“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Two weekends now with shocking news events on the Presidential campaign trail. I don’t think we need to cover either as there is more than enough news out there to sort through. We continue on with a little lighter than usual update as our summer slowdown continues. Looking forward to seeing some of you at our golf outing this upcoming Monday!
*Government Affairs Roundup brought to you by CITGO*
NLRB Drops Joint Employer Rule
In a complete victory for business and workers, the National Labor Relations Board (NLRB) dropped its appeal of a federal court decision blocking its joint employer rule.
In November 2023, the U.S. Chamber, along with a coalition of business groups, sued the NLRB over this regulation, and in March, a U.S. District Court vacated the rule before it could be implemented. The NLRB appealed this decision.
By curbing government micromanagement, the decision allows businesses of all sizes—including franchises, contractors, and their employees—to maintain the freedom to operate effectively for their customers while supporting their workforce. Under the NLRB’s rule, businesses would have been held liable for workers they didn’t employ at workplaces they didn’t own or control.
Illinois Comptroller Talks Pension Changes
The Illinois Comptroller says she is confident that the condition of Illinois’ pension system is headed in the right direction. The state’s unfunded pension liabilities have been a sore thumb for decades. The Commission of Government Forecasting and Accountability reported that Illinois’ pension system experienced growth in debt last year of about $2.5 billion.
Illinois Comptroller Susana Mendoza recently made the first pension prepayment as allowed under a new law. The change allows Mendoza to pay more into state pensions earlier in the year. “The pre-payment of monthly state contributions allows the retirement systems to keep assets working to generate investment returns longer, improving the financial condition of the systems and potentially reducing required state contributions in the future.,” said Mendoza.
She added that it is anticipated that pre-paying $422 million of the state’s monthly pension contribution will allow funds to remain invested for a few months longer, generating an additional $7 million.
In his fiscal year 2025 budget proposal presentation, Gov. J.B. Pritzker said adding three additional years to the funding payment plan will get the state “on a path to 100% funded like peer states.” The current goal was enacted by Gov. Jim Edgar and the Illinois General Assembly in 1994, which created a 50-year plan to get the state to a 90% funding ratio by 2045.
Last January, the Illinois Supreme Court endorsed the consolidation of local police and firefighter pension systems. The ruling dealt with a law Pritzker signed in 2019 intended to boost investment power and cut administrative spending for hundreds of municipal funds.
Mendoza said she is pleased the General Assembly and the Governor approved the change in Illinois law. “There might be some people out there who just think that we just pay bills and not think about it,” said Mendoza to The Center Square. “Our office is always continuously looking creatively on how we can add more value for Illinois taxpayers.”
Illinois Housing Development Authority Announce 2024 Affordable Housing Tax Credit Developments
Governor JB Pritzker and the Illinois Housing Development Authority (IHDA) Board announced awards totaling $23.8 million in federal Low-Income Housing Tax Credits (LIHTC) that will finance the creation and preservation of 16 affordable housing developments in 10 counties throughout Illinois. Once completed, the developments will offer 792 affordable units for low- to moderate-income families, seniors, and persons with special needs.
“Everyone deserves access to stable and affordable housing – no matter their zip code,” said Governor JB Pritzker. “Thanks to our federal partners and the LIHTC program, my administration can further combat homelessness by incentivizing housing developers to creatively build or preserve additional affordable housing units for low-income individuals statewide.”
Developments funded this year range from the adaptive reuse of a closed school in Decatur to the rehabilitation of a shuttered bank in Chicago that, without LIHTC, would never have been financially feasible to convert to affordable housing. Amongst the 16 developments, 52 of the units are reserved for residents making less than 80% of the Area Median Income (AMI), 372 are for residents making less than 60% AMI, 171 of the units are for tenants at or below 50% AMI, and 197 units set aside for residents making below 30% AMI who often face housing insecurity.
“Access to a safe, decent and affordable place to live is a fundamental human right that everyone in this state can and should have,” said IHDA Executive Director Kristin Faust. “All 16 of these developments will allow for individuals and families to live closer to where they work and for seniors to continue to live in the communities they have called home for decades. IHDA will continue to find new and innovative ways to create additional housing opportunities for low-income households. I am grateful of the work we do every day to underwrite these projects so thousands in Illinois can have a new, affordable place to call home every year.”
This year’s developments are the first to be awarded under the 2024-2025 Qualified Allocation Plan (QAP) – the rules and regulations that govern Illinois’ LIHTC program. IHDA incentivized three core policy priorities in the updated QAP including statewide equity, helping vulnerable populations, and sustainability and energy efficiency.
New this year, IHDA incorporated a Permanent Supportive Housing (PSH) Track to expand upon Governor Pritzker’s “Home Illinois” housing initiative that seeks to expand affordable housing options for individuals in high-risk situations and provide comprehensive support for individuals experiencing homelessness. The PSH Track consists of a separate competitive scoring criteria for developments that set aside at least 30 percent of their LIHTC units for vulnerable populations. IHDA has been participating with other state agencies in a holistic approach to help Illinois reach “functional zero” homelessness and this is the first time PSH has been incentivized in the QAP. Three of the developments awarded credits will include PSH units to help stop the cycle of homelessness for vulnerable Illinoisans.
LIHTC allows for developers to utilize federal, state, local, and private resources to build brand-new units or turn vacant or abandoned properties into modern affordable housing that will be viable for a generation. The total investment awarded by the IHDA Board for the 16 developments includes $23.8 million in 9% LIHTC that will generate an estimated $208 million in private capital and an additional $45.1 million in federal and state subordinate resources.
Over the past five years, IHDA has financed the creation and/or preservation of 157 developments with 8,639 affordable housing units through LIHTC. This public-private program is the largest generator of affordable housing in that nation and allows for IHDA to continue to produce new housing annually for low-income renters across Illinois.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct