Bill Text: IL SB1905 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that "redevelopment project costs" include the costs of demolishing buildings, site preparation, or site improvements of a dilapidated or vacant parcel zoned for residential use or costs of reconstruction, repair, remodeling, or new construction of a single-family residence on a dilapidated or vacant parcel zoned for residential use. Amends the Property Tax Code. Provides that a municipality, upon adoption of an ordinance or resolution by majority vote of its corporate authorities, may order the county clerk to abate, for 20 years, the portion of the taxes levied upon an improved parcel of real property that is attributable to the increase in the current equalized assessed valuation of the parcel over and above the equalized assessed valuation of the parcel immediately before the demolition of the dilapidated structure on the parcel. Provides that "improved parcel of real property" means a parcel where redevelopment project costs have been used by the municipality for the construction of a new single-family residence on a parcel zoned for residential use after demolition or removal of a dilapidated structure from that parcel. Provides that an abatement approved under the provisions shall be extended to all subsequent owners of the improved parcel of real property during the abatement period.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2023-02-09 - Referred to Assignments [SB1905 Detail]

Download: Illinois-2023-SB1905-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1905 Introduced 2/9/2023, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
35 ILCS 200/18-182 new
65 ILCS 5/11-74.4-3 from Ch. 24, par. 11-74.4-3
Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that "redevelopment project costs" include the costs of demolishing buildings, site preparation, or site improvements of a dilapidated or vacant parcel zoned for residential use or costs of reconstruction, repair, remodeling, or new construction of a single-family residence on a dilapidated or vacant parcel zoned for residential use. Amends the Property Tax Code. Provides that a municipality, upon adoption of an ordinance or resolution by majority vote of its corporate authorities, may order the county clerk to abate, for 20 years, the portion of the taxes levied upon an improved parcel of real property that is attributable to the increase in the current equalized assessed valuation of the parcel over and above the equalized assessed valuation of the parcel immediately before the demolition of the dilapidated structure on the parcel. Provides that "improved parcel of real property" means a parcel where redevelopment project costs have been used by the municipality for the construction of a new single-family residence on a parcel zoned for residential use after demolition or removal of a dilapidated structure from that parcel. Provides that an abatement approved under the provisions shall be extended to all subsequent owners of the improved parcel of real property during the abatement period.
LRB103 26712 AWJ 53075 b
A BILL FOR
SB1905 LRB103 26712 AWJ 53075 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by adding
Section 18-182 as follows:
(35 ILCS 200/18-182 new)
Sec. 18-182. Abatement; new residential construction
within redevelopment project areas.
(a) As used in this Section.
"Improved parcel of real property" means a parcel where
redevelopment project costs in a redevelopment project area
have been used by the municipality for the construction of a
new single-family residence on a parcel zoned for residential
use after demolition or removal of a dilapidated structure
from that parcel.
"Redevelopment project area" and "redevelopment project
costs" have the meanings given to those terms under Section
11-74.4-3 of the Illinois Municipal Code.
(b) A municipality, upon adoption of an ordinance or
resolution by majority vote of its corporate authorities, may
order the county clerk to abate, for 20 years, the portion of
the taxes levied upon an improved parcel of real property that
is attributable to the increase in the current equalized

SB1905 - 2 - LRB103 26712 AWJ 53075 b
assessed valuation of the parcel over and above the equalized
assessed valuation of the parcel immediately before the
demolition of the dilapidated structure on the parcel. An
abatement approved under this Section shall be extended to all
subsequent owners of the improved parcel of real property
during the abatement period.
(c) Before final adoption of an abatement ordinance or
resolution under this Section, the corporate authorities of a
municipality must notify each affected taxing district of the
proposed ordinance or resolution. The notice shall be sent by
mail at least 30 days before the public hearing in which the
ordinance or resolution may be adopted.
Section 10. The Illinois Municipal Code is amended by
changing Section 11-74.4-3 as follows:
(65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
Sec. 11-74.4-3. Definitions. The following terms, wherever
used or referred to in this Division 74.4 shall have the
following respective meanings, unless in any case a different
meaning clearly appears from the context.
(a) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "blighted area" shall have the meaning set forth in
this Section prior to that date.

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On and after November 1, 1999, "blighted area" means any
improved or vacant area within the boundaries of a
redevelopment project area located within the territorial
limits of the municipality where:
(1) If improved, industrial, commercial, and
residential buildings or improvements are detrimental to
the public safety, health, or welfare because of a
combination of 5 or more of the following factors, each of
which is (i) present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) reasonably distributed throughout the
improved part of the redevelopment project area:
(A) Dilapidation. An advanced state of disrepair
or neglect of necessary repairs to the primary
structural components of buildings or improvements in
such a combination that a documented building
condition analysis determines that major repair is
required or the defects are so serious and so
extensive that the buildings must be removed.
(B) Obsolescence. The condition or process of
falling into disuse. Structures have become ill-suited
for the original use.
(C) Deterioration. With respect to buildings,
defects including, but not limited to, major defects
in the secondary building components such as doors,

SB1905 - 4 - LRB103 26712 AWJ 53075 b
windows, porches, gutters and downspouts, and fascia.
With respect to surface improvements, that the
condition of roadways, alleys, curbs, gutters,
sidewalks, off-street parking, and surface storage
areas evidence deterioration, including, but not
limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds
protruding through paved surfaces.
(D) Presence of structures below minimum code
standards. All structures that do not meet the
standards of zoning, subdivision, building, fire, and
other governmental codes applicable to property, but
not including housing and property maintenance codes.
(E) Illegal use of individual structures. The use
of structures in violation of applicable federal,
State, or local laws, exclusive of those applicable to
the presence of structures below minimum code
standards.
(F) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that
represent an adverse influence on the area because of
the frequency, extent, or duration of the vacancies.
(G) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for
light or air circulation in spaces or rooms without
windows, or that require the removal of dust, odor,

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gas, smoke, or other noxious airborne materials.
Inadequate natural light and ventilation means the
absence of skylights or windows for interior spaces or
rooms and improper window sizes and amounts by room
area to window area ratios. Inadequate sanitary
facilities refers to the absence or inadequacy of
garbage storage and enclosure, bathroom facilities,
hot water and kitchens, and structural inadequacies
preventing ingress and egress to and from all rooms
and units within a building.
(H) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage,
sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate.
Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the
redevelopment project area, (ii) deteriorated,
antiquated, obsolete, or in disrepair, or (iii)
lacking within the redevelopment project area.
(I) Excessive land coverage and overcrowding of
structures and community facilities. The
over-intensive use of property and the crowding of
buildings and accessory facilities onto a site.
Examples of problem conditions warranting the
designation of an area as one exhibiting excessive
land coverage are: (i) the presence of buildings

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either improperly situated on parcels or located on
parcels of inadequate size and shape in relation to
present-day standards of development for health and
safety and (ii) the presence of multiple buildings on
a single parcel. For there to be a finding of excessive
land coverage, these parcels must exhibit one or more
of the following conditions: insufficient provision
for light and air within or around buildings,
increased threat of spread of fire due to the close
proximity of buildings, lack of adequate or proper
access to a public right-of-way, lack of reasonably
required off-street parking, or inadequate provision
for loading and service.
(J) Deleterious land use or layout. The existence
of incompatible land-use relationships, buildings
occupied by inappropriate mixed-uses, or uses
considered to be noxious, offensive, or unsuitable for
the surrounding area.
(K) Environmental clean-up. The proposed
redevelopment project area has incurred Illinois
Environmental Protection Agency or United States
Environmental Protection Agency remediation costs for,
or a study conducted by an independent consultant
recognized as having expertise in environmental
remediation has determined a need for, the clean-up of
hazardous waste, hazardous substances, or underground

