Illinois General Assembly - Full Text of SB1926

LRB104 11184 KTG 21266 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB1926

Introduced 2/6/2025, by Sen. Michael W. Halpin

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.1030 new

Creates the Illinois Middle-Income Housing Grant Pilot Act. Provides that subject to appropriation for this purpose, the Illinois Housing Development Authority (Authority) shall establish and administer a 3-year Illinois Middle-Income Housing Grant Pilot Program to facilitate housing development in targeted communities across the State of Illinois. Provides that eligible grant applicants shall include developers specifically in any community with an authorized River Edge Redevelopment Zone. Provides that any community within this designation is eligible to apply to support projects within such communities. Permits the Authority to enter into a subcontract agreement with developers with qualified residences. Provides that awards can be used for both redevelopment and new development projects; and that grant proposals may be submitted to the Authority directly to be used as a part of a development agreement with an eligible developer. Contains provisions on rules to implement the pilot program, grant award amounts, project costs limits, and other matters. Creates the Illinois Middle-Income Housing Grant Pilot Program Fund to consist of any moneys appropriated for the pilot program. Amends the State Finance Act by adding the Illinois Middle-Income Housing Grant Pilot Program Fund to the list of State funds.

A BILL FOR

AN ACT concerning 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 Illinois Middle-Income Housing Grant Pilot Act.

Section 5. Definitions. As used in this Act.

"Authority" means the Illinois Housing Development Authority.

"Developer" includes for profit and nonprofit developers, as well as land banks.

"Development costs" means any costs associated with the construction or rehabilitation of a qualified residence.

"Household" means all persons using the qualified residence as their principal place of residence upon the sale or lease of the qualified residence by the developer.

"Household income" means the combined federal adjusted gross income of the members of the household for the taxable year immediately preceding the year in which the qualified residence is sold or rented to the members of the household.

"Qualified residence" means a single-family residence that (i) is new construction or has been rehabilitated with $30,000 or more in rehabilitative development costs incurred by the taxpayer and (ii) is sold or rented under a contract with a term of one year or longer to one or more individuals with a combined household income that exceeds 80% of the median household income in Illinois but does not exceed 140% of the median household income in Illinois. The residence must also have at least a $1,000 local match investment.

Section 10. Illinois Middle-Income Housing Grant Pilot Program.

(a) Subject to appropriation for this purpose, the Authority shall establish and administer a 3-year Illinois Middle-Income Housing Grant Pilot Program to facilitate housing development in targeted communities across the State of Illinois. Eligible grant applicants shall include developers specifically in any community with an authorized River Edge Redevelopment Zone. Any community within this designation is eligible to apply to support projects within such communities. The Authority may enter into a subcontract agreement with developers with qualified residences.

Awards can be used for both redevelopment and new development projects.

Grant proposals may be submitted to the Authority directly to be used as a part of a development agreement with an eligible developer.

(b) The Authority shall:

(1) Adopt rules to implement and administer the Illinois Middle-Income Housing Grant Pilot Program, including rules concerning applications.

(2) Adopt rules for owner occupied housing, substantially similar to the rental unit rules.

(3) Create a simple certification process for cities to follow to ensure quick access to funds to facilitate project development.

(4) Keep record of all requests, including requests above and beyond current funding availability to demonstrate statewide need.

(c) Grant awards shall be available for eligible developers at $20,000 per unit, calculated as 10% of the eligible cost of development up to $200,000.

(1) The overall cost of the project must remain less than $300,000 per unit.

(2) Awards shall not exceed $1,000,000 per project.

(d) Developers must certify that rental units will be available at or below the U.S. Department of Housing and Urban Development's recommended price point for 140% of area median income.

(1) The units must remain rented at such threshold for 10 years - as certified by the developer and city, and submitted to the Authority.

(2) The Authority shall not require income verification by a developer. This requirement shall only apply to units for which the subsidy is utilized to ensure a mix of incomes in housing developments.

(e) The Illinois Middle-Income Housing Grant Pilot Program Fund is created as a special fund in the State treasury. The fund shall consist of any moneys appropriated to the Illinois Housing Development Authority for the Illinois Middle-Income Housing Grant Pilot Program and all interest earned on moneys in the fund. Moneys in the Fund shall be expended for the Illinois Middle-Income Housing Grant Pilot Program and for no other purpose.

Section 15. The State Finance Act is amended by adding Section 5.1030 as follows:

(30 ILCS 105/5.1030 new)

Sec. 5.1030. The Illinois Middle-Income Housing Grant Pilot Program Fund.