HB2346 101ST GENERAL ASSEMBLY

LRB101 04954 AWJ 49963 b

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.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Municipal Code is amended by adding Division 15.5 in Article 11 as follows:

(65 ILCS 5/Div. 15.5 heading new)

Division 15.5. Municipal Land Bank Authority

(65 ILCS 5/11-15.5-5 new)

Sec. 11-15.5-5. Purpose. The purpose of this Division is to allow a municipality to create a land bank authority that will use available resources to facilitate the return of vacant, abandoned, and tax-delinquent properties to productive use thereby combating community deterioration, creating economic growth, and stabilizing the housing and job market.

The land bank authority will acquire, hold, and transfer interest in real property throughout the municipality as approved by the board of directors of the authority for the following purposes: to promote redevelopment and reuse of vacant, abandoned, or tax-delinquent properties; support targeted efforts to stabilize neighborhoods; and stimulate residential, commercial, and industrial development all in ways that are consistent with goals and priorities established by this Division, local government partners, and other community stakeholders.

(65 ILCS 5/11-15.5-10 new)

Sec. 11-15.5-10. Definitions. As used in this Division:

"Authority" means the land bank authority created by a municipality.

"Board of directors" means the board of directors of a land bank authority.

"City council" means the city council or board of trustees of a municipality that may establish or has established a land bank.

"Director" means the executive director of a land bank authority.

"Fiscal year" means the fiscal year of the land bank, which is the same as the municipality's fiscal year.

"Good cause" includes inefficiency, neglect of duty, malfeasance, or any cause which renders a director or member of the board of directors unfit for the position or unable to perform the duties of the position or the scope of the work.

"Land bank" means a land bank authority.

"Mayor" means the mayor or village president of a municipality that has created a land bank.

"Member" means a member of the board of directors.

"Municipality" or "municipal" means the municipality that may establish or has established a land bank.

"Person" means any individual, corporation, limited liability corporation, organization, government, governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity.

"Real property" means all land and the buildings on the land, all things permanently attached to land or to the buildings on the land, and any interest existing in, issuing out of, or dependent upon land or the buildings on the land.

(65 ILCS 5/11-15.5-15 new)

Sec. 11-15.5-15. Establishment. A municipality may, by ordinance, establish a land bank authority as an agency of the municipality. All personnel, facilities, equipment, and supplies within the land bank shall be governed by a board of directors as provided in this Division. The board of directors shall be accountable to the city council. The land bank shall be funded by the municipality.

(65 ILCS 5/11-15.5-20 new)

Sec. 11-15.5-20. Principal office. The principal office of the land bank shall be at a location within the municipality, as determined by the board of directors.

(65 ILCS 5/11-15.5-25 new)

Sec. 11-15.5-25. Title to land bank assets. Except as otherwise provided in this Division, the municipality shall hold title to all real property controlled by the land bank.

(65 ILCS 5/11-15.5-30 new)

Sec. 11-15.5-30. Tax-exempt status. The activities of the land bank are governmental functions carried out by an instrumentality or political subdivision of the State as described in Section 115 of Title 26 of the United States Internal Revenue Code, or any corresponding provisions of any future tax code. The activities of the land bank are governmental functions carried out by a political subdivision of the State, exempt to the extent provided under Illinois law from taxation by this State, including, but not limited to, ad valorem property tax exemption under the Property Tax Code.

(65 ILCS 5/11-15.5-35 new)

Sec. 11-15.5-35. Waiver of special assessments. Upon the request of the land bank and for the purposes of fostering the goals and objectives of the land bank, the municipality, as permitted by law, may extinguish special assessments levied by it prior to the date of acquisition by the land bank against real property controlled by the land bank, and may seek to exempt real property controlled by the land bank from the imposition of special assessments.

(65 ILCS 5/11-15.5-40 new)

Sec. 11-15.5-40. Compliance with law. The land bank shall comply with all applicable federal and State laws, rules, regulations, and orders.

(65 ILCS 5/11-15.5-45 new)

Sec. 11-15.5-45. No third-party beneficiaries. Except as otherwise provided, this Division does not create for any person, other than the municipality, and is not intended to create by implication or otherwise, a direct or indirect benefit, obligation, duty, promise, right to be indemnified (such as contractually, legally, equitably, or by implication), right to be subrogated to the municipality's rights under this Division, or any other right or benefit.