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storage tanks required by State or federal law,
provided that the remediation costs constitute a
material impediment to the development or
redevelopment of the redevelopment project area.
(L) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan.
This means that the development occurred prior to the
adoption by the municipality of a comprehensive or
other community plan or that the plan was not followed
at the time of the area's development. This factor
must be documented by evidence of adverse or
incompatible land-use relationships, inadequate street
layout, improper subdivision, parcels of inadequate
shape and size to meet contemporary development
standards, or other evidence demonstrating an absence
of effective community planning.
(M) The total equalized assessed value of the
proposed redevelopment project area has declined for 3
of the last 5 calendar years prior to the year in which
the redevelopment project area is designated or is
increasing at an annual rate that is less than the
balance of the municipality for 3 of the last 5
calendar years for which information is available or
is increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published

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by the United States Department of Labor or successor
agency for 3 of the last 5 calendar years prior to the
year in which the redevelopment project area is
designated.
(2) If vacant, the sound growth of the redevelopment
project area is impaired by a combination of 2 or more of
the following factors, each of which is (i) present, with
that presence documented, to a meaningful extent so that a
municipality may reasonably find that the factor is
clearly present within the intent of the Act and (ii)
reasonably distributed throughout the vacant part of the
redevelopment project area to which it pertains:
(A) Obsolete platting of vacant land that results
in parcels of limited or narrow size or configurations
of parcels of irregular size or shape that would be
difficult to develop on a planned basis and in a manner
compatible with contemporary standards and
requirements, or platting that failed to create
rights-of-ways for streets or alleys or that created
inadequate right-of-way widths for streets, alleys, or
other public rights-of-way or that omitted easements
for public utilities.
(B) Diversity of ownership of parcels of vacant
land sufficient in number to retard or impede the
ability to assemble the land for development.
(C) Tax and special assessment delinquencies exist

SB1905 - 9 - LRB103 26712 AWJ 53075 b
or the property has been the subject of tax sales under
the Property Tax Code within the last 5 years.
(D) Deterioration of structures or site
improvements in neighboring areas adjacent to the
vacant land.
(E) The area has incurred Illinois Environmental
Protection Agency or United States Environmental
Protection Agency remediation costs for, or a study
conducted by an independent consultant recognized as
having expertise in environmental remediation has
determined a need for, the clean-up of hazardous
waste, hazardous substances, or underground storage
tanks required by State or federal law, provided that
the remediation costs constitute a material impediment
to the development or redevelopment of the
redevelopment project area.
(F) The total equalized assessed value of the
proposed redevelopment project area has declined for 3
of the last 5 calendar years prior to the year in which
the redevelopment project area is designated or is
increasing at an annual rate that is less than the
balance of the municipality for 3 of the last 5
calendar years for which information is available or
is increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published
by the United States Department of Labor or successor

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agency for 3 of the last 5 calendar years prior to the
year in which the redevelopment project area is
designated.
(3) If vacant, the sound growth of the redevelopment
project area is impaired by one of the following factors
that (i) is present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) is reasonably distributed throughout
the vacant part of the redevelopment project area to which
it pertains:
(A) The area consists of one or more unused
quarries, mines, or strip mine ponds.
(B) The area consists of unused rail yards, rail
tracks, or railroad rights-of-way.
(C) The area, prior to its designation, is subject
to (i) chronic flooding that adversely impacts on real
property in the area as certified by a registered
professional engineer or appropriate regulatory agency
or (ii) surface water that discharges from all or a
part of the area and contributes to flooding within
the same watershed, but only if the redevelopment
project provides for facilities or improvements to
contribute to the alleviation of all or part of the
flooding.
(D) The area consists of an unused or illegal

SB1905 - 11 - LRB103 26712 AWJ 53075 b
disposal site containing earth, stone, building
debris, or similar materials that were removed from
construction, demolition, excavation, or dredge sites.
(E) Prior to November 1, 1999, the area is not less
than 50 nor more than 100 acres and 75% of which is
vacant (notwithstanding that the area has been used
for commercial agricultural purposes within 5 years
prior to the designation of the redevelopment project
area), and the area meets at least one of the factors
itemized in paragraph (1) of this subsection, the area
has been designated as a town or village center by
ordinance or comprehensive plan adopted prior to
January 1, 1982, and the area has not been developed
for that designated purpose.
(F) The area qualified as a blighted improved area
immediately prior to becoming vacant, unless there has
been substantial private investment in the immediately
surrounding area.
(b) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "conservation area" shall have the meaning set forth
in this Section prior to that date.
On and after November 1, 1999, "conservation area" means
any improved area within the boundaries of a redevelopment
project area located within the territorial limits of the

SB1905 - 12 - LRB103 26712 AWJ 53075 b
municipality in which 50% or more of the structures in the area
have an age of 35 years or more. Such an area is not yet a
blighted area but because of a combination of 3 or more of the
following factors is detrimental to the public safety, health,
morals or welfare and such an area may become a blighted area:
(1) Dilapidation. An advanced state of disrepair or
neglect of necessary repairs to the primary structural
components of buildings or improvements in such a
combination that a documented building condition analysis
determines that major repair is required or the defects
are so serious and so extensive that the buildings must be
removed.
(2) Obsolescence. The condition or process of falling
into disuse. Structures have become ill-suited for the
original use.
(3) Deterioration. With respect to buildings, defects
including, but not limited to, major defects in the
secondary building components such as doors, windows,
porches, gutters and downspouts, and fascia. With respect
to surface improvements, that the condition of roadways,
alleys, curbs, gutters, sidewalks, off-street parking, and
surface storage areas evidence deterioration, including,
but not limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds protruding
through paved surfaces.
(4) Presence of structures below minimum code

SB1905 - 13 - LRB103 26712 AWJ 53075 b
standards. All structures that do not meet the standards
of zoning, subdivision, building, fire, and other
governmental codes applicable to property, but not
including housing and property maintenance codes.
(5) Illegal use of individual structures. The use of
structures in violation of applicable federal, State, or
local laws, exclusive of those applicable to the presence
of structures below minimum code standards.
(6) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that represent
an adverse influence on the area because of the frequency,
extent, or duration of the vacancies.
(7) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for light
or air circulation in spaces or rooms without windows, or
that require the removal of dust, odor, gas, smoke, or
other noxious airborne materials. Inadequate natural light
and ventilation means the absence or inadequacy of
skylights or windows for interior spaces or rooms and
improper window sizes and amounts by room area to window
area ratios. Inadequate sanitary facilities refers to the
absence or inadequacy of garbage storage and enclosure,
bathroom facilities, hot water and kitchens, and
structural inadequacies preventing ingress and egress to
and from all rooms and units within a building.
(8) Inadequate utilities. Underground and overhead

SB1905 - 14 - LRB103 26712 AWJ 53075 b
utilities such as storm sewers and storm drainage,
sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate.
Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the
redevelopment project area, (ii) deteriorated, antiquated,
obsolete, or in disrepair, or (iii) lacking within the
redevelopment project area.
(9) Excessive land coverage and overcrowding of
structures and community facilities. The over-intensive
use of property and the crowding of buildings and
accessory facilities onto a site. Examples of problem
conditions warranting the designation of an area as one
exhibiting excessive land coverage are: the presence of
buildings either improperly situated on parcels or located
on parcels of inadequate size and shape in relation to
present-day standards of development for health and safety
and the presence of multiple buildings on a single parcel.
For there to be a finding of excessive land coverage,
these parcels must exhibit one or more of the following
conditions: insufficient provision for light and air
within or around buildings, increased threat of spread of
fire due to the close proximity of buildings, lack of
adequate or proper access to a public right-of-way, lack
of reasonably required off-street parking, or inadequate
provision for loading and service.

