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92_HB2432enr HB2432 Enrolled LRB9208015ARmb 1 AN ACT in relation to housing. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Housing Authorities Act is amended by 5 adding Section 8.4a and changing Sections 11, 17, and 21 as 6 follows: 7 (310 ILCS 10/8.4a new) 8 Sec. 8.4a. Additional powers. In addition to powers 9 conferred by this Act and other laws concerning housing 10 authorities, generally, an Authority for a municipality 11 having a population in excess of 1,000,000 may do any of the 12 following: 13 (a) Issue revenue bonds for the purpose of financing the 14 construction, equipping, or rehabilitation or refinancing of 15 multifamily rental housing and for the provision of capital 16 improvements in connection with and determined necessary to 17 the multifamily rental housing located within the 18 municipality having a population in excess of 1,000,000. 19 (b) Make or undertake commitments to make loans to 20 finance the construction, equipping, or rehabilitation or 21 refinancing of multifamily rental housing located within the 22 municipality having a population in excess of 1,000,000. 23 (c) Purchase or undertake, directly or indirectly 24 through lending institutions, commitments to purchase, 25 construction loans, and mortgage loans originated in 26 accordance with a financing agreement with the Authority to 27 finance the construction, equipping, or rehabilitation or 28 refinancing of multifamily rental housing located within the 29 municipality having a population in excess of 1,000,000, or 30 make loans to lending institutions under terms and conditions 31 which, in addition to other provisions determined by the HB2432 Enrolled -2- LRB9208015ARmb 1 Authority, shall require the lending institutions to use the 2 net proceeds of the loans for the making, directly or 3 indirectly, of construction loans or mortgage loans to 4 finance the construction, equipping, rehabilitation or 5 refinancing of multifamily rental housing located within the 6 municipality having a population in excess of 1,000,000. 7 (310 ILCS 10/11) (from Ch. 67 1/2, par. 11) 8 Sec. 11. An Authority shall have power to issue bonds 9 from time to time in its discretion to finance in whole or in 10 part the cost of acquisition, purchase, construction, 11 reconstruction, improvement, alteration, extension or repair 12 of any project or undertaking hereunder. An Authority shall 13 also have power to issue refunding bonds for the purpose of 14 paying or retiring bonds previously issued by it. An 15 Authority may issue such types of bonds as it may determine 16 by resolution, including bonds on which the principal and 17 interest are payable; (a) exclusively from the income and 18 revenues of the housing project financed with the proceeds of 19 such bonds (including, without limitation, income and 20 revenues derived from a loan agreement with respect to a 21 project located within the municipality having a population 22 in excess of 1,000,000), or with such proceeds together with 23 a grant from the Federal Government or any political 24 subdivision of the State in aid of such project; (b) 25 exclusively from the income and revenues of certain 26 designated housing projects of such Authority whether or not 27 they were financed in whole or in part with the proceeds of 28 such bonds; or (c) from its revenues generally. Any of such 29 bonds may be additionally secured by a pledge of any revenues 30 of any housing project, projects or other property of the 31 Authority. 32 In addition to powers conferred by this Act and other 33 laws concerning housing authorities in general, an Authority HB2432 Enrolled -3- LRB9208015ARmb 1 for a municipality having a population in excess of 1,000,000 2 may grant a specific pledge or assignment of, and lien on or 3 security interest in, the income and revenues of the 4 Authority derived from the loan agreement with respect to the 5 project or projects, as well as in any reserves, funds, or 6 accounts established in the resolution authorizing the bonds 7 or the indenture or other instrument under which the bonds 8 are issued. As evidence of such pledge, assignment, lien, 9 and security interest, the Authority may execute and deliver 10 a mortgage, trust agreement, indenture, security agreement, 11 or an assignment thereof. The provisions of this amendatory 12 Act of the 92nd General Assembly create additional powers for 13 housing authorities having a population in excess of 14 1,000,000; these provisions do not limit the powers conferred 15 on housing authorities in general. 16 Neither the commissioners of an Authority nor any person 17 executing the bonds shall be liable personally on the bonds 18 by reason of the issuance thereof. The bonds and other 19 obligations of an Authority (and such bonds and obligations 20 shall so state on their face) shall not be a debt of any 21 city, village, incorporated town, county, the State or any 22 political subdivision thereof and neither the city, village, 23 incorporated town or the county, nor the State or any 24 political subdivision thereof shall be liable thereon, nor in 25 any event shall such bonds or obligations be payable out of 26 any funds or properties other than those of said Authority. 