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Public Act 102-0175 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the | ||||
COVID-19 Affordable Housing Grant Program Act. | ||||
Section 5. Purpose and findings. The State of Illinois | ||||
faces a large shortage of decent, affordable rental housing | ||||
for low-income and moderate-income households. The COVID-19 | ||||
pandemic has dramatically increased this need for affordable | ||||
housing. The development of affordable housing will help | ||||
Illinois to address the need for more housing, jobs, tax base, | ||||
tax revenue, and population in the State. These funds will | ||||
help developers to overcome increased construction costs | ||||
related to pandemic-created supply shortages (in lumber and | ||||
other materials) and to jump-start a housing recovery in | ||||
Illinois in the wake of the pandemic. These funds will also | ||||
incentivize and attract private equity and private lending and | ||||
will allow the State to more fully use and draw down unused | ||||
federal resources for affordable housing. Funding will be used | ||||
for the acquisition, construction, development, | ||||
predevelopment, or rehabilitation of affordable multifamily | ||||
rental development. |
Section 10. Definitions. As used in this Act: | ||
"Authority" means the Illinois Housing Development | ||
Authority. | ||
"Disproportionately impacted area" means a census tract or | ||
comparable geographic area that meets at least one of the | ||
following criteria, as determined by the Department of | ||
Commerce and Economic Opportunity: | ||
(1) the area has a poverty rate of at least 20% | ||
according to the latest federal decennial census; | ||
(2) 75% or more of the children in the area | ||
participate in the federal free lunch program according to | ||
reported statistics from the State Board of Education; | ||
(3) at least 20% of the households in the area receive | ||
assistance under the Supplemental Nutrition Assistance | ||
Program; or | ||
(4) the area has an average unemployment rate, as | ||
determined by the Department of Employment Security, that | ||
is more than 120% of the national unemployment average, as | ||
determined by the United States Department of Labor, for a | ||
period of at least 2 consecutive calendar years preceding | ||
the date of the application. | ||
"Federal tax credit" means the federal low-income housing | ||
tax credit provided by Section 42 of the federal Internal | ||
Revenue Code, including federal low-income housing tax credits | ||
issued pursuant to 26 U.S.C. 42(h)(3) and 26 U.S.C. 42(h)(4). | ||
"Qualified development" means a qualified low-income |
housing project, as that term is defined in Section 42 of the | ||
federal Internal Revenue Code of 1986, that is located in the | ||
State and is determined to be eligible for the federal tax | ||
credit set forth in Section 42 of the Internal Revenue Code. | ||
Section 15. Grant program. Subject to appropriation for | ||
this purpose, the Authority shall establish an affordable | ||
housing grant program to encourage the construction and | ||
rehabilitation of affordable multifamily rental housing in | ||
response to the COVID-19 pandemic. Funding may be used for the | ||
acquisition, construction, development, predevelopment, or | ||
rehabilitation of a qualified development. The goal of the | ||
grant program shall be to fund the development and | ||
preservation of up to 3,500 affordable rental homes and | ||
apartments by December 31, 2024. Project sponsors who wish to | ||
participate in the affordable housing grant program shall | ||
submit a grant application to the Authority in accordance with | ||
rules adopted by the Authority. The Authority shall prescribe, | ||
by rule, standards and procedures for the provision of | ||
demonstration grant funds in relation to each grant | ||
application. | ||
Section 20. Affordable multifamily rental housing gap | ||
financing. Where a qualified development has been awarded a | ||
federal tax credit, the recipient may request additional gap | ||
financing under this grant program as the Authority deems |
appropriate. Through the program, the Authority shall provide | ||
grants with no expectation of repayment. | ||
Section 25. Prioritization efforts. | ||
(a) The Authority shall make best efforts to prioritize | ||
grant applications for proposed developments as follows: | ||
(1) developments that are located within an area that | ||
was disproportionately affected by the COVID-19 pandemic | ||
based on the number of positive COVID-19 cases; | ||
(2) developments involving contracts with certified | ||
disadvantaged business enterprises and certified | ||
underrepresented business enterprises owned by minorities, | ||
women, veterans, LGBT persons, and persons with | ||
disabilities during construction; | ||
(3) developments involving project labor agreements | ||
with local building trades; and | ||
(4) developments involving contracts or subcontracts | ||
with a registered apprenticeship program or | ||
preapprenticeship program. | ||
(b) The Authority shall balance the approval of projects | ||
between those located within a disproportionately impacted | ||
area as defined under this Act and those located in areas of | ||
opportunity, as defined or recognized by the Authority. | ||
Section 30. Annual reporting to the General Assembly. | ||
(a) The Authority shall submit an annual report to the |
General Assembly no later than March 31 of each calendar year | ||
with the first annual report due no later than March 31, 2022. | ||
(b) The annual report must describe the grant program's | ||
administration and the number and type of projects funded as | ||
of the date of the report with the following information: | ||
(1) location of projects and demographics of the | ||
surrounding community; | ||
(2) accessibility of projects to public | ||
transportation, schools, health care, grocery stores, and | ||
banking institutions; | ||
(3) total number of residential units developed or | ||
rehabbed per project; | ||
(4) total number of affordable units developed or | ||
rehabbed per project; | ||
(5) total number of affordable units put into service; | ||
(6) number of program applications; | ||
(7) number of applications awarded; | ||
(8) amount of funding awarded through the program per | ||
calendar year; | ||
(9) amount of funding awarded through the grant | ||
program to date; | ||
(10) specific data for each prioritization category | ||
listed under Section 25; | ||
(11) delays or issues with development including, but | ||
not limited to, acquisition, zoning and permits, labor, | ||
and materials; and |
(12) any compliance issues with grant recipients and | ||
the corrective action taken. | ||
Section 35. Repeal. This Act is repealed on April 1, 2025. | ||
Section 900. The Illinois Housing Development Act is | ||
amended by changing Section 7.28 and 22 as follows:
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(20 ILCS 3805/7.28)
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Sec. 7.28. Tax credit for donation to sponsors. The | ||
Authority may administer and adopt rules
for
an affordable | ||
housing tax donation credit program to provide tax credits for
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donations as set forth in this
Section.
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(a) In this Section:
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"Administrative housing agency" means either the Authority | ||
or an agency of the City of Chicago.
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"Affordable housing project" means either : | ||
(1) (i) a rental project in which at
least 25% of the | ||
units have rents (including tenant-paid heat) that do not
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exceed, on a monthly basis,
maximum gross rent figures, as | ||
published by the Authority, that are: | ||
(i)
based
on data published annually by the U.S. | ||
Department of Housing and Urban
Development ; , | ||
(ii) based on the annual income of households | ||
earning 60% of the
area median income ; , | ||
(iii) computed using a 30% of gross monthly
income
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standard ; and | ||
(iv) adjusted for unit size and at least 25% of the | ||
units are
occupied by persons and families whose | ||
incomes do not exceed 60% of the median
family income | ||
for the geographic area in which the residential unit | ||
is located ;
or | ||
(2) (ii) a unit for sale to homebuyers whose gross | ||
household income is at or
below (A) 60% of the area median | ||
income (for taxable years beginning prior to January 1, | ||
2022) or (B) 120% of the area median income (for taxable | ||
years beginning on or after January 1, 2022) and who pay no | ||
more than 30% of their gross
household income for mortgage | ||
principal, interest, property taxes, and
property | ||
insurance (PITI).
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"Donation" means money, securities, or real or personal | ||
property that is
donated to a not-for-profit sponsor that is | ||
used solely for costs associated
with either (i) purchasing, | ||
constructing, or rehabilitating an affordable
housing project | ||
in this State, (ii) an employer-assisted housing project in
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this State, (iii) general operating support, or (iv) technical | ||
assistance as
defined by this Section.
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"Employer-assisted housing project" means either | ||
down-payment assistance,
reduced-interest mortgages, mortgage | ||
guarantee programs, rental subsidies, or
individual | ||
development account savings plans that are provided by | ||
employers to
employees to assist in securing affordable |
housing near the workplace work place , that
are restricted to | ||
housing near the workplace work place , and that are restricted | ||
to
employees whose gross household income is at or below 120% | ||
of the area median
income.
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"General operating support" means any cost incurred by a | ||
sponsor that is a
part of its general program costs and is not | ||
limited to costs directly incurred
by the affordable housing | ||
project.
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"Geographical area" means the metropolitan area or county | ||
designated as an
area by the federal Department of Housing and | ||
Urban Development under Section 8
of the United States Housing | ||
Act of 1937, as amended, for purposes of
determining fair | ||
market rental rates.
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"Median income" means the incomes that are determined by | ||
the federal
Department of Housing and Urban Development | ||
guidelines and adjusted for family
size.
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"Project" means an affordable housing project, an | ||
employer-assisted housing
project, general operating support, | ||
or technical assistance.
