State of Illinois
92nd General Assembly
Legislation

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92_HB2432

 
                                               LRB9208015ARmb

 1        AN ACT in relation to housing.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Housing  Authorities Act is amended by
 5    adding Section 8.4a and changing Sections 11, 17, and  21  as
 6    follows:

 7        (310 ILCS 10/8.4a new)
 8        Sec. 8.4a.  An Authority may do any of the following:
 9        (a)  Issue revenue bonds for the purpose of financing the
10    acquisition,   construction,  equipping,  rehabilitation,  or
11    refinancing  of  multifamily  rental  housing  and  for   the
12    provision  of  capital  improvements  in  connection with and
13    determined necessary to the multifamily rental housing.
14        (b)  Make or  undertake  commitments  to  make  loans  to
15    finance    the    acquisition,    construction,    equipping,
16    rehabilitation, or refinancing of multifamily rental housing.
17        (c)  Purchase   or   undertake,  directly  or  indirectly
18    through  lending  institutions,  commitments   to   purchase,
19    construction   loans,   and   mortgage  loans  originated  in
20    accordance with a financing agreement with the  Authority  to
21    finance    the    acquisition,    construction,    equipping,
22    rehabilitation, or refinancing of multifamily rental housing,
23    or  make  loans  to  lending  institutions  under  terms  and
24    conditions  which, in addition to other provisions determined
25    by the Authority, shall require the lending  institutions  to
26    use the net proceeds of the loans for the making, directly or
27    indirectly,  of  construction  loans  or  mortgage  loans  to
28    finance    the    acquisition,    construction,    equipping,
29    rehabilitation, or refinancing of multifamily rental housing.

30        (310 ILCS 10/11) (from Ch. 67 1/2, par. 11)
 
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 1        Sec.  11.  An  Authority  shall have power to issue bonds
 2    from time to time in its discretion to finance in whole or in
 3    part  the  cost  of  acquisition,   purchase,   construction,
 4    reconstruction,  improvement, alteration, extension or repair
 5    of any project or undertaking hereunder. An  Authority  shall
 6    also  have  power to issue refunding bonds for the purpose of
 7    paying  or  retiring  bonds  previously  issued  by  it.   An
 8    Authority  may  issue such types of bonds as it may determine
 9    by resolution, including bonds on  which  the  principal  and
10    interest  are  payable;  (a)  exclusively from the income and
11    revenues of the housing project financed with the proceeds of
12    such  bonds  (including,  without  limitation,   income   and
13    revenues  derived  from  a  loan  agreement),  or  with  such
14    proceeds together with a grant from the Federal Government or
15    any  political  subdivision  of  the  State  in  aid  of such
16    project; (b) exclusively from  the  income  and  revenues  of
17    certain designated housing projects of such Authority whether
18    or  not  they  were  financed  in  whole  or in part with the
19    proceeds of such bonds; or (c) from its  revenues  generally.
20    Any  of such bonds may be additionally secured by a pledge of
21    any revenues  of  any  housing  project,  projects  or  other
22    property of the Authority.
23        The  Authority  may grant a specific pledge or assignment
24    of, and lien on or  security  interest  in,  the  income  and
25    revenues  of  the  Authority  derived from the loan agreement
26    with respect to the project or projects, as well  as  in  any
27    reserves,  funds,  or  accounts established in the resolution
28    authorizing the bonds or the indenture  or  other  instrument
29    under  which  the  bonds  are  issued.    As evidence of such
30    pledge,  assignment,  lien,  and   security   interest,   the
31    Authority   may   execute   and  deliver  a  mortgage,  trust
32    agreement, indenture, security agreement,  or  an  assignment
33    thereof.
34        Neither  the commissioners of an Authority nor any person
 
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 1    executing the bonds shall be liable personally on  the  bonds
 2    by  reason  of  the  issuance  thereof.  The  bonds and other
 3    obligations of an Authority (and such bonds  and  obligations
 4    shall  so  state  on  their  face) shall not be a debt of any
 5    city, village, incorporated town, county, the  State  or  any
 6    political  subdivision thereof and neither the city, village,
 7    incorporated town  or  the  county,  nor  the  State  or  any
 8    political subdivision thereof shall be liable thereon, nor in
 9    any  event  shall such bonds or obligations be payable out of
10    any funds or properties other than those of  said  Authority.
11    The  bonds  shall  not  constitute an indebtedness within the
12    meaning of any constitutional or statutory debt limitation or
13    restriction.
14    (Source: Laws 1937, p. 679.)