SB1905 - 15 - LRB103 26712 AWJ 53075 b
(10) Deleterious land use or layout. The existence of
incompatible land-use relationships, buildings occupied by
inappropriate mixed-uses, or uses considered to be
noxious, offensive, or unsuitable for the surrounding
area.
(11) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption
by the municipality of a comprehensive or other community
plan or that the plan was not followed at the time of the
area's development. This factor must be documented by
evidence of adverse or incompatible land-use
relationships, inadequate street layout, improper
subdivision, parcels of inadequate shape and size to meet
contemporary development standards, or other evidence
demonstrating an absence of effective community planning.
(12) The area has incurred Illinois Environmental
Protection Agency or United States Environmental
Protection Agency remediation costs for, or a study
conducted by an independent consultant recognized as
having expertise in environmental remediation has
determined a need for, the clean-up of hazardous waste,
hazardous substances, or underground storage tanks
required by State or federal law, provided that the
remediation costs constitute a material impediment to the

SB1905 - 16 - LRB103 26712 AWJ 53075 b
development or redevelopment of the redevelopment project
area.
(13) The total equalized assessed value of the
proposed redevelopment project area has declined for 3 of
the last 5 calendar years for which information is
available or is increasing at an annual rate that is less
than the balance of the municipality for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published by
the United States Department of Labor or successor agency
for 3 of the last 5 calendar years for which information is
available.
(c) "Industrial park" means an area in a blighted or
conservation area suitable for use by any manufacturing,
industrial, research or transportation enterprise, of
facilities to include but not be limited to factories, mills,
processing plants, assembly plants, packing plants,
fabricating plants, industrial distribution centers,
warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or railroad
facilities.
(d) "Industrial park conservation area" means an area
within the boundaries of a redevelopment project area located
within the territorial limits of a municipality that is a
labor surplus municipality or within 1 1/2 miles of the

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territorial limits of a municipality that is a labor surplus
municipality if the area is annexed to the municipality; which
area is zoned as industrial no later than at the time the
municipality by ordinance designates the redevelopment project
area, and which area includes both vacant land suitable for
use as an industrial park and a blighted area or conservation
area contiguous to such vacant land.
(e) "Labor surplus municipality" means a municipality in
which, at any time during the 6 months before the municipality
by ordinance designates an industrial park conservation area,
the unemployment rate was over 6% and was also 100% or more of
the national average unemployment rate for that same time as
published in the United States Department of Labor Bureau of
Labor Statistics publication entitled "The Employment
Situation" or its successor publication. For the purpose of
this subsection, if unemployment rate statistics for the
municipality are not available, the unemployment rate in the
municipality shall be deemed to be the same as the
unemployment rate in the principal county in which the
municipality is located.
(f) "Municipality" shall mean a city, village,
incorporated town, or a township that is located in the
unincorporated portion of a county with 3 million or more
inhabitants, if the county adopted an ordinance that approved
the township's redevelopment plan.
(g) "Initial Sales Tax Amounts" means the amount of taxes

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paid under the Retailers' Occupation Tax Act, Use Tax Act,
Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located in a State Sales Tax Boundary
during the calendar year 1985.
(g-1) "Revised Initial Sales Tax Amounts" means the amount
of taxes paid under the Retailers' Occupation Tax Act, Use Tax
Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located within the State Sales Tax
Boundary revised pursuant to Section 11-74.4-8a(9) of this
Act.
(h) "Municipal Sales Tax Increment" means an amount equal
to the increase in the aggregate amount of taxes paid to a
municipality from the Local Government Tax Fund arising from
sales by retailers and servicemen within the redevelopment
project area or State Sales Tax Boundary, as the case may be,
for as long as the redevelopment project area or State Sales
Tax Boundary, as the case may be, exist over and above the
aggregate amount of taxes as certified by the Illinois
Department of Revenue and paid under the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act by retailers and servicemen, on transactions at places of
business located in the redevelopment project area or State

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Sales Tax Boundary, as the case may be, during the base year
which shall be the calendar year immediately prior to the year
in which the municipality adopted tax increment allocation
financing. For purposes of computing the aggregate amount of
such taxes for base years occurring prior to 1985, the
Department of Revenue shall determine the Initial Sales Tax
Amounts for such taxes and deduct therefrom an amount equal to
4% of the aggregate amount of taxes per year for each year the
base year is prior to 1985, but not to exceed a total deduction
of 12%. The amount so determined shall be known as the
"Adjusted Initial Sales Tax Amounts". For purposes of
determining the Municipal Sales Tax Increment, the Department
of Revenue shall for each period subtract from the amount paid
to the municipality from the Local Government Tax Fund arising
from sales by retailers and servicemen on transactions located
in the redevelopment project area or the State Sales Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts for the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act. For the State Fiscal Year 1989, this calculation shall be
made by utilizing the calendar year 1987 to determine the tax
amounts received. For the State Fiscal Year 1990, this
calculation shall be made by utilizing the period from January
1, 1988, until September 30, 1988, to determine the tax
amounts received from retailers and servicemen pursuant to the

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Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act, which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts, the
Adjusted Initial Sales Tax Amounts or the Revised Initial
Sales Tax Amounts as appropriate. For the State Fiscal Year
1991, this calculation shall be made by utilizing the period
from October 1, 1988, to June 30, 1989, to determine the tax
amounts received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or the Revised Initial
Sales Tax Amounts as appropriate. For every State Fiscal Year
thereafter, the applicable period shall be the 12 months
beginning July 1 and ending June 30 to determine the tax
amounts received which shall have deducted therefrom the
certified Initial Sales Tax Amounts, the Adjusted Initial
Sales Tax Amounts or the Revised Initial Sales Tax Amounts, as
the case may be.
(i) "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Sales Tax
Increment annually generated within a State Sales Tax
Boundary; (b) 60% of the amount in excess of $100,000 but not
exceeding $500,000 of State Sales Tax Increment annually
generated within a State Sales Tax Boundary; and (c) 40% of all
amounts in excess of $500,000 of State Sales Tax Increment

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annually generated within a State Sales Tax Boundary. If,
however, a municipality established a tax increment financing
district in a county with a population in excess of 3,000,000
before January 1, 1986, and the municipality entered into a
contract or issued bonds after January 1, 1986, but before
December 31, 1986, to finance redevelopment project costs
within a State Sales Tax Boundary, then the Net State Sales Tax
Increment means, for the fiscal years beginning July 1, 1990,
and July 1, 1991, 100% of the State Sales Tax Increment
annually generated within a State Sales Tax Boundary; and
notwithstanding any other provision of this Act, for those
fiscal years the Department of Revenue shall distribute to
those municipalities 100% of their Net State Sales Tax
Increment before any distribution to any other municipality
and regardless of whether or not those other municipalities
will receive 100% of their Net State Sales Tax Increment. For
Fiscal Year 1999, and every year thereafter until the year
2007, for any municipality that has not entered into a
contract or has not issued bonds prior to June 1, 1988 to
finance redevelopment project costs within a State Sales Tax
Boundary, the Net State Sales Tax Increment shall be
calculated as follows: By multiplying the Net State Sales Tax
Increment by 90% in the State Fiscal Year 1999; 80% in the
State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
in the State Fiscal Year 2002; 50% in the State Fiscal Year
2003; 40% in the State Fiscal Year 2004; 30% in the State

SB1905 - 22 - LRB103 26712 AWJ 53075 b
Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
the State Fiscal Year 2007. No payment shall be made for State
Fiscal Year 2008 and thereafter.
Municipalities that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991, or that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988,
shall continue to receive their proportional share of the
Illinois Tax Increment Fund distribution until the date on
which the redevelopment project is completed or terminated.
If, however, a municipality that issued bonds in connection
with a redevelopment project in a redevelopment project area
within the State Sales Tax Boundary prior to July 29, 1991
retires the bonds prior to June 30, 2007 or a municipality that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988
completes the contracts prior to June 30, 2007, then so long as
the redevelopment project is not completed or is not
terminated, the Net State Sales Tax Increment shall be
calculated, beginning on the date on which the bonds are
retired or the contracts are completed, as follows: By
multiplying the Net State Sales Tax Increment by 60% in the
State Fiscal Year 2002; 50% in the State Fiscal Year 2003; 40%
in the State Fiscal Year 2004; 30% in the State Fiscal Year
2005; 20% in the State Fiscal Year 2006; and 10% in the State