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"Sponsor" means a not-for-profit organization that (i) is | ||
organized as a
not-for-profit organization under the laws of | ||
this State or another
state and (1) for an affordable housing | ||
project, has as one of its purposes the
development of | ||
affordable housing; (2) for an employer-assisted housing
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project, has as one of its purposes home ownership education; | ||
and (3) for a
technical assistance project, has as one of
its |
purposes either the development of affordable housing or home | ||
ownership
education; (ii) is organized
for the purpose of | ||
constructing or rehabilitating affordable housing units and
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has
been issued a ruling from the Internal Revenue Service of | ||
the United States
Department of the Treasury that the | ||
organization is exempt from income taxation
under provisions | ||
of the Internal Revenue Code; or (iii) is an organization
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designated as a community development corporation by the | ||
United States
government under Title VII of the Economic | ||
Opportunity Act of 1964.
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"Tax credit" means a tax credit allowed under Section 214 | ||
of the Illinois
Income Tax Act.
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"Technical assistance" means any cost incurred by a | ||
sponsor for project
planning, assistance with applying for | ||
financing, or counseling services
provided to prospective | ||
homebuyers.
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(b) A sponsor must apply to an administrative housing | ||
agency for approval of the project. The
administrative housing
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agency must reserve a specific amount of tax credits for each | ||
approved project.
Tax credits for general operating support | ||
can only be reserved as part of a
reservation of tax credits | ||
for an affordable housing project, an
employer-assisted | ||
housing project, or technical assistance. No tax credits
shall | ||
be allowed for a project without a reservation of such tax | ||
credits by an
administrative housing agency for that project.
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(c) The Authority must adopt rules
establishing
criteria |
for eligible costs and donations, issuing and verifying tax | ||
credits,
and selecting projects that are eligible for a tax
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credit.
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(d) Tax credits for employer-assisted housing projects are | ||
limited to
that pool of
tax credits that have been set aside | ||
for employer-assisted housing. Tax
credits for general | ||
operating support are limited to 10% of the total tax
credit | ||
reservation for the related project (other than general | ||
operating
support) and are also limited to that pool of
tax
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credits that have been set aside for general operating | ||
support. Tax credits
for technical assistance are limited to | ||
that pool of tax credits that have been
set aside for technical | ||
assistance.
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(e) The amount of tax credits reserved by the | ||
administrative housing agency
for an approved project is | ||
limited to $32,850,352 in State fiscal years 2022 and 2023 $13 | ||
million in the initial year and shall
increase by 5% each | ||
fiscal year thereafter by 5% . The City of Chicago shall | ||
receive 24.5% of total tax
credits authorized for each fiscal | ||
year. The
Authority shall receive the balance of the tax | ||
credits authorized for each
fiscal year. The tax credits may | ||
be used anywhere in this State.
The tax
credits have the | ||
following set-asides:
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(1) for employer-assisted housing projects, $2 | ||
million; and
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(2) for general operating support and technical |
assistance, $1 million.
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The balance of the funds must be used for affordable | ||
housing
projects.
During the first 9 months of a fiscal year, | ||
if an administrative housing
agency is unable to reserve the | ||
tax credits set aside for the purposes
described in
subsection | ||
(e), the administrative housing agency may reserve the tax | ||
credits
for any approved projects.
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(f) The administrative housing agency that reserves tax | ||
credits for an
affordable housing project must record
against | ||
the land upon which the affordable housing project is located | ||
an
instrument to assure that
the property maintains its | ||
affordable housing compliance for a minimum of 10
years. The | ||
Authority has flexibility to assure that the instrument
does
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not cause undue hardship on homeowners.
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(Source: P.A. 92-491, eff. 8-23-01; 93-369, eff. 7-24-03.)
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(20 ILCS 3805/22) (from Ch. 67 1/2, par. 322)
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Sec. 22.
(a) The Authority shall not have outstanding at | ||
any one time
bonds and notes for any of its corporate purposes | ||
in an aggregate
principal amount exceeding $7,200,000,000 | ||
$3,600,000,000 , excluding
bonds and notes
issued to refund | ||
outstanding bonds and notes.
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(b) Of the authorized aggregate principal amount of | ||
$7,200,000,000 $3,600,000,000 provided
for by this Section, | ||
the amount of $150,000,000 shall be used for the purposes
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specified in Sections 7.23 and 7.24 of this Act.
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(c) Of the $1,000,000,000 authorized by this amendatory | ||
Act of 1985, an
amount not less than $100,000,000 shall be | ||
reserved for financing
developments which involve the | ||
rehabilitation of dwelling accommodations,
subject to the | ||
occupancy reservation of low or moderate income persons or
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families as provided in this Act.
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(Source: P.A. 87-250; 87-884; 88-93.)
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Section 905. The Illinois Procurement Code is amended by | ||
changing Section 1-10 as follows:
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(30 ILCS 500/1-10)
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Sec. 1-10. Application.
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(a) This Code applies only to procurements for which | ||
bidders, offerors, potential contractors, or contractors were | ||
first
solicited on or after July 1, 1998. This Code shall not | ||
be construed to affect
or impair any contract, or any | ||
provision of a contract, entered into based on a
solicitation | ||
prior to the implementation date of this Code as described in
| ||
Article 99, including , but not limited to , any covenant | ||
entered into with respect
to any revenue bonds or similar | ||
instruments.
All procurements for which contracts are | ||
solicited between the effective date
of Articles 50 and 99 and | ||
July 1, 1998 shall be substantially in accordance
with this | ||
Code and its intent.
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(b) This Code shall apply regardless of the source of the |
funds with which
the contracts are paid, including federal | ||
assistance moneys. This
Code shall
not apply to:
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(1) Contracts between the State and its political | ||
subdivisions or other
governments, or between State | ||
governmental bodies, except as specifically provided in | ||
this Code.
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(2) Grants, except for the filing requirements of | ||
Section 20-80.
| ||
(3) Purchase of care, except as provided in Section | ||
5-30.6 of the Illinois Public Aid
Code and this Section.
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(4) Hiring of an individual as employee and not as an | ||
independent
contractor, whether pursuant to an employment | ||
code or policy or by contract
directly with that | ||
individual.
| ||
(5) Collective bargaining contracts.
| ||
(6) Purchase of real estate, except that notice of | ||
this type of contract with a value of more than $25,000 | ||
must be published in the Procurement Bulletin within 10 | ||
calendar days after the deed is recorded in the county of | ||
jurisdiction. The notice shall identify the real estate | ||
purchased, the names of all parties to the contract, the | ||
value of the contract, and the effective date of the | ||
contract.
| ||
(7) Contracts necessary to prepare for anticipated | ||
litigation, enforcement
actions, or investigations, | ||
provided
that the chief legal counsel to the Governor |
shall give his or her prior
approval when the procuring | ||
agency is one subject to the jurisdiction of the
Governor, | ||
and provided that the chief legal counsel of any other | ||
procuring
entity
subject to this Code shall give his or | ||
her prior approval when the procuring
entity is not one | ||
subject to the jurisdiction of the Governor.
| ||
(8) (Blank).
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(9) Procurement expenditures by the Illinois | ||
Conservation Foundation
when only private funds are used.
