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|[ Introduced ]||[ Engrossed ]||[ House Amendment 001 ]|
90_HB3081enr 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. LRB9009642KDks 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; HB3081 Enrolled -2- LRB9009642KDks 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
firstmortgage 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 this28 Section, the corporate Authorities shall cause to be29 submitted to the voters of the Municipality the question:30 Shall the ordinance adopted by the Corporate Authorities31 providing for the sale of revenue bonds for financing the32 purchase of homes in (name of municipality) take effect?33 If a majority of those voting on the question voteHB3081 Enrolled -10- LRB9009642KDks 1 affirmatively, the ordinance takes effect and the bonds shall2 be sold as provided in the ordinance. If a majority of those3 voting on the question vote negatively, the ordinance shall4 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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