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Fiscal Year 2007. No payment shall be made for State Fiscal
Year 2008 and thereafter. Refunding of any bonds issued prior
to July 29, 1991, shall not alter the Net State Sales Tax
Increment.
(j) "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties located within the redevelopment
project area under Section 9-222 of the Public Utilities Act,
over and above the aggregate of such charges as certified by
the Department of Revenue and paid by owners and tenants,
other than residential customers, of properties within the
redevelopment project area during the base year, which shall
be the calendar year immediately prior to the year of the
adoption of the ordinance authorizing tax increment allocation
financing.
(k) "Net State Utility Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Utility Tax
Increment annually generated by a redevelopment project area;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of the State Utility Tax Increment annually generated
by a redevelopment project area; and (c) 40% of all amounts in
excess of $500,000 of State Utility Tax Increment annually
generated by a redevelopment project area. For the State
Fiscal Year 1999, and every year thereafter until the year
2007, for any municipality that has not entered into a

SB1905 - 24 - LRB103 26712 AWJ 53075 b
contract or has not issued bonds prior to June 1, 1988 to
finance redevelopment project costs within a redevelopment
project area, the Net State Utility Tax Increment shall be
calculated as follows: By multiplying the Net State Utility
Tax Increment by 90% in the State Fiscal Year 1999; 80% in the
State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
in the State Fiscal Year 2002; 50% in the State Fiscal Year
2003; 40% in the State Fiscal Year 2004; 30% in the State
Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
the State Fiscal Year 2007. No payment shall be made for the
State Fiscal Year 2008 and thereafter.
Municipalities that issue bonds in connection with the
redevelopment project during the period from June 1, 1988
until 3 years after the effective date of this Amendatory Act
of 1988 shall receive the Net State Utility Tax Increment,
subject to appropriation, for 15 State Fiscal Years after the
issuance of such bonds. For the 16th through the 20th State
Fiscal Years after issuance of the bonds, the Net State
Utility Tax Increment shall be calculated as follows: By
multiplying the Net State Utility Tax Increment by 90% in year
16; 80% in year 17; 70% in year 18; 60% in year 19; and 50% in
year 20. Refunding of any bonds issued prior to June 1, 1988,
shall not alter the revised Net State Utility Tax Increment
payments set forth above.
(l) "Obligations" mean bonds, loans, debentures, notes,
special certificates or other evidence of indebtedness issued

SB1905 - 25 - LRB103 26712 AWJ 53075 b
by the municipality to carry out a redevelopment project or to
refund outstanding obligations.
(m) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
derived from real property that has been acquired by a
municipality which according to the redevelopment project or
plan is to be used for a private use which taxing districts
would have received had a municipality not acquired the real
property and adopted tax increment allocation financing and
which would result from levies made after the time of the
adoption of tax increment allocation financing to the time the
current equalized value of real property in the redevelopment
project area exceeds the total initial equalized value of real
property in said area.
(n) "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs to reduce or
eliminate those conditions the existence of which qualified
the redevelopment project area as a "blighted area" or
"conservation area" or combination thereof or "industrial park
conservation area," and thereby to enhance the tax bases of
the taxing districts which extend into the redevelopment
project area, provided that, with respect to redevelopment
project areas described in subsections (p-1) and (p-2),
"redevelopment plan" means the comprehensive program of the
affected municipality for the development of qualifying

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transit facilities. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan
may be approved or amended that includes the development of
vacant land (i) with a golf course and related clubhouse and
other facilities or (ii) designated by federal, State, county,
or municipal government as public land for outdoor
recreational activities or for nature preserves and used for
that purpose within 5 years prior to the adoption of the
redevelopment plan. For the purpose of this subsection,
"recreational activities" is limited to mean camping and
hunting. Each redevelopment plan shall set forth in writing
the program to be undertaken to accomplish the objectives and
shall include but not be limited to:
(A) an itemized list of estimated redevelopment
project costs;
(B) evidence indicating that the redevelopment project
area on the whole has not been subject to growth and
development through investment by private enterprise,
provided that such evidence shall not be required for any
redevelopment project area located within a transit
facility improvement area established pursuant to Section
11-74.4-3.3;
(C) an assessment of any financial impact of the
redevelopment project area on or any increased demand for
services from any taxing district affected by the plan and
any program to address such financial impact or increased

SB1905 - 27 - LRB103 26712 AWJ 53075 b
demand;
(D) the sources of funds to pay costs;
(E) the nature and term of the obligations to be
issued;
(F) the most recent equalized assessed valuation of
the redevelopment project area;
(G) an estimate as to the equalized assessed valuation
after redevelopment and the general land uses to apply in
the redevelopment project area;
(H) a commitment to fair employment practices and an
affirmative action plan;
(I) if it concerns an industrial park conservation
area, the plan shall also include a general description of
any proposed developer, user and tenant of any property, a
description of the type, structure and general character
of the facilities to be developed, a description of the
type, class and number of new employees to be employed in
the operation of the facilities to be developed; and
(J) if property is to be annexed to the municipality,
the plan shall include the terms of the annexation
agreement.
The provisions of items (B) and (C) of this subsection (n)
shall not apply to a municipality that before March 14, 1994
(the effective date of Public Act 88-537) had fixed, either by
its corporate authorities or by a commission designated under
subsection (k) of Section 11-74.4-4, a time and place for a

SB1905 - 28 - LRB103 26712 AWJ 53075 b
public hearing as required by subsection (a) of Section
11-74.4-5. No redevelopment plan shall be adopted unless a
municipality complies with all of the following requirements:
(1) The municipality finds that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise
and would not reasonably be anticipated to be developed
without the adoption of the redevelopment plan, provided,
however, that such a finding shall not be required with
respect to any redevelopment project area located within a
transit facility improvement area established pursuant to
Section 11-74.4-3.3.
(2) The municipality finds that the redevelopment plan
and project conform to the comprehensive plan for the
development of the municipality as a whole, or, for
municipalities with a population of 100,000 or more,
regardless of when the redevelopment plan and project was
adopted, the redevelopment plan and project either: (i)
conforms to the strategic economic development or
redevelopment plan issued by the designated planning
authority of the municipality, or (ii) includes land uses
that have been approved by the planning commission of the
municipality.
(3) The redevelopment plan establishes the estimated
dates of completion of the redevelopment project and
retirement of obligations issued to finance redevelopment

SB1905 - 29 - LRB103 26712 AWJ 53075 b
project costs. Those dates may not be later than the dates
set forth under Section 11-74.4-3.5.
A municipality may by municipal ordinance amend an
existing redevelopment plan to conform to this paragraph
(3) as amended by Public Act 91-478, which municipal
ordinance may be adopted without further hearing or notice
and without complying with the procedures provided in this
Act pertaining to an amendment to or the initial approval
of a redevelopment plan and project and designation of a
redevelopment project area.
(3.5) The municipality finds, in the case of an
industrial park conservation area, also that the
municipality is a labor surplus municipality and that the
implementation of the redevelopment plan will reduce
unemployment, create new jobs and by the provision of new
facilities enhance the tax base of the taxing districts
that extend into the redevelopment project area.
(4) If any incremental revenues are being utilized
under Section 8(a)(1) or 8(a)(2) of this Act in
redevelopment project areas approved by ordinance after
January 1, 1986, the municipality finds: (a) that the
redevelopment project area would not reasonably be
developed without the use of such incremental revenues,
and (b) that such incremental revenues will be exclusively
utilized for the development of the redevelopment project
area.

