|
|
||||
| Public Act 093-0727 |
||||
| ||||
| ||||
AN ACT in relation to housing.
| ||||
Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
| ||||
Section 5. The Federally Subsidized Housing Preservation | ||||
Act is amended by
changing Sections 1, 3, 4, 5, 6, 7, 8, and | ||||
10.1 as follows:
| ||||
(310 ILCS 60/1) (from Ch. 67 1/2, par. 1151)
| ||||
Sec. 1. Short title. This Act shall be known and may be | ||||
cited as
the Federally Assisted
Subsidized Housing | ||||
Preservation Act.
| ||||
(Source: P.A. 86-810.)
| ||||
(310 ILCS 60/3) (from Ch. 67 1/2, par. 1153)
| ||||
Sec. 3. Definitions. As used in this Act:
| ||||
(a) "IHDA" means the Illinois Housing Development | ||||
Authority.
| ||||
(b) (Blank).
"FmHA" means the Farmers Home Administration | ||||
or a local
housing
authority administering an FmHA program.
| ||||
(c) (Blank).
"HUD" means the United States Department of | ||||
Housing and
Urban
Development, or the Federal Housing | ||||
Administration or a local housing
authority administering a HUD | ||||
program.
| ||||
(d) "Owner" means the person, partnership, or corporation | ||||
that
holds title to an assisted housing development
is a
party | ||||
to a contract with HUD or FmHA providing for a mortgage, | ||||
mortgage
assistance, mortgage insurance, or rent subsidy; or | ||||
any spouse, employee,
agent, partner, master lessee, business | ||||
affiliate or associate, or
successor in interest of such | ||||
person, partnership or corporation, that
receives or demands | ||||
rent for the subsidized housing.
| ||||
(e) "Assisted housing" or "assisted housing development" | ||||
means a rental
housing
development, or a mixed use development | ||||
that includes rental housing, that receives government | ||
assistance under any of the following
programs:
| ||
(1) New construction, substantial rehabilitation, | ||
moderate
rehabilitation, property disposition and loan | ||
management set-aside programs, or
any other program | ||
providing project-based
rental assistance, under Section 8 | ||
of the United States Housing
Act of 1937, as amended.
| ||
(2) The Below-Market-Interest-Rate Program under | ||
Section
221(d)(3) of the National Housing Act.
| ||
(3) Section 236 of the National Housing Act.
| ||
(4) Section 202 of the National Housing Act.
| ||
(5) Programs for rent supplement assistance under | ||
Section
101 of the Housing and Urban Development Act of | ||
1965, as amended.
| ||
(6) Programs under Section 514 or 515 of the Housing | ||
Act of
1949.
| ||
(7) Section 42 of the Internal Revenue Code.
| ||
"Subsidized housing" means any housing or unit of housing | ||
financed
by a loan or mortgage insured or held by HUD as | ||
follows:
| ||
(1) insured or held by HUD under Section 221(d)(3) of the | ||
National
Housing Act and assisted under Section 101 of the | ||
Housing and Urban
Development Act of 1965 or Section 8 of the | ||
United States Housing Act of 1937;
| ||
(2) insured or held by HUD and bears interest at a rate | ||
determined under
the proviso of Section 221(d)(3) of the | ||
National Housing Act;
| ||
(3) insured, assisted or held by HUD under Section 236 of | ||
the National
Housing Act;
| ||
(4) insured or held by HUD under Section 514 or 515 of the | ||
Housing Act of
1949; or
| ||
(5) held by HUD and formerly insured under a program listed | ||
in this
subsection (e).
| ||
(f) "Tenant" means a tenant, subtenant, lessee, sublessee | ||
or other
person entitled to possession, occupancy or benefits | ||
of a rental unit
within the assisted
subsidized housing.
| ||
(g) "Tenant Association" means an association, corporation | ||
or other
organization that represents at least a majority of | ||
the tenants in the
assisted
subsidized housing building.
| ||
(h) "Prepayment" means the payment in full or refinancing | ||
of the
federally insured or federally held mortgage | ||
indebtedness prior to its
original maturity date, or the | ||
voluntary cancellation of mortgage
insurance, on an assisted | ||
housing development described in paragraph
(2), (3), or (4) of | ||
subsection (e) that would have the effect of
removing the | ||
affordability restrictions applicable to the assisted housing | ||
development under the programs described in paragraph (2), (3), | ||
or (4) of subsection (e).
