Full Text of HB1108 97th General Assembly
HB1108ham001 97TH GENERAL ASSEMBLY | Rep. Karen A. Yarbrough Filed: 3/8/2011
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| 1 | | AMENDMENT TO HOUSE BILL 1108
| 2 | | AMENDMENT NO. ______. Amend House Bill 1108 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Findings. The General Assembly finds that | 5 | | additional action is needed to help prevent foreclosures and | 6 | | revitalize the economy in the State of Illinois. Foreclosures | 7 | | are leaving families homeless or in dire financial straits. | 8 | | Many borrowers could receive loan modifications under their | 9 | | existing mortgage, which would help to alleviate this crisis, | 10 | | keep families in their homes, and save Illinois neighborhoods | 11 | | and communities from further damage. Many foreclosures could be | 12 | | prevented with a modest investment in prevention activities, | 13 | | including, outreach to borrowers and court-sponsored mediation | 14 | | to help borrowers and lenders arrive at mutually-agreeable loan | 15 | | modifications. Foreclosed properties contribute to the number | 16 | | of vacant, abandoned, and tax-delinquent properties that | 17 | | threaten communities around the State because those properties |
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| 1 | | diminish property values, enable crime, and create health | 2 | | hazards. Such properties also impose large costs on | 3 | | municipalities and, at the same time, result in decreased | 4 | | revenue for the municipalities. The need exists to address the | 5 | | problems of vacant and abandoned property in a coordinated | 6 | | manner and to foster the development of such property and | 7 | | promote economic growth. Municipalities lack tools necessary | 8 | | to ensure that vacant properties are adequately maintained and | 9 | | secured. Land banks are one of the tools that can be used by | 10 | | communities to facilitate the return of vacant, abandoned, and | 11 | | tax-delinquent properties to productive use. Local governments | 12 | | should be empowered to create land banks to acquire, develop, | 13 | | maintain, and dispose of vacant and abandoned properties that | 14 | | present a threat to communities around the State. Abandoned | 15 | | properties may remain in the foreclosure process for a year or | 16 | | more, which harms both communities and financial institutions | 17 | | with a legal interest in the property. The foreclosure process | 18 | | for abandoned properties should be expedited to help return the | 19 | | properties to productive use. | 20 | | Section 3. Short title. This Act may be cited as the | 21 | | Illinois Land Banking Act. | 22 | | Section 5. Definitions. | 23 | | "Authority" means the land bank authority created pursuant | 24 | | to this Act.
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| 1 | | "Governmental unit" means a county or municipality. | 2 | | "Intergovernmental agreement" means a contractual | 3 | | agreement between 2 or more governmental agencies, including, | 4 | | but not limited to, an agreement to jointly exercise any power, | 5 | | privilege, or authority that agencies share in common and that | 6 | | each might exercise separately under this Act.
| 7 | | Section 10. Authorization. A municipality may create a land | 8 | | bank authority with the powers and restrictions specified in | 9 | | this Act. In creating an authority, the municipality shall | 10 | | provide for all of the following: | 11 | | (1) Articles of incorporation for the authority, that | 12 | | shall be filed with the Secretary of State and shall | 13 | | include, in addition to other required and permissible | 14 | | articles, an article specifying that the purpose of the | 15 | | land bank authority is to stabilize communities by: | 16 | | (A) Acquiring property that is vacant or abandoned | 17 | | and in the foreclosure process or is otherwise | 18 | | nonrevenue-generating or nontax-producing. | 19 | | (B) Facilitating the reclamation, rehabilitation, | 20 | | and reutilization of property that is vacant, | 21 | | abandoned, in process of foreclosure, or is otherwise | 22 | | nonrevenue-generating or nontax-producing. | 23 | | (C) Efficiently holding and managing property that | 24 | | is vacant, abandoned, in process of foreclosure, or is | 25 | | otherwise nonrevenue-generating or nontax-producing |
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| 1 | | pending its reclamation, rehabilitation, and | 2 | | reutilization. | 3 | | (2) The size of the board of directors for the | 4 | | authority, which shall be composed of an odd number of | 5 | | members. | 6 | | (3) The qualifications, methods of selection, and | 7 | | terms of office of the board members. | 8 | | Two or more governmental units may elect to enter into an | 9 | | intergovernmental agreement that creates a single land bank to | 10 | | act on behalf of the governmental units, and the agreement | 11 | | shall be authorized by and be in accordance with the provisions | 12 | | of this Section. | 13 | | Section 15. Board of directors; conflicts of interest. The | 14 | | authority shall be governed by a board of directors. The board | 15 | | shall consist of 3 or more directors. The board of directors | 16 | | shall be composed of an odd number of members. The size of the | 17 | | board may be adjusted in accordance with the land bank's | 18 | | by-laws.
