093_HB0220eng

 
HB0220 Engrossed                     LRB093 04610 RCE 04663 b

 1        AN ACT concerning affordable housing.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  1.  Short  title.  This  Act may be cited as the
 5    Affordable Housing Planning and Appeal Act.

 6        Section 5.  Findings. The legislature finds and  declares
 7    that:
 8             (1)  there   exists   a   shortage   of  affordable,
 9        accessible, safe, and sanitary housing in the State;
10             (2)  it is imperative that action be taken to assure
11        the availability of workforce and retirement housing; and
12             (3)  local governments in the State that do not have
13        sufficient affordable housing are encouraged to assist in
14        providing affordable housing opportunities to assure  the
15        health, safety, and welfare of all citizens of the State.

16        Section  10.  Purpose.  The  purpose  of  this  Act is to
17    encourage  counties   and   municipalities   to   incorporate
18    affordable  housing  within their housing stock sufficient to
19    meet  the  needs  of  their  county  or  community.  Further,
20    affordable housing developers who believe that they have been
21    unfairly  treated  due  to  the  fact  that  the  development
22    contains  affordable  housing  may  seek  relief  from  local
23    ordinances and regulations that may inhibit the  construction
24    of   affordable   housing  needed  to  serve  low-income  and
25    moderate-income households in this State.

26        Section 15.  Definitions. As used in this Act:
27        "Affordable housing" means housing that has a sales price
28    or rental amount that is within the means of a household that
29    may occupy moderate-income or low-income housing. In the case
 
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 1    of dwelling units for sale, housing that is affordable  means
 2    housing  in  which  mortgage, amortization, taxes, insurance,
 3    and condominium or association fees, if  any,  constitute  no
 4    more  than  30%  of  the  gross annual household income for a
 5    household of the size that may occupy the unit. In  the  case
 6    of  dwelling units for rent, housing that is affordable means
 7    housing for which the rent and utilities constitute  no  more
 8    than 30% of the gross annual household income for a household
 9    of the size that may occupy the unit.
10        "Affordable  housing developer" means a nonprofit entity,
11    limited equity  cooperative  or  public  agency,  or  private
12    individual,  firm,  corporation,  or  other entity seeking to
13    build an affordable housing development.
14        "Affordable housing development" means  (i)  any  housing
15    that is subsidized by the federal or State government or (ii)
16    any  housing  in which at least 20% of the dwelling units are
17    subject to covenants or restrictions that  require  that  the
18    dwelling units be sold or rented at prices that preserve them
19    as  affordable  housing for a period of at least 15 years, in
20    the case of for-sale housing, and at least 30 years,  in  the
21    case of rental housing.
22        "Approving  authority"  means  the  governing body of the
23    county or municipality.
24        "Development"   means   any    building,    construction,
25    renovation,  or  excavation or any material change in the use
26    or appearance of any structure or in  the  land  itself;  the
27    division of land into parcels; or any change in the intensity
28    or use of land, such as an increase in the number of dwelling
29    units in a structure or a change to a commercial use.
30        "Exempt  local  government" means any local government in
31    which at least 10% of its total year-round housing units  are
32    affordable, as determined by the Illinois Housing Development
33    Authority  pursuant  to  Section  20  of  this  Act;  or  any
34    municipality under 1,000 population.
 
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 1        "Household"  means  the  person  or  persons  occupying a
 2    dwelling unit.
 3        "Local government" means a county or municipality.
 4        "Low-income housing" means housing  that  is  affordable,
 5    according  to  the  federal  Department  of Housing and Urban
 6    Development, for either home ownership or rental, and that is
 7    occupied, reserved, or marketed for occupancy  by  households
 8    with a gross household income that does not exceed 50% of the
 9    median gross household income for households of the same size
10    within the county in which the housing is located.
11        "Moderate-income   housing"   means   housing   that   is
12    affordable,  according  to  the federal Department of Housing
13    and Urban Development, for either home ownership  or  rental,
14    and  that is occupied, reserved, or marketed for occupancy by
15    households with a gross household income that is greater than
16    50% but does not exceed 80% of  the  median  gross  household
17    income  for  households of the same size within the county in
18    which the housing is located.
19        "Non-appealable local government requirements" means  all
20    essential  requirements  that  protect  the public health and
21    safety, including any local building, electrical, or plumbing
22    code requirements or those requirements that are critical  to
23    the protection or preservation of the environment.

24        Section 20.  Determination of exempt local governments.
25        (a)  Beginning  January  1,  2006,  the  Illinois Housing
26    Development Authority shall determine which local governments
27    are exempt and not exempt from  the  operation  of  this  Act
28    based  on an identification of the total number of year-round
29    housing units in the most recent decennial  census  for  each
30    local  government  within  the  State  and by an inventory of
31    for-sale and rental affordable housing units, as  defined  in
32    this Act, for each local government from the decennial census
33    and other relevant sources.
 