(65 ILCS 5/11-15.5-50 new)

Sec. 11-15.5-50. Board of directors. The land bank shall be governed by a board of directors that shall be appointed by the mayor, subject to approval by the city council, no later than 45 days after the effective date of the ordinance creating the authority. Members of the board of directors shall be residents of the municipality.

(65 ILCS 5/11-15.5-55 new)

Sec. 11-15.5-55. Appointment of members. Candidates for the board of directors shall be selected from the following categories:

(1) the mayor to serve as an ex officio member with voting rights. The ex officio member shall serve as a liaison between the city council and the board of directors;

(2) 2 city council members, not including the mayor;

(3) one representative from the municipality as recommended by the mayor;

(4) one representative from the municipality's economic development agency, if any;

(5) one representative from a community development finance institution;

(6) one representative from the banking community;

(7) one representative from a local or State association of realtors;

(8) one representative from the non-profit housing development community;

(9) one representative from the commercial or industrial development community;

(10) one representative from a community organization in the municipality, if any;

(11) one representative from the legal community; and

(12) one representative with commercial retail development experience.

If an initial appointment is not made under paragraph (4) or (10) because there is not a municipal economic development agency or community organization in the municipality, an appointment for those positions, if any, shall be made as provided in subsection (b) of Section 11-15.5-75.

(65 ILCS 5/11-15.5-60 new)

Sec. 11-15.5-60. Term of office.

(a) Except as otherwise provided in this Section or Section 11-15.5-75, the members of the board of directors shall be appointed for a term of 3 years.

(b) The ex officio member shall serve until the expiration of his or her term as mayor.

(c) The initial members, except as provided in subsection (b), shall serve terms as follows as determined by lot at the board of directors first meeting next following all member appointments:

(1) Three of the members shall serve a term that expires on the January 1 next following the establishment of the land bank, except that these members shall serve until the 2nd January 1 next following the establishment of the land bank if the land bank was established after July 1.

(2) Three of the members shall serve a term that expires on the January 1 next following the expiration of the members' terms under paragraph (1).

(3) Two of the members shall serve a term that expires on the January, 1 next following the expiration of the members' terms under paragraph (2).

(4) Members appointed under paragraph (4) or (10) of Section 11-15.5-55, if any, shall serve a term that expires on the January 1 next following the expiration of the members' terms under paragraph (3).

(d) After the initial appointed terms under subsection (c), each member, other than the ex officio member, shall serve a term of 3 years.

(e) A member shall serve until a successor is appointed and has qualified.

(f) A member who is appointed to fill a vacancy, other than a vacancy caused by the expiration of the predecessor's term, shall serve until the expiration of his or her predecessor's term.

(g) Other than the ex officio member, a member may not serve more than 2 consecutive full terms.

(65 ILCS 5/11-15.5-65 new)

Sec. 11-15.5-65. Officers.

(a) The board of directors shall select an initial chairperson from among the initial members. The chairperson shall serve a 2-year term as chairperson and, thereafter, the board of directors shall annually elect a chairperson from among its members. A member may be elected to serve successive terms as chairperson.

The chairperson shall preside at meetings of the board of directors and is entitled to vote on all matters before the board of directors.

(b) The board of directors may appoint from its members a member to serve as the land bank secretary and appoint additional officers from its members as it may deem appropriate.

(65 ILCS 5/11-15.5-70 new)

Sec. 11-15.5-70. Removal. A member may be removed for good cause by the mayor prior to the expiration of the member's term of appointment. The mayor shall provide written notice to that member, the director, and the city of council of the removal of that member from the board of directors. The notice shall state the specific grounds which constitute cause for removal. The member, in receipt of a notice, may request to appear before the city council and present reasons in support of his or her retention. Thereafter, the city council shall vote upon whether there are sufficient grounds to remove that member from office. The mayor shall notify the member of the final action of the city council.

(65 ILCS 5/11-15.5-75 new)

Sec. 11-15.5-75. Vacancies.

