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92_HB1084 LRB9201028MWdvA 1 AN ACT concerning development rights. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Counties Code is amended by amending 5 Section 5-3003 and by adding Sections 3-5022.5, 5-30024, and 6 5-20025 as follows: 7 (55 ILCS 5/3-5022.5 new) 8 Sec. 3-5022.5. Conservation easements. No person may 9 offer or present for recording and no recorder may accept for 10 recording any conservation easement that does not comply with 11 subsection (f) of Section 5-30024 of the Counties Code or 12 subsection (f) of Section 11-48.2-6B of the Illinois 13 Municipal Code. 14 (55 ILCS 5/5-30003) (from Ch. 34, par. 5-30003) 15 Sec. 5-30003. Definitions. As used in this Division, the 16 following terms shall have the meanings ascribed to them as 17 follows: 18 "Affordable housing". Housing that is low-income housing 19 or moderate income housing. 20 "Affordable housing development". Any housing 21 development that is subsidized by the federal government, the 22 State, or the county, or any housing development in which at 23 least 15% of the dwelling units are subject to covenants or 24 restrictions that require that the dwelling units be sold or 25 rented at prices that preserve them as affordable housing 26 under Section 5-30025. 27 "Affordable housing incentives". A density bonus and 28 other development incentives granted under an affordable 29 housing incentive ordinance under Section 5-30025. 30 "Affordable rent". Monthly housing expenses, including a -2- LRB9201028MWdvA 1 reasonable allowance for utilities, for affordable housing 2 units that are for rent to low- or moderate-income 3 households. 4 "Affordable sales price". A sales price at which low- or 5 moderate-income households can qualify for the purchase of 6 affordable housing, calculated on the basis of underwriting 7 standards of mortgage financing available for the housing 8 development. 9 "Alteration". Any act or process that changes one or 10 more historic, architectural or physical features of an area, 11 site, landscape, place or structure, including, but not 12 limited to, the erection, construction, reconstruction, or 13 removal of any structure; the expansion or significant 14 modification of agricultural activities; surface mining; and 15 clearing, grading or other modification of an area, site or 16 landscape that changes its current or natural condition. 17 "Architectural significance". Embodying the distinctive 18 characteristics of a type, period, style or method of 19 construction or use of indigenous construction, or 20 representing the work of an important builder, designer, 21 architect, or craftsman who has contributed to the 22 development of the community, county, State or country. 23 "Archaeological significance". Importance as an area, 24 site, place or landscape that has yielded or is likely to 25 yield information concerning past patterns of human 26 settlement, or artifacts or information concerning previous 27 cultures in Illinois or previous periods of the present 28 culture. Areas, sites or landscapes of archaeological 29 significance may include, but are not limited to, aboriginal 30 mounds, forts, earthworks, burial grounds, historic or 31 prehistoric ruins, locations of villages, mine excavations or 32 tailings, or other locations. 33 "Bonusable area". Space that is occupied by a public 34 benefit amenity and that is determined by the county to -3- LRB9201028MWdvA 1 satisfy requirements under its land development regulations 2 for additional gross floor area or dwelling units. 3 "Bonus ratio". The ratio of additional square feet of 4 nonresidential floor area granted per square foot of 5 bonusable area. 6 "Building". Any structure designed or constructed for 7 residential, commercial, industrial, agricultural or other 8 use. 9 "Certificate of Appropriateness". A certificate issued 10 by a preservation commission indicating its approval of plans 11 for alteration, construction, demolition, or removal 12 affecting a nominated or designated landmark or property 13 within a nominated or designated preservation district. 14 "Certificate of Economic Hardship". A certificate 15 issued by a Preservation Commission authorizing an 16 alteration, construction, removal or demolition even though a 17 Certificate of Appropriateness has previously been denied or 18 may be denied. 19 "Commissioners". Members of a Preservation Commission. 20 "Conservation Right". A term that includes easements, 21 covenants, deed restrictions or any other type of less than 22 full fee simple interest as that term is defined in Section 1 23 of "An Act relating to conservation rights in real property", 24 approved September 12, 1977, as amended. 25 "Construction". The act of adding an addition to a 26 structure or the erection of a new principal or accessory 27 structure on a lot or property. 28 "Demolition". Any act or process which destroys in part 29 or in whole a landmark or a building or structure within a 30 preservation district. 31 "Density bonus". The percentage of density increase 32 granted over the otherwise maximum allowable net density 33 under the applicable zoning ordinance as of the date of the 34 application to the county for incentives by a developer. The -4- LRB9201028MWdvA 1 density bonus applicable to affordable housing must be at 2 least a 25% increase and must apply to the site of the 3 affordable housing development. 4 "Design Criteria". A standard of appropriate activity 5 that will preserve the historic, architectural, scenic or 6 aesthetic character of a landmark or preservation district. 7 "Design review district". A geographically definable 8 area possessing a significant concentration, linkage, or 9 continuity of sites, buildings, structures, or objects united 10 aesthetically by development or that, in the determination of 11 the county board, has the potential to be united 12 aesthetically by development. 13 "Development incentives". Any of the following: 14 (1) Reductions in building setback requirements. 15 (2) Reductions or waivers of impact fees, 16 application fees for development permits, utility tap-in 17 fees, or other dedications or exactions. 18 (3) Reductions in minimum lot area, width, or 19 depth. 20 (4) Reductions in required parking spaces per 21 dwelling unit or per square foot of floor area. 22 (5) Increased maximum lot coverage. 23 (6) Increased maximum building height or stories. 24 (7) Reductions in minimum building separation 25 requirements, provided that the reductions do not 26 conflict with building code requirements of the State or 27 the county, as applicable. 28 (8) Reductions or waivers of public or nonpublic 29 improvements. 30 (9) Approval by the county board of mixed use 31 zoning in conjunction with the housing project if 32 commercial, office, industrial, or other land uses will 33 contribute significantly to the economic feasibility of 34 the housing development and if the mixed use zoning is -5- LRB9201028MWdvA 1 consistent with the comprehensive plan. 2 (10) Authorization for the affordable housing 3 development to include nonresidential uses, provided the 4 uses or the authorization is consistent with the 5 comprehensive plan. 6 (11) Authorization for affordable housing to be 7 located in a nonresidential zoning district, provided the 8 authorization is consistent with the comprehensive plan. 9 (12) Other incentives, including expedited 10 permitting or processing, proposed by the developer of an 11 affordable housing project or by the county that result 12 in identifiable cost reductions for affordable housing, 13 including direct financial aid in the form of a loan or 14 grant to subsidize or provide low interest financing for 15 on- or off-site improvements, land, or construction 16 costs. 