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1 | AN ACT in relation to housing.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Federally Subsidized Housing Preservation | |||||||||||||||||||||||||||||||
5 | Act is amended by
changing Sections 1, 3, 4, 5, 6, 7, and 10.1 | |||||||||||||||||||||||||||||||
6 | as follows:
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7 | (310 ILCS 60/1) (from Ch. 67 1/2, par. 1151)
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8 | Sec. 1. Short title. This Act shall be known and may be | |||||||||||||||||||||||||||||||
9 | cited as
the Federally Assisted
Subsidized Housing | |||||||||||||||||||||||||||||||
10 | Preservation Act.
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11 | (Source: P.A. 86-810.)
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12 | (310 ILCS 60/3) (from Ch. 67 1/2, par. 1153)
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13 | Sec. 3. Definitions. As used in this Act:
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14 | (a) "IHDA" means the Illinois Housing Development | |||||||||||||||||||||||||||||||
15 | Authority.
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16 | (b) (Blank).
"FmHA" means the Farmers Home Administration | |||||||||||||||||||||||||||||||
17 | or a local
housing
authority administering an FmHA program.
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18 | (c) (Blank).
"HUD" means the United States Department of | |||||||||||||||||||||||||||||||
19 | Housing and
Urban
Development, or the Federal Housing | |||||||||||||||||||||||||||||||
20 | Administration or a local housing
authority administering a HUD | |||||||||||||||||||||||||||||||
21 | program.
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22 | (d) "Owner" means the person, partnership, or corporation | |||||||||||||||||||||||||||||||
23 | that
holds title to an assisted housing development
is a
party | |||||||||||||||||||||||||||||||
24 | to a contract with HUD or FmHA providing for a mortgage, | |||||||||||||||||||||||||||||||
25 | mortgage
assistance, mortgage insurance, or rent subsidy; or | |||||||||||||||||||||||||||||||
26 | any spouse, employee,
agent, partner, master lessee, business | |||||||||||||||||||||||||||||||
27 | affiliate or associate, or
successor in interest of such | |||||||||||||||||||||||||||||||
28 | person, partnership or corporation, that
receives or demands | |||||||||||||||||||||||||||||||
29 | rent for the subsidized housing.
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30 | (e) "Assisted housing" or "assisted housing development" | |||||||||||||||||||||||||||||||
31 | means a rental
housing
development, or a mixed use development |
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1 | that includes rental housing, that receives government | ||||||
2 | assistance under any of the following
programs:
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3 | (1) New construction, substantial rehabilitation, | ||||||
4 | moderate
rehabilitation, property disposition and loan | ||||||
5 | management set-aside programs, or
any other program | ||||||
6 | providing project-based
rental assistance, under Section 8 | ||||||
7 | of the United States Housing
Act of 1937, as amended.
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8 | (2) The Below-Market-Interest-Rate Program under | ||||||
9 | Section
221(d)(3) of the National Housing Act.
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10 | (3) Section 236 of the National Housing Act.
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11 | (4) Section 202 of the National Housing Act.
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12 | (5) Programs for rent supplement assistance under | ||||||
13 | Section
101 of the Housing and Urban Development Act of | ||||||
14 | 1965, as amended.
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15 | (6) Programs under Section 514 or 515 of the Housing | ||||||
16 | Act of
1949.
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17 | (7) Section 42 of the Internal Revenue Code.
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18 | "Subsidized housing" means any housing or unit of housing | ||||||
19 | financed
by a loan or mortgage insured or held by HUD as | ||||||
20 | follows:
| ||||||
21 | (1) insured or held by HUD under Section 221(d)(3) of the | ||||||
22 | National
Housing Act and assisted under Section 101 of the | ||||||
23 | Housing and Urban
Development Act of 1965 or Section 8 of the | ||||||
24 | United States Housing Act of 1937;
| ||||||
25 | (2) insured or held by HUD and bears interest at a rate | ||||||
26 | determined under
the proviso of Section 221(d)(3) of the | ||||||
27 | National Housing Act;
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28 | (3) insured, assisted or held by HUD under Section 236 of | ||||||
29 | the National
Housing Act;
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30 | (4) insured or held by HUD under Section 514 or 515 of the | ||||||
31 | Housing Act of
1949; or
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32 | (5) held by HUD and formerly insured under a program listed | ||||||
33 | in this
subsection (e).
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34 | (f) "Tenant" means a tenant, subtenant, lessee, sublessee | ||||||
35 | or other
person entitled to possession, occupancy or benefits | ||||||
36 | of a rental unit
within the assisted
subsidized housing.
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1 | (g) "Tenant Association" means an association, corporation | ||||||
2 | or other
organization that represents at least a majority of | ||||||
3 | the tenants in the
assisted
subsidized housing building.
