HB5268 94TH GENERAL ASSEMBLY

LRB094 17684 DRJ 54855 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB5268

Introduced 01/25/06, by Rep. Julie Hamos - Karen A. Yarbrough - Elaine Nekritz - Robin Kelly - Kathleen A. Ryg

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 345/7.5 new

Creates the Comprehensive Housing Planning Act. Provides that during the period from the effective date of the Act through June 30, 2016, the State of Illinois shall prepare and be guided by an annual comprehensive housing plan that is consistent with the affirmative fair housing provisions of the Illinois Human Rights Act and specifically addresses certain underserved populations, including households earning below 50% of the area median income, low-income senior citizens, and low-income persons with a disability. Sets forth items that must be included in the plan, including (i) the identification of all funding sources for which the State has administrative control that are available for housing construction, rehabilitation, preservation, operating or rental subsidies, and supportive services and (ii) goals for the number and types of housing units to be constructed, preserved, or rehabilitated each year for the specified underserved populations. Provides for an Executive Committee and an Interagency Subcommittee. Requires the Illinois Housing Development Authority, in consultation with the Interagency Subcommittee, to annually issue a joint Notice of Funding Availability to notify potential applicants of funding for specific programs expected to be available through State agencies to meet housing and supportive service needs identified in the Annual Comprehensive Housing Plan. Amends the Illinois Private Activity Bond Allocation Act; requires the issuer of bonds utilizing bond volume cap from the Local Government Pool and the State Agency Pool to file an annual report with the Governor and the General Assembly. Effective immediately.

FISCAL NOTE ACT MAY APPLY

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 Comprehensive Housing Planning Act.

Section 5. Definitions. In this Act:

"Authority" means the Illinois Housing Development Authority.

"Executive Committee" means the Executive Committee of the State Housing Task Force, which shall consist of 13 members of the State Housing Task Force: the Chair, the Vice-Chair, a representative of the Governor's Office, a representative of the Governor's Office of Management and Budget responsible for Bond Cap allocation in the State, the Director of Commerce and Economic Opportunity or his or her designee, the Secretary of Human Services or his or her designee, and 7 housing experts from the State Housing Task Force as designated by the Governor.

"Interagency Subcommittee" means the Interagency Subcommittee of the State Housing Task Force, which shall consist of the following members or their designees: the Executive Director of the Authority; the Secretaries of Human Services and Transportation; the Directors of the State Departments of Aging, Children and Family Services, Commerce and Economic Opportunity, Financial and Professional Regulation, Healthcare and Family Services, Human Rights, Natural Resources, Public Health, and Veterans' Affairs; the Director of the Environmental Protection Agency; a representative of the Governor's Office; and a representative of the Governor's Office of Management and Budget.

"State Housing Task Force" or "Task Force" means a task force comprised of the following persons or their designees: the Executive Director of the Authority; a representative of the Governor's Office; a representative of the Lieutenant Governor's Office; the Secretaries of Human Services and Transportation; the Directors of the State Departments of Aging, Children and Family Services, Commerce and Economic Opportunity, Financial and Professional Regulation, Healthcare and Family Services, Human Rights, Natural Resources, Public Health, and Veterans' Affairs; the Director of the Environmental Protection Agency; and a representative of the Governor's Office and Management and Budget. The Governor may also invite and appoint the following to the Task Force: a representative of the Illinois Institute for Rural affairs of Western Illinois University; representatives of the U. S. Departments of Housing and Urban Development (HUD) and Agriculture; and up to 18 housing experts, with proportional representation from urban, suburban, and rural areas throughout the State. The Speaker of the Illinois House of Representatives, the President of the Illinois Senate, the Minority Leader of the Illinois House of Representatives, and the Minority Leader of the Illinois Senate may each appoint one representative to the Task Force. The Executive Director of the Authority shall serve as Chair of the Task Force. The Governor shall appoint a housing expert from the non-governmental sector to serve as Vice-Chair.

