101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2346

 

Introduced , by Rep. Jehan Gordon-Booth

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Municipal Land Bank Authorities Division in the Illinois Municipal Code. Allows a municipality to create a land bank authority to use available resources to facilitate the return of vacant, abandoned, and tax-delinquent properties to productive use in order to combat community deterioration, create economic growth, and stabilize the housing and job market. Provides that the land bank authority is an agency of and funded by the municipality and that the lank bank authority's board of directors are accountable to the city council of the municipality. Contains provisions relating to the appointment of members to the land bank authority's board of directors and operation of the land bank authority. Allows the hiring of an executive director and other staff. Provides that the municipality shall defend and indemnify the land bank authority's board of directors under specified circumstances.


LRB101 04954 AWJ 49963 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2346LRB101 04954 AWJ 49963 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by adding
5Division 15.5 in Article 11 as follows:
 
6    (65 ILCS 5/Div. 15.5 heading new)
7
Division 15.5. Municipal Land Bank Authority

 
8    (65 ILCS 5/11-15.5-5 new)
9    Sec. 11-15.5-5. Purpose. The purpose of this Division is to
10allow a municipality to create a land bank authority that will
11use available resources to facilitate the return of vacant,
12abandoned, and tax-delinquent properties to productive use
13thereby combating community deterioration, creating economic
14growth, and stabilizing the housing and job market.
15    The land bank authority will acquire, hold, and transfer
16interest in real property throughout the municipality as
17approved by the board of directors of the authority for the
18following purposes: to promote redevelopment and reuse of
19vacant, abandoned, or tax-delinquent properties; support
20targeted efforts to stabilize neighborhoods; and stimulate
21residential, commercial, and industrial development all in
22ways that are consistent with goals and priorities established

 

 

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1by this Division, local government partners, and other
2community stakeholders.
 
3    (65 ILCS 5/11-15.5-10 new)
4    Sec. 11-15.5-10. Definitions. As used in this Division:
5    "Authority" means the land bank authority created by a
6municipality.
7    "Board of directors" means the board of directors of a land
8bank authority.
9    "City council" means the city council or board of trustees
10of a municipality that may establish or has established a land
11bank.
12    "Director" means the executive director of a land bank
13authority.
14    "Fiscal year" means the fiscal year of the land bank, which
15is the same as the municipality's fiscal year.
16    "Good cause" includes inefficiency, neglect of duty,
17malfeasance, or any cause which renders a director or member of
18the board of directors unfit for the position or unable to
19perform the duties of the position or the scope of the work.
20    "Land bank" means a land bank authority.
21    "Mayor" means the mayor or village president of a
22municipality that has created a land bank.
23    "Member" means a member of the board of directors.
24    "Municipality" or "municipal" means the municipality that
25may establish or has established a land bank.

 

 

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1    "Person" means any individual, corporation, limited
2liability corporation, organization, government, governmental
3subdivision or agency, business trust, estate, trust,
4partnership, association, and any other legal entity.
5    "Real property" means all land and the buildings on the
6land, all things permanently attached to land or to the
7buildings on the land, and any interest existing in, issuing
8out of, or dependent upon land or the buildings on the land.
 
9    (65 ILCS 5/11-15.5-15 new)
10    Sec. 11-15.5-15. Establishment. A municipality may, by
11ordinance, establish a land bank authority as an agency of the
12municipality. All personnel, facilities, equipment, and
13supplies within the land bank shall be governed by a board of
14directors as provided in this Division. The board of directors
15shall be accountable to the city council. The land bank shall
16be funded by the municipality.
 
17    (65 ILCS 5/11-15.5-20 new)
18    Sec. 11-15.5-20. Principal office. The principal office of
19the land bank shall be at a location within the municipality,
20as determined by the board of directors.
 
21    (65 ILCS 5/11-15.5-25 new)
22    Sec. 11-15.5-25. Title to land bank assets. Except as
23otherwise provided in this Division, the municipality shall

 

 

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1hold title to all real property controlled by the land bank.
 
2    (65 ILCS 5/11-15.5-30 new)
3    Sec. 11-15.5-30. Tax-exempt status. The activities of the
4land bank are governmental functions carried out by an
5instrumentality or political subdivision of the State as
6described in Section 115 of Title 26 of the United States
7Internal Revenue Code, or any corresponding provisions of any
8future tax code. The activities of the land bank are
9governmental functions carried out by a political subdivision
10of the State, exempt to the extent provided under Illinois law
11from taxation by this State, including, but not limited to, ad
12valorem property tax exemption under the Property Tax Code.
 
13    (65 ILCS 5/11-15.5-35 new)
14    Sec. 11-15.5-35. Waiver of special assessments. Upon the
15request of the land bank and for the purposes of fostering the
16goals and objectives of the land bank, the municipality, as
17permitted by law, may extinguish special assessments levied by
18it prior to the date of acquisition by the land bank against
19real property controlled by the land bank, and may seek to
20exempt real property controlled by the land bank from the
21imposition of special assessments.
 
22    (65 ILCS 5/11-15.5-40 new)
23    Sec. 11-15.5-40. Compliance with law. The land bank shall

 

 

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1comply with all applicable federal and State laws, rules,
2regulations, and orders.
 
