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[ House Amendment 001 ] |
92_SB1135sam001 LRB9207590SMdvam01 1 AMENDMENT TO SENATE BILL 1135 2 AMENDMENT NO. . Amend Senate Bill 1135 by replacing 3 everything after the enacting clause with the following: 4 "Section 5. The Illinois Housing Development Act is 5 amended by adding Section 7.28 as follows: 6 (20 ILCS 3805/7.28 new) 7 Sec. 7.28. Tax credit for donation to sponsors. The 8 Illinois Housing Development Authority may administer and 9 adopt rules for an affordable housing tax donation credit 10 program to provide tax credits for donations to sponsors of 11 affordable housing projects as set forth in this Section. 12 (a) In this Section: 13 "Administrative housing agency" means either the Illinois 14 Housing Development Authority or an agency of the City of 15 Chicago. 16 "Affordable housing project" means either (i) a rental 17 project in which at least 25% of the units have rents 18 (including tenant-paid heat) that do not exceed, on a monthly 19 basis, 30% of the gross monthly income of a household earning 20 60% of the area median income and at least 25% of the units 21 are occupied by persons and families whose incomes do not 22 exceed 60% of the median family income for the geographic -2- LRB9207590SMdvam01 1 area in which the residential unit is located or (ii) a unit 2 for sale to homebuyers whose gross household income is at or 3 below 60% of the area median income and who pay no more than 4 30% of their gross household income for mortgage principal, 5 interest, property taxes, and property insurance (PITI). 6 "Donation" means money, securities, or real or personal 7 property that is donated to a not-for-profit sponsor that is 8 used solely for costs associated with either (i) purchasing, 9 constructing, or rehabilitating an affordable housing project 10 in this State, (ii) an employer-assisted housing project in 11 this State, (iii) general operating support, or (iv) 12 technical assistance as defined by this Section. 13 "Employer-assisted housing project" means either 14 down-payment assistance, reduced-interest mortgages, mortgage 15 guarantee programs, rental subsidies, or individual 16 development account savings plans that are provided by 17 employers to employees to assist in securing affordable 18 housing near the work place, that are restricted to housing 19 near the work place, and that are restricted to employees 20 whose gross household income is at or below 120% of the area 21 median income. 22 "General operating support" means any cost incurred by a 23 sponsor that is a part of its general program costs and is 24 not limited to costs directly incurred by the affordable 25 housing project. 26 "Geographical area" means the metropolitan area or county 27 designated as an area by the federal Department of Housing 28 and Urban Development under Section 8 of the United States 29 Housing Act of 1937, as amended, for purposes of determining 30 fair market rental rates. 31 "Median income" means the incomes that are determined by 32 the federal Department of Housing and Urban Development 33 guidelines and adjusted for family size. 34 "Sponsor" means a not-for-profit organization that (i) is -3- LRB9207590SMdvam01 1 organized under the General Not For Profit Corporation Act of 2 1986 for the purpose of constructing or rehabilitating 3 affordable housing units in this State; (ii) is organized for 4 the purpose of constructing or rehabilitating affordable 5 housing units and has been issued a ruling from the Internal 6 Revenue Service of the United States Department of the 7 Treasury that the organization is exempt from income taxation 8 under provisions of the Internal Revenue Code; or (iii) is an 9 organization designated as a community development 10 corporation by the United States government under Title VII 11 of the Economic Opportunity Act of 1964. 12 "Technical assistance" means any cost incurred by a 13 sponsor for project planning, assistance with applying for 14 financing, or counseling services provided to prospective 15 homebuyers. 16 (b) A sponsor must apply to the administrative housing 17 agency that administers the program for approval of the 18 project. The administrative housing agency must reserve a 19 specific amount of tax credits for each approved affordable 20 housing project for 24 months after the date of approval. 