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(10) (Blank). | ||
(11) Public-private agreements entered into according | ||
to the procurement requirements of Section 20 of the | ||
Public-Private Partnerships for Transportation Act and | ||
design-build agreements entered into according to the | ||
procurement requirements of Section 25 of the | ||
Public-Private Partnerships for Transportation Act. | ||
(12) (A) Contracts for legal, financial, and other | ||
professional and artistic services entered into on or | ||
before December 31, 2018 by the Illinois Finance Authority | ||
in which the State of Illinois is not obligated. Such | ||
contracts shall be awarded through a competitive process | ||
authorized by the members Board of the Illinois Finance | ||
Authority and are subject to Sections 5-30, 20-160, 50-13, | ||
50-20, 50-35, and 50-37 of this Code, as well as the final | ||
approval by the members Board of the Illinois Finance | ||
Authority of the terms of the contract. |
(B) Contracts for legal and financial services entered | ||
into by the Illinois Housing Development Authority in | ||
connection with the issuance of bonds in which the State | ||
of Illinois is not obligated. Such contracts shall be | ||
awarded through a competitive process authorized by the | ||
members of the Illinois Housing Development Authority and | ||
are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35, | ||
and 50-37 of this Code, as well as the final approval by | ||
the members of the Illinois Housing Development Authority | ||
of the terms of the contract. | ||
(13) Contracts for services, commodities, and | ||
equipment to support the delivery of timely forensic | ||
science services in consultation with and subject to the | ||
approval of the Chief Procurement Officer as provided in | ||
subsection (d) of Section 5-4-3a of the Unified Code of | ||
Corrections, except for the requirements of Sections | ||
20-60, 20-65, 20-70, and 20-160 and Article 50 of this | ||
Code; however, the Chief Procurement Officer may, in | ||
writing with justification, waive any certification | ||
required under Article 50 of this Code. For any contracts | ||
for services which are currently provided by members of a | ||
collective bargaining agreement, the applicable terms of | ||
the collective bargaining agreement concerning | ||
subcontracting shall be followed. | ||
On and after January 1, 2019, this paragraph (13), | ||
except for this sentence, is inoperative. |
(14) Contracts for participation expenditures required | ||
by a domestic or international trade show or exhibition of | ||
an exhibitor, member, or sponsor. | ||
(15) Contracts with a railroad or utility that | ||
requires the State to reimburse the railroad or utilities | ||
for the relocation of utilities for construction or other | ||
public purpose. Contracts included within this paragraph | ||
(15) shall include, but not be limited to, those | ||
associated with: relocations, crossings, installations, | ||
and maintenance. For the purposes of this paragraph (15), | ||
"railroad" means any form of non-highway ground | ||
transportation that runs on rails or electromagnetic | ||
guideways and "utility" means: (1) public utilities as | ||
defined in Section 3-105 of the Public Utilities Act, (2) | ||
telecommunications carriers as defined in Section 13-202 | ||
of the Public Utilities Act, (3) electric cooperatives as | ||
defined in Section 3.4 of the Electric Supplier Act, (4) | ||
telephone or telecommunications cooperatives as defined in | ||
Section 13-212 of the Public Utilities Act, (5) rural | ||
water or waste water systems with 10,000 connections or | ||
less, (6) a holder as defined in Section 21-201 of the | ||
Public Utilities Act, and (7) municipalities owning or | ||
operating utility systems consisting of public utilities | ||
as that term is defined in Section 11-117-2 of the | ||
Illinois Municipal Code. | ||
(16) Procurement expenditures necessary for the |
Department of Public Health to provide the delivery of | ||
timely newborn screening services in accordance with the | ||
Newborn Metabolic Screening Act. | ||
(17) Procurement expenditures necessary for the | ||
Department of Agriculture, the Department of Financial and | ||
Professional Regulation, the Department of Human Services, | ||
and the Department of Public Health to implement the | ||
Compassionate Use of Medical Cannabis Program and Opioid | ||
Alternative Pilot Program requirements and ensure access | ||
to medical cannabis for patients with debilitating medical | ||
conditions in accordance with the Compassionate Use of | ||
Medical Cannabis Program Act. | ||
(18) This Code does not apply to any procurements | ||
necessary for the Department of Agriculture, the | ||
Department of Financial and Professional Regulation, the | ||
Department of Human Services, the Department of Commerce | ||
and Economic Opportunity, and the Department of Public | ||
Health to implement the Cannabis Regulation and Tax Act if | ||
the applicable agency has made a good faith determination | ||
that it is necessary and appropriate for the expenditure | ||
to fall within this exemption and if the process is | ||
conducted in a manner substantially in accordance with the | ||
requirements of Sections 20-160, 25-60, 30-22, 50-5, | ||
50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35, | ||
50-36, 50-37, 50-38, and 50-50 of this Code; however, for | ||
Section 50-35, compliance applies only to contracts or |
subcontracts over $100,000. Notice of each contract | ||
entered into under this paragraph (18) that is related to | ||
the procurement of goods and services identified in | ||
paragraph (1) through (9) of this subsection shall be | ||
published in the Procurement Bulletin within 14 calendar | ||
days after contract execution. The Chief Procurement | ||
Officer shall prescribe the form and content of the | ||
notice. Each agency shall provide the Chief Procurement | ||
Officer, on a monthly basis, in the form and content | ||
prescribed by the Chief Procurement Officer, a report of | ||
contracts that are related to the procurement of goods and | ||
services identified in this subsection. At a minimum, this | ||
report shall include the name of the contractor, a | ||
description of the supply or service provided, the total | ||
amount of the contract, the term of the contract, and the | ||
exception to this Code utilized. A copy of any or all of | ||
these contracts shall be made available to the Chief | ||
Procurement Officer immediately upon request. The Chief | ||
Procurement Officer shall submit a report to the Governor | ||
and General Assembly no later than November 1 of each year | ||
that includes, at a minimum, an annual summary of the | ||
monthly information reported to the Chief Procurement | ||
Officer. This exemption becomes inoperative 5 years after | ||
June 25, 2019 ( the effective date of Public Act 101-27) | ||
this amendatory Act of the 101st General Assembly . | ||
Notwithstanding any other provision of law, for contracts |
entered into on or after October 1, 2017 under an exemption | ||
provided in any paragraph of this subsection (b), except | ||
paragraph (1), (2), or (5), each State agency shall post to the | ||
appropriate procurement bulletin the name of the contractor, a | ||
description of the supply or service provided, the total | ||
amount of the contract, the term of the contract, and the | ||
exception to the Code utilized. The chief procurement officer | ||
shall submit a report to the Governor and General Assembly no | ||
later than November 1 of each year that shall include, at a | ||
minimum, an annual summary of the monthly information reported | ||
to the chief procurement officer. | ||
(c) This Code does not apply to the electric power | ||
procurement process provided for under Section 1-75 of the | ||
Illinois Power Agency Act and Section 16-111.5 of the Public | ||
Utilities Act. | ||
(d) Except for Section 20-160 and Article 50 of this Code, | ||
and as expressly required by Section 9.1 of the Illinois | ||
Lottery Law, the provisions of this Code do not apply to the | ||
procurement process provided for under Section 9.1 of the | ||
Illinois Lottery Law. | ||
(e) This Code does not apply to the process used by the | ||
Capital Development Board to retain a person or entity to | ||
assist the Capital Development Board with its duties related | ||
to the determination of costs of a clean coal SNG brownfield | ||
facility, as defined by Section 1-10 of the Illinois Power | ||
Agency Act, as required in subsection (h-3) of Section 9-220 |
of the Public Utilities Act, including calculating the range | ||
of capital costs, the range of operating and maintenance | ||
costs, or the sequestration costs or monitoring the | ||
construction of clean coal SNG brownfield facility for the | ||
full duration of construction. | ||
(f) (Blank). | ||
(g) (Blank). | ||
(h) This Code does not apply to the process to procure or | ||
contracts entered into in accordance with Sections 11-5.2 and | ||
11-5.3 of the Illinois Public Aid Code. | ||
(i) Each chief procurement officer may access records | ||
necessary to review whether a contract, purchase, or other | ||
expenditure is or is not subject to the provisions of this | ||
Code, unless such records would be subject to attorney-client | ||
privilege. | ||
(j) This Code does not apply to the process used by the | ||
Capital Development Board to retain an artist or work or works | ||
of art as required in Section 14 of the Capital Development | ||
Board Act. | ||
(k) This Code does not apply to the process to procure | ||
contracts, or contracts entered into, by the State Board of | ||
Elections or the State Electoral Board for hearing officers | ||
appointed pursuant to the Election Code. | ||
(l) This Code does not apply to the processes used by the | ||
Illinois Student Assistance Commission to procure supplies and | ||
services paid for from the private funds of the Illinois |
Prepaid Tuition Fund. As used in this subsection (l), "private | ||
funds" means funds derived from deposits paid into the | ||
Illinois Prepaid Tuition Trust Fund and the earnings thereon. | ||
(Source: P.A. 100-43, eff. 8-9-17; 100-580, eff. 3-12-18; | ||
100-757, eff. 8-10-18; 100-1114, eff. 8-28-18; 101-27, eff. | ||
6-25-19; 101-81, eff. 7-12-19; 101-363, eff. 8-9-19; revised | ||
9-17-19.)
| ||
Section 915. The Illinois Income Tax Act is amended by | ||
changing Section 214 as follows:
| ||
(35 ILCS 5/214)
| ||
Sec. 214. Tax credit for affordable housing donations.
| ||
(a) Beginning with taxable years ending on or after | ||
December 31, 2001 and
until the taxable year ending on | ||
December 31, 2026 December 31, 2021 , a taxpayer who makes a
| ||
donation under Section 7.28 of the Illinois Housing | ||
Development Act is entitled to a credit
against the tax | ||
imposed by subsections (a) and (b) of Section 201 in an amount
| ||
equal
to 50% of the value of the donation. Partners, | ||
shareholders of subchapter S
corporations, and owners of | ||
limited liability companies (if the limited
liability company | ||
is treated as a partnership for purposes of federal and State
| ||
income
taxation) are entitled to a credit under this Section | ||
to be determined in
accordance with the determination of | ||
income and distributive share of income
under Sections 702 and |
703 and subchapter S of the Internal Revenue Code.