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 1        (b)  The  Illinois  Housing  Development  Authority shall
 2    make this determination by:
 3             (i)  totaling the number of for-sale  housing  units
 4        in   each   local   government  that  are  affordable  to
 5        households with a gross household  income  that  is  less
 6        than 80% of the median household income within the county
 7        or primary metropolitan statistical area;
 8             (ii)  totaling  the  number  of rental units in each
 9        local government that are affordable to households with a
10        gross household income that  is  less  than  60%  of  the
11        median  household  income  within  the  county or primary
12        metropolitan statistical area;
13             (iii)  adding the  number  of  for-sale  and  rental
14        units  for each local government from items (i) and (ii);
15        and
16             (iv)  dividing the sum of (iii) above by  the  total
17        number   of   year-round   housing  units  in  the  local
18        government as contained in the  latest  decennial  census
19        and  multiplying  the  result  by  100  to  determine the
20        percentage  of  affordable  housing  units   within   the
21        jurisdiction of the local government.
22        (c)  Beginning  January  1,  2006,  the  Illinois Housing
23    Development Authority shall publish on an annual basis a list
24    of exempt and non-exempt local governments and the data  that
25    it  used  to  calculate  its determination. The data shall be
26    shown for each local government in  the  State  and  for  the
27    State as a whole.
28        (d)  A   local  government  or  developer  of  affordable
29    housing may appeal the determination of the Illinois  Housing
30    Development  Authority  as to whether the local government is
31    exempt or non-exempt under this Act  in  connection  with  an
32    appeal under Section 30 of this Act.

33        Section 25.  Affordable housing plan.
 
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 1        (a)   Prior   to  July  1,  2004,  all  non-exempt  local
 2    governments must approve an affordable housing plan.
 3        (b)  For the purposes of this Act, the affordable housing
 4    plan shall consist of at least the following:
 5             (i)  a statement of the total number  of  affordable
 6        housing  units  that  are  necessary  to exempt the local
 7        government from the operation of this Act as  defined  in
 8        Section 15 and Section 20;
 9             (ii)  an   identification   of   lands   within  the
10        jurisdiction  that   are   most   appropriate   for   the
11        construction   of  affordable  housing  and  of  existing
12        structures  most  appropriate  for  conversion   to,   or
13        rehabilitation   for,  affordable  housing,  including  a
14        consideration of lands and structures of  developers  who
15        have expressed a commitment to provide affordable housing
16        and   lands   and   structures   that   are  publicly  or
17        semi-publicly owned;
18             (iii)  incentives that local governments may provide
19        for the purpose of attracting affordable housing to their
20        jurisdiction; and
21             (iv)  a  goal  of  a  minimum  of  15%  of  all  new
22        development or redevelopment within the local  government
23        that  would be defined as affordable housing in this Act;
24        or a minimum of a 3  percentage  point  increase  in  the
25        overall  percentage  of  affordable  housing  within  its
26        jurisdiction,  as defined in Section 20 of this Act; or a
27        minimum of a total of 10% of  affordable  housing  within
28        its jurisdiction.
29        (c)  Within  60  days after the adoption of an affordable
30    housing plan or revisions to its affordable housing plan, the
31    local government must submit a  copy  of  that  plan  to  the
32    Illinois Housing Development Authority.

33        Section 30.  Appeal to State Housing Appeals Board.
 
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 1        (a)  Beginning  January  1,  2006,  an affordable housing
 2    developer whose application is either denied or approved with
 3    conditions that in his or her judgment render  the  provision
 4    of  affordable  housing  infeasible may, within 45 days after
 5    the decision, submit  to  the  State  Housing  Appeals  Board
 6    information  regarding  why  the developer believes he or she
 7    was unfairly  denied  or  conditions  were  placed  upon  the
 8    tentative  approval  of  the  development  unless  the  local
 9    government that rendered the decision is exempt under Section
10    15  or  Section  20 of this Act. The Board shall maintain all
11    information forwarded to them by developers and shall compile
12    and  make  available  an  annual   report   summarizing   the
13    information thus received.
14        (b)  Beginning  January  1,  2009,  an affordable housing
15    developer whose application is either denied or approved with
16    conditions that in his or her judgment render  the  provision
17    of  affordable  housing  infeasible may, within 45 days after
18    the decision, appeal  to  the  State  Housing  Appeals  Board
19    challenging  that  decision unless the municipality or county
20    that rendered the decision is exempt under Section 15 of this
21    Act. The developer must submit information regarding why  the
22    developer   believes   he  or  she  was  unfairly  denied  or
23    unreasonable  conditions  were  placed  upon  the   tentative
24    approval of the development.
25        (c)  Beginning  January 1, 2009, the Board shall render a
26    decision on the appeal within 120 days after  the  appeal  is
27    filed.  In  its  determination  of an appeal, the Board shall
28    conduct a de novo review of  the  matter.  In  rendering  its
29    decision,  the Board shall consider the facts and whether the
30    developer was treated in a manner that places an undue burden
31    on the development due  to  the  fact  that  the  development
32    contains affordable housing as defined in this Act. The Board
33    shall  further consider any action taken by the unit of local
34    government in regards to granting waivers or  variances  that
 
