Public Act 93-0595

HB0625 Enrolled                      LRB093 05848 DRJ 05941 b

    AN ACT in relation to housing.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  1.  Short  title.  This  Act may be cited as the
Affordable Housing Planning and Appeal Act.

    Section 5.  Findings. The legislature finds and  declares
that:
         (1)  there   exists   a   shortage   of  affordable,
    accessible, safe, and sanitary housing in the State;
         (2)  it is imperative that action be taken to assure
    the availability of workforce and retirement housing; and
         (3)  local governments in the State that do not have
    sufficient affordable housing are encouraged to assist in
    providing affordable housing opportunities to assure  the
    health, safety, and welfare of all citizens of the State.

    Section  10.  Purpose.  The  purpose  of  this  Act is to
encourage  counties   and   municipalities   to   incorporate
affordable  housing  within their housing stock sufficient to
meet  the  needs  of  their  county  or  community.  Further,
affordable housing developers who believe that they have been
unfairly  treated  due  to  the  fact  that  the  development
contains  affordable  housing  may  seek  relief  from  local
ordinances and regulations that may inhibit the  construction
of   affordable   housing  needed  to  serve  low-income  and
moderate-income households in this State.

    Section 15.  Definitions. As used in this Act:
    "Affordable housing" means housing that has a sales price
or rental amount that is within the means of a household that
may occupy moderate-income or low-income housing. In the case
of dwelling units for sale, 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 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 for-sale housing, and at least 30 years,  in  the
case of rental housing.
    "Approving  authority"  means  the  governing body of the
county or municipality.
    "Development"   means   any    building,    construction,
renovation,  or  excavation or any material change in the use
or appearance of any structure or in  the  land  itself;  the
division of land into parcels; or any change in the intensity
or use of land, such as an increase in the number of dwelling
units in a structure or a change to a commercial use.
    "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.
    "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
median gross household income for households of the same size
within the county in which the housing is located.
    "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  median  gross  household
income  for  households of the same size within the county in
which the housing is located.
    "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.