3    (65 ILCS 5/11-15.5-45 new)
4    Sec. 11-15.5-45. No third-party beneficiaries. Except as
5otherwise provided, this Division does not create for any
6person, other than the municipality, and is not intended to
7create by implication or otherwise, a direct or indirect
8benefit, obligation, duty, promise, right to be indemnified
9(such as contractually, legally, equitably, or by
10implication), right to be subrogated to the municipality's
11rights under this Division, or any other right or benefit.
 
12    (65 ILCS 5/11-15.5-50 new)
13    Sec. 11-15.5-50. Board of directors. The land bank shall be
14governed by a board of directors that shall be appointed by the
15mayor, subject to approval by the city council, no later than
1645 days after the effective date of the ordinance creating the
17authority. Members of the board of directors shall be residents
18of the municipality.
 
19    (65 ILCS 5/11-15.5-55 new)
20    Sec. 11-15.5-55. Appointment of members. Candidates for
21the board of directors shall be selected from the following
22categories:
23        (1) the mayor to serve as an ex officio member with

 

 

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1    voting rights. The ex officio member shall serve as a
2    liaison between the city council and the board of
3    directors;
4        (2) 2 city council members, not including the mayor;
5        (3) one representative from the municipality as
6    recommended by the mayor;
7        (4) one representative from the municipality's
8    economic development agency, if any;
9        (5) one representative from a community development
10    finance institution;
11        (6) one representative from the banking community;
12        (7) one representative from a local or State
13    association of realtors;
14        (8) one representative from the non-profit housing
15    development community;
16        (9) one representative from the commercial or
17    industrial development community;
18        (10) one representative from a community organization
19    in the municipality, if any;
20        (11) one representative from the legal community; and
21        (12) one representative with commercial retail
22    development experience.
23    If an initial appointment is not made under paragraph (4)
24or (10) because there is not a municipal economic development
25agency or community organization in the municipality, an
26appointment for those positions, if any, shall be made as

 

 

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1provided in subsection (b) of Section 11-15.5-75.
 
2    (65 ILCS 5/11-15.5-60 new)
3    Sec. 11-15.5-60. Term of office.
4    (a) Except as otherwise provided in this Section or Section
511-15.5-75, the members of the board of directors shall be
6appointed for a term of 3 years.
7    (b) The ex officio member shall serve until the expiration
8of his or her term as mayor.
9    (c) The initial members, except as provided in subsection
10(b), shall serve terms as follows as determined by lot at the
11board of directors first meeting next following all member
12appointments:
13        (1) Three of the members shall serve a term that
14    expires on the January 1 next following the establishment
15    of the land bank, except that these members shall serve
16    until the 2nd January 1 next following the establishment of
17    the land bank if the land bank was established after July
18    1.
19        (2) Three of the members shall serve a term that
20    expires on the January 1 next following the expiration of
21    the members' terms under paragraph (1).
22        (3) Two of the members shall serve a term that expires
23    on the January, 1 next following the expiration of the
24    members' terms under paragraph (2).
25        (4) Members appointed under paragraph (4) or (10) of

 

 

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1    Section 11-15.5-55, if any, shall serve a term that expires
2    on the January 1 next following the expiration of the
3    members' terms under paragraph (3).
4    (d) After the initial appointed terms under subsection (c),
5each member, other than the ex officio member, shall serve a
6term of 3 years.
7    (e) A member shall serve until a successor is appointed and
8has qualified.
9    (f) A member who is appointed to fill a vacancy, other than
10a vacancy caused by the expiration of the predecessor's term,
11shall serve until the expiration of his or her predecessor's
12term.
13    (g) Other than the ex officio member, a member may not
14serve more than 2 consecutive full terms.
 
15    (65 ILCS 5/11-15.5-65 new)
16    Sec. 11-15.5-65. Officers.
17    (a) The board of directors shall select an initial
18chairperson from among the initial members. The chairperson
19shall serve a 2-year term as chairperson and, thereafter, the
20board of directors shall annually elect a chairperson from
21among its members. A member may be elected to serve successive
22terms as chairperson.
23    The chairperson shall preside at meetings of the board of
24directors and is entitled to vote on all matters before the
25board of directors.

 

 

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1    (b) The board of directors may appoint from its members a
2member to serve as the land bank secretary and appoint
3additional officers from its members as it may deem
4appropriate.
 
5    (65 ILCS 5/11-15.5-70 new)
6    Sec. 11-15.5-70. Removal. A member may be removed for good
7cause by the mayor prior to the expiration of the member's term
8of appointment. The mayor shall provide written notice to that
9member, the director, and the city of council of the removal of
10that member from the board of directors. The notice shall state
11the specific grounds which constitute cause for removal. The
12member, in receipt of a notice, may request to appear before
13the city council and present reasons in support of his or her
14retention. Thereafter, the city council shall vote upon whether
15there are sufficient grounds to remove that member from office.
16The mayor shall notify the member of the final action of the
17city council.
 
18    (65 ILCS 5/11-15.5-75 new)
19    Sec. 11-15.5-75. Vacancies.
20    (a) Any vacancy on the board of directors caused by death,
21resignation, disqualification, or removal shall be filled by
22the mayor as soon as practicable, but not to exceed 60 days
23following the occurrence of the vacancy. The vacancy shall be
24filled for the remainder of the unexpired term in the same

 

 

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1manner as the original appointment. Expired terms shall be
2filled by the mayor within 60 days of the term's expiration in
3the same manner as the original appointment.
4    (b) If an initial appointment is not made under paragraph
5(4) or (10) of Section 11-15.5-55, that position is considered
6vacant and an appointment may be made by the mayor to that
7position when a municipal economic development agency or
8community organization in the municipality is established. The
9person appointed to fill the vacancy shall serve until the
10expiration of the initial term under paragraph (4) or (10) of
11subsection (c) of Section 11-15.5-60 or the expiration of a
12subsequent 3-year term if the initial term would have already
13expired.
 
