Rep. Arthur L. Turner
Filed: 4/10/2008
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1 | AMENDMENT TO HOUSE BILL 2426
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2 | AMENDMENT NO. ______. Amend House Bill 2426 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Housing Development Act is amended | ||||||
5 | by changing Section 7.28 as follows:
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6 | (20 ILCS 3805/7.28)
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7 | Sec. 7.28. Tax credit for donation to sponsors. The | ||||||
8 | Authority may administer and adopt rules
for
an affordable | ||||||
9 | housing tax donation credit program to provide tax credits for
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10 | donations as set forth in this
Section.
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11 | (a) In this Section:
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12 | "Administrative housing agency" means either the Authority | ||||||
13 | or an agency of the City of Chicago.
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14 | "Affordable housing project" means either (i) a rental | ||||||
15 | project in which at
least 25% of the units have rents | ||||||
16 | (including tenant-paid heat) that do not
exceed, on a monthly |
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1 | basis,
maximum gross rent figures, as published by the | ||||||
2 | Authority, that are: (i)
based
on data published annually by | ||||||
3 | the U.S. Department of Housing and Urban
Development, (ii) | ||||||
4 | based on the annual income of households earning 60% of the
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5 | area median income, (iii) computed using a 30% of gross monthly
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6 | income
standard and (iv) adjusted for unit size and at least | ||||||
7 | 25% of the units are
occupied by persons and families whose | ||||||
8 | incomes do not exceed 60% of the median
family income for the | ||||||
9 | geographic area in which the residential unit is located
or | ||||||
10 | (ii) a unit for sale to homebuyers whose gross household income | ||||||
11 | is at or
below 60% of the area median income and who pay no more | ||||||
12 | than 30% of their gross
household income for mortgage | ||||||
13 | principal, interest, property taxes, and
property insurance | ||||||
14 | (PITI).
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15 | "Donation" means money, securities, or real or personal | ||||||
16 | property that is
donated to a not-for-profit sponsor that is | ||||||
17 | used solely for costs associated
with either (i) purchasing, | ||||||
18 | constructing, or rehabilitating an affordable
housing project | ||||||
19 | in this State, (ii) an employer-assisted housing project in
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20 | this State, (iii) general operating support, or (iv) technical | ||||||
21 | assistance as
defined by this Section.
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22 | "Employer-assisted housing project" means either | ||||||
23 | down-payment assistance,
reduced-interest mortgages, mortgage | ||||||
24 | guarantee programs, rental subsidies, or
individual | ||||||
25 | development account savings plans that are provided by | ||||||
26 | employers to
employees to assist in securing affordable housing |
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1 | near the work place, that
are restricted to housing near the | ||||||
2 | work place, and that are restricted to
employees whose gross | ||||||
3 | household income is at or below 120% of the area median
income.
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4 | "General operating support" means any cost incurred by a | ||||||
5 | sponsor that is a
part of its general program costs and is not | ||||||
6 | limited to costs directly incurred
by the affordable housing | ||||||
7 | project.
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8 | "Geographical area" means the metropolitan area or county | ||||||
9 | designated as an
area by the federal Department of Housing and | ||||||
10 | Urban Development under Section 8
of the United States Housing | ||||||
11 | Act of 1937, as amended, for purposes of
determining fair | ||||||
12 | market rental rates.
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13 | "Median income" means the incomes that are determined by | ||||||
14 | the federal
Department of Housing and Urban Development | ||||||
15 | guidelines and adjusted for family
size.
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16 | "Project" means an affordable housing project, an | ||||||
17 | employer-assisted housing
project, general operating support, | ||||||
18 | or technical assistance.
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19 | "Sponsor" means a not-for-profit organization that (i) is | ||||||
20 | organized as a
not-for-profit organization under the laws of | ||||||
21 | this State or another
state and (1) for an affordable housing | ||||||
22 | project, has as one of its purposes the
development of | ||||||
23 | affordable housing; (2) for an employer-assisted housing
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24 | project, has as one of its purposes home ownership education; | ||||||
25 | and (3) for a
technical assistance project, has as one of
its | ||||||
26 | purposes either the development of affordable housing or home |
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1 | ownership
education; (ii) is organized
for the purpose of | ||||||
2 | constructing or rehabilitating affordable housing units and
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3 | has
been issued a ruling from the Internal Revenue Service of | ||||||
4 | the United States
Department of the Treasury that the | ||||||
5 | organization is exempt from income taxation
under provisions of | ||||||
6 | the Internal Revenue Code; or (iii) is an organization
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7 | designated as a community development corporation by the United | ||||||
8 | States
government under Title VII of the Economic Opportunity | ||||||
9 | Act of 1964.
