2023 Illinois Compiled Statutes › Chapter 310 - HOUSING › 310 ILCS 105/ - Rental Housing Support Program Act.

(310 ILCS 105/1)
Sec. 1. Short title.  This Act may be cited as the Rental Housing Support
Program Act.
(Source: P.A. 94-118, eff. 7-5-05.)
(310 ILCS 105/5)
Sec. 5. Legislative findings and purpose. The General Assembly finds
that in many parts of this State, large numbers of citizens are faced with the
inability to secure affordable rental housing. Due to either insufficient wages
or a shortage of affordable rental housing stock, or both, many families have
difficulty securing decent housing, are subjected to overcrowding, pay too
large a portion of their total monthly income for housing and consequently
suffer the lack of other
basic needs, live in substandard or unhealthy housing, or experience chronic
housing instability. Instability and inadequacy in housing limits the
employability and productivity of many citizens, adversely affects family
health and stress levels, and impedes children's ability to learn; such instability produces
corresponding drains on public resources and contributes to an overall decline in real estate values. Unaffordable rental
rates lead to frequent tenant turnover and difficulty filling vacancies, resulting in unstable
income streams for rental property owners, the limited ability of owners to properly maintain
their properties, substandard rental housing, and greater rates of foreclosure. High tenant
turnover, poorly maintained properties, vacant and abandoned properties, and overcrowded
housing negatively impact the safety and health of communities and the real estate values within
such communities. Among others, the program created by this Act benefits (i) all individuals
who record real estate related documents by helping to stabilize real estate values in the State,
(ii) rental property owners by subsidizing the portion of rent that many of their tenants are unable to pay, (iii) those individuals who own real estate in the State by providing an option for
affordable rental housing should they one day face foreclosure, and (iv) tenants who participate
in the program by providing them with rental assistance and the ability to achieve financial
stability so that they are able to become property owners themselves. It is the purpose of this Act to
create a State program to help localities address the need for decent,
affordable, permanent rental housing.
(Source: P.A. 97-892, eff. 8-3-12; 98-5, eff. 3-22-13.)
(310 ILCS 105/7)
Sec. 7. Definitions. In this Act:
"Annual receipts" means revenue derived from the Rental
Housing Support Program State surcharge from July 1 to June
30.
"Authority" means the Illinois Housing Development Authority.
"Developer" means any entity that receives a grant under Section 20.
"Program" means the Rental Housing Support Program.
"Real estate-related document" means any recorded document that affects an
interest in real property excluding documents which solely affect or relate to an easement for water, sewer, electricity, gas, telephone or other public service.
"Unit" means a rental apartment unit receiving a subsidy by means of a grant
under this Act. "Unit" does not include housing units intended as transitional
or
temporary housing.
(Source: P.A. 99-97, eff. 7-22-15.)
(310 ILCS 105/10)
Sec. 10. Creation of Program and distribution of funds.
(a) The Rental Housing Support Program is created within the Illinois Housing Development Authority.  The Authority shall administer the Program and adopt rules for its implementation.
(b) The Authority shall distribute amounts for the Program solely from annual receipts on deposit in the Rental Housing Support Program Fund that are appropriated in each year for distribution by the Authority for the Program, and not from any other source of funds for the Authority, as follows:
(1) A proportionate share of annual receipts on     deposit appropriated to the Fund each year, as determined under subsection (d) of Section 15 of this Act, shall be distributed to municipalities with a population greater than 2,000,000.  Those municipalities shall use at least 10% of those funds in accordance with Section 20 of this Act, and all provisions governing the Authority's actions under Section 20 shall govern the actions of the corporate authorities of a municipality under this Section.  As to the balance of the annual distribution, the municipality shall designate a non-profit organization that meets the specific criteria set forth in Section 25 of this Act to serve as the "local administering agency" under Section 15 of this Act.
(2) Of the remaining annual receipts on deposit     appropriated to the Fund each year after the distribution in paragraph (1) of this subsection, the Authority shall designate at least 10% for the purposes of Section 20 of this Act in areas of the State not covered under paragraph (1) of this subsection.
(3) The remaining annual receipts on deposit     appropriated to the Fund each year after the distributions in paragraphs (1) and (2) of this subsection shall be distributed according to Section 15 of this Act in areas of the State not covered under paragraph (1) of this subsection.
(Source: P.A. 99-97, eff. 7-22-15.)
(310 ILCS 105/15)
Sec. 15. Grants to local administering agencies.
(a) Under the program, the Authority shall make grants to local
administering agencies to provide subsidies to landlords to enable the
landlords to charge rent affordable for low-income tenants. Grants shall also
include an amount for the operating expenses of local administering agencies.
