Bill Text: IL SB3442 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the House Illinois Families Act. Imposes on each applicable taxpayer an annual tax 10% of the property value for each single-family residence that the applicable taxpayer owns in excess of 25 single-family residences. Provides that "applicable taxpayer" means a taxpayer that is not any of the following: (i) a mortgage note holder that owns a single-family residence through foreclosure; (ii) an organization that is described in Section 501(c)(3) of the Internal Revenue Code and exempt from tax under Section 501(a); (iii) an organization primarily engaged in the construction or rehabilitation of single-family residences; or (v) a person who owns federally subsidized housing. Defines "single-family residence" as residential property consisting of not more than 4 dwelling units. Provides that this tax must be deposited into the Illinois Affordable Housing Trust Fund to fund housing programs for justice involved individuals and provide rental and mortgage assistance. Requires an applicable taxpayer to report to the Department of Revenue information about applicable single-family residences. Imposes a penalty of $50,000 for failure to comply with these notice provisions. Provides that the applicable taxpayer must give notice to each tenant of an applicable single-family residence of the taxpayer's intent to sell this residence. Provides the tenant with a right of first refusal in which the tenant has the right to purchase the property to continue to live there as their residence. Creates a process for the tenant to purchase the single-family residence. Amends the Illinois Affordable Housing Act. Allows the Trust Fund in that Act to receive moneys that are designated for deposit into the Trust Fund as provided in the House Illinois Families Act. Makes other changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-02-08 - Referred to Assignments [SB3442 Detail]

Download: Illinois-2023-SB3442-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3442 Introduced 2/8/2024, by Sen. Willie Preston SYNOPSIS AS INTRODUCED:
New Act
310 ILCS 65/5 from Ch. 67 1/2, par. 1255
Creates the House Illinois Families Act. Imposes on each applicable taxpayer an annual tax 10% of the property value for each single-family residence that the applicable taxpayer owns in excess of 25 single-family residences. Provides that "applicable taxpayer" means a taxpayer that is not any of the following: (i) a mortgage note holder that owns a single-family residence through foreclosure; (ii) an organization that is described in Section 501(c)(3) of the Internal Revenue Code and exempt from tax under Section 501(a); (iii) an organization primarily engaged in the construction or rehabilitation of single-family residences; or (v) a person who owns federally subsidized housing. Defines "single-family residence" as residential property consisting of not more than 4 dwelling units. Provides that this tax must be deposited into the Illinois Affordable Housing Trust Fund to fund housing programs for justice involved individuals and provide rental and mortgage assistance. Requires an applicable taxpayer to report to the Department of Revenue information about applicable single-family residences. Imposes a penalty of $50,000 for failure to comply with these notice provisions. Provides that the applicable taxpayer must give notice to each tenant of an applicable single-family residence of the taxpayer's intent to sell this residence. Provides the tenant with a right of first refusal in which the tenant has the right to purchase the property to continue to live there as their residence. Creates a process for the tenant to purchase the single-family residence. Amends the Illinois Affordable Housing Act. Allows the Trust Fund in that Act to receive moneys that are designated for deposit into the Trust Fund as provided in the House Illinois Families Act. Makes other changes. Effective immediately.
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A BILL FOR
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AN ACT concerning revenue.
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 House
Illinois Families Act.
Section 5. Definitions. As used in this Act:
"Applicable taxpayer" means a taxpayer that is not:
(i) A mortgage note holder that owns a single-family
residence through foreclosure;
(ii) An organization that is described in Section
501(c)(3) and exempt from tax under Section 501(a);
(iii) An organization primarily engaged in the
construction or rehabilitation of single-family
residences; or.
(iv) A person who owns federally subsidized housing.
"Disqualified sale" means a sale or transfer to:
(i) A corporation or entity engaged in a trade or
business;
(ii) A group of more than 2 individuals; or
(iii) A person who owns any other single-family
residence.
"Department" means the Department of Revenue.
"Single-family residence" means a residential property

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consisting of not more than 4 dwelling units.
"Own" means having a direct majority ownership interest in
the single-family residence.
Section 10. Excess single-family residences.
(a) There is imposed on each applicable taxpayer for each
taxable year a tax of 10% of the property value of each
single-family residence owned by the taxpayer as of the last
day of the taxable year in excess of 25 single-family
residences.
(b) The tax collected shall be deposited into the Illinois
Affordable Housing Trust Fund with the purpose of funding
housing programs for justice involved individuals and
providing rental and mortgage assistance.
Section 15. Special rule for certain sales. A
single-family residence which is sold or transferred in a
disqualified sale during the taxable year shall be treated as
a single-family residence which is owned by the applicable
taxpayer as of the last day of such taxable year.
Section 20. Reporting.
(a) The Department of Revenue shall adopt rules to
administer and enforce the provisions of this Act. Those rules
require such reporting as the Department determines necessary
or appropriate to carry out the purposes of this Act,