Section 10. Purpose. In order to maintain the economic health of its communities, the State must have a comprehensive and unified policy for the allocation of resources for affordable housing and supportive services for historically underserved populations throughout the State. Executive Order 2003-18, issued September 16, 2003, created the Illinois Housing Initiative through December 31, 2008, which led to the adoption of the first Annual Comprehensive Housing Plan for the State of Illinois. The General Assembly determines that it is now necessary to codify provisions of Executive Order 2003-18 in order to accomplish the following:

(1) address the need to make available quality housing at a variety of price points in communities throughout the State;

(2) overcome the shortage of affordable housing, which threatens the viability of many communities;

(3) meet the need for safe, sanitary, and accessible affordable housing and supportive services for people with disabilities;

(4) promote a full range of quality housing choices near jobs, transit, and other amenities;

(5) meet the needs of constituencies that have been historically underserved and segregated due to barriers and trends in the existing housing market or insufficient resources;

(6) facilitate the preservation of ownership of existing homes and rental housing in communities;

(7) create new housing opportunities and, where appropriate, promote mixed-income communities; and

(8) encourage development of State incentives for communities to create a mix of housing to meet the needs of current and future residents.

Section 15. Annual Comprehensive Housing Plan.

(a) During the period from the effective date of this Act through June 30, 2016, the State of Illinois shall prepare and be guided by an annual comprehensive housing plan ("Annual Comprehensive Housing Plan") that is consistent with the affirmative fair housing provisions of the Illinois Human Rights Act and specifically addresses the following underserved populations:

(1) households earning below 50% of the area median income, with particular emphasis on households earning below 30% of the area median income;

(2) low-income senior citizens;

(3) low-income persons with any form of disability, including, but not limited to, physical disability, developmental disability, mental illness, co-occurring mental illness and substance abuse disorder, and HIV/AIDS;

(4) homeless persons and persons determined to be at risk of homelessness;

(5) low-income and moderate-income persons unable to afford housing near work or transportation; and

(6) low-income persons residing in existing affordable housing that is in danger of becoming unaffordable or being lost.

(b) The Annual Comprehensive Housing Plan shall include, but need not be limited to, the following:

(1) The identification of all funding sources for which the State has administrative control that are available for housing construction, rehabilitation, preservation, operating or rental subsidies, and supportive services.

(2) Goals for the number and types of housing units to be constructed, preserved, or rehabilitated each year for the underserved populations identified in subsection (a) of Section 15, based on available housing resources.

(3) Funding recommendations for types of programs for housing construction, preservation, rehabilitation, and supportive services, where necessary, related to the underserved populations identified in subsection (a) of Section 15, based on the Annual Comprehensive Housing Plan.

(4) Specific actions needed to ensure the coordination of State government resources that can be used to build or preserve affordable housing, provide services to accompany the creation of affordable housing, and prevent homelessness.

(5) Recommended State actions that promote the construction, preservation, and rehabilitation of affordable housing by private-sector, not-for-profit, and government entities and address those practices that impede such promotion.

(6) Specific suggestions for incentives for counties and municipalities to develop and implement local comprehensive housing plans that would encourage a mix of housing to meet the needs of current and future residents.

(7) Identification of options that counties, municipalities, and other local jurisdictions, including public housing authorities, can take to construct, rehabilitate, or preserve housing in their own communities for the underserved populations identified in Section 10 of this Act.

(c) The Interagency Subcommittee, with staff support and coordination assistance from the Authority, shall develop the Annual Comprehensive Housing Plan. The State Housing Task Force shall provide advice and guidance to the Interagency Subcommittee in developing the Plan. The Interagency Subcommittee shall deliver the Annual Comprehensive Housing Plan to the Governor and the General Assembly by January 1 of each year or the first business day thereafter. The Authority, on behalf of the Interagency Subcommittee, shall prepare an interim report by September 30 and a final report by April 1 of the following year to the Governor and the General Assembly on the progress made toward achieving the projected goals of the Annual Comprehensive Housing Plan during the previous calendar year. These reports shall include estimates of revenues, expenditures, obligations, bond allocations, and fund balances for all programs or funds addressed in the Annual Comprehensive Housing Plan.

(d) The Authority shall provide staffing to the Interagency Subcommittee, the Task Force, and the Executive Committee of the Task Force. It shall also provide the staff support needed to help coordinate the implementation of the Annual Comprehensive Housing Plan during the course of the year. The Authority shall be eligible for reimbursement of up to $300,000 per year for such staff support costs from a designated funding source, if available, or from the Illinois Affordable Housing Trust Fund.

