Springfield , Illinois – 2008 Spring Session
June 16, 2008 . The 95 th General Assembly has completed most of its legislative work and is now in negotiations with the Governor over the final budget. This past session passed fewer bills than any in recent memory according to HousingMatters.net. Here is a summary of the key affordable housing legislative initiatives:
Tenant Protections in Foreclosures, SB 2721 (Crotty) Among other provisions, this bill provides that in a mortgage foreclosure proceeding, where a timely written notice concerning rent payment was not given to the tenant, or where the tenant makes a good-faith effort to keep current in the rent, an order of possession must allow the tenant to retain possession under the lease. Passed both houses on May 30, 2008
Good Homes/Good Schools, SB 220 (Martinez-Link-Collins-Meeks-Lightford) – The proposed legislation provides financial assistance to school districts where new multifamily housing is developed for families with school age children. The new developments must meet state standards for affordability and “live near work” goals. The bill passed last session but it was given zero funding this year.
Condominium Renters Protection Act, HB 5189 . (Pihos-Graham-Yarbrough) - Protects condo owners and condo renters from condo association rules restricting rental units. The bill was sent back to the Rules Committee and no further action is anticipated this year. Lead Organizations: Housing Action Illinois and Sargent Shriver National Center for Policy Law
Poverty Eradication Commision, HB4369 (Yarbrough-Pihos-Dugan-Bradley-Howard) – The legislature passed HB4369, which establishes a commission to study ways to eliminate poverty in Illinois. However, the commission will be inactive unless funding for its operation is added to the state budget. The bill is awaiting the Governor’s signature. This legislation is part of the “From Poverty to Opportunity Campaign” led by the Heartland Alliance.
Real Estate Transfer Tax Reform. SB 445 (Martinez) – The proposed legislation to increase the state Real Estate Transfer Tax (RETT), was sent to the Rules Committee on December 3, 2007, and no action was taken on it this session. The proposal would have created a graduated transfer tax based upon the sale price of the house, and the additional funds raised would be split between the Illinois Affordable Housing Trust Fund and the Open Lands Fund. The legislation is supported by Business and Professional People for the Public Interest and Housing Action Illinois.
State General Budget: The legislature has passed a budget; however, the Governor has threatened a veto unless the House and Senate find $2 billion in cuts or new revenue. Housing items affected by the budget include:
- Supportive Housing & Homeless Services : $4 million in new funding was included for supportive housing. The total supportive housing budget is $21.74 million for 2009. Homeless Prevention ($11 million) is now funded out of the Real Estate Transfer Tax fund.
- Affordable Housing Trust Fund : $91.6 million has been appropriated from the Real Estate Transfer Tax revenue fund. Of that amount, $66.5 million goes to IHDA for the Trust Fund program, $16.3 to other housing programs (including homeless prevention), $6.3 million for special housing programs and $2.5 million for administration. All of this, however, is dependent upon the state collecting enough funds through the transfer tax. Right now, estimates for actual collections are also low one-half that amount due to the declining housing market.
- Rental Housing Support Program : $35 million has been appropriated for the program, an increase of $4 million over 2008. The program is funded through a county recording fee which has also been affected by the real estate market. However, the fund has a large unused cash balance from 2008 which should cover any shortfalls in 2009.
State Capital Budget: A capital budget remains uncertain as the House and the Senate do not agree on the scope or funding source. Capital items include issuing bonds for construction of road, transit systems, schools, and public facilities.
- $100M Affordable Housing Budget : A number of housing advocates are trying to get the state’s capital budget to include an annual $100 million line item to support the construction and preservation of affordable housing statewide through the Illinois Housing Development Authority. The Senate version of the budget included $50 million for affordable housing. This effort is being lead by Business and Professional People for the Public Interest and Housing Action Illinois.
Washington , D.C. – 2008 Legislative Session
June 16, 2008 .
National Housing Trust Fund . The creation and funding for an Affordable Housing Trust Fund has been incorporated into the Federal Housing Finance Regulatory Reform Act of 2008, a bill to regulate government sponsored enterprises (GSE) and to assist families facing foreclosure. The bill (there is no bill number yet) passed by the Senate Banking Committee on May 20 could come to the Senate floor as early as Tuesday, June 17. A version of this bill has already passed the House. This bill includes a Housing Trust Fund that would produce and preserve housing for extremely low and very low income households.
Section 8 Voucher Reform Act (SEVRA) The Section 8 Voucher program has a significant reform bill now being considered in Congress. On March 3, 2008, Senators Dodd (D-Conn) and Schumer (D-NY) introduced S. 2684, the Section 8 Voucher Reform Act (SEVRA). The Senate bill closely resembles H.R. 1851, a version of SEVRA that the House passed by a bipartisan vote of 333-83 on July 12, 2007. The Senate bill is now in the Senate banking committee.
SEVRA make some important changes to the program:
- Funding Section 8 Vouchers – The proposed new funding mechanism will provide public housing authorities with more money, allowing them to fully fund their vouchers. Under the old funding mechanism, 150,000 vouchers could not be used even though the program had enough money appropriated in the budget. Housing advocates generally support this change.
- Increased the number of vouchers. The bill authorizes 100,000 new vouchers over the next five years. Currently there are about 2 million housing vouchers authorized nationally, a number that has not increased in the last few years. The actual number of vouchers in use is lower due to budget restrictions that have been in force (see above).
- Improved portability – The bill makes it easier for public housing authorities to accept Section 8 voucher holders from other jurisdictions. The new bill will do away with the old billing program and allow new vouchers to be absorbed into the budget of the receiving agency.
Public Housing – HOPE VI – Legislation has been introduced to extend the HOPE VI program and to make some changes in the program. On January 17, 2008, the House of Representatives passed HR 3524, the HOPE VI Improvement and Reauthorization Act of 2007. The bill reauthorizes the program for 7 years, while making a number of important improvements according to the Center on Budget and Policy Priorities. The Administration opposes extending the program.
WHAT YOU CAN DO:
To find out about a bill before the Illinois General Assembly go to www.ilga.gov and search by the bill’s number. That will tell you who is sponsoring the bill, its status, the chamber it is currently before (i.e. House or Senate), and the actual language in the bill. You can also check to see which legislators are sponsoring the bill. You should contact your state Representative or Senator to express your position on the bill. You can also use this website to get contact information (address, telephone, email) for your legislator.
To find out about a bill before the U.S. Congress go to http://thomas.loc.gov and search by either the bill number or a key phrase. You can also look up the status of different bills and read summaries. Additionally, you can find out how to contact your Senator or Representative, find out how they voted on legislation, or visit their websites.
