Full Text of HB0648 102nd General Assembly
HB0648 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB0648 Introduced 2/8/2021, by Rep. Denyse Stoneback SYNOPSIS AS INTRODUCED: |
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Amends the Rental Housing Support
Program Act. In a provision requiring the Illinois Housing Development Authority to adopt rules concerning grants awarded to local administering agencies to fund rent subsidies for low-income families, provides that the rules must limit eligibility for tenancy in the subsidized rental units to households with gross income that is at or below 40% (rather than 30%) of the family median income for the area in which the grant will be made. In a provision concerning rules on grants awarded to entities for the development of affordable rental housing, provides that the rules must require 50% of the units that are supported by any grant to be set aside for households whose income is at or below 25% (rather than 15%) of the median family income for the area in which the grant will be made.
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| | A BILL FOR |
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| 1 | | AN ACT concerning housing.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Rental Housing Support
Program Act is | 5 | | amended by changing Section 25 as follows: | 6 | | (310 ILCS 105/25)
| 7 | | Sec. 25. Criteria for awarding grants. The Authority | 8 | | shall adopt rules
to govern the awarding of grants and the | 9 | | continuing eligibility for grants
under Sections 15 and 20. | 10 | | Requests for proposals under
Section 20 must specify that | 11 | | proposals must satisfy these rules.
The rules must contain and | 12 | | be consistent with, but need not be limited to,
the following | 13 | | criteria:
| 14 | | (1) Eligibility for tenancy in the units supported by | 15 | | grants to local
administering agencies must be
limited
to | 16 | | households with gross income at or below 40% 30% of the | 17 | | median
family income for the area in which the grant will | 18 | | be
made. Fifty percent of the units that are supported by | 19 | | any grant must be set
aside for households whose income is | 20 | | at or below 25% 15% of the area median
family income for | 21 | | the area in which the grant will be made, provided that | 22 | | local administering agencies may negotiate flexibility in
| 23 | | this set-aside with the Authority if they demonstrate that |
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| 1 | | they have been
unable to locate sufficient tenants in this | 2 | | lower income range. Income eligibility for units supported | 3 | | by grants to local administering agencies must be verified | 4 | | annually by landlords and submitted to local administering | 5 | | agencies. Tenants
must have sufficient income to be able | 6 | | to afford the tenant's share of the
rent. For grants | 7 | | awarded under Section 20, eligibility for tenancy in units
| 8 | | supported by grants must be limited to households with a | 9 | | gross income at or
below
40% 30% of area median family | 10 | | income for the area in which the grant will be made. Fifty | 11 | | percent of the units that are supported by any grant must | 12 | | be set aside for households whose income is at or below 25% | 13 | | 15% of the median family income for the area in which the | 14 | | grant will be made, provided that developers may negotiate | 15 | | flexibility in this set-aside with the Authority or | 16 | | municipality as defined in subsection (b) of Section 10 if | 17 | | it demonstrates that it has been unable to locate | 18 | | sufficient tenants in this lower income range.
The | 19 | | Authority shall determine what sources qualify as a | 20 | | tenant's income.
| 21 | | (2) Local administering agencies must include | 22 | | 2-bedroom, 3-bedroom,
and 4-bedroom units among those | 23 | | intended to be supported by grants
under the Program. In | 24 | | grants under Section 15, the precise number of
these units | 25 | | among all the units intended to be supported by a grant | 26 | | must be
based on need in the community for larger units and |
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| 1 | | other factors that the
Authority specifies in rules. The | 2 | | local administering agency must specify
the basis for the | 3 | | numbers of these units that are proposed for support under
| 4 | | a grant. Local administering agencies must make a good | 5 | | faith effort to
comply with this allocation of unit sizes. | 6 | | In grants awarded under Section
20, developers and the | 7 | | Authority or municipality, as defined in subsection (b) of | 8 | | Section 10, shall negotiate the numbers and sizes of
units | 9 | | to be built in a project and supported by the grant.
| 10 | | (3) Under grants awarded under Section 15, local | 11 | | administering agencies
must enter into a payment contract | 12 | | with the landlord that defines the method of payment and | 13 | | must pay subsidies to landlords on a quarterly basis and | 14 | | in advance of the
quarter paid for.
| 15 | | (4) Local administering agencies and developers must | 16 | | specify how
vacancies in units supported by a grant must | 17 | | be advertised and they must include provisions for | 18 | | outreach to local
homeless shelters, organizations that | 19 | | work with people with disabilities,
and others interested | 20 | | in affordable housing.
| 21 | | (5) The local administering agency or developer must | 22 | | establish a schedule
for the tenant's rental obligation | 23 | | for units supported by a grant. The
tenant's share of the | 24 | | rent must be a flat amount, calculated annually, based on | 25 | | the size of the
unit and the household's income category. | 26 | | In establishing the schedule for
the tenant's rental |
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| 1 | | obligation, the local administering agency or developer
| 2 | | must use 30% of gross income within an income range as a | 3 | | guide, and it
may charge an additional or lesser amount.
| 4 | | (6) The amount of the subsidy provided under a grant | 5 | | for a unit must be
the difference between the amount of the | 6 | | tenant's obligation and the total
amount of rent for the
| 7 | | unit. The total amount of rent for the unit must be | 8 | | negotiated between the
local
administering authority and | 9 | | the landlord under Section 15, or between the
Authority or | 10 | | municipality, as defined in subsection (b) of Section 10, | 11 | | and the developer under Section 20, using comparable rents | 12 | | for units of comparable size and condition in the | 13 | | surrounding community as a guideline.
| 14 | | (7) Local administering agencies and developers, | 15 | | pursuant to criteria
the
Authority develops in rules, must | 16 | | ensure that there are procedures in place
to maintain the | 17 | | safety and habitability of units supported under grants. | 18 | | Local administering agencies must inspect
units before | 19 | | supporting them under a grant awarded under Section 15.
| 20 | | (8) Local administering agencies must provide or | 21 | | ensure that tenants are
provided with a "bill of rights" | 22 | | with their lease setting forth local
landlord-tenant laws | 23 | | and procedures and contact information for the local
| 24 | | administering agency.
| 25 | | (9) A local administering agency must create
a plan | 26 | | detailing a process for helping
to provide information, |
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| 1 | | when necessary, on how to access education, training, and | 2 | | other
supportive services to tenants living in units | 3 | | supported under the grant. The
plan must be
submitted as a | 4 | | part of the administering agency's proposal to the | 5 | | Authority
required under
Section 15.
| 6 | | (10) Local administering agencies and developers may | 7 | | not use funding under
the
grant to develop or support | 8 | | housing that requires that a tenant has a particular | 9 | | diagnosis or type of disability as a condition of | 10 | | eligibility for occupancy unless the requirement is | 11 | | mandated by another funding source for the housing. Local | 12 | | administering agencies and developers may use grant | 13 | | funding to develop integrated housing opportunities for | 14 | | persons with disabilities, but not housing restricted to a | 15 | | specific disability type.
| 16 | | (11) In order to plan for periodic fluctuations in | 17 | | annual receipts on deposit appropriated to the Fund each | 18 | | year, the Authority shall establish by rule a mechanism | 19 | | for establishing a reserve fund and the level of funding | 20 | | that shall be held in reserve either by the Authority or by | 21 | | local administering agencies.
| 22 | | (12) The Authority shall perform annual | 23 | | reconciliations of all distributions made in connection | 24 | | with the Program and may offset future distributions to | 25 | | balance geographic distribution requirements of this Act. | 26 | | (Source: P.A. 99-97, eff. 7-22-15.)
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