15        (310 ILCS 10/17) (from Ch. 67 1/2, par. 17)
16        Sec. 17.  The following terms, wherever used or  referred
17    to  in this Act shall have the following respective meanings,
18    unless in any case a different meaning clearly  appears  from
19    the context:
20        (a)  "Authority"  or  "housing  authority"  shall  mean a
21    municipal  corporation  organized  in  accordance  with   the
22    provisions  of this Act for the purposes, with the powers and
23    subject to the restrictions herein set forth.
24        (b)  "Area" or "area of operation" shall mean: (1) in the
25    case of an authority which is created hereunder for  a  city,
26    village,   or   incorporated   town,   the  area  within  the
27    territorial boundaries of said city, village, or incorporated
28    town,  and  so  long  as  no  county  housing  authority  has
29    jurisdiction therein, the area within three miles  from  such
30    territorial  boundaries, except any part of such area located
31    within the territorial boundaries of any other city, village,
32    or incorporated town; and (2) in the case of a  county  shall
33    include  all  of  the  county  except  the  area of any city,
 
                            -4-                LRB9208015ARmb
 1    village or incorporated town located therein in  which  there
 2    is  an  Authority.  When an authority is created for a county
 3    subsequent to the  creation  of  an  authority  for  a  city,
 4    village or incorporated town within the same county, the area
 5    of  operation  of  the  authority  for  such city, village or
 6    incorporated  town  shall  thereafter  be  limited   to   the
 7    territory of such city, village or incorporated town, but the
 8    authority  for  such  city,  village or incorporated town may
 9    continue to operate any project developed in whole or in part
10    in an area previously a part of its area of operation, or may
11    contract with the county housing authority  with  respect  to
12    the  sale,  lease,  development  or  administration  of  such
13    project.  When an authority is created for a city, village or
14    incorporated  town  subsequent  to  the  creation of a county
15    housing  authority  which  previously  included  such   city,
16    village  or  incorporated  town within its area of operation,
17    such county housing authority shall have no power  to  create
18    any   additional   project   within   the  city,  village  or
19    incorporated town, but any  existing  project  in  the  city,
20    village  or incorporated town currently owned and operated by
21    the county housing authority shall remain in  the  ownership,
22    operation,   custody   and  control  of  the  county  housing
23    authority.
24        (c)  "Presiding officer" shall mean the presiding officer
25    of the board of a county, or the  mayor  or  president  of  a
26    city,  village  or incorporated town, as the case may be, for
27    which an Authority is created hereunder.
28        (d)  "Commissioner" shall mean one of the members  of  an
29    Authority appointed in accordance with the provisions of this
30    Act.
31        (e)  "Government"  shall  include  the  State and Federal
32    governments and the governments of any  subdivisions,  agency
33    or  instrumentality,  corporate  or  otherwise,  of either of
34    them.
 
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 1        (f)  "Department" shall mean the Department  of  Commerce
 2    and Community Affairs.
 3        (g)  "Project"  shall  include  all lands, buildings, and
 4    improvements, acquired, owned, leased, managed or operated by
 5    a housing  authority,  and  all  buildings  and  improvements
 6    constructed,   reconstructed   or   repaired   by  a  housing
 7    authority, designed to  provide  housing  accommodations  and
 8    facilities    appurtenant    thereto   (including   community
 9    facilities and stores) which are planned as a  unit,  whether
10    or not acquired or constructed at one time even though all or
11    a  portion of the buildings are not contiguous or adjacent to
12    one another; and the planning of buildings and  improvements,
13    the  acquisition  of  property,  the  demolition  of existing
14    structures,  the  clearing   of   land,   the   construction,
15    reconstruction,  and  repair of buildings or improvements and
16    all other work  in  connection  therewith.   As  provided  in
17    Sections  8.14  to 8.18, inclusive, "project" also means, for
18    Housing Authorities for municipalities of less  than  500,000
19    population  and for counties, the conservation of urban areas
20    in accordance with an approved conservation plan.   "Project"
21    shall  also include (1) acquisition of (i) a slum or blighted
22    area  or  a  deteriorated  or  deteriorating  area  which  is
23    predominantly residential in character,  or  (ii)  any  other
24    deteriorated  or  deteriorating area which is to be developed
25    or redeveloped for predominantly residential uses,  or  (iii)
26    platted  urban  or  suburban land which is predominantly open
27    and  which  because  of  obsolete  platting,   diversity   of
28    ownership,   deterioration   of   structures   or   of   site
29    improvements,  or  otherwise substantially impairs or arrests
30    the sound  growth  of  the  community  and  which  is  to  be
31    developed  for  predominantly  residential uses, or (iv) open
32    unplatted  urban  or  suburban  land  necessary   for   sound
33    community  growth  which is to be developed for predominantly
34    residential uses, or (v) any other area where parcels of land
 