    Section 20.  Determination of exempt local governments.
    (a)  Beginning  January  1,  2006,  the  Illinois Housing
Development Authority shall determine which local governments
are exempt and not exempt from  the  operation  of  this  Act
based  on an identification of the total number of year-round
housing units in the most recent decennial  census  for  each
local  government  within  the  State  and by an inventory of
for-sale and rental affordable housing units, as  defined  in
this Act, for each local government from the decennial census
and other relevant sources.
    (b)  The  Illinois  Housing  Development  Authority shall
make this determination by:
         (i)  totaling the number of for-sale  housing  units
    in   each   local   government  that  are  affordable  to
    households with a gross household  income  that  is  less
    than 80% of the median household income within the county
    or primary metropolitan statistical area;
         (ii)  totaling  the  number  of rental units in each
    local government that are affordable to households with a
    gross household income that  is  less  than  60%  of  the
    median  household  income  within  the  county or primary
    metropolitan statistical area;
         (iii)  adding the  number  of  for-sale  and  rental
    units  for each local government from items (i) and (ii);
    and
         (iv)  dividing the sum of (iii) above by  the  total
    number   of   year-round   housing  units  in  the  local
    government as contained in the  latest  decennial  census
    and  multiplying  the  result  by  100  to  determine the
    percentage  of  affordable  housing  units   within   the
    jurisdiction of the local government.
    (c)  Beginning  January  1,  2006,  the  Illinois Housing
Development Authority shall publish on an annual basis a list
of exempt and non-exempt local governments and the data  that
it  used  to  calculate  its determination. The data shall be
shown for each local government in  the  State  and  for  the
State as a whole.
    (d)  A   local  government  or  developer  of  affordable
housing may appeal the determination of the Illinois  Housing
Development  Authority  as to whether the local government is
exempt or non-exempt under this Act  in  connection  with  an
appeal under Section 30 of this Act.
    Section 25.  Affordable housing plan.
    (a)   Prior   to  July  1,  2004,  all  non-exempt  local
governments must approve an affordable housing plan.
    (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 defined in Section 20 of this Act; or a
    minimum of a total of 10% of  affordable  housing  within
    its jurisdiction.
    (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.
    Section 30.  Appeal to State Housing Appeals Board.
    (a)  Beginning  January  1,  2006,  an affordable housing
developer whose application is either denied or approved with
conditions that in his or her judgment render  the  provision
of  affordable  housing  infeasible may, within 45 days after
the decision, submit  to  the  State  Housing  Appeals  Board
information  regarding  why  the developer believes he or she
was unfairly  denied  or  conditions  were  placed  upon  the
tentative  approval  of  the  development  unless  the  local
government that rendered the decision is exempt under Section
15  or  Section  20 of this Act. The Board shall maintain all
information forwarded to them by developers and shall compile
and  make  available  an  annual   report   summarizing   the
information thus received.
    (b)  Beginning  January  1,  2009,  an affordable housing
developer whose application is either denied or approved with
conditions that in his or her judgment render  the  provision
of  affordable  housing  infeasible may, within 45 days after
the decision, appeal  to  the  State  Housing  Appeals  Board
challenging  that  decision unless the municipality or county
that rendered the decision is exempt under Section 15 of this
Act. The developer must submit information regarding why  the
developer   believes   he  or  she  was  unfairly  denied  or
unreasonable  conditions  were  placed  upon  the   tentative
approval of the development.
    (c)  Beginning  January 1, 2009, the Board shall render a
decision on the appeal within 120 days after  the  appeal  is
filed.  In  its  determination  of an appeal, the Board shall
conduct a de novo review of  the  matter.  In  rendering  its
decision,  the Board shall consider the facts and whether the
developer was treated in a manner that places an undue burden
on the development due  to  the  fact  that  the  development
contains affordable housing as defined in this Act. The Board
shall  further consider any action taken by the unit of local
government in regards to granting waivers or  variances  that
would have the effect of creating or prohibiting the economic
viability  of  the  development. In any proceeding before the
Board, the developer bears the burden of  demonstrating  that
he or she has been unfairly denied or unreasonable conditions
have   been  placed  upon  the  tentative  approval  for  the
application for an affordable housing development.
    (d)  The Board shall dismiss any appeal if:
         (i)  the local government has adopted an  affordable
    housing  plan  as  defined  in Section 25 of this Act and
    submitted that plan to the Illinois  Housing  Development
    Authority within the time frame required by this Act; and
         (ii)  the   local  government  has  implemented  its
    affordable  housing  plan  and  has  met  its   goal   as
    established  in its affordable housing plan as defined in
    Section 25 of this Act.
    (e)  The Board shall dismiss any appeal if the reason for
denying  the  application  or  placing  conditions  upon  the
approval is a  non-appealable  local  government  requirement
under Section 15 of this Act.
    (f)  The   Board  may  affirm,  reverse,  or  modify  the
conditions of, or add conditions to, a decision made  by  the
approving authority. The decision of the Board constitutes an
order  directed  to the approving authority and is binding on
the local government.
    (g)  The appellate court has the  exclusive  jurisdiction
to review decisions of the Board.

    Section  40.  Nonresidential  development  as  part of an
affordable housing development.
    (a)  An  affordable  housing  developer  who  applies  to
develop property  that  contains  nonresidential  uses  in  a
nonresidential zoning district must designate either at least
50%  of the area or at least 50% of the square footage of the
development  for  residential  use.  Unless  adjacent  to   a
residential  development,  the nonresidential zoning district
shall not include property zoned  industrial.  The  applicant
bears  the burden of proof of demonstrating that the purposes
of a nonresidential zoning district will not be  impaired  by
the  construction  of housing in the zoning district and that
the  public  health  and  safety  of  the  residents  of  the
affordable  housing  will  not  be  adversely   affected   by
nonresidential  uses either in existence or permitted in that
zoning  district.  The  development   should   be   completed
simultaneously to the extent possible and shall be unified in
design.
    (b)  For  purposes  of subsection (a), the square footage
of the  residential  portion  of  the  development  shall  be
measured  by  the  interior  floor  area  of  dwelling units,
excluding that portion that is unheated.  Square  footage  of
the  nonresidential  portion shall be calculated according to
the gross leasable area.

    Section 50.  Housing Appeals Board.
    (a)  Prior to July 1, 2006, 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. 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)  The Illinois Housing Development Authority may adopt
such other rules and regulations as it  deems  necessary  and
appropriate  to  carry out the Board's responsibilities under
this Act and to provide direction to  local  governments  and
affordable housing developers.