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Illinois Affordable Housing Planning and Appeals Act (AHPAA)

Illinois Affordable Housing Planning and Appeals Act (AHPAA). Strong Local Government Provisions in the Illinois ’ 1970 constitution allow home rule units of government to “ exercise any power and perform any function pertaining to its government and affairs. ”

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Illinois Affordable Housing Planning and Appeals Act (AHPAA)

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  1. Illinois Affordable Housing Planning and Appeals Act(AHPAA)

  2. Strong Local Government • Provisions in the Illinois’ 1970 constitution allow home rule units of government to “exercise any power and perform any function pertaining to its government and affairs.” • Local officials and community members often resistant to State controls, mandates and oversight. • State Support for Affordable Housing • 1989: the State created the Illinois Affordable Housing Trust Fund, capitalized by half the real estate transfer tax revenue, for investments in affordable housing (current annual outlays about $30 million). • 2001: the State created the Illinois Affordable Housing Tax Credit to encourage private investment in affordable housing by providing donors a tax credit on their state income tax liability equal to fifty percent of the donation (must be made to a qualified non-profit entity). • 2005: the State created the Illinois Rental Housing Support Program, funded by a real estate recorder’s fee, to provide rent subsidies to very-low income households (current annual outlays about $15 million). Background

  3. Determination of Exemption Status for Local Governments • Using most recent data published by U.S. Census Bureau, IHDA must examine every incorporated local government in Illinois and calculate the local share of year-round housing units which would be affordable to a household at the following income levels: • 60% of the Area Median Income (Metropolitan Statistical Area where applicable, otherwise based on county) for renters. • 80% of the Area Median Income (Metropolitan Statistical Area where applicable, otherwise based on county) for homeowners. • Counties, cities, villages and towns with less than a 10% affordable housing share are considered Non-Exempt Local Governments (NELGs). • List must be published at least once every five years. • Local Governments with a population less than 1,000 are automatically exempt. Components of AHPAA

  4. Affordable Housing Plans • Non-Exempt Local Governments(NELGs) must produce, adopt and submit (to IHDA) an Affordable Housing Plan with the following requirements: • Statement of the total number of affordable housing units necessary to exempt the local government from the operation of the Act. • Identification of lands within the jurisdiction that are most appropriate for the construction of affordable housing. • Incentives that the local government may provide for the purpose of attracting affordable housing to their jurisdiction. • Selection of one of the following goals for increasing local affordable housing stock: • a minimum of 15% of all new development/redevelopment within the local meet the affordability thresholds defined by the Act; • a minimum of a 3 percentage point increase in the overall percentage of affordable housing within its jurisdiction. • a minimum of 10% of affordable housing share within its jurisdiction. Components of AHPAA (Cont.)

  5. State Housing Appeals Board • AHPAA established a State Housing Appeals Board (SHAB) that must include four local officials from NELGs, an affordable housing developer, an affordable housing advocate and a retired judge (chairman of the board). • The SHAB has the authority to hear appeals filed by a developer who has proposed to construct affordable housing in a NELG and feels that they were unfairly treated during the local permitting process. • The SHAB has the authority to overturn or demand changes to local land use decisions related to developments under the appeals review process. Components of AHPAA (Cont.)

  6. Creation of the AHPAA and Subsequent Amendments • AHPAA was signed into law in 2004. • In 2006 NELGs were given latitude to partner with neighboring local governments to share affordable housing stocks. Local governments were also given the authority to create community land trusts and other mechanisms that could foster the creation and preservation of affordable housing. • In 2013 the definitions and data sources required for the creation of the NELG list were clarified and updated to allow for more frequent publication of the list. • List of Non-Exempt Local Governments • First list of NELGs published in 2004; second list to be published in 2013. • Incorporation of the list into Low-Income Housing Tax Credit (LIHTC) Qualified Allocation Plan (QAP) as a set aside and may soon be scored as points. • State Housing Appeals Board • SHAB membership fully appointed in 2012. • SHAB Administrative Rules approved by Illinois General Assembly in 2012. Progress to Date

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