Persons or | ||
entities not subject to the tax imposed by subsections (a) and | ||
(b)
of Section 201 and who make a donation under Section 7.28 | ||
of the Illinois
Housing Development Act are entitled to a | ||
credit as described in this
subsection and may transfer that | ||
credit as described in subsection (c).
| ||
(b) If the amount of the credit exceeds the tax liability | ||
for the year, the
excess may be carried forward and applied to | ||
the tax liability of the 5 taxable
years following the excess | ||
credit year. The tax credit shall be applied to the
earliest | ||
year for which there is a tax liability. If there are credits | ||
for
more than one year that are available to offset a | ||
liability, the earlier credit
shall be applied first.
| ||
(c) The transfer of the tax credit allowed under this | ||
Section may be made
(i) to the purchaser of land that has been | ||
designated solely for affordable
housing projects in | ||
accordance with the Illinois Housing Development Act or
(ii) | ||
to another donor who has also made a donation in accordance | ||
with Section 7.28 of the
Illinois Housing
Development Act.
| ||
(d) A taxpayer claiming the credit provided by this | ||
Section must maintain
and record any information that the | ||
Department may require by regulation
regarding the project for | ||
which the credit is claimed.
When
claiming the credit provided | ||
by this Section, the taxpayer must provide
information | ||
regarding the taxpayer's donation to the project under the | ||
Illinois Housing Development Act.
|
(Source: P.A. 99-915, eff. 12-20-16.)
| ||
Section 920. The Property Tax Code is amended by changing | ||
Section 10-260 and by adding Section 15-178 as follows:
| ||
(35 ILCS 200/10-260)
| ||
Sec. 10-260. Low-income housing. In determining the fair
| ||
cash value of property receiving benefits from the Low-Income | ||
Housing Tax
Credit authorized by Section 42 of the Internal | ||
Revenue Code, 26 U.S.C. 42,
emphasis shall be given to the | ||
income approach , except in those circumstances
where another | ||
method is clearly more appropriate .
| ||
In counties with more than 3,000,000 inhabitants, during a | ||
general reassessment year in accordance with Section 9-220 or | ||
at such other time that a property is reassessed, to determine | ||
the fair cash value of any low-income housing project that | ||
qualifies for the Low-Income Housing Tax Credit under Section | ||
42 of the Internal Revenue Code: (i) in assessing any building | ||
with 7 or more units, the assessment officer must consider the | ||
actual or projected net operating income attributable to the | ||
property, capitalized at rates for similarly encumbered | ||
Section 42 properties; and (ii) in assessing any building with | ||
6 units or less, the assessment officer, prior to finalizing | ||
and certifying assessments to the Board of Review, shall | ||
reassess the building considering the actual or projected net | ||
operating income attributable to the property, capitalized at |
rates for similarly encumbered Section 42 properties. The | ||
capitalization rate for items (i) and (ii) shall be one that | ||
reflects the prevailing cost of capital for other types of | ||
similarly encumbered Section 42 properties in the geographic | ||
market in which the low-income housing project is located. | ||
All low-income housing projects that seek to be assessed | ||
in accordance with the provisions of this Section shall | ||
certify to the appropriate local assessment officer that the | ||
owner or owners qualify for the Low-Income Housing Tax Credit | ||
under Section 42 of the Internal Revenue Code for the | ||
property, in a form prescribed by that assessment officer. | ||
(Source: P.A. 91-502, eff. 8-13-99; 92-16, eff. 6-28-01.)
| ||
(35 ILCS 200/15-178 new) | ||
Sec. 15-178. Reduction in assessed value for affordable | ||
rental housing construction or rehabilitation. | ||
(a) The General Assembly finds that there is a shortage of | ||
high quality affordable rental homes for low-income and | ||
very-low-income households throughout Illinois; that owners | ||
and developers of rental housing face significant challenges | ||
building newly constructed apartments or undertaking | ||
rehabilitation of existing properties that results in rents | ||
that are affordable for low-income and very-low-income | ||
households; and that it will help Cook County and other parts | ||
of Illinois address the extreme shortage of affordable rental | ||
housing by developing a statewide policy to determine the |
assessed value for newly constructed and rehabilitated | ||
affordable rental housing that both encourages investment and | ||
incentivizes property owners to keep rents affordable. | ||
(b) Each chief county assessment officer shall implement | ||
special assessment programs to reduce the assessed value of | ||
all eligible newly constructed residential real property or | ||
qualifying rehabilitation to all eligible existing residential | ||
real property in accordance with subsection (c) for 10 taxable | ||
years after the newly constructed residential real property or | ||
improvements to existing residential real property are put in | ||
service. Any county with less than 3,000,000 inhabitants may | ||
decide not to implement one or both of the special assessment | ||
programs defined in subparagraph (1) of subsection (c) of this | ||
Section and subparagraph (2) of subsection (c) of this Section | ||
upon passage of an ordinance by a majority vote of the county | ||
board. Subsequent to a vote to opt out of this special | ||
assessment program, any county with less than 3,000,000 | ||
inhabitants may decide to implement one or both of the special | ||
assessment programs defined in subparagraph (1) of subsection | ||
(c) of this Section and subparagraph (2) of subsection (c) of | ||
this Section upon passage of an ordinance by a majority vote of | ||
the county board. Property is eligible for the special | ||
assessment program if and only if all of the following factors | ||
have been met: | ||
(1) at the conclusion of the new construction or
| ||
qualifying rehabilitation, the property consists of a |
newly constructed multifamily building containing 7 or | ||
more rental dwelling units or an existing multifamily | ||
building that has undergone qualifying rehabilitation | ||
resulting in 7 or more rental dwelling units; and | ||
(2) the property meets the application requirements | ||
defined in subsection (f). | ||
(c) For those counties that are required to implement the | ||
special assessment program and do not opt out of such special | ||
assessment program, the chief county assessment officer for | ||
that county shall require that residential real property is | ||
eligible for the special assessment program if and only if one | ||
of the additional factors have been met: | ||
(1) except as defined in subparagraphs (E), (F), and
| ||
(G) of paragraph (1) of subsection (f) of this Section,
| ||
prior to the newly constructed residential real property
| ||
or improvements to existing residential real property
| ||
being put in service, the owner of the residential real | ||
property commits that, for a period of 10 years, at least
| ||
15% of the multifamily building's units will have rents as
| ||
defined in this Section that are at or below maximum rents
| ||
and are occupied by households with household incomes at | ||
or below maximum income limits; or | ||
(2) except as defined in subparagraphs (E), (F), and
| ||
(G) of paragraph (1) of subsection (f) of this Section,
| ||
prior to the newly constructed residential real property | ||
or improvements to existing residential real property |
located in a low affordability community being
put in | ||
service, the owner of the residential real property
| ||
commits that, for a period of 30 years after the newly
| ||
constructed residential real property or improvements to
| ||
existing residential real property are put in service, at
| ||
least 20% of the multifamily building's units will have
| ||
rents as defined in this Section that are at or below
| ||
maximum rents and are occupied by households with | ||
household incomes at or below maximum income limits. | ||
If a reduction in assessed value is granted under one | ||
special assessment program provided for in this Section, then | ||
that same residential real property is not eligible for an | ||
additional special assessment program under this Section at | ||
the same time. | ||
(d) The amount of the reduction in assessed value for | ||
residential real property meeting the conditions set forth in | ||
subparagraph (1) of subsection (c) shall be calculated as | ||
follows: | ||
(1) if the owner of the residential real property | ||
commits for a period of at least 10 years that at least 15% | ||
but fewer than 35% of the multifamily building's units | ||
have rents at or below maximum rents and are occupied by | ||
households with household incomes at or below maximum | ||
income limits, the assessed value of the property used to | ||
calculate the tax bill shall be reduced by an amount equal | ||
to 25% of the assessed value of the property as determined |
by the assessor for the property in the current taxable | ||
year for the newly constructed residential real property | ||
or based on the improvements to an existing residential | ||
real property; and | ||
(2) if the owner of the residential real property | ||
commits for a period of at least 10 years that at least 35% | ||
of the multifamily building's units have rents at or below | ||
maximum rents and are occupied by households with | ||
household incomes at or below maximum income limits, the | ||
assessed value of the property used to calculate the tax | ||
bill shall be reduced by an amount equal to 35% of the | ||
assessed value of the property as determined by the | ||
assessor for the property in the current assessment year | ||
for the newly constructed residential real property or | ||
based on the improvements to an existing residential real | ||
property. | ||
(e) The amount of the reduction for residential real | ||
property meeting the conditions set forth in subparagraph (2) | ||
of subsection (c) shall be calculated as follows: | ||
(1) for the first, second, and third taxable year | ||
after the residential real property is placed in service, | ||
the residential real property is entitled to a reduction | ||
in its assessed value in an amount equal to the difference | ||
between the assessed value in the year for which the | ||
incentive is sought and the assessed value for the | ||
residential real property in the base year; |