14    (65 ILCS 5/11-15.5-80 new)
15    Sec. 11-15.5-80. Meetings. The board of directors shall
16conduct its first meeting no later than 60 days after the
17appointment of the board of directors. The place, date, and
18time of the land bank meetings shall be determined at the
19discretion of the board of directors. All meetings of the board
20of directors shall comply with the Open Meetings Act.
 
21    (65 ILCS 5/11-15.5-85 new)
22    Sec. 11-15.5-85. Initial bylaws and policies and
23procedures. The board of directors shall adopt bylaws and
24policies and procedures consistent with the provisions of this

 

 

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1Division no later than 120 days after the first meeting of the
2board of directors.
 
3    (65 ILCS 5/11-15.5-90 new)
4    Sec. 11-15.5-90. Quorum; voting. A quorum is necessary for
5the transaction of any business by the board of directors. A
6majority of the members of the board of directors shall
7constitute a quorum. The board of directors shall act by a
8majority vote of the members at a meeting at which a quorum is
9present, except as otherwise provided in this Division.
10Presence for both quorum and voting at the land bank shall be
11articulated by the board of directors in its bylaws or
12procedures in a manner consistent with the Open Meetings Act.
 
13    (65 ILCS 5/11-15.5-95 new)
14    Sec. 11-15.5-95. Records of meetings. Minutes of all
15meetings of the board of directors and its committees shall be
16made and maintained as required by the Open Meetings Act.
 
17    (65 ILCS 5/11-15.5-100 new)
18    Sec. 11-15.5-100. Board of directors responsibilities. The
19board of directors shall:
20        (1) ensure that all personnel matters are conducted
21    free from any political interference and in accordance with
22    all applicable laws;
23        (2) ensure that all operations, including contractual

 

 

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1    matters, are conducted free from any political
2    interference; and
3        (3) ensure efficiency in service delivery and sound
4    fiscal management of all aspects of the land bank including
5    the collection of all revenues from all sources.
 
6    (65 ILCS 5/11-15.5-105 new)
7    Sec. 11-15.5-105. Board of directors actions. The board of
8directors shall do all of the following:
9        (1) adopt, amend, or repeal rules and policies and
10    procedures governing the board of directors and its actions
11    and meetings and adopt, amend, or repeal policies and
12    procedures to implement day-to-day operation of the land
13    bank, including policies governing any staff of the land
14    bank;
15        (2) elect additional officers, including, but not
16    limited to, initial officers who shall be elected at the
17    first meeting of the board of directors in accordance with
18    the bylaws;
19        (3) provide for a system of accounting;
20        (4) adopt or amend the land bank's budget to submit
21    annually to the municipality for approval and adoption in a
22    time frame mandated by the municipality's treasurer or
23    other financial officer;
24        (5) adopt, amend, or repeal policies and procedures for
25    contracting and procurement;

 

 

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1        (6) commission, collect, and receive data from public,
2    private, professional, and volunteer sources to compile an
3    inventory and analysis of desirable properties for
4    acquisition;
5        (7) establish banking arrangements for the land bank;
6    and
7        (8) organize and reorganize the executive,
8    administrative, clerical, and other departments of the
9    land bank and fix the duties, powers, and compensation of
10    all employees, agents, and consultants of the land bank
11    hired pursuant to Section 11-15.5-125.
 
12    (65 ILCS 5/11-15.5-110 new)
13    Sec. 11-15.5-110. Fiduciary duty. The members of the board
14of directors are under a fiduciary duty to conduct the
15activities and affairs of the land bank in the best interests
16of the residents of the municipality, including the safekeeping
17and use of all land bank moneys and assets. The members of the
18board of directors shall discharge their duties in good faith
19with the care an ordinarily prudent person in a like position
20would exercise under similar circumstances.
 
21    (65 ILCS 5/11-15.5-115 new)
22    Sec. 11-15.5-115. Compensation. The members of the board of
23directors shall receive no compensation for the performance of
24their duties. A member may engage in private or public

 

 

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1employment or in a profession or business, except to the extent
2prohibited by law or municipal ordinance. The land bank may
3reimburse members of the board of directors for actual and
4necessary expenses incurred in the discharge of their official
5duties as provided by the board of directors.
 
6    (65 ILCS 5/11-15.5-120 new)
7    Sec. 11-15.5-120. Executive director. The board of
8directors shall retain the professional services of an
9individual to perform the duties of an executive director on a
10contractual basis with the advice and consent of the mayor. The
11director is not an employee of the land bank or municipality.
12The director shall administer the land bank in accordance with
13the operating budget approved by the municipality, general
14policy guidelines established by the board of directors, other
15applicable governmental procedures and policies, and this
16Division. The director is responsible for the day-to-day
17operations of the land bank; the control, management, and
18oversight of the land bank's functions; and supervision of all
19land bank contractual agreements. All terms and conditions of
20the director's service shall be specified in a written contract
21between the director and the board of directors. The director
22may be removed by the mayor or the board of directors, for good
23cause, prior to the expiration of the director's contract. The
24board of directors may delegate to the director any powers or
25duties it considers proper under such terms, conditions, and to

 

 

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1the extent that the board of directors may specify.
 
