Full Text of HB5238 95th General Assembly
HB5238 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB5238
Introduced 2/14/2008, by Rep. Karen A. Yarbrough SYNOPSIS AS INTRODUCED: |
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310 ILCS 10/8.2 |
from Ch. 67 1/2, par. 8.2 |
310 ILCS 10/14 |
from Ch. 67 1/2, par. 14 |
310 ILCS 10/17 |
from Ch. 67 1/2, par. 17 |
310 ILCS 10/24 |
from Ch. 67 1/2, par. 24 |
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Amends the Housing Authorities Act. Provides that a Housing Authority in any municipality having a population in excess of 1,000,000 shall be authorized to participate as a partner or member of a partnership, limited liability company, joint venture, or other form of a business arrangement with a for-profit developer and shall have all powers deemed necessary and appropriate to engage in the rehabilitation and development or ownership, or both development and ownership, of low-income and mixed-income rental and for-sale housing as a partner or member of a partnership, limited liability company, or joint venture. Effective immediately.
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A BILL FOR
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HB5238 |
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LRB095 17084 DRJ 43137 b |
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| AN ACT concerning housing.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Housing Authorities Act is amended by | 5 |
| changing Sections 8.2, 14, 17, and 24 as follows:
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| (310 ILCS 10/8.2) (from Ch. 67 1/2, par. 8.2)
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| Sec. 8.2. Projects; competitive bidding; arrangement with | 8 |
| for-profit developer. An Authority has power to prepare, carry | 9 |
| out and operate
projects; to provide for the construction, | 10 |
| reconstruction, improvement,
alteration or repair of any | 11 |
| project or any part thereof; to take over by
purchase, lease, | 12 |
| or otherwise any project undertaken by any government;
to act | 13 |
| as agent for the Federal government in connection with the
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| acquisition, construction, operation, or management of a | 15 |
| project or any
part thereof; to arrange with any government | 16 |
| within the area of
operation for the furnishing, planning, | 17 |
| replanning, opening or closing
of streets, roads, roadways, | 18 |
| alleys, parks, or other places of public
facilities or for the | 19 |
| acquisition by any government or any agency,
instrumentality or | 20 |
| subdivision thereof, of property, options or property
rights or | 21 |
| for the furnishing of property or services in connection with
a | 22 |
| project; to function as an agency of the city, village, | 23 |
| incorporated
town or county for which it is constituted an |
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LRB095 17084 DRJ 43137 b |
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| Authority and to act as an
agent (when so designated) for any | 2 |
| government, with respect to matters
relating to housing and the | 3 |
| purposes of this Act, including action for
the elimination of | 4 |
| unsafe and unsanitary dwellings, the provision of
rental | 5 |
| assistance, the clearing and redevelopment of blighted or slum
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| areas, the assembly of improved and unimproved land for | 7 |
| development or
redevelopment purposes, the conservation and | 8 |
| rehabilitation of existing
housing, and the provision of | 9 |
| decent, safe and sanitary and affordable
housing | 10 |
| accommodations, and to utilize any and all of its powers to | 11 |
| assist
governments in any manner which will tend to further the | 12 |
| objectives of this
Act; to assist through the exercise of the | 13 |
| powers herein conferred any
individual, association, | 14 |
| corporation or organization which presents a plan
for | 15 |
| developing or redeveloping any property within the area of | 16 |
| operation of
the Authority which will tend to provide decent, | 17 |
| safe and sanitary and
affordable housing, or promote other uses | 18 |
| essential to sound community growth.
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| In counties having a population of less than 1,000,000, any | 20 |
| contract
in which State funds are used for repair, improvement | 21 |
| or rehabilitation
of existing improvements that involves | 22 |
| expenditures that meet the
requirements applicable to either | 23 |
| federal or State programs shall be let by
free and competitive | 24 |
| bidding to the lowest responsible bidder upon bond and
subject | 25 |
| to regulations as may be set by the Department and with the | 26 |
| written
approval of the Department. In the case of an emergency |
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| affecting the
public health or safety declared by a majority | 2 |
| vote of the commissioners of
the Housing Authority, contracts | 3 |
| may be let, to the extent necessary to
resolve an emergency, | 4 |
| without public advertisement or competitive bidding.
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| In addition to the powers conferred by this Act and other | 6 |
| laws concerning housing authorities, a Housing Authority in any | 7 |
| municipality having a population in excess of 1,000,000 shall | 8 |
| be authorized to participate as a partner or member of a | 9 |
| partnership, limited liability company, joint venture, or | 10 |
| other form of a business arrangement with a for-profit | 11 |
| developer and shall have all powers deemed necessary and | 12 |
| appropriate to engage in the rehabilitation and development or | 13 |
| ownership, or both development and ownership, of low-income and | 14 |
| mixed-income rental and for-sale housing as a partner or member | 15 |
| of a partnership, limited liability company, or joint venture. | 16 |
| (Source: P.A. 87-200.)