On an annual basis, operating expenses for local administering agencies shall not exceed 10% for grants under $500,000 and shall not exceed 7% for grants over $500,000. If a grant to a local administering agency covers more than one year, the Authority shall calculate operating expenses on an annual pro rata share of the grant. If the annual pro rata share is $500,000 or less, then the fee shall be 10%; if the annual pro rata share is greater than $500,000, then the fee shall be 7%.
(b) The Authority shall develop a request-for-proposals process for
soliciting proposals from local administering agencies and for
awarding grants. The request-for-proposals process and the funded projects must
be consistent with the criteria set forth in Section 25 and with
additional criteria set forth by the Authority in rules implementing this Act.
As part of the request-for-proposal process and subject to the requirements contained in subsection (d), best efforts will be used to prioritize local administering agencies that serve the county in which annual receipts were collected upon receipt of current data from the Department of Revenue applicable to the annual receipts.
(c) Local administering agencies may be local governmental bodies, local
housing authorities, or not-for-profit organizations. The Authority shall
set forth in rules the financial and capacity requirements necessary for an
organization to qualify as a local administering agency and the parameters for administration of  the grants by local administering agencies.
The Authority shall use best efforts through outreach to local administering agencies to encourage at least one local administering agency to serve each county, subject to subsection (d).
(d) The Authority shall distribute grants to local administering agencies
according to a formula based on U.S. Census data. The formula shall determine
percentages of the funds to be distributed to the following geographic areas:
(i)
Chicago; (ii) suburban areas: Cook County (excluding Chicago), DuPage County,
Lake County, Kane County, Will County, and McHenry County; (iii) small
metropolitan areas: Springfield, Rockford, Peoria, Decatur, Champaign-Urbana,
Bloomington-Normal, Rock Island, DeKalb, Madison County, Moline, Pekin,
Rantoul, and St. Clair County; and (iv) rural areas, defined as all areas of the State not specifically named in items (i), (ii), and (iii) of this subsection. A geographic area's
percentage share shall be determined by the total number of households that
have an annual income of less than 50% of State median income for a household
of 4, as determined by the U.S. Department of Housing and Urban Development, and that are paying more than 30% of their income for rent. The geographic distribution shall be re-determined
by the Authority each time new U.S. Census data becomes available. The
Authority shall phase in any changes to the geographic formula to prevent a
large
withdrawal of resources from one area that could negatively impact households
receiving rental housing support.
Up to 20% of the funds allocated for rural areas, as defined in this subsection, may be set aside and awarded to one administering agency to be distributed throughout the rural areas in the State to localities that desire a number of subsidized units of housing that is too small to justify the establishment of a full local program. In those localities, the administering agency may contract with local agencies to share the administrative tasks of the program, such as inspections of units.
(e) In order to ensure applications from all geographic areas of the
State, the
Authority shall create a plan to ensure that potential local
administering agencies have
ample time and support to consider making an application and to prepare an
application.
Such a plan must include, but is not limited to: an outreach and education plan
regarding
the program and the requirements for a local administering agency; ample time
between the
initial
notice of funding ability and the deadline to submit an application, which
shall not be less than 9
months;
and access to assistance from the Authority or another agency in considering
and preparing the application.
(f) In order to maintain consistency for households receiving rental housing
support, the Authority shall, to the extent possible given funding resources available in the Rental Housing Support Program,
continue to fund local administering agencies at the same level on an annual
basis, unless the Authority determines that a local administering agency is not
meeting the criteria set forth in Section 25 or is not adhering to other standards set forth by rule by the Authority.
(Source: P.A. 102-1135, eff. 7-1-23.)
(310 ILCS 105/20)
Sec. 20. Grants for affordable housing developments.
(a) The Authority may award grants under the program directly for
the development of affordable rental housing for long-term
operating support to enable the rent on such units to be affordable.
Developers of such new housing shall apply directly to the
Authority for this type of grant under the program.
(b) The Authority shall prescribe by rule the application requirements
and the qualifications necessary for a developer and a development
to qualify for a grant under the program. In any event, however, to
qualify for a grant, the development must satisfy the criteria set
forth in Section 25, unless waived by the Authority
based on special circumstances and in furtherance of the purpose
of the program to increase the supply of affordable rental housing.
In awarding grants under this Section and in addition to any other requirements and qualifications specified in this Act and by rule, the Authority shall also consider the improvement of the geographic diversity of the developments under this Section among the decision criteria.
(c) The Authority must use at least 10% of the funds generated for the
Program in any
given year for grants under this Section.
In any given year, the Authority is not required to spend the 10% of its
funds that accrues
in that year but may add all or part of that 10% to the 10% allocation for
subsequent years
for the purpose of funding grants under this Section.
(Source: P.A. 94-118, eff. 7-5-05.)