17 "Development Rights". The development rights of a 18 landmark or of a propertywithin a preservation districtas 19 defined in Section 11-48.2-1A of the Illinois Municipal Code. 20 "Development Rights Bank". A reserve for the deposit of 21 development rights as defined in Section 11-48.2-1A of the 22 Illinois Municipal Code. 23 "Exterior Architectural Appearance". The architectural 24 character and general composition of the exterior of a 25 building or structure, including but not limited to the kind, 26 color and texture of the building material and the type, 27 design and character of all windows, doors, light fixtures, 28 signs and appurtenant elements. 29 "Floor area ratio". The ratio of the maximum gross floor 30 area on a lot or parcel to the area of the lot or parcel that 31 is permitted under the land development regulations of a 32 county. 33 "Historic Significance". Character, interest or value as 34 part of the development, heritage, or culture of the -6- LRB9201028MWdvA 1 community, county, State or country; as the location of an 2 important local, county, State or national event; or through 3 identification with a person or persons who made important 4 contributions to the development of the community, county, 5 State or country. 6 "Housing cost". The sum of actual or projected monthly 7 payments for any of the following associated with for-sale 8 affordable housing units: principal and interest on a 9 mortgage loan, including any loan insurance fees; property 10 taxes and assessments; fire and casualty insurance; property 11 maintenance and repairs; homeowner association fees; and a 12 reasonable allowance for utilities. 13 "Housing development". Construction, including 14 rehabilitation, projects consisting of 5 or more residential 15 units, including single-family, two-family, and 16 multiple-family residences for sale or rent. 17 "Incentives". One or more of the following: 18 (1) Affordable housing incentives. 19 (2) Bonus ratio. 20 (3) Density bonus. 21 "Landmark". A property or structure designated as a 22 "Landmark" by ordinance of a county board, pursuant to 23 procedures prescribed herein, which is worthy of 24 rehabilitation, restoration, or preservation because of its 25 historic or scenic or architectural significance. 26 "Landscape". A natural feature or group of natural 27 features such as, but not limited to, valleys, rivers, lakes, 28 marshes, swamps, forests, woods, or hills; or a combination 29 of natural features and buildings, structures, objects, 30 cultivated fields, or orchards in a predominantly rural 31 setting. 32 "Low-income housing". Housing that is affordable, 33 according to the federal Department of Housing and Urban 34 Development, for either home ownership or rental and that is -7- LRB9201028MWdvA 1 occupied, reserved, or marketed for occupancy by households 2 with a gross household income that does not exceed 50% of the 3 median gross household income for households of the same size 4 within the housing region in which the housing is located. 5 "Moderate-income housing". Housing that is affordable, 6 according to the federal Department of Housing and Urban 7 Development, for either home ownership or rental and that is 8 occupied, reserved, or marketed for occupancy by households 9 with a gross household income that is greater than 50% but 10 does not exceed 80% of the median gross household income for 11 households of the same size within the housing region in 12 which the housing is located. 13 "Object". Any tangible thing, including any items of 14 personal property, including, but not limited to, wagons, 15 boats, and farm machinery, that may be easily moved or 16 removed from real property. 17 "Owner of Record". The person or corporation or other 18 legal entity in whose name the property appears on the 19 records of the County Recorder. 20 "Preservation District". An area designated as a 21 "preservation district" by ordinance of a county board and 22 which may contain within definable geographic boundaries one 23 or more landmarks and which may have within its boundaries 24 other properties, areas, sites, landscapes or structures 25 which, while not of such historic or architectural or scenic 26 significance to be designated as landmarks, nevertheless 27 contribute to the overall visual characteristics of the 28 landmark or landmarks located within the district. 29 "Preservation Ordinance". An ordinance enacted by a 30 county board pursuant to this Division that provides for the 31 nomination, designation, and protection of landmarks or 32 preservation districts, and that contains, at a minimum, the 33 elements required by Section 5-30009. 34 "Public benefit amenity". One or more features for -8- LRB9201028MWdvA 1 public use or benefit contained in a development that will 2 entitle the development to a bonus ratio or a density bonus, 3 as applicable, including, but not limited to: 4 (1) Plazas, parks, and other open spaces. 5 (2) Overhead weather protection and street arcades. 6 (3) Bicycle parking and storage facilities. 7 (4) Performing arts theaters. 8 (5) Museums. 9 (6) Access to transit stations and transit 10 easements. 11 (7) Provision of child day-care centers. 12 (8) Provision of affordable housing as part of a 13 nonresidential development. 14 "Purchase of development rights". The purchase of 15 development rights from an owner of land by a county or the 16 voluntary donation of development rights by an owner of land 17 to a county. 18 "Removal". Any relocation of a structure, object or 19 artifact on its site or to another site. 20 "Repair". Any change that is not construction, 21 alteration, demolition, or removal and is necessary or useful 22 for continuing normal maintenance and upkeep. 23 "Scenic Significance". Importance as a result of 24 appearance or character that remains relatively unchanged 25 from and embodies the essential appearance related to a 26 culture from an earlier historic or prehistoric period; as a 27 result of a unique location, appearance, or physical 28 character that creates an established or familiar vista or 29 visual feature; or as a geologic or natural feature 30 associated with the development, heritage or culture of the 31 community, county, State or nation. 32 "Site". The traditional, documented or legendary location 33 of an event, occurrence, action or structure significant in 34 the life or lives of a person, persons, group, or tribe, -9- LRB9201028MWdvA 1 including but not limited to, cemeteries, burial grounds, 2 campsites, battlefields, settlements, estates, gardens, 3 groves, river crossings, routes, trails, caves, quarries, 4 mines or significant trees or other plant life. 5 "Structure". Anything constructed or erected, the use of 6 which requires permanent or temporary location on or in the 7 ground, including (but without limiting the generality of the 8 foregoing) barns, smokehouses, advertising signs, billboards, 9 backstops for tennis courts, bridges, fences, pergolas, 10 gazebos, radio and television antennae, solar collectors, 11 microwave antennae, including supporting towers, roads, ruins 12 or remnants (including foundations), swimming pools or 13 walkways. 14 "Survey". The systematic gathering of information on the 15 architectural, historical, scenic, and archaeological 16 significance of buildings, sites, structures, areas, or 17 landscapes through visual assessment in the field and 18 historical research, for the purpose of identifying landmarks 19 or districts worthy of preservation. 