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| (310 ILCS 10/14) (from Ch. 67 1/2, par. 14)
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| Sec. 14. Approval of projects by Department. Prior to the | 19 |
| acquisition of title to any real property an
Authority shall | 20 |
| submit to the Department
data as to the location and cost of | 21 |
| the property, and prior to the
undertaking of any construction | 22 |
| or other initiation of a project an
Authority shall submit to | 23 |
| the Department the
proposed plans, specifications and | 24 |
| estimates of the costs and a
statement of the proposed methods | 25 |
| of financing and operating the
project. An Authority shall not |
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| finally acquire title to any real
estate nor undertake the | 2 |
| construction or operation of a project without
the approval of | 3 |
| the Department; provided that, if the
Department shall fail | 4 |
| within thirty days
after receipt thereof to state its | 5 |
| disapproval of the proposals or such
modifications thereof as | 6 |
| it may deem desirable, the proposals shall be
deemed to have | 7 |
| been approved as submitted. No change involving an
expenditure | 8 |
| of more than twenty-five hundred dollars ($2500) shall be
made | 9 |
| in any proposal approved by the Department
without submission | 10 |
| to the Department
in the manner prescribed in this Section. The | 11 |
| provisions of this
Section shall not apply with reference to | 12 |
| any project which is or is to
be financed in whole or in part by | 13 |
| the federal government or any agency
or instrumentality thereof | 14 |
| or undertaken pursuant to the additional powers conferred in | 15 |
| Section 8.2 upon housing authorities in any municipality having | 16 |
| a population in excess of 1,000,000 pursuant to this amendatory | 17 |
| Act of the 95th General Assembly .
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| (Source: P.A. 82-783.)
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| (310 ILCS 10/17) (from Ch. 67 1/2, par. 17)
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| Sec. 17. Definitions. The following terms, wherever used or | 21 |
| referred to in this
Act shall have the following respective | 22 |
| meanings, unless in any case a
different meaning clearly | 23 |
| appears from the context:
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| (a) "Authority" or "housing authority" shall mean a | 25 |
| municipal
corporation organized in accordance with the |
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| provisions of this Act for
the purposes, with the powers and | 2 |
| subject to the restrictions herein set
forth.
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| (b) "Area" or "area of operation" shall mean: (1) in the | 4 |
| case of an
authority which is created hereunder for a city, | 5 |
| village, or incorporated
town, the area within the territorial | 6 |
| boundaries of said city, village, or
incorporated town, and so | 7 |
| long as no county housing authority has
jurisdiction therein, | 8 |
| the area within three miles from such territorial
boundaries, | 9 |
| except any part of such area located within the territorial
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| boundaries of any other city, village, or incorporated town; | 11 |
| and (2) in the
case of a county shall include all of the county | 12 |
| except the area of any
city, village or incorporated town | 13 |
| located therein in which there is an
Authority. When an | 14 |
| authority is created for a county subsequent to the
creation of | 15 |
| an authority for a city, village or incorporated town within
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| the same county, the area of operation of the authority for | 17 |
| such city,
village or incorporated town shall thereafter be | 18 |
| limited to the territory
of such city, village or incorporated | 19 |
| town, but the authority for such
city, village or incorporated | 20 |
| town may continue to operate any project
developed in whole or | 21 |
| in part in an area previously a part of its area of
operation, | 22 |
| or may contract with the county housing authority with respect
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| to the sale, lease, development or administration of such | 24 |
| project. When an
authority is created for a city, village or | 25 |
| incorporated town subsequent to
the creation of a county | 26 |
| housing authority which previously included such
city, village |
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| or incorporated town within its area of operation, such
county | 2 |
| housing authority shall have no power to create any additional
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| project within the city, village or incorporated town, but any | 4 |
| existing
project in the city, village or incorporated town | 5 |
| currently owned and
operated by the county housing authority | 6 |
| shall remain in the ownership,
operation, custody and control | 7 |
| of the county housing authority.
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| (c) "Presiding officer" shall mean the presiding officer of | 9 |
| the
board of a county, or the mayor or president of a city, | 10 |
| village or
incorporated town, as the case may be, for which an | 11 |
| Authority is created
hereunder.
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| (d) "Commissioner" shall mean one of the members of an | 13 |
| Authority
appointed in accordance with the provisions of this | 14 |
| Act.
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| (e) "Government" shall include the State and Federal | 16 |
| governments and
the governments of any subdivisions, agency or | 17 |
| instrumentality,
corporate or otherwise, of either of them.