(2) for the fourth, fifth, and sixth taxable year | ||
after the residential real property is placed in service, | ||
the property is entitled to a reduction in its assessed | ||
value in an amount equal to 80% of the difference between | ||
the assessed value in the year for which the incentive is | ||
sought and the assessed value for the residential real | ||
property in the base year; | ||
(3) for the seventh, eighth, and ninth taxable year | ||
after the property is placed in service, the residential | ||
real property is entitled to a reduction in its assessed | ||
value in an amount equal to 60% of the difference between | ||
the assessed value in the year for which the incentive is | ||
sought and the assessed value for the residential real | ||
property in the base year; | ||
(4) for the tenth, eleventh, and twelfth taxable year | ||
after the residential real property is placed in service, | ||
the residential real property is entitled to a reduction | ||
in its assessed value in an amount equal to 40% of the | ||
difference between the assessed value in the year for | ||
which the incentive is sought and the assessed value for | ||
the residential real property in the base year; and | ||
(5) for the thirteenth through the thirtieth taxable | ||
year after the residential real property is placed in | ||
service, the residential real property is entitled to a | ||
reduction in its assessed value in an amount equal to 20% | ||
of the difference between the assessed value in the year |
for which the incentive is sought and the assessed value | ||
for the residential real property in the base year. | ||
(f) Application requirements. | ||
(1) In order to receive the reduced valuation under | ||
this Section, the owner must submit an application | ||
containing the following information to the chief county | ||
assessment officer for review in the form and by the date | ||
required by the chief county assessment officer: | ||
(A) the owner's name; | ||
(B) the postal address and permanent index number | ||
or numbers of the parcel or parcels for which the owner | ||
is applying to receive reduced valuation under this | ||
Section; | ||
(C) a deed or other instrument conveying the | ||
parcel or parcels to the current owner; | ||
(D) written evidence that the new construction or | ||
qualifying rehabilitation has been completed with | ||
respect to the residential real property, including, | ||
but not limited to, copies of building permits, a | ||
notarized contractor's affidavit, and photographs of | ||
the interior and exterior of the building after new | ||
construction or rehabilitation is completed; | ||
(E) written evidence that the residential real | ||
property meets local building codes, or if there are | ||
no local building codes, Housing Quality Standards, as | ||
determined by the United States Department of Housing |
and Urban Development; | ||
(F) a list identifying the affordable units in | ||
residential real property and a written statement that | ||
the affordable units are comparable to the market rate | ||
units in terms of unit type, number of bedrooms per | ||
unit, quality of exterior appearance, energy | ||
efficiency, and overall quality of construction; | ||
(G) a written schedule certifying the rents in | ||
each affordable unit and a written statement that | ||
these rents do not exceed the maximum rents allowable | ||
for the area in which the residential real property is | ||
located; | ||
(H) documentation from the administering agency | ||
verifying the owner's participation in a qualifying | ||
income-based rental subsidy program as defined in | ||
subsection (e) of this Section if units receiving | ||
rental subsidies are to be counted among the | ||
affordable units in order to meet the thresholds | ||
defined in this Section; | ||
(I) a written statement identifying the household | ||
income for every household occupying an affordable | ||
unit and certifying that the household income does not | ||
exceed the maximum income limits allowable for the | ||
area in which the residential real property is | ||
located; | ||
(J) a written statement that the owner has |
verified and retained documentation of household | ||
income for every household occupying an affordable | ||
unit; and | ||
(K) any additional information consistent with | ||
this Section as reasonably required by the chief | ||
county assessment officer, including, but not limited | ||
to, any information necessary to ensure compliance | ||
with applicable local ordinances and to ensure the | ||
owner is complying with the provisions of this | ||
Section. | ||
(1.1) In order for a development to receive the | ||
reduced valuation under subsection (e), the owner must | ||
provide evidence to the county assessor's office of a | ||
fully executed project labor agreement entered into with | ||
the applicable local building trades council, prior to | ||
commencement of any and all construction, building, | ||
renovation, demolition, or any material change to the | ||
structure or land. | ||
(2) The application requirements contained in | ||
paragraph (1) of subsection (f) are continuing | ||
requirements for the duration of the reduction in assessed | ||
value received and may be annually or periodically | ||
verified by the chief county assessment officer for the | ||
county whereby the benefit is being issued. | ||
(3) In lieu of submitting an application containing | ||
the information prescribed in paragraph (1) of subsection |
(f), the chief county assessment officer may allow for | ||
submission of a substantially similar certification | ||
granted by the Illinois Housing Development Authority or a | ||
comparable local authority provided that the chief county | ||
assessment officer independently verifies the veracity of | ||
the certification with the Illinois Housing Development | ||
Authority or comparable local authority. | ||
(4) The chief county assessment officer shall notify | ||
the owner as to whether or not the property meets the | ||
requirements of this Section. If the property does not | ||
meet the requirements of this Section, the chief county | ||
assessment officer shall provide written notice of any | ||
deficiencies to the owner, who shall then have 30 days | ||
from the date of notification to provide supplemental | ||
information showing compliance with this Section. The | ||
chief county assessment officer shall, in its discretion, | ||
grant additional time to cure any deficiency. If the owner | ||
does not exercise this right to cure the deficiency, or if | ||
the information submitted, in the sole judgment of the | ||
chief county assessment officer, is insufficient to meet | ||
the requirements of this Section, the chief county | ||
assessment officer shall provide a written explanation of | ||
the reasons for denial. | ||
(5) The chief county assessment officer may charge a | ||
reasonable application fee to offset the administrative | ||
expenses associated with the program. |
(6) The reduced valuation conferred by this Section is | ||
limited as follows: | ||
(A) The owner is eligible to apply for the reduced | ||
valuation conferred by this Section beginning in the | ||
first assessment year after the effective date of this | ||
amendatory Act of the 102nd General Assembly through | ||
December 31, 2027. If approved, the reduction will be | ||
effective for the current assessment year, which will | ||
be reflected in the tax bill issued in the following | ||
calendar year. Owners that are approved for the | ||
reduced valuation under paragraph (1) of subsection | ||
(c) of this Section before December 31, 2027 shall, at | ||
minimum, be eligible for annual renewal of the reduced | ||
valuation during an initial 10-year period if annual | ||
certification requirements are met for each of the 10 | ||
years, as described in subparagraph (B) of paragraph | ||
(4) of subsection (d) of this Section. | ||
(B) Property receiving a reduction outlined in | ||
paragraph (1) of subsection (c) of this Section shall | ||
continue to be eligible for an initial period of up to | ||
10 years if annual certification requirements are met | ||
for each of the 10 years, but shall be extended for up | ||
to 2 additional 10-year periods with annual renewals | ||
if the owner continues to meet the requirements of | ||
this Section, including annual certifications, and | ||
excluding the requirements regarding new construction |
or qualifying rehabilitation defined in subparagraph | ||
(D) of paragraph (1) of this subsection. | ||
(C) The annual certification materials in the year | ||
prior to final year of eligibility for the reduction | ||
in assessed value must include a dated copy of the | ||
written notice provided to tenants informing them of | ||
the date of the termination if the owner is not seeking | ||
a renewal. | ||
(D) If the property is sold or transferred, the | ||
purchaser or transferee must comply with all | ||
requirements of this Section, excluding the | ||
requirements regarding new construction or qualifying | ||
rehabilitation defined in subparagraph (D) of | ||
paragraph (1) of this subsection, in order to continue | ||
receiving the reduction in assessed value. Purchasers | ||
and transferees who comply with all requirements of | ||
this Section excluding the requirements regarding new | ||
construction or qualifying rehabilitation defined in | ||
subparagraph (D) of paragraph (1) of this subsection | ||
are eligible to apply for renewal on the schedule set | ||
by the initial application. | ||
(E) The owner may apply for the reduced valuation | ||
if the residential real property meets all | ||
requirements of this Section and the newly constructed | ||
residential real property or improvements to existing | ||
residential real property were put in service on or |
after January 1, 2015. However, the initial 10-year | ||
eligibility period or 30-year eligibility period, | ||
depending on the applicable program, shall be reduced | ||
by the number of years between the placed in service | ||
date and the date the owner first receives this | ||
reduced valuation. | ||
(F) The owner may apply for the reduced valuation | ||
within 2 years after the newly constructed residential | ||
real property or improvements to existing residential | ||
real property are put in service. However, the initial | ||
10-year eligibility period or 30-year eligibility | ||
period, depending on the applicable program, shall be | ||
reduced for the number of years between the placed in | ||
service date and the date the owner first receives | ||
this reduced valuation. | ||
