Bill Text: IL HB2621 | 2021-2022 | 102nd General Assembly | Chaptered

---

Bill Title: Creates the COVID-19 Affordable Housing Grant Program Act. Provides that the Illinois Housing Development 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. Contains provisions concerning financing. Amends the Illinois Procurement Code. Provides that the Code does not apply to certain contracts entered into by the Illinois Housing Development Authority. Amends the Illinois Housing Development Act. Makes changes concerning bonds and notes issued by the Illinois Housing Development Authority. Provides that the Illinois Housing Development 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 (rather than $3,600,000,000), excluding bonds and notes issued to refund outstanding bonds and notes. Provides that of the authorized aggregate principal amount of $7,200,000,000 (rather than $3,600,000,000), the amount of $150,000,000 shall be used for the specified purposes. Amends the Illinois Income Tax Act. Extends the tax credit for affordable housing donations until December 31, 2026. Amends the Illinois Housing Development Act. Provides that the amount of tax credits reserved by the administrative housing agency for an approved project under the affordable housing tax donation credit program is limited to $32,850,352 in State fiscal years 2022 and 2023 and shall be increased by 5% in each fiscal year thereafter. Amends the Property Tax Code. Makes changes concerning the valuation of low-income housing projects that qualify for the Low-Income Housing Tax Credit under Section 42 of the Internal Revenue Code. Provides for a reduction in assessed value for affordable rental housing construction or rehabilitation. Amends the Affordable Housing Planning and Appeal Act. Provides that, for the purposes of the Act, rent includes any required costs for parking, maintenance, or landlord-imposed fees. Provides that an affordable housing plan, or any revision thereof, shall not be adopted by a nonexempt local government until notice and opportunity for public hearing have first been afforded. Provides that any vacancies in the Housing Appeals Board shall be filled within 90 days of the vacancy. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 45-2)

Status: (Passed) 2021-07-29 - Public Act . . . . . . . . . 102-0175 [HB2621 Detail]

Download: Illinois-2021-HB2621-Chaptered.html

---

Public Act 102-0175
HB2621 Enrolled LRB102 11691 SPS 17025 b
AN ACT concerning regulation.
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
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:
(20 ILCS 3805/7.28)
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
donations as set forth in this Section.
(a) In this Section:
"Administrative housing agency" means either the Authority
or an agency of the City of Chicago.
"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
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

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).
"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
this State, (iii) general operating support, or (iv) technical
assistance as defined by this Section.
"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.
"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.
"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.
"Median income" means the incomes that are determined by
the federal Department of Housing and Urban Development
guidelines and adjusted for family size.
"Project" means an affordable housing project, an
employer-assisted housing project, general operating support,
or technical assistance.
"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
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
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
designated as a community development corporation by the
United States government under Title VII of the Economic
Opportunity Act of 1964.
"Tax credit" means a tax credit allowed under Section 214
of the Illinois Income Tax Act.
"Technical assistance" means any cost incurred by a
sponsor for project planning, assistance with applying for
financing, or counseling services provided to prospective
homebuyers.
(b) A sponsor must apply to an administrative housing
agency for approval of the project. The administrative housing
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.
(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
credit.
(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
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.
(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:
(1) for employer-assisted housing projects, $2
million; and
(2) for general operating support and technical

assistance, $1 million.
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.
(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
not cause undue hardship on homeowners.
(Source: P.A. 92-491, eff. 8-23-01; 93-369, eff. 7-24-03.)
(20 ILCS 3805/22) (from Ch. 67 1/2, par. 322)
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.
(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
specified in Sections 7.23 and 7.24 of this Act.

(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
families as provided in this Act.
(Source: P.A. 87-250; 87-884; 88-93.)
Section 905. The Illinois Procurement Code is amended by
changing Section 1-10 as follows:
(30 ILCS 500/1-10)
Sec. 1-10. Application.
(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.
(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:
(1) Contracts between the State and its political
subdivisions or other governments, or between State
governmental bodies, except as specifically provided in
this Code.
(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.
(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).
(9) Procurement expenditures by the Illinois
Conservation Foundation when only private funds are used.
(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.