20 "Unified incentives ordinance". An ordinance that (i) 21 provides incentives for either the provision of affordable 22 housing and the dedication of open space or the provision of 23 community design amenities or (ii) complies with all 24 requirements of Section 5-30025 for both an affordable 25 housing incentives ordinance and a community design and open 26 space incentives ordinance. 27 (Source: P.A. 86-962.) 28 (55 ILCS 5/5-30024 new) 29 Sec. 5-30024. Purchase of development rights. 30 (a) A county board may adopt ordinances and amendments 31 to ordinances that include provisions for the purchase of 32 development rights in the manner prescribed in this Section. 33 (b) The purposes of this Section are to: -10- LRB9201028MWdvA 1 (1) preserve open space, critical and sensitive 2 areas, and natural hazard areas; 3 (2) conserve agriculture and forestry uses of land; 4 (3) protect lands and structures of aesthetic, 5 architectural, and historic significance; 6 (4) ensure that the owners of land that is so 7 preserved, conserved, or protected may be reasonably 8 compensated for restrictions on otherwise reasonable uses 9 of their property rights while retaining ownership of the 10 land and the right to commence and continue uses not so 11 restricted; and 12 (5) provide a procedure for counties to engage in 13 preservation, conservation, or protection through 14 conservation easements. 15 (c) The county board may adopt a purchase of development 16 rights program only by ordinance, and an ordinance adopted 17 under this Section must: 18 (1) Be adopted by the county board only after it 19 has adopted: 20 (A) a comprehensive plan; 21 (B) for a purchase of development rights 22 program concerning critical and sensitive areas, a 23 critical and sensitive areas element of the 24 comprehensive plan; 25 (C) for a purchase of development rights 26 program concerning natural hazards, a natural 27 hazards element of the comprehensive plan; 28 (D) for a purchase of development rights 29 program concerning agriculture or forest 30 preservation, an agriculture and forest preservation 31 element of the comprehensive plan; and 32 (E) for a purchase of development rights 33 program concerning historic preservation, an 34 historic preservation ordinance. -11- LRB9201028MWdvA 1 (2) Include a citation to enabling authority to 2 adopt and amend the purchase of development rights 3 ordinance. 4 (3) Include a statement of purpose consistent with 5 subsection (b) of this Section. 6 (4) Include a statement of consistency with the 7 comprehensive plan and with the applicable elements 8 thereof. 9 (5) Describe the development rights that may be 10 purchased in reasonable detail, preferably in 11 quantifiable terms such as area, building coverage ratio, 12 density, floor area ratio, height, or other forms of 13 measurement. 14 (6) Require the county to conduct an appraisal of 15 the value of the parcel from which the county is to 16 purchase development rights and of the value of the 17 development rights to be purchased. 18 (7) Require that the county and any owner of a 19 parcel from which the county is to purchase development 20 rights enter into a written purchase of development 21 rights agreement in compliance with subsections (d) and 22 (e) of this Section. 23 (d) A purchase of development rights agreement must at a 24 minimum: 25 (1) State the address and legal description of the 26 premises. 27 (2) State the name of all record owners of the 28 premises. 29 (3) Describe the development rights to be purchased 30 in reasonable detail, preferably in quantifiable terms 31 such as area, building coverage ratio, density, floor 32 area ratio, height, or other forms of measurement. 33 (4) State the price that the county shall pay in 34 consideration of the purchase of development rights, -12- LRB9201028MWdvA 1 including any agreed terms under which payment is to be 2 made, unless the development rights are being voluntarily 3 donated by the owners of the parcel. 4 (5) Require that the owners of the parcel execute a 5 deed or instrument creating a conservation easement 6 releasing development rights as agreed and describing the 7 released development rights in reasonable detail, 8 preferably in quantifiable terms, with the parcel from 9 which development rights are being purchased as the 10 servient estate and the county as the holder of the 11 easement. 12 (6) Provide that the owner of the parcel must 13 submit the conservation easement to the regional planning 14 commission for its approval before the county is 15 obligated to pay the stated price. 16 (7) Require that the county approve the 17 conservation easement, indicate its approval on the 18 instrument creating the easement, and pay the agreed 19 price within 28 days after submission of the instrument 20 unless the development rights released by the 21 conservation easement vary significantly from the 22 development rights that the owner of the servient estate 23 agreed to release under the purchase of development 24 rights or there is some other significant error in the 25 instrument. 26 (8) Require the owners of the servient estate to 27 record any approved conservation easement with the county 28 recorder within 28 days after payment (or after approval 29 if the development rights are being voluntarily donated). 30 (e) A purchase of development rights agreement may 31 require that the conservation easement required by paragraph 32 (5) of subsection (c) name one or more non-profit 33 organizations as additional holders of the easement. 34 (f) Any instrument purporting to convey a conservation -13- LRB9201028MWdvA 1 easement under this Section but where the county has not 2 indicated its approval on the instrument is void and may not 3 be recorded or accepted by the county recorder for recording. 4 (g) This Section does not invalidate any completed 5 purchase of development rights pursuant to any earlier 6 statute, ordinance, or regulation, if the transfer was valid 7 at that time. 8 (55 ILCS 5/5-30025 new) 9 Sec. 5-30025. Land use incentives; unified incentives 10 ordinance. 11 (a) The county board: 12 (1) may adopt and amend an ordinance that 13 authorizes incentives for the provision of affordable 14 housing; and 15 (2) may adopt and amend an ordinance that 16 authorizes incentives for open space dedication and 17 provision of public benefit amenities. 18 (b) The purpose of this Section is to authorize the 19 adoption and amendment of: 20 (1) an affordable housing incentives ordinance in 21 order to respond to and accommodate present and future 22 needs for affordable housing; 23 (2) a community design and open space incentives 24 ordinance to provide additional amenities for public use 25 or benefit in new development that carry out goals and 26 policies of a county identified in its comprehensive 27 plan; and 28 (3) a unified incentives ordinance that 29 incorporates paragraphs (1) and (2) of this subsection. 30 (c) The county board may adopt and amend an affordable 31 housing incentives ordinance only after it has adopted a 32 comprehensive plan that contains: 33 (1) a housing element; and -14- LRB9201028MWdvA 1 (2) a policy in written or mapped form that 2 encourages affordable housing incentives. 3 (d) The county board may adopt and amend a community 4 design and open space incentives ordinance only after it has 5 adopted a comprehensive plan that contains: 6 (1) a housing element if a density bonus for 7 residential development for the public benefit amenity of 8 a plaza, park, or other open spaces is authorized; 9 (2) a community design element if any other type of 10 bonus ratio is authorized; and 11 (3) a policy in written or mapped form that 12 describes the relationship between the applicable public 13 benefit amenities and the density bonus or bonus ratio 14 and supports the granting of such density bonus or bonus 15 ratio. 