(310 ILCS 20/5) (from Ch. 67 1/2, par. 57)
Sec. 5. Any grants paid hereunder to a housing authority shall be
deposited in a separate fund and, subject to the approval of the
Department of Commerce and Economic Opportunity, may be used for any or all of
the following purposes as the needs of the community may require: the
acquisition of land by purchase, gift or condemnation and the
improvement thereof, the purchase and installation of temporary housing
facilities, the construction of housing units for rent or sale to
veterans, the families of deceased servicemen, and for persons and
families who by reason of overcrowded housing conditions or displacement
by eviction, fires or other calamities, or slum clearance or other
private or public project involving relocation, are in urgent need of
safe and sanitary housing, the making of grants in connection with the
sale or lease of real property as provided in the following paragraph of
this section, and for any and all purposes authorized by the "Housing
Authorities Act," approved March 19, 1934, as amended, including
administrative expenses of the housing authorities in relation to the
aforesaid objectives, to the extent and for the purposes
authorized and
approved by the Department of Commerce and Economic Opportunity. Each housing
authority is vested with power to exercise the right of eminent domain
for the purposes authorized by this Act. Condemnation proceedings
instituted by any such authority shall be in all respects in the manner
provided for the exercise of the right of
eminent domain under the Eminent Domain Act.
In addition to the foregoing, and for the purpose of facilitating the
development and construction of housing, housing authorities may, with
the approval of the Department of Commerce and Economic Opportunity, enter into
contracts and agreements for the sale or lease of real property acquired
by the Authority through the use of the grant hereunder, and may sell or
lease such property to (1) housing corporations operating under "An Act
in relation to housing," approved July 12, 1933, as amended; (2)
neighborhood redevelopment corporations operating under the
"Neighborhood Redevelopment Corporation Law," approved July 9, 1941; (3)
insurance companies operating under Article VIII of the Illinois
Insurance Code; (4) non-profit
corporations organized for the purpose of constructing, managing and
operating housing projects and the improvement of housing conditions,
including the sale or rental of housing units to persons in need
thereof; or (5) to any other individual, association or corporation,
including bona fide housing cooperatives, desiring to engage in a
development or redevelopment project. The term "corporation" as used in
this section, means a corporation organized under the laws of this or
any other state of the United States, or of any country, which may
legally make investments in this State of the character herein
prescribed, including foreign and alien insurance companies as defined
in Section 2 of the "Illinois Insurance Code." No sale or lease shall be
made hereunder to any of the aforesaid corporations,
associations or
individuals unless a plan approved by the Authority has been presented
by the purchaser or lessee for the development or redevelopment of such
property, together with a bond, with satisfactory sureties, of not less
than 10% of the cost of such development or redevelopment, conditioned
upon the completion of such development or redevelopment; provided that
the requirement of the bond may be waived by the Department of Commerce
and Economic Opportunity if it is satisfied of the
financial ability of the
purchaser or lessee to complete such development or redevelopment in
accordance with the presented plan. To further assure that the real
property so sold or leased shall be used in accordance with the plan,
the Department of Commerce and Economic Opportunity may require the purchaser or
lessee to execute in writing such undertakings as the Department deems
necessary to obligate such purchaser or lessee (1) to use the property
for the purposes presented in the plan; (2) to commence and complete the
building of the improvements designated in the plan within the periods
of time that the Department of Commerce and Economic Opportunity fixes as
reasonable, and (3) to comply with such other conditions as are
necessary to carry out the purposes of this Act. Any such property may
be sold pursuant to this section for any legal consideration in an
amount to be approved by the Department of Commerce and Economic Opportunity.
Subject to the approval of the Department of Commerce and Economic Opportunity,
a housing authority may pay to any non-profit corporation of the
character described in this section from grants made available from
state funds, such sum of money which, when added to the value of the
land so sold or leased to such non-profit corporation and the value of
other assets of such non-profit corporation available for use in the
project, will enable such non-profit corporation to obtain Federal
Housing Administration insured construction mortgages. Any such
authority may also sell, transfer, convey or assign to any such
non-profit corporation any personal property, including building
materials and supplies, as it deems necessary to facilitate the
completion of the development or redevelopment by such non-profit
corporation.
If the area of operation of a housing authority includes a city,
village or incorporated town having a population in excess of 500,000,
as determined by the last preceding Federal Census, no real property or
interest in real property shall be acquired in such municipality by the
housing authority until such time as the housing authority has advised
the governing body of such municipality of the description of the real
property, or interest therein, proposed to be acquired, and the
governing body of the municipality has approved the acquisition thereof
by the housing authority.
(Source: P.A. 94-793, eff. 5-19-06; 94-1055, eff. 1-1-07.)
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