Illinois 2023-2024 Regular Session

Illinois House Bill HB3403 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3403 Introduced , by Rep. Elizabeth "Lisa" Hernandez SYNOPSIS AS INTRODUCED: 20 ILCS 3805/7.28 Amends the Illinois Housing Development Act. In provisions concerning the affordable housing tax donation credit program, provides that the administrative housing agency must establish a goal of awarding a specific amount of tax credits for donations to sponsors that are minority-owned businesses, women-owned businesses, or businesses owned by persons with disabilities. LRB103 29061 HLH 55447 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3403 Introduced , by Rep. Elizabeth "Lisa" Hernandez SYNOPSIS AS INTRODUCED: 20 ILCS 3805/7.28 20 ILCS 3805/7.28 Amends the Illinois Housing Development Act. In provisions concerning the affordable housing tax donation credit program, provides that the administrative housing agency must establish a goal of awarding a specific amount of tax credits for donations to sponsors that are minority-owned businesses, women-owned businesses, or businesses owned by persons with disabilities. LRB103 29061 HLH 55447 b LRB103 29061 HLH 55447 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3403 Introduced , by Rep. Elizabeth "Lisa" Hernandez SYNOPSIS AS INTRODUCED:
3	3	20 ILCS 3805/7.28 20 ILCS 3805/7.28
4	4	20 ILCS 3805/7.28
5	5	Amends the Illinois Housing Development Act. In provisions concerning the affordable housing tax donation credit program, provides that the administrative housing agency must establish a goal of awarding a specific amount of tax credits for donations to sponsors that are minority-owned businesses, women-owned businesses, or businesses owned by persons with disabilities.
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8	8	A BILL FOR
9	9	HB3403LRB103 29061 HLH 55447 b HB3403 LRB103 29061 HLH 55447 b
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11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Housing Development Act is amended
15	15	5 by changing Section 7.28 as follows:
16	16	6 (20 ILCS 3805/7.28)
17	17	7 Sec. 7.28. Tax credit for donation to sponsors. The
18	18	8 Authority may administer and adopt rules for an affordable
19	19	9 housing tax donation credit program to provide tax credits for
20	20	10 donations as set forth in this Section.
21	21	11 (a) In this Section:
22	22	12 "Administrative housing agency" means either the Authority
23	23	13 or an agency of the City of Chicago.
24	24	14 "Affordable housing project" means either:
25	25	15 (1) a rental project in which at least 25% of the units
26	26	16 have rents (including tenant-paid heat) that do not
27	27	17 exceed, on a monthly basis, maximum gross rent figures, as
28	28	18 published by the Authority, that are:
29	29	19 (i) based on data published annually by the U.S.
30	30	20 Department of Housing and Urban Development;
31	31	21 (ii) based on the annual income of households
32	32	22 earning 60% of the area median income;
33	33	23 (iii) computed using a 30% of gross monthly income
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3403 Introduced , by Rep. Elizabeth "Lisa" Hernandez SYNOPSIS AS INTRODUCED:
38	38	20 ILCS 3805/7.28 20 ILCS 3805/7.28
39	39	20 ILCS 3805/7.28
40	40	Amends the Illinois Housing Development Act. In provisions concerning the affordable housing tax donation credit program, provides that the administrative housing agency must establish a goal of awarding a specific amount of tax credits for donations to sponsors that are minority-owned businesses, women-owned businesses, or businesses owned by persons with disabilities.
41	41	LRB103 29061 HLH 55447 b LRB103 29061 HLH 55447 b
42	42	LRB103 29061 HLH 55447 b
43	43	A BILL FOR
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49	49	20 ILCS 3805/7.28
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68	68	1 standard; and
69	69	2 (iv) adjusted for unit size and at least 25% of the
70	70	3 units are occupied by persons and families whose
71	71	4 incomes do not exceed 60% of the median family income
72	72	5 for the geographic area in which the residential unit
73	73	6 is located; or
74	74	7 (2) a unit for sale to homebuyers whose gross
75	75	8 household income is at or below (A) 60% of the area median
76	76	9 income (for taxable years beginning prior to January 1,
77	77	10 2022) or (B) 120% of the area median income (for taxable
78	78	11 years beginning on or after January 1, 2022) and who pay no
79	79	12 more than 30% of their gross household income for mortgage
80	80	13 principal, interest, property taxes, and property
81	81	14 insurance (PITI).
82	82	15 "Donation" means money, securities, or real or personal
83	83	16 property that is donated to a not-for-profit sponsor that is
84	84	17 used solely for costs associated with either (i) purchasing,
85	85	18 constructing, or rehabilitating an affordable housing project
86	86	19 in this State, (ii) an employer-assisted housing project in
87	87	20 this State, (iii) general operating support, or (iv) technical
88	88	21 assistance as defined by this Section.
89	89	22 "Employer-assisted housing project" means either
90	90	23 down-payment assistance, reduced-interest mortgages, mortgage
91	91	24 guarantee programs, rental subsidies, or individual
92	92	25 development account savings plans that are provided by
93	93	26 employers to employees to assist in securing affordable
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104	104	1 housing near the workplace, that are restricted to housing
105	105	2 near the workplace, and that are restricted to employees whose
106	106	3 gross household income is at or below 120% of the area median
107	107	4 income.