(a) Any vacancy on the board of directors caused by death, resignation, disqualification, or removal shall be filled by the mayor as soon as practicable, but not to exceed 60 days following the occurrence of the vacancy. The vacancy shall be filled for the remainder of the unexpired term in the same manner as the original appointment. Expired terms shall be filled by the mayor within 60 days of the term's expiration in the same manner as the original appointment.

(b) If an initial appointment is not made under paragraph (4) or (10) of Section 11-15.5-55, that position is considered vacant and an appointment may be made by the mayor to that position when a municipal economic development agency or community organization in the municipality is established. The person appointed to fill the vacancy shall serve until the expiration of the initial term under paragraph (4) or (10) of subsection (c) of Section 11-15.5-60 or the expiration of a subsequent 3-year term if the initial term would have already expired.

(65 ILCS 5/11-15.5-80 new)

Sec. 11-15.5-80. Meetings. The board of directors shall conduct its first meeting no later than 60 days after the appointment of the board of directors. The place, date, and time of the land bank meetings shall be determined at the discretion of the board of directors. All meetings of the board of directors shall comply with the Open Meetings Act.

(65 ILCS 5/11-15.5-85 new)

Sec. 11-15.5-85. Initial bylaws and policies and procedures. The board of directors shall adopt bylaws and policies and procedures consistent with the provisions of this Division no later than 120 days after the first meeting of the board of directors.

(65 ILCS 5/11-15.5-90 new)

Sec. 11-15.5-90. Quorum; voting. A quorum is necessary for the transaction of any business by the board of directors. A majority of the members of the board of directors shall constitute a quorum. The board of directors shall act by a majority vote of the members at a meeting at which a quorum is present, except as otherwise provided in this Division. Presence for both quorum and voting at the land bank shall be articulated by the board of directors in its bylaws or procedures in a manner consistent with the Open Meetings Act.

(65 ILCS 5/11-15.5-95 new)

Sec. 11-15.5-95. Records of meetings. Minutes of all meetings of the board of directors and its committees shall be made and maintained as required by the Open Meetings Act.

(65 ILCS 5/11-15.5-100 new)

Sec. 11-15.5-100. Board of directors responsibilities. The board of directors shall:

(1) ensure that all personnel matters are conducted free from any political interference and in accordance with all applicable laws;

(2) ensure that all operations, including contractual matters, are conducted free from any political interference; and

(3) ensure efficiency in service delivery and sound fiscal management of all aspects of the land bank including the collection of all revenues from all sources.

(65 ILCS 5/11-15.5-105 new)

Sec. 11-15.5-105. Board of directors actions. The board of directors shall do all of the following:

(1) adopt, amend, or repeal rules and policies and procedures governing the board of directors and its actions and meetings and adopt, amend, or repeal policies and procedures to implement day-to-day operation of the land bank, including policies governing any staff of the land bank;

(2) elect additional officers, including, but not limited to, initial officers who shall be elected at the first meeting of the board of directors in accordance with the bylaws;

(3) provide for a system of accounting;

(4) adopt or amend the land bank's budget to submit annually to the municipality for approval and adoption in a time frame mandated by the municipality's treasurer or other financial officer;

(5) adopt, amend, or repeal policies and procedures for contracting and procurement;

(6) commission, collect, and receive data from public, private, professional, and volunteer sources to compile an inventory and analysis of desirable properties for acquisition;

(7) establish banking arrangements for the land bank; and

(8) organize and reorganize the executive, administrative, clerical, and other departments of the land bank and fix the duties, powers, and compensation of all employees, agents, and consultants of the land bank hired pursuant to Section 11-15.5-125.

(65 ILCS 5/11-15.5-110 new)

Sec. 11-15.5-110. Fiduciary duty. The members of the board of directors are under a fiduciary duty to conduct the activities and affairs of the land bank in the best interests of the residents of the municipality, including the safekeeping and use of all land bank moneys and assets. The members of the board of directors shall discharge their duties in good faith with the care an ordinarily prudent person in a like position would exercise under similar circumstances.

