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90_HB3081enr
65 ILCS 5/11-74.4-1 from Ch. 24, par. 11-74.4-1
Amends the Tax Increment Allocation Redevelopment Act in
the Illinois Municipal Code. Makes a technical change in the
short title Section.
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1 AN ACT to amend the Illinois Municipal Code.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5 changing Sections 8-4-1, 11-74.5-2, 11-74.5-3, and 11-74.5-5
6 as follows:
7 (65 ILCS 5/8-4-1) (from Ch. 24, par. 8-4-1)
8 Sec. 8-4-1. No bonds shall be issued by the corporate
9 authorities of any municipality until the question of
10 authorizing such bonds has been submitted to the electors of
11 that municipality, and approved by a majority of the electors
12 voting upon that question. The clerk shall certify the
13 proposition of the corporate authorities to the proper
14 election authority who shall submit the question at an
15 election in accordance with the general election law.
16 Notice of any such election shall contain the amount of
17 the bond issue, purpose for which issued, and maximum rate of
18 interest.
19 However, without the submission of the question of
20 issuing bonds to the electors, the corporate authorities of
21 any municipality may authorize the issuance of any of the
22 following bonds:
23 (1) Bonds to refund any existing bonded indebtedness;
24 (2) Bonds to fund or refund any existing judgment
25 indebtedness;
26 (3) In any municipality of less than 500,000 population,
27 bonds to anticipate the collection of installments of special
28 assessments and special taxes against property owned by the
29 municipality and to anticipate the collection of the amount
30 apportioned to the municipality as public benefits under
31 Article 9;
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1 (4) Bonds issued by any municipality under Sections
2 8-4-15 through 8-4-23, 11-23-1 through 11-23-12, 11-25-1
3 through 11-26-6, 11-71-1 through 11-71-10, 11-74.4-1 through
4 11-74.4-11, 11-74.5-1 through 11-74.5-15, 11-94-1 through
5 11-94-7, 11-102-1 through 11-102-10, 11-103-11 through
6 11-103-15, 11-118-1 through 11-118-6, 11-119-1 through
7 11-119-5, 11-129-1 through 11-129-7, 11-133-1 through
8 11-133-4, 11-139-1 through 11-139-12, 11-141-1 through
9 11-141-18 of this Code or 10-801 through 10-808 of the
10 Illinois Highway Code, as amended;
11 (5) Bonds issued by the board of education of any school
12 district under the provisions of Sections 34-30 through 34-36
13 of The School Code, as amended;
14 (6) Bonds issued by any municipality under the
15 provisions of Division 6 of this Article 8; and by any
16 municipality under the provisions of Division 7 of this
17 Article 8; or under the provisions of Sections 11-121-4 and
18 11-121-5;
19 (7) Bonds to pay for the purchase of voting machines by
20 any municipality that has adopted Article 24 of The Election
21 Code, approved May 11, 1943, as amended;
22 (8) Bonds issued by any municipality under Sections 15
23 and 46 of the "Environmental Protection Act", approved June
24 29, 1970;
25 (9) Bonds issued by the corporate authorities of any
26 municipality under the provisions of Section 8-4-25 of this
27 Article 8;
28 (10) Bonds issued under Section 8-4-26 of this Article 8
29 by any municipality having a board of election commissioners;
30 (11) Bonds issued under the provisions of "An Act to
31 provide the manner of levying or imposing taxes for the
32 provision of special services to areas within the boundaries
33 of home rule units and nonhome rule municipalities and
34 counties", approved September 21, 1973;
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1 (12) Bonds issued under Section 8-5-16 of this Code;
2 (13) Bonds to finance the cost of the acquisition,
3 construction or improvement of water or wastewater treatment
4 facilities mandated by an enforceable compliance schedule
5 developed in connection with the federal Clean Water Act or a
6 compliance order issued by the United States Environmental
7 Protection Agency or the Illinois Pollution Control Board;
8 provided that such bonds are authorized by an ordinance
9 adopted by a three-fifths majority of the corporate
10 authorities of the municipality issuing the bonds which
11 ordinance shall specify that the construction or improvement
12 of such facilities is necessary to alleviate an emergency
13 condition in such municipality;
14 (14) Bonds issued by any municipality pursuant to
15 Section 11-113.1-1;
16 (15) Bonds issued under Sections 11-74.6-1 through
17 11-74.6-45, the Industrial Jobs Recovery Law of this Code.