27 The bonds shall not constitute an indebtedness within the 28 meaning of any constitutional or statutory debt limitation or 29 restriction. 30 (Source: Laws 1937, p. 679.) 31 (310 ILCS 10/17) (from Ch. 67 1/2, par. 17) 32 Sec. 17. The following terms, wherever used or referred 33 to in this Act shall have the following respective meanings, HB2432 Enrolled -4- LRB9208015ARmb 1 unless in any case a different meaning clearly appears from 2 the context: 3 (a) "Authority" or "housing authority" shall mean a 4 municipal corporation organized in accordance with the 5 provisions of this Act for the purposes, with the powers and 6 subject to the restrictions herein set forth. 7 (b) "Area" or "area of operation" shall mean: (1) in the 8 case of an authority which is created hereunder for a city, 9 village, or incorporated town, the area within the 10 territorial boundaries of said city, village, or incorporated 11 town, and so long as no county housing authority has 12 jurisdiction therein, the area within three miles from such 13 territorial boundaries, except any part of such area located 14 within the territorial boundaries of any other city, village, 15 or incorporated town; and (2) in the case of a county shall 16 include all of the county except the area of any city, 17 village or incorporated town located therein in which there 18 is an Authority. When an authority is created for a county 19 subsequent to the creation of an authority for a city, 20 village or incorporated town within the same county, the area 21 of operation of the authority for such city, village or 22 incorporated town shall thereafter be limited to the 23 territory of such city, village or incorporated town, but the 24 authority for such city, village or incorporated town may 25 continue to operate any project developed in whole or in part 26 in an area previously a part of its area of operation, or may 27 contract with the county housing authority with respect to 28 the sale, lease, development or administration of such 29 project. When an authority is created for a city, village or 30 incorporated town subsequent to the creation of a county 31 housing authority which previously included such city, 32 village or incorporated town within its area of operation, 33 such county housing authority shall have no power to create 34 any additional project within the city, village or HB2432 Enrolled -5- LRB9208015ARmb 1 incorporated town, but any existing project in the city, 2 village or incorporated town currently owned and operated by 3 the county housing authority shall remain in the ownership, 4 operation, custody and control of the county housing 5 authority. 6 (c) "Presiding officer" shall mean the presiding officer 7 of the board of a county, or the mayor or president of a 8 city, village or incorporated town, as the case may be, for 9 which an Authority is created hereunder. 10 (d) "Commissioner" shall mean one of the members of an 11 Authority appointed in accordance with the provisions of this 12 Act. 13 (e) "Government" shall include the State and Federal 14 governments and the governments of any subdivisions, agency 15 or instrumentality, corporate or otherwise, of either of 16 them. 17 (f) "Department" shall mean the Department of Commerce 18 and Community Affairs. 19 (g) "Project" shall include all lands, buildings, and 20 improvements, acquired, owned, leased, managed or operated by 21 a housing authority, and all buildings and improvements 22 constructed, reconstructed or repaired by a housing 23 authority, designed to provide housing accommodations and 24 facilities appurtenant thereto (including community 25 facilities and stores) which are planned as a unit, whether 26 or not acquired or constructed at one time even though all or 27 a portion of the buildings are not contiguous or adjacent to 28 one another; and the planning of buildings and improvements, 29 the acquisition of property, the demolition of existing 30 structures, the clearing of land, the construction, 31 reconstruction, and repair of buildings or improvements and 32 all other work in connection therewith. As provided in 33 Sections 8.14 to 8.18, inclusive, "project" also means, for 34 Housing Authorities for municipalities of less than 500,000 HB2432 Enrolled -6- LRB9208015ARmb 1 population and for counties, the conservation of urban areas 2 in accordance with an approved conservation plan. "Project" 3 shall also include (1) acquisition of (i) a slum or blighted 4 area or a deteriorated or deteriorating area which is 5 predominantly residential in character, or (ii) any other 6 deteriorated or deteriorating area which is to be developed 7 or redeveloped for predominantly residential uses, or (iii) 8 platted urban or suburban land which is predominantly open 9 and which because of obsolete platting, diversity of 10 ownership, deterioration of structures or of site 11 improvements, or otherwise substantially impairs or arrests 12 the sound growth of the community and which is to be 13 developed for predominantly