SB2927 103RD GENERAL ASSEMBLY

LRB103 34516 KTG 64350 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2927

Introduced 1/26/2024, by Sen. Natalie Toro

SYNOPSIS AS INTRODUCED:

New Act

Creates the Community Land Trust Home Ownership Act. Provides that the Illinois Housing Development Authority's homeownership programs, including loan products, grants, and other types of assistance, shall be made available to home buyers and owners seeking to purchase or maintain housing where a leasehold interest in real property is held by a community land trust or other 501(c)(3) organization for the purposes of promoting long-term affordability, preservation of affordable housing, or community revitalization efforts. Provides that any other type of seller, including for-profit or private sellers of homes, through leasehold agreements, such as installment contracts, contract for deeds, or any other type of purchase or ownership structure, shall not be eligible under the amendatory Act. Requires the Illinois Housing Development Authority, within 90 days after the effective date of the Act, to propose new or amended administrative rules that will make the Authority's homeownership programs consistent with the purposes of the Act. Effective immediately.

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 Community Land Trust Home Ownership Act.

Section 5. Purposes. The purposes of this Act are to ensure access to affordable housing loan products, grants, and other types of assistance for buyers and owners of housing located in a community land trust or other leasehold ownership structure with a ground lease between the buyer or owner and a 501(c)(3) organization.

Section 10. Findings. The General Assembly finds the following:

(1) The State of Illinois is facing an affordable housing crisis.

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

(3) Community land trusts and other ownership structures that promote long-term affordability are critical housing options that can reduce the affordable housing gap.

(4) Community land trusts and other ownership structures that promote long-term affordability curb displacement and foster generational wealth by creating opportunities for homeownership to remain affordable for generations.

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

Section 15. Definitions. As used in this Act:

"Authority" means the Illinois Housing Development Authority.

"Community land trust" means a 501(c)(3) organization governed by a board of community land trusts residents, community residents, and public representatives that provides permanent or long-term affordability and shared equity homeownership opportunities.

"501(c)(3) organization" means a nonprofit organization that is exempt or qualified for exemption from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986.

Section 20. Eligibility for Authority homeownership programs. The Authority's homeownership programs, including loan products, grants, and other types of assistance, shall be made available to home buyers and owners seeking to purchase or maintain housing where a leasehold interest in real property is held by a community land trust or other 501(c)(3) organization for the purposes of promoting long-term affordability, preservation of affordable housing, or community revitalization efforts. Any other type of seller, including for-profit or private sellers of homes, through leasehold agreements, such as installment contracts, contract for deeds, or any other type of purchase or ownership structure, shall not be eligible under this Section.

Section 25. Rulemaking. Within 90 days after the effective date of this Act, the Authority shall propose new or amended administrative rules that will make the Authority's homeownership programs consistent with the purposes of this Act.

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