labor agreement with the | 5 | | applicable local building trades council. | 6 | | (e) For qualified moderate rehabilitation, the amount of | 7 | | the reduction shall be calculated as follows: | 8 | | (1) if the owner of the residential real property | 9 | | commits for a period of at least 10 years that at least 15% | 10 | | but fewer than 35% of the multifamily building's units | 11 | | have rents at or below maximum rents and are occupied by | 12 | | households with household incomes at or below maximum | 13 | | income limits, the assessed value of the property used to | 14 | | calculate the tax bill shall be reduced by an amount equal | 15 | | to 25% of the assessed value of the property as initially | 16 | | determined by the assessor for the property in the current | 17 | | taxable year for the newly-constructed residential real | 18 | | property or based on the improvements to an existing | 19 | | residential real property; and | 20 | | (2) if the owner of the residential real property | 21 | | commits for a period of at least 10 years that at least 35% | 22 | | of the multifamily building's units have rents at or below | 23 | | maximum rents and are occupied by households with | 24 | | household incomes at or below maximum income limits, the | 25 | | equalized assessed value of the property used to calculate | 26 | | the tax bill shall be reduced by an amount equal to 35% of |
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| 1 | | the assessed value of the property as initially determined | 2 | | by the assessor for the property in the current assessment | 3 | | year for the newly constructed residential real property | 4 | | or based on the improvements to an existing residential | 5 | | real property. | 6 | | (e) Property receiving a reduction outlined in this | 7 | | subsection (e) shall be eligible for an initial reduction | 8 | | period of up to 10 years, which shall be extended for up to 2 | 9 | | additional 10-year periods if the property continues to meet | 10 | | the requirements of this subsection (e). | 11 | | (f) Application requirements. | 12 | | (1) In order to receive benefits under this Section, | 13 | | the owner must submit the following information to the | 14 | | chief county assessment officer for review in the form | 15 | | required by the chief county assessment officer: | 16 | | (A) the owner's name; | 17 | | (B) the postal address and permanent index number | 18 | | of the parcel; | 19 | | | 20 | | (C) a deed or other instrument conveying the | 21 | | parcel to the current owner; | 22 | | (D) written evidence that the new construction, | 23 | | qualifying substantial rehabilitation, or qualifying | 24 | | moderate rehabilitation has been completed with | 25 | | respect to the residential real property, including, | 26 | | but not limited to, copies of building permits, a |
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| 1 | | notarized contractor's sworn affidavit, and | 2 | | photographs of the interior and exterior of the | 3 | | building after new construction or substantial | 4 | | rehabilitation is completed; | 5 | | (E) written evidence that the residential real | 6 | | property meets local building codes, or, if there are | 7 | | no local building codes, Housing Quality Standards, as | 8 | | determined by the United States Department of Housing | 9 | | and Urban Development; | 10 | | (F) a list identifying the affordable units in the | 11 | | residential real property and a written statement that | 12 | | the affordable units are comparable to the market rate | 13 | | units in terms of unit type, number of bedrooms per | 14 | | unit, quality of exterior appearance, energy | 15 | | efficiency, and overall quality of construction; | 16 | | (G) a written schedule certifying the rents in | 17 | | each affordable unit and a written statement that | 18 | | these rents do not exceed the maximum rents allowable | 19 | | for the area in which the residential real property is | 20 | | located; | 21 | | (H) documentation from the administering agency | 22 | | verifying the owner's participation in a qualifying | 23 | | income-based rental subsidy program as defined in | 24 | | subsection (d) of this Section if units receiving | 25 | | rental subsidies are to be counted among the | 26 | | affordable units in order to meet the thresholds |
