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"People need housing
that's safe, dependable and affordable," the governor said. "They
need to live near their jobs and their schools. Affordable housing
is a critical element to helping hardworking people get ahead. Our
new program will help families get affordable housing and build
better lives. Our program will also help senior citizens and people
with disabilities find housing in their communities." Sponsored by
Sen. Iris Martinez, D-Chicago, and Rep. Julie Hamos, D-Evanston,
Senate Bill 75 creates the Rental Housing Support Program, which
is expected to generate $30 million in its first year of operation
to help as many as 5,000 families. Less than half the states in the
nation have a rental assistance program, and only two states,
Massachusetts and Connecticut, provide long-term rental support.
"The creation of a long-term rental assistance program is a key
strategy of the governor's housing plan ‘Building for Success,' the
first statewide comprehensive housing plan in Illinois," said Kelly
King Dibble, executive director of the Illinois Housing Development
Authority and co-chair of the governor's Affordable Housing Task
Force. "IHDA will work with local governments, housing authorities
and community groups to use this new resource to meet the affordable
housing needs of Illinois residents."
Through the Rental Housing Support Program, landlords throughout
the state will receive grants to make rental units affordable to
households that earn less than 30 percent of the area median income,
or approximately $19,000 per year for a family of four. The Illinois
Housing Development Authority will award funds to local
administering agencies, which can be local housing authorities,
municipalities or community groups. The local administering agencies
will then contract with landlords who apply to the Rental Housing
Support Program. The agencies will also help determine tenant
eligibility and inspect every unit included in the program. Tenants
will pay a flat rent of approximately 30 percent of their income,
and the local administering agency will pay the balance of the rent
negotiated with the landlord. As required by the legislation, a
minimum of 10 percent of the funds will finance new development, and
half of the funds will be dedicated to affordable housing for people
earning less than 15 percent of the area median income. The new
housing is paid for by a $10 collected fee from real estate document
recordings.
"This landmark legislation will help thousands of Illinois
families create a better future," said Hamos, sponsor in the House.
"Many people have worked diligently to bring this program to life.
Today, as we celebrate this achievement, we renew our commitment to
quality, affordable housing for the people of Illinois."
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 "In the face of decreased federal support for affordable rental
housing, the Rental Housing Support Program is needed now more than
ever," said Martinez, sponsor in the Senate. "I commend Governor
Blagojevich, members of the General Assembly, housing advocates and
everyone who dedicated their time, energy and insight to create this
program."
"We thank the governor for signing this bill that will make
housing affordable for thousands of extremely low-income families
throughout Illinois," said Julie Dworkin, director of policy for the
Chicago Coalition for the Homeless, the advocacy group that led the
effort to win passage of the bill. "The new law will assist
households that are in danger of becoming homeless because they are
paying too much of their income for rent. Enacting this legislation
makes Illinois a national leader in the fight for affordable
housing."
The Rental Housing Support Program joins several other measures
as part of the governor's commitment to affordable housing. This
includes the Illinois Affordable Housing Task Force and Illinois'
first comprehensive housing plan, Building for Success, which
brought increased awareness to the affordable housing needs of
Illinois residents. In addition Blagojevich signed the Affordable
Housing Planning and Appeals Act and the Federally Subsidized
Housing Preservation Act into law, extended the Illinois affordable
housing tax credit, and increased funding for supportive housing for
people who are homeless or mentally ill. These actions have brought
a new focus on the state's housing needs and have expanded the
resources available to create and preserve quality, affordable
homes.
U.S. Department of Housing and Urban Development guidelines
define affordable rent as 30 percent of monthly income. For a
full-time worker who earns the minimum wage, affordable rent is $338
per month, and for senior citizens living on Social Security income
it is $262 per month. According to the guidelines, the fair market
rent for a two-bedroom apartment in Carbondale is $500. In
Springfield it is $567, and in Chicago it is $906.
Senate Bill 75 took effect Tuesday.
[News release from the governor's office]
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