18 (Source: P.A. 88-537.)
19 (65 ILCS 5/11-74.5-2) (from Ch. 24, par. 11-74.5-2)
20 Sec. 11-74.5-2. Whenever used in this Division:
21 (a) "Appraised value" means the fair market value of a
22 home determined in accordance with generally accepted
23 procedures and standards applicable to the appraisal of real
24 property.
25 (b) "Bonds" means any revenue bonds authorized under
26 this Division and payable as provided hereunder.
27 (c) "Corporate authorities" means the corporate
28 authorities as defined in this Illinois Municipal Code.
29 (d) "Home" means real property and improvements thereon
30 located within the municipality consisting of not more than 4
31 dwelling units, including but not limited to, condominium
32 units owned by one mortgagor who occupies or intends to
33 occupy one of such units.
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1 (e) "Home mortgage loan" means an interest bearing loan
2 to a mortgagor evidenced by a promissory note and secured by
3 a first mortgage on a home, purchased or originated in
4 accordance with this Division made for the purpose of
5 acquiring a home having an appraised value or a purchase
6 price, whichever is less, of not less than the minimum home
7 value and less than the maximum home value.
8 (f) "Lender" means any lending institution participating
9 in a residential housing finance plan as the originator of
10 home mortgage loans or as a servicing agent for home mortgage
11 loans.
12 (g) "Lending institution" means any bank, bank holding
13 company, credit union, trust company, savings bank, national
14 banking association, savings and loan association, building
15 and loan association, mortgage banker or other financial
16 institution which customarily provides service or otherwise
17 aids in the financing of home mortgages, or any holding
18 company for any of the foregoing.
19 (h) "Maximum home value" means the amount determined by
20 the corporate authorities.
21 (i) "Minimum home value" means the amount determined by
22 the corporate authorities.
23 (j) "Mortgagor" means a person of low or moderate income
24 and who has received or qualifies to receive a home mortgage
25 loan on a home.
26 (k) "Municipality" means a municipality as defined in
27 this Illinois Municipal Code.
28 (l) "Ordinance" means an ordinance adopted and approved
29 by the corporate authorities of a municipality.
30 (m) "Purchase price" means the actual consideration paid
31 to the seller of a home.
32 (n) "Person" means a natural person or persons or a
33 trust, provided that such trust is for the benefit of a
34 natural person or members of such person's immediate family.
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1 (o) "Participation commitment" means any undertaking or
2 agreement by a lending institution to participate in the
3 implementation of a residential housing finance plan.
4 (p) "Persons of low or moderate income" means a person
5 or family (consisting of one or more persons all of whom
6 occupy or will occupy the home) whose aggregate gross income
7 including the gross income of any co-signer or guarantor of
8 the promissory note made in connection with the making of a
9 home mortgage loan does not exceed a maximum amount to be
10 established by the corporate authorities and determined in
11 accordance with appropriate criteria, rules and regulations,
12 approved by the corporate authorities in connection with the
13 implementation of a residential housing finance plan.
14 (q) "Residential housing finance plan" means a program
15 implemented under this Division by a municipality to assist
16 persons of low or moderate income in acquiring safe, decent
17 and sanitary housing which they can afford.
18 (r) "Trustee" means any State or national bank or trust
19 company, having trust powers, located within or outside the
20 State of Illinois, which may be appointed to act in any
21 capacity with respect to a residential housing finance plan
22 and the issuance of bonds to finance such plan whether
23 designated as a trustee, custodian or administrator.
24 (Source: P.A. 81-580.)
