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Public Act 92-0481
HB2432 Enrolled LRB9208015ARmb
AN ACT in relation to housing.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Housing Authorities Act is amended by
adding Section 8.4a and changing Sections 11, 17, and 21 as
follows:
(310 ILCS 10/8.4a new)
Sec. 8.4a. Additional powers. In addition to powers
conferred by this Act and other laws concerning housing
authorities, generally, an Authority for a municipality
having a population in excess of 1,000,000 may do any of the
following:
(a) Issue revenue bonds for the purpose of financing the
construction, equipping, or rehabilitation or refinancing of
multifamily rental housing and for the provision of capital
improvements in connection with and determined necessary to
the multifamily rental housing located within the
municipality having a population in excess of 1,000,000.
(b) Make or undertake commitments to make loans to
finance the construction, equipping, or rehabilitation or
refinancing of multifamily rental housing located within the
municipality having a population in excess of 1,000,000.
(c) Purchase or undertake, directly or indirectly
through lending institutions, commitments to purchase,
construction loans, and mortgage loans originated in
accordance with a financing agreement with the Authority to
finance the construction, equipping, or rehabilitation or
refinancing of multifamily rental housing located within the
municipality having a population in excess of 1,000,000, or
make loans to lending institutions under terms and conditions
which, in addition to other provisions determined by the
Authority, shall require the lending institutions to use the
net proceeds of the loans for the making, directly or
indirectly, of construction loans or mortgage loans to
finance the construction, equipping, rehabilitation or
refinancing of multifamily rental housing located within the
municipality having a population in excess of 1,000,000.
(310 ILCS 10/11) (from Ch. 67 1/2, par. 11)
Sec. 11. An Authority shall have power to issue bonds
from time to time in its discretion to finance in whole or in
part the cost of acquisition, purchase, construction,
reconstruction, improvement, alteration, extension or repair
of any project or undertaking hereunder. An Authority shall
also have power to issue refunding bonds for the purpose of
paying or retiring bonds previously issued by it. An
Authority may issue such types of bonds as it may determine
by resolution, including bonds on which the principal and
interest are payable; (a) exclusively from the income and
revenues of the housing project financed with the proceeds of
such bonds (including, without limitation, income and
revenues derived from a loan agreement with respect to a
project located within the municipality having a population
in excess of 1,000,000), or with such proceeds together with
a grant from the Federal Government or any political
subdivision of the State in aid of such project; (b)
exclusively from the income and revenues of certain
designated housing projects of such Authority whether or not
they were financed in whole or in part with the proceeds of
such bonds; or (c) from its revenues generally. Any of such
bonds may be additionally secured by a pledge of any revenues
of any housing project, projects or other property of the
Authority.
In addition to powers conferred by this Act and other
laws concerning housing authorities in general, an Authority
for a municipality having a population in excess of 1,000,000
may grant a specific pledge or assignment of, and lien on or
security interest in, the income and revenues of the
Authority derived from the loan agreement with respect to the
project or projects, as well as in any reserves, funds, or
accounts established in the resolution authorizing the bonds
or the indenture or other instrument under which the bonds
are issued. As evidence of such pledge, assignment, lien,
and security interest, the Authority may execute and deliver
a mortgage, trust agreement, indenture, security agreement,
or an assignment thereof. The provisions of this amendatory
Act of the 92nd General Assembly create additional powers for
housing authorities having a population in excess of
1,000,000; these provisions do not limit the powers conferred
on housing authorities in general.
Neither the commissioners of an Authority nor any person
executing the bonds shall be liable personally on the bonds
by reason of the issuance thereof. The bonds and other
obligations of an Authority (and such bonds and obligations
shall so state on their face) shall not be a debt of any
city, village, incorporated town, county, the State or any
political subdivision thereof and neither the city, village,
incorporated town or the county, nor the State or any
political subdivision thereof shall be liable thereon, nor in
any event shall such bonds or obligations be payable out of
any funds or properties other than those of said Authority.
The bonds shall not constitute an indebtedness within the
meaning of any constitutional or statutory debt limitation or
restriction.
(Source: Laws 1937, p. 679.)
(310 ILCS 10/17) (from Ch. 67 1/2, par. 17)
Sec. 17. The following terms, wherever used or referred
to in this Act shall have the following respective meanings,
unless in any case a different meaning clearly appears from
the context:
(a) "Authority" or "housing authority" shall mean a
municipal corporation organized in accordance with the
provisions of this Act for the purposes, with the powers and
subject to the restrictions herein set forth.