Section 20. Executive Committee. The Executive Committee shall:

(1) Oversee and structure the operations of the Task Force.

(2) Create necessary subcommittees and appoint subcommittee members, with the advice of the Task Force and the Interagency Subcommittee, as the Executive Committee deems necessary.

(3) Ensure adequate public input into the Annual Comprehensive Housing Plan.

(4) Involve, to the extent possible, appropriate representatives of the federal government, local governments and municipalities, public housing authorities, local continuum-of-care, for-profit, and not-for-profit developers, supportive housing providers, business, labor, lenders, and fair housing agencies.

(5) Have input into the development of the Annual Comprehensive Housing Plan and the Annual Report prepared by the Authority before the Authority submits them to the Task Force.

Section 25. Interagency Subcommittee. The Interagency Subcommittee and its member agencies shall:

(1) Be responsible for providing the information needed to develop the Annual Comprehensive Housing Plan as well as the interim and final Plan reports.

(2) Develop the Annual Comprehensive Housing Plan.

(3) Oversee the implementation of the Plan by coordinating, streamlining, and prioritizing the allocation of available production, rehabilitation, preservation, financial, and service resources.

Section 30. Notice of Funding Availability. The Authority, in consultation with other participating members of the Interagency Subcommittee, shall annually issue a joint Notice of Funding Availability ("NOFA") to notify potential applicants of funding for specific programs expected to be available through State agencies to meet housing and supportive service needs identified in the Annual Comprehensive Housing Plan. Prior to issuance of this NOFA, and before October 1 of each year, each Interagency Subcommittee member shall provide the Chairman of the Interagency Subcommittee with a report of funding earmarked for the NOFA, contingent on funding availability through annual appropriation. The Authority and other members of the Interagency Subcommittee may continue to provide additional opportunities for funding available under programs they administer, apart from this joint NOFA. The joint NOFA shall indicate the target number and types of housing units to be constructed, rehabilitated, preserved, and targeted for supportive services funding for the underserved populations. A NOFA may include, but need not be limited to, information regarding:

(1) available funding for property acquisition, construction, rehabilitation, or preservation of each type of housing;

(2) available funding for operating cost subsidies, including any rental assistance;

(3) projected funding for supportive services for the targeted units upon their occupancy, subject to annual appropriation of funds;

(4) the eligibility requirements for applicants;

(5) relevant program guidelines;

(6) selection criteria and the selection process; and

(7) the conditions to be met by applicants and selected respondents.

Each agency with authority for approving allocations of funds shall review proposed funding actions with the Interagency Subcommittee. Final funding decisions shall be made by the responsible agency in accordance with applicable law.

Section 90. The Illinois Private Activity Bond Allocation Act is amended by adding Section 7.5 as follows:

(30 ILCS 345/7.5 new)

Sec. 7.5. Bond issuer; annual report. The issuer of bonds utilizing bond volume cap from the Local Government Pool and the State Agency Pool shall file an annual report with the Governor and the General Assembly. The annual report from each issuer must include, but is not limited to, the following information:

(1) For multifamily rental units:

(A) the total number of developments;

(B) the total number of units, by income levels served;

(C) the total number of units targeted to each particular underserved population addressed in the Annual Comprehensive Housing Plan; and

(D) any outreach efforts undertaken to serve the targeted units.

(2) For single family homeownership units:

(A) the total number of loans and households who achieved homeownership with issuer bond proceeds;

(B) the amounts of individual loans generated by the bond proceeds;

(C) the actual and effective interest rates offered to borrowers;

(D) the total number of assisted homeowners identified as an underserved population addressed in the Annual Comprehensive Housing Plan, when available;

(E) the number of first-time homebuyers; and

(F) the number of assisted homeowners who received any homeownership counseling.

(3) For all housing units:

(A) the percentage of bond proceeds used in conjunction with the projects and loans;

(B) the total cost of issuance for the bonds issued;

(C) the amount of bond proceeds, if any, used to refund prior bonds; and

(D) the total amount of unused proceeds, if any, at the time of the report.

The Governor and the General Assembly shall utilize information readily available through existing reporting requirements to report on the State Agency Pool.

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