(G) Owners of a multifamily building receiving a | ||
reduced valuation through the Cook County Class 9 | ||
program during the year in which this amendatory Act | ||
of the 102nd General Assembly takes effect shall be | ||
deemed automatically eligible for the reduced | ||
valuation defined in paragraph (1) of subsection (c) | ||
of this Section in terms of meeting the criteria for | ||
new construction or substantial rehabilitation for a | ||
specific multifamily building regardless of when the | ||
newly constructed residential real property or | ||
improvements to existing residential real property |
were put in service. If a Cook County Class 9 owner had | ||
Class 9 status revoked on or after January 1, 2017 but | ||
can provide documents sufficient to prove that the | ||
revocation was in error or any deficiencies leading to | ||
the revocation have been cured, the chief county | ||
assessment officer may deem the owner to be eligible. | ||
However, owners may not receive both the reduced | ||
valuation under this Section and the reduced valuation | ||
under the Cook County Class 9 program in any single | ||
assessment year. In addition, the number of years | ||
during which an owner has participated in the Class 9 | ||
program shall count against the 3 10-year periods of | ||
eligibility for the reduced valuation as defined in | ||
subparagraph (1) of subsection (c) of this Section. | ||
(H) At the completion of the assessment reduction | ||
period described in this Section: the entire parcel | ||
will be assessed as otherwise provided by law. | ||
(e) As used in this Section: | ||
"Affordable units" means units that have rents that do not | ||
exceed the maximum rents as defined in this Section. | ||
"Assessed value for the residential real property in the | ||
base year" means the value in effect at the end of the taxable | ||
year prior to the latter of: (1) the date of initial | ||
application; or (2) the date on which 20% of the total number | ||
of units in the property are occupied by eligible tenants | ||
paying eligible rent under this Section. |
"Household income" includes the annual income for all the | ||
people who occupy a housing unit that is anticipated to be | ||
received from a source outside of the family during the | ||
12-month period following admission or the annual | ||
recertification, including related family members and all the | ||
unrelated people who share the housing unit. Household income | ||
includes the total of the following income sources: wages, | ||
salaries and tips before any payroll deductions; net business | ||
income; interest and dividends; payments in lieu of earnings, | ||
such as unemployment and disability compensation, worker's | ||
compensation and severance pay; Social Security income, | ||
including lump sum payments; payments from insurance policies, | ||
annuities, pensions, disability benefits and other types of | ||
periodic payments, alimony, child support, and other regular | ||
monetary contributions; and public assistance, except for | ||
assistance from the Supplemental Nutrition Assistance Program | ||
(SNAP). "Household income" does not include: earnings of | ||
children under age 18; temporary income such as cash gifts; | ||
reimbursement for medical expenses; lump sums from | ||
inheritance, insurance payments, settlements for personal or | ||
property losses; student financial assistance paid directly to | ||
the student or to an educational institution; foster child | ||
care payments; receipts from government-funded training | ||
programs; assistance from the Supplemental Nutrition | ||
Assistance Program (SNAP). | ||
"Low affordability community" means (1) a municipality or |
jurisdiction with less than 1,000,000 inhabitants in which 40% | ||
or less of its total year-round housing units are affordable, | ||
as determined by the Illinois Housing Development Authority | ||
during the exemption determination process under the | ||
Affordable Housing Planning and Appeal Act; (2) "D" zoning | ||
districts as now or hereafter designated in the Chicago Zoning | ||
Ordinance; or (3) a jurisdiction located in a municipality | ||
with 1,000,000 or more inhabitants that has been designated as | ||
a low affordability community by passage of a local ordinance | ||
by that municipality, specifying the census tract or property | ||
by permanent index number or numbers. | ||
"Maximum income limits" means the maximum regular income | ||
limits for 60% of area median income for the geographic area in | ||
which the multifamily building is located for multifamily | ||
programs as determined by the United States Department of | ||
Housing and Urban Development and published annually by the | ||
Illinois Housing Development Authority. | ||
"Maximum rent" means the maximum regular rent for 60% of | ||
the area median income for the geographic area in which the | ||
multifamily building is located for multifamily programs as | ||
determined by the United States Department of Housing and | ||
Urban Development and published annually by the Illinois | ||
Housing Development Authority. To be eligible for the reduced | ||
valuation defined in this Section, maximum rents are to be | ||
consistent with the Illinois Housing Development Authority's | ||
rules; or if the owner is leasing an affordable unit to a |
household with an income at or below the maximum income limit | ||
who is participating in qualifying income-based rental subsidy | ||
program, "maximum rent" means the maximum rents allowable | ||
under the guidelines of the qualifying income-based rental | ||
subsidy program. | ||
"Qualifying income-based rental subsidy program" means a | ||
Housing Choice Voucher issued by a housing authority under | ||
Section 8 of the United States Housing Act of 1937, a tenant | ||
voucher converted to a project-based voucher by a housing | ||
authority or any other program administered or funded by a | ||
housing authority, the Illinois Housing Development Authority, | ||
another State agency, a federal agency, or a unit of local | ||
government where participation is limited to households with | ||
incomes at or below the maximum income limits as defined in | ||
this Section and the tenants' portion of the rent payment is | ||
based on a percentage of their income or a flat amount that | ||
does not exceed the maximum rent as defined in this Section. | ||
"Qualifying rehabilitation" means, at a minimum, | ||
compliance with local building codes and the replacement or | ||
renovation of at least 2 primary building systems to be | ||
approved for the reduced valuation under paragraph (1) of | ||
subsection (d) of this Section and at least 5 primary building | ||
systems to be approved for the reduced valuation under | ||
subsection (e) of this Section. Although the cost of each | ||
primary building system may vary, to be approved for the | ||
reduced valuation under paragraph (1) of subsection (d) of |
this Section, the combined expenditure for making the building | ||
compliant with local codes and replacing primary building | ||
systems must be at least $8 per square foot for work completed | ||
between January 1 of the year in which this amendatory Act of | ||
the 102nd General Assembly takes effect and December 31 of the | ||
year in which this amendatory Act of the 102nd General | ||
Assembly takes effect and, in subsequent years, $8 adjusted by | ||
the Consumer Price Index for All Urban Consumers, as published | ||
annually by the U.S. Department of Labor. To be approved for | ||
the reduced valuation under paragraph (2) of subsection (d) of | ||
this Section, the combined expenditure for making the building | ||
compliant with local codes and replacing primary building | ||
systems must be at least $12.50 per square foot for work | ||
completed between January 1 of the year in which this | ||
amendatory Act of the 102nd General Assembly takes effect and | ||
December 31 of the year in which this amendatory Act of the | ||
102nd General Assembly takes effect, and in subsequent years, | ||
$12.50 adjusted by the Consumer Price Index for All Urban | ||
Consumers, as published annually by the U.S. Department of | ||
Labor. To be approved for the reduced valuation under | ||
subsection (e) of this Section, the combined expenditure for | ||
making the building compliant with local codes and replacing | ||
primary building systems must be at least $60 per square foot | ||
for work completed between January 1 of the year that this | ||
amendatory Act of the 102nd General Assembly becomes effective | ||
and December 31 of the year that this amendatory Act of the |
102nd General Assembly becomes effective and, in subsequent | ||
years, $60 adjusted by the Consumer Price Index for All Urban | ||
Consumers, as published annually by the U.S. Department of | ||
Labor. "Primary building systems", together with their related | ||
rehabilitations, specifically approved for this program are: | ||
(1) Electrical. All electrical work must comply with | ||
applicable codes; it may consist of a combination of any | ||
of the following alternatives: | ||
(A) installing individual equipment and appliance | ||
branch circuits as required by code (the minimum being | ||
a kitchen appliance branch circuit); | ||
(B) installing a new emergency service, including | ||
emergency lighting with all associated conduits and | ||
wiring; | ||
(C) rewiring all existing feeder conduits ("home | ||
runs") from the main switchgear to apartment area | ||
distribution panels; | ||
(D) installing new in-wall conduits for | ||
receptacles, switches, appliances, equipment, and | ||
fixtures; | ||
(E) replacing power wiring for receptacles, | ||
switches, appliances, equipment, and fixtures; | ||
(F) installing new light fixtures throughout the | ||
building including closets and central areas; | ||
(G) replacing, adding, or doing work as necessary | ||
to bring all receptacles, switches, and other |
electrical devices into code compliance; | ||
(H) installing a new main service, including | ||
conduit, cables into the building, and main disconnect | ||
switch; and | ||
(I) installing new distribution panels, including | ||
all panel wiring, terminals, circuit breakers, and all | ||
other panel devices. | ||
(2) Heating. All heating work must comply with | ||
applicable codes; it may consist of a combination of any | ||
of the following alternatives: | ||
(A) installing a new system to replace one of the | ||
following heat distribution systems: | ||
(i) piping and heat radiating units, including | ||
new main line venting and radiator venting; or | ||
(ii) duct work, diffusers, and cold air | ||