| 19 | | Notwithstanding any law to the contrary, any public officer | 20 | | shall be eligible to serve as a board member and the acceptance | 21 | | of the appointment shall neither terminate nor impair such | 22 | | public office. For the purposes of this Section, "public | 23 | | officer" means a person who is elected to a State or local | 24 | | government office.
| 25 | | Any State or local government employee shall be eligible to |
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| 1 | | serve as a board member.
| 2 | | The board of the authority shall meet from time to time as | 3 | | required, and the presence of a majority of the board of | 4 | | directors shall constitute a quorum. A chairperson shall be | 5 | | elected from among the members, and he or she shall execute all | 6 | | deeds, leases, and contracts of the authority when authorized | 7 | | by the board. The board of the authority shall conduct meetings | 8 | | in accordance with the Open Meetings Act. The board of the | 9 | | authority shall adopt a code of ethics for its directors, | 10 | | officers, and employees. The board of the authority shall | 11 | | establish policies and procedures requiring the disclosure of | 12 | | relationships that may give rise to a conflict of interest. | 13 | | Members of a board shall not be liable personally for the | 14 | | obligations of the land bank, and the rights of creditors shall | 15 | | be solely against the land bank. | 16 | | Members of the board must file written statements of | 17 | | economic interest in accordance with Section 4A-101 of the | 18 | | Illinois Governmental Ethics Act. | 19 | | The board of the authority shall require that any member of | 20 | | the board with a direct or indirect interest in any matter | 21 | | disclose the member's interest to the board before the board | 22 | | takes any action on that matter.
| 23 | | Members of the board of directors of an authority shall | 24 | | serve without compensation.
| 25 | | It shall be unlawful for a member of the board, the spouse | 26 | | of a member of the board, or an immediate family member of a |
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| 1 | | member of the board to have or acquire a contract or have or | 2 | | acquire a direct pecuniary interest in a contract with the | 3 | | authority that relates to the authority. Any of these contracts | 4 | | shall be deemed null and void. The limitations shall remain in | 5 | | force for one year after the conclusion of the person's term of | 6 | | office.
| 7 | | If a member of the board, the spouse of a member of the | 8 | | board, or an immediate family member of a member of the board | 9 | | is entitled to receive distributable income of a partnership, | 10 | | association, corporation, or other business entity, then it is | 11 | | unlawful for that partnership, association, corporation, or | 12 | | other business entity to have or acquire a contract or a direct | 13 | | pecuniary interest in a contract with the authority that | 14 | | relates to the authority. Any of these contracts shall be | 15 | | deemed null and void. The limitations shall remain in force for | 16 | | one year after the conclusion of the person's term of office.
| 17 | | Section 20. Powers. The authority may perform any or all | 18 | | of the powers enumerated in this Section, subject to any | 19 | | conditions, restrictions, or limitations of the governmental | 20 | | unit, including the power to: | 21 | | (a) Acquire property pursuant to Section 25 of this | 22 | | Act.
| 23 | | (b) Adopt, amend, and repeal bylaws for the regulation | 24 | | of its affairs and the conduct of its business.