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including reporting with respect to:
(i) The dates on which single-family residences owned
by an applicable taxpayer were acquired by the taxpayer;
(ii) The dates on which single-family residences owned
by an applicable taxpayer are sold by the taxpayer in
accordance with this Act; and
(iii) Whether any person acquiring a single-family
residence from an applicable taxpayer owns any other
single-family residences.
(b) Any applicable taxpayer who fails to report in
accordance with this Section or who fails to include correct
information in the report shall pay a penalty of $50,000, on
notice and demand of the Department, to be deposited into the
Illinois Affordable Housing Trust Fund with the purpose of
funding housing programs for justice involved individuals and
providing rental and mortgage payment assistance.
(c) No penalty shall be imposed under this paragraph with
respect to any failure if it is shown that the failure is due
to reasonable cause and not to willful neglect.
Section 25. Sale of applicable single-family residences;
right of first refusal.
(a) An applicable taxpayer shall give notice to each
tenant of an applicable single-family residence of their
intent to sell the applicable single-family residence in which
the tenant resides. The notice under this subsection shall be

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mailed by certified mail.
(b) Before an applicable single-family residence may be
sold, the applicable taxpayer shall give notice to each tenant
of the residence, by certified mail, of any third-party bona
fide offer for sale that the taxpayer intends to accept. The
notice shall include the price and the terms and conditions of
the offer. The price shall be calculated as a single lump sum
amount that reflects (i) the total purchase price, or (ii) the
present value of any installment payments offered in lieu of
cash payments.
(c) Upon receiving notice of any third-party bona fide
offer, the tenant of that residence shall have the right to
purchase the subject property for the purpose of continuing
the use of the property as their residence. The tenant shall
(1) submit to the applicable taxpayer notice of their interest
in purchasing the applicable single-family residence; (2)
submit to the applicable taxpayer a proposed purchase and sale
agreement on substantially equivalent terms and conditions
within 45 days after receipt of notice of the bona fide offer
made; (3) obtain a binding commitment for any necessary
financing or guarantees within an additional 90 days after
execution of the purchase and sale agreement; and (4) close on
the purchase within an additional 90 days after the end of the
90-day period under item (3).
No applicable taxpayer shall unreasonably refuse to enter
into, or unreasonably delay the execution or closing on, a

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purchase and sale or lease agreement with tenants who have
made a bona fide offer to meet the price and substantially
equivalent terms and conditions of an offer for which notice
is required to be given pursuant to subsection (b). Failure of
the tenants to submit such a purchase and sale agreement
within the first 45-day period, to obtain a binding commitment
for financing within the additional 90-day period, or to close
on the purchase within the second 90-day period shall serve to
terminate the rights of the residents to purchase the
applicable single-family residence. The time periods provided
in this Section may be extended by agreement. Nothing in this
Section shall be construed to require an applicable taxpayer
to provide financing to tenants except to the extent such
financing would be provided to the third-party offeror.
(d) The right of first refusal created in this Section
shall inure to the tenants for the time periods set forth in
this Section, beginning on the date of notice to the tenants
under paragraph (b). The effective period for such right of
first refusal shall obtain separately for each substantially
different bona fide offer to purchase the applicable
single-family residence, and for each offer substantially
equivalent to an offer made more than 3 months prior to the
later offer; provided however, that in the case of a
substantially equivalent offer made by a prospective buyer who
has previously made an offer for which notice to tenants was
required by subsection (b), the right of first refusal shall