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4 | (h) "Prepayment" means the payment in full or refinancing | ||||||
5 | of the
federally insured or federally held mortgage | ||||||
6 | indebtedness prior to its
original maturity date, or the | ||||||
7 | voluntary cancellation of mortgage
insurance, on an assisted | ||||||
8 | housing development described in paragraph
(2), (3), or (4) of | ||||||
9 | subsection (e) that would have the effect of
removing the | ||||||
10 | affordability restrictions applicable to the assisted housing | ||||||
11 | development under the programs described in paragraph (2), (3), | ||||||
12 | or (4) of subsection (e).
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13 | (i) "Termination" means: | ||||||
14 | (1) the expiration or early termination of an assisted | ||||||
15 | housing development's participation in a federal subsidy | ||||||
16 | program for assisted housing described in paragraph (1) of | ||||||
17 | subsection (e), or | ||||||
18 | (2) the expiration or early termination of an assisted | ||||||
19 | housing development's affordability restrictions described | ||||||
20 | in Section 42(g) of the Internal Revenue Code for assisted | ||||||
21 | housing described in paragraph (7) of subsection (e),
when | ||||||
22 | that event results in an increase in tenant rents, a change | ||||||
23 | in the form of subsidy from project-based to tenant-based, | ||||||
24 | or a change in use of the assisted housing development to a | ||||||
25 | use other than rental housing.
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26 | (j) "Affected public entities" means: the mayor of the city | ||||||
27 | in
which the assisted housing development is located or, if the
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28 | development is located in an unincorporated area, the | ||||||
29 | chairperson of
the county board; the public
housing authority | ||||||
30 | in whose jurisdiction the assisted housing development is | ||||||
31 | located, if any; and IHDA.
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32 | (k) "Affordability restrictions" means limits on rents | ||||||
33 | that owners may charge for occupancy of a rental unit in | ||||||
34 | assisted housing and limits on tenant income for persons or | ||||||
35 | families seeking to qualify as tenants in assisted housing.
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36 | (Source: P.A. 86-810.)
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1 | (310 ILCS 60/4) (from Ch. 67 1/2, par. 1154)
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2 | Sec. 4. Notice of intent to sell.
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3 | (a) An owner may not sell or otherwise dispose of
assisted
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4 | subsidized housing , complete prepayment, or complete a | ||||||
5 | termination
unless, not less than 12
6 months before the | ||||||
6 | prepayment, termination, sale , or
disposal, the owner submits | ||||||
7 | to all tenants of the assisted
subsidized
housing and to all | ||||||
8 | affected public entities
IHDA a notice of intent to
complete | ||||||
9 | prepayment, complete termination, sell , or otherwise dispose
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10 | of the property.
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11 | (a-5) Every notice required under subsection (a) must | ||||||
12 | include the address
of
the
assisted housing, characteristics of | ||||||
13 | the property including the number of
units, and the
names and | ||||||
14 | addresses of the owners. The notice must also include the date | ||||||
15 | on
which
the
owner intends to sell, lease, complete prepayment, | ||||||
16 | complete termination, or otherwise dispose of the property, as | ||||||
17 | well as a detailed list of affordability restrictions | ||||||
18 | applicable to the property.
IHDA shall adopt rules concerning | ||||||
19 | the content, format, delivery, and
publication of such
notices.
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20 | (b) Within 60 days after the date of the owner's notice | ||||||
21 | pursuant to
subsection (a), the tenants may notify the owner | ||||||
22 | that they have formed a
Tenant Association meeting the | ||||||
23 | requirements of this Act and shall designate
the name of its | ||||||
24 | representative or representatives in the notice.
The Tenant | ||||||
25 | Association may enter into an agreement with a not-for-profit
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26 | corporation or private purchaser in which the not-for-profit
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27 | corporation or private purchaser agrees to represent the | ||||||
28 | residents and
maintain the development in a manner that | ||||||
29 | preserves the housing development's
existing affordability | ||||||
30 | restrictions or that would qualify the housing development as | ||||||
31 | affordable housing as defined in the Illinois Affordable | ||||||
32 | Housing Act. The agreement must set forth the minimum length of | ||||||
33 | time that the affordability restrictions will be in effect. The | ||||||
34 | Tenant Association and individual tenants in the assisted | ||||||
35 | housing shall each have the right to bring an action for |
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1 | specific performance or other injunctive relief for | ||||||
2 | enforcement of the agreement, and the agreement must contain | ||||||
3 | provisions to this effect along with such other remedies for | ||||||
4 | breach as the Tenant Association and the not-for-profit | ||||||
5 | corporation or private purchaser may agree. Once such an | ||||||
6 | agreement is entered into, the
not-for-profit corporation or | ||||||
7 | private purchaser shall assume all rights and
responsibilities | ||||||
8 | attributed to the Tenant Association under this Act.
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9 | (Source: P.A. 86-810; 86-1352.)