(65 ILCS 5/11-15.5-115 new)

Sec. 11-15.5-115. Compensation. The members of the board of directors shall receive no compensation for the performance of their duties. A member may engage in private or public employment or in a profession or business, except to the extent prohibited by law or municipal ordinance. The land bank may reimburse members of the board of directors for actual and necessary expenses incurred in the discharge of their official duties as provided by the board of directors.

(65 ILCS 5/11-15.5-120 new)

Sec. 11-15.5-120. Executive director. The board of directors shall retain the professional services of an individual to perform the duties of an executive director on a contractual basis with the advice and consent of the mayor. The director is not an employee of the land bank or municipality. The director shall administer the land bank in accordance with the operating budget approved by the municipality, general policy guidelines established by the board of directors, other applicable governmental procedures and policies, and this Division. The director is responsible for the day-to-day operations of the land bank; the control, management, and oversight of the land bank's functions; and supervision of all land bank contractual agreements. All terms and conditions of the director's service shall be specified in a written contract between the director and the board of directors. The director may be removed by the mayor or the board of directors, for good cause, prior to the expiration of the director's contract. The board of directors may delegate to the director any powers or duties it considers proper under such terms, conditions, and to the extent that the board of directors may specify.

(65 ILCS 5/11-15.5-125 new)

Sec. 11-15.5-125. Staffing services.

(a) The board of directors may approve contracts for staffing as requested by the director that are deemed necessary to carry out the duties and responsibilities of the land bank and in accordance with the policies and procedures established by the board of directors. Such staff shall be retained pursuant to contracts entered into in accordance with the procurement rules established by the board of directors.

(b) If the board of directors elects to have staff, staff employed by the board of directors for the land bank not otherwise retained through the board of directors' procurement rules shall be recruited or employed through the municipality employment plan, if any, and are municipal employees.

(65 ILCS 5/11-15.5-130 new)

Sec. 11-15.5-130. Ethics and oversight. The land bank and its director, board of directors, employees, and contractors are subject to municipal ethics rules or ordinances and municipal ethics officers, if any.

(65 ILCS 5/11-15.5-135 new)

Sec. 11-15.5-135. Indemnification.

(a) Except as otherwise provided in this Section, the municipality shall defend and indemnify the land bank and its board members, officers, and employees from all claims or judgments arising out of their activities as board members, officers, or employees for all negligence claims and claims or judgments arising out of land bank activities performed on behalf of the municipality.

(b) The municipality is not obligated to indemnify the land bank or its members for:

(1) Punitive damages or liability arising out of conduct which is based upon willful or wanton conduct.

(2) Conduct which is outside of the scope of the land bank's authority.

(3) A settlement or judgment in which the municipality did not participate.

(4) The defense of any criminal or disciplinary proceeding.

(c) To be eligible for defense and indemnification, the land bank or its board members, officers, or employees shall:

(1) notify, within 5 days of receipt, the city council and the State's Attorney's Office in the county, or one of the counties, in which the municipality is located of any claim made against the board member, officer, or employee or land bank and deliver all written demands, complaints, and other legal papers received by the practitioner with respect to such claim to the city council;

(2) cooperate with the State's Attorney's Office in the investigation and defense of any claim against the municipality or any board member, officer, or employee, including, but not limited to, preparing for and attending depositions, hearings, and trials and otherwise assisting in securing and giving evidence; and

(3) promptly notify the city council and the State's Attorney's Office of any change in the member's address or telephone number.

(d) All actions shall be defended by the State's Attorney in the county in which the municipality is located. If the municipality is located in more than one county, the State's Attorney notified under paragraph (1) of subsection (c) shall defend the action unless the State's Attorney from another county in which the municipally is located agrees that he or she will defend the action. Decisions to settle indemnified claims shall be made by the municipality or the State's Attorney's Office, as delegated by the municipality, and shall not require the consent of the indemnified member, officer, or employee. If a board member, officer, or employee declines representation by the State's Attorney's Office, the municipality shall have no obligation to defend or indemnify the member.

