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


Rep. Marcus C. Evans, Jr.

Filed: 4/20/2021





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2    AMENDMENT NO. ______. Amend House Bill 3107, AS AMENDED,
3by replacing Section 3 of the bill with the following:
4    "Section 3. The Illinois Housing Development Act is
5amended by 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



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1    exceed, on a monthly basis, maximum gross rent figures, as
2    published by the Authority, that are:
3            (i) based on data published annually by the U.S.
4        Department of Housing and Urban Development; ,
5            (ii) based on the annual income of households
6        earning 60% of the area median income; ,
7            (iii) computed using a 30% of gross monthly income
8        standard; and
9            (iv) adjusted for unit size and at least 25% of the
10        units are occupied by persons and families whose
11        incomes do not exceed 60% of the median family income
12        for the geographic area in which the residential unit
13        is located; or
14        (2) (ii) a unit for sale to homebuyers whose gross
15    household income is at or below (A) 60% of the area median
16    income (for taxable years beginning prior to January 1,
17    2022) or (B) 120% of the area median income (for taxable
18    years beginning on or after January 1, 2022) and who pay no
19    more than 30% of their gross household income for mortgage
20    principal, interest, property taxes, and property
21    insurance (PITI).
22    "Donation" means money, securities, or real or personal
23property that is donated to a not-for-profit sponsor that is
24used solely for costs associated with either (i) purchasing,
25constructing, or rehabilitating an affordable housing project
26in this State, (ii) an employer-assisted housing project in



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1this State, (iii) general operating support, or (iv) technical
2assistance as defined by this Section.
3    "Employer-assisted housing project" means either
4down-payment assistance, reduced-interest mortgages, mortgage
5guarantee programs, rental subsidies, or individual
6development account savings plans that are provided by
7employers to employees to assist in securing affordable
8housing near the work place, that are restricted to housing
9near the work place, and that are restricted to employees
10whose gross household income is at or below 120% of the area
11median income.
12    "General operating support" means any cost incurred by a
13sponsor that is a part of its general program costs and is not
14limited to costs directly incurred by the affordable housing
16    "Geographical area" means the metropolitan area or county
17designated as an area by the federal Department of Housing and
18Urban Development under Section 8 of the United States Housing
19Act of 1937, as amended, for purposes of determining fair
20market rental rates.
21    "Median income" means the incomes that are determined by
22the federal Department of Housing and Urban Development
23guidelines and adjusted for family size.
24    "Project" means an affordable housing project, an
25employer-assisted housing project, general operating support,
26or technical assistance.



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1    "Sponsor" means a not-for-profit organization that (i) is
2organized as a not-for-profit organization under the laws of
3this State or another state and (1) for an affordable housing
4project, has as one of its purposes the development of
5affordable housing; (2) for an employer-assisted housing
6project, has as one of its purposes home ownership education;
7and (3) for a technical assistance project, has as one of its
8purposes either the development of affordable housing or home
9ownership education; (ii) is organized for the purpose of
10constructing or rehabilitating affordable housing units and
11has been issued a ruling from the Internal Revenue Service of
12the United States Department of the Treasury that the
13organization is exempt from income taxation under provisions
14of the Internal Revenue Code; or (iii) is an organization
15designated as a community development corporation by the
16United States government under Title VII of the Economic
17Opportunity Act of 1964.
18    "Tax credit" means a tax credit allowed under Section 214
19of the Illinois Income Tax Act.
20    "Technical assistance" means any cost incurred by a
21sponsor for project planning, assistance with applying for
22financing, or counseling services provided to prospective
24    (b) A sponsor must apply to an administrative housing
25agency for approval of the project. The administrative housing
26agency must reserve a specific amount of tax credits for each



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1approved project. Tax credits for general operating support
2can only be reserved as part of a reservation of tax credits
3for an affordable housing project, an employer-assisted
4housing project, or technical assistance. No tax credits shall
5be allowed for a project without a reservation of such tax
6credits by an administrative housing agency for that project.
7    (c) The Authority must adopt rules establishing criteria
8for eligible costs and donations, issuing and verifying tax
9credits, and selecting projects that are eligible for a tax
11    (d) Tax credits for employer-assisted housing projects are
12limited to that pool of tax credits that have been set aside
13for employer-assisted housing. Tax credits for general
14operating support are limited to 10% of the total tax credit
15reservation for the related project (other than general
16operating support) and are also limited to that pool of tax
17credits that have been set aside for general operating
18support. Tax credits for technical assistance are limited to
19that pool of tax credits that have been set aside for technical
21    (e) The amount of tax credits reserved by the
22administrative housing agency for an approved project is
23limited to $32,850,352 in State fiscal years 2022 and 2023 $13
24million in the initial year and shall increase by 5% each
25fiscal year thereafter by 5%. The City of Chicago shall
26receive 24.5% of total tax credits authorized for each fiscal



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1year. The Authority shall receive the balance of the tax
2credits authorized for each fiscal year. The tax credits may
3be used anywhere in this State. The tax credits have the
4following set-asides:
5        (1) for employer-assisted housing projects, $2
6    million; and
7        (2) for general operating support and technical
8    assistance, $1 million.
9    The balance of the funds must be used for affordable
10housing projects. During the first 9 months of a fiscal year,
11if an administrative housing agency is unable to reserve the
12tax credits set aside for the purposes described in subsection
13(e), the administrative housing agency may reserve the tax
14credits for any approved projects.
15    (f) The administrative housing agency that reserves tax
16credits for an affordable housing project must record against
17the land upon which the affordable housing project is located
18an instrument to assure that the property maintains its
19affordable housing compliance for a minimum of 10 years. The
20Authority has flexibility to assure that the instrument does
21not cause undue hardship on homeowners.
22(Source: P.A. 92-491, eff. 8-23-01; 93-369, eff. 7-24-03.)".