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| 1 | | defined in this Section; | 2 | | (I) a written statement identifying the household | 3 | | income for every household occupying an affordable | 4 | | unit and certifying that the household income does not | 5 | | exceed the maximum income limits allowable for the | 6 | | area in which the residential real property is | 7 | | located; | 8 | | (J) a written statement that the owner has | 9 | | verified and retained documentation of household | 10 | | income for every household occupying an affordable | 11 | | unit; and | 12 | | (K) any additional information as reasonably | 13 | | required by the chief county assessment officer, | 14 | | including, but not limited to, any information | 15 | | necessary to ensure compliance with applicable local | 16 | | ordinances and to ensure that the owner is complying | 17 | | with the provisions of subparagraph (E) of paragraph | 18 | | (4) of this subsection. | 19 | | (2) The chief county assessment officer shall notify | 20 | | the owner as to whether the property meets the | 21 | | requirements of this Section. If the property does not | 22 | | meet the requirements of this Section, the chief county | 23 | | assessment officer shall provide written notice of any | 24 | | deficiencies to the owner, who shall then have 30 days | 25 | | from the date of notification to provide supplemental | 26 | | information showing compliance with this Section. If the |
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| 1 | | owner does not exercise this right to cure the deficiency, | 2 | | or if the information submitted, in the sole judgment of | 3 | | the chief county assessment officer, is insufficient to | 4 | | meet the requirements of this Section, the chief county | 5 | | assessment officer shall provide a written explanation of | 6 | | the reasons for denial. | 7 | | (3) The chief county assessment officer may charge a | 8 | | reasonable application fee to offset the administrative | 9 | | expenses associated with the program. | 10 | | (4) The benefit conferred by this Section is limited | 11 | | as follows: | 12 | | (A) The owner is eligible to apply for the benefit | 13 | | conferred by this Section from June 1, 2020 through | 14 | | December 31, 2029. If approved, the reduction will be | 15 | | effective for the current taxable year, which will be | 16 | | reflected in the tax bill issued in the following | 17 | | taxable year. | 18 | | (B) In the year prior to the final year of | 19 | | eligibility for the reduction in assessed value, | 20 | | written notice must be provided to tenants informing | 21 | | them of the date of the termination. | 22 | | (C) If the property is sold or transferred, the | 23 | | purchaser or transferee must comply with all | 24 | | requirements of this Section in order to continue | 25 | | receiving the reduction in assessed value. | 26 | | (D) The owner may apply for the benefit if the |
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| 1 | | newly-constructed residential real property or | 2 | | improvements to existing residential real property | 3 | | were put in service on or after June 6, 2015. However, | 4 | | the eligibility period shall be reduced by the number | 5 | | of years between the placed in service date and the | 6 | | date the owner first receives this benefit. | 7 | | (E) The owner may apply for the benefit within 2 | 8 | | years after the newly-constructed residential real | 9 | | property or improvements to existing residential real | 10 | | property are put in service. However, the eligibility | 11 | | period shall be reduced for the number of years | 12 | | between the placed in service date and the date the | 13 | | owner first receives this benefit. | 14 | | (F) Owners of a multifamily building receiving a | 15 | | benefit through the Cook County Class 9 program on May | 16 | | 31, 2020 shall be deemed automatically eligible for | 17 | | the benefit defined in this Section in terms of | 18 | | meeting the criteria for new construction or | 19 | | substantial rehabilitation for a specific multifamily | 20 | | building regardless of when the newly-constructed | 21 | | residential real property or improvements to existing | 22 | | residential real property were put in service. If a | 23 | | Cook County Class 9 owner had Class 9 status revoked on | 24 | | or after June 1, 2017 but can provide documents | 25 | | sufficient to prove that the revocation was in error | 26 | | or any deficiencies leading to the revocation have |