(65 ILCS 5/11-15.5-140 new)

Sec. 11-15.5-140. General powers. The land bank has the authority to do all things necessary or convenient to implement the purposes, objectives, and provisions of this Division or the purposes, objectives, and powers granted to the land bank by any federal, state, or local government unit consistent with the municipality's annual budget, including, but not limited to, the following:

(1) to adopt, amend, and repeal bylaws for the regulation of its affairs and the conduct of its business;

(2) to acquire by purchase, donation, or other transfers and to hold, lease, manage, and dispose of real property of every kind and character, or any interest therein, in furtherance of the public purposes of the land bank;

(3) to discharge and extinguish real property taxes owed to the municipality, State, or unit of local government pursuant to an agreement with the municipality, State, or unit of local government that encumber real property owned by the municipality through the land bank, as permitted by the Property Tax Code or other applicable law;

(4) to pay any tax or special assessment due on real property acquired or owned by the land bank;

(5) to acquire, accept, or retain equitable interests, security interests, or other interests in real property or other fixtures by loan agreement, note, mortgage, deed to secure debt, trust deed, security agreement, assignment, pledge, conveyance, contract, lien, or other consensual transfer in order to secure the repayment of any moneys loaned or credit extended by the land bank;

(6) borrow money from private lenders, from cities or counties, from the State or from federal government funds, subject to the approval of the city council, to further or carry out the land bank's public purpose by executing leases, trust indentures, trust agreements, agreements for the sale notes, loan agreements, mortgages, deeds to secure debt, trust deeds, security agreements, assignments, and other agreements or instruments as may be necessary or desirable, in the judgment of the land bank, to evidence and to provide security for the borrowing;

(7) to make application directly or indirectly to any federal, state, municipal, or local unit of government or agency or to any other source, whether public or private, for loans, grants, gifts, guarantees, labor, or other aid or financial assistance in furtherance of the land bank's public purpose and to accept and use the same upon terms and conditions as are prescribed by the federal, state, municipal, or local unit of government, agency, or other source;

(8) to enter into agreements with the federal government or any agency of the federal government to use the facilities or services of the federal government or agency in order to further or carry out the public purposes of the land bank;

(9) to extend credit or make loans to any person, subject to limitations established by the city council, for the costs of land bank projects which credit or loans may be evidenced or secured by loan agreements, notes, mortgages, deeds to secure debt, trust deeds, security agreements, assignments, or other instruments or by rentals, revenues, fees, or charges, upon terms and conditions as the land bank shall determine to be reasonable in connection with such extension of credit or loans, including provision for the establishment and maintenance of reserve funds, and, in the exercise of powers in connection with a land bank project, the land bank may require the inclusion in a loan agreement, note, mortgage, deed to secure debt, trust deed, security agreement, assignment, or other instrument such provisions or requirements, including but not limited to: guarantee an obligation, insurance, construction, use, operation, maintenance, and financing and other terms and conditions as the land bank may deem necessary or desirable;

(10) as security for repayment of any note, or other obligations of the land bank, to pledge, mortgage, convey, assign, hypothecate, or otherwise encumber any property of the land bank, including, but not limited to, real property, fixtures, and revenues or other funds, and to execute any lease, trust indenture, trust agreement, agreement for the sale of the land bank's notes or other obligations, loan agreement, mortgage, deed to secure debt, trust deed, security agreement, assignment, or other agreement or instrument as may be necessary or desirable, in the judgment of the land bank, to secure any notes or other obligations, which instruments or agreements may provide for foreclosure or forced sale of any real property of the land bank upon default in any obligation of the land bank, either in payment of principal, premium, or interest or in the performance of a term or condition contained in the agreement or instrument;

(11) to receive and administer gifts, grants, and bequests of money and real property consistent with the purpose of the land bank;

(12) to use any real property or fixtures, or any interest in real property or fixtures, to rent, license, or lease the real property to or from others or make contracts with respect to the use of the real property or fixtures, or to sell, lease, exchange, transfer, assign, pledge, or otherwise dispose of or grant options for the real property in any manner as it deems to be in the best interests of the land bank and the public purpose;

(13) to procure insurance or guarantees from the State or federal government of the payments of any debts or parts incurred by the land bank and to pay premiums in connection with the insurance or guarantees;

(14) to procure, if required, insurance against losses in connection with the real property, assets, or activities of the land bank;