(b) "Area" or "area of operation" shall mean: (1) in the
case of an authority which is created hereunder for a city,
village, or incorporated town, the area within the
territorial boundaries of said city, village, or incorporated
town, and so long as no county housing authority has
jurisdiction therein, the area within three miles from such
territorial boundaries, except any part of such area located
within the territorial boundaries of any other city, village,
or incorporated town; and (2) in the case of a county shall
include all of the county except the area of any city,
village or incorporated town located therein in which there
is an Authority. When an authority is created for a county
subsequent to the creation of an authority for a city,
village or incorporated town within the same county, the area
of operation of the authority for such city, village or
incorporated town shall thereafter be limited to the
territory of such city, village or incorporated town, but the
authority for such city, village or incorporated town may
continue to operate any project developed in whole or in part
in an area previously a part of its area of operation, or may
contract with the county housing authority with respect to
the sale, lease, development or administration of such
project. When an authority is created for a city, village or
incorporated town subsequent to the creation of a county
housing authority which previously included such city,
village or incorporated town within its area of operation,
such county housing authority shall have no power to create
any additional project within the city, village or
incorporated town, but any existing project in the city,
village or incorporated town currently owned and operated by
the county housing authority shall remain in the ownership,
operation, custody and control of the county housing
authority.
(c) "Presiding officer" shall mean the presiding officer
of the board of a county, or the mayor or president of a
city, village or incorporated town, as the case may be, for
which an Authority is created hereunder.
(d) "Commissioner" shall mean one of the members of an
Authority appointed in accordance with the provisions of this
Act.
(e) "Government" shall include the State and Federal
governments and the governments of any subdivisions, agency
or instrumentality, corporate or otherwise, of either of
them.
(f) "Department" shall mean the Department of Commerce
and Community Affairs.
(g) "Project" shall include all lands, buildings, and
improvements, acquired, owned, leased, managed or operated by
a housing authority, and all buildings and improvements
constructed, reconstructed or repaired by a housing
authority, designed to provide housing accommodations and
facilities appurtenant thereto (including community
facilities and stores) which are planned as a unit, whether
or not acquired or constructed at one time even though all or
a portion of the buildings are not contiguous or adjacent to
one another; and the planning of buildings and improvements,
the acquisition of property, the demolition of existing
structures, the clearing of land, the construction,
reconstruction, and repair of buildings or improvements and
all other work in connection therewith. As provided in
Sections 8.14 to 8.18, inclusive, "project" also means, for
Housing Authorities for municipalities of less than 500,000
population and for counties, the conservation of urban areas
in accordance with an approved conservation plan. "Project"
shall also include (1) acquisition of (i) a slum or blighted
area or a deteriorated or deteriorating area which is
predominantly residential in character, or (ii) any other
deteriorated or deteriorating area which is to be developed
or redeveloped for predominantly residential uses, or (iii)
platted urban or suburban land which is predominantly open
and which because of obsolete platting, diversity of
ownership, deterioration of structures or of site
improvements, or otherwise substantially impairs or arrests
the sound growth of the community and which is to be
developed for predominantly residential uses, or (iv) open
unplatted urban or suburban land necessary for sound
community growth which is to be developed for predominantly
residential uses, or (v) any other area where parcels of land
remain undeveloped because of improper platting, delinquent
taxes or special assessments, scattered or uncertain
ownerships, clouds on title, artificial values due to
excessive utility costs, or any other impediments to the use
of such area for predominantly residential uses; (2)
installation, construction, or reconstruction of streets,
utilities, and other site improvements essential to the
preparation of sites for uses in accordance with the
development or redevelopment plan; and (3) making the land
available for development or redevelopment by private
enterprise or public agencies (including sale, initial
leasing, or retention by the local public agency itself). If
in any city, village or incorporated town there exists a land
clearance commission created under the "Blighted Areas
Redevelopment Act of 1947" having the same area of operation
as a housing authority created in and for any such
municipality such housing authority shall have no power to
acquire land of the character described in subparagraph
(iii), (iv) or (v) of paragraph 1 of the definition of
"project" for the purpose of development or redevelopment by
private enterprise.
(h) "Community facilities" shall include lands,
buildings, and equipment for recreation or social assembly,
for education, health or welfare activities and other
necessary utilities primarily for use and benefit of the
occupants of housing accommodations to be constructed,
reconstructed, repaired or operated hereunder.
(i) "Real property" shall include lands, lands under
water, structures, and any and all easements, franchises and
incorporeal hereditaments and estates, and rights, legal and
equitable, including terms for years and liens by way of
judgment, mortgage or otherwise.
(j) The term "governing body" shall include the city
council of any city, the president and board of trustees of
any village or incorporated town, the council of any city or
village, and the county board of any county.
(k) The phrase "individual, association, corporation or
organization" shall include any individual, private
corporation, insurance company, housing corporation,
neighborhood redevelopment corporation, non-profit
corporation, incorporated or unincorporated group or
association, educational institution, hospital, or charitable
organization, and any mutual ownership or cooperative
organization.
(l) "Conservation area", for the purpose of the exercise
of the powers granted in Sections 8.14 to 8.18, inclusive,
for housing authorities for municipalities of less than
500,000 population and for counties, means an area of not
less than 2 acres in which the structures in 50% or more of
the area are residential having an average age of 35 years or
more. Such an area is not yet a slum or blighted area as
defined in the Blighted Areas Redevelopment Act of 1947, but
such an area by reason of dilapidation, obsolescence,
deterioration or illegal use of individual structures,
overcrowding of structures and community facilities,
conversion of residential units into non-residential use,
deleterious land use or layout, decline of physical
maintenance, lack of community planning, or any combination
of these factors may become a slum and blighted area.
