HB3207 101ST GENERAL ASSEMBLY

LRB101 09953 AWJ 55055 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB3207

Introduced , by Rep. Aaron M. Ortiz

SYNOPSIS AS INTRODUCED:

See Index

Creates the Rent Control Act. Establishes County Rent Control Boards in every county on the date all initial members of a Board are elected and qualified. Provides for nomination and election of Board members. Includes provisions relating to qualifications of members, vacancy of a Board member seat, and meetings of a Board. Provides for duties of a Board, including establishing countywide rent-controlled amounts for renting to households of specified income levels and calculating an average rent for dwellings in the county. Provides that a Board must establish regulations concerning rent for households of specified income levels, including: restrictions on increasing rent-controlled amounts; notice to tenants before increasing rent; creation of a reserve account by property owners for repairs and capital improvements; and other regulations. Defines terms. Limits home rule powers. Amends the Election Code by making conforming changes relating to the election of Board members. Amends the Illinois Income Tax Act. Adds an income tax credit equal to the difference between the rent-controlled amount and the average rent established by a County Rent Control Board and an income tax credit for an amount equal to the amount of capital improvements to property a taxpayer owns and rents to households of specified income levels. Repeals the Rent Control Preemption Act.

FISCAL NOTE ACT MAY APPLY	HOME RULE NOTE ACT MAY APPLY	HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
	STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY

A BILL FOR

AN ACT concerning local government.

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 Rent Control Act.

Section 5. Definitions. As used in this Act:

"Average rent" means the average of the rents charged for dwellings with the same number of bedrooms.

"Board" means a County Rent Control Board.

"Consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the rent of primary residence by all urban renters, United States city average, all items, 1982-84 = 100, or as otherwise redefined by a Board.

"Dwelling" means units in privately-owned housing developments and single-family homes. "Dwelling" does not include subsidized housing, owner-occupied developments with fewer than 6 units, or commercial units in mixed-use developments.

"Person with a disability" has the meaning given to that term in paragraph (2) of Subsection 2FF of the Consumer Fraud and Deceptive Business Practices Act.

"Subsidized housing" has the meaning given to that term in Section 3 of the Subsidized Housing Joint Occupancy Act.

"Tier 1 household" means a household earning not more than 60% of a county's area median income as calculated by the Department of Housing and Urban Development.

"Tier 2 household" means a household earning not more than 120% of a county's area median income as calculated by the Department of Housing and Urban Development.

Section 10. Establishment of County Rent Control Board; membership.

(a) A County Rent Control Board in each county is established on the date all initial members of a Board are elected and qualified as provided in this Section.

(b) A Board shall consist of the following members:

(1) Two members who are residents of the county, from Tier 1 households, and renting their residence.

(2) Two members who are residents of the county, from Tier 2 households, and renting their residence.

(3) Three members who own property in the county.

(4) Two members who are representatives of an organization that advocates for low-income housing residents.

(c) Candidates for Board membership shall be nominated in the same manner and form as prescribed by the general election law, except that (i) party name or affiliation may not appear on any nominating petition, (ii) each nominating petition shall contain the candidate's residence address, which must include the candidate's county of residence, (iii) each nominating petition shall specify the member position he or she is running for under paragraphs (1) through (4) of subsection (b), and (iv) each nominating petition shall provide documentation evidencing the qualifications necessary under paragraphs (1) through (4) of subsection (b). Candidates for election as Board members shall file nomination petitions in the manner and at the time prescribed by the general election law.

(d) Members shall be elected initially in the 2021 consolidated election, and the members initially elected shall meet within 21 days after the election and determine by lot the terms for which they each shall serve. Of the members initially elected, 3 members shall each serve 2-year terms and 4 members shall each serve 4-year terms. At each consolidated election thereafter, each member elected to succeed a member whose term expires shall hold office for a term of 4 years. The term of office of each member elected shall commence on the 1st Monday of the month following the month of that member's election, and each member shall serve until her or his successor is elected and has qualified.