residential uses, or (iv) open 14 unplatted urban or suburban land necessary for sound 15 community growth which is to be developed for predominantly 16 residential uses, or (v) any other area where parcels of land 17 remain undeveloped because of improper platting, delinquent 18 taxes or special assessments, scattered or uncertain 19 ownerships, clouds on title, artificial values due to 20 excessive utility costs, or any other impediments to the use 21 of such area for predominantly residential uses; (2) 22 installation, construction, or reconstruction of streets, 23 utilities, and other site improvements essential to the 24 preparation of sites for uses in accordance with the 25 development or redevelopment plan; and (3) making the land 26 available for development or redevelopment by private 27 enterprise or public agencies (including sale, initial 28 leasing, or retention by the local public agency itself). If 29 in any city, village or incorporated town there exists a land 30 clearance commission created under the "Blighted Areas 31 Redevelopment Act of 1947" having the same area of operation 32 as a housing authority created in and for any such 33 municipality such housing authority shall have no power to 34 acquire land of the character described in subparagraph HB2432 Enrolled -7- LRB9208015ARmb 1 (iii), (iv) or (v) of paragraph 1 of the definition of 2 "project" for the purpose of development or redevelopment by 3 private enterprise. 4 (h) "Community facilities" shall include lands, 5 buildings, and equipment for recreation or social assembly, 6 for education, health or welfare activities and other 7 necessary utilities primarily for use and benefit of the 8 occupants of housing accommodations to be constructed, 9 reconstructed, repaired or operated hereunder. 10 (i) "Real property" shall include lands, lands under 11 water, structures, and any and all easements, franchises and 12 incorporeal hereditaments and estates, and rights, legal and 13 equitable, including terms for years and liens by way of 14 judgment, mortgage or otherwise. 15 (j) The term "governing body" shall include the city 16 council of any city, the president and board of trustees of 17 any village or incorporated town, the council of any city or 18 village, and the county board of any county. 19 (k) The phrase "individual, association, corporation or 20 organization" shall include any individual, private 21 corporation, insurance company, housing corporation, 22 neighborhood redevelopment corporation, non-profit 23 corporation, incorporated or unincorporated group or 24 association, educational institution, hospital, or charitable 25 organization, and any mutual ownership or cooperative 26 organization. 27 (l) "Conservation area", for the purpose of the exercise 28 of the powers granted in Sections 8.14 to 8.18, inclusive, 29 for housing authorities for municipalities of less than 30 500,000 population and for counties, means an area of not 31 less than 2 acres in which the structures in 50% or more of 32 the area are residential having an average age of 35 years or 33 more. Such an area is not yet a slum or blighted area as 34 defined in the Blighted Areas Redevelopment Act of 1947, but HB2432 Enrolled -8- LRB9208015ARmb 1 such an area by reason of dilapidation, obsolescence, 2 deterioration or illegal use of individual structures, 3 overcrowding of structures and community facilities, 4 conversion of residential units into non-residential use, 5 deleterious land use or layout, decline of physical 6 maintenance, lack of community planning, or any combination 7 of these factors may become a slum and blighted area. 8 (m) "Conservation plan" means the comprehensive program 9 for the physical development and replanning of a 10 "Conservation Area" as defined in paragraph (l) embodying the 11 steps required to prevent such Conservation Area from 12 becoming a slum and blighted area. 13 (n) "Fair use value" means the fair cash market value of 14 real property when employed for the use contemplated by a 15 "Conservation Plan" in municipalities of less than 500,000 16 population and in counties. 17 (o) "Community facilities" means, in relation to a 18 "Conservation Plan", those physical plants which implement, 19 support and facilitate the activities, services and interests 20 of education, recreation, shopping, health, welfare, religion 21 and general culture. 22 (p) "Loan agreement" means any agreement pursuant to 23 which an Authority agrees to loan the proceeds of its revenue 24 bonds issued with respect to a multifamily rental housing 25 project or other funds of the Authority to any person upon 26 terms providing for loan repayment installments at least 27 sufficient to pay when due all principal of, premium, if any, 28 and interest on the revenue bonds of the Authority issued 29 with respect to the multifamily rental housing project, and 30 providing for maintenance, insurance, and other matters as 31 may be deemed desirable by the Authority. 32 (q) "Multifamily rental housing" means any rental 33 project designed for mixed-income or low-income occupancy. 