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 1    would have the effect of creating or prohibiting the economic
 2    viability  of  the  development. In any proceeding before the
 3    Board, the developer bears the burden of  demonstrating  that
 4    he or she has been unfairly denied or unreasonable conditions
 5    have   been  placed  upon  the  tentative  approval  for  the
 6    application for an affordable housing development.
 7        (d)  The Board shall dismiss any appeal if:
 8             (i)  the local government has adopted an  affordable
 9        housing  plan  as  defined  in Section 25 of this Act and
10        submitted that plan to the Illinois  Housing  Development
11        Authority within the time frame required by this Act; and
12             (ii)  the   local  government  has  implemented  its
13        affordable  housing  plan  and  has  met  its   goal   as
14        established  in its affordable housing plan as defined in
15        Section 25 of this Act.
16        (e)  The Board shall dismiss any appeal if the reason for
17    denying  the  application  or  placing  conditions  upon  the
18    approval is a  non-appealable  local  government  requirement
19    under Section 15 of this Act.
20        (f)  The   Board  may  affirm,  reverse,  or  modify  the
21    conditions of, or add conditions to, a decision made  by  the
22    approving authority. The decision of the Board constitutes an
23    order  directed  to the approving authority and is binding on
24    the local government, which shall forthwith issue any and all
25    necessary  permits  and   approvals   consistent   with   the
26    determination of the Board.
27        (g)  The  appellate  court has the exclusive jurisdiction
28    to review decisions of the Board.

29        Section 40.  Nonresidential development  as  part  of  an
30    affordable housing development.
31        (a)  An  affordable  housing  developer  who  applies  to
32    develop  property  that  contains  nonresidential  uses  in a
33    nonresidential zoning district must designate either at least
 
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 1    50% of the area or at least 50% of the square footage of  the
 2    development   for  residential  use.  Unless  adjacent  to  a
 3    residential development, the nonresidential  zoning  district
 4    shall  not  include  property zoned industrial. The applicant
 5    bears the burden of proof of demonstrating that the  purposes
 6    of  a  nonresidential zoning district will not be impaired by
 7    the construction of housing in the zoning district  and  that
 8    the  public  health  and  safety  of  the  residents  of  the
 9    affordable   housing   will  not  be  adversely  affected  by
10    nonresidential uses either in existence or permitted in  that
11    zoning   district.   The   development  should  be  completed
12    simultaneously to the extent possible and shall be unified in
13    design.
14        (b)  For purposes of subsection (a), the  square  footage
15    of  the  residential  portion  of  the  development  shall be
16    measured by  the  interior  floor  area  of  dwelling  units,
17    excluding  that  portion  that is unheated. Square footage of
18    the nonresidential portion shall be calculated  according  to
19    the gross leasable area.

20        Section 50.  Housing Appeals Board.
21        (a)  Prior to July 1, 2006, a Housing Appeals Board shall
22    be  created consisting of 7 members appointed by the Governor
23    as follows:
24             (1)  a retired circuit judge  or  retired  appellate
25        judge, who shall act as chairperson;
26             (2)  a zoning board of appeals member;
27             (3)  a planning board member;
28             (4)  a mayor or municipal council or board member;
29             (5)  a county board member;
30             (6)  an affordable housing developer; and
31             (7)  an affordable housing advocate.
32        In   addition,  the  Chairman  of  the  Illinois  Housing
33    Development  Authority,  ex  officio,  shall   serve   as   a
 
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 1    non-voting member.
 2        (b)  Initial   terms  of  4  members  designated  by  the
 3    Governor shall be for 2 years. Initial  terms  of  3  members
 4    designated by the Governor shall be for one year. Thereafter,
 5    members  shall  be  appointed  for terms of 2 years. A member
 6    shall receive no compensation for his or  her  services,  but
 7    shall  be reimbursed by the State for all reasonable expenses
 8    actually and necessarily incurred in the performance  of  his
 9    or  her  official  duties. The board shall hear all petitions
10    for review  filed  under  this  Act  and  shall  conduct  all
11    hearings   in  accordance  with  the  rules  and  regulations
12    established  by  the  chairperson.   The   Illinois   Housing
13    Development  Authority  shall  provide space and clerical and
14    other assistance that the Board may require.
15        (c)  The Illinois Housing Development Authority may adopt
16    such other rules and regulations as it  deems  necessary  and
17    appropriate  to  carry out the Board's responsibilities under
18    this Act and to provide direction to  local  governments  and
19    affordable housing developers.