| 25 | | (c) Sue and be sued in its own name and plead and be |
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| 1 | | impleaded, including, but not limited to, defending the | 2 | | authority in an action to clear title to property conveyed | 3 | | by the authority.
| 4 | | (d) Take any action, provide any notice, or instate any | 5 | | proceeding required to clear or quiet title to property | 6 | | held by the authority in order to establish ownership by | 7 | | and vest title to property in the authority.
| 8 | | (e) Be made party to and defend any action or | 9 | | proceeding concerning title claims against property held | 10 | | by the authority.
| 11 | | (f) Subject to the written approval of the board of | 12 | | directors and the municipality that created the authority | 13 | | under this Act, borrow money and issue bonds and notes.
| 14 | | (g) Enter into contracts and other instruments | 15 | | necessary, incidental, or convenient to the performance of | 16 | | its duties and the exercise of its powers, including, but | 17 | | not limited to, intergovernmental agreements, for the | 18 | | joint exercise of power under this Act. | 19 | | (h) Enter into contracts for the management of, the | 20 | | collection of rent from, and the sale of real property held | 21 | | by an authority. | 22 | | (i) Enter into contracts with other entities, public or | 23 | | private, for the provision of all or a portion of the | 24 | | services necessary for the management and operation of the | 25 | | authority.
| 26 | | (j) Solicit and accept gifts, grants, labor, loans, and |
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| 1 | | other aid from any person, the federal government, this | 2 | | State, a political subdivision of this State or any agency | 3 | | of the federal government, or an intergovernmental entity | 4 | | created under the laws of this State or participate in any | 5 | | other way in a program of the federal government, this | 6 | | State, a political subdivision of this State, or an | 7 | | intergovernmental entity created under the laws of this | 8 | | State.
| 9 | | (k) Procure insurance against loss in connection with | 10 | | the property, assets, or activities of the authority.
| 11 | | (l) Control, hold, manage, maintain, operate, repair, | 12 | | lease as lessor, secure, prevent the waste or deterioration | 13 | | of, demolish, and take all other actions necessary to | 14 | | preserve the value of the property it holds or owns.
| 15 | | (m) Remediate environmental contamination on any | 16 | | property held by the authority.
| 17 | | (n) Fix, charge, and collect rents, fees, and charges | 18 | | for use of property under the control of the authority or | 19 | | for services provided by the authority.
| 20 | | (o) Grant or acquire a license, easement, or option | 21 | | with respect to property as the authority determines is | 22 | | reasonably necessary to achieve the purposes of the Act.
| 23 | | (p) Pay any tax or special assessment due on property | 24 | | acquired or owned by the authority.
| 25 | | (q) Subject to the Public Funds Investment Act, invest | 26 | | money of the authority, at the discretion of the board of |
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| 1 | | directors of the authority, in instruments, obligations, | 2 | | securities, or property determined proper by the board of | 3 | | directors of the authority, and name and use depositories | 4 | | for its money. | 5 | | (r)
Employ its own employees or use employees of the | 6 | | authorizing municipality or employees of the parties to | 7 | | intergovernmental agreements.
| 8 | | (s) Employ legal and technical experts, other | 9 | | officers, agents, or employees and pay them from the funds | 10 | | of the authority and determine the qualifications, duties, | 11 | | and compensation of those it employs.
| 12 | | (t) The board of directors of an authority may delegate | 13 | | to one or more of its members, officers, agents, or | 14 | | employees any powers or duties it considers proper.
| 15 | | (u) Reimburse members of the board of directors of the | 16 | | authority for actual and necessary expenses subject to | 17 | | available appropriations.
| 18 | | (v) Contract for goods and services and engage | 19 | | personnel as necessary and engage the services of private | 20 | | consultants, managers, legal counsel, engineers, accounts, | 21 | | and auditors for rendering professional financial | 22 | | assistance and advice payable out of any money available to | 23 | | the authority.
| 24 | | (w) Prepare the reports or plans the authority | 25 | | considers necessary to assist it in the exercise of its | 26 | | powers under this Act and to monitor and evaluate progress |
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| 1 | | under this Act.
