State of Illinois
92nd General Assembly
Legislation

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92_HB0504eng

 
HB0504 Engrossed                               LRB9202512MWdv

 1        AN ACT concerning housing affordability.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 1. Short title. This Act may be cited as the Live
 5    Near Work Act.

 6        Section 5. Purposes. The purposes of this Act are:
 7        (1)  To expand home ownership  opportunities  to  working
 8    individuals and families.
 9        (2)  To encourage employers, counties, and municipalities
10    to invest in employer-assisted housing.
11        (3)  To  provide  matching grants to employers, counties,
12    municipalities, and non-profit housing organizations  engaged
13    in employer-assisted housing.
14        (4)  To  reduce  traffic  congestion by reducing employee
15    commute times.

16        Section 10. Definitions. In this Act:
17        "Authority"  means  the  Illinois   Housing   Development
18    Authority.
19        "County" means any county within the State of Illinois.
20        "Employee"  means  a  salaried  or  hourly individual who
21    works for an employer and whose median household income  does
22    not exceed 100% of the area median income.
23        "Employer"  means a business with operations in the State
24    of Illinois, including private, non-profit,  or  governmental
25    operations.
26        "Employer-assisted   housing  program"  means  a  program
27    through which employers assist their employees  in  acquiring
28    homes in close proximity to their jobs.
29        "Fund" means the Live Near Work Fund.
30        "Median  income"  means  the  United States Department of
 
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 1    Housing and Urban Development area median income.
 2        "Municipality" means any city, village,  or  incorporated
 3    town within the State of Illinois.
 4        "Non-profit"  or  "non-profit housing organization" means
 5    any organization that the Internal  Revenue  Service  of  the
 6    United  States Department of the Treasury has ruled is exempt
 7    from income taxation under paragraph  (3),  (4),  or  (5)  of
 8    subsection (c) of Section 501 of the Internal Revenue Code of
 9    1986  and  has  as  a  stated  purpose  to produce, maintain,
10    operate, or promote affordable housing.

11        Section 15. Live Near Work Fund.  The Live Near Work Fund
12    is created as a special fund in the State  treasury.   Moneys
13    in  the  fund  may  be used, subject to appropriation, by the
14    Authority to implement and administer this Act.

15        Section 20. Powers.
16        (a)  The Authority is authorized to make grants from  the
17    Fund  to  employers, municipalities, counties, and non-profit
18    housing    organizations    to    develop    and    implement
19    employer-assisted housing programs for work forces throughout
20    the State.
21        (b)  The  Authority   must   adopt   rules   establishing
22    standards  and  procedures  for  determining  eligibility for
23    these grants, regulating the use of funds under these grants,
24    and  periodically  reporting  the  results  and  impacts   of
25    activities funded by these grants.
26        (c)  The Authority must work with stakeholders to develop
27    criteria  to  attract  and evaluate proposals from employers,
28    housing  agencies,  counties,  or  municipalities,   or   any
29    combination of these.
30        (d)  The  Authority  may  target  programs  that  benefit
31    employees earning less than 80% of the area median income.
32        (e)  The  Authority  may  use  its  discretion,  based on
 
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 1    criteria developed under subsection (c) of this  Section,  to
 2    allow  employees  earning  less  than 120% of the area median
 3    income to be eligible.

 4        Section 25. Matching funds. Grants from the Fund  may  be
 5    used  to  match employer investments in housing resources for
 6    participating  employees.  The  Authority  must  approve  the
 7    employer's home buying and home counseling plan in order  for
 8    that employer to be eligible to receive moneys from the Fund.
 9    Employer investments may include, but are not limited to:
10        (a)  Down payment assistance. The Authority may match, at
11    up  to  100%,  money provided by the employer to the employee
12    for the purchase of a home.
13        (b)  Contributions to second mortgage  pools,  which  are
14    low   interest   loan   programs   accessible   to  qualified
15    individuals that assist  in  the  purchase  of  a  home.  The
16    Authority  may  set  standards  for  eligible second mortgage
17    pools. The Authority may  match,  at  up  to  100%,  employer
18    contributions to second mortgage pools.
19        (c)  Mortgage   guarantee  programs.  The  Authority  may
20    match, at up to 100%, employer contributions toward repayment
21    of any loans in default that are secured by an  employee  and
22    guaranteed by the employer.
23        (d)  Savings   plans   such   as  Individual  Development
24    Accounts.  The  Authority  may  match,   at   up   to   100%,
25    contributions   by   employers   to  employee  savings  plans
26    designated for purchase of a home.
27        (e)  Rent subsidy programs for eligible employees.  While
28    employees  are  saving  and preparing for home ownership, the
29    employer may choose to subsidize the rental of housing  close
30    to  work.  The  Authority  may match, at up to 100%, employer
31    contributions toward rental payments.
32        (f)  Home buyer education and home ownership  counseling.
33    The   Authority   may   match,   at   up  to  100%,  employer
 
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 1    contributions toward home buyer education and home  ownership
 2    counseling.

 3        Section   30.  Funds  for  administration  and  nonprofit
 4    organizations.
 5        (a)  Grants authorized under Section 20 may  be  used  to
 6    support   the  administration  of  employer-assisted  housing
 7    programs and technical assistance. Non-profit grants may  not
 8    be greater than 20% of the total amount of moneys in the Live
 9    Near Work Fund.
10        (b)  Non-profit  housing  organizations  are eligible for
11    funds for, but not limited to,  the  following:  (i)  program
12    administration to the employers and (ii) technical assistance
13    to  home  ownership  counseling education to the employees of
14    participating employers for not more than 2 years at a  time.
15    To   be   eligible   for   funding,   the  nonprofit  housing
16    organization   must   demonstrate   employer   interest    in
17    participating in an employer-assisted housing program.
18        (c)  Municipalities  and counties are eligible to receive
19    grants authorized by Section 20 if:
20             (1)  the municipality or  county  is  acting  as  an
21        agent of the State in promoting employer-assisted housing
22        among  employers  in  its  jurisdiction and in compliance
23        with eligibility criteria established by  the  Authority;
24        and
25             (2)  the  municipality  or  county  has demonstrated
26        employer    interest    in    participating     in     an
27        employer-assisted  program, or the municipality or county
28        is acting in  the  capacity  of  employer  and  providing
29        employer-assisted housing services to its work force.

30        Section  35.  Annual  reports.  The Authority must report
31    annually to the General Assembly on the program.  The  report
32    must  specify  the amounts expended under the program and the
 
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 1    number of housing units,  local  governments,  and  employees
 2    served by the program.

 3        Section  40.  Expiration. This Act is repealed on July 1,
 4    2006.

 5        Section 95. The State Finance Act is  amended  by  adding
 6    Section 5.545 as follows:

 7        (30 ILCS 105/5.545 new)
 8        Section 5.545.  The Live Near Work Fund.

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

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