2    (65 ILCS 5/11-15.5-125 new)
3    Sec. 11-15.5-125. Staffing services.
4    (a) The board of directors may approve contracts for
5staffing as requested by the director that are deemed necessary
6to carry out the duties and responsibilities of the land bank
7and in accordance with the policies and procedures established
8by the board of directors. Such staff shall be retained
9pursuant to contracts entered into in accordance with the
10procurement rules established by the board of directors.
11    (b) If the board of directors elects to have staff, staff
12employed by the board of directors for the land bank not
13otherwise retained through the board of directors' procurement
14rules shall be recruited or employed through the municipality
15employment plan, if any, and are municipal employees.
 
16    (65 ILCS 5/11-15.5-130 new)
17    Sec. 11-15.5-130. Ethics and oversight. The land bank and
18its director, board of directors, employees, and contractors
19are subject to municipal ethics rules or ordinances and
20municipal ethics officers, if any.
 
21    (65 ILCS 5/11-15.5-135 new)
22    Sec. 11-15.5-135. Indemnification.
23    (a) Except as otherwise provided in this Section, the

 

 

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1municipality shall defend and indemnify the land bank and its
2board members, officers, and employees from all claims or
3judgments arising out of their activities as board members,
4officers, or employees for all negligence claims and claims or
5judgments arising out of land bank activities performed on
6behalf of the municipality.
7    (b) The municipality is not obligated to indemnify the land
8bank or its members for:
9        (1) Punitive damages or liability arising out of
10    conduct which is based upon willful or wanton conduct.
11        (2) Conduct which is outside of the scope of the land
12    bank's authority.
13        (3) A settlement or judgment in which the municipality
14    did not participate.
15        (4) The defense of any criminal or disciplinary
16    proceeding.
17    (c) To be eligible for defense and indemnification, the
18land bank or its board members, officers, or employees shall:
19        (1) notify, within 5 days of receipt, the city council
20    and the State's Attorney's Office in the county, or one of
21    the counties, in which the municipality is located of any
22    claim made against the board member, officer, or employee
23    or land bank and deliver all written demands, complaints,
24    and other legal papers received by the practitioner with
25    respect to such claim to the city council;
26        (2) cooperate with the State's Attorney's Office in the

 

 

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1    investigation and defense of any claim against the
2    municipality or any board member, officer, or employee,
3    including, but not limited to, preparing for and attending
4    depositions, hearings, and trials and otherwise assisting
5    in securing and giving evidence; and
6        (3) promptly notify the city council and the State's
7    Attorney's Office of any change in the member's address or
8    telephone number.
9    (d) All actions shall be defended by the State's Attorney
10in the county in which the municipality is located. If the
11municipality is located in more than one county, the State's
12Attorney notified under paragraph (1) of subsection (c) shall
13defend the action unless the State's Attorney from another
14county in which the municipally is located agrees that he or
15she will defend the action. Decisions to settle indemnified
16claims shall be made by the municipality or the State's
17Attorney's Office, as delegated by the municipality, and shall
18not require the consent of the indemnified member, officer, or
19employee. If a board member, officer, or employee declines
20representation by the State's Attorney's Office, the
21municipality shall have no obligation to defend or indemnify
22the member.
 
23    (65 ILCS 5/11-15.5-140 new)
24    Sec. 11-15.5-140. General powers. The land bank has the
25authority to do all things necessary or convenient to implement

 

 

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1the purposes, objectives, and provisions of this Division or
2the purposes, objectives, and powers granted to the land bank
3by any federal, state, or local government unit consistent with
4the municipality's annual budget, including, but not limited
5to, the following:
6        (1) to adopt, amend, and repeal bylaws for the
7    regulation of its affairs and the conduct of its business;
8        (2) to acquire by purchase, donation, or other
9    transfers and to hold, lease, manage, and dispose of real
10    property of every kind and character, or any interest
11    therein, in furtherance of the public purposes of the land
12    bank;
13        (3) to discharge and extinguish real property taxes
14    owed to the municipality, State, or unit of local
15    government pursuant to an agreement with the municipality,
16    State, or unit of local government that encumber real
17    property owned by the municipality through the land bank,
18    as permitted by the Property Tax Code or other applicable
19    law;
20        (4) to pay any tax or special assessment due on real
21    property acquired or owned by the land bank;
22        (5) to acquire, accept, or retain equitable interests,
23    security interests, or other interests in real property or
24    other fixtures by loan agreement, note, mortgage, deed to
25    secure debt, trust deed, security agreement, assignment,
26    pledge, conveyance, contract, lien, or other consensual

 

 

