Illinois General Assembly - Full Text of HB3107
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Full Text of HB3107  102nd General Assembly




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1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 3. The Illinois Housing Development Act is amended
5by changing Section 7.28 as follows:
6    (20 ILCS 3805/7.28)
7    Sec. 7.28. Tax credit for donation to sponsors. The
8Authority may administer and adopt rules for an affordable
9housing tax donation credit program to provide tax credits for
10donations as set forth in this Section.
11    (a) In this Section:
12    "Administrative housing agency" means either the Authority
13or an agency of the City of Chicago.
14    "Affordable housing project" means either:
15        (1) (i) a rental project in which at least 25% of the
16    units have rents (including tenant-paid heat) that do not
17    exceed, on a monthly basis, maximum gross rent figures, as
18    published by the Authority, that are:
19            (i) based on data published annually by the U.S.
20        Department of Housing and Urban Development; ,
21            (ii) based on the annual income of households
22        earning 60% of the area median income; ,
23            (iii) computed using a 30% of gross monthly income



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1        standard; and
2            (iv) adjusted for unit size and at least 25% of the
3        units are occupied by persons and families whose
4        incomes do not exceed 60% of the median family income
5        for the geographic area in which the residential unit
6        is located; or
7        (2) (ii) a unit for sale to homebuyers whose gross
8    household income is at or below (A) 60% of the area median
9    income (for taxable years beginning prior to January 1,
10    2022) or (B) 120% of the area median income (for taxable
11    years beginning on or after January 1, 2022) and who pay no
12    more than 30% of their gross household income for mortgage
13    principal, interest, property taxes, and property
14    insurance (PITI).
15    "Donation" means money, securities, or real or personal
16property that is donated to a not-for-profit sponsor that is
17used solely for costs associated with either (i) purchasing,
18constructing, or rehabilitating an affordable housing project
19in this State, (ii) an employer-assisted housing project in
20this State, (iii) general operating support, or (iv) technical
21assistance as defined by this Section.
22    "Employer-assisted housing project" means either
23down-payment assistance, reduced-interest mortgages, mortgage
24guarantee programs, rental subsidies, or individual
25development account savings plans that are provided by
26employers to employees to assist in securing affordable



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1housing near the work place, that are restricted to housing
2near the work place, and that are restricted to employees
3whose gross household income is at or below 120% of the area
4median income.
5    "General operating support" means any cost incurred by a
6sponsor that is a part of its general program costs and is not
7limited to costs directly incurred by the affordable housing
9    "Geographical area" means the metropolitan area or county
10designated as an area by the federal Department of Housing and
11Urban Development under Section 8 of the United States Housing
12Act of 1937, as amended, for purposes of determining fair
13market rental rates.
14    "Median income" means the incomes that are determined by
15the federal Department of Housing and Urban Development
16guidelines and adjusted for family size.
17    "Project" means an affordable housing project, an
18employer-assisted housing project, general operating support,
19or technical assistance.
20    "Sponsor" means a not-for-profit organization that (i) is
21organized as a not-for-profit organization under the laws of
22this State or another state and (1) for an affordable housing
23project, has as one of its purposes the development of
24affordable housing; (2) for an employer-assisted housing
25project, has as one of its purposes home ownership education;
26and (3) for a technical assistance project, has as one of its



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1purposes either the development of affordable housing or home
2ownership education; (ii) is organized for the purpose of
3constructing or rehabilitating affordable housing units and
4has been issued a ruling from the Internal Revenue Service of
5the United States Department of the Treasury that the
6organization is exempt from income taxation under provisions
7of the Internal Revenue Code; or (iii) is an organization
8designated as a community development corporation by the
9United States government under Title VII of the Economic
10Opportunity Act of 1964.
11    "Tax credit" means a tax credit allowed under Section 214
12of the Illinois Income Tax Act.
13    "Technical assistance" means any cost incurred by a
14sponsor for project planning, assistance with applying for
15financing, or counseling services provided to prospective
17    (b) A sponsor must apply to an administrative housing
18agency for approval of the project. The administrative housing
19agency must reserve a specific amount of tax credits for each
20approved project. Tax credits for general operating support
21can only be reserved as part of a reservation of tax credits
22for an affordable housing project, an employer-assisted
23housing project, or technical assistance. No tax credits shall
24be allowed for a project without a reservation of such tax
25credits by an administrative housing agency for that project.
26    (c) The Authority must adopt rules establishing criteria



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1for eligible costs and donations, issuing and verifying tax
2credits, and selecting projects that are eligible for a tax
4    (d) Tax credits for employer-assisted housing projects are
5limited to that pool of tax credits that have been set aside
6for employer-assisted housing. Tax credits for general
7operating support are limited to 10% of the total tax credit
8reservation for the related project (other than general
9operating support) and are also limited to that pool of tax
10credits that have been set aside for general operating
11support. Tax credits for technical assistance are limited to
12that pool of tax credits that have been set aside for technical
14    (e) The amount of tax credits reserved by the
15administrative housing agency for an approved project is
16limited to $32,850,352 in State fiscal years 2022 and 2023 $13
17million in the initial year and shall increase by 5% each
18fiscal year thereafter by 5%. The City of Chicago shall
19receive 24.5% of total tax credits authorized for each fiscal
20year. The Authority shall receive the balance of the tax
21credits authorized for each fiscal year. The tax credits may
22be used anywhere in this State. The tax credits have the
23following set-asides:
24        (1) for employer-assisted housing projects, $2
25    million; and
26        (2) for general operating support and technical



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1    assistance, $1 million.
2    The balance of the funds must be used for affordable
3housing projects. During the first 9 months of a fiscal year,
4if an administrative housing agency is unable to reserve the
5tax credits set aside for the purposes described in subsection
6(e), the administrative housing agency may reserve the tax
7credits for any approved projects.
8    (f) The administrative housing agency that reserves tax
9credits for an affordable housing project must record against
10the land upon which the affordable housing project is located
11an instrument to assure that the property maintains its
12affordable housing compliance for a minimum of 10 years. The
13Authority has flexibility to assure that the instrument does
14not cause undue hardship on homeowners.
15(Source: P.A. 92-491, eff. 8-23-01; 93-369, eff. 7-24-03.)