16 (e) An affordable housing incentive ordinance, a 17 community design and open space incentives ordinance, or a 18 unified incentives ordinance must include the following 19 minimum provisions: 20 (1) A citation to enabling authority to adopt and 21 amend the ordinance. 22 (2) A statement of purpose consistent with the 23 purposes of this Section. 24 (3) A statement of consistency with the 25 comprehensive plan. 26 (4) Definitions, as appropriate, for any words or 27 terms contained in the affordable housing incentive 28 ordinance. Where this Division defines words or terms, 29 the ordinance must incorporate those definitions, either 30 directly or by reference. 31 (5) Procedures for the review of applications for 32 incentives. 33 (6) A requirement that every developer that is to 34 receive incentives must enter into a development -15- LRB9201028MWdvA 1 agreement with the county. 2 (7) Designation of an officer or body to review and 3 approve applications for incentives. 4 (8) Provisions for enforcement, including the 5 issuance of certificates of compliance. 6 (f) An affordable housing incentives ordinance or a 7 unified incentives ordinance must also include the following 8 minimum provisions: 9 (1) A requirement that, where a developer proposes 10 a housing development within the jurisdiction of the 11 county, the county must provide the developer with 12 affordable housing incentives for the production of 13 affordable housing within the development if the 14 developer meets the requirements set forth in subsections 15 (j) and (k) of this Section. 16 (2) Provisions to ensure that once affordable 17 housing is built through subsidies or other means as part 18 of a housing development, its availability will be 19 maintained by establishing income qualifications for 20 affordable housing renters or purchasers and promoting 21 affirmative marketing. 22 (g) A community design and open space incentives 23 ordinance or a unified incentives ordinance must also include 24 the following minimum provisions: 25 (1) A statement of the types or categories or 26 public benefit amenities for which a bonus ratio or 27 density bonus shall be authorized, the amount of the 28 respective bonus ratio or density bonus, and the zoning 29 use district or overlay district to which public benefit 30 amenity and the respective bonus ratio or density bonus 31 apply. 32 (2) Locational and other development standards for 33 the public benefit amenities, including a statement of 34 the minimum bonusable area that a public benefit amenity -16- LRB9201028MWdvA 1 must contain in order to be eligible for a bonus ratio or 2 a density bonus. 3 (3) Requirements for permanent public access to the 4 public benefit amenity, including signage indicating the 5 nature of the public access, secured by either (i) a 6 conveyance of the plaza, park, or other open space, or 7 access to transit stations or transit easements, to the 8 county or appropriate governmental unit as a public use 9 as a condition of approval of the development permit, 10 provided that the conveyance is in a form approved by the 11 attorney of the county or governmental unit or (ii) where 12 the public benefit amenity will not be owned by the 13 county or another governmental unit, provisions in the 14 development agreement requiring permanent maintenance by 15 the property owner, except that permanent public access 16 may be limited to normal business hours. 17 (h) An affordable housing incentives ordinance or a 18 unified incentives ordinance may require that any new housing 19 development within the jurisdiction of the county contain at 20 least 15% affordable housing if such a requirement is 21 consistent with a policy contained in the comprehensive plan. 22 The incentives offered to the developer, whether density 23 bonuses, development incentives, or both, must be of at least 24 equivalent financial value to the cost of making the 25 affordable housing units affordable. 26 (i) A community design and open space incentives 27 ordinance or a unified incentives ordinance may: 28 (1) Include a manual of graphic and written design 29 guidelines to assist developers in the preparation of 30 applications for community design and open space 31 incentives, but the guidelines shall be advisory only. 32 (2) Include a statement of the minimum bonusable 33 area that a public benefit amenity may contain in order 34 to be eligible for a bonus ratio or a density bonus. -17- LRB9201028MWdvA 1 (3) Include a provision that allows the developer 2 to provide the public benefit amenity offsite as a 3 condition of receiving a bonus ratio or density bonus, 4 including standards of proximity of the development to 5 the offsite public benefit amenity. 6 (4) Be adopted as an overlay district to all or 7 portions of existing zoning use districts. The boundaries 8 of the overlay district must be shown on the zoning map. 9 (j) Where a developer proposes a housing development 10 that is to be an affordable housing development, the county 11 must either: 12 (1) grant a density bonus and at least one 13 development incentive, unless the county makes a written 14 finding that the development incentive is not necessary 15 to reduce the price or rent of the dwelling units in 16 order to ensure that they are affordable housing; or 17 (2) provide, in lieu of density bonuses and 18 development incentives required by paragraph (1) of this 19 subsection, development incentives of equivalent 20 financial value based upon the land cost per dwelling 21 unit. The value of the equivalent development incentives 22 must at least equal the land cost per dwelling unit that 23 would result from a density bonus and must contribute 24 significantly to the economic feasibility of providing 25 the affordable housing units. 26 (k) The development agreement entered into between the 27 developer of a housing development that is to be an 28 affordable housing development and the county must include 29 provisions to ensure the availability of affordable housing 30 for sale or rent. 31 The development agreement may provide for a period of 32 availability for affordable housing as follows: 33 (1) Newly constructed low- and moderate-income 34 sales and rental dwelling units must be subject to -18- LRB9201028MWdvA 1 affordability controls for a period of not less than 15 2 years, which period may be renewed pursuant to the 3 development agreement. 4 (2) Rehabilitated owner-occupied single-family 5 dwelling units that are improved to code standard must be 6 subject to affordability controls for not less than 5 7 years. 8 (3) Rehabilitated renter-occupied dwelling units 9 that are improved to code standard must be subject to 10 affordability controls on re-rental for not less than 10 11 years. 12 (4) Any dwelling unit created through the 13 conversion of a nonresidential structure must be 14 considered a new dwelling unit and must be subject to 15 affordability controls as delineated in paragraph (1) 16 above. 17 (5) Affordability controls on owner- or 18 renter-occupied accessory apartments must be applicable 19 for a period of not less than 5 years. 20 (6) Alternative living arrangements not otherwise 21 described in this subsection must be controlled in a 22 manner deemed suitable to the county and must provide 23 assurances that the arrangements will house low- and 24 moderate-income households for not less than 10 years. 