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91_HB4074eng HB4074 Engrossed LRB9112134STsb 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 nonprofit 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, nonprofit, or governmental. 25 "Employer-assisted housing program" means a program 26 through which employers assist their employees in acquiring 27 homes in close proximity to their jobs. 28 "Fund" means the Live Near Work Fund. 29 "Median income" means the United States Department of 30 Housing and Urban Development area median income. HB4074 Engrossed -2- LRB9112134STsb 1 "Municipality" means any city, village, or incorporated 2 town within the State of Illinois. 3 "Nonprofit" or "nonprofit housing organization" means any 4 organization that the Internal Revenue Service of the United 5 States Department of the Treasury has ruled is exempt from 6 income taxation under paragraph (3), (4), or (5) of 7 subsection (c) of Section 501 of the Internal Revenue Code of 8 1986 and has as a stated purpose to produce, maintain, 9 operate, or promote affordable housing. 10 Section 15. Live Near Work Fund. The Authority must use 11 moneys appropriated to it from the Live Near Work Fund, a 12 special fund created in the State treasury, to implement and 13 administer the purposes of this Act. 14 Section 20. Powers. 15 (a) The Authority is authorized to make grants from the 16 Fund to employers, municipalities, counties, and nonprofit 17 housing organizations to develop and implement employer- 18 assisted housing programs for work forces throughout the 19 State. 20 (b) The Authority shall adopt rules establishing 21 standards and procedures for determining eligibility for 22 these grants, regulating the use of funds under these grants, 23 and periodically reporting the results and impacts of 24 activities funded by these grants. 25 (c) The Authority shall work with stakeholders to 26 develop criteria to attract and evaluate proposals from 27 employers, housing agencies, counties, or municipalities, or 28 any combination of these. 29 (d) The Authority may target programs that benefit 30 employees earning less than 80% of the area median income. 31 (e) The Authority may use its discretion, based on 32 criteria developed under subsection (c) of this Section, to HB4074 Engrossed -3- LRB9112134STsb 1 allow employees earning less than 120% of the area median 2 income to be eligible. 3 Section 25. Matching funds. Grants from the Fund may be 4 used to match employer investments toward housing resources 5 for participating employees. The Authority must approve the 6 employer's home buying and home counseling plan in order for 7 that employer to be eligible to receive moneys from the Fund. 8 Employer investments may include, but are not limited to: 9 (a) Down payment assistance. The Authority may match, at 10 up to 100%, money provided by the employer to the employee 11 for the purchase of a home. 12 (b) Contributions to second mortgage pools, which are 13 low interest loan programs accessible to qualified 14 individuals that assist in the purchase of a home. The 15 Authority may set standards for eligible second mortgage 16 pools. The Authority may match, at up to 100%, employer 17 contributions to second mortgage pools. 18 (c) Mortgage guarantee programs. The Authority may 19 match, at up to 100%, employer contributions toward repayment 20 of any loans that default that are secured by an employee and 21 guaranteed by the employer. 22 (d) Savings plans such as Individual Development 23 Accounts. The Authority may match, at up to 100%, 24 contributions by employers to employee savings plans 25 designated for purchase of a home. 26 (e) Rent subsidy programs for eligible employees. While 27 employees are saving and preparing for home ownership, the 28 employer may choose to subsidize the rental of housing close 29 to work. The Authority may match, at up to 100%, employer 30 contributions toward rental payments. 31 (f) Home buyer education and home ownership counseling. 32 The Authority may match, at up to 100%, employer 33 contributions toward home buyer education and home ownership HB4074 Engrossed -4- LRB9112134STsb 1 counseling. 2 Section 30. Funds for administration and nonprofit 3 organizations. 4 (a) Grants authorized under Section 20 may be used to 5 support administration of employer-assisted housing programs 6 and technical assistance. Nonprofit grants shall not be 7 greater than 20% of the total Live Near Work Fund. 8 (b) Nonprofit housing organizations are eligible for 9 funds for, but not limited to, the following: (i) program 10 administration to the employers; and (ii) technical 11 assistance to home ownership counseling education to the 12 employees of participating employers for not more than 2 13 years at a time. To be eligible for funding, the nonprofit 14 housing organization must demonstrate employer interest in 15 participating in an employer-assisted housing program. 16 (c) Municipalities and counties are eligible to receive 17 grants authorized by Section 20 if: 18 (1) the municipality or county is acting as an 19 agent of the State in promoting employer-assisted housing 20 among employers in its jurisdiction and in compliance 21 with eligibility criteria established by the Authority, 22 and 23 (2) the municipality or county has demonstrated 24 employer interest in participating in an 25 employer-assisted program, or the municipality or county 26 is acting in the capacity of employer and providing 27 employer-assisted housing services to its work force. 28 Section 35. Annual reports. The Authority shall report 29 annually to the General Assembly on the program. The report 30 shall specify the amounts expended under the program and the 31 number of housing units, local governments, and employees 32 served by the program. HB4074 Engrossed -5- LRB9112134STsb 1 Section 40. Expiration. This Act is repealed on July 1, 2 2005. 3 Section 95. The State Finance Act is amended by adding 4 Section 5.541 as follows: 5 (30 ILCS 105/5.541 new) 6 Section 5.541. The Live Near Work Fund.