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Housing Update
There have been a number of legislative and budget issues concerning housing this year. Below is a summary of some of the legislation and budget issues.
State Budget
Without an agreement on a revenue increase, state spending for human services, including Domestic Violence Shelters, the Emergency Food and Shelter Program, the Homeless Prevention Program, Homeless Youth Services, Independent Living Centers and Supportive Housing Services may face cuts up to 50%. Current advocacy efforts to prevent this and to document the hardship such cuts would cause can be found at www.houisngactionil.org
The second capital budget bill passed this year, House Bill 313, and included $100 million for affordable housing generally plus $30 million specifically for veterans and people with disabilities. The funding will go to the Illinois Housing Development Authority.
However, the fate of the capital budget is linked with what happens with the operating budget. The State's ability to finance the bonds that will pay for the capital budget will be limited if the ongoing fiscal problems are not resolved.
State Legislation Goes to Governor's Desk
Below are some of the housing-related bills that passed both chambers of the General Assembly and, if they have not already, will be sent to Governor Quinn for his consideration. (For a complete list go to the Update www.housingactionil.org )
House Bill 2470: Amends the property tax code to expand the existing Housing Opportunity Tax Abatement Program to include tenant-based Housing Choice Vouchers and tenant-based vouchers that have been converted to project-based vouchers. It also expands the number of geographic areas where landlords are eligible to participate in the program.
House Bill 3863: Requires that after a foreclosure is complete, the new owner of a rental property must make a good faith effort to identify residents of the property and inform residents that the property has been the subject of foreclosure, and provide contact information for resident concerns and repair requests. The bill also provides a tenant a minimum of 30 days to move after the eviction hearing if the tenant is evicted under the procedure provided under the Illinois Mortgage Foreclosure Law.
Senate Bill 1629: Amends the Energy Assistance Act to make landlords who participate in the Rental Housing Support Program or Housing Choice Voucher program to be eligible for energy utility assistance.
House Bill 746: Creates a Rapid Reintegration Pilot Program for people with physical disabilities and/or mental illness who need a short-term placement of 6 months or less in a nursing facility so that they can successfully return to the community without experiencing unnecessary institutionalization.
House Bill 2653: Amends the Homelessness Prevention Act to allow payment of mortgage arrearages to help homeowners avoid foreclosure.
Federal Update
President’s Obama’s budget proposal includes inaugural funding for the National Housing Trust Fund. “For the first time, the Budget provides $1 billion to capitalize a Housing Trust Fund that will help make significant advances in providing affordable housing options for targeted low income families, thus addressing one of the most serious social and economic problems facing our society,” HUD’s budget request states.
New Protections for Renters in Foreclosed Buildings All tenants must get a 90 day notice before being evicted as a result of foreclosure. In addition (with some exceptions) tenants that have leases can continue to live in their homes until the end of the term of their lease. The rights of Section 8 tenants are also protected because the new owner at foreclosure must accept both the tenant's lease and the housing assistance payment (HAP) contract.
Information in this update was from a recent Housing Roundtable Update and the complete text may be found at www.housingactionil.org in the Latest News section.
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