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10 | (310 ILCS 60/5) (from Ch. 67 1/2, par. 1155)
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11 | Sec. 5. Offer for sale to Tenant Association. Within 60 | ||||||
12 | days after the
Tenant Association has complied with the
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13 | requirements of Section 4, the owner shall, before selling, | ||||||
14 | leasing , completing prepayment, completing termination, or
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15 | otherwise disposing of the
property, provide to the Tenant | ||||||
16 | Association a
bona fide offer for sale of the property which | ||||||
17 | shall contain the essential
terms of the sale, including, at a | ||||||
18 | minimum, the following: the
sales price; the terms of seller | ||||||
19 | financing, if any, including the amount,
the interest rate, and | ||||||
20 | amortization rate thereof; the terms of assumable
financing, if | ||||||
21 | any, including the amount, the interest rate, and the
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22 | amortization rate thereof; and proposed improvements, if any, | ||||||
23 | to the
property to be made by the owner in connection with the | ||||||
24 | sale.
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25 | (Source: P.A. 86-810.)
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26 | (310 ILCS 60/6) (from Ch. 67 1/2, par. 1156)
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27 | Sec. 6. Notice of intent to purchase.
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28 | (a) The Tenant Association shall
notify the owner in | ||||||
29 | writing, within 90
30 days after the receipt of the
bona
fide | ||||||
30 | offer of sale, of its intent to purchase the assisted
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31 | subsidized
housing.
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32 | (b) The owner shall, after receiving a notice pursuant to | ||||||
33 | subsection
(a), comply with any reasonable request to make | ||||||
34 | documents available to the
Tenant Association, during normal |
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1 | business hours at the owner's principal place
of
business | ||||||
2 | within 15 days of receiving such a request, including but not | ||||||
3 | limited
to: a
floor plan of the development; itemized lists of | ||||||
4 | monthly operating
expenses, capital expenditures in each of the | ||||||
5 | 2 preceding calendar years
and deferred maintenance costs; the | ||||||
6 | amount of project reserves; utility
consumption rates; copies | ||||||
7 | of financial and physical inspection reports filed
with | ||||||
8 | federal, State or local agencies; the most recent rent roll; a | ||||||
9 | list of
tenants; a list of vacant units; and a statement of the | ||||||
10 | vacancy rate at the
development for each of the 2 preceding | ||||||
11 | calendar years.
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12 | (Source: P.A. 86-810.)
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13 | (310 ILCS 60/7) (from Ch. 67 1/2, par. 1157)
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14 | Sec. 7. Bona fide offer to purchase; contract.
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15 | (a) The Tenant Association shall, within 90 days after it
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16 | notifies the owner of its intent to purchase, provide the owner | ||||||
17 | with a bona
fide offer to purchase evidenced by a purchase | ||||||
18 | contract reflecting a sales
price and terms agreed to by the | ||||||
19 | parties or the sales price and terms
determined pursuant to | ||||||
20 | subsection (b) of this Section and an earnest
money deposit | ||||||
21 | equal to 5% of the bona fide offer to purchase.
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22 | (b) If the parties are unable to agree to a sales price | ||||||
23 | within the first
60 days of the 90 day period specified in | ||||||
24 | subsection (a), the sale price of
the assisted
subsidized
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25 | housing shall be based upon its fair market
value , without | ||||||
26 | affordability restrictions, as
determined by 2 independent | ||||||
27 | appraisers qualified to perform multi-family
housing | ||||||
28 | appraisals. One appraiser shall be selected and paid by the | ||||||
29 | owner
and the other shall be selected and paid by the Tenant | ||||||
30 | Association. If the
appraisers fail to agree upon a fair market | ||||||
31 | value, the owner and the
Tenant Association shall either | ||||||
32 | jointly select and pay a third appraiser whose
appraisal shall | ||||||
33 | be binding, or agree to take an average of
the 2 appraisals. | ||||||
34 | All appraisers shall be MAI certified. The
determination of the | ||||||
35 | sales price pursuant to this subsection shall be
completed |
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1 | within the 90 day period specified in subsection (a) of this | ||||||
2 | Section.
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3 | (c) The Tenant Association shall agree to close on the sale | ||||||
4 | within 90
days from the date the parties sign the contract to | ||||||
5 | purchase.
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6 | (Source: P.A. 86-810; 86-1352.)
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7 | (310 ILCS 60/10.1) (from Ch. 67 1/2, par. 1160.1)
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8 | Sec. 10.1. Civil action against owner. The Tenant | ||||||
9 | Association, or one
or
more tenants in the
assisted
subsidized
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10 | housing, may bring a civil action against an owner
who has
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11 | violated this Act. An owner found to have violated any | ||||||
12 | provision of this
Act shall, in addition to any other damages, | ||||||
13 | pay a civil penalty to each
tenant in the assisted
subsidized
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14 | housing in the amount of $500 per
tenant, and
shall also pay | ||||||
15 | the attorney's fees and costs incurred in bringing the action.
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16 | (Source: P.A. 86-810; 86-1352)
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17 | Section 99. Effective date. This Act takes effect upon | ||||||
18 | becoming law. |