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obtain only if the subsequent offer is made more than 6 months
after the earlier offer. The right of first refusal shall not
apply with respect to any offer received by the applicable
taxpayer for which a notice is not required pursuant to
subsection (b). No right of first refusal shall apply to a
government taking by eminent domain or negotiated purchase, a
forced sale pursuant to a foreclosure by an unrelated third
party, transfer by gift, devise or operation of law, or a sale
to a person who would be an heir at law if there were to be a
death intestate of a mobile home park owner.
(e) If the tenants of the applicable single-family
residence are not the successful purchasers, the applicable
taxpayer shall provide evidence of compliance with this
Section by filing an affidavit of compliance with the
Department within 7 days after the sale or lease of the park.
Section 900. The Illinois Affordable Housing Act is
amended by changing Section 5 as follows:
(310 ILCS 65/5) (from Ch. 67 1/2, par. 1255)
Sec. 5. Illinois Affordable Housing Trust Fund.
(a) There is hereby created the Illinois Affordable
Housing Trust Fund, hereafter referred to in this Act as the
"Trust Fund" to be held as a separate fund within the State
Treasury and to be administered by the Program Administrator.
The purpose of the Trust Fund is to finance projects of the

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Illinois Affordable Housing Program as authorized and approved
by the Program Administrator. The Funding Agent shall
establish, within the Trust Fund, a General Account, a Bond
Account, a Commitment Account and a Development Credits
Account. The Funding Agent shall authorize distribution of
Trust Fund moneys to the Program Administrator or a payee
designated by the Program Administrator for purposes
authorized by this Act. After receipt of the Trust Fund moneys
by the Program Administrator or designated payee, the Program
Administrator shall ensure that all those moneys are expended
for a public purpose and only as authorized by this Act.
(b) Except as otherwise provided in Section 8(c) of this
Act, there shall be deposited in the Trust Fund such amounts as
may become available under the provisions of this Act,
including, but not limited to:
(1) all receipts, including dividends, principal and
interest repayments attributable to any loans or
agreements funded from the Trust Fund;
(2) all proceeds of assets of whatever nature received
by the Program Administrator, and attributable to default
with respect to loans or agreements funded from the Trust
Fund;
(3) any appropriations, grants or gifts of funds or
property, or financial or other aid from any federal or
State agency or body, local government or any other public
organization or private individual made to the Trust Fund;

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(4) any income received as a result of the investment
of moneys in the Trust Fund;
(5) all fees or charges collected by the Program
Administrator or Funding Agent pursuant to this Act;
(6) amounts as provided in Section 31-35 of the Real
Estate Transfer Tax Law;
(7) other funds as appropriated by the General
Assembly; and
(8) any income, less costs and fees associated with
the Program Escrow, received by the Program Administrator
that is derived from Trust Fund Moneys held in the Program
Escrow prior to expenditure of such Trust Fund Moneys.
(c) Additional Trust Fund Purpose: Receipt and use of
federal funding for programs responding to the COVID-19 public
health emergency. Notwithstanding any other provision of this
Act or any other law limiting or directing the use of the Trust
Fund, the Trust Fund may receive, directly or indirectly,
federal funds from the Homeowner Assistance Fund authorized
under Section 3206 of the federal American Rescue Plan Act of
2021 (Public Law 117-2). Any such funds shall be deposited
into a Homeowner Assistance Account which shall be established
within the Trust Fund by the Funding Agent so that such funds
can be accounted for separately from other funds in the Trust
Fund. Such funds may be used only in the manner and for the
purposes authorized in Section 3206 of the American Rescue
Plan Act of 2021 and in related federal guidance. Also, the

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Trust Fund may receive, directly or indirectly, federal funds
from the Emergency Rental Assistance Program authorized under
Section 3201 of the federal American Rescue Plan Act of 2021
and Section 501 of Subtitle A of Title V of Division N of the
Consolidated Appropriations Act, 2021 (Public Law 116–260).
Any such funds shall be deposited into an Emergency Rental
Assistance Account which shall be established within the Trust
Fund by the Funding Agent so that such funds can be accounted
for separately from other funds in the Trust Fund. Such funds
may be used only in the manner and for the purposes authorized
in Section 3201 of the American Rescue Plan Act of 2021 and in
related federal guidance. Expenditures under this subsection
(c) are subject to annual appropriation to the Funding Agent.
Unless used in this subsection (c), the defined terms set
forth in Section 3 shall not apply to funds received pursuant
to the American Rescue Plan Act of 2021. Notwithstanding any
other provision of this Act or any other law limiting or
directing the use of the Trust Fund, funds received under the
American Rescue Plan Act of 2021 are not subject to the terms
and provisions of this Act except as specifically set forth in
this subsection (c).
(d) Additional Trust Fund Purpose. The Trust Fund may also
receive moneys that are designated for deposit into the Trust
Fund as provided in the House Illinois Families Act. Those
moneys may be used as provided in that Act.
(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 7-1-23.)

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