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| 1 | | been cured, the chief county assessment officer may | 2 | | deem the owner to be eligible. However, owners may not | 3 | | receive the both the benefits defined in this Section | 4 | | and the Cook County Class 9 program in any single | 5 | | taxable year. In addition, the number of years during | 6 | | which an owner has participated in the Class 9 program | 7 | | shall count against the number of remaining years | 8 | | eligible for the benefit as defined in this Section. | 9 | | (G) At the completion of the assessment reduction | 10 | | period described in this Section, the entire parcel | 11 | | shall be assessed as otherwise provided in State law. | 12 | | (g) For the purposes of this Section: | 13 | | "Affordable units" means units that have rents that do not | 14 | | exceed the maximum rents as defined in this Section. | 15 | | "Base year" means the taxable year prior to the first year | 16 | | of the construction period. | 17 | | "Construction period" means a period of not more than 3 | 18 | | consecutive tax years during which the dwelling units are | 19 | | being newly-constructed or the qualifying substantial | 20 | | rehabilitation is taking place. | 21 | | "Household income" includes the annual income for all the | 22 | | people who occupy a housing unit that is anticipated to be | 23 | | received from a source outside of the family during the | 24 | | 12-month period following admission or the annual | 25 | | recertification, including related family members and all the | 26 | | unrelated people who share the housing unit. Household income |
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| 1 | | includes the sum total of the following income sources: wages, | 2 | | salaries, and tips before any payroll deductions; net business | 3 | | income; interest and dividends; payments in lieu of earnings, | 4 | | such as unemployment and disability compensation, worker's | 5 | | compensation and severance pay; Social Security income, | 6 | | including lump sum payments; payments from insurance policies, | 7 | | annuities, pensions, disability benefits and other types of | 8 | | periodic payments; alimony, child support, and other regular | 9 | | monetary contributions; and public assistance, except for | 10 | | assistance from the Supplemental Nutrition Assistance Program | 11 | | (SNAP). "Household income" does not include: earnings of | 12 | | children under age 18; temporary income such as cash gifts; | 13 | | reimbursement for medical expenses; lump sums from | 14 | | inheritance, insurance payments, settlements for personal or | 15 | | property losses; student financial assistance paid directly to | 16 | | the student or to an educational institution; foster child | 17 | | care payments; receipts from government-funded training | 18 | | programs; assistance from the Supplemental Nutrition | 19 | | Assistance Program (SNAP). | 20 | | "Maximum income limits" means the maximum regular income | 21 | | limits for 60% of the area median income for the geographic | 22 | | area in which the multifamily building is located for | 23 | | multifamily programs, as determined by the United States | 24 | | Department of Housing and Urban Development and published | 25 | | annually by the Illinois Housing Development Authority. | 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 benefit | 6 | | defined in this Section, maximum rents are to be reduced by the | 7 | | owner based on the Illinois Housing Development Authority's | 8 | | rules regarding tenant payment of utilities; or, if the owner | 9 | | is leasing an affordable unit to a household with an income at | 10 | | or below the maximum income limit who is participating in | 11 | | qualifying income-based rental subsidy program, "maximum rent" | 12 | | means the maximum rents allowable under the guidelines of the | 13 | | qualifying income-based rental subsidy program. | 14 | | "Primary building systems" means the following, together | 15 | | with their related rehabilitations, specifically approved for | 16 | | this program: | 17 | | (1) Electrical. All electrical work must comply with | 18 | | applicable codes; it may consist of a combination of any | 19 | | of the following alternatives: | 20 | | (A) installing individual equipment and appliance | 21 | | branch circuits as required by code (the minimum being | 22 | | a kitchen appliance branch circuit); | 23 | | (B) installing a new emergency service, including | 24 | | emergency lighting with all associated conduits and | 25 | | wiring; | 26 | | (C) rewiring all existing feeder conduits ("home |