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| (f) "Department" shall mean the Department of Commerce and
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| Economic Opportunity.
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| (g) "Project" shall include all lands, buildings, and | 21 |
| improvements,
acquired, owned, leased, managed or operated by a | 22 |
| housing authority, and
all buildings and improvements | 23 |
| constructed, reconstructed or repaired by
a housing authority, | 24 |
| designed to provide housing accommodations and
facilities | 25 |
| appurtenant thereto (including community facilities and
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| stores) which are planned as a unit, whether or not acquired or
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| constructed at one time even though all or a portion of the | 2 |
| buildings
are not contiguous or adjacent to one another; and | 3 |
| the planning of
buildings and improvements, the acquisition of | 4 |
| property, the demolition
of existing structures, the clearing | 5 |
| of land, the construction,
reconstruction, and repair of | 6 |
| buildings or improvements and all other
work in connection | 7 |
| therewith. As provided in Sections 8.14 to 8.18,
inclusive, | 8 |
| "project" also means, for Housing Authorities for
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| municipalities of less than 500,000 population and for | 10 |
| counties, the
conservation of urban areas in accordance with an | 11 |
| approved conservation
plan. "Project" shall also include (1) | 12 |
| acquisition of (i) a slum or
blighted area or a deteriorated or | 13 |
| deteriorating area which is
predominantly residential in | 14 |
| character, or (ii) any other deteriorated
or deteriorating area | 15 |
| which is to be developed or redeveloped for
predominantly | 16 |
| residential uses, or (iii) platted urban or suburban land
which | 17 |
| is predominantly open and which because of obsolete platting,
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| diversity of ownership, deterioration of structures or of site
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| improvements, or otherwise substantially impairs or arrests | 20 |
| the sound
growth of the community and which is to be developed | 21 |
| for predominantly
residential uses, or (iv) open unplatted | 22 |
| urban or suburban land
necessary for sound community growth | 23 |
| which is to be developed for
predominantly residential uses, or | 24 |
| (v) any other area where parcels of
land remain undeveloped | 25 |
| because of improper platting, delinquent taxes
or special | 26 |
| assessments, scattered or uncertain ownerships, clouds on
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| title, artificial values due to excessive utility costs, or any | 2 |
| other
impediments to the use of such area for predominantly | 3 |
| residential uses;
(2) installation, construction, or | 4 |
| reconstruction of streets, utilities,
and other site | 5 |
| improvements essential to the preparation of sites for
uses in | 6 |
| accordance with the development or redevelopment plan; and (3)
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| making the land available for development or redevelopment by | 8 |
| private
enterprise or public agencies (including sale, initial | 9 |
| leasing, or
retention by the local public agency itself). If in | 10 |
| any city, village
or incorporated town there exists a land | 11 |
| clearance commission created
under the "Blighted Areas | 12 |
| Redevelopment Act of 1947" having the same
area of operation as | 13 |
| a housing authority created in and for any such
municipality | 14 |
| such housing authority shall have no power to acquire land
of | 15 |
| the character described in subparagraph (iii), (iv) or (v) of
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| paragraph 1 of the definition of "project" for the purpose of
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| development or redevelopment by private enterprise.
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| (h) "Community facilities" shall include lands, buildings, | 19 |
| and
equipment for recreation or social assembly, for education, | 20 |
| health or
welfare activities and other necessary utilities | 21 |
| primarily for use and
benefit of the occupants of housing | 22 |
| accommodations to be constructed,
reconstructed, repaired or | 23 |
| operated hereunder.
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| (i) "Real property" shall include lands, lands under water,
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| structures, and any and all easements, franchises and | 26 |
| incorporeal
hereditaments and estates, and rights, legal and |
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| equitable, including
terms for years and liens by way of | 2 |
| judgment, mortgage or otherwise.
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| (j) The term "governing body" shall include the city | 4 |
| council of any
city, the president and board of trustees of any | 5 |
| village or incorporated
town, the council of any city or | 6 |
| village, and the county board of any
county.
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| (k) The phrase "individual, association, corporation or
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| organization" shall include any individual, private | 9 |
| corporation, limited or general partnership, limited liability | 10 |
| company,
insurance company, housing corporation, neighborhood | 11 |
| redevelopment
corporation, non-profit corporation, | 12 |
| incorporated or unincorporated
group or association, | 13 |
| educational institution, hospital, or charitable
organization, | 14 |
| and any mutual ownership or cooperative organization.
