Bill Text: IL SB2927 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: Creates the Community Land Trust Home Ownership Act. Provides that the Illinois Housing Development Authority's homeownership programs, including loan products, grants, and other types of assistance, shall be made available to home buyers and owners seeking to purchase or maintain housing where a leasehold interest in real property is held by a community land trust or other 501(c)(3) organization for the purposes of promoting long-term affordability, preservation of affordable housing, or community revitalization efforts. Provides that any other type of seller, including for-profit or private sellers of homes, through leasehold agreements, such as installment contracts, contract for deeds, or any other type of purchase or ownership structure, shall not be eligible under the amendatory Act. Requires the Illinois Housing Development Authority, within 90 days after the effective date of the Act, to propose new or amended administrative rules that will make the Authority's homeownership programs consistent with the purposes of the Act. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-01-26 - Referred to Assignments [SB2927 Detail]

Download: Illinois-2023-SB2927-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2927 Introduced 1/26/2024, by Sen. Natalie Toro SYNOPSIS AS INTRODUCED:
New Act
Creates the Community Land Trust Home Ownership Act. Provides that the Illinois Housing Development Authority's homeownership programs, including loan products, grants, and other types of assistance, shall be made available to home buyers and owners seeking to purchase or maintain housing where a leasehold interest in real property is held by a community land trust or other 501(c)(3) organization for the purposes of promoting long-term affordability, preservation of affordable housing, or community revitalization efforts. Provides that any other type of seller, including for-profit or private sellers of homes, through leasehold agreements, such as installment contracts, contract for deeds, or any other type of purchase or ownership structure, shall not be eligible under the amendatory Act. Requires the Illinois Housing Development Authority, within 90 days after the effective date of the Act, to propose new or amended administrative rules that will make the Authority's homeownership programs consistent with the purposes of the Act. Effective immediately.
LRB103 34516 KTG 64350 b
A BILL FOR
SB2927 LRB103 34516 KTG 64350 b
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
Community Land Trust Home Ownership Act.
Section 5. Purposes. The purposes of this Act are to
ensure access to affordable housing loan products, grants, and
other types of assistance for buyers and owners of housing
located in a community land trust or other leasehold ownership
structure with a ground lease between the buyer or owner and a
501(c)(3) organization.
Section 10. Findings. The General Assembly finds the
following:
(1) The State of Illinois is facing an affordable housing
crisis.
(2) Homeownership serves as a critical tool to close the
racial wealth gap by enabling historically excluded families
to build generational wealth.
(3) Community land trusts and other ownership structures
that promote long-term affordability are critical housing
options that can reduce the affordable housing gap.
(4) Community land trusts and other ownership structures

SB2927 - 2 - LRB103 34516 KTG 64350 b
that promote long-term affordability curb displacement and
foster generational wealth by creating opportunities for
homeownership to remain affordable for generations.
(5) Community land trusts and other ownership structures
that promote long-term affordability preserve naturally
occurring affordable housing by closing the affordability gap
so that low-to-moderate income households can live in high
opportunity neighborhoods.
Section 15. Definitions. As used in this Act:
"Authority" means the Illinois Housing Development
Authority.
"Community land trust" means a 501(c)(3) organization
governed by a board of community land trusts residents,
community residents, and public representatives that provides
permanent or long-term affordability and shared equity
homeownership opportunities.
"501(c)(3) organization" means a nonprofit organization
that is exempt or qualified for exemption from taxation
pursuant to Section 501(c)(3) of the Internal Revenue Code of
1986.
Section 20. Eligibility for Authority homeownership
programs. The Authority's homeownership programs, including
loan products, grants, and other types of assistance, shall be
made available to home buyers and owners seeking to purchase

SB2927 - 3 - LRB103 34516 KTG 64350 b
or maintain housing where a leasehold interest in real
property is held by a community land trust or other 501(c)(3)
organization for the purposes of promoting long-term
affordability, preservation of affordable housing, or
community revitalization efforts. Any other type of seller,
including for-profit or private sellers of homes, through
leasehold agreements, such as installment contracts, contract
for deeds, or any other type of purchase or ownership
structure, shall not be eligible under this Section.
Section 25. Rulemaking. Within 90 days after the effective
date of this Act, the Authority shall propose new or amended
administrative rules that will make the Authority's
homeownership programs consistent with the purposes of this
Act.