35 ILCS 200/18-173
2021 Illinois Compiled Statutes|Chapter 35 - REVENUE|35 ILCS 200/ - Property Tax Code.|Title 6 - Levy and Extension

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