(15) to enter into contracts and other instruments necessary, incidental, or convenient to the performance of its duties and the exercise of its powers, including, but not limited to, an agreement with a party for the joint exercise of powers. An agreement with a party may include contracts for the performance of services by a party on behalf of the land bank or by the land bank on behalf of a party;

(16) to enter into partnerships, joint ventures, and other collaborative relationships with municipalities and other public and private entities for the ownership, management, development, and disposition of real property;

(17) to enter into contracts and other instruments necessary, incidental, or convenient to the performance of its duties and the exercise of its powers, including, but not limited to, agreements with a party regarding the disposition of land bank properties located within their boundaries;

(18) to finance (by loan, grant, lease, or otherwise), refinance, construct, erect, assemble, purchase, acquire, own, repair, remodel, rehabilitate, modify, maintain, extend, improve, install, sell, equip, expand, add to, operate, or manage real property or rights or interests in real property and to pay the costs of any such project from the proceeds of revenue bonds or loans by persons, corporations, partnerships, whether limited or general, or other entities, all of which the land bank is authorized to receive, accept, and use;

(19) to fix, charge, and collect rents, fees, licenses, and charges for the use of real property of the land bank and for services provided by the Land Bank;

(20) to grant or acquire a license, easement, lease (as lessor or lessee), or option with respect to real property of the land bank;

(21) to enter into contracts with not-for-profit community land trusts, including, but not limited to, long-term lease contracts;

(22) to contract for goods and services and employ personnel, as necessary, to be paid from the funds of the land bank. The board of directors shall determine the qualifications, duties, and compensation of those it contracts with and employs;

(23) to organize and reorganize the executive, administrative, clerical, and other departments of the land bank and to fix the duties, powers, and compensation of all employees, agents, and consultants of the land bank;

(24) to remediate environmental contamination on any real property held by the land bank;

(25) to acquire, hold, and manage property;

(26) to dispose of property; and

(27) to do all other things necessary or convenient to achieve the objectives and purposes of the land bank and this Division.

(65 ILCS 5/11-15.5-145 new)

Sec. 11-15.5-145. Municipality's governmental immunity. Nothing in this Division may be construed as a waiver by the municipality of any governmental immunity provided under any applicable law.

(65 ILCS 5/11-15.5-150 new)

Sec. 11-15.5-150. Discrimination.

(a) The land bank shall comply with all applicable laws prohibiting discrimination.

(b) The land bank shall not provide services in a manner that discriminates against an individual because of the actual or perceived status, practice, or expression of that individual's race, color, sex, age, religion, disability, national origin, ancestry, sexual orientation, marital status, parental status, military discharge status, source of income, gender identity, or housing status or the actual or perceived association with such an individual.

(c) The land bank shall not refuse to hire, recruit, promote, demote, discharge, or otherwise discriminate against an individual with respect to employment, compensation or a term, condition, or privilege of employment because of the actual or perceived status, practice, or expression of that individual's race, color, sex, age, religion, disability, national origin, ancestry, sexual orientation, marital status, parental status, military discharge status, source of income, gender identity, or housing status or the actual or perceived association with such an individual.

(65 ILCS 5/11-15.5-155 new)

Sec. 11-15.5-155. Acquisition of property.

(a) The land bank may acquire real property or rights or interests in real property by gift, bequest, transfer, exchange, foreclosure, purchase, purchase contracts, lease purchase agreements, installment sales contracts, land contracts, tax sale, scavenger sale, or other method of acquisition on terms and conditions and in a manner the land bank considers proper.

(b) The land bank may acquire any property conveyed to it by any person, including, but not limited to, property without clear title.

(c) All deeds, mortgages, contracts, leases, purchases, or other agreements regarding real property of the land bank, including agreements to acquire or dispose of real property, shall be approved by and executed by the land bank in the name of the municipality.

(d) The land bank may purchase property in the name of the municipality at tax sales conducted under the Property Tax Code. The land bank may tender a bid at a tax sale that is a credit bid consisting of the obligation of the land bank to satisfy the component parts of the bid by payments to the respective political subdivisions.

(e) The land bank may make offers to purchase real property that is subject to a listing agreement. The offer or purchase of a property by the land bank that is subject to a listing agreement shall not extinguish any legal rights existing under the listing agreement.

