IL HB5538

Creates a housing opportunity area tax abatement program to promote economic diversity and increase access to housing near employment centers by providing tax relief for properties renting to housing choice voucher participants.

Defines "housing opportunity area" using three criteria based on county size and poverty rates: census tracts in counties with 200,000-3,000,000 residents with less than 8% poverty; certain tracts in counties with 3,000,000+ residents with 8% poverty thresholds; and tracts in large municipalities with less than 12% poverty.

Allows property owners with housing choice voucher contracts to apply annually for tax abatement on up to 2 units or 20% of total units (whichever is greater) if properties meet building codes and HUD housing quality standards.

County clerks shall abate 19% of equalized assessed value multiplied by the ratio of qualified units to total units in eligible properties, determined annually by housing authorities.

Extends the program through tax year 2024 (previously set to expire in 2014) and removes the 10-year limit on consecutive abatements; allows municipalities with fewer than 1,000,000 residents to petition for exclusion if more than 2.5% of their residential units participate in the voucher program.