Bill Text: IL HB4575 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Rental Housing Support Program Act. In provisions requiring the Illinois Housing Development Authority (Authority) to distribute certain amounts for the Rental Housing Support Program from annual receipts on deposit in the Rental Housing Support Program Fund, provides that certain annual receipts for municipalities and for grants to local administering agencies shall be distributed with priority to local administering agencies from the county in which the annual receipts were collected. Provides that the Authority shall wait at least 6 months after annual receipts are deposited into the Fund before distributing the annual receipts. In a provision concerning grants to local administering agencies to provide rent subsidies to landlords for low-income tenants, provides that at least one local administering agency shall serve each county (rather than requiring the Authority to use best efforts through outreach to local administering agencies to encourage at least one local administering agency to serve each county).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-01-31 - Referred to Rules Committee [HB4575 Detail]

Download: Illinois-2023-HB4575-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4575 Introduced , by Rep. Bradley Fritts SYNOPSIS AS INTRODUCED:
310 ILCS 105/10
310 ILCS 105/15
Amends the Rental Housing Support Program Act. In provisions requiring the Illinois Housing Development Authority (Authority) to distribute certain amounts for the Rental Housing Support Program from annual receipts on deposit in the Rental Housing Support Program Fund, provides that certain annual receipts for municipalities and for grants to local administering agencies shall be distributed with priority to local administering agencies from the county in which the annual receipts were collected. Provides that the Authority shall wait at least 6 months after annual receipts are deposited into the Fund before distributing the annual receipts. In a provision concerning grants to local administering agencies to provide rent subsidies to landlords for low-income tenants, provides that at least one local administering agency shall serve each county (rather than requiring the Authority to use best efforts through outreach to local administering agencies to encourage at least one local administering agency to serve each county).
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A BILL FOR
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AN ACT concerning housing.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Rental Housing Support Program Act is
amended by changing Sections 10 and 15 as follows:
(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

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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.
Annual receipts distributed under paragraphs (1) and (2)
of this subsection and under Section 15 shall be distributed
with priority to local administering agencies from the county
in which the annual receipts were collected.
The Authority shall wait at least 6 months after annual
receipts are deposited into the Fund before distributing the
annual receipts.

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(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

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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. At The Authority shall use best
efforts through outreach to local administering agencies to
encourage at least one local administering agency shall 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

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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

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