SB1905 - 30 - LRB103 26712 AWJ 53075 b
(5) If: (a) the redevelopment plan will not result in
displacement of residents from 10 or more inhabited
residential units, and the municipality certifies in the
plan that such displacement will not result from the plan;
or (b) the redevelopment plan is for a redevelopment
project area or a qualifying transit facility located
within a transit facility improvement area established
pursuant to Section 11-74.4-3.3, and the applicable
project is subject to the process for evaluation of
environmental effects under the National Environmental
Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing
impact study need not be performed. If, however, the
redevelopment plan would result in the displacement of
residents from 10 or more inhabited residential units, or
if the redevelopment project area contains 75 or more
inhabited residential units and no certification is made,
then the municipality shall prepare, as part of the
separate feasibility report required by subsection (a) of
Section 11-74.4-5, a housing impact study.
Part I of the housing impact study shall include (i)
data as to whether the residential units are single family
or multi-family units, (ii) the number and type of rooms
within the units, if that information is available, (iii)
whether the units are inhabited or uninhabited, as
determined not less than 45 days before the date that the
ordinance or resolution required by subsection (a) of

SB1905 - 31 - LRB103 26712 AWJ 53075 b
Section 11-74.4-5 is passed, and (iv) data as to the
racial and ethnic composition of the residents in the
inhabited residential units. The data requirement as to
the racial and ethnic composition of the residents in the
inhabited residential units shall be deemed to be fully
satisfied by data from the most recent federal census.
Part II of the housing impact study shall identify the
inhabited residential units in the proposed redevelopment
project area that are to be or may be removed. If inhabited
residential units are to be removed, then the housing
impact study shall identify (i) the number and location of
those units that will or may be removed, (ii) the
municipality's plans for relocation assistance for those
residents in the proposed redevelopment project area whose
residences are to be removed, (iii) the availability of
replacement housing for those residents whose residences
are to be removed, and shall identify the type, location,
and cost of the housing, and (iv) the type and extent of
relocation assistance to be provided.
(6) On and after November 1, 1999, the housing impact
study required by paragraph (5) shall be incorporated in
the redevelopment plan for the redevelopment project area.
(7) On and after November 1, 1999, no redevelopment
plan shall be adopted, nor an existing plan amended, nor
shall residential housing that is occupied by households
of low-income and very low-income persons in currently

SB1905 - 32 - LRB103 26712 AWJ 53075 b
existing redevelopment project areas be removed after
November 1, 1999 unless the redevelopment plan provides,
with respect to inhabited housing units that are to be
removed for households of low-income and very low-income
persons, affordable housing and relocation assistance not
less than that which would be provided under the federal
Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 and the regulations under
that Act, including the eligibility criteria. Affordable
housing may be either existing or newly constructed
housing. For purposes of this paragraph (7), "low-income
households", "very low-income households", and "affordable
housing" have the meanings set forth in the Illinois
Affordable Housing Act. The municipality shall make a good
faith effort to ensure that this affordable housing is
located in or near the redevelopment project area within
the municipality.
(8) On and after November 1, 1999, if, after the
adoption of the redevelopment plan for the redevelopment
project area, any municipality desires to amend its
redevelopment plan to remove more inhabited residential
units than specified in its original redevelopment plan,
that change shall be made in accordance with the
procedures in subsection (c) of Section 11-74.4-5.
(9) For redevelopment project areas designated prior
to November 1, 1999, the redevelopment plan may be amended

SB1905 - 33 - LRB103 26712 AWJ 53075 b
without further joint review board meeting or hearing,
provided that the municipality shall give notice of any
such changes by mail to each affected taxing district and
registrant on the interested party registry, to authorize
the municipality to expend tax increment revenues for
redevelopment project costs defined by paragraphs (5) and
(7.5), subparagraphs (E) and (F) of paragraph (11), and
paragraph (11.5) of subsection (q) of Section 11-74.4-3,
so long as the changes do not increase the total estimated
redevelopment project costs set out in the redevelopment
plan by more than 5% after adjustment for inflation from
the date the plan was adopted.
(o) "Redevelopment project" means any public and private
development project in furtherance of the objectives of a
redevelopment plan. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan
may be approved or amended that includes the development of
vacant land (i) with a golf course and related clubhouse and
other facilities or (ii) designated by federal, State, county,
or municipal government as public land for outdoor
recreational activities or for nature preserves and used for
that purpose within 5 years prior to the adoption of the
redevelopment plan. For the purpose of this subsection,
"recreational activities" is limited to mean camping and
hunting.
(p) "Redevelopment project area" means an area designated

SB1905 - 34 - LRB103 26712 AWJ 53075 b
by the municipality, which is not less in the aggregate than 1
1/2 acres and in respect to which the municipality has made a
finding that there exist conditions which cause the area to be
classified as an industrial park conservation area or a
blighted area or a conservation area, or a combination of both
blighted areas and conservation areas.
(p-1) Notwithstanding any provision of this Act to the
contrary, on and after August 25, 2009 (the effective date of
Public Act 96-680), a redevelopment project area may include
areas within a one-half mile radius of an existing or proposed
Regional Transportation Authority Suburban Transit Access
Route (STAR Line) station without a finding that the area is
classified as an industrial park conservation area, a blighted
area, a conservation area, or a combination thereof, but only
if the municipality receives unanimous consent from the joint
review board created to review the proposed redevelopment
project area.
(p-2) Notwithstanding any provision of this Act to the
contrary, on and after the effective date of this amendatory
Act of the 99th General Assembly, a redevelopment project area
may include areas within a transit facility improvement area
that has been established pursuant to Section 11-74.4-3.3
without a finding that the area is classified as an industrial
park conservation area, a blighted area, a conservation area,
or any combination thereof.
(q) "Redevelopment project costs", except for

SB1905 - 35 - LRB103 26712 AWJ 53075 b
redevelopment project areas created pursuant to subsection
(p-1) or (p-2), means and includes the sum total of all
reasonable or necessary costs incurred or estimated to be
incurred, and any such costs incidental to a redevelopment
plan and a redevelopment project. Such costs include, without
limitation, the following:
(1) Costs of studies, surveys, development of plans,
and specifications, implementation and administration of
the redevelopment plan including but not limited to staff
and professional service costs for architectural,
engineering, legal, financial, planning or other services,
provided however that no charges for professional services
may be based on a percentage of the tax increment
collected; except that on and after November 1, 1999 (the
effective date of Public Act 91-478), no contracts for
professional services, excluding architectural and
engineering services, may be entered into if the terms of
the contract extend beyond a period of 3 years. In
addition, "redevelopment project costs" shall not include
lobbying expenses. After consultation with the
municipality, each tax increment consultant or advisor to
a municipality that plans to designate or has designated a
redevelopment project area shall inform the municipality
in writing of any contracts that the consultant or advisor
has entered into with entities or individuals that have
received, or are receiving, payments financed by tax

SB1905 - 36 - LRB103 26712 AWJ 53075 b
increment revenues produced by the redevelopment project
area with respect to which the consultant or advisor has
performed, or will be performing, service for the
municipality. This requirement shall be satisfied by the
consultant or advisor before the commencement of services
for the municipality and thereafter whenever any other
contracts with those individuals or entities are executed
by the consultant or advisor;
(1.5) After July 1, 1999, annual administrative costs
shall not include general overhead or administrative costs
of the municipality that would still have been incurred by
the municipality if the municipality had not designated a
redevelopment project area or approved a redevelopment
plan;
(1.6) The cost of marketing sites within the
redevelopment project area to prospective businesses,
developers, and investors;
(2) Property assembly costs, including but not limited
to acquisition of land and other property, real or
personal, or rights or interests therein, demolition of
buildings, site preparation, site improvements that serve
as an engineered barrier addressing ground level or below
ground environmental contamination, including, but not
limited to parking lots and other concrete or asphalt
barriers, and the clearing and grading of land;
(3) Costs of rehabilitation, reconstruction or repair

SB1905 - 37 - LRB103 26712 AWJ 53075 b
or remodeling of existing public or private buildings,
fixtures, and leasehold improvements; and the cost of
replacing an existing public building if pursuant to the
implementation of a redevelopment project the existing
public building is to be demolished to use the site for
private investment or devoted to a different use requiring
private investment; including any direct or indirect costs
relating to Green Globes or LEED certified construction
elements or construction elements with an equivalent
certification;
(3.5) Costs of demolishing buildings, site
preparation, or site improvements of a dilapidated or
vacant parcel zoned for residential use or costs of
reconstruction, repair, remodeling, or new construction of
a single-family residence on a dilapidated or vacant
parcel zoned for residential use;
(4) Costs of the construction of public works or
improvements, including any direct or indirect costs
relating to Green Globes or LEED certified construction
elements or construction elements with an equivalent
certification, except that on and after November 1, 1999,
redevelopment project costs shall not include the cost of
constructing a new municipal public building principally
used to provide offices, storage space, or conference
facilities or vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel