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| 1 | | runs") from the main switchgear to apartment area | 2 | | distribution panels; | 3 | | (D) installing new in-wall conduits for | 4 | | receptacles, switches, appliances, equipment, and | 5 | | fixtures; | 6 | | (E) replacing power wiring for receptacles, | 7 | | switches, appliances, equipment, and fixtures; | 8 | | (F) installing new light fixtures throughout the | 9 | | building including closets and central areas; | 10 | | (G) replacing, adding, or doing work as necessary | 11 | | to bring all receptacles, switches, and other | 12 | | electrical devices into code compliance; | 13 | | (H) installing a new main service, including | 14 | | conduit cables, into the building and main disconnect | 15 | | switch; and | 16 | | (I) installing new distribution panels, including | 17 | | all panel wiring, terminals, circuit breakers, and all | 18 | | other panel devices. | 19 | | (2) Heating. All heating work must comply with | 20 | | applicable codes; it may consist of a combination of any | 21 | | of the following alternatives: | 22 | | (A) installing a new system to replace one of the | 23 | | following heat distribution systems: | 24 | | (i) piping and heat radiating units, including | 25 | | new main line venting and radiator venting; or | 26 | | (ii) duct work, diffusers, and cold air |
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| 1 | | returns; or | 2 | | (iii) any other type of existing heat | 3 | | distribution and radiation/diffusion components; | 4 | | or | 5 | | (B) installing a new system to replace one of the | 6 | | following heat generating units: | 7 | | (i) hot water/steam boiler; | 8 | | (ii) gas furnace; or | 9 | | (iii) any other type of existing heat | 10 | | generating unit. | 11 | | (3) Plumbing. All plumbing work must comply with | 12 | | applicable codes. Replace all or a part of the in-wall | 13 | | supply and waste plumbing; however, main supply risers, | 14 | | waste stacks and vents, and code-conforming waste lines | 15 | | need not be replaced. | 16 | | (4) Roofing. All roofing work must comply with | 17 | | applicable codes; it may consist of either of the | 18 | | following alternatives, separately or in combination: | 19 | | (A) replacing all rotted roof decks and | 20 | | insulation; or | 21 | | (B) replacing or repairing leaking roof membranes | 22 | | (10% is the suggested minimum replacement of | 23 | | membrane); restoration of the entire roof is an | 24 | | acceptable substitute for membrane replacement. | 25 | | (5) Exterior doors and windows. Replace the exterior | 26 | | doors and windows. Renovation of ornate entry doors is an |
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| 1 | | acceptable substitute for replacement. | 2 | | (6) Floors, walls, and ceilings. Finishes must be | 3 | | replaced or covered over with new material. Acceptable | 4 | | replacement or covering materials are as follows: | 5 | | (A) floors must have new carpeting, vinyl tile, | 6 | | ceramic, refurbished wood finish, or a similar | 7 | | substitute; | 8 | | (B) walls must have new drywall, including joint | 9 | | taping and painting; or | 10 | | (C) new ceilings must be either drywall, suspended | 11 | | type, or a similar system. | 12 | | (7) Exterior walls. | 13 | | (A) replace loose or crumbling mortar and masonry | 14 | | with new material; | 15 | | (B) replace or paint wall siding and trim as | 16 | | needed; | 17 | | (C) bring porches and balconies to a sound | 18 | | condition; or | 19 | | (D) any combination of (A), (B), and (C). | 20 | | (8) Elevators. Where applicable, at least 4 of the | 21 | | following 7 alternatives must be accomplished: | 22 | | (A) replace or rebuild the machine room controls | 23 | | and refurbish the elevator machine (or equivalent | 24 | | mechanisms in the case of hydraulic elevators); | 25 | | (B) replace hoistway electro-mechanical items, | 26 | | including: ropes, switches, limits, buffers, levelers, |
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| 1 | | and deflector sheaves (or equivalent mechanisms in the | 2 | | case of hydraulic elevators); | 3 | | (C) replace hoistway wiring; | 4 | | (D) replace door operators and linkage; | 5 | | (E) replace door panels at each opening; | 6 | | (F) replace hall stations, car stations, and | 7 | | signal fixtures; or | 8 | | (G) rebuild the car shell and refinish the | 9 | | interior. | 10 | | (9) Health and safety. | 11 | | (A) install or replace fire suppression systems; | 12 | | (B) install or replace security systems; or | 13 | | (C) environmental remediation of lead-based paint, | 14 | | asbestos, leaking underground storage tanks, or radon. | 15 | | (10) Energy conservation improvements undertaken to | 16 | | limit the amount of solar energy absorbed by a building's | 17 | | roof or to reduce energy use for the property, including | 18 | | any of the following activities: | 19 | | (A) installing or replacing reflective roof | 20 | | coatings (flat roofs); | 21 | | (B) installing or replacing R-49 roof insulation; | 22 | | (C) installing or replacing R-19 perimeter wall | 23 | | insulation; | 24 | | (D) installing or replacing insulated entry doors; | 25 | | (E) installing or replacing Low E, insulated | 26 | | windows; |
