Illinois General Assembly - Full Text of HB0442
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Full Text of HB0442  97th General Assembly



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1    AN ACT concerning State government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Finance Authority Act is amended by
5changing Section 840-5 as follows:
6    (20 ILCS 3501/840-5)
7    Sec. 840-5. The Authority shall have the following powers:
8    (a) To fix and revise from time to time and charge and
9collect rates, rents, fees and charges for the use of and for
10the services furnished or to be furnished by a project or other
11health facilities owned, financed or refinanced by the
12Authority or any portion thereof and to contract with any
13person, partnership, association or corporation or other body,
14public or private, in respect thereto; to coordinate its
15policies and procedures and cooperate with recognized health
16facility rate setting mechanisms which may now or hereafter be
18    (b) To establish rules and regulations for the use of a
19project or other health facilities owned, financed or
20refinanced by the Authority or any portion thereof and to
21designate a participating health institution as its agent to
22establish rules and regulations for the use of a project or
23other health facilities owned by the Authority undertaken for



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1that participating health institution.
2    (c) To establish or contract with others to carry out on
3its behalf a health facility project cost estimating service
4and to make this service available on all projects to provide
5expert cost estimates and guidance to the participating health
6institution and to the Authority. In order to implement this
7service and, through it, to contribute to cost containment, the
8Authority shall have the power to require such reasonable
9reports and documents from health facility projects as may be
10required for this service and for the development of cost
11reports and guidelines. The Authority may appoint a Technical
12Committee on Health Facility Project Costs and Cost
14    (d) To make mortgage or other secured or unsecured loans to
15or for the benefit of any participating health institution for
16the cost of a project in accordance with an agreement between
17the Authority and the participating health institution;
18provided that no such loan shall exceed the total cost of the
19project as determined by the participating health institution
20and approved by the Authority; provided further that such loans
21may be made to any entity affiliated with a participating
22health institution if the proceeds of such loan are made
23available to or applied for the benefit of such participating
24health institution.
25    (e) To make mortgage or other secured or unsecured loans to
26or for the benefit of a participating health institution in



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1accordance with an agreement between the Authority and the
2participating health institution to refund outstanding
3obligations, loans, indebtedness or advances issued, made,
4given or incurred by such participating health institution for
5the cost of a project; including the function to issue bonds
6and make loans to or for the benefit of a participating health
7institution to refinance indebtedness incurred by such
8participating health institution in projects undertaken and
9completed or for other health facilities acquired prior to or
10after the enactment of this Act when the Authority finds that
11such refinancing is in the public interest, and either
12alleviates a financial hardship of such participating health
13institution, or is in connection with other financing by the
14Authority for such participating health institution or may be
15expected to result in a lessened cost of patient care and a
16saving to third parties, including government, and to others
17who must pay for care, or any combination thereof; provided
18further that such loans may be made to any entity affiliated
19with a participating health institution if the proceeds of such
20loan are made available to or applied for the benefit of such
21participating health institution.
22    (f) To mortgage all or any portion of a project or other
23health facilities and the property on which any such project or
24other health facilities are located whether owned or thereafter
25acquired, and to assign or pledge mortgages, deeds of trust,
26indentures of mortgage or trust or similar instruments, notes,



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1and other securities of participating health institutions to
2which or for the benefit of which the Authority has made loans
3or of entities affiliated with such institutions and the
4revenues therefrom, including payments or income from any
5thereof owned or held by the Authority, for the benefit of the
6holders of bonds issued to finance such project or health
7facilities or issued to refund or refinance outstanding
8obligations, loans, indebtedness or advances of participating
9health institutions as permitted by this Act.
10    (g) To lease to a participating health institution the
11project being financed or refinanced or other health facilities
12conveyed to the Authority in connection with such financing or
13refinancing, upon such terms and conditions as the Authority
14shall deem proper, and to charge and collect rents therefor and
15to terminate any such lease upon the failure of the lessee to
16comply with any of the obligations thereof; and to include in
17any such lease, if desired, provisions that the lessee thereof
18shall have options to renew the lease for such period or
19periods and at such rent as shall be determined by the
20Authority or to purchase any or all of the health facilities or
21that upon payment of all of the indebtedness incurred by the
22Authority for the financing of such project or health
23facilities or for refunding outstanding obligations, loans,
24indebtedness or advances of a participating health
25institution, then the Authority may convey any or all of the
26project or such other health facilities to the lessee or



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1lessees thereof with or without consideration.
2    (h) To make studies of needed health facilities that could
3not sustain a loan were it made under this Act and to recommend
4remedial action to the General Assembly; to do the same with
5regard to any laws or regulations that prevent health
6facilities from benefiting from this Act.
7    (i) To assist the Department of Commerce and Economic
8Opportunity to establish and implement a program to assist
9health facilities to identify and arrange financing for energy
10conservation projects in buildings and facilities owned or
11leased by health facilities.
12    (j) To assist the Department of Human Services in
13establishing a low interest loan program to help child care
14centers and family day care homes serving children of low
15income families under Section 22.4 of the Children and Family
16Services Act. The Authority, on or after the effective date of
17this amendatory Act of the 97th General Assembly, is authorized
18to convert existing agreements for financial aid in accordance
19with Section 840-5(j) to permanent capital to leverage
20additional private capital and establish a revolving loan fund
21for nonprofit corporations providing human services under
22contract to the State.
23    (k) To assist the Department of Public Health and nursing
24homes in undertaking nursing home conversion projects in
25accordance with the Older Adult Services Act.
26(Source: P.A. 93-205, eff. 1-1-04; 93-1031, eff. 8-27-04.)



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1    Section 99. Effective date. This Act takes effect upon
2becoming law.