| ||
(i) "Termination" means: | ||
(1) the expiration or early termination of an assisted | ||
housing development's participation in a federal subsidy | ||
program for assisted housing described in paragraph (1) of | ||
subsection (e), or | ||
(2) the expiration or early termination of an assisted | ||
housing development's affordability restrictions described | ||
in Section 42(g) of the Internal Revenue Code for assisted | ||
housing described in paragraph (7) of subsection (e),
when | ||
that event results in an increase in tenant rents, a change | ||
in the form of subsidy from project-based to tenant-based, | ||
or a change in use of the assisted housing development to a | ||
use other than rental housing.
| ||
(j) "Affected public entities" means: the mayor of the city | ||
in
which the assisted housing development is located or, if the
| ||
development is located in an unincorporated area, the | ||
chairperson of
the county board; the public
housing authority | ||
in whose jurisdiction the assisted housing development is | ||
located, if any; and IHDA.
| ||
(k) "Affordability restrictions" means limits on rents | ||
that owners may charge for occupancy of a rental unit in | ||
assisted housing and limits on tenant income for persons or | ||
families seeking to qualify as tenants in assisted housing.
| ||
(Source: P.A. 86-810.)
| ||
(310 ILCS 60/4) (from Ch. 67 1/2, par. 1154)
| ||
Sec. 4. Notice of intent to sell.
| ||
(a) An owner may not sell or otherwise dispose of
assisted
| ||
subsidized housing, complete prepayment, or complete a | ||
termination
unless, not less than 12
6 months before the | ||
prepayment, termination, sale, or
disposal, the owner submits | ||
to all tenants of the assisted
subsidized
housing and to all | ||
affected public entities
IHDA a notice of intent to
complete | ||
prepayment, complete termination, sell, or otherwise dispose
| ||
of the property.
| ||
(a-5) Every notice required under subsection (a) must | ||
include the address
of
the
assisted housing, characteristics of | ||
the property including the number of
units, and the
names and | ||
addresses of the owners. The notice must also include the date | ||
on
which
the
owner intends to sell, lease, complete prepayment, | ||
complete termination, or otherwise dispose of the property, as | ||
well as a detailed list of affordability restrictions | ||
applicable to the property.
IHDA shall adopt rules concerning | ||
the content, format, delivery, and
publication of such
notices.
| ||
(b) Within 60 days after the date of the owner's notice | ||
pursuant to
subsection (a), the tenants may notify the owner | ||
that they have formed a
Tenant Association meeting the | ||
requirements of this Act and shall designate
the name of its | ||
representative or representatives in the notice.
The Tenant | ||
Association may enter into an agreement with a not-for-profit
| ||
corporation or private purchaser in which the not-for-profit
| ||
corporation or private purchaser agrees to represent the | ||
residents and
maintain the development in a manner that | ||
preserves the housing development's
existing affordability | ||
restrictions or that would qualify the housing development as | ||
affordable housing as defined in the Illinois Affordable | ||
Housing Act. The agreement must set forth the minimum length of | ||
time that the affordability restrictions will be in effect. The | ||
Tenant Association and individual tenants in the assisted | ||
housing shall each have the right to bring an action for | ||
specific performance or other injunctive relief for | ||
enforcement of the agreement, and the agreement must contain | ||
provisions to this effect along with such other remedies for | ||
breach as the Tenant Association and the not-for-profit | ||
corporation or private purchaser may agree. Once such an | ||
agreement is entered into, the
not-for-profit corporation or | ||
private purchaser shall assume all rights and
responsibilities | ||
attributed to the Tenant Association under this Act.
| ||
(Source: P.A. 86-810; 86-1352.)
| ||
(310 ILCS 60/5) (from Ch. 67 1/2, par. 1155)
| ||
Sec. 5. Offer for sale to Tenant Association. Within 60 | ||
days after the
Tenant Association has complied with the
| ||
requirements of Section 4, the owner shall, before selling, | ||
leasing, completing prepayment, completing termination, or
| ||
otherwise disposing of the
property, provide to the Tenant | ||
Association a
bona fide offer for sale of the property which | ||
shall contain the essential
terms of the sale, including, at a | ||
minimum, the following: the
sales price; the terms of seller | ||
financing, if any, including the amount,
the interest rate, and | ||
amortization rate thereof; the terms of assumable
financing, if | ||
any, including the amount, the interest rate, and the
| ||
amortization rate thereof; and proposed improvements, if any, | ||
to the
property to be made by the owner in connection with the | ||
sale.
