Transcript Slide 1

Building for Success:
A Legislative Perspective on
Illinois’ Comprehensive
Housing Plan
Senator Iris Martinez Presentation
MPC Breaking New Ground
Roundtable
March 14, 2005
Looking Back
• Local Planning
Technical Assistance
Act
• Illinois Affordable
Housing Tax Credit
Illinois Affordable Housing Shortage 2004
Local Planning Technical Assistance
Act (Public Act 92-0768)
• Target
– Local government
– Planning agencies
• Strategy
– Local Planning Fund
– Provide technical assistance -- such as model
ordinances, program examples, manuals -- to
communities writing comprehensive plans. .
– Give competitive edge on state resources to towns
with comp plans linking housing, jobs, transportation
• The Update: Unfunded and Not Utilized
Illinois Affordable
Housing Tax Credit
(IAHTC)
• Target
– Private Investors
– Developers
– Employers
• Strategy
$.50 tax credit on income tax liability for every
$1 in cash, land, or property donated for
affordable housing
The State provides $13 million in annual tax
revenue, stimulate private sector investment
worth a total of $26 million per year through
2006.
$4 million of the $26 million has been allocated
for EAH programs for households earning
below 120% AMI.
The Update: Time to Renew!
Recent Legislation
• SB 2329, The Federally Subsidized Housing
Preservation Act
• HB 2246, Housing Opportunity Tax Incentive Act
• HB 625, Affordable Housing and Planning
Appeals Act
Federally Subsidized Housing
Preservation Act
• Affects the sales of federally-insured buildings;
project-based Section 8 contracts
• Protects residents from displacement and
major rent increases by providing for
– repayment of IHDA-financed mortgages
– needed time extensions
– advance notification to tenants
– chance for Tenant Association to purchase their
building
Federally Subsidized Housing
Preservation Act
• It is important to expand this law:
– 30,000 project-based Section 8 are at risk of loss in the next 5 years.
– The first Low-Income Housing Tax Credit properties will reach the end of
their 15-year use restrictions.
– New affordable multifamily units cost approaching $175,000
• Proposed amendment:
–
–
–
–
Cover the right properties
Improve the state notice requirement
Use the correct triggers
Allow preservation partnerships
• The Federally Subsidized Housing Preservation Act has helped
several tenant associations to purchase their buildings,
including Lakeview Towers (500 tenants) at 4550 N. Clarendon,
Chicago, October 2001.
The
Housing
Opportunity
Tax
Incentive
Act
(Illustration:
Qualified
Townships in
Lake County)
Housing Opportunity Tax Incentive Act
(HOTIA)
• Target
– Families using Housing Choice Vouchers (HCVs)
– Property Owners
– Opportunity Areas
• Strategy
– Promotes a better integration of HCVs in areas where there are
jobs, but where workforce has trouble finding affordable homes.
– Defining opportunity areas
• The Hook
– Meaningful incentive to reach owners currently uninvolved in this
program.
– Reframes the HCV as a tool for promoting workforce housing.
Affordable Housing
and Planning Appeals
Act (AHPAA)
• Affects communities with more than
1000 people and less than10% of their
housing stock deemed affordable (for
owners earning under 80% AMI and
renters earning under 60% AMI)
• IHDA produced list of 49 non-exempt
municipalities that must adopt an
affordable housing plan by April 1,
2005
• Down the road, non-exempt
communities who don’t produce such
plans could have local denials of
affordable housing overturned by State
Appeals Board
Looking Forward
• HB0603
Extension of Illinois
Affordable Housing Tax
Credit
• HB0490/SB0075
Rental Housing Support
Program Act
• SB167
Illinois Human Rights Act
Source of Income
Amendment
• HB 3767
Location Matters
• Codify Executive Order
and Enact Comprehensive
Housing Plan
Extend IL Affordable Housing Tax Credit
• From 2001-present
– 92 developments
funded
– 6,248 affordable homes
developed
– $112,063,250 resources
leveraged
Rental Housing
Support Program Act
• By implementing a modest
county recordation fee, this
legislation would create
$30,000 annually for:
– appropriate nonprofit and
public sector entities to
provide new development
and rental subsidies
– ensuring rental affordability
for over 4,000 families
living at below 30% AMI,
equivalent to $19,000
statewide.
Rental Housing Support Program Act
Affordable Housing in Illinois
700
600
Dollar
500
400
300
200
100
0
Weekly earning needed to afford fair market housing
Minimum w age w eekly earning
• Almost half of Illinois renters are unable to afford a 2-bedroom
apartment at the state’s average fair market rate of $823.
Illinois Human Rights Act
Source of Income Amendment
• To prevent discrimination in residential real estate
transactions against people with legal sources of income
• Owners/managers would still able to use same
legitimate criteria in tenant-screening , but could not
categorically refuse to rent to recipients of any form of
legal income.
• In Illinois, over 400,000 households rely heavily on some
form of non-wage housing, including rent subsidies, SSI,
SSD, TANF, child support, etc.
Location Matters
•
Provides state economic development
incentive via DCEO to employers supporting
the housing affordability and/or public transit
accessibility of their workforce
•
Applicants provide DCEO with information
about the business location, including:
– Affordable housing
– Accessible and convenient public transit
– Existing infrastructure
•
Those not in “location efficient” sites are
encouraged to provide DCEO a plan to
increase housing and/or transportation
options, via such programs as:
– Employer-assisted housing plan
– Shuttle services, pre-tax transit cards,
carpooling assistance
Location Matters
• Where housing is less expensive,
jobs and other opportunities are
scarce.
• Currently, Illinois ranks 5th for the
longest commute times in the nation.
• Examples
– Boeing and Abbott Labs are
choosing areas with public transit
options
– Bloomington’s Wheels to Work
program by YWCA
– Dozens of employers statewide
are assisted their employees buy
homes near work via employerassisted housing
A Little Perspective on
Progress vs Demands . . .
Households anticipated to be helped by
Rental Housing Support Bill
4,000
Households potentially helped by AHPAA
7,000
Households at-risk due to Expiring Federal
Subsidies
14,000
56,000
Housing Choice Voucher Waiting List
Households earning <80% AMI with
Housing Problems
952,000
1,893,143
Number of Households earning <80% AMI
4,187,500
Total number of households in Illinois
0
500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000
Codify The Executive Order; Enact
Comprehensive Housing Plan
Illinois Comprehensive
Housing Plan
• Affordability and Choice
– Formalize interdepartmental cooperation and
resource allocation to meaningfully influence
the housing market
• Creation and Preservation
– Leverage and align private sector investment
in coordination with the state’s housing
agenda
• Leadership
– Provide meaningful incentives from IDOT,
DCEO and other key agencies to
municipalities advancing the state’s housing
goals
State Voice Regarding Federal
Housing Activity
• Preserve CDBG, HOPE VI and HCV
Programs
• Enact National Housing Trust Fund
• Provide Employer-Assisted Housing
Incentives
• Eliminate regulatory barriers to the
production of workforce housing