Illinois Administrative Code › Title 47 - HOUSING AND COMMUNITY DEVELOPMENT › Part 355 - ILLINOIS AFFORDABLE HOUSING TAX CREDIT PROGRAM › Subpart A - GENERAL RULES › Section 355.103 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
As used in this Part, the following words or terms
				  mean:
"Act": The Illinois Housing Development Act [20 ILCS 3805
				  ].
"Affordable Housing Project": A housing project that is
				  either:
a rental project in which at least 25% of the Units that have
				  rents (including tenant-paid heat) that do not exceed, on a monthly basis, 30%
				  of the gross monthly income of a Household earning the maximum income for a
				  Low-Income Household in the geographical area in which the Affordable Housing
				  Project is located and that are occupied by persons and families who qualify as
				  Low-Income Households; or
a Unit for sale to Low-Income Households and who will pay no
				  more than 30% of their gross household income for mortgage principal, interest,
				  property taxes, and property insurance upon the purchase of the Unit.
An Agency may consider a Project to be a rental project even
				  when a tenant does not pay rent if a rental subsidy is received by the Project
				  or tenant.
"Affordable Housing Restrictions": The income and occupancy
				  restrictions for an Affordable Housing Project or an Employer-Assisted Housing
				  Project required by Section 7.28 and this Part, or those set forth in the
				  Application for the Affordable Housing Project or the Employer-Assisted Housing
				  Project, whichever are more stringent.
"Affordable Housing Tax Credits": Affordable Housing Tax
				  Credits, as authorized by Section 7.28 of the Act and Section 214 of the
				  Illinois Income Tax Act [35 ILCS
				  5/214 ].
"Affordable Housing Tax Credit Ceiling": The aggregate amount
				  of Affordable Housing Tax Credits available for Allocation in a State fiscal
				  year.
"Agency": The Authority, the City of Chicago or any other
				  municipality that may subsequently be designated by law as an agency for the
				  Allocation of Affordable Housing Tax Credits.
"Agency Affordable Housing Tax Credit Ceiling": That portion
				  of the Affordable Housing Tax Credit Ceiling that is available for Allocation
				  by an Agency. That amount is 24.5 % of the Affordable Housing Tax Credit
				  Ceiling for the City of Chicago, and
				  75.5 % of the
				  Affordable Housing Tax Credit Ceiling for the Authority.
"Agency Head": The Executive Director of the Authority or the
				  Housing Commissioner of the City of Chicago.
"Allocation": An award by an Agency of Affordable Housing Tax
				  Credits in connection with a Project.
"Applicant": The Sponsor (and any other affiliated entities)
				  applying for an Allocation.
"Application": An application to an Agency for a Reservation
				  and an Allocation submitted by an Applicant, including the required supporting
				  documentation.
"Authority": The Illinois Housing Development
				  Authority.
"Certificate": The certificate issued by an Agency evidencing
				  an Allocation. The Certificate shall be issued and delivered to the Donor
				  unless otherwise directed by the Donor pursuant to Section 309 of this Part and
				  shall state the effective date of the Allocation.
"Compliance Period": The period during which a Project is
				  obligated to comply with the Affordable Housing Restrictions, as set forth in
				  the Application. The Compliance Period for an Affordable Housing Project shall
				  be a minimum of 10 years from the date of the issuance of the certificate of
				  occupancy from the municipality in which the Affordable Housing Project is
				  located (or the like, as acceptable to the Agency in its discretion, for
				  Affordable Housing Projects that are rehabilitated and when the municipality
				  does not re-issue a certificate of occupancy). The Compliance Period for a
				  Single Family Project or an Employer-Assisted Housing Project in which a
				  Sponsor provides construction subsidies, down payment and closing cost
				  assistance or homeownership counseling to Low-Income Households or, for
				  Employer-Assisted Housing Projects, Moderate-Income Households purchasing a
				  Single Family Residence shall be 5 years from the date of the closing of the
				  purchase of the Single Family Residence. The Compliance Period in connection
				  with the purchase of a Single Family Residence may be reduced as provided in
				  Section
				  355.404 of
				  this Part.
"Donation": Money, securities, real property, or personal
				  property that is provided without consideration to a Sponsor and that is used
				  for:
costs associated with purchasing, rehabilitating,
				  constructing, or providing or obtaining financing for an Affordable Housing
				  Project, including fees for attorneys, architects, accountants, surveyors and
				  appraisers;
Technical Assistance; or
General Operating Support of the Sponsor; or
an Employer-Assisted Housing Project.
"Donor": An individual or entity, other than the Federal
				  government, the State government, any local municipality or any agency, board
				  commission, corporation or authority of the Federal government, the State
				  government or any local government, except as provided in Section
				  355.311
				  of this Part, making a Donation. For purposes of this definition and related
				  provisions of this Part, any school district within the State of Illinois will
				  not be deemed to be a local municipality or agency, board, commission,
				  corporation or authority or the Federal government, the State government or any
				  local government.
"Employer-Assisted Housing Project": A project that involves
				  Donations made to a Sponsor that are used for down payment and closing cost
				  assistance, reduced-interest mortgages, mortgage guarantee programs, rental
				  subsidies, or individual development account savings plans that are:
provided by the Sponsor to the employers' employees to assist
				  them to secure housing near the employer's work place; and
restricted to housing near such work place; and
restricted to employees who qualify as Moderate-Income
				  Households.
"General Operating Support": Any cost incurred by a Sponsor,
				  directly or indirectly, in connection with an Affordable Housing Project or an
				  Employer-Assisted Housing Project. Such costs may include a proportionate
				  amount of the general overhead expenses of the Sponsor.
"Gross Household Income": The total annualized income of a
				  Household from whatever source derived and before taxes or withholdings.