SB1905 - 38 - LRB103 26712 AWJ 53075 b
and that is not intended to replace an existing public
building as provided under paragraph (3) of subsection (q)
of Section 11-74.4-3 unless either (i) the construction of
the new municipal building implements a redevelopment
project that was included in a redevelopment plan that was
adopted by the municipality prior to November 1, 1999,
(ii) the municipality makes a reasonable determination in
the redevelopment plan, supported by information that
provides the basis for that determination, that the new
municipal building is required to meet an increase in the
need for public safety purposes anticipated to result from
the implementation of the redevelopment plan, or (iii) the
new municipal public building is for the storage,
maintenance, or repair of transit vehicles and is located
in a transit facility improvement area that has been
established pursuant to Section 11-74.4-3.3;
(5) Costs of job training and retraining projects,
including the cost of "welfare to work" programs
implemented by businesses located within the redevelopment
project area;
(6) Financing costs, including but not limited to all
necessary and incidental expenses related to the issuance
of obligations and which may include payment of interest
on any obligations issued hereunder including interest
accruing during the estimated period of construction of
any redevelopment project for which such obligations are

SB1905 - 39 - LRB103 26712 AWJ 53075 b
issued and for not exceeding 36 months thereafter and
including reasonable reserves related thereto;
(7) To the extent the municipality by written
agreement accepts and approves the same, all or a portion
of a taxing district's capital costs resulting from the
redevelopment project necessarily incurred or to be
incurred within a taxing district in furtherance of the
objectives of the redevelopment plan and project;
(7.5) For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the
number of tax-increment-financing assisted housing units)
on or after November 1, 1999, an elementary, secondary, or
unit school district's increased costs attributable to
assisted housing units located within the redevelopment
project area for which the developer or redeveloper
receives financial assistance through an agreement with
the municipality or because the municipality incurs the
cost of necessary infrastructure improvements within the
boundaries of the assisted housing sites necessary for the
completion of that housing as authorized by this Act, and
which costs shall be paid by the municipality from the
Special Tax Allocation Fund when the tax increment revenue
is received as a result of the assisted housing units and
shall be calculated annually as follows:
(A) for foundation districts, excluding any school
district in a municipality with a population in excess

SB1905 - 40 - LRB103 26712 AWJ 53075 b
of 1,000,000, by multiplying the district's increase
in attendance resulting from the net increase in new
students enrolled in that school district who reside
in housing units within the redevelopment project area
that have received financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary
infrastructure improvements within the boundaries of
the housing sites necessary for the completion of that
housing as authorized by this Act since the
designation of the redevelopment project area by the
most recently available per capita tuition cost as
defined in Section 10-20.12a of the School Code less
any increase in general State aid as defined in
Section 18-8.05 of the School Code or evidence-based
funding as defined in Section 18-8.15 of the School
Code attributable to these added new students subject
to the following annual limitations:
(i) for unit school districts with a district
average 1995-96 Per Capita Tuition Charge of less
than $5,900, no more than 25% of the total amount
of property tax increment revenue produced by
those housing units that have received tax
increment finance assistance under this Act;
(ii) for elementary school districts with a
district average 1995-96 Per Capita Tuition Charge

SB1905 - 41 - LRB103 26712 AWJ 53075 b
of less than $5,900, no more than 17% of the total
amount of property tax increment revenue produced
by those housing units that have received tax
increment finance assistance under this Act; and
(iii) for secondary school districts with a
district average 1995-96 Per Capita Tuition Charge
of less than $5,900, no more than 8% of the total
amount of property tax increment revenue produced
by those housing units that have received tax
increment finance assistance under this Act.
(B) For alternate method districts, flat grant
districts, and foundation districts with a district
average 1995-96 Per Capita Tuition Charge equal to or
more than $5,900, excluding any school district with a
population in excess of 1,000,000, by multiplying the
district's increase in attendance resulting from the
net increase in new students enrolled in that school
district who reside in housing units within the
redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the
cost of necessary infrastructure improvements within
the boundaries of the housing sites necessary for the
completion of that housing as authorized by this Act
since the designation of the redevelopment project
area by the most recently available per capita tuition

SB1905 - 42 - LRB103 26712 AWJ 53075 b
cost as defined in Section 10-20.12a of the School
Code less any increase in general state aid as defined
in Section 18-8.05 of the School Code or
evidence-based funding as defined in Section 18-8.15
of the School Code attributable to these added new
students subject to the following annual limitations:
(i) for unit school districts, no more than
40% of the total amount of property tax increment
revenue produced by those housing units that have
received tax increment finance assistance under
this Act;
(ii) for elementary school districts, no more
than 27% of the total amount of property tax
increment revenue produced by those housing units
that have received tax increment finance
assistance under this Act; and
(iii) for secondary school districts, no more
than 13% of the total amount of property tax
increment revenue produced by those housing units
that have received tax increment finance
assistance under this Act.
(C) For any school district in a municipality with
a population in excess of 1,000,000, the following
restrictions shall apply to the reimbursement of
increased costs under this paragraph (7.5):
(i) no increased costs shall be reimbursed

SB1905 - 43 - LRB103 26712 AWJ 53075 b
unless the school district certifies that each of
the schools affected by the assisted housing
project is at or over its student capacity;
(ii) the amount reimbursable shall be reduced
by the value of any land donated to the school
district by the municipality or developer, and by
the value of any physical improvements made to the
schools by the municipality or developer; and
(iii) the amount reimbursed may not affect
amounts otherwise obligated by the terms of any
bonds, notes, or other funding instruments, or the
terms of any redevelopment agreement.
Any school district seeking payment under this
paragraph (7.5) shall, after July 1 and before
September 30 of each year, provide the municipality
with reasonable evidence to support its claim for
reimbursement before the municipality shall be
required to approve or make the payment to the school
district. If the school district fails to provide the
information during this period in any year, it shall
forfeit any claim to reimbursement for that year.
School districts may adopt a resolution waiving the
right to all or a portion of the reimbursement
otherwise required by this paragraph (7.5). By
acceptance of this reimbursement the school district
waives the right to directly or indirectly set aside,

SB1905 - 44 - LRB103 26712 AWJ 53075 b
modify, or contest in any manner the establishment of
the redevelopment project area or projects;
(7.7) For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the
number of tax-increment-financing assisted housing units)
on or after January 1, 2005 (the effective date of Public
Act 93-961), a public library district's increased costs
attributable to assisted housing units located within the
redevelopment project area for which the developer or
redeveloper receives financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary infrastructure
improvements within the boundaries of the assisted housing
sites necessary for the completion of that housing as
authorized by this Act shall be paid to the library
district by the municipality from the Special Tax
Allocation Fund when the tax increment revenue is received
as a result of the assisted housing units. This paragraph
(7.7) applies only if (i) the library district is located
in a county that is subject to the Property Tax Extension
Limitation Law or (ii) the library district is not located
in a county that is subject to the Property Tax Extension
Limitation Law but the district is prohibited by any other
law from increasing its tax levy rate without a prior
voter referendum.
The amount paid to a library district under this

SB1905 - 45 - LRB103 26712 AWJ 53075 b
paragraph (7.7) shall be calculated by multiplying (i) the
net increase in the number of persons eligible to obtain a
library card in that district who reside in housing units
within the redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the cost
of necessary infrastructure improvements within the
boundaries of the housing sites necessary for the
completion of that housing as authorized by this Act since
the designation of the redevelopment project area by (ii)
the per-patron cost of providing library services so long
as it does not exceed $120. The per-patron cost shall be
the Total Operating Expenditures Per Capita for the
library in the previous fiscal year. The municipality may
deduct from the amount that it must pay to a library
district under this paragraph any amount that it has
voluntarily paid to the library district from the tax
increment revenue. The amount paid to a library district
under this paragraph (7.7) shall be no more than 2% of the
amount produced by the assisted housing units and
deposited into the Special Tax Allocation Fund.
A library district is not eligible for any payment
under this paragraph (7.7) unless the library district has
experienced an increase in the number of patrons from the
municipality that created the tax-increment-financing
district since the designation of the redevelopment