108	108	5 "General operating support" means any cost incurred by a
109	109	6 sponsor that is a part of its general program costs and is not
110	110	7 limited to costs directly incurred by the affordable housing
111	111	8 project.
112	112	9 "Geographical area" means the metropolitan area or county
113	113	10 designated as an area by the federal Department of Housing and
114	114	11 Urban Development under Section 8 of the United States Housing
115	115	12 Act of 1937, as amended, for purposes of determining fair
116	116	13 market rental rates.
117	117	14 "Median income" means the incomes that are determined by
118	118	15 the federal Department of Housing and Urban Development
119	119	16 guidelines and adjusted for family size.
120	120	17 "Project" means an affordable housing project, an
121	121	18 employer-assisted housing project, general operating support,
122	122	19 or technical assistance.
123	123	20 "Sponsor" means a not-for-profit organization that (i) is
124	124	21 organized as a not-for-profit organization under the laws of
125	125	22 this State or another state and (1) for an affordable housing
126	126	23 project, has as one of its purposes the development of
127	127	24 affordable housing; (2) for an employer-assisted housing
128	128	25 project, has as one of its purposes home ownership education;
129	129	26 and (3) for a technical assistance project, has as one of its
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140	140	1 purposes either the development of affordable housing or home
141	141	2 ownership education; (ii) is organized for the purpose of
142	142	3 constructing or rehabilitating affordable housing units and
143	143	4 has been issued a ruling from the Internal Revenue Service of
144	144	5 the United States Department of the Treasury that the
145	145	6 organization is exempt from income taxation under provisions
146	146	7 of the Internal Revenue Code; or (iii) is an organization
147	147	8 designated as a community development corporation by the
148	148	9 United States government under Title VII of the Economic
149	149	10 Opportunity Act of 1964.
150	150	11 "Tax credit" means a tax credit allowed under Section 214
151	151	12 of the Illinois Income Tax Act.
152	152	13 "Technical assistance" means any cost incurred by a
153	153	14 sponsor for project planning, assistance with applying for
154	154	15 financing, or counseling services provided to prospective
155	155	16 homebuyers.
156	156	17 (b) A sponsor must apply to an administrative housing
157	157	18 agency for approval of the project. The administrative housing
158	158	19 agency must reserve a specific amount of tax credits for each
159	159	20 approved project. Tax credits for general operating support
160	160	21 can only be reserved as part of a reservation of tax credits
161	161	22 for an affordable housing project, an employer-assisted
162	162	23 housing project, or technical assistance. No tax credits shall
163	163	24 be allowed for a project without a reservation of such tax
164	164	25 credits by an administrative housing agency for that project.
165	165	26 (b-5) The administrative housing agency must establish a
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176	176	1 goal of awarding a specific amount of tax credits under this
177	177	2 Section for donations to sponsors that are minority-owned
178	178	3 businesses, women-owned businesses, or businesses owned by
179	179	4 persons with disabilities, as those terms are defined in the
180	180	5 Business Enterprise for Minorities, Women, and Persons with
181	181	6 Disabilities Act.
182	182	7 (c) The Authority must adopt rules establishing criteria
183	183	8 for eligible costs and donations, issuing and verifying tax
184	184	9 credits, and selecting projects that are eligible for a tax
185	185	10 credit.
186	186	11 (d) Tax credits for employer-assisted housing projects are
187	187	12 limited to that pool of tax credits that have been set aside
188	188	13 for employer-assisted housing. Tax credits for general
189	189	14 operating support are limited to 10% of the total tax credit
190	190	15 reservation for the related project (other than general
191	191	16 operating support) and are also limited to that pool of tax
192	192	17 credits that have been set aside for general operating
193	193	18 support. Tax credits for technical assistance are limited to
194	194	19 that pool of tax credits that have been set aside for technical
195	195	20 assistance.
196	196	21 (e) The amount of tax credits reserved by the
197	197	22 administrative housing agency for an approved project is
198	198	23 limited to $32,850,352 in State fiscal years 2022 and 2023 and
199	199	24 shall increase by 5% each fiscal year thereafter. The City of
200	200	25 Chicago shall receive 24.5% of total tax credits authorized
201	201	26 for each fiscal year. The Authority shall receive the balance
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212	212	1 of the tax credits authorized for each fiscal year. The tax
213	213	2 credits may be used anywhere in this State. The tax credits
214	214	3 have the following set-asides:
215	215	4 (1) for employer-assisted housing projects, $2
216	216	5 million; and
217	217	6 (2) for general operating support and technical
218	218	7 assistance, $1 million.
219	219	8 The balance of the funds must be used for affordable
220	220	9 housing projects. During the first 9 months of a fiscal year,
221	221	10 if an administrative housing agency is unable to reserve the
222	222	11 tax credits set aside for the purposes described in subsection
223	223	12 (e), the administrative housing agency may reserve the tax
224	224	13 credits for any approved projects.
225	225	14 (f) The administrative housing agency that reserves tax
226	226	15 credits for an affordable housing project must record against
227	227	16 the land upon which the affordable housing project is located
228	228	17 an instrument to assure that the property maintains its
229	229	18 affordable housing compliance for a minimum of 10 years. The
230	230	19 Authority has flexibility to assure that the instrument does
231	231	20 not cause undue hardship on homeowners.
232	232	21 (Source: P.A. 102-175, eff. 7-29-21.)
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