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91_HB1358
LRB9104048SMdv
1 AN ACT to amend the Illinois Affordable Housing Act by
2 changing Sections 3 and 8.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Affordable Housing Act is
6 amended by changing Sections 3 and 8 as follows:
7 (310 ILCS 65/3) (from Ch. 67 1/2, par. 1253)
8 Sec. 3. Definitions. As used in this Act:
9 (a) "Program" means the Illinois Affordable Housing
10 Program.
11 (b) "Trust Fund" means the Illinois Affordable Housing
12 Trust Fund.
13 (c) "Low-income household" means a single person, family
14 or unrelated persons living together whose adjusted income is
15 more than 50%, but less than 80%, of the median income of the
16 area of residence, adjusted for family size, as such adjusted
17 income and median income for the area are determined from
18 time to time by the United States Department of Housing and
19 Urban Development for purposes of Section 8 of the United
20 States Housing Act of 1937.
21 (d) "Very low-income household" means a single person,
22 family or unrelated persons living together whose adjusted
23 income is not more than 50% of the median income of the area
24 of residence, adjusted for family size, as such adjusted
25 income and median income for the area are determined from
26 time to time by the United States Department of Housing and
27 Urban Development for purposes of Section 8 of the United
28 States Housing Act of 1937.
29 (e) "Affordable housing" means residential housing that,
30 so long as the same is occupied by low-income households or
31 very low-income households, requires payment of monthly
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1 housing costs, including utilities other than telephone, of
2 no more than 30% of the maximum allowable income as stated
3 for such households as defined in this Section.
4 (f) "Multi-family housing" means a building or buildings
5 providing housing to 5 or more households.
6 (g) "Single-family housing" means a building containing
7 one to 4 dwelling units, including a mobile home as defined
8 in subsection (b) of Section 3 203 of the Mobile Home
9 Landlord and Tenant Rights Act, as amended.
10 (h) "Community-based organization" means a
11 not-for-profit entity whose governing body includes a
12 majority of members who reside in the community served by the
13 organization.
14 (i) "Advocacy organization" means a not-for-profit
15 organization which conducts, in part or in whole, activities
16 to influence public policy on behalf of low-income or very
17 low-income households.
18 (j) "Program Administrator" means the Illinois Housing
19 Development Authority.
20 (k) "Funding Agent" means the Illinois Department of
21 Revenue.
22 (l) "Commission" means the Affordable Housing Advisory
23 Commission.
24 (m) "Congregate housing" means a building or structure
25 in which 2 or more households, inclusive, share common living
26 areas and may share child care, cleaning, cooking and other
27 household responsibilities.
28 (n) "Eligible applicant" means a proprietorship,
29 partnership, for-profit corporation, not-for-profit
30 corporation or unit of local government which seeks to use
31 fund assets as provided in this Article.
32 (o) "Moderate income household" means a single person,
33 family or unrelated persons living together whose adjusted
34 income is more than 80% but less than 120% of the median
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1 income of the area of residence, adjusted for family size, as
2 such adjusted income and median income for the area are
3 determined from time to time by the United States Department
4 of Housing and Urban Development for purposes of Section 8 of
5 the United States Housing Act of 1937.
6 (p) "Affordable Housing Program Trust Fund Bonds or
7 Notes" means the bonds or notes issued by the Program
8 Administrator under the Illinois Housing Development Act to
9 further the purposes of this Act.
10 (q) "Trust Fund Moneys" means all moneys, deposits,
11 revenues, income, interest, dividends, receipts, taxes,
12 proceeds and other amounts or funds deposited or to be
13 deposited in the Trust Fund pursuant to Section 5(b) of this
14 Act and any proceeds, investments or increase thereof.
15 (r) "Program Escrow" means accounts, except those
16 accounts relating to any Affordable Housing Program Trust
17 Fund Bonds or Notes, designated by the Program Administrator,
18 into which Trust Fund Moneys are deposited.
19 (s) "Senior project-based housing" means multi-family
20 residential buildings which offer affordable rentals to
21 senior citizens of low to moderate income as a result of
22 subsidy agreements under programs, including but not limited
23 to, Project Based Section 8 Assistance from the United States
24 Department of Housing and Urban Development, and Low-Income
25 Housing Tax Credit Programs as provided for in Section 42 of
26 the Internal Revenue Code.
27 (Source: P.A. 88-93; 89-286, eff. 8-10-95; revised 10-31-98.)