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| (l) "Conservation area", for the purpose of the exercise of | 16 |
| the
powers granted in Sections 8.14 to 8.18, inclusive, for | 17 |
| housing
authorities for municipalities of less than 500,000 | 18 |
| population and for
counties, means an area of not less than 2 | 19 |
| acres in which the structures
in 50% or more of the area are | 20 |
| residential having an average age of 35
years or more. Such an | 21 |
| area is not yet a slum or blighted area as
defined in the | 22 |
| Blighted Areas Redevelopment Act of 1947, but such an
area by | 23 |
| reason of dilapidation, obsolescence, deterioration or illegal
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| use of individual structures, overcrowding of structures and | 25 |
| community
facilities, conversion of residential units into | 26 |
| non-residential use,
deleterious land use or layout, decline of |
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| physical maintenance, lack of
community planning, or any | 2 |
| combination of these factors may become a
slum and blighted | 3 |
| area.
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| (m) "Conservation plan" means the comprehensive program | 5 |
| for the
physical development and replanning of a "Conservation | 6 |
| Area" as defined
in paragraph (l) embodying the steps required | 7 |
| to prevent such
Conservation Area from becoming a slum and | 8 |
| blighted area.
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| (n) "Fair use value" means the fair cash market value of | 10 |
| real
property when employed for the use contemplated by a | 11 |
| "Conservation Plan"
in municipalities of less than 500,000 | 12 |
| population and in counties.
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| (o) "Community facilities" means, in relation to a | 14 |
| "Conservation
Plan", those physical plants which implement, | 15 |
| support and facilitate the
activities, services and interests | 16 |
| of education, recreation, shopping,
health, welfare, religion | 17 |
| and general culture.
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| (p) "Loan agreement" means any agreement pursuant to which | 19 |
| an Authority
agrees to loan the proceeds of its revenue bonds | 20 |
| issued with respect to a
multifamily rental housing project or | 21 |
| other funds of the Authority to any
person upon terms providing | 22 |
| for
loan repayment installments at least sufficient to pay when | 23 |
| due all principal
of, premium, if any, and interest on the | 24 |
| revenue bonds of the Authority issued
with respect to the | 25 |
| multifamily rental housing project, and providing for
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| maintenance, insurance, and
other matters as may be deemed |
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| desirable by the Authority.
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| (q) "Multifamily rental housing" means any rental project | 3 |
| designed for
mixed-income or low-income occupancy.
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| (Source: P.A. 94-793, eff. 5-19-06.)
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| (310 ILCS 10/24) (from Ch. 67 1/2, par. 24)
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| Sec. 24. Management and operation of housing projects. It | 7 |
| is hereby declared to be the policy of this State that each | 8 |
| housing
authority shall manage and operate its housing projects | 9 |
| in an efficient
manner so as to enable it to fix the rentals | 10 |
| for dwellings at the lowest
possible rates consistent with its | 11 |
| providing decent, safe and sanitary
and affordable dwellings, | 12 |
| and that no Housing Authority shall construct
or operate any | 13 |
| project for profit, or as a source of revenue to a city,
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| village, incorporated town or county. To this end an Authority | 15 |
| shall fix
the rentals for dwellings in its projects at no | 16 |
| higher rates than it shall
find to be necessary in order to | 17 |
| produce revenues which (together with all
other available | 18 |
| moneys, revenues, income and receipts of the Authority from
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| whatever sources derived) will be sufficient (a) to pay, as the | 20 |
| same
becomes due, the principal and interest on the bonds of | 21 |
| the Authority; (b)
to meet and provide for the cost of | 22 |
| maintaining and operating the projects
(including the cost of | 23 |
| any insurance on the projects or bonds issued
therefor) and the | 24 |
| administrative expenses of the Authority; (c) to create
(during | 25 |
| not less than the ten years immediately succeeding its issuance |
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| of
any bonds) a reserve sufficient to meet the large principal | 2 |
| and interest
payments which will be due on bonds in any 2 | 3 |
| consecutive years
thereafter, and to maintain a reserve; and | 4 |
| (d) to create a reasonable
reserve solely from any | 5 |
| contributions or grants to the Authority from the
federal | 6 |
| government, the State, or any political subdivision of the | 7 |
| State
for the purpose of meeting the cost of maintaining and | 8 |
| operating the
project and of paying the principal and interest | 9 |
| on its bonds.
The management of low-rent public housing | 10 |
| projects financed and developed
under the U.S. Housing Act of | 11 |
| 1937, as now or hereafter amended, shall be
in accordance with | 12 |
| the provisions of that Act. The provisions of this Section 24 | 13 |
| shall not apply to any project undertaken pursuant to the | 14 |
| additional powers conferred in Section 8.2 upon housing | 15 |
| authorities in any municipality having a population in excess | 16 |
| of 1,000,000 pursuant to this amendatory Act of the 95th | 17 |
| General Assembly.
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| (Source: P.A. 87-200.)
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| Section 99. Effective date. This Act takes effect upon | 20 |
| becoming law.
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