(310 ILCS 105/25)
Sec. 25. Criteria for awarding grants.  The Authority shall adopt rules
to govern the awarding of grants and the continuing eligibility for grants
under Sections 15 and 20. Requests for proposals under
Section 20 must specify that proposals must satisfy these rules.
The rules must contain and be consistent with, but need not be limited to,
the following criteria:
(1) Eligibility for tenancy in the units supported by     grants to local administering agencies must be limited to households with gross income at or below 30% of the median family income for the area in which the grant will be made. Fifty percent of the units that are supported by any grant must be set aside for households whose income is at or below 15% of the area median family income for the area in which the grant will be made, provided that local administering agencies may negotiate flexibility in this set-aside with the Authority if they demonstrate that they have been unable to locate sufficient tenants in this lower income range. Income eligibility for units supported by grants to local administering agencies must be verified annually by landlords and submitted to local administering agencies. Tenants must have sufficient income to be able to afford the tenant's share of the rent. For grants awarded under Section 20, eligibility for tenancy in units supported by grants must be limited to households with a gross income at or below  30% of area median family income for the area in which the grant will be made.  Fifty percent of the units that are supported by any grant must be set aside for households whose income is at or below  15% of the median family income for the area in which the grant will be made, provided that developers may negotiate flexibility in this set-aside with the Authority or municipality as defined in subsection (b) of Section 10 if it demonstrates that it has  been unable to locate sufficient tenants in this lower income range. The Authority shall determine what sources qualify as a tenant's income. Once a tenant has received assistance under the Program, the tenant shall remain eligible for assistance under the Program until the tenant reaches an income level of 35% of area median family income and will then begin the transition out of the Program, as described in the rules governing the Program.
(2) Local administering agencies should include     2-bedroom, 3-bedroom, and 4-bedroom units among those intended to be supported by grants under the Program. In grants under Section 15, the precise number of these units among all the units intended to be supported by a grant must be based on need in the community for larger units and other factors that the Authority specifies in rules. The local administering agency must specify the basis for the numbers of these units that are proposed for support under a grant. Local administering agencies must make a good faith effort to comply with this allocation of unit sizes. In grants awarded under Section 20, developers and the Authority or municipality, as defined in subsection (b) of Section 10, shall negotiate the numbers and sizes of units to be built in a project and supported by the grant.
(3) Under grants awarded under Section 15, local     administering agencies must enter into a payment contract with the landlord that defines the method of payment and must pay subsidies to landlords on a quarterly basis and in advance of the quarter paid for.
(4) Local administering agencies and developers must     specify how vacancies in units supported by a grant must be advertised and they must include provisions for outreach to local homeless shelters, organizations that work with people with disabilities, and others interested in affordable housing.
(5) The local administering agency or developer must     establish a schedule for the tenant's rental obligation for units supported by a grant. The tenant's share of the rent must be a flat amount, calculated annually, based on the size of the unit and the household's income category. In establishing the schedule for the tenant's rental obligation, the local administering agency or developer must use 30% of gross income within an income range as a guide, and it may charge an additional or lesser amount.
(6) The amount of the subsidy provided under a grant     for a unit must be the difference between the amount of the tenant's obligation and the total amount of rent for the unit. The total amount of rent for the unit must be negotiated between the local administering authority and the landlord under Section 15, or between the Authority or municipality, as defined in subsection (b) of Section 10, and the developer under Section 20, using comparable rents for units of comparable size and condition in the surrounding community as a guideline.
(7) Local administering agencies and developers,     pursuant to criteria the Authority develops in rules, must ensure that there are procedures in place to maintain the safety and habitability of units supported under grants. Local administering agencies must inspect units before supporting them under a grant awarded under Section 15.
(8) Local administering agencies must provide or     ensure that tenants are provided with a "bill of rights" with their lease setting forth local landlord-tenant laws and procedures and contact information for the local administering agency.
(9) A local administering agency must create a plan     detailing a process for helping to provide information, when necessary, on how to access education, training, and other supportive services to tenants living in units supported under the grant. The plan must be submitted as a part of the administering agency's proposal to the Authority required under Section 15.
(10) Local administering agencies and developers may     not use funding under the grant to develop or support housing that requires that a tenant has a particular diagnosis or type of disability as a condition of eligibility for occupancy unless the requirement is mandated by another funding source for the housing. Local administering agencies and developers may use grant funding to develop integrated housing opportunities for persons with disabilities, but not housing restricted to a specific disability type.
(11) In order to plan for periodic fluctuations in     annual receipts on deposit appropriated to the Fund each year, the Authority shall establish by rule a mechanism for establishing a reserve fund and the level of funding that shall be held in reserve either by the Authority or by local administering agencies.
(12) The Authority shall perform annual     reconciliations of all distributions made in connection with the Program and may offset future distributions to balance geographic distribution requirements of this Act. (Source: P.A. 102-270, eff. 1-1-22.)
