Public Act 093-0755
 
HB4461 Enrolled LRB093 19051 SJM 44786 b

    AN ACT concerning taxes.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Property Tax Code is amended by changing
Sections 10-235, 10-245, and 10-250 as follows:
 
    (35 ILCS 200/10-235)
    Sec. 10-235. Low-income housing project valuation policy;
intent. It is the policy of this State that low-income housing
projects developed under Section 515 of the federal Housing Act
or that qualify for the low-income housing tax credit under
Section 42 of the Internal Revenue Code shall be valued at 33
and one-third percent of the fair market value of their
economic productivity to the owners of the projects to help
insure that their valuation for property taxation does not
result in taxes so high that rent levels must be raised to
cover this project expense, which can cause excess vacancies,
project loan defaults, and eventual loss of rental housing
facilities for those most in need of them, low-income families
and the elderly. It is the intent of this State that the
valuation required by this Division is the closest
representation of cash value required by law and is the method
established as proper and fair.
(Source: P.A. 92-16, eff. 6-28-01; 93-533, eff. 1-1-04.)
 
    (35 ILCS 200/10-245)
    Sec. 10-245. Method of valuation of low-income housing
projects. Notwithstanding Section 1-55 and except in counties
with a population of more than 200,000 that classify property
for the purposes of taxation, to determine 33 and one-third
percent of the fair cash value of any low-income housing
project developed under the Section 515 program or that
qualifies for the low-income housing tax credit under Section
42 of the Internal Revenue Code, in assessing the project,
local assessment officers must consider the actual or probable
net operating income attributable to the project, using a
vacancy rate of not more than 5%, capitalized at normal market
rates. The interest rate to be used in developing the normal
market value capitalization rate shall be one that reflects the
prevailing cost of cash for other types of commercial real
estate in the geographic market in which the low-income housing
project is located.
(Source: P.A. 93-533, eff. 1-1-04.)
 
    (35 ILCS 200/10-250)
    Sec. 10-250. Certification procedure and effective date of
implementation.
    (a) After (i) an application for a Section 515 low-income
housing project certificate is filed with the State Director of
the United States Department of Agriculture Rural Development
Office in a manner and form prescribed in regulations issued by
the office and (ii) the certificate is issued certifying that
the housing is a Section 515 low-income housing project as
defined in Section 2 of this Act, the certificate must be
presented to the appropriate local assessment officer to
receive the property assessment valuation under this Division.
The local assessment officer must assess the property according
to this Act. Beginning on January 1, 2000 and through taxable
year 2003, all certified Section 515 low-income housing
projects shall be assessed in accordance with Section 10-245.
    (b) Beginning with taxable year 2004, all low-income
housing projects that qualify for the low-income housing tax
credit under Section 42 of the Internal Revenue Code shall be
assessed in accordance with Section 10-245 if the owner or
owners of the low-income housing project certify to the
appropriate local assessment officer that the owner or owners
qualify owner that qualifies for the low-income housing tax
credit under Section 42 of the Internal Revenue Code for the
property.
(Source: P.A. 93-533, eff. 1-1-04.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/16/2004