(e) The office of a member shall be deemed vacant and shall be filled by appointment pursuant to paragraph (f) for the remainder of the term if any member elected under paragraphs (1) through (4) of subsection (b) does not continue to meet the requirements of the paragraph under which he or she was elected.

(f) If a vacancy in a Board occurs, either by death, resignation, failure to qualify, change of residence, change of income level, or for any other reason, a majority of the remaining members of a Board shall fill the vacancy by appointment of a person who shall meet the qualifications of the vacant member position under paragraphs (1) through (4) of subsection (b). The appointed member shall then assume the duties of the office for the unexpired term to which the person was appointed.

Section 15. Board duties. A Board has the following duties:

(1) The Board must provide oversight to the units of local government within its county in implementing the requirements of this Act.

(2) The Board must establish regulations and penalties consistent with this Act and enforce those regulations and penalties for current dwellings and dwellings built in the future.

(3) The Board must monitor rental rates in the county.

(4) The Board must set a countywide rent-controlled amount for Tier 1 households and Tier 2 households with consideration of rates of vacancy and rent burden among Tier 1 and Tier 2 households as well as separate rates for persons over 65 and persons with a disability who are in Tier 1 and Tier 2 households.

(5) The Board must yearly calculate an average rent for dwellings with various bedroom numbers in the county.

(6) The Board must decide which consumer price index should be used to calculate rent-controlled amounts.

Section 20. Board meetings.

(a) Board meetings shall be held in accordance with the Open Meetings Act.

(b) A Board shall initially meet no later than 60 days after the Board is established to establish regulations as set forth in Section 25.

(c) A Board shall meet at least quarterly and at other times as called by the chairperson of the Board.

Section 25. Rent control regulation. A Board shall establish regulations consistent with the following for Tier 1 and Tier 2 households:

(1) The Board may adjust the countywide rent-controlled amount no more than once every 12 months. An increase in rent under this paragraph is restricted to the increase in consumer price index-u plus: no more than 1% for a maximum total increase of 5% annually for Tier 1 households; or no more than 2% for a maximum total increase of 6% annually for Tier 2 households. Adjustments in rent for persons over 65 years old or persons with a disability under this paragraph are restricted to the increase in consumer price index-u exclusively for a maximum total increase of 4% annually.

(2) Before a property owner may increase rent based upon a rent-control amount adjustment under paragraph (1), the property owner must provide a tenant at least 90 days' notice.

(3) A property owner may increase a tenant's rent above the rent-controlled amount by no more than 10% if the property owner petitions the Board for a waiver in the event of a natural disaster or calamity outside of the property owner's control requiring extensive repairs or major capital improvements. Increased rent may not exceed 10% of the monthly rent-controlled amount for more than a single 12-month period. If the waiver is approved, then the property owner must give 30 days' notice to the tenant before increasing rent.

(4) A property owner must create and fund a reserve account for repairs and capital improvements. The property owner must deposit, at least monthly, 10% of the property owner's rent proceeds, after monthly expenses are paid, into the reserve account. If a property owner is unable to deposit the minimum of 10% into the reserve account, the property owner must apply to the County Rent Control Board for a hardship waiver and the Board may waive the requirements of this paragraph for a period of up to 120 days.

(5) A Board must require that property owners demonstrate suitable documented grounds for the eviction of tenants pursuant to the tenants' lease agreements and existing law.

(6) If a tenant who is not in a Tier 1 or Tier 2 household moves into a dwelling previously occupied by a Tier 1 or 2 household, then the property owner must maintain the rent in that dwelling at the rent-controlled amount for a period of not less than 3 years.

Section 30. Home rule. The rent control regulations in this Act are exclusive powers and functions of the State. A home rule unit may not regulate rent control. This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

Section 98. Applicability. The provisions of this Act may be enforced only against property owners who rent dwellings to Tier 1 or Tier 2 households.

Section 900. The Election Code is amended by changing Section 2A-1.2 as follows:

(10 ILCS 5/2A-1.2) (from Ch. 46, par. 2A-1.2)

Sec. 2A-1.2. Consolidated schedule of elections - offices designated.