| 2 | | (x) Extinguish taxes pursuant to Section 35 of this | 3 | | Act. | 4 | | (y) Convey, sell, transfer, exchange, lease as lessor, | 5 | | or otherwise dispose of property, rights, or interests in | 6 | | property to which the authority holds a legal interest to | 7 | | any public or private person for value determined by the | 8 | | authority. | 9 | | An authority shall not exercise the power of eminent | 10 | | domain. | 11 | | The powers granted by this Act are in addition to the | 12 | | powers granted by any other law, statute, or charter. | 13 | | Section 25. Acquisition of property. The authority may | 14 | | acquire real property or rights or interests in real property | 15 | | by gift, devise, transfer, exchange, foreclosure, purchase, | 16 | | purchase contracts, lease purchase agreements, installment | 17 | | sales contracts, land contracts, or otherwise on terms and | 18 | | conditions and in a manner the authority considers proper. | 19 | | The authority may hold and own in its name any property | 20 | | acquired by it or conveyed to it by this State, a foreclosing | 21 | | governmental unit, a unit of local government, an | 22 | | intergovernmental entity created under the laws of this State, | 23 | | or any other public or private person, including, but not | 24 | | limited to, property without clear title. | 25 | | The authority may only acquire property within the |
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| 1 | | jurisdiction of one of the municipalities granting the | 2 | | authority power under this Act or within the jurisdiction of a | 3 | | governmental entity pursuant to an intergovernmental agreement | 4 | | with that governmental entity. A property outside the corporate | 5 | | limits of a municipality is not considered within the | 6 | | jurisdiction of the municipality until annexation is completed | 7 | | pursuant to Section 7-1-1 of the Illinois Municipal Code. | 8 | | All deeds, mortgages, contracts, leases, purchases, or | 9 | | other agreements regarding property of an authority, including | 10 | | agreements to acquire or dispose of real property, shall be | 11 | | approved by and executed in the name of the authority. | 12 | | The authority shall have the right to purchase properties | 13 | | at tax sales conducted in accordance with Division 3.5 of the | 14 | | Property Tax Code. | 15 | | (1) The authority may tender a bid at a tax sale that | 16 | | is a credit bid, consisting of the obligation of the | 17 | | authority to satisfy the component parts of the bid by | 18 | | payments to the respective political subdivisions. | 19 | | (2) A bid by the authority at a tax sale for the | 20 | | minimum amount shall take priority over all other bids for | 21 | | the same property. | 22 | | Section 30. Financing of land bank operations. A land bank | 23 | | may receive funding through grants and loans from the | 24 | | governmental unit that created the land bank, from other | 25 | | municipalities, from the State of Illinois, from the federal |
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| 1 | | government, and from other public and private sources. | 2 | | A land bank may receive and retain payments for services | 3 | | rendered, for rents and leasehold payments received, for | 4 | | consideration for disposition of real and personal property, | 5 | | for proceeds of insurance coverage for losses incurred, for | 6 | | income from investments, and for any other asset and activity | 7 | | lawfully permitted to a land bank under this Act | 8 | | A municipality may authorize the remittance of a portion of | 9 | | the real property taxes collected on real property conveyed by | 10 | | a land bank authority. Up to 50% of those taxes may be remitted | 11 | | to the land bank authority for up to 5 years after the land | 12 | | bank has completed the conveyance of the property. | 13 | | A land bank shall have power to issue bonds for any of its | 14 | | corporate purposes, the principal and interest of which are | 15 | | payable from its revenues generally. Any of the bonds may be | 16 | | secured by a pledge of any revenues, including grants or | 17 | | contributions, or by a mortgage of any property of the land | 18 | | bank. | 19 | | Bonds issued by the land bank shall be authorized by | 20 | | resolution of the board and shall be limited obligations of the | 21 | | land bank; the principal and interest, costs of issuance, and | 22 | | other costs incidental thereto shall be payable solely from the | 23 | | income and revenue derived from the sale, lease, or other | 24 | | disposition of the assets of the land bank. In the discretion | 25 | | of the land bank, the bonds may be additionally secured by | 26 | | mortgage or other security device covering all or part of the |
