Full Text of HB5450 97th General Assembly
HB5450enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning housing.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Rental Housing Support
Program Act is | 5 | | amended by changing Sections 5 and 25 and by adding Section 95 | 6 | | as follows: | 7 | | (310 ILCS 105/5)
| 8 | | Sec. 5. Legislative findings and purpose. The General | 9 | | Assembly finds
that in many parts of this State, large numbers | 10 | | of citizens are faced with the
inability to secure affordable | 11 | | rental housing. Due to either insufficient wages
or a shortage | 12 | | of affordable rental housing stock, or both, many families have
| 13 | | difficulty securing decent housing, are subjected to | 14 | | overcrowding, pay too
large a portion of their total monthly | 15 | | income for housing and consequently
suffer the lack of other
| 16 | | basic needs, live in substandard or unhealthy housing, or | 17 | | experience chronic
housing instability. Instability and | 18 | | inadequacy in housing limits the
employability and | 19 | | productivity of many citizens, adversely affects family
health | 20 | | and stress levels, and impedes children's ability to learn ; | 21 | | such instability , and produces
corresponding drains on public | 22 | | resources and contributes to an overall decline in real estate | 23 | | values . It is the purpose of this Act to
create a State program |
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| 1 | | to help localities address the need for decent,
affordable, | 2 | | permanent rental housing.
| 3 | | (Source: P.A. 94-118, eff. 7-5-05.) | 4 | | (310 ILCS 105/25)
| 5 | | Sec. 25. Criteria for awarding grants. The Authority shall | 6 | | adopt rules
to govern the awarding of grants and the continuing | 7 | | eligibility for grants
under Sections 15 and 20. Requests for | 8 | | proposals under
Section 20 must specify that proposals must | 9 | | satisfy these rules.
The rules must contain and be consistent | 10 | | with, but need not be limited to,
the following criteria:
| 11 | | (1) Eligibility for tenancy in the units supported by | 12 | | grants to local
administering agencies must be
limited
to | 13 | | households with gross income at or below 30% of the median
| 14 | | family income for the area in which the grant will be
made. | 15 | | Fifty percent of the units that are supported by any grant | 16 | | must be set
aside for households whose income is at or | 17 | | below 15% of the area median
family income for the area in | 18 | | which the grant will be made, provided that local | 19 | | administering agencies may negotiate flexibility in
this | 20 | | set-aside with the Authority if they demonstrate that they | 21 | | have been
unable to locate sufficient tenants in this lower | 22 | | income range. Income eligibility for units supported by | 23 | | grants to local administering agencies must be verified | 24 | | annually by landlords and submitted to local administering | 25 | | agencies. Tenants
must have sufficient income to be able to |
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| 1 | | afford the tenant's share of the
rent. For grants awarded | 2 | | under Section 20, eligibility for tenancy in units
| 3 | | supported by grants must be limited to households with a | 4 | | gross income at or
below
30% of area median family income | 5 | | for the area in which the grant will be made. Fifty percent | 6 | | of the units that are supported by any grant must be set | 7 | | aside for households whose income is at or below 15% of the | 8 | | median family income for the area in which the grant will | 9 | | be made, provided that developers may negotiate | 10 | | flexibility in this set-aside with the Authority or | 11 | | municipality as defined in subsection (b) of Section 10 if | 12 | | it demonstrates that it has been unable to locate | 13 | | sufficient tenants in this lower income range.
The | 14 | | Authority shall determine what sources qualify as a | 15 | | tenant's income.
| 16 | | (2) Local administering agencies must include | 17 | | 2-bedroom, 3-bedroom,
and 4-bedroom units among those | 18 | | intended to be supported by grants
under the program. In | 19 | | grants under Section 15, the precise number of
these units | 20 | | among all the units intended to be supported by a grant | 21 | | must be
based on need in the community for larger units and | 22 | | other factors that the
Authority specifies in rules. The | 23 | | local administering agency must specify
the basis for the | 24 | | numbers of these units that are proposed for support under
| 25 | | a grant. Local administering agencies must make a good | 26 | | faith effort to
comply with this allocation of unit sizes. |
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| 1 | | In grants awarded under Section
20, developers and the | 2 | | Authority or municipality, as defined in subsection (b) of | 3 | | Section 10, shall negotiate the numbers and sizes of
units | 4 | | to be built in a project and supported by the grant.