(a) At the general election in the appropriate even-numbered years, the following offices shall be filled or shall be on the ballot as otherwise required by this Code:

(1) Elector of President and Vice President of the United States;

(2) United States Senator and United States Representative;

(3) State Executive Branch elected officers;

(4) State Senator and State Representative;

(5) County elected officers, including State's Attorney, County Board member, County Commissioners, and elected President of the County Board or County Chief Executive;

(6) Circuit Court Clerk;

(7) Regional Superintendent of Schools, except in counties or educational service regions in which that office has been abolished;

(8) Judges of the Supreme, Appellate and Circuit Courts, on the question of retention, to fill vacancies and newly created judicial offices;

(9) (Blank);

(10) Trustee of the Metropolitan Sanitary District of Chicago, and elected Trustee of other Sanitary Districts;

(11) Special District elected officers, not otherwise designated in this Section, where the statute creating or authorizing the creation of the district requires an annual election and permits or requires election of candidates of political parties.

(b) At the general primary election:

(1) in each even-numbered year candidates of political parties shall be nominated for those offices to be filled at the general election in that year, except where pursuant to law nomination of candidates of political parties is made by caucus.

(2) in the appropriate even-numbered years the political party offices of State central committeeperson, township committeeperson, ward committeeperson, and precinct committeeperson shall be filled and delegates and alternate delegates to the National nominating conventions shall be elected as may be required pursuant to this Code. In the even-numbered years in which a Presidential election is to be held, candidates in the Presidential preference primary shall also be on the ballot.

(3) in each even-numbered year, where the municipality has provided for annual elections to elect municipal officers pursuant to Section 6(f) or Section 7 of Article VII of the Constitution, pursuant to the Illinois Municipal Code or pursuant to the municipal charter, the offices of such municipal officers shall be filled at an election held on the date of the general primary election, provided that the municipal election shall be a nonpartisan election where required by the Illinois Municipal Code. For partisan municipal elections in even-numbered years, a primary to nominate candidates for municipal office to be elected at the general primary election shall be held on the Tuesday 6 weeks preceding that election.

(4) in each school district which has adopted the provisions of Article 33 of the School Code, successors to the members of the board of education whose terms expire in the year in which the general primary is held shall be elected.

(c) At the consolidated election in the appropriate odd-numbered years, the following offices shall be filled:

(1) Municipal officers, provided that in municipalities in which candidates for alderman or other municipal office are not permitted by law to be candidates of political parties, the runoff election where required by law, or the nonpartisan election where required by law, shall be held on the date of the consolidated election; and provided further, in the case of municipal officers provided for by an ordinance providing the form of government of the municipality pursuant to Section 7 of Article VII of the Constitution, such offices shall be filled by election or by runoff election as may be provided by such ordinance;

(2) Village and incorporated town library directors;

(3) City boards of stadium commissioners;

(4) Commissioners of park districts;

(5) Trustees of public library districts;

(6) Special District elected officers, not otherwise designated in this Section, where the statute creating or authorizing the creation of the district permits or requires election of candidates of political parties;

(7) Township officers, including township park commissioners, township library directors, and boards of managers of community buildings, and Multi-Township Assessors;

(8) Highway commissioners and road district clerks;

(9) Members of school boards in school districts which adopt Article 33 of the School Code;

(10) The directors and chair of the Chain O Lakes - Fox River Waterway Management Agency;

(11) Forest preserve district commissioners elected under Section 3.5 of the Downstate Forest Preserve District Act;

(12) Elected members of school boards, school trustees, directors of boards of school directors, trustees of county boards of school trustees (except in counties or educational service regions having a population of 2,000,000 or more inhabitants) and members of boards of school inspectors, except school boards in school districts that adopt Article 33 of the School Code;

(13) Members of Community College district boards;

(14) Trustees of Fire Protection Districts;

(15) Commissioners of the Springfield Metropolitan Exposition and Auditorium Authority;

(16) Elected Trustees of Tuberculosis Sanitarium Districts;

(17) Elected Officers of special districts not otherwise designated in this Section for which the law governing those districts does not permit candidates of political parties.