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1    transfer in order to secure the repayment of any moneys
2    loaned or credit extended by the land bank;
3        (6) borrow money from private lenders, from cities or
4    counties, from the State or from federal government funds,
5    subject to the approval of the city council, to further or
6    carry out the land bank's public purpose by executing
7    leases, trust indentures, trust agreements, agreements for
8    the sale notes, loan agreements, mortgages, deeds to secure
9    debt, trust deeds, security agreements, assignments, and
10    other agreements or instruments as may be necessary or
11    desirable, in the judgment of the land bank, to evidence
12    and to provide security for the borrowing;
13        (7) to make application directly or indirectly to any
14    federal, state, municipal, or local unit of government or
15    agency or to any other source, whether public or private,
16    for loans, grants, gifts, guarantees, labor, or other aid
17    or financial assistance in furtherance of the land bank's
18    public purpose and to accept and use the same upon terms
19    and conditions as are prescribed by the federal, state,
20    municipal, or local unit of government, agency, or other
21    source;
22        (8) to enter into agreements with the federal
23    government or any agency of the federal government to use
24    the facilities or services of the federal government or
25    agency in order to further or carry out the public purposes
26    of the land bank;

 

 

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1        (9) to extend credit or make loans to any person,
2    subject to limitations established by the city council, for
3    the costs of land bank projects which credit or loans may
4    be evidenced or secured by loan agreements, notes,
5    mortgages, deeds to secure debt, trust deeds, security
6    agreements, assignments, or other instruments or by
7    rentals, revenues, fees, or charges, upon terms and
8    conditions as the land bank shall determine to be
9    reasonable in connection with such extension of credit or
10    loans, including provision for the establishment and
11    maintenance of reserve funds, and, in the exercise of
12    powers in connection with a land bank project, the land
13    bank may require the inclusion in a loan agreement, note,
14    mortgage, deed to secure debt, trust deed, security
15    agreement, assignment, or other instrument such provisions
16    or requirements, including but not limited to: guarantee an
17    obligation, insurance, construction, use, operation,
18    maintenance, and financing and other terms and conditions
19    as the land bank may deem necessary or desirable;
20        (10) as security for repayment of any note, or other
21    obligations of the land bank, to pledge, mortgage, convey,
22    assign, hypothecate, or otherwise encumber any property of
23    the land bank, including, but not limited to, real
24    property, fixtures, and revenues or other funds, and to
25    execute any lease, trust indenture, trust agreement,
26    agreement for the sale of the land bank's notes or other

 

 

HB2346- 21 -LRB101 04954 AWJ 49963 b

1    obligations, loan agreement, mortgage, deed to secure
2    debt, trust deed, security agreement, assignment, or other
3    agreement or instrument as may be necessary or desirable,
4    in the judgment of the land bank, to secure any notes or
5    other obligations, which instruments or agreements may
6    provide for foreclosure or forced sale of any real property
7    of the land bank upon default in any obligation of the land
8    bank, either in payment of principal, premium, or interest
9    or in the performance of a term or condition contained in
10    the agreement or instrument;
11        (11) to receive and administer gifts, grants, and
12    bequests of money and real property consistent with the
13    purpose of the land bank;
14        (12) to use any real property or fixtures, or any
15    interest in real property or fixtures, to rent, license, or
16    lease the real property to or from others or make contracts
17    with respect to the use of the real property or fixtures,
18    or to sell, lease, exchange, transfer, assign, pledge, or
19    otherwise dispose of or grant options for the real property
20    in any manner as it deems to be in the best interests of
21    the land bank and the public purpose;
22        (13) to procure insurance or guarantees from the State
23    or federal government of the payments of any debts or parts
24    incurred by the land bank and to pay premiums in connection
25    with the insurance or guarantees;
26        (14) to procure, if required, insurance against losses

 

 

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1    in connection with the real property, assets, or activities
2    of the land bank;
3        (15) to enter into contracts and other instruments
4    necessary, incidental, or convenient to the performance of
5    its duties and the exercise of its powers, including, but
6    not limited to, an agreement with a party for the joint
7    exercise of powers. An agreement with a party may include
8    contracts for the performance of services by a party on
9    behalf of the land bank or by the land bank on behalf of a
10    party;
11        (16) to enter into partnerships, joint ventures, and
12    other collaborative relationships with municipalities and
13    other public and private entities for the ownership,
14    management, development, and disposition of real property;
15        (17) to enter into contracts and other instruments
16    necessary, incidental, or convenient to the performance of
17    its duties and the exercise of its powers, including, but
18    not limited to, agreements with a party regarding the
19    disposition of land bank properties located within their
20    boundaries;
21        (18) to finance (by loan, grant, lease, or otherwise),
22    refinance, construct, erect, assemble, purchase, acquire,
23    own, repair, remodel, rehabilitate, modify, maintain,
24    extend, improve, install, sell, equip, expand, add to,
25    operate, or manage real property or rights or interests in
26    real property and to pay the costs of any such project from

 

 

HB2346- 23 -LRB101 04954 AWJ 49963 b

1    the proceeds of revenue bonds or loans by persons,
2    corporations, partnerships, whether limited or general, or
3    other entities, all of which the land bank is authorized to
4    receive, accept, and use;
5        (19) to fix, charge, and collect rents, fees, licenses,
6    and charges for the use of real property of the land bank
7    and for services provided by the Land Bank;
8        (20) to grant or acquire a license, easement, lease (as
9    lessor or lessee), or option with respect to real property
10    of the land bank;
11        (21) to enter into contracts with not-for-profit
12    community land trusts, including, but not limited to,
13    long-term lease contracts;
14        (22) to contract for goods and services and employ
15    personnel, as necessary, to be paid from the funds of the
16    land bank. The board of directors shall determine the
17    qualifications, duties, and compensation of those it
18    contracts with and employs;
19        (23) to organize and reorganize the executive,
20    administrative, clerical, and other departments of the
21    land bank and to fix the duties, powers, and compensation
22    of all employees, agents, and consultants of the land bank;
23        (24) to remediate environmental contamination on any
24    real property held by the land bank;
25        (25) to acquire, hold, and manage property;
26        (26) to dispose of property; and

 

 

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1        (27) to do all other things necessary or convenient to
2    achieve the objectives and purposes of the land bank and
3    this Division.
 