returns; or | ||
(iii) any other type of existing heat | ||
distribution and radiation/diffusion components; | ||
or | ||
(B) installing a new system to replace one of the | ||
following heat generating units: | ||
(i) hot water/steam boiler; | ||
(ii) gas furnace; or | ||
(iii) any other type of existing heat | ||
generating unit. | ||
(3) Plumbing. All plumbing work must comply with |
applicable codes. Replace all or a part of the in-wall | ||
supply and waste plumbing; however, main supply risers, | ||
waste stacks and vents, and code-conforming waste lines | ||
need not be replaced. | ||
(4) Roofing. All roofing work must comply with | ||
applicable codes; it may consist of either of the | ||
following alternatives, separately or in combination: | ||
(A) replacing all rotted roof decks and | ||
insulation; or | ||
(B) replacing or repairing leaking roof membranes | ||
(10% is the suggested minimum replacement of | ||
membrane); restoration of the entire roof is an | ||
acceptable substitute for membrane replacement. | ||
(5) Exterior doors and windows. Replace the exterior | ||
doors and windows. Renovation of ornate entry doors is an | ||
acceptable substitute for replacement. | ||
(6) Floors, walls, and ceilings. Finishes must be | ||
replaced or covered over with new material. Acceptable | ||
replacement or covering materials are as follows: | ||
(A) floors must have new carpeting, vinyl tile, | ||
ceramic, refurbished wood finish, or a similar | ||
substitute; | ||
(B) walls must have new drywall, including joint | ||
taping and painting; or | ||
(C) new ceilings must be either drywall, suspended | ||
type, or a similar material. |
(7) Exterior walls. | ||
(A) replace loose or crumbling mortar and masonry | ||
with new material; | ||
(B) replace or paint wall siding and trim as | ||
needed; | ||
(C) bring porches and balconies to a sound | ||
condition; or | ||
(D) any combination of (A), (B), and (C). | ||
(8) Elevators. Where applicable, at least 4 of the | ||
following 7 alternatives must be accomplished: | ||
(A) replace or rebuild the machine room controls | ||
and refurbish the elevator machine (or equivalent | ||
mechanisms in the case of hydraulic elevators); | ||
(B) replace hoistway electro-mechanical items | ||
including: ropes, switches, limits, buffers, levelers, | ||
and deflector sheaves (or equivalent mechanisms in the | ||
case of hydraulic elevators); | ||
(C) replace hoistway wiring; | ||
(D) replace door operators and linkage; | ||
(E) replace door panels at each opening; | ||
(F) replace hall stations, car stations, and | ||
signal fixtures; or | ||
(G) rebuild the car shell and refinish the | ||
interior. | ||
(9) Health and safety. | ||
(A) Install or replace fire suppression systems; |
(B) install or replace security systems; or | ||
(C) environmental remediation of lead-based paint, | ||
asbestos, leaking underground storage tanks, or radon. | ||
(10) Energy conservation improvements undertaken to | ||
limit the amount of solar energy absorbed by a building's | ||
roof or to reduce energy use for the property, including, | ||
but not limited to, any of the following activities: | ||
(A) installing or replacing reflective roof | ||
coatings (flat roofs); | ||
(B) installing or replacing R-49 roof insulation; | ||
(C) installing or replacing R-19 perimeter wall | ||
insulation; | ||
(D) installing or replacing insulated entry doors; | ||
(E) installing or replacing Low E, insulated | ||
windows; | ||
(F) installing or replacing WaterSense labeled | ||
plumbing fixtures; | ||
(G) installing or replacing 90% or better sealed | ||
combustion heating systems; | ||
(H) installing Energy Star hot water heaters; | ||
(I) installing or replacing mechanical ventilation | ||
to exterior for kitchens and baths; | ||
(J) installing or replacing Energy Star | ||
appliances; | ||
(K) installing or replacing Energy Star certified | ||
lighting in common areas; or |
(L) installing or replacing grading and | ||
landscaping to promote on-site water retention if the | ||
retained water is used to replace water that is | ||
provided from a municipal source. | ||
(11) Accessibility improvements. All accessibility | ||
improvements must comply with applicable codes. An owner | ||
may make accessibility improvements to residential real | ||
property to increase access for people with disabilities. | ||
As used in this paragraph (11), "disability" has the | ||
meaning given to that term in the Illinois Human Rights | ||
Act. As used in this paragraph (11), "accessibility | ||
improvements" means a home modification listed under the | ||
Home Services Program administered by the Department of | ||
Human Services (Part 686 of Title 89 of the Illinois | ||
Administrative Code) including, but not limited to: | ||
installation of ramps, grab bars, or wheelchair lifts; | ||
widening doorways or hallways; re-configuring rooms and | ||
closets; and any other changes to enhance the independence | ||
of people with disabilities. | ||
(12) Any applicant who has purchased the property in | ||
an arm's length transaction not more than 90 days before | ||
applying for this reduced valuation may use the cost of | ||
rehabilitation or repairs required by documented code | ||
violations, up to a maximum of $2 per square foot, to meet | ||
the qualifying rehabilitation requirements. |
Section 925. The Affordable Housing Planning and Appeal | ||
Act is amended by changing Sections 15, 25, and 50 and by | ||
adding Section 70 as follows:
| ||
(310 ILCS 67/15)
| ||
Sec. 15. Definitions. As used in this Act:
| ||
"Affordable housing" means housing that has a value or | ||
cost or rental amount
that is within the means of a household | ||
that may occupy moderate-income or
low-income
housing. In the | ||
case of owner-occupied dwelling units,
housing that is | ||
affordable means housing in which mortgage, amortization,
| ||
taxes, insurance, and condominium or association fees, if any, | ||
constitute no
more than 30% of the gross annual household | ||
income for a household of the size
that may occupy the unit. In | ||
the case of dwelling units for rent, housing that
is | ||
affordable means housing for which the rent , any required | ||
parking, maintenance, landlord-imposed fees, and utilities | ||
constitute no more
than 30% of the gross annual household | ||
income for a household of the size that
may occupy the unit.
| ||
"Affordable housing developer" means a nonprofit entity, | ||
limited equity
cooperative or public agency, or private | ||
individual, firm, corporation, or
other entity
seeking to | ||
build an affordable housing development.
| ||
"Affordable housing development" means (i) any housing | ||
that is subsidized by
the federal or State government or (ii) | ||
any housing in which at least 20% of
the dwelling units are |
subject to covenants or restrictions that require that
the | ||
dwelling units be sold or rented at prices that preserve them | ||
as affordable
housing for a period of at least 15 years, in the | ||
case of owner-occupied housing, and
at least 30 years, in the | ||
case of rental housing.
| ||
"Approving authority" means the governing body of the | ||
county or municipality. | ||
"Area median household income" means the median household | ||
income adjusted for family size for applicable income limit | ||
areas as determined annually by the federal Department of | ||
Housing and Urban Development under Section 8 of the United | ||
States Housing Act of 1937.
| ||
"Community land trust" means a private, not-for-profit | ||
corporation organized exclusively for charitable, cultural, | ||
and other purposes and created to acquire and own land for the | ||
benefit of the local government, including the creation and | ||
preservation of affordable housing.
| ||
"Development" means any building, construction, | ||
renovation, or excavation or
any material change in any | ||
structure or land, or change in the
use
of such structure or | ||
land, that results in a net increase in the number of dwelling | ||
units in a structure or on a parcel of land by more than one | ||
dwelling unit.
| ||
"Exempt local government" means any local government in | ||
which at least 10% of
its total year-round housing units are | ||
affordable, as determined by the
Illinois Housing Development |
Authority pursuant to Section 20 of this Act; or
any | ||
municipality under 1,000 population.
| ||
"Household" means the person or persons occupying a | ||
dwelling unit.
| ||
"Housing trust fund" means a separate fund, either within | ||
a local government or between local governments pursuant to | ||
intergovernmental agreement, established solely for the | ||
purposes authorized in subsection (d) of Section 25, | ||
including, without limitation, the holding and disbursing of | ||
financial resources to address the affordable housing needs of | ||
individuals or households that may occupy low-income or | ||
moderate-income housing.
| ||
"Local government" means a county or municipality.
| ||
"Low-income housing" means housing that is affordable, | ||
according to the
federal Department of Housing and Urban | ||
Development, for either home ownership
or rental, and that is | ||
occupied, reserved, or marketed for occupancy by
households | ||
with a gross household income that does not exceed 50% of the | ||
area median
household income.
| ||
"Moderate-income housing" means housing that is | ||
affordable, according to the
federal Department of Housing and | ||
Urban Development, for either home ownership
or
rental, and | ||
that is occupied, reserved, or marketed for occupancy by | ||
households
with a gross household income that is greater than | ||
50% but does not exceed 80%
of the area median household | ||
income.
|
"Non-appealable local government requirements" means all | ||
essential
requirements that protect the public health and | ||
safety, including any local
building, electrical, fire, or | ||
plumbing code requirements or those requirements
that
are | ||
critical to the protection or preservation of the environment.
| ||
(Source: P.A. 98-287, eff. 8-9-13.)
| ||
(310 ILCS 67/25)
| ||
Sec. 25. Affordable housing plan.
| ||
(a) Prior to April 1, 2005, all non-exempt local | ||
governments must approve an
affordable housing plan. Any local | ||
government that is determined by the Illinois Housing | ||
Development Authority under Section 20 to be non-exempt for | ||
the first time based on the recalculation of U.S. Census | ||
Bureau data after 2010 shall have 18 months from the date of | ||
notification of its non-exempt status to approve an affordable | ||
housing plan under this Act.