(18) Members of County Rent Control Boards under the Rent Control Act.

(d) At the consolidated primary election in each odd-numbered year, candidates of political parties shall be nominated for those offices to be filled at the consolidated election in that year, except where pursuant to law nomination of candidates of political parties is made by caucus, and except those offices listed in paragraphs (12) through (17) of subsection (c).

At the consolidated primary election in the appropriate odd-numbered years, the mayor, clerk, treasurer, and aldermen shall be elected in municipalities in which candidates for mayor, clerk, treasurer, or alderman are not permitted by law to be candidates of political parties, subject to runoff elections to be held at the consolidated election as may be required by law, and municipal officers shall be nominated in a nonpartisan election in municipalities in which pursuant to law candidates for such office are not permitted to be candidates of political parties.

At the consolidated primary election in the appropriate odd-numbered years, municipal officers shall be nominated or elected, or elected subject to a runoff, as may be provided by an ordinance providing a form of government of the municipality pursuant to Section 7 of Article VII of the Constitution.

(e) (Blank).

(f) At any election established in Section 2A-1.1, public questions may be submitted to voters pursuant to this Code and any special election otherwise required or authorized by law or by court order may be conducted pursuant to this Code.

Notwithstanding the regular dates for election of officers established in this Article, whenever a referendum is held for the establishment of a political subdivision whose officers are to be elected, the initial officers shall be elected at the election at which such referendum is held if otherwise so provided by law. In such cases, the election of the initial officers shall be subject to the referendum.

Notwithstanding the regular dates for election of officials established in this Article, any community college district which becomes effective by operation of law pursuant to Section 6-6.1 of the Public Community College Act, as now or hereafter amended, shall elect the initial district board members at the next regularly scheduled election following the effective date of the new district.

(g) At any election established in Section 2A-1.1, if in any precinct there are no offices or public questions required to be on the ballot under this Code then no election shall be held in the precinct on that date.

(h) There may be conducted a referendum in accordance with the provisions of Division 6-4 of the Counties Code.

(Source: P.A. 100-1027, eff. 1-1-19.)

Section 905. The Illinois Income Tax Act is amended by adding Section 229 as follows:

(35 ILCS 5/229 new)

Sec. 229. Rent-controlled property credit; rental property capital improvements credit.

(a) For taxable years beginning after the effective date of this amendatory Act of the 101st General Assembly, there shall be allowed a tax credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to the difference between the rent-controlled amount established by a County Rent Control Board and the county's average rent established by a County Rent Control Board under the Rent Control Act for each dwelling a taxpayer owns and rents to a Tier 1 household or a Tier 2 household, but only if the rent-controlled amount is lower than the average rent.

(b) For taxable years beginning after the effective date of this amendatory Act of the 101st General Assembly, there shall be allowed a tax credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to the amount of capital improvements to property the taxpayer owns that is rented to Tier 1 households or Tier 2 households.

(c) A taxpayer may apply for a tax credit under subsection (a) or (b) or both.

(d) To obtain a tax credit or tax credits pursuant to this Section, the taxpayer must apply with the Department of Commerce and Economic Opportunity. The Department of Commerce and Economic Opportunity shall determine the amount of eligible amounts under subsection (a) or capital improvements under subsection (b). Upon approval of a tax credit, the Department of Commerce and Economic Opportunity shall issue a certificate in the amount of the eligible credits. The taxpayer must attach the certificate to the tax return on which the credits are to be claimed. The Department of Commerce and Economic Opportunity may adopt rules to implement this Section.

(e) The tax credit under subsection (a) or (b), or both, may not reduce the taxpayer's liability to less than zero.

(f) As used in this Section:

"Average rent", "dwelling", "Tier 1 household", and "Tier 2 household" have the meanings given to those terms in Section 5 of the Rent Control Act.

"Capital improvements" are capital improvements allowed under 26 U.S.C. 263.

(50 ILCS 825/Act rep.)

Section 910. The Rent Control Preemption Act is repealed.