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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 HB0504 Engrossed -2- LRB9202512MWdv 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 HB0504 Engrossed -3- LRB9202512MWdv 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 HB0504 Engrossed -4- LRB9202512MWdv 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 HB0504 Engrossed -5- LRB9202512MWdv 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.