                            -6-                LRB9208015ARmb
 1    remain undeveloped because of improper  platting,  delinquent
 2    taxes   or   special   assessments,  scattered  or  uncertain
 3    ownerships,  clouds  on  title,  artificial  values  due   to
 4    excessive  utility costs, or any other impediments to the use
 5    of  such  area  for  predominantly  residential   uses;   (2)
 6    installation,  construction,  or  reconstruction  of streets,
 7    utilities, and  other  site  improvements  essential  to  the
 8    preparation   of  sites  for  uses  in  accordance  with  the
 9    development or redevelopment plan; and (3)  making  the  land
10    available   for   development  or  redevelopment  by  private
11    enterprise  or  public  agencies  (including  sale,   initial
12    leasing, or retention by the local public agency itself).  If
13    in any city, village or incorporated town there exists a land
14    clearance   commission  created  under  the  "Blighted  Areas
15    Redevelopment Act of 1947" having the same area of  operation
16    as   a   housing  authority  created  in  and  for  any  such
17    municipality such housing authority shall have  no  power  to
18    acquire  land  of  the  character  described  in subparagraph
19    (iii), (iv) or (v)  of  paragraph  1  of  the  definition  of
20    "project"  for the purpose of development or redevelopment by
21    private enterprise.
22        (h)  "Community   facilities"   shall   include    lands,
23    buildings,  and  equipment for recreation or social assembly,
24    for  education,  health  or  welfare  activities  and   other
25    necessary  utilities  primarily  for  use  and benefit of the
26    occupants  of  housing  accommodations  to  be   constructed,
27    reconstructed, repaired or operated hereunder.
28        (i)  "Real  property"  shall  include  lands, lands under
29    water, structures, and any and all easements, franchises  and
30    incorporeal  hereditaments and estates, and rights, legal and
31    equitable, including terms for years  and  liens  by  way  of
32    judgment, mortgage or otherwise.
33        (j)  The  term  "governing  body"  shall include the city
34    council of any city, the president and board of  trustees  of
 
                            -7-                LRB9208015ARmb
 1    any  village or incorporated town, the council of any city or
 2    village, and the county board of any county.
 3        (k)  The phrase "individual, association, corporation  or
 4    organization"   shall   include   any   individual,   private
 5    corporation,    insurance   company,   housing   corporation,
 6    neighborhood    redevelopment     corporation,     non-profit
 7    corporation,   incorporated   or   unincorporated   group  or
 8    association, educational institution, hospital, or charitable
 9    organization,  and  any  mutual  ownership   or   cooperative
10    organization.
11        (l)  "Conservation area", for the purpose of the exercise
12    of  the  powers  granted in Sections 8.14 to 8.18, inclusive,
13    for housing  authorities  for  municipalities  of  less  than
14    500,000  population  and  for  counties, means an area of not
15    less than 2 acres in which the structures in 50% or  more  of
16    the area are residential having an average age of 35 years or
17    more.   Such  an  area  is not yet a slum or blighted area as
18    defined in the Blighted Areas Redevelopment Act of 1947,  but
19    such   an  area  by  reason  of  dilapidation,  obsolescence,
20    deterioration  or  illegal  use  of  individual   structures,
21    overcrowding   of   structures   and   community  facilities,
22    conversion of residential  units  into  non-residential  use,
23    deleterious   land   use   or  layout,  decline  of  physical
24    maintenance, lack of community planning, or  any  combination
25    of these factors may become a slum and blighted area.
26        (m)  "Conservation  plan" means the comprehensive program
27    for  the   physical   development   and   replanning   of   a
28    "Conservation Area" as defined in paragraph (l) embodying the
29    steps   required  to  prevent  such  Conservation  Area  from
30    becoming a slum and blighted area.
31        (n)  "Fair use value" means the fair cash market value of
32    real property when employed for the  use  contemplated  by  a
33    "Conservation  Plan"  in  municipalities of less than 500,000
34    population and in counties.
 
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 1        (o)  "Community  facilities"  means,  in  relation  to  a
 2    "Conservation Plan", those physical plants  which  implement,
 3    support and facilitate the activities, services and interests
 4    of education, recreation, shopping, health, welfare, religion
 5    and general culture.
 6        (p)  "Loan  agreement"  means  any  agreement pursuant to
 7    which an Authority agrees to loan the proceeds of its revenue
 8    bonds issued with respect to a project or other funds of  the
 9    Authority  to  any  person  upon  terms  providing  for  loan
10    repayment  installments  at  least sufficient to pay when due
11    all principal of,  premium,  if  any,  and  interest  on  the
12    revenue  bonds  of  the  Authority issued with respect to the
13    project, and providing for maintenance, insurance, and  other
14    matters as may be deemed desirable by the Authority.
15    (Source: P.A. 87-200.)