25 In the case of for-sale housing developments, the 26 development agreement must include the following 27 affordability controls governing the initial sale and use and 28 any resale: 29 (1) All conveyances of newly constructed affordable 30 housing dwelling units subject to the affordable housing 31 incentives ordinance that are for sale must contain a 32 deed restriction and mortgage lien that must be recorded 33 with the county recorder. Any restrictions on future 34 resale must be included in the deed restriction as a -19- LRB9201028MWdvA 1 condition of approval enforceable through legal and 2 equitable remedies. 3 (2) Affordable housing units must upon initial sale 4 and resale in the period covered by the development agreement 5 be sold to eligible low- or moderate-income households at an 6 affordable sales price and housing cost. 7 (3) Affordable housing units must be occupied by 8 eligible low- or moderate-income households during the 9 period covered by the development agreement. 10 In the case of rental housing developments, the 11 development agreement must include the following 12 affordability controls governing the use of affordable 13 housing units during the use restriction period: 14 (1) Rules and procedures for qualifying tenants, 15 establishing affordable rent, filling vacancies, and 16 maintaining affordable housing rental units for qualified 17 tenants. 18 (2) Requirements that owners verify tenant incomes 19 and maintain books and records to demonstrate compliance 20 with the agreement and with the ordinance. 21 (3) Requirements that owners submit an annual 22 report to the county demonstrating compliance with the 23 agreement and with the ordinance. 24 The development agreement must include a schedule that 25 provides for the affordable housing units to be built 26 concurrently with the units that are not subject to 27 affordability controls. 28 (l) The approval of incentives constitutes a development 29 permit. 30 (m) This Section does not limit or require the provision 31 of direct financial aid by the county, the provision of 32 publicly owned land, or the waiver or reduction of fees, 33 including impact fees, or of dedication or exaction 34 requirements. -20- LRB9201028MWdvA 1 (n) The Department of Commerce and Community Affairs 2 must, no later than one year after the effective date of this 3 amendatory Act of the 92nd General Assembly, prepare and 4 distribute a model affordable housing incentives ordinance 5 and related guidelines to assist counties in complying with 6 this Section. 7 Section 10. The Illinois Municipal Code is amended by 8 changing Section 11-48.2-1A and by adding Sections 11-48.2-6B 9 and 11-48.2-6C as follows: 10 (65 ILCS 5/11-48.2-1A) (from Ch. 24, par. 11-48.2-1A) 11 Sec. 11-48.2-1A. (1) The development rights of a landmark 12 site are the rights granted under applicable local law 13 respecting the permissible bulk and size of improvements 14 erected thereon. Development rights may be calculated in 15 accordance with such factors as lot area, floor area, floor 16 area ratios, height limitations, or any other criteria set 17 forth under local law for this purpose. 18 (2) A preservation restriction is a right, whether or 19 not stated in the form of a restriction, easement, covenant 20 or condition, in any deed, will or other instrument executed 21 by or on behalf of the owner of the land or in any order of 22 taking, appropriate to the preservation of areas, places, 23 buildings or structures to forbid or limit acts of 24 demolition, alteration, use or other acts detrimental to the 25 preservation of the areas, places, buildings or structures in 26 accordance with the purposes of the Division. Preservation 27 restrictions shall not be unenforceable on account of lack of 28 privity of estate or contract, or of lack of benefit to 29 particular land or on account of the benefit being assignable 30 or being assigned. 31 (3) A transfer of development rights is the transfer 32 from a landmark site of all or a portion of the development -21- LRB9201028MWdvA 1 rights applicable thereto, subject to such controls as are 2 necessary to secure the purposes of this Division. The 3 transfer of development rights pursuant to sound community 4 planning standards and the other requirements of this 5 Division is hereby declared to be in accordance with 6 municipal health, safety and welfare because it furthers the 7 more efficient utilization of urban space at a time when this 8 objective is made urgent by the shrinking land base of urban 9 areas, the increasing incidence of large-scale, comprehensive 10 development in such areas, the evolution of building 11 technology and similar factors. 12 (4) A development rights bank is a reserve into which 13 may be deposited development rights associated with publicly 14 and privately-owned landmark sites. Corporate authorities or 15 their designees shall be authorized to accept for deposit 16 within the bank gifts, donations, bequests or other transfers 17 of development rights from the owners of said sites, and 18 shall be authorized to deposit therein development rights 19 associated with (i) the sites of municipally-owned landmarks 20 and (ii) the sites of privately-owned landmarks in respect of 21 which the municipality has acquired a preservation 22 restriction through eminent domain or purchase. All transfers 23 of development rights from the development rights bank shall 24 be subject to the requirements of Sections 11-76-1 through 25 11-76-6 of the Municipal Code of Illinois, and all receipts 26 arising from the transfers shall be deposited in a special 27 municipal account to be applied against expenditures 28 necessitated by the municipal landmarks program. 29 (5) The term, public easement, shall have the same 30 meaning and effects herein as it has in Article IX, Section 3 31 of the Illinois Constitution of 1870 and Article IX, Section 32 4(c) of the Illinois Constitution of 1970. This amendatory 33 Act of 1971 does not apply to any municipality which is a 34 home rule unit. -22- LRB9201028MWdvA 1 (6) "Purchase of development rights" means (i) the 2 purchase of development rights from an owner of land by a 3 municipality or (ii) the voluntary donation of development 4 rights by an owner of land to a municipality. 5 (7) "Affordable housing" means housing that is 6 low-income housing or moderate-income housing. 7 (8) "Affordable housing development" means any housing 8 development that is subsidized by the federal government, the 9 State, or a municipality, or any housing development in which 10 at least 15% of the dwelling units are subject to covenants 11 or restrictions that require that the dwelling units be sold 12 or rented at prices that preserve them as affordable housing 13 under Section 11-48.2-6C. 14 (9) "Affordable housing incentives" mean a density bonus 15 and other development incentives granted under an affordable 16 housing incentive ordinance under Section 11-48.2-6C. 17 (10) "Affordable rent" means monthly housing expenses, 18 including a reasonable allowance for utilities, for 19 affordable housing units that are for rent to low- or 20 moderate-income households. 21 (11) "Affordable sales price" means a sales price at 22 which low- or moderate-income households can qualify for the 23 purchase of affordable housing, calculated on the basis of 24 underwriting standards of mortgage financing available for 25 the housing development. 26 (12) "Bonusable area" means space that is occupied by a 27 public benefit amenity and that is determined by the 28 municipality to satisfy requirements under its land 29 development regulations for additional gross floor area or 30 dwelling units. 31 (13) "Bonus ratio" means the ratio of additional square 32 feet of nonresidential floor area granted per square foot of 33 bonusable area. 34 (14) "Density bonus" means the percentage of density -23- LRB9201028MWdvA 1 increase granted over the otherwise maximum allowable net 2 density under the applicable zoning ordinance as of the date 3 of the application to the municipality for incentives by a 4 developer. The density bonus applicable to affordable housing 5 must be at least a 25% increase and must apply to the site of 6 the affordable housing development. 