(65 ILCS 5/11-15.5-160 new)

Sec. 11-15.5-160. Execution of legal documents relating to real property. Deeds, mortgages, contracts, easements, leases, licenses, franchises, purchases, covenants or other agreements regarding real property of the land bank, including agreements to acquire or dispose of real property, shall be executed in the name of the municipality by the land bank and approved in accordance with the bylaws of the land bank.

(65 ILCS 5/11-15.5-165 new)

Sec. 11-15.5-165. Holding and managing property. The land bank may control, manage, maintain, operate, repair, lease as lessor, license, secure, prevent the waste or deterioration of, demolish, or take all other actions necessary to preserve the value of the real property it controls on behalf of the municipality. The land bank shall maintain all real property held by the land bank in accordance with applicable laws and codes. Real property shall be inventoried and classified by the land bank according to suitability for use. The inventory shall be maintained as a public record and shall be filed electronically and in the principal office of the land bank.

(65 ILCS 5/11-15.5-170 new)

Sec. 11-15.5-170. Property disposition. On fair and reasonable terms and conditions and in a manner and for an amount of consideration the land bank considers proper (including for no monetary consideration, if appropriate), the land bank may convey, sell, transfer, exchange, or otherwise dispose of real property or rights or interests in real property which the land bank controls and the municipality holds a legal interest to any public or private person. The disposition of real property under this Section shall be considered a necessary public purpose and for the benefit of the public.

(65 ILCS 5/11-15.5-175 new)

Sec. 11-15.5-175. Criteria for conveyance. Real property shall be conveyed by the land bank in accordance with this Division and according to criteria determined in the discretion of the board of directors and contained in the policies and procedures adopted by the board of directors. The board of directors may adopt policies and procedures that set forth priorities for a transferee's use of real property conveyed by the land bank, including, but not limited to, affordable housing.

(65 ILCS 5/11-15.5-180 new)

Sec. 11-15.5-180. Transactions.

(a) Transactions shall be structured in a manner that permits the land bank to enforce contractual agreements, real covenants, and the provisions of any subordinate financing held by the land bank pertaining to development and use of the real property.

(b) Notwithstanding any other provision of this Division, any transaction involving property located within a municipality with a population over 100,000 shall only be made pursuant to an agreement between that municipality and the land bank.

(65 ILCS 5/11-15.5-185 new)

Sec. 11-15.5-185. Disposition of proceeds. Any proceeds from the sale or transfer of real property by the land bank shall be retained, expended, or transferred by the land bank as determined by the board of directors in the best interests of the land bank and in accordance with applicable laws and agreements.

(65 ILCS 5/11-15.5-190 new)

Sec. 11-15.5-190. Intergovernmental agreements.

(a) The board of directors may negotiate and propose intergovernmental agreements necessary, incidental, or convenient to the performance of its duties and the exercise of its powers with a unit of local government located in whole or in part within the municipality, subject to the approval of the city council. An intergovernmental agreement may include, but is not limited to, contracts for the joint exercise of powers, contracts for the ownership, management, development, and disposition of real property, or contracts for the performance of services by a unit of local government on behalf of the land bank or by the land bank on behalf of a unit of local government.

(b) A party to an intergovernmental agreement shall agree that no party to an intergovernmental agreement shall be responsible, in whole or in part, for the acts of the employees, agents, and servants of any other party, whether acting separately or in conjunction with the implementation of an intergovernmental agreement. The parties shall only be bound and obligated under an intergovernmental agreement as expressly agreed to by each party.

(c) All intergovernmental agreements shall be interpreted, enforced, and governed under the laws of this State without regard to the doctrines of conflict of laws. The language of an intergovernmental agreements shall in all cases be construed as a whole according to its plain and fair meaning and not construed strictly for or against any party.

(65 ILCS 5/11-15.5-195 new)

Sec. 11-15.5-195. Land bank records. The land bank shall keep and maintain at the principal office of the land bank all documents and records of the land bank. The records of the land bank shall be available to the public and shall include, but not be limited to, a copy of this Division, the land bank's bylaws, and any agreements and any amendments to an agreement. The records and documents shall be maintained and shall be delivered to any successor entity.