| 5 | | (3) Under grants awarded under Section 15, local | 6 | | administering agencies
must enter into a payment contract | 7 | | with the landlord that defines the method of payment and | 8 | | must pay subsidies to landlords on a quarterly basis and in | 9 | | advance of the
quarter paid for.
| 10 | | (4) Local administering agencies and developers must | 11 | | specify how
vacancies in units supported by a grant must be | 12 | | advertised and they must include provisions for outreach to | 13 | | local
homeless shelters, organizations that work with | 14 | | people with disabilities,
and others interested in | 15 | | affordable housing.
| 16 | | (5) The local administering agency or developer must | 17 | | establish a schedule
for the tenant's rental obligation for | 18 | | units supported by a grant. The
tenant's share of the rent | 19 | | must be a flat amount, calculated annually, based on the | 20 | | size of the
unit and the household's income category. In | 21 | | establishing the schedule for
the tenant's rental | 22 | | obligation, the local administering agency or developer
| 23 | | must use 30% of gross income within an income range as a | 24 | | guide, and it
may charge an additional or lesser amount.
| 25 | | (6) The amount of the subsidy provided under a grant | 26 | | for a unit must be
the difference between the amount of the |
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| 1 | | tenant's obligation and the total
amount of rent for the
| 2 | | unit. The total amount of rent for the unit must be | 3 | | negotiated between the
local
administering authority and | 4 | | the landlord under Section 15, or between the
Authority or | 5 | | municipality, as defined in subsection (b) of Section 10, | 6 | | and the developer under Section 20, using comparable rents | 7 | | for units of comparable size and condition in the | 8 | | surrounding community as a guideline.
| 9 | | (7) Local administering agencies and developers, | 10 | | pursuant to criteria
the
Authority develops in rules, must | 11 | | ensure that there are procedures in place
to maintain the | 12 | | safety and habitability of units supported under grants. | 13 | | Local administering agencies must inspect
units before | 14 | | supporting them under a grant awarded under Section 15.
| 15 | | (8) Local administering agencies must provide or | 16 | | ensure that tenants are
provided with a "bill of rights" | 17 | | with their lease setting forth local
landlord-tenant laws | 18 | | and procedures and contact information for the local
| 19 | | administering agency.
| 20 | | (9) A local administering agency must create
a plan | 21 | | detailing a process for helping
to provide information, | 22 | | when necessary, on how to access education, training, and | 23 | | other
supportive services to tenants living in units | 24 | | supported under the grant. The
plan must be
submitted as a | 25 | | part of the administering agency's proposal to the | 26 | | Authority
required under
Section 15.
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| 1 | | (10) Local administering agencies and developers may | 2 | | not use funding under
the
grant to develop or support | 3 | | housing that requires that a tenant has a particular | 4 | | diagnosis or type or presence of disability as a condition | 5 | | of eligibility for occupancy unless the requirement is | 6 | | mandated by another funding source for the housing. Local | 7 | | administering agencies and developers may use grant | 8 | | funding to develop integrated housing opportunities for | 9 | | persons with disabilities, but not housing restricted to a | 10 | | specific disability type.
| 11 | | (11) In order to plan for periodic fluctuations in | 12 | | program revenue, the Authority shall establish by rule a | 13 | | mechanism for establishing a reserve fund and the level of | 14 | | funding that shall be held in reserve either by the | 15 | | Authority or by local administering agencies.
| 16 | | (Source: P.A. 94-118, eff. 7-5-05.) | 17 | | (310 ILCS 105/95 new) | 18 | | Sec. 95. Severability. If any provision of this Act or its | 19 | | application to any person or circumstance is held invalid, the | 20 | | invalidity of that provision or application does not affect | 21 | | other provisions or applications of this Act that can be given | 22 | | effect without the invalid provision or application.
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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