(310 ILCS 105/30)
(Section scheduled to be repealed on September 30, 2024)
Sec. 30. Illinois Rental Housing Support Program Funding Allocation Task Force.
(a) The Illinois Rental Housing Support Program Funding Allocation Task Force is hereby created. The Task Force shall consist of the following members:
(1) One member appointed by the President of the     Senate.
(2) One member appointed by the Minority Leader of     the Senate.
(3) One member appointed by the Speaker of the House     of Representatives.
(4) One member appointed by the Minority Leader of     the House of Representatives.
(5) One member appointed by the Illinois Housing     Development Authority.
(6) One member representing the Chicago Low-Income     Housing Trust Fund, appointed by the Board of Directors of the Trust Fund.
(7) One member representing a local administering     agency from Cook County (excluding Chicago), DuPage County, Lake County, Kane County, Will County, or McHenry County, appointed by the Governor.
(8) One member, appointed by the Governor,     representing a local administering agency from a small metropolitan area from one of the following areas: Springfield, Rockford, Peoria, Decatur, Champaign, Urbana, Bloomington, Normal, Rock Island, DeKalb, Madison County, Moline, Pekin, Rantoul, or St. Clair County.
(9) One member representing a local administering     agency from a rural area, appointed by the Governor; as used in this paragraph, "rural area" means an area of the State that is not specifically named in paragraph (7) or (8).
(10) Three members from an organization representing     Illinois county clerks and recorders, appointed by the Governor, as follows:
(A) one member from Cook County (excluding         Chicago), DuPage County, Lake County, Kane County, Will County, or McHenry County;
(B) one member from a small metropolitan area         from one of the following areas: the cities of Springfield, Rockford, Peoria, Decatur, Champaign, Urbana, Bloomington, Normal, Rock Island, DeKalb, Moline, Pekin, or Rantoul or Madison County or St. Clair County; and
(C) one member from a rural area, appointed by         the Governor; as used in this subparagraph, "rural area" means an area of the State that is not specifically named in subparagraph (A) or (B).
(11) Up to two members representing a Section     501(c)(3) affordable housing advocacy organization, appointed by the Governor.
(12) One additional member appointed by the Governor.
Members of the Task Force must be appointed no later than 30 days after the effective date of this amendatory Act of the 102nd General Assembly. If any members are not appointed within the 30-day period, the entity or person responsible for making the appointment shall be deemed to have forfeited the right to make such appointment.
(b) Once appointed, the members shall elect a chairperson and vice chairperson by a simple majority vote.
If a vacancy occurs on the Task Force, it shall be filled according to the initial appointment.
At the discretion of the chair, additional individuals may participate as nonvoting members in the meetings of the Task Force.
Members of the Task Force shall serve without compensation. The Illinois Housing Development Authority shall provide staff and administrative services to the Task Force.
(c) Once all members have been appointed, the Task Force shall meet not less than 3 times to carry out the duties prescribed in this Section. Members of the Task Force may attend such meetings virtually.
(d) A report delineating the Task Force's findings, conclusions, and recommendations shall be submitted to the General Assembly no later than September 30, 2023.
(e) The members of the Task Force are exempt  from requirements of the State Officials and Employees Ethics Act, the Illinois Governmental Ethics Act, or any other applicable law or regulation that would require Task Force members to complete trainings, disclosures, or other filings since the Task Force is of limited duration and is charged only with delivering a non-binding report.
(f) The Task Force shall study and make recommendations regarding the equitable distribution of rental housing support funds across the State. The Task Force shall also work with the Illinois Housing Development Authority as funding allocations will be required to be adjusted due to data released by the United States Census Bureau on the 2020 decennial census.
(g) This Section is repealed on September 30, 2024.
(Source: P.A. 102-1135, eff. 7-1-23.)
(310 ILCS 105/85)
Sec. 85. 
	(Amendatory provisions; text omitted).
(Source: P.A. 94-118, eff. 7-5-05; text omitted.)
(310 ILCS 105/90)
Sec. 90. 
	(Amendatory provisions; text omitted).
(Source: P.A. 94-118, eff. 7-5-05; text omitted.)
(310 ILCS 105/95)
Sec. 95. Severability. If any provision of this Act or its application to any person or circumstance is held invalid, the invalidity of that provision or application does not affect other provisions or applications of this Act that can be given effect without the invalid provision or application.
(Source: P.A. 97-892, eff. 8-3-12.)
(310 ILCS 105/99)
(This Act was approved by the Governor on July 5, 2005, so the actual effective date of this Act is July 5, 2005)
Sec. 99. Effective date. This Act takes effect July 1, 2005.
(Source: P.A. 94-118, eff. 7-5-05.)