34 (Source: P.A. 87-200.) HB2432 Enrolled -9- LRB9208015ARmb 1 (310 ILCS 10/21) (from Ch. 67 1/2, par. 21) 2 Sec. 21. In connection with the issuance of bonds or the 3 incurring of obligations under leases and in order to secure 4 the payment of such bonds or obligations, an Authority, in 5 addition to its other powers, shall have power: 6 (a) To pledge all or any part of its gross or net rents, 7 fees or revenues to which its right then exists or may 8 thereafter come into existence. 9 (b) To covenant against pledging all or any part of its 10 rents, fees and revenues, or against permitting or allowing 11 any lien on such revenues or property; to covenant with 12 respect to limitations on its right to sell, lease or 13 otherwise dispose of any housing project or any part thereof; 14 and to covenant as to what other, or additional debts or 15 obligations may be incurred by it. 16 (c) To covenant as to the bonds to be issued and as to 17 the issuance of such bonds in escrow or otherwise, and as to 18 the use and disposition of the proceeds thereof: to provide 19 for the replacement of lost, destroyed or mutilated bonds; to 20 covenant against extending the time for the payment of its 21 bonds or interest thereon; and to redeem the bonds, and to 22 covenant for their redemption and to provide the terms and 23 conditions thereof. 24 (d) To covenant (subject to the limitations contained in 25 this Act) as to the rents and fees to be charged in the 26 operation of a housing project or projects, the amount to be 27 raised each year or other period of time by rents, fees and 28 other revenues, and as to the use and disposition to be made 29 thereof; to create or to authorize the creation of special 30 funds for moneys held for construction or operating costs, 31 debt service, reserves, or other purposes, and to covenant as 32 to the use and disposition of the moneys held in such funds. 33 (e) To prescribe the procedure, if any, by which the 34 terms of any contract with bondholders may be amended or HB2432 Enrolled -10- LRB9208015ARmb 1 abrogated, the amount of bonds the holders of which must 2 consent thereto and the manner in which such consent may be 3 given. 4 (f) To covenant as to the use of any or all of its real 5 or personal property; and to covenant as to the maintenance 6 of its real and personal property, the replacement thereof, 7 the insurance to be carried thereon and the use and 8 disposition of insurance moneys. 9 (g) To covenant as to the rights, liabilities, powers 10 and duties arising upon the breach by it of any covenant, 11 condition, or obligation; and to covenant and prescribe as to 12 events of default and terms and conditions upon which any or 13 all of its bonds or obligations shall become or may be 14 declared due before maturity, and as to the terms and 15 conditions upon which such declaration and its consequences 16 may be waived. 17 (h) To vest in a trustee or trustees or the holders of 18 bonds or any specified proportion of them the right to 19 enforce the payment of the bonds or any covenants securing or 20 relating to the bonds; to vest in a trustee or trustees the 21 right, in the event of a default by the Authority, to take 22 possession of any housing project or part thereof, and (so 23 long as the Authority shall continue in default) to retain 24 such possession and use, operate and manage the project, and 25 to collect the rents and revenues arising therefrom and to 26 dispose of such moneys in accordance with the agreement of 27 the Authority with the trustee; to provide for the powers and 28 duties of a trustee or trustees and to limit the liabilities 29 thereof; and to provide the terms and conditions upon which 30 the trustee or trustees or the holders of bonds or any 31 proportion of them may enforce any covenant or rights 32 securing or relating to the bonds. 33 (i) In the case of an Authority for a municipality 34 having a population in excess of 1,000,000, to enter into HB2432 Enrolled -11- LRB9208015ARmb 1 loan agreements, regulatory agreements, and all other 2 instruments or documentation with private borrowers of the 3 proceeds of the Authority's multifamily housing revenue bonds 4 and to accept guaranties from persons of its loans or the 5 resultant evidences of obligations to the Authority. The 6 provisions of this amendatory Act of the 92nd General 7 Assembly create additional powers for housing authorities 8 having a population in excess of 1,000,000; these provisions 9 do not limit the powers conferred on housing authorities in 10 general. 11 (j) To exercise all or any part or combination of the 12 powers herein granted; to make covenants other than and in 13 addition to the covenants herein expressly authorized, of 14 like or different character; to make such covenants and to do 15 any and all such acts and things as may be necessary or 16 convenient or desirable in order to secure its bonds, or, in 17 the absolute discretion of the Authority, as will tend to 18 make the bonds more marketable notwithstanding that such 19 covenants, acts or things may not be enumerated herein. 20 (Source: P.A. 84-551.) 21 Section 99. Effective date. This Act takes effect upon 22 becoming law.