103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4657 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED: 35 ILCS 200/18-173 Amends the Property Tax Code. Provides that provisions creating a housing opportunity abatement program apply through tax year 2034 (currently, 2024). Effective immediately. LRB103 37270 HLH 67391 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4657 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED: 35 ILCS 200/18-173 35 ILCS 200/18-173 Amends the Property Tax Code. Provides that provisions creating a housing opportunity abatement program apply through tax year 2034 (currently, 2024). Effective immediately. LRB103 37270 HLH 67391 b LRB103 37270 HLH 67391 b A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4657 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
35 ILCS 200/18-173 35 ILCS 200/18-173
35 ILCS 200/18-173
Amends the Property Tax Code. Provides that provisions creating a housing opportunity abatement program apply through tax year 2034 (currently, 2024). Effective immediately.
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A BILL FOR
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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Section 18-173 as follows:
6 (35 ILCS 200/18-173)
7 Sec. 18-173. Housing opportunity area abatement program.
8 (a) For the purpose of promoting access to housing near
9 work and in order to promote economic diversity throughout
10 Illinois and to alleviate the concentration of low-income
11 households in areas of high poverty, a housing opportunity
12 area tax abatement program is created.
13 (b) As used in this Section:
14 "Housing authority" means either a housing authority
15 created under the Housing Authorities Act or other government
16 agency that is authorized by the United States government
17 under the United States Housing Act of 1937 to administer a
18 housing choice voucher program, or the authorized agent of
19 such a housing authority that is authorized to act upon that
20 authority's behalf.
21 "Housing choice voucher" means a tenant voucher issued by
22 a housing authority under Section 8 of the United States
23 Housing Act of 1937 and a tenant voucher converted to a
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4657 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
35 ILCS 200/18-173 35 ILCS 200/18-173
35 ILCS 200/18-173
Amends the Property Tax Code. Provides that provisions creating a housing opportunity abatement program apply through tax year 2034 (currently, 2024). Effective immediately.
LRB103 37270 HLH 67391 b LRB103 37270 HLH 67391 b
LRB103 37270 HLH 67391 b
A BILL FOR
35 ILCS 200/18-173
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1 project-based voucher by a housing authority.
2 "Housing opportunity area" means a census tract where less
3 than 10% of the residents live below the poverty level, as
4 defined by the United States government and determined by the
5 most recent United States census, that is located within a
6 qualified township, except for census tracts located within
7 any township that is located wholly within a municipality with
8 1,000,000 or more inhabitants. A census tract that is located
9 within a township that is located wholly within a municipality
10 with 1,000,000 or more inhabitants is considered a housing
11 opportunity area if less than 12% of the residents of the
12 census tract live below the poverty level.
13 "Housing opportunity unit" means a dwelling unit located
14 in residential property that is located in a housing
15 opportunity area, that is owned by the applicant, and that is
16 rented to and occupied by a tenant who is participating in a
17 housing choice voucher program administered by a housing
18 authority as of January 1st of the tax year for which the
19 application is made.
20 "Qualified units" means the number of housing opportunity
21 units located in the property with the limitation that no more
22 than 2 units or 20% of the total units contained within the
23 property, whichever is greater, may be considered qualified
24 units. Further, no unit may be considered qualified unless the
25 property in which it is contained is in substantial compliance
26 with local building codes, and, moreover, no unit may be
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1 considered qualified unless it meets the United States
2 Department of Housing and Urban Development's housing quality
3 standards as of the most recent housing authority inspection.
4 "Qualified township" means a township located within a
5 county with 200,000 or more inhabitants whose tax capacity
6 exceeds 80% of the average tax capacity of the county in which
7 it is located, except for townships located within a county
8 with 3,000,000 or more inhabitants, where a qualified township
9 means a township whose tax capacity exceeds 115% of the
10 average tax capacity of the county except for townships
11 located wholly within a municipality with 1,000,000 or more
12 inhabitants. All townships located wholly within a
13 municipality with 1,000,000 or more inhabitants are considered
14 qualified townships.
15 "Tax capacity" means the equalized assessed value of all
16 taxable real estate located within a township or county
17 divided by the total population of that township or county.
18 (c) The owner of property located within a housing
19 opportunity area who has a housing choice voucher contract
20 with a housing authority may apply for a housing opportunity
21 area tax abatement by annually submitting an application to
22 the housing authority that administers the housing choice
23 voucher contract. The application must include the number of
24 housing opportunity units as well as the total number of
25 dwelling units contained within the property. The owner must,
26 under oath, self-certify as to the total number of dwelling
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1 units in the property and must self-certify that the property
2 is in substantial compliance with local building codes. The
3 housing authority shall annually determine the number of
4 qualified units located within each property for which an
5 application is made.
6 The housing authority shall establish rules and procedures
7 governing the application processes and may charge an
8 application fee. The county clerk may audit the applications
9 to determine that the properties subject to the tax abatement
10 meet the requirements of this Section. The determination of
11 eligibility of a property for the housing opportunity area
12 abatement shall be made annually; however, no property may
13 receive an abatement for more than 10 tax years.
14 (d) The housing authority shall determine housing
15 opportunity areas within its service area and annually deliver
16 to the county clerk, in a manner determined by the county
17 clerk, a list of all properties containing qualified units
18 within that service area by December 31st of the tax year for
19 which the property is eligible for abatement; the list shall
20 include the number of qualified units and the total number of
21 dwelling units for each property.
22 The county clerk shall deliver annually to a housing
23 authority, upon that housing authority's request, the most
24 recent available equalized assessed value for the county as a
25 whole and for those taxing districts and townships so
26 specified by the requesting housing authority.
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1 (e) The county clerk shall abate the tax attributed to a
2 portion of the property determined to be eligible for a
3 housing opportunity area abatement. The portion eligible for
4 abatement shall be determined by reducing the equalized
5 assessment value by a percentage calculated using the
6 following formula: 19% of the equalized assessed value of the
7 property multiplied by a fraction where the numerator is the
8 number of qualified units and denominator is the total number
9 of dwelling units located within the property.
10 (f) Any municipality, except for municipalities with
11 1,000,000 or more inhabitants, may annually petition the
12 county clerk to be excluded from a housing opportunity area if
13 it is able to demonstrate that more than 2.5% of the total
14 residential units located within that municipality are
15 occupied by tenants under the housing choice voucher program.
16 Properties located within an excluded municipality shall not
17 be eligible for the housing opportunity area abatement for the
18 tax year in which the petition is made.
19 (g) Applicability. This Section applies to tax years 2004
20 through 2034 2024, unless extended by law.
21 (Source: P.A. 98-957, eff. 8-15-14.)
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