093_HB2437

 
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 1        AN ACT concerning housing.

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

 4        Section  5.   The  Illinois  Housing  Development  Act is
 5    amended by changing Section 2 as follows:

 6        (20 ILCS 3805/2) (from Ch. 67 1/2, par. 302)
 7        Sec. 2.  As used in this Act:
 8        (a)  "Authority" means the Illinois  Housing  Development
 9    Authority created in this Act.
10        (b)  "Development  costs" means the costs approved by the
11    Authority as appropriate expenditures which may  be  incurred
12    prior  to commitment and initial closing of assisted mortgage
13    financing  or  of  housing  related  commercial   facilities,
14    including  but  not  limited  to: (1) payments for options to
15    purchase  properties  for   the   proposed   development   or
16    facilities,  deposits  on contracts of purchase, or, with the
17    prior approval of the Authority, payments for  the  purchases
18    of  the  such  properties;  (2)  legal,  organizational,  and
19    consultants'  expenses;  (3)  payment of fees for preliminary
20    feasibility studies and engineering and  architectural  work;
21    (4)  necessary  application  and other fees to federal, State
22    and  local  government  agencies;  and  (5)  any  such  other
23    expenses as the Authority may deem appropriate to  effectuate
24    the purposes of this Act.
25        (c)  "Assisted  mortgage  financing" means a below market
26    interest rate mortgage insured or purchased, or a loan  made,
27    by  the  Secretary of the United States Department of Housing
28    and Urban Development or  by  any  other  federal  agency  or
29    governmental  corporation  or by any political subdivision of
30    the State of Illinois or by any Illinois public  corporation;
31    a  market  interest  rate mortgage insured or purchased, or a
 
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 1    loan made in combination with, or as augmented by, a  program
 2    of    rent    supplements,   interest   subsidies,   leasing,
 3    contributions or grants, or other  programs  as  are  now  or
 4    hereafter  authorized by federal law to serve low or moderate
 5    income persons; a mortgage or loan made pursuant to this Act;
 6    or a mortgage or loan from any private or public source  with
 7    an  interest rate and terms satisfactory to the Authority and
 8    which will meet the requirements and purposes of this Act.
 9        (d)  "Lending institution" means any bank, trust company,
10    savings bank, savings and  loan  association,  credit  union,
11    national  banking  association, mortgage banking association,
12    federal savings and loan association or federal  credit  unit
13    maintaining  an office in the State, any insurance company or
14    any other entity or  organization  which  makes  or  acquires
15    loans secured by real property.
16        (e)  "Residential  mortgage"  means  a  loan  owed  to  a
17    lending  institution,  to  the  Authority or to a trustee for
18    holders of bonds or notes of the Authority or  to  a  trustee
19    for  owners  of  pools of mortgages, and secured by a lien on
20    real  property  located  in  the  State  and  improved  by  a
21    residential structure of one or more living units or a  mixed
22    residential  and  commercial  structure, or unimproved if the
23    proceeds of the such loan shall be used for the erection of a
24    residential structure or a mixed residential  and  commercial
25    structure  thereon,  whether  or  not such loan is insured or
26    guaranteed by the United States of America or any  agency  or
27    corporation thereof.
28        (f)  "Development"  means  a specific work or improvement
29    undertaken to provide dwelling accommodations, including  the
30    acquisition,   construction   or   rehabilitation  of  lands,
31    buildings  and  community  facilities   and   in   connection
32    therewith  to  provide nonhousing facilities which are a part
33    of a planned large-scale project or new community.
34        (g)  "Persons and families of low  and  moderate  income"
 
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 1    and  "Low  income  or moderate income persons" means families
 2    and persons who cannot afford to pay  the  amounts  at  which
 3    private  enterprise,  without assisted mortgage financing, is
 4    providing a substantial supply of decent, safe, and  sanitary
 5    housing. The income limits for the admission of such families
 6    and  persons to developments shall be those established under
 7    pursuant to the rules applicable  to  the  assisted  mortgage
 8    financing  program  under  which  the  such  developments are
 9    financed.
10        (h)  "Moderate rentals"  means  rent  charges  less  than
11    those  rents  generally  charged  for  new  dwelling units of
12    comparable size and location built by the unassisted  efforts
13    of  private  enterprise  and  financed at then current market
14    interest rates.
15        (i)  "Low rentals" means rent charges at least 10%  lower
16    than moderate rentals.
17        (j)  "Rents"  or  "Rentals"  means  shall  mean  fees  or
18    charges paid for use of a development under this Act, whether
19    the  development is operated on a landlord-tenant basis or as
20    a condominium or cooperative.
21        (k)  "Limited-profit entity" means any individual,  joint
22    venture,   partnership,   limited   partnership,   trust,  or
23    corporation organized or existing under the laws of the State
24    of Illinois or authorized to do business in  this  State  and
25    having  articles  of incorporation or comparable documents of
26    organization or a written agreement with the Authority which,
27    in addition to other requirements of law, provide:
28             (1)  that if the limited-profit entity receives  any
29        loan  from  the Authority as provided for in this Act, it
30        shall be authorized to enter into an agreement  with  the
31        Authority  providing  for  regulations  with  respect  to
32        rents,  profits, dividends and disposition of property or
33        franchises; and
34             (2)  that if the limited-profit  entity  receives  a
 
