Section 381.101  Authority 

 

The Illinois Housing Development Authority is the designated administrator for the Abandoned Residential Property Municipality Relief Program in Illinois, which was established by Section 7.31 of the Illinois Housing Development Act [20 ILCS 3805/7.31].

 

Section 381.102  Purpose and Objectives

 

The purpose of the Program is to use moneys appropriated from the Abandoned Residential Property Municipality Relief Fund, and any other funds appropriated for this purpose, to make grants to municipalities and counties to assist with costs incurred by the municipality or county for the securing and maintenance of Abandoned Residential Property as defined in Section 381.202.  Under the Program, the Authority will make grants to the municipalities and counties for Eligible Uses as set forth in Section 381.203.

 

Section 381.103  Definitions

 

The following definitions apply to terms used in this Part:

 

"Abandoned Residential Property": Shall have the meaning set forth in Section 381.202

 

"Act":  The Illinois Housing Development Act [20 ILCS 3805].

 

"Applicant":  A municipality or county making an Application for a Grant. 

 

"Application":  An application to the Authority on the Authority's form for a Grant completed by a prospective Applicant. 

 

"Appropriation":  The annual appropriation of funds, from the Abandoned Residential Property Municipality Relief Fund to the Illinois Department of Revenue for the Authority, by the Illinois General Assembly for the Program and any other funds appropriated for this purpose.

 

"Attorney General":  The Attorney General of the State of Illinois.

 

"Auditor General":  The Auditor General of the State of Illinois.

 

"Authority":  The Illinois Housing Development Authority.

 

"City":  The City of Chicago.

 

"Collar Counties": The counties of DuPage, Kane, Lake, McHenry and Will in Illinois.

 

"Commitment":  A contract executed by the Authority and the Applicant under which the Authority agrees to make a Grant to the Applicant.  Each Commitment shall contain a provision to the effect that the Authority shall not be obligated to provide funds under the Commitment if the Authority has not received sufficient funds from an Appropriation.

 

"Eligible Uses":  Shall have the meaning set forth in Section 381.203.

 

"Fund":  The Abandoned Residential Property Municipality Relief Fund created in the State treasury for the collection of certain fees as set forth in Section 15-1504.1 of the Illinois Code of Civil Procedure [735 ILCS 5/15-1504.1] paid by a plaintiff at the time of a filing of a foreclosure complaint in connection with residential real estate.

 

"Grant":  The portion of the Appropriation granted by the Authority to an Applicant for Eligible Uses under the Program.

 

"Pests":  Undesirable arthropods (including certain insects, spiders, mites, ticks and related organisms), wood infesting organisms, rats, mice and other obnoxious undesirable animals, but does not include a feral cat, a "companion animal" as that term is defined in the Humane Care for Animals Act [510 ILCS 70], "animals" as that term is defined in the Illinois Diseased Animals Act [510 ILCS 50], or animals protected by the Wildlife Code [520 ILCS 5].

 

"Program":  The Abandoned Residential Property Municipality Relief Program authorized by Section 7.31 of the Act.

 

"Rehabilitation": The rehabilitation of an Abandoned Residential Property that is strictly limited in scope to address exterior building safety concerns such as repairing of the roof, windows, doors, masonry or walkway of an Abandoned Residential Property. 

 

"State":  The State of Illinois.

 

Section 381.104  Compliance with Federal and State Law

 

Notwithstanding anything in this Part to the contrary, this Part shall be construed in conformity and compliance with applicable federal and State law.

 

Section 381.105  Forms and Procedures for the Program

 

The Authority may prepare, use, prescribe, supplement and amend forms, agreements and other documents and procedures as may be necessary to implement the Program. 

 

Section 381.106  Fees and Charges

 

The Authority may not charge an application fee for the Program.

 

Section 381.107  Authority Administrative Expenses

 

Subject to approval of the Department of Revenue, the Authority shall be entitled to deduct from each Appropriation, subject to the annual receipt of funds, prior to making any Grants, an amount not to exceed 4% of each Appropriation for expenses associated with the administration of the Program, including, without limitation, expenses for staff salaries and benefits for time spent on design and administration of the Program; expenses incurred in performing outreach activities and providing technical assistance to the Applicants; the use of the Authority's equipment for Program purposes; the cost of office space and utilities incurred in connection with the Program; and any other expenses incurred in the administration of the Program.  The Authority shall maintain a detailed accounting of its administrative expenses, using the generally accepted accounting principles (GAAP) of the Financial Standards Board of the American Institute of Certified Public Accountants as contained in the publication entitled AICPA Professional Standards, 1211 Avenue of the Americas, New York NY 10036-8775 (June 2012, no later editions are incorporated).  These records shall be available to the public for review. 