(65 ILCS 5/11-15.5-200 new)

Sec. 11-15.5-200. Financial statements and reports. The land bank shall annually prepare or have prepared, at the land bank's expense, audited financial statements, including balance sheet, statement of revenue and expense, statement of cash flows, and changes in fund balance. The financial statements shall be prepared in accordance with generally accepted accounting principles and accompanied by a written opinion of an independent certified public accounting firm.

(65 ILCS 5/11-15.5-205 new)

Sec. 11-15.5-205. Annual budget.

(a) The land bank shall prepare an annual budget in a manner and under a time frame mandated by municipality's treasurer or other financial officer.

(b) For the first complete fiscal year and each fiscal year thereafter, the board of directors shall recommend, approve, and submit an annual budget to be included in the municipality's annual budget for approval by the city council.

(c) The obligations and expenditures of the board of directors shall conform to the municipality's annual budget. The city council retains the authority to impose additional limitations. A commitment, contract, or other obligation entered into by the board of directors in violation of this Section shall be voidable by the city council.

(65 ILCS 5/11-15.5-210 new)

Sec. 11-15.5-210. Deposits and investments.

(a) The land bank shall deposit funds of the land bank in a special fund to be held by the treasurer of the municipality. The fund shall be designated as the "Land Bank Fund" and the moneys in the fund shall be expended exclusively for the operation of the land bank.

(b) Expenditures of funds from the Land Bank Fund shall be in accordance with guidelines established by the board of directors.

(65 ILCS 5/11-15.5-215 new)

Sec. 11-15.5-215. Performance objectives. Each fiscal year, the director or other individual designated by the board of directors shall prepare, for review and approval by the board of directors, objectives for the land bank's performance.

(65 ILCS 5/11-15.5-220 new)

Sec. 11-15.5-220. Annual report.

(a) The board of directors shall submit a report to the mayor and the city council, no later than 6 months after the end of each fiscal year, which shall set forth a complete and detailed operating and financial statement of the land bank during the fiscal year.

(b) Included in the report shall be any recommendations for additional legislation or other action which may be necessary to carry out the mission, purpose, and intent of the land bank.

(65 ILCS 5/11-15.5-225 new)

Sec. 11-15.5-225. Management of funds. The director or other individual designated by the board of directors is authorized to make deposits and withdraw funds from the Land Bank Fund for the management of sales proceeds, revenue, and other land bank funds as authorized by the board of directors. Standard accounting procedures shall be used in the management of accounts and approved by the municipality's treasurer.

(65 ILCS 5/11-15.5-230 new)

Sec. 11-15.5-230. Authorized expenditures. The land bank shall, in its sole discretion and within its budget, expend funds as necessary to carry out the powers, duties, functions, and responsibilities of the land bank under this Division.

(65 ILCS 5/11-15.5-235 new)

Sec. 11-15.5-235. Dissolution. If the city council determines that the purposes of the land bank have been completed and that there is no longer a need for the land bank, the city council may dissolve the land bank. The dissolution date shall allow sufficient time for the land bank to carry out the distribution of assets under Section 11-15.5-240.

(65 ILCS 5/11-15.5-240 new)

Sec. 11-15.5-240. Distribution of assets. At a reasonable time prior to the dissolution of the land bank under Section 11-15.5-235, the land bank shall wind up its affairs as follows:

(1) all of the land bank's debts, liabilities, and obligations to its creditors and all expenses incurred in connection with the termination of the land bank and distribution of its assets shall be paid first; and

(2) the remaining real property and personal property owned by the land bank, if any, shall be distributed to any successor entity, subject to approval by the municipality. If a successor entity does not exist, the remaining real property, personal property, and other assets of the land bank shall become assets of the municipality unless provided otherwise in any applicable agreement.

(65 ILCS 5/11-15.5-998 new)

Sec. 11-15.5-998. Interpretation of Division. All powers granted to the land bank under this Division shall be interpreted broadly to effectuate the intent and purposes of this Division and not to serve as a limitation of powers.

(65 ILCS 5/11-15.5-999 new)

Sec. 11-15.5-999. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.