"Household": A single person, family or unrelated persons
				  living together.
"Initial Closing Date": The date by which the Agency has
				  determined that the Sponsor and the Project have met all legal requirements of
				  the Program. As applicable to Projects, an Agency may consider whether the
				  Sponsor and the Project have satisfied the requirements of any other funding
				  sources for the Project.
"Low-Income Household": A Household whose adjusted income is
				  less than or equal to 60% of the median income of the geographical area of the
				  Household's prospective residence, adjusted for family size, as such adjusted
				  income and median income for the geographical area are determined from time to
				  time by the United States Department of Housing and Urban Development for
				  purposes of Section 8 of the United States Housing Act of 1937 (
				  42 USC
				  1437 ).
"Material Participation": An individual or entity that
				  provides personal services to tenants or prospective tenants of a Multifamily
				  Housing Project or rental Single Family Project, or professional services to a
				  Multifamily Housing Project, on a regular, continuous, and substantial basis
				  for more than 300 hours during each year during the Compliance Period. The
				  requirement for Material Participation, as established in Sections
				  355.206 and
				  355.310
				  of this Part, will be satisfied if the Sponsor is the owner, or holds a
				  controlling interest in the entity that is the owner, of the Project; or is the
				  managing general partner, or holds a controlling interest in the entity that is
				  the managing general partner, of a limited partnership that is the owner of the
				  Project; or is the managing member, or holds a controlling interest in the
				  entity that is the managing member, of the limited liability company that is
				  the owner of the Project.
"Members": The Members of the Authority.
"Moderate-Income Household": A Household whose adjusted
				  income is less than 120% of the median income of the geographical area of the
				  Household's Employer-Assisted Housing Project, adjusted for family size, as
				  such adjusted income and median income for the geographical area are determined
				  from time to time by the United States Department of Housing and Urban
				  Development for purposes of Section 8 of the United States Housing Act of 1937
				  (
				  42 USC
				  1437 ).
"Multifamily Housing Project": An Affordable Housing Project
				  comprised of one or more buildings (other than Single Family Residences)
				  containing an aggregate of five or more rental Units.
"Program": The Illinois Affordable Housing Tax Credit
				  Program.
"Project": An Affordable Housing Project, Employer-Assisted
				  Housing Project, or Technical Assistance.
"Recapture Agreement": The Recapture Agreement to be recorded
				  against a Single Family Residence in connection with a Very Low-Income,
				  Low-Income or, for Employer-Assisted Housing Projects, Moderate-Income
				  Household's purchase of the Single Family Residence.
"Regulatory Agreement": The Illinois Affordable Housing Tax
				  Credit Regulatory Agreement to be recorded against rental Affordable Housing
				  Projects and Employer-Assisted Housing Projects, as applicable.
"Reservation": An Agency's conditional reservation of
				  Affordable Housing Tax Credits for a Sponsor, as may be amended from time to
				  time. A Reservation shall be valid for a period no longer than 12 months from
				  the date of the Reservation Letter unless extended pursuant to Section
				  355.205(d)
				  of this Part.
"Reservation Letter": The letter from an Agency to a Sponsor
				  conditionally reserving Affordable Housing Tax Credits.
"Section 7.28": Section 7.28 of the Act.
"Single Family Project": An Affordable Housing Project
				  consisting of:
the construction of Single Family Residences; or
the rehabilitation of a 2, 3, or 4 Unit building; upon
				  completion of rehabilitation, the Units are sold or rented; or
the rehabilitation of Single Family Residences, which are
				  then sold or rented; or
the rehabilitation of buildings containing more than 4 Units;
				  upon completion of rehabilitation, the Units are sold as condominiums;
				  or
the financing of Single Family Residences using junior
				  mortgages with a below market interest rate; or
construction subsidies to lower the purchase price of Single
				  Family Residences; or
down payment and closing cost assistance.
"Single Family Residence": A house, condominium, townhouse or
				  other residence used for occupancy by a single Household as its primary
				  residence.
"Sponsor": A not-for-profit organization that is:
organized under the laws of this State or any other state
				  and:
for an Affordable Housing Project, has as one of its purposes
				  the development of affordable housing; or
for an Employer-Assisted Housing Project or Technical
				  Assistance, has as one of its purposes either the development of affordable
				  housing or home ownership education; or
organized for the purpose of constructing or rehabilitating
				  affordable housing Units and has been issued a ruling from the Internal Revenue
				  Service of the United States Department of the Treasury that the organization
				  is exempt from income taxation under provisions of the Internal Revenue Code;
				  or
an organization designated as a community development
				  corporation by the United States Government under Title VII of the Economic
				  Opportunity Act of 1964; or
a limited liability company that has a not-for-profit
				  organization as its sole member.
"State": The State of Illinois.
"Technical Assistance": Any cost incurred by a Sponsor
				  for:
planning for a Project; or
assistance with an Application; or
homeownership counseling services provided to prospective
				  purchasers of a Single Family Residence in connection with a Single Family
				  Project or an Employer-Assisted Housing Project.
"Unit": A housing unit contained in an Affordable Housing
				  Project, a Multifamily Housing Project, a Single Family Project, or a Single
				  Family Residence; housing units intended as dormitories, hotels, or
				  transitional or temporary housing do not qualify as Units.
"Very Low-Income Household": A Household whose adjusted
				  income is less than or equal to 50% of the median income of the geographical
				  area of the Household's prospective residence, adjusted for family size, as
				  such adjusted income and median income for the geographical area are determined
				  from time to time by the United States Department of Housing and Urban
				  Development for purposes of Section 8 of the United States Housing Act of 1937
				  (
				  42 USC
				  1437 ).