21 The sponsor must receive an eligible donation within that 22 24-month time period or donations to the project made after 23 the end of the 24-month period are not eligible for the tax 24 credit allowed under Section 214 of the Illinois Income Tax 25 Act. 26 (c) The Illinois Housing Development Authority must 27 adopt rules establishing criteria for eligible costs and 28 donations, issuing and verifying tax credits, and selecting 29 affordable housing projects that are eligible for a tax 30 credit under Section 214 of the Illinois Income Tax Act. 31 (d) Tax credits for employer-assisted housing are 32 limited to that pool of tax credits that have been set aside 33 for employer-assisted housing. Tax credits for general 34 operating support are limited to 10% of the total tax credit -4- LRB9207590SMdvam01 1 allocation for a project and are also limited to that pool of 2 tax credits that have been set aside for general operating 3 support. Tax credits for technical assistance are limited to 4 that pool of tax credits that have been set aside for 5 technical assistance. 6 (e) The amount of tax credits reserved by the 7 administrative housing agency for an approved project is 8 limited to $13 million in the initial year and shall increase 9 each year by 5%. The City of Chicago shall receive 24.5% of 10 total tax credits authorized for each fiscal year. The 11 Illinois Housing Development Authority shall receive the 12 balance of the tax credits authorized for each fiscal year. 13 The tax credits may be used anywhere in the State. The tax 14 credits have the following set-asides: 15 (1) for employer-assisted housing, $2 million; and 16 (2) for general operating support and technical 17 assistance, $1 million. 18 The balance of the funds must be used for projects that 19 would otherwise meet the definition of affordable housing. 20 (f) The administrative housing agency that issues the 21 credit must record against the land upon which the project is 22 located an instrument to assure that the property maintains 23 its affordable housing compliance for a minimum of 10 years. 24 The housing authority has flexibility to assure that the 25 instrument does not cause undue hardship on homeowners. 26 Section 10. The Illinois Income Tax Act is amended by 27 adding Section 214 as follows: 28 (35 ILCS 5/214 new) 29 Sec. 214. Tax credit for affordable housing donations. 30 (a) Beginning with taxable years ending on or after 31 December 31, 2001 and until the taxable year ending on 32 December 31, 2006, a taxpayer who makes a donation under -5- LRB9207590SMdvam01 1 Section 7.28 of the Illinois Housing Development Act for the 2 development of affordable housing in this State is entitled 3 to a credit against the tax imposed by subsections (a) and 4 (b) of Section 201 in an amount equal to 50% of the value of 5 the donation. Partners, shareholders of subchapter S 6 corporations, and owners of limited liability companies (if 7 the limited liability company is treated as a partnership for 8 purposes of federal and State income taxation) are entitled a 9 credit under this Section to be determined in accordance with 10 the determination of income and distributive share of income 11 under Sections 702 and 703 and subchapter S of the Internal 12 Revenue Code. 13 (b) If the amount of the credit exceeds the tax 14 liability for the year, the excess may be carried forward and 15 applied to the tax liability of the 5 taxable years following 16 the excess credit year. The tax credit shall be applied to 17 the earliest year for which there is a tax liability. If 18 there are credits for more than one year that are available 19 to offset a liability, the earlier credit shall be applied 20 first. 21 (c) The transfer of the tax credit allowed under this 22 Section may be made (i) to the purchaser of land that has 23 been designated solely for affordable housing projects in 24 accordance with the Illinois Housing Development Act or (ii) 25 to another donor who has also made an eligible donation to 26 the sponsor of an affordable housing project in accordance 27 with the Illinois Housing Development Act. 28 (d) A taxpayer claiming the credit provided by this 29 Section must maintain and record any information that the 30 Department may require by regulation regarding the affordable 31 housing project for which the credit is claimed. When 32 claiming the credit provided by this Section, the taxpayer 33 must provide information regarding the taxpayer's donation to 34 the development of affordable housing under the Illinois -6- LRB9207590SMdvam01 1 Housing Development Act. 2 Section 99. Effective date. This Act takes effect upon 3 becoming law.".