7 (15) "Development incentives" mean any of the following: 8 (A) Reductions in building setback requirements. 9 (B) Reductions or waivers of impact fees, 10 application fees for development permits, utility tap-in 11 fees, or other dedications or exactions. 12 (C) Reductions in minimum lot area, width, or 13 depth. 14 (D) Reductions in required parking spaces per 15 dwelling unit or per square foot of floor area. 16 (E) Increased maximum lot coverage. 17 (F) Increased maximum building height or stories. 18 (G) Reductions in minimum building separation 19 requirements, provided that the reductions do not 20 conflict with building code requirements of the State or 21 the municipality, as applicable 22 (H) Reductions or waivers of public or nonpublic 23 improvements. 24 (I) Approval by the corporate authorities of mixed 25 use zoning in conjunction with the housing project if 26 commercial, office, industrial, or other land uses will 27 contribute significantly to the economic feasibility of 28 the housing development and if the mixed use zoning is 29 consistent with the comprehensive plan. 30 (J) Authorization for the affordable housing 31 development to include nonresidential uses, provided the 32 uses or the authorization is consistent with the 33 comprehensive plan. 34 (K) Authorization for the affordable housing to be -24- LRB9201028MWdvA 1 located in a nonresidential zoning district, provided the 2 authorization is consistent with the comprehensive plan. 3 (L) Other incentives, including expedited permitted 4 or processing, proposed by the developer of an affordable 5 housing project or by the municipality that result in 6 identifiable cost reductions for affordable housing, 7 including direct financial aid in the form of a loan or 8 grant to subsidize or provide low interest financing for 9 on- or off-site improvements, land, or construction 10 costs. 11 (16) "Floor area ratio" means the ratio of the maximum 12 gross floor area on a lot or parcel to the area of the lot or 13 parcel that is permitted under the land development 14 regulations of a municipality. 15 (17) "Housing cost" means the sum of actual or projected 16 monthly payments for any of the following associated with 17 for-sale affordable housing units: principal and interest on 18 a mortgage loan, including any loan insurance fees; property 19 taxes and assessments; fire and casualty insurance; property 20 maintenance and repairs; homeowner association fees; and a 21 reasonable allowance for utilities. 22 (18) "Housing development" means construction, including 23 rehabilitation, projects consisting of 5 or more residential 24 units, including single-family, two-family, and 25 multiple-family residences for sale or rent. 26 (19) "Incentives" mean one or more of the following: 27 (A) Affordable housing incentives, including 28 expedited permitting and processing. 29 (B) Bonus ratio. 30 (C) Density bonus. 31 (20) "Low-income housing" means housing that is 32 affordable, according to the federal Department of Housing 33 and Urban Development, for either home ownership or rental 34 and that is occupied, reserved, or marketed for occupancy by -25- LRB9201028MWdvA 1 households with a gross household income that does not exceed 2 50% of the median gross household income for households of 3 the same size within the housing region in which the housing 4 is located. 5 (21) "Moderate-income housing" means housing that is 6 affordable, according to the federal Department of Housing 7 and Urban Development, for either home ownership or rental 8 and that is occupied, reserved, or marketed for occupancy by 9 households with a gross household income that is greater than 10 50% but does not exceed 80% of the median gross household 11 income for households of the same size within the housing 12 region in which the housing is located. 13 (22) "Public benefit amenity" means one or more features 14 for public use or benefit contained in a development that 15 will entitle the development to a bonus ratio or a density 16 bonus, as applicable, including, but not limited to: 17 (A) Plazas, parks, and other open spaces. 18 (B) Overhead weather protection and street arcades. 19 (C) Bicycle parking and storage facilities. 20 (D) Performing arts theaters. 21 (E) Museums. 22 (F) Access to transit stations and transit 23 easements. 24 (G) Provision of child day-care centers. 25 (H) Provision of affordable housing as part of a 26 nonresidential development. 27 (23) "Unified incentives ordinance" means an ordinance 28 that (i) provides incentives for both the provision of 29 affordable housing and dedication of open space or the 30 provision of community design amenities and (ii) complies 31 with all requirements of Section 11-48.2-6C for both an 32 affordable housing incentives ordinance and a community 33 design and open space incentives ordinance. 34 (Source: P.A. 77-1372.) -26- LRB9201028MWdvA 1 (65 ILCS 5/11-48.2-6B new) 2 Sec. 11-48.2-6B. Purchase of development rights. 3 (a) The corporate authorities of a municipality may 4 adopt ordinances and amendments to ordinances that include 5 provisions for the purchase of development rights in the 6 manner prescribed in this Section. 7 (b) The purposes of this Section are to: 8 (1) preserve open space, critical and sensitive 9 areas, and natural hazard areas; 10 (2) conserve agriculture and forestry uses of land; 11 (3) protect lands and structures of aesthetic, 12 architectural, and historic significance; 13 (4) ensure that the owners of land that is so 14 preserved, conserved, or protected may be reasonably 15 compensated for restrictions on otherwise reasonable uses 16 of their property rights while retaining ownership of the 17 land and the right to commence and continue uses not so 18 restricted; and 19 (5) provide a procedure for municipalities to 20 engage in preservation, conservation, or protection 21 through conservation easements. 22 (c) The corporate authorities of a municipality may 23 adopt a purchase of development rights program only by 24 ordinance, and an ordinance adopted under this Section must: 25 (1) Be adopted by the corporate authorities only 26 after they have adopted: 27 (A) a comprehensive plan; 28 (B) for a purchase of development rights 29 program concerning critical and sensitive areas, a 30 critical and sensitive areas element of the 31 comprehensive plan; 32 (C) for a purchase of development rights 33 program concerning natural hazards, a natural 34 hazards element of the comprehensive plan; -27- LRB9201028MWdvA 1 (D) for a purchase of development rights 2 program concerning agriculture or forest 3 preservation, an agriculture and forest preservation 4 element of the comprehensive plan; and 5 (E) for a purchase of development rights 6 program concerning historic preservation, an 7 historic preservation ordinance. 8 (2) Include a citation to enabling authority to 9 adopt and amend the purchase of development rights 10 ordinance. 11 (3) Include a statement of purpose consistent with 12 subsection (b) of this Section. 13 (4) Include a statement of consistency with the 14 comprehensive plan and with the applicable elements 15 thereof. 16 (5) Describe the development rights that may be 17 purchased in reasonable detail, preferably in 18 quantifiable terms such as area, building coverage ratio, 19 density, floor area ratio, height, or other forms of 20 measurement. 21 (6) Require the municipality to conduct an 22 appraisal of the value of the parcel from which the 23 municipality is to purchase development rights and of the 24 value of the development rights to be purchased. 