Housing Action Illinois 2009 State Policy Agenda

LEGISLATION

Protections for Renters in Foreclosed Buildings

Provide additional notice to renters in buildings where a foreclosure has been filed and/or completed; require that rent be accepted and properties maintained during and after completion of foreclosure; and provide additional protections and time for renters facing eviction.

Create Foreclosure Prevention Fund

Establish a $300 surcharge on the state residential mortgage licensee annual renewal fee, which is currently $2,700. The surcharge would be used to provide grants to HUD-certified counseling agencies for pre-purchase and post- purchase home-ownership education and foreclosure prevention counseling.

Fair Housing for Seniors

Amend Illinois Assisted Living and Shared Housing Act to comply with the Fair Housing Act and Illinois Human Rights Act.

Not-for-profit Rental of Condominiums and Townhouses

Protect the ability of not-for-profit organizations with federal tax-exempt charitable status to rent condominiums and/or townhouses that they own in order to provide affordable housing.

BUDGET ITEMS

Affordable Housing in Capital Budget

Secure $100 million annual allocation in capital budget for creation and preservation of affordable housing. Capital funds would be targeted to create housing for very low-income households, including supportive housing.

Homeless Service Provider Funding

Service providers are seeking $12.4 million in funding for Emergency Food and Shelter Program for FY10 to restore cuts in prior years. After a 3% budget cut, funding in FY09 is $9.1 million. The increase would restore funding to the FY03 level of $9.7 million in inflation-adjusted dollars and add a one-year five percent cost of doing business increase.

EXISTING PROGRAMS THAT WE WILL ADVOCATE FOR IN ORDER TO IMPROVE IMPLEMENTATION

Neighborhood Stabilization Program

Monitor use of $174 million in federal funding awarded statewide to improve foreclosed properties.

Money Follows the Person Demonstration

Monitor use of $174 million in federal funding awarded statewide to improve foreclosed properties and promote strategies to create housing for very low-income households and people with disabilities.

Rededicate Affordable Housing Trust Fund to Development Loans

Advocate that Homelessness Prevention funds, community reintegration funds and other programs totaling $22.6 million be funded from General Revenue Funds or other sources to increase funding available for housing development loans and restore the Trust Fund to it’s traditional use.

Rental Housing Support Program

Improve program implementation in one or more areas, including increasing appropriations and administrative fees, adjusting rent levels, and/or adding special needs targeting provisions.

Predatory Lending Database Program

Monitor volume of borrowers referred for file review and use of funding stream to build capacity of HUD-certified housing counseling agencies participating in Predatory Lending Database Program in Cook County; consider expansion of triggers for file review and/or expansion of fund uses depending on PLD program volume and market conditions.

STATE FISCAL REFORM

Support efforts to address Illinois’ structural deficit by modernizing the Illinois tax system, so it grows with the economy and is not overly reliant on the poor and middle class for revenue. Increasing the income tax in conjunction with the expansion of refundable credits and the dependent exemption, and the expansion of the sales tax base to include services are examples of the types of reforms that are necessary.

January 15, 2009—Subject to Change