SB1905 - 46 - LRB103 26712 AWJ 53075 b
project area.
Any library district seeking payment under this
paragraph (7.7) shall, after July 1 and before September
30 of each year, provide the municipality with convincing
evidence to support its claim for reimbursement before the
municipality shall be required to approve or make the
payment to the library district. If the library district
fails to provide the information during this period in any
year, it shall forfeit any claim to reimbursement for that
year. Library districts may adopt a resolution waiving the
right to all or a portion of the reimbursement otherwise
required by this paragraph (7.7). By acceptance of such
reimbursement, the library district shall forfeit any
right to directly or indirectly set aside, modify, or
contest in any manner whatsoever the establishment of the
redevelopment project area or projects;
(8) Relocation costs to the extent that a municipality
determines that relocation costs shall be paid or is
required to make payment of relocation costs by federal or
State law or in order to satisfy subparagraph (7) of
subsection (n);
(9) Payment in lieu of taxes;
(10) Costs of job training, retraining, advanced
vocational education or career education, including but
not limited to courses in occupational, semi-technical or
technical fields leading directly to employment, incurred

SB1905 - 47 - LRB103 26712 AWJ 53075 b
by one or more taxing districts, provided that such costs
(i) are related to the establishment and maintenance of
additional job training, advanced vocational education or
career education programs for persons employed or to be
employed by employers located in a redevelopment project
area; and (ii) when incurred by a taxing district or
taxing districts other than the municipality, are set
forth in a written agreement by or among the municipality
and the taxing district or taxing districts, which
agreement describes the program to be undertaken,
including but not limited to the number of employees to be
trained, a description of the training and services to be
provided, the number and type of positions available or to
be available, itemized costs of the program and sources of
funds to pay for the same, and the term of the agreement.
Such costs include, specifically, the payment by community
college districts of costs pursuant to Sections 3-37,
3-38, 3-40 and 3-40.1 of the Public Community College Act
and by school districts of costs pursuant to Sections
10-22.20a and 10-23.3a of the School Code;
(11) Interest cost incurred by a redeveloper related
to the construction, renovation or rehabilitation of a
redevelopment project provided that:
(A) such costs are to be paid directly from the
special tax allocation fund established pursuant to
this Act;

SB1905 - 48 - LRB103 26712 AWJ 53075 b
(B) such payments in any one year may not exceed
30% of the annual interest costs incurred by the
redeveloper with regard to the redevelopment project
during that year;
(C) if there are not sufficient funds available in
the special tax allocation fund to make the payment
pursuant to this paragraph (11) then the amounts so
due shall accrue and be payable when sufficient funds
are available in the special tax allocation fund;
(D) the total of such interest payments paid
pursuant to this Act may not exceed 30% of the total
(i) cost paid or incurred by the redeveloper for the
redevelopment project plus (ii) redevelopment project
costs excluding any property assembly costs and any
relocation costs incurred by a municipality pursuant
to this Act;
(E) the cost limits set forth in subparagraphs (B)
and (D) of paragraph (11) shall be modified for the
financing of rehabilitated or new housing units for
low-income households and very low-income households,
as defined in Section 3 of the Illinois Affordable
Housing Act. The percentage of 75% shall be
substituted for 30% in subparagraphs (B) and (D) of
paragraph (11); and
(F) instead of the eligible costs provided by
subparagraphs (B) and (D) of paragraph (11), as

SB1905 - 49 - LRB103 26712 AWJ 53075 b
modified by this subparagraph, and notwithstanding any
other provisions of this Act to the contrary, the
municipality may pay from tax increment revenues up to
50% of the cost of construction of new housing units to
be occupied by low-income households and very
low-income households as defined in Section 3 of the
Illinois Affordable Housing Act. The cost of
construction of those units may be derived from the
proceeds of bonds issued by the municipality under
this Act or other constitutional or statutory
authority or from other sources of municipal revenue
that may be reimbursed from tax increment revenues or
the proceeds of bonds issued to finance the
construction of that housing.
The eligible costs provided under this
subparagraph (F) of paragraph (11) shall be an
eligible cost for the construction, renovation, and
rehabilitation of all low and very low-income housing
units, as defined in Section 3 of the Illinois
Affordable Housing Act, within the redevelopment
project area. If the low and very low-income units are
part of a residential redevelopment project that
includes units not affordable to low and very
low-income households, only the low and very
low-income units shall be eligible for benefits under
this subparagraph (F) of paragraph (11). The standards

SB1905 - 50 - LRB103 26712 AWJ 53075 b
for maintaining the occupancy by low-income households
and very low-income households, as defined in Section
3 of the Illinois Affordable Housing Act, of those
units constructed with eligible costs made available
under the provisions of this subparagraph (F) of
paragraph (11) shall be established by guidelines
adopted by the municipality. The responsibility for
annually documenting the initial occupancy of the
units by low-income households and very low-income
households, as defined in Section 3 of the Illinois
Affordable Housing Act, shall be that of the then
current owner of the property. For ownership units,
the guidelines will provide, at a minimum, for a
reasonable recapture of funds, or other appropriate
methods designed to preserve the original
affordability of the ownership units. For rental
units, the guidelines will provide, at a minimum, for
the affordability of rent to low and very low-income
households. As units become available, they shall be
rented to income-eligible tenants. The municipality
may modify these guidelines from time to time; the
guidelines, however, shall be in effect for as long as
tax increment revenue is being used to pay for costs
associated with the units or for the retirement of
bonds issued to finance the units or for the life of
the redevelopment project area, whichever is later;

SB1905 - 51 - LRB103 26712 AWJ 53075 b
(11.5) If the redevelopment project area is located
within a municipality with a population of more than
100,000, the cost of day care services for children of
employees from low-income families working for businesses
located within the redevelopment project area and all or a
portion of the cost of operation of day care centers
established by redevelopment project area businesses to
serve employees from low-income families working in
businesses located in the redevelopment project area. For
the purposes of this paragraph, "low-income families"
means families whose annual income does not exceed 80% of
the municipal, county, or regional median income, adjusted
for family size, as the annual income and municipal,
county, or regional median income are determined from time
to time by the United States Department of Housing and
Urban Development.
(12) Costs relating to the development of urban
agricultural areas under Division 15.2 of the Illinois
Municipal Code.
Unless explicitly stated herein the cost of construction
of new privately-owned buildings shall not be an eligible
redevelopment project cost.
After November 1, 1999 (the effective date of Public Act
91-478), none of the redevelopment project costs enumerated in
this subsection shall be eligible redevelopment project costs
if those costs would provide direct financial support to a

SB1905 - 52 - LRB103 26712 AWJ 53075 b
retail entity initiating operations in the redevelopment
project area while terminating operations at another Illinois
location within 10 miles of the redevelopment project area but
outside the boundaries of the redevelopment project area
municipality. For purposes of this paragraph, termination
means a closing of a retail operation that is directly related
to the opening of the same operation or like retail entity
owned or operated by more than 50% of the original ownership in
a redevelopment project area, but it does not mean closing an
operation for reasons beyond the control of the retail entity,
as documented by the retail entity, subject to a reasonable
finding by the municipality that the current location
contained inadequate space, had become economically obsolete,
or was no longer a viable location for the retailer or
serviceman.
No cost shall be a redevelopment project cost in a
redevelopment project area if used to demolish, remove, or
substantially modify a historic resource, after August 26,
2008 (the effective date of Public Act 95-934), unless no
prudent and feasible alternative exists. "Historic resource"
for the purpose of this paragraph means (i) a place or
structure that is included or eligible for inclusion on the
National Register of Historic Places or (ii) a contributing
structure in a district on the National Register of Historic
Places. This paragraph does not apply to a place or structure
for which demolition, removal, or modification is subject to