25 (7) Require that the municipality and any owner of 26 a parcel from which the municipality is to purchase 27 development rights enter into a written purchase of 28 development rights agreement in compliance with 29 subsections (d) and (e) of this Section. 30 (d) A purchase of development rights agreement must at a 31 minimum: 32 (1) State the address and legal description of the 33 premises. 34 (2) State the name of all record owners of the -28- LRB9201028MWdvA 1 premises. 2 (3) Describe the development rights to be purchased 3 in reasonable detail, preferably in quantifiable terms 4 such as area, building coverage ratio, density, floor 5 area ratio, height, or other forms of measurement. 6 (4) State the price that the municipality shall pay 7 in consideration of the purchase of development rights, 8 including any agreed terms under which payment is to be 9 made, unless the development rights are being voluntarily 10 donated by the owners of the parcel. 11 (5) Require that the owners of the parcel execute a 12 deed or instrument creating a conservation easement 13 releasing development rights as agreed and describing the 14 released development rights in reasonable detail, 15 preferably in quantifiable terms, with the parcel from 16 which development rights are being purchased as the 17 servient estate and the municipality as the holder of the 18 easement. 19 (6) Provide that the owner of the parcel must 20 submit the conservation easement to the plan commission 21 for its approval before the municipality is obligated to 22 pay the stated price. 23 (7) Require that the municipality approve the 24 conservation easement, indicate its approval on the 25 instrument creating the easement, and pay the agreed 26 price within 28 days after submission of the instrument 27 unless the development rights released by the 28 conservation easement vary significantly from the 29 development rights that the owner of the servient estate 30 agreed to release under the purchase of development 31 rights or there is some other significant error in the 32 instrument. 33 (8) Require the owners of the servient estate to 34 record any approved conservation easement with the county -29- LRB9201028MWdvA 1 recorder within 28 days after payment (or after approval, 2 if the development rights are being voluntarily donated). 3 (e) A purchase of development rights agreement may 4 require that the conservation easement required by paragraph 5 (5) of subsection (c) name one or more non-profit 6 organizations as additional holders of the easement. 7 (f) Any instrument purporting to convey a conservation 8 easement under this Section but where the municipality has 9 not indicated its approval on the instrument is void and may 10 not be recorded or accepted by the county recorder for 11 recording. 12 (g) This Section does not invalidate any completed 13 purchase of development rights pursuant to any earlier 14 statute, ordinance, or regulation, if the transfer was valid 15 at that time. 16 (65 ILCS 5/11-48.2-6C new) 17 Sec. 11-48.2-6C. Land use incentives; unified incentives 18 ordinance. 19 (a) The corporate authorities of a municipality: 20 (1) may adopt and amend an ordinance that 21 authorizes incentives for the provision of affordable 22 housing; and 23 (2) may adopt and amend an ordinance that 24 authorizes incentives for open space dedication and 25 provision of public benefit amenities. 26 (b) The purpose of this Section is to authorize the 27 adoption and amendment of: 28 (1) an affordable housing incentives ordinance in 29 order to respond to and accommodate present and future 30 needs for affordable housing; 31 (2) a community design and open space incentives 32 ordinance to provide additional amenities for public use 33 or benefit in new development that carry out goals and -30- LRB9201028MWdvA 1 policies of a county identified in its comprehensive 2 plan; and 3 (3) a unified incentives ordinance that 4 incorporates paragraphs (1) and (2) of this subsection. 5 (c) The corporate authorities of a municipality may 6 adopt and amend an affordable housing incentives ordinance 7 only after they have adopted a comprehensive plan that 8 contains: 9 (1) a housing element; and 10 (2) a policy in written or mapped form that 11 encourages affordable housing incentives. 12 (d) The corporate authorities of a municipality may 13 adopt and amend a community design and open space incentives 14 ordinance only after they have adopted a comprehensive plan 15 that contains: 16 (1) a housing element if a density bonus for 17 residential development for the public benefit amenity of 18 a plaza, park, or other open spaces is authorized; 19 (2) a community design element if any other type of 20 bonus ratio is authorized; and 21 (3) a policy in written or mapped form that 22 describes the relationship between the applicable public 23 benefit amenities and the density bonus or bonus ratio 24 and supports the granting of such density bonus or bonus 25 ratio. 26 (e) An affordable housing incentive ordinance, a 27 community design and open space incentives ordinance, or a 28 unified incentives ordinance must include the following 29 minimum provisions: 30 (1) A citation to enabling authority to adopt and 31 amend the ordinance. 32 (2) A statement of purpose consistent with the 33 purposes of this Section. 34 (3) A statement of consistency with the -31- LRB9201028MWdvA 1 comprehensive plan. 2 (4) Definitions, as appropriate, for any words or 3 terms contained in the affordable housing incentive 4 ordinance. Where this Division defines words or terms, 5 the ordinance must incorporate those definitions, either 6 directly or by reference. 7 (5) Procedures for the review of applications for 8 incentives. 9 (6) A requirement that every developer that is to 10 receive incentives must enter into a development 11 agreement with the municipality. 12 (7) Designation of an officer or body to review and 13 approve applications for incentives. 14 (8) Provisions for enforcement, including the 15 issuance of certificates of compliance. 16 (f) An affordable housing incentives ordinance or a 17 unified incentives ordinance must also include the following 18 minimum provisions: 19 (1) A requirement that, where a developer proposes 20 a housing development within the jurisdiction of the 21 municipality, the municipality must provide the developer 22 with affordable housing incentives for the production of 23 affordable housing within the development if the 24 developer meets the requirements set forth in subsections 25 (j) and (k) of this Section. 26 (2) Provisions to ensure that once affordable 27 housing is built through subsidies or other means as part 28 of a housing development, its availability will be 29 maintained by establishing income qualifications for 30 affordable housing renters or purchasers and promoting 31 affirmative marketing. 32 (g) A community design and open space incentives 33 ordinance or a unified incentives ordinance must also include 34 the following minimum provisions: -32- LRB9201028MWdvA 1 (1) A statement of the types or categories or 2 public benefit amenities for which a bonus ratio or 3 density bonus shall be authorized, the amount of the 4 respective bonus ratio or density bonus, and the zoning 5 use district or overlay district to which public benefit 6 amenity and the respective bonus ratio or density bonus 7 apply. 8 (2) Locational and other development standards for 9 the public benefit amenities, including a statement of 10 the minimum bonusable area that a public benefit amenity 11 must contain in order to be eligible for a bonus ratio or 12 a density bonus. 