(m) "Conservation plan" means the comprehensive program
for the physical development and replanning of a
"Conservation Area" as defined in paragraph (l) embodying the
steps required to prevent such Conservation Area from
becoming a slum and blighted area.
(n) "Fair use value" means the fair cash market value of
real property when employed for the use contemplated by a
"Conservation Plan" in municipalities of less than 500,000
population and in counties.
(o) "Community facilities" means, in relation to a
"Conservation Plan", those physical plants which implement,
support and facilitate the activities, services and interests
of education, recreation, shopping, health, welfare, religion
and general culture.
(p) "Loan agreement" means any agreement pursuant to
which an Authority agrees to loan the proceeds of its revenue
bonds issued with respect to a multifamily rental housing
project or other funds of the Authority to any person upon
terms providing for loan repayment installments at least
sufficient to pay when due all principal of, premium, if any,
and interest on the revenue bonds of the Authority issued
with respect to the multifamily rental housing project, and
providing for maintenance, insurance, and other matters as
may be deemed desirable by the Authority.
(q) "Multifamily rental housing" means any rental
project designed for mixed-income or low-income occupancy.
(Source: P.A. 87-200.)
(310 ILCS 10/21) (from Ch. 67 1/2, par. 21)
Sec. 21. In connection with the issuance of bonds or the
incurring of obligations under leases and in order to secure
the payment of such bonds or obligations, an Authority, in
addition to its other powers, shall have power:
(a) To pledge all or any part of its gross or net rents,
fees or revenues to which its right then exists or may
thereafter come into existence.
(b) To covenant against pledging all or any part of its
rents, fees and revenues, or against permitting or allowing
any lien on such revenues or property; to covenant with
respect to limitations on its right to sell, lease or
otherwise dispose of any housing project or any part thereof;
and to covenant as to what other, or additional debts or
obligations may be incurred by it.
(c) To covenant as to the bonds to be issued and as to
the issuance of such bonds in escrow or otherwise, and as to
the use and disposition of the proceeds thereof: to provide
for the replacement of lost, destroyed or mutilated bonds; to
covenant against extending the time for the payment of its
bonds or interest thereon; and to redeem the bonds, and to
covenant for their redemption and to provide the terms and
conditions thereof.
(d) To covenant (subject to the limitations contained in
this Act) as to the rents and fees to be charged in the
operation of a housing project or projects, the amount to be
raised each year or other period of time by rents, fees and
other revenues, and as to the use and disposition to be made
thereof; to create or to authorize the creation of special
funds for moneys held for construction or operating costs,
debt service, reserves, or other purposes, and to covenant as
to the use and disposition of the moneys held in such funds.
(e) To prescribe the procedure, if any, by which the
terms of any contract with bondholders may be amended or
abrogated, the amount of bonds the holders of which must
consent thereto and the manner in which such consent may be
given.
(f) To covenant as to the use of any or all of its real
or personal property; and to covenant as to the maintenance
of its real and personal property, the replacement thereof,
the insurance to be carried thereon and the use and
disposition of insurance moneys.
(g) To covenant as to the rights, liabilities, powers
and duties arising upon the breach by it of any covenant,
condition, or obligation; and to covenant and prescribe as to
events of default and terms and conditions upon which any or
all of its bonds or obligations shall become or may be
declared due before maturity, and as to the terms and
conditions upon which such declaration and its consequences
may be waived.
(h) To vest in a trustee or trustees or the holders of
bonds or any specified proportion of them the right to
enforce the payment of the bonds or any covenants securing or
relating to the bonds; to vest in a trustee or trustees the
right, in the event of a default by the Authority, to take
possession of any housing project or part thereof, and (so
long as the Authority shall continue in default) to retain
such possession and use, operate and manage the project, and
to collect the rents and revenues arising therefrom and to
dispose of such moneys in accordance with the agreement of
the Authority with the trustee; to provide for the powers and
duties of a trustee or trustees and to limit the liabilities
thereof; and to provide the terms and conditions upon which
the trustee or trustees or the holders of bonds or any
proportion of them may enforce any covenant or rights
securing or relating to the bonds.
(i) In the case of an Authority for a municipality
having a population in excess of 1,000,000, to enter into
loan agreements, regulatory agreements, and all other
instruments or documentation with private borrowers of the
proceeds of the Authority's multifamily housing revenue bonds
and to accept guaranties from persons of its loans or the
resultant evidences of obligations to the Authority. The
provisions of this amendatory Act of the 92nd General
Assembly create additional powers for housing authorities
having a population in excess of 1,000,000; these provisions
do not limit the powers conferred on housing authorities in
general.
(j) To exercise all or any part or combination of the
powers herein granted; to make covenants other than and in
addition to the covenants herein expressly authorized, of
like or different character; to make such covenants and to do
any and all such acts and things as may be necessary or
convenient or desirable in order to secure its bonds, or, in
the absolute discretion of the Authority, as will tend to
make the bonds more marketable notwithstanding that such
covenants, acts or things may not be enumerated herein.
(Source: P.A. 84-551.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 31, 2001.
Approved August 23, 2001.
Effective August 23, 2001.
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