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10 | "Tax credit" means a tax credit allowed under Section 214 | ||||||
11 | of the Illinois
Income Tax Act.
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12 | "Technical assistance" means any cost incurred by a sponsor | ||||||
13 | for project
planning, assistance with applying for financing, | ||||||
14 | or counseling services
provided to prospective homebuyers.
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15 | (b) A sponsor must apply to an administrative housing | ||||||
16 | agency for approval of the project. The
administrative housing
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17 | agency must reserve a specific amount of tax credits for each | ||||||
18 | approved project.
Tax credits for general operating support can | ||||||
19 | only be reserved as part of a
reservation of tax credits for an | ||||||
20 | affordable housing project, an
employer-assisted housing | ||||||
21 | project, or technical assistance. No tax credits
shall be | ||||||
22 | allowed for a project without a reservation of such tax credits | ||||||
23 | by an
administrative housing agency for that project.
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24 | (c) The Authority must adopt rules
establishing
criteria | ||||||
25 | for eligible costs and donations, issuing and verifying tax | ||||||
26 | credits,
and selecting projects that are eligible for a tax
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1 | credit.
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2 | (d) Tax credits for employer-assisted housing projects are | ||||||
3 | limited to
that pool of
tax credits that have been set aside | ||||||
4 | for employer-assisted housing. Tax
credits for general | ||||||
5 | operating support are limited to 10% of the total tax
credit | ||||||
6 | reservation for the related project (other than general | ||||||
7 | operating
support) and are also limited to that pool of
tax
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8 | credits that have been set aside for general operating support. | ||||||
9 | Tax credits
for technical assistance are limited to that pool | ||||||
10 | of tax credits that have been
set aside for technical | ||||||
11 | assistance.
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12 | (e) The amount of tax credits reserved by the | ||||||
13 | administrative housing agency
for an approved project is | ||||||
14 | limited to $13 million in the initial year and shall
increase | ||||||
15 | each year by 5%. The City of Chicago shall receive 24.5% of | ||||||
16 | total tax
credits authorized for each fiscal year. The
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17 | Authority shall receive the balance of the tax credits | ||||||
18 | authorized for each
fiscal year. The tax credits may be used | ||||||
19 | anywhere in this State.
The tax
credits have the following | ||||||
20 | set-asides:
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21 | (1) for employer-assisted housing projects, $2 | ||||||
22 | million; and
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23 | (2) for general operating support and technical | ||||||
24 | assistance, $1 million.
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25 | The balance of the funds must be used for affordable | ||||||
26 | housing
projects.
During the first 9 months of a fiscal year, |
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1 | if an administrative housing
agency is unable to reserve the | ||||||
2 | tax credits set aside for the purposes
described in
subsection | ||||||
3 | (e), the administrative housing agency may reserve the tax | ||||||
4 | credits
for any approved projects.
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5 | (f) The administrative housing agency that reserves tax | ||||||
6 | credits for an
affordable housing project must cause to be | ||||||
7 | recorded record
against the land upon which the affordable | ||||||
8 | housing project is located an
instrument to assure that
the | ||||||
9 | property maintains its affordable housing compliance for a | ||||||
10 | minimum of 10
years. The administrative housing agency may | ||||||
11 | release an instrument prior to the 10-year minimum requirement | ||||||
12 | so long as the sponsor makes an equal or greater number of | ||||||
13 | rental units of equal or lesser rent available to all tenants | ||||||
14 | of the project prior to or simultaneous with the release. The | ||||||
15 | replacement units made available by the sponsor must be in the | ||||||
16 | immediate vicinity of the project. The sponsor must record a | ||||||
17 | new instrument against the replacement units assuring | ||||||
18 | affordable housing compliance for the remainder of the original | ||||||
19 | 10-year period. The Authority has flexibility to assure that | ||||||
20 | the instrument
does
not cause undue hardship on homeowners.
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21 | (Source: P.A. 92-491, eff. 8-23-01; 93-369, eff. 7-24-03.)".
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