 

(Source:  Amended at 38 Ill. Reg. 6678, effective March 10, 2014)

 

Section 381.108  Amendment

 

This Part may be supplemented amended or repealed by the Authority from time to time and in a manner consistent with the Illinois Administrative Procedure Act [5 ILCS 100], this Part, the Act, and other applicable laws.  This Part shall not constitute or create any contractual rights.

 

Section 381.109  Severability

 

If any clause, sentence, paragraph, subsection, Section or Subpart of this Part is adjudged by any court of competent jurisdiction to be invalid, that judgment shall not affect, impair or invalidate the remainder of this Part, but shall be confined in its operation to the clause, sentence, paragraph, subsection, Section or Subpart to which the judgment is rendered.

 

Section 381.110  Gender and Number

 

All terms used in any one gender or number shall be construed to include any other gender or number, as the context may require.

 

Section 381.111  Non-Discrimination

 

The Applicants shall comply with the applicable provisions of the Illinois Human Rights Act [775 ILCS 5] and the regulations promulgated under that Act, the federal Fair Housing Act (42 USC 3601), Section 504 of the Rehabilitation Act of 1973 (29 USC 794), the Illinois Environmental Barriers Act [410 ILCS 25], the Illinois Accessibility Code (71 Ill. Adm. Code 400), and all other applicable State and federal law concerning discrimination and fair housing.

 

Section 381.112  Titles and Captions

 

Titles and captions of Subparts, Sections and subsections are used for convenience and reference and are not a part of the text. 

 

Section 381.201  Grants to Municipalities and Counties

 

a)         Distribution of Funds

Subject to the annual receipt of funds, the Authority shall first deduct the funds it requires to meet its administrative expenses as described in Section 381.107. It shall distribute the remainder of the funds among the 4 geographic set-asides as described in section (b).

 

b)         Geographic Set-Asides

 

1)         After distributing the amount necessary for the purposes of subsection (a), the Authority shall make Grants to municipalities and counties for use in connection with Abandoned Residential Property. The Applicants shall be divided into 4 geographic set-aside categories with the money divided as follows:

 

A)        30% of the moneys in the Fund that have been appropriated, subject to the annual receipt of funds, shall be used to make Grants to municipalities in the County of Cook (other than the City) and to the County of Cook.

 

B)        25% of the moneys in the Fund that have been appropriated, subject to the annual receipt of funds, shall be used to make Grants to the City of Chicago.

 

C)        30% of the moneys in the Fund that have been appropriated, subject to the annual receipt of funds, shall be used to make Grants to the municipalities in the Collar Counties and to the Collar Counties.

 

D)        15% of the moneys in the Fund that have been appropriated, subject to the annual receipt of funds, shall be used to make Grants to municipalities in the State (other than the municipalities in the County of Cook and the Collar Counties), and to the other counties in the State (other than the County of Cook and the Collar Counties).  

 

2)         When the jurisdiction of a municipality is included within more than one of the geographic set-asides set forth in subsection (b)(1), the Authority may elect to fully fund the Application from one of the relevant geographic areas.

 

3)         Grants distributed to the municipalities and counties under subsection (b)(1)(D) shall be based on areas of greatest need within these counties, which shall be determined, to the extent practicable, proportionately on the amount of fees paid to the respective clerks of the courts within these counties, and on any other factors that the Authority deems appropriate [20 ILCS 3805/7.31(b)(4)]. The Authority will meet the statutory requirement to provide funding to areas of greatest need within this 96-county set-aside primarily through subsection (c)(1)(A) (Need).  Instances in which it is impracticable to base Grant awards proportionately on the amount of fees paid to the respective clerks of the court include, but are not limited to: when no application is received within the county; when no application received in the county meets the minimum application requirements; when funding is unavailable due to inadequate receipts; and when the amount collected by a county is less than the cost to administer the Grant.  Additionally, proportionate share funding may be impracticable when there are extraordinary circumstances warranting a larger Grant amount than the fees that have been remitted by that county. Extraordinary circumstances include such situation as: when an Applicant demonstrates exemplary capacity, need and impact; when there has been a natural disaster, a significant loss of employment, or other event generating extreme need within a county; and as demonstrated in the materials provided by the Applicant.