On and after the effective date of | ||
this amendatory Act of the 102nd General Assembly, an | ||
affordable housing plan, or any revision thereof, shall not be | ||
adopted by a non-exempt local government until notice and | ||
opportunity for public hearing have first been afforded.
| ||
(b) For the purposes of this Act, the affordable housing | ||
plan shall consist
of at least the following:
| ||
(i) a statement of the total number of affordable | ||
housing units that are
necessary to exempt the local | ||
government from the operation of this Act as
defined in |
Section 15 and Section 20;
| ||
(ii) an identification of lands within the | ||
jurisdiction that are most
appropriate for the | ||
construction of affordable housing and of existing
| ||
structures most appropriate for conversion to, or | ||
rehabilitation for,
affordable housing,
including a | ||
consideration of lands and structures of developers who | ||
have
expressed a commitment to provide affordable housing | ||
and lands and structures
that are publicly or | ||
semi-publicly owned;
| ||
(iii) incentives that local governments may provide | ||
for the purpose of
attracting affordable housing to their | ||
jurisdiction; and
| ||
(iv) a goal of a minimum of 15% of all new development | ||
or
redevelopment within the local government that would be | ||
defined as affordable
housing in this Act; or a minimum of | ||
a 3 percentage point increase in the
overall percentage of | ||
affordable housing within its jurisdiction, as
described | ||
in subsection (b) of Section 20 of this Act; or a minimum | ||
of a total of 10% affordable
housing
within its | ||
jurisdiction as described in subsection (b) of Section 20 | ||
of this Act. These goals may be met, in whole or in part, | ||
through the creation of affordable housing units under | ||
intergovernmental agreements as described in subsection | ||
(e) of this Section.
| ||
(c) Within 60 days after the adoption of an affordable |
housing plan or
revisions to its affordable housing plan, the | ||
local government must submit a
copy of that plan to the | ||
Illinois Housing Development Authority.
| ||
(d) In order to promote the goals of this Act and to | ||
maximize the creation, establishment, or preservation of | ||
affordable housing throughout the State of Illinois, a local | ||
government, whether exempt or non-exempt under this Act, may | ||
adopt the following measures to address the need for | ||
affordable housing: | ||
(1) Local governments may individually or jointly | ||
create or participate in a housing trust fund or otherwise | ||
provide funding or support for the purpose of supporting | ||
affordable housing, including, without limitation, to | ||
support the following affordable housing activities: | ||
(A) Housing production, including, without | ||
limitation, new construction, rehabilitation, and | ||
adaptive re-use. | ||
(B) Acquisition, including, without limitation, | ||
land, single-family homes, multi-unit buildings, and | ||
other existing structures that may be used in whole or | ||
in part for residential use. | ||
(C) Rental payment assistance. | ||
(D) Home-ownership purchase assistance. | ||
(E) Preservation of existing affordable housing. | ||
(F) Weatherization. | ||
(G) Emergency repairs. |
(H) Housing related support services, including | ||
homeownership education and financial counseling. | ||
(I) Grants or loans to not-for-profit | ||
organizations engaged in addressing the affordable | ||
housing needs of low-income and moderate-income | ||
households. | ||
Local governments may authorize housing trust funds to | ||
accept and utilize funds, property, and other resources | ||
from all proper and lawful public and private sources so | ||
long as those funds are used solely for addressing the | ||
affordable housing needs of individuals or households that | ||
may occupy low-income or moderate-income housing. | ||
(2) A local government may create a community land | ||
trust, which may: acquire developed or undeveloped | ||
interests in real property and hold them for affordable | ||
housing purposes; convey such interests under long-term | ||
leases, including ground leases; convey such interests for | ||
affordable housing purposes; and retain an option to | ||
reacquire any such real property interests at a price | ||
determined by a formula ensuring that such interests may | ||
be utilized for affordable housing purposes. | ||
(3) A local government may use its zoning powers to | ||
require the creation and preservation of affordable | ||
housing as authorized under Section 5-12001 of the | ||
Counties Code and Section 11-13-1 of the Illinois | ||
Municipal Code. |
(4) A local government may accept donations of money | ||
or land for the purpose of addressing the affordable | ||
housing needs of individuals or households that may occupy | ||
low-income or moderate-income housing. These donations may | ||
include, without limitation, donations of money or land | ||
from persons , as long as the donations are demonstrably | ||
used to preserve, create, or subsidize low-income housing | ||
or moderate-income housing within the jurisdiction in lieu | ||
of building affordable housing . | ||
(e) In order to encourage regional cooperation and the | ||
maximum creation of affordable housing in areas lacking such | ||
housing in the State of Illinois, any non-exempt local | ||
government may enter into intergovernmental agreements under | ||
subsection (e) of Section 25 with local governments within 10 | ||
miles of its corporate boundaries in order to create | ||
affordable housing units to meet the goals of this Act. A | ||
non-exempt local government may not enter into an | ||
intergovernmental agreement, however, with any local | ||
government that contains more than 25% affordable housing as | ||
determined under Section 20 of this Act. All intergovernmental | ||
agreements entered into to create affordable housing units to | ||
meet the goals of this Act must also specify the basis for | ||
determining how many of the affordable housing units created | ||
will be credited to each local government participating in the | ||
agreement for purposes of complying with this Act. All | ||
intergovernmental agreements entered into to create affordable |
housing units to meet the goals of this Act must also specify | ||
the anticipated number of newly created affordable housing | ||
units that are to be credited to each local government | ||
participating in the agreement for purposes of complying with | ||
this Act. In specifying how many affordable housing units will | ||
be credited to each local government, the same affordable | ||
housing unit may not be counted by more than one local | ||
government.
| ||
(f) To enforce compliance with the provisions of this | ||
Section, and to encourage local governments to submit their | ||
affordable housing plans to the Illinois Housing Development | ||
Authority in a timely manner, the Illinois Housing Development | ||
Authority shall notify any local government and may notify the | ||
Office of the Attorney General that the local government is in | ||
violation of State law if the Illinois Housing Development | ||
Authority finds that the affordable housing plan submitted is | ||
not in substantial compliance with this Section or that the | ||
local government failed to submit an affordable housing plan. | ||
The Attorney General may enforce this provision of the Act by | ||
an action for mandamus or injunction or by means of other | ||
appropriate relief. | ||
(Source: P.A. 98-287, eff. 8-9-13.)
| ||
(310 ILCS 67/50)
| ||
Sec. 50. Housing Appeals Board.
| ||
(a) Prior to January 1, 2008, a Housing Appeals Board |
shall be created
consisting of 7 members appointed by the | ||
Governor as follows:
| ||
(1) a retired circuit judge or retired appellate | ||
judge, who shall act as
chairperson;
| ||
(2) a zoning board of appeals member;
| ||
(3) a planning board member;
| ||
(4) a mayor or municipal council or board member;
| ||
(5) a county board member;
| ||
(6) an affordable housing developer; and
| ||
(7) an affordable housing advocate.
| ||
In addition, the Chairman of the Illinois Housing | ||
Development Authority, ex
officio, shall serve as a non-voting | ||
member.
No more than 4 of the appointed members may be from the | ||
same political party.
Appointments under items (2), (3), and | ||
(4) shall be from local governments that
are not exempt under | ||
this Act.
| ||
(b) Initial terms of 4 members designated by the Governor | ||
shall be for 2
years. Initial terms of 3 members designated by | ||
the Governor shall be for one
year. Thereafter, members shall | ||
be appointed for terms of 2 years. After a member's term | ||
expires, the member shall continue to serve until a successor | ||
is appointed. There shall be no limit to the number of terms an | ||
appointee may serve. A member
shall receive no
compensation | ||
for his or her services, but shall be reimbursed by the State | ||
for
all reasonable expenses actually and necessarily incurred | ||
in the performance of
his or her
official duties. The board |
shall hear all petitions for review filed under this
Act and | ||
shall conduct all hearings in accordance with the rules and | ||
regulations
established by the chairperson. The Illinois | ||
Housing Development Authority
shall provide space and
clerical | ||
and other assistance that the Board may require.
| ||
(c) (Blank).
| ||
(d) To the extent possible, any vacancies in the Housing | ||
Appeals Board shall be filled within 90 days of the vacancy. | ||
(Source: P.A. 98-287, eff. 8-9-13.)
| ||
(310 ILCS 67/70 new) | ||
Sec. 70. Home rule application. Unless otherwise provided | ||
under this Act or otherwise in accordance with State law, a | ||
unit of local government, including a home rule unit, or any | ||
non-home rule county within the unincorporated territory of | ||
the county, may not regulate the activities described in this | ||
Act in a manner more restrictive than the regulation of those | ||
activities by the State under this Act. This Section is a | ||
limitation under subsection (i) of Section 6 of Article VII of | ||
the Illinois Constitution on the concurrent exercise by home | ||
rule units of powers and functions exercised by the State. | ||
Section 999. Effective date. This Act takes effect upon | ||
becoming law. |