16        (310 ILCS 10/21) (from Ch. 67 1/2, par. 21)
17        Sec. 21.  In connection with the issuance of bonds or the
18    incurring  of obligations under leases and in order to secure
19    the payment of such bonds or obligations,  an  Authority,  in
20    addition to its other powers, shall have power:
21        (a)  To pledge all or any part of its gross or net rents,
22    fees  or  revenues  to  which  its  right  then exists or may
23    thereafter come into existence.
24        (b)  To covenant against pledging all or any part of  its
25    rents,  fees  and revenues, or against permitting or allowing
26    any lien on such  revenues  or  property;  to  covenant  with
27    respect  to  limitations  on  its  right  to  sell,  lease or
28    otherwise dispose of any housing project or any part thereof;
29    and to covenant as to what  other,  or  additional  debts  or
30    obligations may be incurred by it.
31        (c)  To  covenant  as to the bonds to be issued and as to
32    the issuance of such bonds in escrow or otherwise, and as  to
33    the  use  and disposition of the proceeds thereof: to provide
 
                            -9-                LRB9208015ARmb
 1    for the replacement of lost, destroyed or mutilated bonds; to
 2    covenant against extending the time for the  payment  of  its
 3    bonds  or  interest  thereon; and to redeem the bonds, and to
 4    covenant for their redemption and to provide  the  terms  and
 5    conditions thereof.
 6        (d)  To covenant (subject to the limitations contained in
 7    this  Act)  as  to  the  rents  and fees to be charged in the
 8    operation of a housing project or projects, the amount to  be
 9    raised  each  year or other period of time by rents, fees and
10    other revenues, and as to the use and disposition to be  made
11    thereof;  to  create  or to authorize the creation of special
12    funds for moneys held for construction  or  operating  costs,
13    debt service, reserves, or other purposes, and to covenant as
14    to the use and disposition of the moneys held in such funds.
15        (e)  To  prescribe  the  procedure,  if any, by which the
16    terms of any contract with  bondholders  may  be  amended  or
17    abrogated,  the  amount  of  bonds  the holders of which must
18    consent thereto and the manner in which such consent  may  be
19    given.
20        (f)  To  covenant as to the use of any or all of its real
21    or personal property; and to covenant as to  the  maintenance
22    of  its  real and personal property, the replacement thereof,
23    the  insurance  to  be  carried  thereon  and  the  use   and
24    disposition of insurance moneys.
25        (g)  To  covenant  as  to the rights, liabilities, powers
26    and duties arising upon the breach by  it  of  any  covenant,
27    condition, or obligation; and to covenant and prescribe as to
28    events  of default and terms and conditions upon which any or
29    all of its bonds  or  obligations  shall  become  or  may  be
30    declared  due  before  maturity,  and  as  to  the  terms and
31    conditions upon which such declaration and  its  consequences
32    may be waived.
33        (h)  To  vest  in a trustee or trustees or the holders of
34    bonds or any  specified  proportion  of  them  the  right  to
 
                            -10-               LRB9208015ARmb
 1    enforce the payment of the bonds or any covenants securing or
 2    relating  to  the bonds; to vest in a trustee or trustees the
 3    right, in the event of a default by the  Authority,  to  take
 4    possession  of  any  housing project or part thereof, and (so
 5    long as the Authority shall continue in  default)  to  retain
 6    such  possession and use, operate and manage the project, and
 7    to collect the rents and revenues arising  therefrom  and  to
 8    dispose  of  such  moneys in accordance with the agreement of
 9    the Authority with the trustee; to provide for the powers and
10    duties of a trustee or trustees and to limit the  liabilities
11    thereof;  and  to provide the terms and conditions upon which
12    the trustee or trustees  or  the  holders  of  bonds  or  any
13    proportion  of  them  may  enforce  any  covenant  or  rights
14    securing or relating to the bonds.
15        (i)  To    enter   into   loan   agreements,   regulatory
16    agreements, and all other instruments or  documentation  with
17    private   borrowers   of  the  proceeds  of  the  Authority's
18    multifamily housing revenue bonds and  to  accept  guaranties
19    from  persons  of  its  loans  or  the resultant evidences of
20    obligations to the Authority.
21        (j)  To exercise all or any part or  combination  of  the
22    powers  herein  granted;  to make covenants other than and in
23    addition to the covenants  herein  expressly  authorized,  of
24    like or different character; to make such covenants and to do
25    any  and  all  such  acts  and  things as may be necessary or
26    convenient or desirable in order to secure its bonds, or,  in
27    the  absolute  discretion  of  the Authority, as will tend to
28    make the bonds  more  marketable  notwithstanding  that  such
29    covenants, acts or things may not be enumerated herein.
30    (Source: P.A. 84-551.)

31        Section  99.  Effective date.  This Act takes effect upon
32    becoming law.

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