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 1        loan,  as  provided  for in this Act, the Chairman of the
 2        Authority,  acting  with  the  prior  approval   of   the
 3        Authority,  shall  have  the power, if he determines that
 4        any such loan is in jeopardy of not being repaid, or that
 5        the proposed development for which the such loan was made
 6        is  in  jeopardy  of  not  being  constructed,   or   the
 7        limited-profit  entity is otherwise in violation of rules
 8        and regulations promulgated by the Authority, to  appoint
 9        to the board of directors or other comparable controlling
10        body  of  the  such limited-profit entity a number of new
11        directors or persons, which number shall be sufficient to
12        constitute  a  voting  majority  of  the  such  board  or
13        controlling body, notwithstanding any other provisions of
14        the limited-profit entity's articles of incorporation  or
15        other   documents   of  organization,  or  of  any  other
16        provisions of law, provided  that  this  requirement  set
17        forth  in this paragraph (2) is not mandatory in the case
18        of loans made solely with  monies  from  the  Authority's
19        administrative fund.
20        (l)  "Land development" means the process of clearing and
21    grading  land, making, installing, or constructing waterlines
22    and  water  supply  installations,  sewerlines   and   sewage
23    disposal  installations,  steam,  gas, and electric lines and
24    installations, roads,  streets,  curbs,  gutters,  sidewalks,
25    storm  drainage  facilities, and other installations or work,
26    whether on or off the site, necessary or desirable to prepare
27    land for residential, commercial, industrial, or other  uses,
28    or to provide facilities for public or common use.
29        (m)  "Nonprofit    corporation"    means    a   nonprofit
30    corporation incorporated pursuant to the  provisions  of  the
31    Illinois  General  Not  For Profit Corporation Act of 1986 or
32    the  State  Housing  Act  of  1933  and  having  articles  of
33    incorporation which, in addition  to  other  requirements  of
34    law, provide:
 
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 1             (1)  that  the  corporation  has  been  organized to
 2        provide  housing  facilities  for  persons  of  low   and
 3        moderate income;
 4             (2)  that all income and earnings of the corporation
 5        shall  be  used  exclusively for corporation purposes and
 6        that no part of the net income or  net  earnings  of  the
 7        corporation  shall  inure to the benefit or profit of any
 8        private individual, firm,  corporation,  partnership,  or
 9        association;
10             (3)  that the corporation is in no manner controlled
11        or  under  the  direction  or  acting  in the substantial
12        interest of  private  individuals,  firms,  corporations,
13        partnerships, or associations seeking to derive profit or
14        gain therefrom or seeking to eliminate or minimize losses
15        in any dealings or transactions therewith;
16             (4)  that  if  the  corporation receives any loan or
17        advance from the Authority as provided for in  this  Act,
18        it  shall  be  authorized to enter into an agreement with
19        the Authority providing for regulation  with  respect  to
20        rents, profits, dividends, and disposition of property or
21        franchises;
22             (5)  that  if  the  corporation  receives  a loan or
23        advance, as provided for in this Act, the chairman of the
24        Authority, acting with the prior approval of the majority
25        of the members of the Authority, shall have the power  if
26        he  determines  that  any  such  loan  or  advance  is in
27        jeopardy of  not  being  repaid,  or  that  the  proposed
28        development  for  which the such loan or advance was made
29        is in jeopardy of not being  constructed,  or  that  some
30        part of the net income or net earnings of the corporation
31        is  inuring  to  the  benefit  of any private individual,
32        firm, corporation, partnership, or association,  or  that
33        the corporation is in some manner controlled or under the
34        direction of or acting in the substantial interest of any
 