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| 1 | | project from which the revenues so pledged may be derived. Any | 2 | | refunding bonds issued shall be payable from any source | 3 | | described in this Section or from the investment of any of the | 4 | | proceeds of the refunding bonds and shall not constitute an | 5 | | indebtedness or pledge of the general credit of any | 6 | | governmental unit or municipality within the meaning of any | 7 | | constitutional or statutory limitation of indebtedness, and | 8 | | each bond shall state that requirement. | 9 | | Section 35. Taxes. When real property is acquired by the | 10 | | authority, and that real property is encumbered by a lien or | 11 | | claim for real property taxes owed to the governmental unit or | 12 | | units that created the land bank, the land bank shall have the | 13 | | power, by resolution of the board, to discharge and extinguish | 14 | | any and all liens and claims. Whenever any real property is | 15 | | acquired by a land bank, and that real property is encumbered | 16 | | by a lien or claim for real property taxes owed to the school | 17 | | district, or to a municipality other than the governmental unit | 18 | | or units that created the land bank, the land bank shall have | 19 | | the power, by resolution of the board, to discharge and | 20 | | extinguish any and all such liens or claims if and only if the | 21 | | school district, or municipality other than the governmental | 22 | | unit or units that created the land bank, and the land bank, | 23 | | have entered into an agreement authorizing such discharge and | 24 | | extinguishment. To the extent necessary and appropriate, the | 25 | | land bank shall file in appropriate public records evidence of |
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| 1 | | the extinguishment and dissolution of the liens or claims. | 2 | | All moneys received by an authority as payment of taxes, | 3 | | penalties, or interest, or from the redemption or sale of | 4 | | property subject to a tax lien of any taxing unit shall be | 5 | | returned to the appropriate local tax collecting unit in which | 6 | | the property is located. | 7 | | Property of an authority is public property devoted to an | 8 | | essential public and governmental function and purpose. Income | 9 | | of the authority is considered to be for a public and | 10 | | governmental purpose. The property of the authority and its | 11 | | income and operation are exempt from all taxes and special | 12 | | assessments of this State and all units of local government. | 13 | | Bonds or notes issued by the authority, and the interest on and | 14 | | income from those bonds and notes, are exempt from all taxation | 15 | | of this State or a unit of local government. | 16 | | Section 40. Proceeds. Except as otherwise provided in this | 17 | | Act, as required by other law, as required under the provisions | 18 | | of a deed, or as an authority otherwise agrees, any proceeds | 19 | | received by the authority may be retained by the authority for | 20 | | the purposes of this Act. | 21 | | Section 45. Record maintenance. The authority shall | 22 | | maintain a written inventory of all property held by the | 23 | | authority. The property shall be inventoried and classified by | 24 | | the authority according to title status and suitability for |
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| 1 | | use. The inventory shall be available for public inspection | 2 | | during regular business hours. | 3 | | For each property held, the authority shall establish and | 4 | | maintain itemized records and accounts reflecting all | 5 | | transactions, expenditures, and revenues relating to all | 6 | | property held by the authority. | 7 | | Section 50. Dissolution. The articles of incorporation | 8 | | shall specify the procedure under which a land bank authority | 9 | | may be dissolved. Upon dissolution of the land bank all real | 10 | | property, personal property, and other assets of the land bank | 11 | | shall become the assets of the governmental unit or units that | 12 | | created the land bank. In the event that 2 or more governmental | 13 | | units create a land bank authority, the withdrawal of one or | 14 | | more governmental units shall not result in the dissolution of | 15 | | the land bank unless the intergovernmental agreement so | 16 | | provides, and there is no governmental unit that desires to | 17 | | continue the existence of the land bank.
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.".
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