SB1905 - 53 - LRB103 26712 AWJ 53075 b
review by the preservation agency of a Certified Local
Government designated as such by the National Park Service of
the United States Department of the Interior.
If a special service area has been established pursuant to
the Special Service Area Tax Act or Special Service Area Tax
Law, then any tax increment revenues derived from the tax
imposed pursuant to the Special Service Area Tax Act or
Special Service Area Tax Law may be used within the
redevelopment project area for the purposes permitted by that
Act or Law as well as the purposes permitted by this Act.
(q-1) For redevelopment project areas created pursuant to
subsection (p-1), redevelopment project costs are limited to
those costs in paragraph (q) that are related to the existing
or proposed Regional Transportation Authority Suburban Transit
Access Route (STAR Line) station.
(q-2) For a transit facility improvement area established
prior to, on, or after the effective date of this amendatory
Act of the 102nd General Assembly: (i) "redevelopment project
costs" means those costs described in subsection (q) that are
related to the construction, reconstruction, rehabilitation,
remodeling, or repair of any existing or proposed transit
facility, whether that facility is located within or outside
the boundaries of a redevelopment project area established
within that transit facility improvement area (and, to the
extent a redevelopment project cost is described in subsection
(q) as incurred or estimated to be incurred with respect to a

SB1905 - 54 - LRB103 26712 AWJ 53075 b
redevelopment project area, then it shall apply with respect
to such transit facility improvement area); and (ii) the
provisions of Section 11-74.4-8 regarding tax increment
allocation financing for a redevelopment project area located
in a transit facility improvement area shall apply only to the
lots, blocks, tracts and parcels of real property that are
located within the boundaries of that redevelopment project
area and not to the lots, blocks, tracts, and parcels of real
property that are located outside the boundaries of that
redevelopment project area.
(r) "State Sales Tax Boundary" means the redevelopment
project area or the amended redevelopment project area
boundaries which are determined pursuant to subsection (9) of
Section 11-74.4-8a of this Act. The Department of Revenue
shall certify pursuant to subsection (9) of Section 11-74.4-8a
the appropriate boundaries eligible for the determination of
State Sales Tax Increment.
(s) "State Sales Tax Increment" means an amount equal to
the increase in the aggregate amount of taxes paid by
retailers and servicemen, other than retailers and servicemen
subject to the Public Utilities Act, on transactions at places
of business located within a State Sales Tax Boundary pursuant
to the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act,
except such portion of such increase that is paid into the
State and Local Sales Tax Reform Fund, the Local Government

SB1905 - 55 - LRB103 26712 AWJ 53075 b
Distributive Fund, the Local Government Tax Fund and the
County and Mass Transit District Fund, for as long as State
participation exists, over and above the Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts for such taxes as certified by the
Department of Revenue and paid under those Acts by retailers
and servicemen on transactions at places of business located
within the State Sales Tax Boundary during the base year which
shall be the calendar year immediately prior to the year in
which the municipality adopted tax increment allocation
financing, less 3.0% of such amounts generated under the
Retailers' Occupation Tax Act, Use Tax Act and Service Use Tax
Act and the Service Occupation Tax Act, which sum shall be
appropriated to the Department of Revenue to cover its costs
of administering and enforcing this Section. For purposes of
computing the aggregate amount of such taxes for base years
occurring prior to 1985, the Department of Revenue shall
compute the Initial Sales Tax Amount for such taxes and deduct
therefrom an amount equal to 4% of the aggregate amount of
taxes per year for each year the base year is prior to 1985,
but not to exceed a total deduction of 12%. The amount so
determined shall be known as the "Adjusted Initial Sales Tax
Amount". For purposes of determining the State Sales Tax
Increment the Department of Revenue shall for each period
subtract from the tax amounts received from retailers and
servicemen on transactions located in the State Sales Tax

SB1905 - 56 - LRB103 26712 AWJ 53075 b
Boundary, the certified Initial Sales Tax Amounts, Adjusted
Initial Sales Tax Amounts or Revised Initial Sales Tax Amounts
for the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act and the Service Occupation Tax Act. For the
State Fiscal Year 1989 this calculation shall be made by
utilizing the calendar year 1987 to determine the tax amounts
received. For the State Fiscal Year 1990, this calculation
shall be made by utilizing the period from January 1, 1988,
until September 30, 1988, to determine the tax amounts
received from retailers and servicemen, which shall have
deducted therefrom nine-twelfths of the certified Initial
Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts as appropriate. For the
State Fiscal Year 1991, this calculation shall be made by
utilizing the period from October 1, 1988, until June 30,
1989, to determine the tax amounts received from retailers and
servicemen, which shall have deducted therefrom nine-twelfths
of the certified Initial State Sales Tax Amounts, Adjusted
Initial Sales Tax Amounts or the Revised Initial Sales Tax
Amounts as appropriate. For every State Fiscal Year
thereafter, the applicable period shall be the 12 months
beginning July 1 and ending on June 30, to determine the tax
amounts received which shall have deducted therefrom the
certified Initial Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts.
Municipalities intending to receive a distribution of State

SB1905 - 57 - LRB103 26712 AWJ 53075 b
Sales Tax Increment must report a list of retailers to the
Department of Revenue by October 31, 1988 and by July 31, of
each year thereafter.
(t) "Taxing districts" means counties, townships, cities
and incorporated towns and villages, school, road, park,
sanitary, mosquito abatement, forest preserve, public health,
fire protection, river conservancy, tuberculosis sanitarium
and any other municipal corporations or districts with the
power to levy taxes.
(u) "Taxing districts' capital costs" means those costs of
taxing districts for capital improvements that are found by
the municipal corporate authorities to be necessary and
directly result from the redevelopment project.
(v) As used in subsection (a) of Section 11-74.4-3 of this
Act, "vacant land" means any parcel or combination of parcels
of real property without industrial, commercial, and
residential buildings which has not been used for commercial
agricultural purposes within 5 years prior to the designation
of the redevelopment project area, unless the parcel is
included in an industrial park conservation area or the parcel
has been subdivided; provided that if the parcel was part of a
larger tract that has been divided into 3 or more smaller
tracts that were accepted for recording during the period from
1950 to 1990, then the parcel shall be deemed to have been
subdivided, and all proceedings and actions of the
municipality taken in that connection with respect to any

SB1905 - 58 - LRB103 26712 AWJ 53075 b
previously approved or designated redevelopment project area
or amended redevelopment project area are hereby validated and
hereby declared to be legally sufficient for all purposes of
this Act. For purposes of this Section and only for land
subject to the subdivision requirements of the Plat Act, land
is subdivided when the original plat of the proposed
Redevelopment Project Area or relevant portion thereof has
been properly certified, acknowledged, approved, and recorded
or filed in accordance with the Plat Act and a preliminary
plat, if any, for any subsequent phases of the proposed
Redevelopment Project Area or relevant portion thereof has
been properly approved and filed in accordance with the
applicable ordinance of the municipality.
(w) "Annual Total Increment" means the sum of each
municipality's annual Net Sales Tax Increment and each
municipality's annual Net Utility Tax Increment. The ratio of
the Annual Total Increment of each municipality to the Annual
Total Increment for all municipalities, as most recently
calculated by the Department, shall determine the proportional
shares of the Illinois Tax Increment Fund to be distributed to
each municipality.
(x) "LEED certified" means any certification level of
construction elements by a qualified Leadership in Energy and
Environmental Design Accredited Professional as determined by
the U.S. Green Building Council.
(y) "Green Globes certified" means any certification level

SB1905 - 59 - LRB103 26712 AWJ 53075 b
of construction elements by a qualified Green Globes
Professional as determined by the Green Building Initiative.
(Source: P.A. 102-627, eff. 8-27-21.)