25 (65 ILCS 5/11-74.5-3) (from Ch. 24, par. 11-74.5-3)
26 Sec. 11-74.5-3. In addition to powers which a
27 municipality may now have, municipalities have the following
28 powers:
29 (a) To acquire, and to contract and enter into advance
30 commitments to acquire, directly or indirectly, home
31 mortgages owned or originated by lending institutions at such
32 prices and upon such other terms and conditions as shall be
33 determined by such municipality or trustee as it may
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1 designate as its agent;
2 (b) To make and execute contracts with lending
3 institutions for the origination and servicing of home
4 mortgage loans on behalf of a municipality and to pay the
5 reasonable value of services rendered in accordance with such
6 contracts;
7 (c) To make loans to lenders to enable such lenders to
8 make home mortgage loans in accordance with this Division;
9 (d) To establish, by rules or regulations, by ordinances
10 relating to any issuance of bonds or in any financing
11 documents relating to such issuance, such standards and
12 requirements applicable to the purchase of home mortgage
13 loans or the origination of home mortgage loans or loans to
14 lenders as such municipality deems necessary or desirable to
15 effectuate the public purposes of this Act, including but not
16 limited to: (i) the time within which lending institutions
17 must make participation commitments and make disbursements
18 for home mortgage loans; (ii) the terms and conditions of
19 home mortgage loans to be acquired or originated; (iii) the
20 standards and criteria to be applied by the municipality in
21 defining persons of low or moderate income; (iv) the amounts
22 and types of insurance coverage required on homes, home
23 mortgage loans and bonds; (v) the representations and
24 warranties to be required of persons and lending institutions
25 as evidence of compliance with such standards and
26 requirements; (vi) restrictions as to interest rate and other
27 terms of home mortgage loans or the return realized therefrom
28 by lending institutions; (vii) the type and amount of
29 collateral security to be provided to assure repayment of any
30 loans to lenders by such municipalities and to assure
31 repayment of bonds; and (viii) any other matters related to
32 the purchase or origination of home mortgage loans or the
33 making of loans to lenders as shall be deemed relevant or
34 necessary by the corporate authorities of such municipality.
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1 (e) To require from each lending institution from which
2 home mortgage loans are to be purchased or which will
3 originate home mortgage loans on behalf of the municipality
4 or from lenders to which loans are made, the submission, at
5 the time of making participation commitments, of evidence
6 satisfactory to such municipality of the ability and
7 intention of such lending institution to make home mortgage
8 loans, and the submission, within the time specified by such
9 municipality for making disbursements for home mortgage
10 loans, of evidence satisfactory to such municipality of the
11 making of home mortgage loans and of compliance with any
12 standards and requirements established by such municipality.
13 (f) To require that a lending institution or lender
14 furnish, prior to or concurrently with the delivery of any
15 participation commitment by a lending institution, a
16 commitment fee in the form of a cash deposit, letter of
17 credit, promissory note, surety bond or other instrument
18 approved by the corporate authorities executed by or on
19 behalf of such lending institution, in an amount to be
20 determined by the corporate authorities.
21 (g) To issue its bonds to defray, in whole or in part
22 (i) the cost of acquiring or originating home mortgage loans
23 or making loans to lenders in order to enable them to make
24 home mortgage loans; (ii) if deemed necessary or advisable,
25 the costs of paying interest on bonds during a reasonable
26 period necessary to acquire or originate the home mortgage
27 loans or to make the loans to lender, (iii) the costs of
28 studies and surveys, insurance premiums, underwriting fees,
29 legal, accounting and marketing services incurred in
30 connection with the issuance and sale of such bonds,
31 including amounts required to establish reasonably necessary
32 bond and interest reserve accounts, and trustee, custodian
33 and rating agency fees; (iv) the costs of reasonable
34 reserves; and (v) (iv) such other costs as are reasonably
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1 related to the foregoing.
2 (h) To authorize the sale or other disposition of any
3 home mortgage loan, in whole or in part, upon such terms, at
4 such prices and times, and from time to time, as may be
5 necessary to assure that the revenues and receipts to be
6 derived with respect to the home mortgage loans, together
7 with any insurance proceeds, funds held in reserve accounts
8 and earnings thereon, shall produce and provide revenues and
9 receipts at least sufficient to provide for the prompt
10 payment of the principal of, redemption premiums, if any, and
11 interest at maturity of all bonds issued pursuant to this
12 Division or to otherwise authorize the sale or other
13 disposition of any home mortgage loan after the bonds have
14 been paid or deemed to be paid.
15 (i) To pledge any revenues and receipts to be received
16 from any home mortgage loans to the punctual payment of bonds
17 authorized under this Division, and the interest and
18 redemption premiums, if any, thereon.
