HB3292 103RD GENERAL ASSEMBLY

LRB103 30445 KTG 56877 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3292

Introduced 2/17/2023, by Rep. Theresa Mah

SYNOPSIS AS INTRODUCED:

New Act

Creates the Limited-Equity Housing Cooperative Task Force Act. Provides that the purpose of the Act is to establish the Illinois Limited-Equity Housing Cooperative Task Force to collect data and qualitative experiences regarding the needs of limited-equity housing cooperatives with the goal of analyzing their potential to (i) increase the supply of affordable ownership housing across Illinois and (ii) further home ownership and build wealth among lower-income and moderate-income Illinoisans, especially those locked out of the traditional homeownership market. Provides that the Task Force is created within the Illinois Housing Development Authority to study: (1) opportunities to expand the number of limited-equity housing cooperatives statewide, including the number of properties that could be developed as limited-equity housing cooperatives; (2) the use of limited-equity housing cooperatives as a tool to create permanently affordable ownership housing; (3) the impact that substantial investments in limited-equity housing cooperatives would have on closing the racial wealth gap in Illinois; and other matters. Requires the Task Force to prepare and submit a final report, on or before December 31, 2024, to the Governor and the General Assembly making specific recommendations of legislative and budgetary action that supports the mission of limited-equity housing cooperatives to foster permanently affordable ownership housing and homeownership among lower-income and moderate-income Illinois residents. Contains provisions concerning Task Force membership; meetings; vacancies; and other matters. Provides that the Task Force is dissolved and the Act is repealed on December 31, 2024. Effective immediately.

A BILL FOR

AN ACT concerning housing.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Limited-Equity Cooperative Housing Task Force Act.

Section 5. Purposes. The purposes of this Act are to establish the Illinois Limited-Equity Housing Cooperative Task Force to collect data and qualitative experiences regarding the needs of limited-equity housing cooperatives with the goal of analyzing their potential to (i) increase the supply of affordable ownership housing across Illinois and (ii) further home ownership and build wealth among lower-income and moderate-income Illinoisans, especially those locked out of the traditional homeownership market.

Section 10. Findings. The General Assembly finds the following:

(1) Homeownership is the principal way families build wealth, yet homeownership is most inaccessible to communities of color in Illinois, where roughly 75% of white families own their homes, but only 61% of Asian families, 52% of Hispanic families, and 38% of Black families are homeowners.

(2) Private development into neighborhoods displaces long-time residents by purchasing and demolishing older, single-family homes at low costs in favor of luxury housing, raising property taxes and rents for surrounding homes.

(3) Limited-equity housing cooperatives curb displacement and foster generational wealth by creating opportunities for permanently affordable homeownership.

(4) Limited-equity housing cooperatives preserve naturally occurring affordable housing by closing the affordability gap so that low-to-moderate income households can live in high opportunity neighborhoods.

(5) Limited-equity housing cooperatives can be a powerful solution for homeowners facing delinquent property taxes or other financial threats to continued homeownership that keeps residents in their homes and creates permanently affordable properties for future buyers and long-term residents.

(6) Limited-equity housing cooperatives foster safe environments, community organizing and cooperation, civic engagement, and collective decision-making.

(7) Limited-equity housing cooperatives currently operate to successfully preserve and create affordable housing in urban areas in Illinois, but there is need for centralized support and coordination for the establishment of limited-equity housing cooperatives across the State.

(8) The State of Illinois commits to becoming a national exemplar by supporting and encouraging the establishment of limited-equity housing cooperatives across the State.

Section 15. Task Force; composition. The Limited-Equity Housing Cooperative Task Force is created within the Illinois Housing Development Authority and shall consist of the following members:

(1) The Executive Director of the Illinois Housing Development Authority, or the Executive Director's designee.

(2) One member of the Senate, appointed by the President of the Senate.

(3) One member of the Senate, appointed by the Minority Leader of the Senate.

(4) One member of the House of Representatives, appointed by the Speaker of the House of Representatives.

(5) One member of the House of Representatives, appointed by the Minority Leader of the House of Representatives.

(6) One representative from at least 3 Illinois limited-equity housing cooperatives appointed by the Governor.

(7) A representative from one organization, either within Illinois or outside Illinois, devoted to the creation of limited-equity housing cooperatives.

(8) A representative from a bank or lender that serves housing cooperatives.

(9) One representative of a university located in Illinois who has expertise on housing studies, appointed by the Governor.

(10) One member representing a national laboratory that provides technical support to advance affordable housing solutions, appointed by the Governor.

(11) One member representing a statewide organization that advocates for affordable housing in Illinois, appointed by the Governor.

Section 20. Task force duties.

(a) The Task Force shall study:

(1) opportunities to expand the number of limited-equity housing cooperatives statewide, including the number of properties that could be developed as limited-equity housing cooperatives;

(2) the use of limited-equity housing cooperatives as a tool to create permanently affordable ownership housing;

(3) strategies that support the use of limited-equity housing cooperatives;

(4) the impact that substantial investments in limited-equity housing cooperatives would have on closing the racial wealth gap in Illinois;

(5) any different considerations in the use of limited-equity housing cooperatives in gentrifying and disinvested communities; and

(6) any incentive packages that might encourage current property owners to sell their homes to limited-equity housing cooperatives.

(b) The Task Force shall also:

(1) make recommendations for establishing a sustainable, dedicated source of funding for limited-equity housing cooperatives;

(2) create a cost-benefit analysis describing any savings to the State if a limited-equity housing cooperative model were pursued, including when compared to current affordable rental housing programs and savings across other sectors;

(3) outline financing and lending opportunities for limited-equity housing cooperatives to make homeownership attainable to long-term neighborhood residents;

(5) explore complementary uses of limited-equity housing cooperative and community land trusts.

Following the study, the Task Force shall prepare a final report to the Governor and the General Assembly making specific recommendations of legislative and budgetary action that supports the mission of limited-equity housing cooperatives to foster permanently affordable ownership housing and homeownership among lower-income and moderate-income Illinois residents.

Section 25. Meetings; co-chair; administrative support.

All members appointed under Section 15 shall serve without compensation. Task Force members shall be appointed within 30 days after the effective date of this Act. If a vacancy occurs thereafter, a replacement shall be appointed by the co-chairs of the Task Force. The Task Force shall hold its initial meetings within 60 days after the effective date of this Act. The Task Force shall meet at least 6 times. Additional meetings may be called at the direction of the co-chairs. The following individuals shall serve as co-chairs of the Task Force:

(1) The Executive Director of the Illinois Housing Development Authority, or the Executive Director's designee.

(2) One member of the Senate, appointed by the President of the Senate.

(3) One member of the House of Representatives, appointed by the Speaker of the House of Representatives.

Additionally, one member from the non-governmental sector, appointed by the Governor, shall be appointed Vice-Chair.

The Illinois Housing Development Authority shall provide administrative and technical support to the Task Force and be responsible for administering its operations and ensuring that the requirements of the Task Force are met.

Section 30. Duties. The Task Force shall submit its final report to the Governor and General Assembly no later than December 31, 2024. The final report shall be made available online for the general public.

Section 35. Repeal. This Task Force is dissolved, and this Act is repealed, on December 31, 2024.

Section 99. Effective date. This Act takes effect upon becoming law.