28 (310 ILCS 65/8) (from Ch. 67 1/2, par. 1258)
29 Sec. 8. Uses of Trust Fund.
30 (a) Subject to annual appropriation to the Funding Agent
31 and subject to the prior dedication, allocation, transfer and
32 use of Trust Fund Moneys as provided in Sections 8(b), 8(c)
33 and 9 of this Act, the Trust Fund may be used to make grants,
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1 mortgages, or other loans to acquire, construct,
2 rehabilitate, develop, operate, insure, and retain affordable
3 single-family and multi-family housing in this State for
4 low-income and very low-income households. The majority of
5 monies appropriated to the Trust Fund in any given year are
6 to be used for affordable housing for very low-income
7 households.
8 (b) For each fiscal year commencing with fiscal year
9 1994, the Program Administrator shall certify from time to
10 time to the Funding Agent, the Comptroller and the State
11 Treasurer amounts, up to an aggregate in any fiscal year of
12 $10,000,000, of Trust Fund Moneys expected to be used or
13 pledged by the Program Administrator during the fiscal year
14 for the purposes and uses specified in Sections 8(c) and 9 of
15 this Act. Subject to annual appropriation, upon receipt of
16 such certification, the Funding Agent and the Comptroller
17 shall dedicate and the State Treasurer shall transfer not
18 less often than monthly to the Program Administrator or its
19 designated payee, without requisition or further request
20 therefor, all amounts accumulated in the Trust Fund within
21 the State Treasury and not already transferred to the Loan
22 Commitment Account prior to the Funding Agent's receipt of
23 such certification, until the Program Administrator has
24 received the aggregate amount certified by the Program
25 Administrator, to be used solely for the purposes and uses
26 authorized and provided in Sections 8(c) and 9 of this Act.
27 Neither the Comptroller nor the Treasurer shall transfer,
28 dedicate or allocate any of the Trust Fund Moneys transferred
29 or certified for transfer by the Program Administrator as
30 provided above to any other fund, nor shall the Governor
31 authorize any such transfer, dedication or allocation, nor
32 shall any of the Trust Fund Moneys so dedicated, allocated or
33 transferred be used, temporarily or otherwise, for interfund
34 borrowing, or be otherwise used or appropriated, except as
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1 expressly authorized and provided in Sections 8(c) and 9 of
2 this Act for the purposes and subject to the priorities,
3 limitations and conditions provided for therein until such
4 obligations, uses and dedications as therein provided, have
5 been satisfied.
6 (c) Notwithstanding Section 5(b) of this Act, any Trust
7 Fund Moneys transferred to the Program Administrator pursuant
8 to Section 8(b) of this Act, or otherwise obtained, paid to
9 or held by or for the Program Administrator, or pledged
10 pursuant to resolution of the Program Administrator, for
11 Affordable Housing Program Trust Fund Bonds or Notes under
12 the Illinois Housing Development Act, and all proceeds,
13 payments and receipts from investments or use of such moneys,
14 including any residual or additional funds or moneys
15 generated or obtained in connection with any of the
16 foregoing, may be held, pledged, applied or dedicated by the
17 Program Administrator as follows:
18 (1) as required by the terms of any pledge of or
19 resolution of the Program Administrator authorized under
20 Section 9 of this Act in connection with Affordable
21 Housing Program Trust Fund Bonds or Notes issued pursuant
22 to the Illinois Housing Development Act;
23 (2) to or for costs of issuance and administration
24 and the payments of any principal, interest, premium or
25 other amounts or expenses incurred or accrued in
26 connection with Affordable Housing Program Trust Fund
27 Bonds or Notes, including rate protection contracts and
28 credit support arrangements pertaining thereto, and,
29 provided such expenses, fees and charges are obligations,
30 whether recourse or nonrecourse, and whether financed
31 with or paid from the proceeds of Affordable Housing
32 Program Trust Fund Bonds or Notes, of the developers,
33 mortgagors or other users, the Program Administrator's
34 expenses and servicing, administration and origination
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1 fees and charges in connection with any loans, mortgages,
2 or developments funded or financed or expected to be
3 funded or financed, in whole or in part, from the
4 issuance of Affordable Housing Program Trust Fund Bonds
5 or Notes;
6 (3) to or for costs of issuance and administration
7 and the payments of principal, interest, premium, loan
8 fees, and other amounts or other obligations of the
9 Program Administrator, including rate protection