4    (65 ILCS 5/11-15.5-145 new)
5    Sec. 11-15.5-145. Municipality's governmental immunity.
6Nothing in this Division may be construed as a waiver by the
7municipality of any governmental immunity provided under any
8applicable law.
 
9    (65 ILCS 5/11-15.5-150 new)
10    Sec. 11-15.5-150. Discrimination.
11    (a) The land bank shall comply with all applicable laws
12prohibiting discrimination.
13    (b) The land bank shall not provide services in a manner
14that discriminates against an individual because of the actual
15or perceived status, practice, or expression of that
16individual's race, color, sex, age, religion, disability,
17national origin, ancestry, sexual orientation, marital status,
18parental status, military discharge status, source of income,
19gender identity, or housing status or the actual or perceived
20association with such an individual.
21    (c) The land bank shall not refuse to hire, recruit,
22promote, demote, discharge, or otherwise discriminate against
23an individual with respect to employment, compensation or a
24term, condition, or privilege of employment because of the

 

 

HB2346- 25 -LRB101 04954 AWJ 49963 b

1actual or perceived status, practice, or expression of that
2individual's race, color, sex, age, religion, disability,
3national origin, ancestry, sexual orientation, marital status,
4parental status, military discharge status, source of income,
5gender identity, or housing status or the actual or perceived
6association with such an individual.
 
7    (65 ILCS 5/11-15.5-155 new)
8    Sec. 11-15.5-155. Acquisition of property.
9    (a) The land bank may acquire real property or rights or
10interests in real property by gift, bequest, transfer,
11exchange, foreclosure, purchase, purchase contracts, lease
12purchase agreements, installment sales contracts, land
13contracts, tax sale, scavenger sale, or other method of
14acquisition on terms and conditions and in a manner the land
15bank considers proper.
16    (b) The land bank may acquire any property conveyed to it
17by any person, including, but not limited to, property without
18clear title.
19    (c) All deeds, mortgages, contracts, leases, purchases, or
20other agreements regarding real property of the land bank,
21including agreements to acquire or dispose of real property,
22shall be approved by and executed by the land bank in the name
23of the municipality.
24    (d) The land bank may purchase property in the name of the
25municipality at tax sales conducted under the Property Tax

 

 

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1Code. The land bank may tender a bid at a tax sale that is a
2credit bid consisting of the obligation of the land bank to
3satisfy the component parts of the bid by payments to the
4respective political subdivisions.
5    (e) The land bank may make offers to purchase real property
6that is subject to a listing agreement. The offer or purchase
7of a property by the land bank that is subject to a listing
8agreement shall not extinguish any legal rights existing under
9the listing agreement.
 
10    (65 ILCS 5/11-15.5-160 new)
11    Sec. 11-15.5-160. Execution of legal documents relating to
12real property. Deeds, mortgages, contracts, easements, leases,
13licenses, franchises, purchases, covenants or other agreements
14regarding real property of the land bank, including agreements
15to acquire or dispose of real property, shall be executed in
16the name of the municipality by the land bank and approved in
17accordance with the bylaws of the land bank.
 
18    (65 ILCS 5/11-15.5-165 new)
19    Sec. 11-15.5-165. Holding and managing property. The land
20bank may control, manage, maintain, operate, repair, lease as
21lessor, license, secure, prevent the waste or deterioration of,
22demolish, or take all other actions necessary to preserve the
23value of the real property it controls on behalf of the
24municipality. The land bank shall maintain all real property

 

 

HB2346- 27 -LRB101 04954 AWJ 49963 b

1held by the land bank in accordance with applicable laws and
2codes. Real property shall be inventoried and classified by the
3land bank according to suitability for use. The inventory shall
4be maintained as a public record and shall be filed
5electronically and in the principal office of the land bank.
 
6    (65 ILCS 5/11-15.5-170 new)
7    Sec. 11-15.5-170. Property disposition. On fair and
8reasonable terms and conditions and in a manner and for an
9amount of consideration the land bank considers proper
10(including for no monetary consideration, if appropriate), the
11land bank may convey, sell, transfer, exchange, or otherwise
12dispose of real property or rights or interests in real
13property which the land bank controls and the municipality
14holds a legal interest to any public or private person. The
15disposition of real property under this Section shall be
16considered a necessary public purpose and for the benefit of
17the public.
 
18    (65 ILCS 5/11-15.5-175 new)
19    Sec. 11-15.5-175. Criteria for conveyance. Real property
20shall be conveyed by the land bank in accordance with this
21Division and according to criteria determined in the discretion
22of the board of directors and contained in the policies and
23procedures adopted by the board of directors. The board of
24directors may adopt policies and procedures that set forth

 

 

HB2346- 28 -LRB101 04954 AWJ 49963 b

1priorities for a transferee's use of real property conveyed by
2the land bank, including, but not limited to, affordable
3housing.
 
