State of Illinois
90th General Assembly

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[ Introduced ][ Engrossed ][ House Amendment 001 ]


      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.
HB3081 Enrolled                                LRB9009642KDks
 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;
HB3081 Enrolled             -3-                LRB9009642KDks
 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.
HB3081 Enrolled             -4-                LRB9009642KDks
 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.
HB3081 Enrolled             -5-                LRB9009642KDks
 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
HB3081 Enrolled             -6-                LRB9009642KDks
 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.
HB3081 Enrolled             -7-                LRB9009642KDks
 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
HB3081 Enrolled             -8-                LRB9009642KDks
 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
HB3081 Enrolled             -9-                LRB9009642KDks
 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
HB3081 Enrolled             -10-               LRB9009642KDks
 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
HB3081 Enrolled             -11-               LRB9009642KDks
 1    becoming law.

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