Affordable Housing Tax Credit HB 2621, 35 ILCS 200/15-178

This new assessment program creates and preserves affordable rental homes across Illinois. Statewide, there is a shortage of approximately 108,000 affordable and available rental homes for households at 60% AMI. By embracing the tax provisions in HB 2621 Lake County can play a crucial role in eliminating this shortage, as well as the even larger shortage for lower income households. The filing deadline is June 30th. 

Eligibility – (b)(1) and (b)(2)

Property is eligible for the special assessment program if and only if all of the following factors have been met:

  •  At the conclusion of the new construction or qualifying rehabilitation, the property consists of a newly constructed multifamily building containing 7 or more rental dwelling units or an existing multifamily building that has undergone qualifying rehabilitation resulting in 7 or more rental dwelling units, and
  • The property meets the application requirements. 

Qualifications – (c)(1) and (c)(2)

The CCAO shall require that residential real property is eligible for the special assessment program if and only if one of the additional factors have been met. 

  • (c)(1) – Prior to the newly constructed residential real property or improvements to existing residential property being put in service, the owner commits that, for a period of 10 years, at least 15% of the multifamily buildings units will have rents as defined that are at or below maximum rents and are occupied by households with household incomes at or below maximum income limits.
  • (c)(2) – Prior to the newly constructed residential real property or improvements to existing residential real property located in a low affordability community being put in service, the owner commits that, for a period of 30 years after the newly constructed or improved existing residential real property are put in service, at least 20% of the multifamily building’s units will have rents as defined that are at or below maximum rents and are occupied by households with household incomes at or below maximum income limits.

Note: if a reduction in assessed value is granted under one special assessment program provided in this Section, that same property is not eligible for an additional special assessment program under this Section at the same time. 

Reduction in assessed value – (d)(1) and (d)(2) and (e)(1) and (e)(2)

The amount of the reduction in assessed value for the qualifying properties under (c)(1) shall be calculated as follows:

  • (d)(1) – If the owner commits for a period of at least 10 years that at least 15% but fewer than 35% of the multifamily building’s units have rents at or below maximum rents and are occupied by households with household incomes at or below maximum income limits, the assessed value of the property used to calculate the property tax bill shall be reduced by an amount equal to 25% of the assessed value of the property as determined by the assessor for the property in the current taxable year for the newly constructed or improved existing residential real property.
  • (d)(2) – If the owner commits for a period of at least 10 years that at least 35% of the multifamily building’s units have rents at or below maximum rents and are occupied by households with household incomes at or below maximum income limits, the assessed value of the property used to calculate the property tax bill shall be reduced by an amount equal to 35% of the assessed value of the property as determined by the assessor for the property in the current taxable year for the newly constructed or improved existing residential real property. 

For application requirements click here

To receive this special assessment on the 2023 tax bill for the 2022 assessment year applicants must submit their documentation no later than June 30, 2022.

Application processing fee is $500.00 per application, make your check payable to: Lake County Chief Assessment Office. 

Definitions
See the full Public Act for a list of all definitions