19 (j) To mortgage, pledge or grant security interests in
20 any home mortgage loans, notes or other property in favor of
21 the holder or holders of bonds issued therefor.
22 (k) to issue its bonds in such amount as may be
23 necessary (and not limited by the amount of bonds refunded)
24 for the purpose of refunding, in whole or in part at any
25 time, bonds theretofore issued by such municipality under
26 authority of this Division, the proceeds of which refunding
27 bonds may be used, at the discretion of the corporate
28 authorities, for paying bonds at maturity, calling bonds for
29 payment and paying bonds prior to maturity, or for deposit
30 into an escrow or trust fund in advance of maturity of bonds
31 to be held for payment thereof at maturity or earlier.
32 (l) To appoint or designate a trustee or trustees for
33 the benefit of the bondholders and to delegate and assign
34 thereto, insofar as it may lawfully do so, its rights, duties
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1 and responsibilities with respect to carrying out and
2 enforcing the terms and provisions of its residential housing
3 finance plan.
4 (m) To provide for and authorize the use and disposition
5 of any funds remaining in the possession of the municipality
6 (or trustees) following payment and retirement of, or
7 following the making of provision for the payment of, the
8 bonds of a designated series issued pursuant to this
9 Division.
10 (n) To make and execute contracts and other instruments
11 necessary or convenient to the exercise of any of the powers
12 granted herein.
13 (Source: P.A. 84-550.)
14 (65 ILCS 5/11-74.5-5) (from Ch. 24, par. 11-74.5-5)
15 Sec. 11-74.5-5. The exercise of any or all powers granted
16 by this Division shall be authorized and the bonds shall be
17 authorized to be issued under this Division for the purposes
18 set forth in this Act, by an ordinance adopted by the
19 corporate authorities of a municipality which shall take
20 effect immediately upon adoption. Any such ordinance shall
21 set forth a finding and declaration (i) of the public purpose
22 therefor and (ii) that such ordinance is adopted pursuant to
23 this Division, which finding and declaration shall be
24 conclusive evidence of the existence and sufficiency of the
25 public purpose and of the power to carry out and give effect
26 to such public purposes.
27 After the adoption of an ordinance as provided in this
28 Section, the corporate Authorities shall cause to be
29 submitted to the voters of the Municipality the question:
30 Shall the ordinance adopted by the Corporate Authorities
31 providing for the sale of revenue bonds for financing the
32 purchase of homes in (name of municipality) take effect?
33 If a majority of those voting on the question vote
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1 affirmatively, the ordinance takes effect and the bonds shall
2 be sold as provided in the ordinance. If a majority of those
3 voting on the question vote negatively, the ordinance shall
4 not take effect.
5 The bonds shall bear interest at such rate or rates
6 (subject only to the limitations set forth in paragraph (a)
7 of Section 11-74.5-4 and without regard to any other law
8 pertaining to interest rate limitations), may be payable at
9 such time or times, may be in one or more series, may bear
10 such date or dates, may mature at such time or times not
11 exceeding 40 years from their respective dates, may be
12 payable in such medium of payment at such place or places,
13 may carry such registration privileges, may be subject to
14 such terms of redemption at such premiums, may be executed in
15 such manner, may contain such terms, covenants and conditions
16 and may be in such form, either coupon or registered, as the
17 corporate authorities shall provide. The bonds may be sold
18 at public or private sale at such price, in such manner and
19 upon such terms as the corporate authorities may determine.
20 Pending the preparation of definitive bonds and in
21 anticipation thereof, interim notes, in such form and with
22 such provisions as may be authorized by the corporate
23 authorities, may be issued to the purchaser or purchasers of
24 bonds sold pursuant to this Division. The bonds and interim
25 notes shall be deemed to be securities and negotiable
26 instruments within the meaning and for all purposes of the
27 Uniform Commercial Code.
28 (Source: P.A. 81-580.)
29 (65 ILCS 5/11-74.5-4 rep.)
30 Section 10. The Illinois Municipal Code is amended by
31 repealing Section 11-74.5-4.
32 Section 99. Effective date. This Act takes effect upon
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1 becoming law.