 

c)         Application Ranking

 

1)         The Authority will rank Applications against other Applications in the same geographic set-aside category based on the criteria in subsections (c)(1)(A) through (E):

 

A)        Need

Applicants should clearly demonstrate need within the jurisdiction.  This demonstration may include, but is not limited to, the fees paid to the clerks of the court in the county, along with historical information on the financial burden that maintaining and demolishing abandoned residential properties has imposed on the Applicant.  For the geographic set-aside referenced in subsection (b)(1)(D), and when the Treasurer provides regular and reliable data to the Authority on receipts for each county, the Authority will consider the amount remitted from the clerk of the court in the Applicant's county, along with information provided by the Applicant, to determine which Applications demonstrate the greatest need for the Grant and therefore will receive the highest score.

 

B)        Capacity

Applicants should clearly demonstrate capacity to undertake the proposed activities.  This demonstration may include, without limitation, evidence that the Applicant has administered similar grant programs.

 

C)        Impact

Applicants should clearly demonstrate that the Grant will have a strong positive impact, whether upon the entire jurisdiction or an identified portion of the jurisdiction.

 

D)        Budget and Cost Reasonableness

Applicants should provide an estimated budget and demonstrate a systematic, thorough and well-documented approach to ensuring that costs are reasonable, including any costs associated with third party vendors.

 

E)        Readiness to Proceed

Applicants should clearly demonstrate a thorough, detailed and reasonable work plan for the expeditious completion of proposed reimbursable activities.

 

2)         The Authority will equally weigh these criteria unless adjustment is necessary to further program requirements or legislative findings.  In the event the Authority seeks to revise the weighting of these criteria, the Authority will propose amendments to this Part.

 

(Source:  Amended at 38 Ill. Reg. 6678, effective March 10, 2014)

 

Section 381.202  Abandoned Residential Property

 

Abandoned Residential Property shall mean residential real estate that:

 

a)         Either:

 

1)         Is not occupied by any mortgagor or lawful occupant as a principal residence; or

 

2)         Contains an incomplete structure if the real estate is zoned for residential development, when the structure is empty or otherwise uninhabited and is in need of maintenance, repair or securing; and

 

b)         With respect to which, either:

 

1)         Two or more of the following conditions are shown to exist:

 

A)        Construction was initiated on the property and was discontinued prior to completion, leaving a building unsuitable for occupancy, and no construction has taken place in 6 months;

 

B)        Multiple windows on the property are boarded up, closed off or smashed through, broken off or unhinged, or multiple window panes are broken and unrepaired;

 

C)        Doors on the property are smashed through, broken off, unhinged or continuously unlocked;

 

D)        The property has been stripped of copper or other materials, or interior fixtures to the property have been removed;

 

E)        Gas, electrical or water services to the entire property have been terminated;

 

F)         One or more written statements of the mortgagor or the mortgagor's personal representative or assigns, including documents of conveyance, indicate a clear intent to abandon the property;

 

G)        Law enforcement officials have received at least one report of trespassing or vandalism or other illegal acts being committed at the property in the last 6 months;

 

H)        The property has been declared unfit for occupancy and ordered to remain vacant and unoccupied under an order issued by a municipal or county authority or a court of competent jurisdiction;

 

I)         The local police, fire or code enforcement authority has requested the owner or other interested or authorized party to secure or winterize the property due to the local authority declaring the property to be an imminent danger to the health, safety and welfare of the public;

 

J)         The property is open and unprotected and in reasonable danger of significant damage due to exposure to the elements, vandalism or freezing; or

 

K)        Other evidence indicates a clear intent to abandon the property; or

 

2)         The real estate is zoned for residential development and is a vacant lot that is in need of maintenance, repair and securing.

 

(Source:  Amended at 38 Ill. Reg. 6678, effective March 10, 2014)

 

Section 381.203  Eligible Uses of Grant Funds

 

Eligible Uses of Grant Funds by Municipalities and Counties

Municipalities and counties shall use Grant funds in connection with Abandoned Residential Property as follows:

 

a)         cutting of neglected weeds or grass;

 

b)         trimming of trees or bushes and removal of nuisance bushes and trees;

 

c)         extermination of Pests or prevention of the ingress of Pests;

 

d)         removal of garbage, debris and graffiti;

 

e)         boarding up, closing off or locking windows or entrances or otherwise making the interior of a building inaccessible to the general public;

 

f)         surrounding part or all of an Abandoned Residential Property's underlying parcel with a fence or wall or otherwise making part or all of the Abandoned Residential Property's underlying parcel inaccessible to the general public;

 

g)         demolition of Abandoned Residential Property;

 

h)         rehabilitation of Abandoned Residential Property.