13 (3) Requirements for permanent public access to the 14 public benefit amenity, including signage indicating the 15 nature of the public access, secured by either (i) a 16 conveyance of the plaza, park, or other open space, or 17 access to transit stations or transit easements, to the 18 municipality or appropriate governmental unit as a public 19 use as a condition of approval of the development permit, 20 provided that the conveyance is in a form approved by the 21 attorney of the municipality or governmental unit or (ii) 22 where the public benefit amenity will not be owned by the 23 municipality or another governmental unit, provisions in 24 the development agreement requiring permanent maintenance 25 by the property owner, except that permanent public 26 access may be limited to normal business hours. 27 (h) An affordable housing incentives ordinance or a 28 unified incentives ordinance may require that any new housing 29 development within the jurisdiction of the municipality 30 contain at least 15% affordable housing if such a requirement 31 is consistent with a policy contained in the comprehensive 32 plan. The incentives offered to the developer, whether 33 density bonuses, development incentives, or both, must be of 34 at least equivalent financial value to the cost of making the -33- LRB9201028MWdvA 1 affordable housing units affordable. 2 (i) A community design and open space incentives 3 ordinance or a unified incentives ordinance may: 4 (1) Include a manual of graphic and written design 5 guidelines to assist developers in the preparation of 6 applications for community design and open space 7 incentives, but the guidelines shall be advisory only. 8 (2) Include a statement of the minimum bonusable 9 area that a public benefit amenity may contain in order 10 to be eligible for a bonus ratio or a density bonus. 11 (3) Include a provision that allows the developer 12 to provide the public benefit amenity offsite as a 13 condition of receiving a bonus ratio or density bonus, 14 including standards of proximity of the development to 15 the offsite public benefit amenity. 16 (4) Be adopted as an overlay district to all or 17 portions of existing zoning use districts. The boundaries 18 of the overlay district must be shown on the zoning map. 19 (j) Where a developer proposes a housing development 20 that is to be an affordable housing development, the 21 municipality must either: 22 (1) grant a density bonus and at least one 23 development incentive, unless the municipality makes a 24 written finding that the development incentive is not 25 necessary to reduce the price or rent of the dwelling 26 units in order to ensure that they are affordable 27 housing; or 28 (2) provide, in lieu of density bonuses and 29 development incentives required by paragraph (1) of this 30 subsection, development incentives of equivalent 31 financial value based upon the land cost per dwelling 32 unit. The value of the equivalent development incentives 33 must at least equal the land cost per dwelling unit that 34 would result from a density bonus and must contribute -34- LRB9201028MWdvA 1 significantly to the economic feasibility of providing 2 the affordable housing units. 3 (k) The development agreement entered into between the 4 developer of a housing development that is to be an 5 affordable housing development and the municipality must 6 include provisions to ensure the availability of affordable 7 housing for sale or rent. 8 The development agreement may provide for a period of 9 availability for affordable housing as follows: 10 (1) Newly constructed low- and moderate-income 11 sales and rental dwelling units must be subject to 12 affordability controls for a period of not less than 10 13 years, which period may be renewed pursuant to the 14 development agreement. 15 (2) Rehabilitated owner-occupied single-family 16 dwelling units that are improved to code standard must be 17 subject to affordability controls for not less than 5 18 years. 19 (3) Rehabilitated renter-occupied dwelling units 20 that are improved to code standard must be subject to 21 affordability controls on re-rental for not less than 10 22 years. 23 (4) Any dwelling unit created through the 24 conversion of a nonresidential structure must be 25 considered a new dwelling unit and must be subject to 26 affordability controls as delineated in paragraph (1) 27 above. 28 (5) Affordability controls on owner- or 29 renter-occupied accessory apartments must be applicable 30 for a period of not less than 5 years. 31 (6) Alternative living arrangements not otherwise 32 described in this subsection must be controlled in a 33 manner deemed suitable to the municipality and must 34 provide assurances that the arrangements will house low- -35- LRB9201028MWdvA 1 and moderate-income households for not less than 10 2 years. 3 In the case of for-sale housing developments, the 4 development agreement must include the following 5 affordability controls governing the initial sale and use and 6 any resale: 7 (1) All conveyances of newly constructed affordable 8 housing dwelling units subject to the affordable housing 9 incentives ordinance that are for sale must contain a 10 deed restriction and mortgage lien that must be recorded 11 with the county recorder. Any restrictions on future 12 resale must be included in the deed restriction as a 13 condition of approval enforceable through legal and 14 equitable remedies. 15 (2) Affordable housing units must upon initial sale 16 and resale in the period covered by the development 17 agreement be sold to eligible low- or moderate-income 18 households at an affordable sales price and housing cost. 19 (3) Affordable housing units must be occupied by 20 eligible low- or moderate-income households during the 21 period covered by the development agreement. 22 In the case of rental housing developments, the 23 development agreement must include the following 24 affordability controls governing the use of affordable 25 housing units during the use restriction period: 26 (1) Rules and procedures for qualifying tenants, 27 establishing affordable rent, filling vacancies, and 28 maintaining affordable housing rental units for qualified 29 tenants. 30 (2) Requirements that owners verify tenant incomes 31 and maintain books and records to demonstrate compliance 32 with the agreement and with the ordinance. 33 (3) Requirements that owners submit an annual 34 report to the municipality demonstrating compliance with -36- LRB9201028MWdvA 1 the agreement and with the ordinance. 2 The development agreement must include a schedule that 3 provides for the affordable housing units to be built 4 concurrently with the units that are not subject to 5 affordability controls. 6 (l) The approval of incentives constitutes a development 7 permit. 8 (m) This Section does not limit or require the provision 9 of direct financial aid by the municipality, the provision of 10 publicly owned land, or the waiver or reduction of fees, 11 including impact fees, or of dedication or exaction 12 requirements. 13 (n) The Department of Commerce and Community Affairs 14 must, no later than one year after the effective date of this 15 amendatory Act of the 92nd General Assembly, prepare and 16 distribute a model affordable housing incentives ordinance 17 and related guidelines to assist municipalities in complying 18 with this Section. 19 Section 15. The State Mandates Act is amended by adding 20 Section 8.25 as follows: 21 (30 ILCS 805/8.25 new) 22 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6 23 and 8 of this Act, no reimbursement by the State is required 24 for the implementation of any mandate created by this 25 amendatory Act of the 92nd General Assembly.