| ||
(Source: P.A. 86-810.)
| ||
(310 ILCS 60/6) (from Ch. 67 1/2, par. 1156)
| ||
Sec. 6. Notice of intent to purchase.
| ||
(a) The Tenant Association shall
notify the owner in | ||
writing, within 90
30 days after the receipt of the
bona
fide | ||
offer of sale, of its intent to purchase the assisted
| ||
subsidized
housing.
| ||
(b) The owner shall, after receiving a notice pursuant to | ||
subsection
(a), comply with any reasonable request to make | ||
documents available to the
Tenant Association, during normal | ||
business hours at the owner's principal place
of
business | ||
within 15 days of receiving such a request, including but not | ||
limited
to: a
floor plan of the development; itemized lists of | ||
monthly operating
expenses, capital expenditures in each of the | ||
2 preceding calendar years
and deferred maintenance costs; the | ||
amount of project reserves; utility
consumption rates; copies | ||
of financial and physical inspection reports filed
with | ||
federal, State or local agencies; the most recent rent roll; a | ||
list of
tenants; a list of vacant units; and a statement of the | ||
vacancy rate at the
development for each of the 2 preceding | ||
calendar years.
| ||
(Source: P.A. 86-810.)
| ||
(310 ILCS 60/7) (from Ch. 67 1/2, par. 1157)
| ||
Sec. 7. Bona fide offer to purchase; contract.
| ||
(a) The Tenant Association shall, within 90 days after it
| ||
notifies the owner of its intent to purchase, provide the owner | ||
with a bona
fide offer to purchase evidenced by a purchase | ||
contract reflecting a sales
price and terms agreed to by the | ||
parties or the sales price and terms
determined pursuant to | ||
subsection (b) of this Section and an earnest
money deposit | ||
equal to 5% of the bona fide offer to purchase.
| ||
(b) If the parties are unable to agree to a sales price | ||
within the first
60 days of the 90 day period specified in | ||
subsection (a), the sale price of
the assisted
subsidized
| ||
housing shall be based upon its fair market
value, based on its | ||
highest and best use, without affordability restrictions, as
| ||
determined by 2 independent appraisers qualified to perform | ||
multi-family
housing appraisals. One appraiser shall be | ||
selected and paid by the owner
and the other shall be selected | ||
and paid by the Tenant Association. If the
appraisers fail to | ||
agree upon a fair market value, the owner and the
Tenant | ||
Association shall either jointly select and pay a third | ||
appraiser whose
appraisal shall be binding, or agree to take an | ||
average of
the 2 appraisals. All appraisers shall be MAI | ||
certified. The
determination of the sales price pursuant to | ||
this subsection shall be
completed within the 90 day period | ||
specified in subsection (a) of this Section.
| ||
(c) The Tenant Association shall agree to close on the sale | ||
within 90
days from the date the parties sign the contract to | ||
purchase.
| ||
(Source: P.A. 86-810; 86-1352.)
| ||
(310 ILCS 60/8) (from Ch. 67 1/2, par. 1158)
| ||
Sec. 8. The provisions of this Act shall not apply to any | ||
of the
following: a government taking by eminent domain or | ||
negotiated purchase; a
forced sale pursuant to a foreclosure; | ||
or a transfer by gift, devise or operation of law; or an | ||
owner's sale or other disposition of assisted housing in a | ||
manner pursuant to which the property after the sale or other | ||
disposition continues to be assisted housing as defined in this | ||
Act.
| ||
(Source: P.A. 86-810.)
| ||
(310 ILCS 60/10.1) (from Ch. 67 1/2, par. 1160.1)
| ||
Sec. 10.1. Civil action against owner. The Tenant | ||
Association, or one
or
more tenants in the
assisted
subsidized
| ||
housing, may bring a civil action against an owner
who has
| ||
violated this Act. An owner found to have violated any | ||
provision of this
Act shall, in addition to any other damages, | ||
pay a civil penalty to each
tenant in the assisted
subsidized
| ||
housing in the amount of $500 per
tenant, and
shall also pay | ||
the attorney's fees and costs incurred in bringing the action.
| ||
(Source: P.A. 86-810; 86-1352)
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law. | ||