 

Section 381.204  Application Cycle

 

The Authority will supply interested Applicants with an Application. Applications under the Program will be accepted periodically until the Appropriation is disbursed. 

 

Section 381.205  Application Requirements

 

Each Application shall include the information required by this Section and any additional information the Authority may require to promote the efficient administration of the Program. 

 

a)         Qualifications.  Each Applicant shall document qualifications to complete the Program activities.  These qualifications shall without limitation include the following:

 

1)         The applicant is a county or municipality;

 

2)         The Applicant has the experience or expertise to manage the activities listed in Section 381.203 for which grant funds will be utilized;

 

3)         The Applicant has demonstrated its capacity for effective fiscal management.  This is typically proven through a third-party audit; and

 

4)         The Applicant is willing and able to abide by all program requirements.

 

b)         Applicant's Capacity.  Each Applicant shall document its capacity to administer Program funds for Eligible Uses.

 

c)         Activities to be Undertaken.  Each Applicant shall list which Eligible Uses are to be undertaken with Program funds, including, without limitation, those activities outlined in Section 381.203.

 

d)         Time for Expending.  Each Applicant shall include a budget and timeline schedule for performing the Eligible Uses of Program funds outlined in the Application.

 

(Source:  Amended at 38 Ill. Reg. 6678, effective March 10, 2014)

 

Section 381.206  Review of Applications

 

a)         Application Screening.  The Authority will review all Applications to confirm that all elements of the Application package have been addressed.  Applicants will be notified of deficiencies in Applications and will be given the opportunity to correct non-material deficiencies.  Non-material deficiencies are non-significant deficiencies that, by their existence, do not impact the Applicant's ability to meet the requirement of Section 381.205 and of this Section.  Completed Applications will be reviewed and evaluated by Authority staff in accordance with subsections (b) through (e) of this Section. 

 

b)         Basic Eligibility Evaluation.  Each Application will be reviewed to assure that the Applicant is a municipality or county.

 

c)         Willingness to Perform.  The Applicant must commit to remain ready, willing and able to expend Program funds for Eligible Uses in a timely manner.

 

d)        Costs.  The Applicant must demonstrate that the costs identified in the Application are Eligible Uses under Section 381.203.

 

e)         Capacity.  The Applicant must demonstrate that the proposed activities identified in the Application can be accomplished. 

 

Section 381.207  Grant Administration

 

a)         Commitment.  If awarded Grant funds, a municipality or county shall enter into a Commitment with the Authority. The Grant may be less than the amount requested in the Application.  The term of Commitment shall not exceed 2 years, subject to the availability of funds from an Appropriation.

 

b)         Record Retention.  Each municipality and county shall maintain records in connection with the Grant under the Commitment for 5 years after the date of termination of the Commitment.

 

c)         Monitoring.  The Authority, the Auditor General and the Attorney General shall have the right to monitor all municipality and county books and records relating to the Grant and the Program.  Each municipality and county shall make all records relating to its Grant and the Program available for inspection, examination and copying by the Authority, the Auditor General and the Attorney General upon reasonable prior notice, as the Authority, the Auditor General or the Attorney General may reasonably require.  The required documentation may include, but is in no way limited to, a copy of the municipality's or county's Application to the Authority; all records relating to the Eligible Uses of Grant funds under the Program, as set forth in Section 381.203; and any other documentation required by the Authority, the Auditor General and the Attorney General.

 

Section 381.208  Funding of Grants

 

Subject to the terms of the Commitment with the Authority and the related documents evidencing the grant, the Authority will provide funds to the awarded municipalities and counties when the Appropriation is made available and as set forth in Sections 381.201 and 203.

 

Section 381.209  Reporting Requirements

 

Each awarded municipality and county shall provide reports to the Authority, on forms provided by the Authority, at the end of each quarter of the term of its Commitment.  The municipality or county shall identify, at a minimum, evidence and back-up documentation of expenses for Eligible Uses, including, but not limited to, receipts, ledgers, invoices, before and after pictures, addresses or geographic coordinates, number of abandoned residential properties served, and any other information requested by the Authority.