4    (65 ILCS 5/11-15.5-180 new)
5    Sec. 11-15.5-180. Transactions.
6    (a) Transactions shall be structured in a manner that
7permits the land bank to enforce contractual agreements, real
8covenants, and the provisions of any subordinate financing held
9by the land bank pertaining to development and use of the real
10property.
11    (b) Notwithstanding any other provision of this Division,
12any transaction involving property located within a
13municipality with a population over 100,000 shall only be made
14pursuant to an agreement between that municipality and the land
15bank.
 
16    (65 ILCS 5/11-15.5-185 new)
17    Sec. 11-15.5-185. Disposition of proceeds. Any proceeds
18from the sale or transfer of real property by the land bank
19shall be retained, expended, or transferred by the land bank as
20determined by the board of directors in the best interests of
21the land bank and in accordance with applicable laws and
22agreements.
 
23    (65 ILCS 5/11-15.5-190 new)

 

 

HB2346- 29 -LRB101 04954 AWJ 49963 b

1    Sec. 11-15.5-190. Intergovernmental agreements.
2    (a) The board of directors may negotiate and propose
3intergovernmental agreements necessary, incidental, or
4convenient to the performance of its duties and the exercise of
5its powers with a unit of local government located in whole or
6in part within the municipality, subject to the approval of the
7city council. An intergovernmental agreement may include, but
8is not limited to, contracts for the joint exercise of powers,
9contracts for the ownership, management, development, and
10disposition of real property, or contracts for the performance
11of services by a unit of local government on behalf of the land
12bank or by the land bank on behalf of a unit of local
13government.
14    (b) A party to an intergovernmental agreement shall agree
15that no party to an intergovernmental agreement shall be
16responsible, in whole or in part, for the acts of the
17employees, agents, and servants of any other party, whether
18acting separately or in conjunction with the implementation of
19an intergovernmental agreement. The parties shall only be bound
20and obligated under an intergovernmental agreement as
21expressly agreed to by each party.
22    (c) All intergovernmental agreements shall be interpreted,
23enforced, and governed under the laws of this State without
24regard to the doctrines of conflict of laws. The language of an
25intergovernmental agreements shall in all cases be construed as
26a whole according to its plain and fair meaning and not

 

 

HB2346- 30 -LRB101 04954 AWJ 49963 b

1construed strictly for or against any party.
 
2    (65 ILCS 5/11-15.5-195 new)
3    Sec. 11-15.5-195. Land bank records. The land bank shall
4keep and maintain at the principal office of the land bank all
5documents and records of the land bank. The records of the land
6bank shall be available to the public and shall include, but
7not be limited to, a copy of this Division, the land bank's
8bylaws, and any agreements and any amendments to an agreement.
9The records and documents shall be maintained and shall be
10delivered to any successor entity.
 
11    (65 ILCS 5/11-15.5-200 new)
12    Sec. 11-15.5-200. Financial statements and reports. The
13land bank shall annually prepare or have prepared, at the land
14bank's expense, audited financial statements, including
15balance sheet, statement of revenue and expense, statement of
16cash flows, and changes in fund balance. The financial
17statements shall be prepared in accordance with generally
18accepted accounting principles and accompanied by a written
19opinion of an independent certified public accounting firm.
 
20    (65 ILCS 5/11-15.5-205 new)
21    Sec. 11-15.5-205. Annual budget.
22    (a) The land bank shall prepare an annual budget in a
23manner and under a time frame mandated by municipality's

 

 

HB2346- 31 -LRB101 04954 AWJ 49963 b

1treasurer or other financial officer.
2    (b) For the first complete fiscal year and each fiscal year
3thereafter, the board of directors shall recommend, approve,
4and submit an annual budget to be included in the
5municipality's annual budget for approval by the city council.
6    (c) The obligations and expenditures of the board of
7directors shall conform to the municipality's annual budget.
8The city council retains the authority to impose additional
9limitations. A commitment, contract, or other obligation
10entered into by the board of directors in violation of this
11Section shall be voidable by the city council.
 
12    (65 ILCS 5/11-15.5-210 new)
13    Sec. 11-15.5-210. Deposits and investments.
14    (a) The land bank shall deposit funds of the land bank in a
15special fund to be held by the treasurer of the municipality.
16The fund shall be designated as the "Land Bank Fund" and the
17moneys in the fund shall be expended exclusively for the
18operation of the land bank.
19    (b) Expenditures of funds from the Land Bank Fund shall be
20in accordance with guidelines established by the board of
21directors.
 
22    (65 ILCS 5/11-15.5-215 new)
23    Sec. 11-15.5-215. Performance objectives. Each fiscal
24year, the director or other individual designated by the board

 

 

HB2346- 32 -LRB101 04954 AWJ 49963 b

1of directors shall prepare, for review and approval by the
2board of directors, objectives for the land bank's performance.
 
3    (65 ILCS 5/11-15.5-220 new)
4    Sec. 11-15.5-220. Annual report.
5    (a) The board of directors shall submit a report to the
6mayor and the city council, no later than 6 months after the
7end of each fiscal year, which shall set forth a complete and
8detailed operating and financial statement of the land bank
9during the fiscal year.
10    (b) Included in the report shall be any recommendations for
11additional legislation or other action which may be necessary
12to carry out the mission, purpose, and intent of the land bank.
 
