SB2037eng 103RD GENERAL ASSEMBLY

SB2037 Engrossed LRB103 28079 AWJ 54458 b

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 Community Land Trust Task Force Act.

Section 5. Findings. The General Assembly finds:

(1) Homeownership is the principal way families build wealth, yet homeownership is most inaccessible to communities of color in Illinois, who are 1.6 times less likely than white people to be homeowners.

(2) The property tax sale system contributes to the racial wealth gap in homeownership by transferring home equity from communities of color to investors, threatening community stability, and increasing housing costs.

(3) Homeownership serves as a critical tool to close the racial wealth gap by enabling historically excluded families to build generational wealth.

(4) Community land trusts curb displacement and foster generational wealth by creating opportunities for permanently affordable homeownership using a onetime subsidy.

(5) Community land trusts preserve naturally occurring affordable housing by closing the affordability gap so that low-income to moderate-income households can live in high-opportunity neighborhoods.

(6) Community land trusts can be a powerful solution for homeowners facing delinquent property taxes or other financial threats to continued homeownership that keeps residents in their homes and creates permanently affordable properties for future buyers.

(7) Local community land trusts currently operate to successfully preserve and create affordable housing in urban areas in Illinois, but there is need for centralized support and coordination for the establishment of local community land trusts across the State.

(8) The State of Illinois commits to becoming a national exemplar by supporting and encouraging the establishment of community land trusts across the State.

Section 10. Community Land Trust Task Force.

(a) The Community Land Trust Task Force is created within the Illinois Housing Development Authority and shall consist of the following members:

(1) The Governor, or his or her designee.

(2) The Executive Director of the Illinois Housing Development Authority, or his or her designee.

(3) The Director of Revenue, or his or her designee.

(4) The Secretary of Human Services, or his or her designee.

(5) The Director of Commerce and Economic Opportunity, or his or her designee.

(6) One member representing the Governor's Office of Management and Budget, appointed by the Governor.

(7) One member of the Senate, appointed by the President of the Senate.

(8) One member of the Senate, appointed by the Minority Leader of the Senate.

(9) One member of the House of Representatives, appointed by the Speaker of the House of Representatives.

(10) One member of the House of Representatives, appointed by the Minority Leader of the House of Representatives.

(11) One representative from each of the 3 Illinois-based community land trusts that were established for the purpose of supporting affordable housing, appointed by the Governor.

(12) One representative of a university located in Illinois who has expertise on housing studies, appointed by the Governor.

(13) One member representing a national laboratory that provides technical support to advance affordable housing solutions, appointed by the Governor.

(14) One member representing a statewide organization that advocates for affordable housing in Illinois, appointed by the Governor.

(15) One member from the nongovernmental sector, appointed by the Governor.

(b) All members of the Task Force shall serve without compensation. Task Force members shall be appointed within 30 days after the effective date of this Act. If a vacancy occurs in the membership, a replacement will be appointed by the co-chairs of the Task Force.

(c) The following individuals shall serve as co-chairs of the Task Force: (i) the Executive Director of the Illinois Housing Development Authority, or his or her designee; (ii) the member of the Senate appointed by the President of the Senate; and (iii) the member of the House of Representatives appointed by the Speaker of the House of Representatives. Additionally, the member from the nongovernmental sector shall serve as vice-chair of the Task Force.

Section 15. Administrative support. The Illinois Housing Development Authority shall provide administrative and technical support to the Task Force, shall be responsible for administering the Task Force's operations, and shall ensure that the duties of the Task Force are completed.

Section 20. Meetings. The Task Force shall hold its initial meetings within 60 days after the effective date of this Act. The Task Force shall meet at least 6 times before December 31, 2024. Additional meetings may be called at the direction of the co-chairs.

Section 25. Duties. The Community Land Trust Task Force shall:

(1) collect data regarding the current use of community land trusts in Illinois and opportunities for expansion statewide, including the number of properties that could be acquired by a land trust through the property tax sale system;

(2) study the use of community land trusts as a tool to create permanently affordable housing, including as an alternative to property tax sales;

(3) analyze centralized models that support the use of community land trusts to create and maintain affordable housing used in other states and countries worldwide;

(4) create a cost-benefit analysis describing any savings to the State if a community land trust model was pursued, including when compared to current affordable rental housing programs and savings across other sectors;

(5) outline financing and lending opportunities for community land trusts to make homeownership attainable to historically marginalized communities;

(6) examine the impact substantial investments in community land trusts would have on closing the racial wealth gap in Illinois;

(7) examine any different considerations in the use of community land trusts in gentrifying and disinvested communities;

(8) examine incentive packages to encourage current property owners to sell their homes to a community land trust;

(9) explore complementary uses of community land trusts and housing cooperatives; and

(10) prepare a final report making specific recommendations of legislative and budgetary action that supports the mission of community land trusts to foster affordable housing and homeownership.

Section 30. Report. The Task Force shall submit its final report to the Governor and General Assembly no later than December 31, 2024. The final report shall be made available on the Illinois Housing Development Authority's website for viewing by the general public.

Section 35. Dissolution; repeal. The Task Force is dissolved and this Act is repealed on December 31, 2024.

Section 99. Effective date. This Act takes effect upon becoming law.