10 contracts and credit support arrangements pertaining
11 thereto, for loans, commercial paper or other notes or
12 bonds issued by the Program Administrator pursuant to the
13 Illinois Housing Development Act, provided that the
14 proceeds of such loans, commercial paper or other notes
15 or bonds are paid or expended in connection with, or
16 refund or repay, loans, commercial paper or other notes
17 or bonds issued or made in connection with bridge loans
18 or loans for the construction, renovation, redevelopment,
19 restructuring, reorganization of Affordable Housing and
20 related expenses, including development costs, technical
21 assistance, or other amounts to construct, preserve,
22 improve, renovate, rehabilitate, refinance, or assist
23 Affordable Housing, including financially troubled
24 Affordable Housing, permanent or other financing for
25 which has been funded or financed or is expected to be
26 funded or financed in whole or in part by the Program
27 Administrator through the issuance of or use of proceeds
28 from Affordable Housing Program Trust Fund Bonds or
29 Notes;
30 (4) to or for direct expenditures or reimbursement
31 for development costs, technical assistance, or other
32 amounts to construct, preserve, improve, renovate,
33 rehabilitate, refinance, or assist Affordable Housing,
34 including financially troubled Affordable Housing,
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1 permanent or other financing for which has been funded or
2 financed or is expected to be funded or financed in whole
3 or in part by the Program Administrator through the
4 issuance of or use of proceeds from Affordable Housing
5 Program Trust Fund Bonds or Notes; and
6 (5) for deposit into any residual, sinking, reserve
7 or revolving fund or pool established by the Program
8 Administrator, whether or not pledged to secure
9 Affordable Housing Program Trust Fund Bonds or Notes, to
10 support or be utilized for the issuance, redemption, or
11 payment of the principal, interest, premium or other
12 amounts payable on or with respect to any existing,
13 additional or future Affordable Housing Program Trust
14 Fund Bonds or Notes, or to or for any other expenditure
15 authorized by this Section 8(c).
16 (6) to or for real estate tax relief grants to
17 owners of senior project-based housing who have signed
18 agreements with the Program Administrator to maintain
19 their senior project-based housing status beyond their
20 subsidized program restriction period for a minimum of 5
21 years, which grants shall be disbursed by the Program
22 Administrator from Trust Fund Moneys for the purposes of
23 this subdivision (c)(6) in the amount of no less than
24 $1,000,000. Grant application standards and criteria
25 shall be governed by rules promulgated by the Program
26 Administrator in consultation with the Commission.
27 (d) All or a portion of the Trust Fund Moneys on deposit
28 or to be deposited in the Trust Fund not already certified
29 for transfer or transferred to the Program Administrator
30 pursuant to Section 8(b) of this Act may be used to secure
31 the repayment of Affordable Housing Program Trust Fund Bonds
32 or Notes, or otherwise to supplement or support Affordable
33 Housing funded or financed or intended to be funded or
34 financed, in whole or in part, by Affordable Housing Program
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1 Trust Fund Bonds or Notes.
2 (e) Assisted housing may include housing for special
3 needs populations such as the homeless, single-parent
4 families, the elderly, or the physically and mentally
5 disabled. The Trust Fund shall be used to implement a
6 demonstration congregate housing project for any such special
7 needs population.
8 (f) Grants from the Trust Fund may include, but are not
9 limited to, rental assistance and security deposit subsidies
10 for low and very low-income households.
11 (g) The Trust Fund may be used to pay actual and
12 reasonable costs for Commission members to attend Commission
13 meetings, and any litigation costs and expenses, including
14 legal fees, incurred by the Program Administrator in any
15 litigation related to this Act or its action as Program
16 Administrator.
17 (h) The Trust Fund may be used to make grants for (1)
18 the provision of technical assistance, (2) outreach, and (3)
19 building an organization's capacity to develop affordable
20 housing projects.
21 (i) Amounts on deposit in the Trust Fund may be used to
22 reimburse the Program Administrator and the Funding Agent for
23 costs incurred in the performance of their duties under this
24 Act, excluding costs and fees of the Program Administrator
25 associated with the Program Escrow to the extent withheld
26 pursuant to paragraph (8) of subsection (b) of Section 5.
27 (Source: P.A. 88-93; 89-286, eff. 8-10-95.)
28 Section 99. Effective date. This Act takes effect July
29 1, 1999.