13    (65 ILCS 5/11-15.5-225 new)
14    Sec. 11-15.5-225. Management of funds. The director or
15other individual designated by the board of directors is
16authorized to make deposits and withdraw funds from the Land
17Bank Fund for the management of sales proceeds, revenue, and
18other land bank funds as authorized by the board of directors.
19Standard accounting procedures shall be used in the management
20of accounts and approved by the municipality's treasurer.
 
21    (65 ILCS 5/11-15.5-230 new)
22    Sec. 11-15.5-230. Authorized expenditures. The land bank
23shall, in its sole discretion and within its budget, expend

 

 

HB2346- 33 -LRB101 04954 AWJ 49963 b

1funds as necessary to carry out the powers, duties, functions,
2and responsibilities of the land bank under this Division.
 
3    (65 ILCS 5/11-15.5-235 new)
4    Sec. 11-15.5-235. Dissolution. If the city council
5determines that the purposes of the land bank have been
6completed and that there is no longer a need for the land bank,
7the city council may dissolve the land bank. The dissolution
8date shall allow sufficient time for the land bank to carry out
9the distribution of assets under Section 11-15.5-240.
 
10    (65 ILCS 5/11-15.5-240 new)
11    Sec. 11-15.5-240. Distribution of assets. At a reasonable
12time prior to the dissolution of the land bank under Section
1311-15.5-235, the land bank shall wind up its affairs as
14follows:
15        (1) all of the land bank's debts, liabilities, and
16    obligations to its creditors and all expenses incurred in
17    connection with the termination of the land bank and
18    distribution of its assets shall be paid first; and
19        (2) the remaining real property and personal property
20    owned by the land bank, if any, shall be distributed to any
21    successor entity, subject to approval by the municipality.
22    If a successor entity does not exist, the remaining real
23    property, personal property, and other assets of the land
24    bank shall become assets of the municipality unless

 

 

HB2346- 34 -LRB101 04954 AWJ 49963 b

1    provided otherwise in any applicable agreement.
 
2    (65 ILCS 5/11-15.5-998 new)
3    Sec. 11-15.5-998. Interpretation of Division. All powers
4granted to the land bank under this Division shall be
5interpreted broadly to effectuate the intent and purposes of
6this Division and not to serve as a limitation of powers.
 
7    (65 ILCS 5/11-15.5-999 new)
8    Sec. 11-15.5-999. Severability. The provisions of this Act
9are severable under Section 1.31 of the Statute on Statutes.

 

 

HB2346- 35 -LRB101 04954 AWJ 49963 b

1 INDEX
2 Statutes amended in order of appearance
3    65 ILCS 5/Div. 15.5
4    heading new
5    65 ILCS 5/11-15.5-5 new
6    65 ILCS 5/11-15.5-10 new
7    65 ILCS 5/11-15.5-15 new
8    65 ILCS 5/11-15.5-20 new
9    65 ILCS 5/11-15.5-25 new
10    65 ILCS 5/11-15.5-30 new
11    65 ILCS 5/11-15.5-35 new
12    65 ILCS 5/11-15.5-40 new
13    65 ILCS 5/11-15.5-45 new
14    65 ILCS 5/11-15.5-50 new
15    65 ILCS 5/11-15.5-55 new
16    65 ILCS 5/11-15.5-60 new
17    65 ILCS 5/11-15.5-65 new
18    65 ILCS 5/11-15.5-70 new
19    65 ILCS 5/11-15.5-75 new
20    65 ILCS 5/11-15.5-80 new
21    65 ILCS 5/11-15.5-85 new
22    65 ILCS 5/11-15.5-90 new
23    65 ILCS 5/11-15.5-95 new
24    65 ILCS 5/11-15.5-100 new
25    65 ILCS 5/11-15.5-105 new

 

 

HB2346- 36 -LRB101 04954 AWJ 49963 b

1    65 ILCS 5/11-15.5-110 new
2    65 ILCS 5/11-15.5-115 new
3    65 ILCS 5/11-15.5-120 new
4    65 ILCS 5/11-15.5-125 new
5    65 ILCS 5/11-15.5-130 new
6    65 ILCS 5/11-15.5-135 new
7    65 ILCS 5/11-15.5-140 new
8    65 ILCS 5/11-15.5-145 new
9    65 ILCS 5/11-15.5-150 new
10    65 ILCS 5/11-15.5-155 new
11    65 ILCS 5/11-15.5-160 new
12    65 ILCS 5/11-15.5-165 new
13    65 ILCS 5/11-15.5-170 new
14    65 ILCS 5/11-15.5-175 new
15    65 ILCS 5/11-15.5-180 new
16    65 ILCS 5/11-15.5-185 new
17    65 ILCS 5/11-15.5-190 new
18    65 ILCS 5/11-15.5-195 new
19    65 ILCS 5/11-15.5-200 new
20    65 ILCS 5/11-15.5-205 new
21    65 ILCS 5/11-15.5-210 new
22    65 ILCS 5/11-15.5-215 new
23    65 ILCS 5/11-15.5-220 new
24    65 ILCS 5/11-15.5-225 new
25    65 ILCS 5/11-15.5-230 new
26    65 ILCS 5/11-15.5-235 new

 

 

HB2346- 37 -LRB101 04954 AWJ 49963 b

1    65 ILCS 5/11-15.5-240 new
2    65 ILCS 5/11-15.5-998 new
3    65 ILCS 5/11-15.5-999 new