Summary as Introduced
Amends the Affordable Housing Planning and Appeal Act. In provisions requiring the Illinois Housing Development Authority to determine which local governments are exempt from the requirements of the Act, requires the Authority to collect data on owner-occupied and rental units for each local government as follows: (1) by totaling the number of owner-occupied housing units in each local government that are affordable to households with a gross household income that is less than 80% of the median household income and is between 80% and 140% of the median household income within the county or primary metropolitan statistical area; and (2) by totaling the number of rental units in each local government that are affordable to households with a gross household income that is less than 60% of the median household income and is between 80% and 140% of the median household income within the county or primary metropolitan statistical area. Provides that data collected for the 80% AMI to 140% AMI households is to be used for informational purposes and shall not factor into the determination of exempt local governments.
Staff Analysis
House Bill 3616 amends the Affordable Housing Planning and Appeal Act to modify how the Illinois Housing Development Authority (IHDA) gathers and utilizes data when determining whether local governments are exempt from the Act’s affordable housing planning requirements.
Key Provisions:
1. Expanded Data Collection Requirements:
The amendment requires IHDA to collect more granular data on housing affordability by income category. Specifically:
• For owner-occupied housing units, IHDA must calculate:
• The number of units affordable to households earning less than 80% of the area median income (AMI).
• The number of units affordable to households earning between 80% and 140% of AMI.
• For rental units, IHDA must calculate:
• The number of units affordable to households earning less than 60% of AMI.
• The number of units affordable to households earning between 80% and 140% of AMI.
2. Informational Use of Middle-Income Data:
While IHDA must now collect and report data on units affordable to households earning between 80% and 140% of AMI (often referred to as the “missing middle”), the amendment explicitly states that this data is for informational purposes only. It does not factor into exemption determinations under the Act, which remain based solely on housing affordability at lower income thresholds (under 80% of AMI for owner-occupied units, under 60% for rentals).
Purpose and Impact:
The amendment aims to improve transparency and understanding of housing affordability across a broader income spectrum, particularly for working- and middle-class households that may face housing cost pressures but are not typically eligible for subsidized housing.
By excluding this “missing middle” data from exemption calculations, the bill preserves the original intent of the Act, which is to ensure housing availability for lower-income populations, while still encouraging data-driven policy discussions about broader affordability challenges.
Local governments and policymakers will have access to a more detailed picture of housing availability across income groups, which could inform local planning, zoning, and development decisions, even though it won’t affect compliance status under the Act.
The amendment enhances IHDA’s data collection responsibilities to include middle-income affordability figures while maintaining the current exemption criteria based on lower-income housing availability. It reflects growing interest in addressing housing needs for those who earn too much to qualify for subsidized housing but still struggle with housing costs.
House Amendment 1 (Adopted)
House Amendment 1 to the Affordable Housing Planning and Appeal Act updates the legislative findings section by expanding the stated goals and priorities of the Act. It does so by acknowledging additional housing-related challenges and broadening the scope of targeted populations beyond those traditionally considered low-income.
Key updates include:
1. The original findings (points 1 through 3) emphasize the general shortage of affordable, accessible, safe, and sanitary housing in Illinois; the need for workforce and retirement housing; and the role of local governments in facilitating affordable housing opportunities.
2. The amendment adds two new findings (points 4 and 5) focused on what is referred to as the “missing middle”:
• This group includes individuals and families earning between 80% and 140% of the area median income—typically too wealthy to qualify for traditional affordable housing subsidies but not wealthy enough to afford market-rate housing in many communities.
• The new findings argue that increasing housing options for this group helps preserve overall housing affordability, reduce homelessness, and promote investment in inclusive, mixed-income communities.
• The importance of studying both the availability and affordability of housing for this income group is also highlighted as key to addressing workforce and retirement housing needs.
Overall, the amendment shifts the narrative from focusing solely on low-income housing to also include middle-income households. It emphasizes proactive planning and research as essential tools for fostering housing stability and economic diversity throughout Illinois communities.
The amendment also amends Section 20 of the Affordable Housing Planning and Appeal Act to both reaffirm and expand how the Illinois Housing Development Authority (IHDA) determines whether a local government is exempt from the requirements of the Act. It introduces new metrics to better reflect affordability across a broader range of income levels and improves data transparency and accountability.
Key Provisions and Analysis:
1. Exemption Determinations (Existing Statutory Framework):
The IHDA is responsible for determining whether a local government is “exempt” or “non-exempt” from the Act based on:
• The total number of year-round housing units in the jurisdiction (from the U.S. Census Bureau),
• The number of affordable owner-occupied units (affordable to households earning <80% of area median income),
• The number of affordable rental units (affordable to households earning <60% of area median income),
• The combined percentage of these affordable units relative to the total housing stock.
Local governments that exceed a certain percentage threshold are deemed exempt and are not subject to state-level affordable housing planning mandates.
2. Updates to Publication and Notification Process:
The amendment requires IHDA to publish updated exemption determinations and underlying data at least once every five years. It must notify non-exempt local governments and provide the data used to make the determination.
3. Appeal Rights:
Local governments and developers are given the right to appeal IHDA’s exemption determination in the context of a broader affordable housing appeal, as provided for under Section 30 of the Act.
4. Additional Affordability Metrics Introduced:
The change proposed in House Amendment 1 requires IHDA to conduct new calculations in addition to the exemption determination:
• The percentage of units affordable to extremely low-income households (≤30% of median income), both owner-occupied and rental.
• The percentage of units affordable to the “missing middle”, defined as:
• Owner-occupied housing affordable to those earning 80–140% of the area median income.
• Rental housing affordable to those earning 60–140% of the area median income, with further breakdowns at 60–80% and 80–140%.
These added calculations aim to give a fuller picture of the affordability landscape across different income brackets, particularly for working- and middle-class residents who may not qualify for traditional affordable housing programs but still face housing cost burdens.
House Amendment 2
House Amendment 2 to HB 3616 makes several significant changes to the original bill, particularly in how the Illinois Housing Development Authority (IHDA) collects and publishes housing affordability data. While it retains the existing framework for determining whether a local government is exempt from the Affordable Housing Planning and Appeal Act, it expands the scope of data collection and public reporting in the following ways:
1. It expands the legislative findings to explicitly recognize the importance of housing affordability for households earning between 80% and 140% of the area median income—commonly referred to as the “missing middle.” This group is identified as critical to the preservation of affordable housing, prevention of homelessness, and development of mixed-income communities.
2. The amendment maintains the current method IHDA uses to determine exemption status based on the availability of housing affordable to lower-income households (less than 80% of AMI for owner-occupied housing and less than 60% of AMI for rental housing).
3. It requires IHDA to also calculate and publish additional data on:
• Extremely low-income housing (at or below 30% of AMI),
• Housing affordable to the “missing middle,” including:
• Owner-occupied units affordable to those earning between 80% and 140% of AMI,
• Rental units affordable to those earning between 60% and 140% of AMI, with further breakdowns at 60–80% and 80–140%.
4. These new data points must be published at least once every five years for each local government and for the state as a whole, improving public access to housing affordability metrics across multiple income levels.
5. The amendment makes clear that the newly required data on extremely low-income and middle-income housing is for informational purposes only and will not be used in determining whether a local government is exempt from the Act’s requirements.
In summary, the amendment enhances transparency and planning capacity by expanding IHDA’s data reporting obligations while preserving the existing exemption criteria for local governments under the Act. It provides a broader view of housing affordability but limits its regulatory application.
House Amendment 1