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| 1 | | (F) installing or replacing WaterSense labeled | 2 | | plumbing fixtures; | 3 | | (G) installing or replacing 90% or better sealed | 4 | | combustion heating systems; | 5 | | (H) installing or replacing direct exhaust hot | 6 | | 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 low VOC interior paints on interior | 12 | | finishes; | 13 | | (L) installing or replacing Energy Star certified | 14 | | lighting in common areas; or | 15 | | (M) installing or replacing grading and | 16 | | landscaping to promote on-site water retention. | 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 | | "Qualifying income-based rental subsidy program" means a | 7 | | Housing Choice Voucher issued by a housing authority under | 8 | | Section 8 of the United States Housing Act of 1937, a tenant | 9 | | voucher converted to a project-based voucher by a housing | 10 | | authority or any other program administered or funded by a | 11 | | housing authority, the Illinois Housing Development Authority, | 12 | | or another State agency, or a unit of local government where | 13 | | participation is limited to households with incomes at or | 14 | | below the maximum income limits as defined in this Section and | 15 | | the tenants' portion of the rent payment is based on a | 16 | | percentage of their income or a flat amount that does not | 17 | | exceed the maximum rent as defined in this Section. | 18 | | "Qualifying moderate rehabilitation" means, at a minimum, | 19 | | compliance with local building codes and the replacement or | 20 | | renovation of at least 2 primary building systems. Although | 21 | | the cost of each primary building system may vary, to be | 22 | | approved for the benefit under this Section, the combined | 23 | | expenditure for making the building compliant with local codes | 24 | | and replacing primary building systems must be at least $8 per | 25 | | square foot for work completed between June 1, 2020 and | 26 | | December 31, 2020 and, in subsequent years, $8 adjusted by the |
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| 1 | | Consumer Price Index for All Urban Consumers, as published | 2 | | annually by the U.S. Department of Labor. To be approved for | 3 | | the reduced valuation under paragraph (2) of subsection (e) of | 4 | | this Section, the combined expenditure for making the building | 5 | | compliant with local codes and replacing primary building | 6 | | systems must be at least $12.50 per square foot for work | 7 | | completed between January 1, 2020 and December 31, 2020 and in | 8 | | subsequent years, $12.50 adjusted by the Consumer Price Index | 9 | | for All Urban Consumers, as published annually by the U.S. | 10 | | Department of Labor. | 11 | | "Qualifying substantial rehabilitation" means, at a | 12 | | minimum, compliance with local building codes and the | 13 | | replacement or renovation of at least 4 primary building | 14 | | systems. Although the cost of each primary building system may | 15 | | vary, to be approved for the benefit under this Section, the | 16 | | combined expenditure for making the building compliant with | 17 | | local codes and replacing primary building systems must be at | 18 | | least $20 per square foot for work completed between June 1, | 19 | | 2020 and December 31, 2020 and, in subsequent years, $20 | 20 | | adjusted by the Consumer Price Index for All Urban Consumers, | 21 | | as published annually by the U.S. Department of Labor. Any | 22 | | applicant who has purchased the property in an arm's length | 23 | | transaction not more than 90 days before applying for this | 24 | | benefit may use the cost of rehabilitation or repairs required | 25 | | by documented code violations, up to a maximum of $2 per square | 26 | | foot, to meet the qualifying substantial rehabilitation |
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| 1 | | requirements.
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.
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