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 1        private  individual,  firm,  corporation, partnership, or
 2        association seeking to derive benefit or  gain  therefrom
 3        or  seeking  to  eliminate  or  minimize  losses  in  any
 4        dealings or transactions therewith, or is in violation of
 5        rules  and  regulations  promulgated  by the Authority to
 6        appoint to the board of directors of the such corporation
 7        a  number  of  new  directors,  which  number  shall   be
 8        sufficient  to  constitute  a majority of the such board,
 9        notwithstanding any other provisions of the such articles
10        of incorporation or of any other provisions of law; and
11             (6)  that each development of the  such  corporation
12        shall  be  operated  exclusively  for  the benefit of the
13        persons who are housed in  the  such  development,  which
14        shall  include  families  or  persons  of low or moderate
15        income as  required  by  this  Act,  and  that  the  such
16        development  shall reserve for families or persons of low
17        or moderate income the number and types of dwelling units
18        required by applicable federal or State law.
19        The requirements contained in paragraphs  (2),  (3),  (5)
20    and  (6)  are  not mandatory in the case of loans made solely
21    from the Authority's administrative fund.
22        (n)  "State" means the State of Illinois.
23        (o)  "Community facilities" means  the  land,  buildings,
24    improvements  and equipment for land development, for health,
25    welfare, recreational,  social,  educational  and  commercial
26    activities, and for public, common or municipal services.
27        (p)  "Sinking  fund  payment"  means  the amount of money
28    specified in the resolution or resolutions  authorizing  term
29    bonds  as  payable  into  a  sinking fund during a particular
30    period for the retirement of term  bonds  at  maturity  after
31    that such period, but shall not include any amount payable by
32    reason only of the maturity of a bond.
33        (q)  "Housing   related   commercial   facilities"  means
34    commercial facilities which are or are to  be  related  to  a
 
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 1    development.    Commercial   facilities   are  related  to  a
 2    development  if  they  are,  in  the  sole  judgment  of  the
 3    Authority, located in the same area as  the  development  and
 4    (i)  necessary  or desirable in order to provide services for
 5    residents of that area in which the development  is  located;
 6    or   (ii)  a  portion  of  the  revenues  of  the  commercial
 7    facilities are to be used to provide funds for  paying  costs
 8    of   construction,  acquisition,  rehabilitation,  operation,
 9    maintenance of or payment of debt service on the  development
10    or  (iii)  necessary  or  desirable  in  order  to  make  the
11    development   successful,   such   as,   without  limitation,
12    eliminating  or  preventing  slum  or  blighted   conditions,
13    preserving  historic  structures  or ensuring that facilities
14    are not inconsistent with the development.  For  purposes  of
15    this   Section,   "commercial   facilities"   includes  land,
16    buildings,  improvements,   equipment   and   all   ancillary
17    facilities  for  use  for  offices, stores, retirement homes,
18    hotels,  financial   institutions,   service   health   care,
19    education, recreation or research establishments or any other
20    commercial purpose.
21        (r)  "Rate   protection  contract"  means  interest  rate
22    exchange agreements; currency  exchange  agreements;  forward
23    payment   conversion   agreements;  contracts  providing  for
24    payment or receipt of funds based on levels  of,  or  changes
25    in,  interest  rates, currency exchange rates, stock or other
26    indices; contracts to exchange cash  flows  or  a  series  of
27    payments;  contracts,  including without limitation, interest
28    rate  caps;  interest  rate  floors;  interest  rate   locks;
29    interest   rate   collars;   rate  of  return  guarantees  or
30    assurances, to manage  payment,  currency,  rate,  spread  or
31    similar  exposure; the obligation, right, or option to issue,
32    put, lend, sell, grant a security interest in, buy, borrow or
33    otherwise acquire, a bond, note or other security or interest
34    therein as an investment,  as  collateral,  as  a  hedge,  or
 
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 1    otherwise  as  a  source or assurance of payment to or by the
 2    Authority  or  as  a  reduction  of  the  Authority's  or  an
 3    obligor's risk exposure;  repurchase  agreements;  securities
 4    lending  agreements;  and  other  agreements  or arrangements
 5    similar to the foregoing.
 6        (s)  "Affordable Housing  Program  Trust  Fund  Bonds  or
 7    Notes"  means bonds or notes issued by the Authority pursuant
 8    to the provisions of this Act for the purposes  of  providing
 9    affordable  housing  to  low  and  very low income persons as
10    provided in the Illinois Affordable Housing Act  through  the
11    use  or  pledge,  in  whole  or in part, of Trust Fund Moneys
12    dedicated or otherwise made available to the Authority.
13        (t)  "Trust Fund Moneys" has the meaning  given  to  that
14    term in Section 3 of the Illinois Affordable Housing Act.
15    (Source: P.A. 87-250; 88-93.)

16        Section  99.  Effective date.  This Act takes effect upon
17    becoming law.