State of Illinois
92nd General Assembly
Legislation

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92_HB2432enr

 
HB2432 Enrolled                                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.  Additional  powers.  In  addition  to powers
 9    conferred by this  Act  and  other  laws  concerning  housing
10    authorities,  generally,  an  Authority  for  a  municipality
11    having  a population in excess of 1,000,000 may do any of the
12    following:
13        (a)  Issue revenue bonds for the purpose of financing the
14    construction, equipping, or rehabilitation or refinancing  of
15    multifamily  rental  housing and for the provision of capital
16    improvements in connection with and determined  necessary  to
17    the   multifamily   rental   housing   located   within   the
18    municipality having a population in excess of 1,000,000.
19        (b)  Make  or  undertake  commitments  to  make  loans to
20    finance the construction,  equipping,  or  rehabilitation  or
21    refinancing  of multifamily rental housing located within the
22    municipality having a population in excess of 1,000,000.
23        (c)  Purchase  or  undertake,  directly   or   indirectly
24    through   lending   institutions,  commitments  to  purchase,
25    construction  loans,  and  mortgage   loans   originated   in
26    accordance  with  a financing agreement with the Authority to
27    finance the construction,  equipping,  or  rehabilitation  or
28    refinancing  of multifamily rental housing located within the
29    municipality having a population in excess of  1,000,000,  or
30    make loans to lending institutions under terms and conditions
31    which,  in  addition  to  other  provisions determined by the
 
HB2432 Enrolled            -2-                 LRB9208015ARmb
 1    Authority, shall require the lending institutions to use  the
 2    net  proceeds  of  the  loans  for  the  making,  directly or
 3    indirectly,  of  construction  loans  or  mortgage  loans  to
 4    finance  the  construction,  equipping,   rehabilitation   or
 5    refinancing  of multifamily rental housing located within the
 6    municipality having a population in excess of 1,000,000.

 7        (310 ILCS 10/11) (from Ch. 67 1/2, par. 11)
 8        Sec. 11. An Authority shall have  power  to  issue  bonds
 9    from time to time in its discretion to finance in whole or in
10    part   the   cost  of  acquisition,  purchase,  construction,
11    reconstruction, improvement, alteration, extension or  repair
12    of  any  project or undertaking hereunder. An Authority shall
13    also have power to issue refunding bonds for the  purpose  of
14    paying   or  retiring  bonds  previously  issued  by  it.  An
15    Authority may issue such types of bonds as it  may  determine
16    by  resolution,  including  bonds  on which the principal and
17    interest are payable; (a) exclusively  from  the  income  and
18    revenues of the housing project financed with the proceeds of
19    such   bonds   (including,  without  limitation,  income  and
20    revenues derived from a loan  agreement  with  respect  to  a
21    project  located  within the municipality having a population
22    in excess of 1,000,000), or with such proceeds together  with
23    a   grant  from  the  Federal  Government  or  any  political
24    subdivision  of  the  State  in  aid  of  such  project;  (b)
25    exclusively  from  the  income  and   revenues   of   certain
26    designated  housing projects of such Authority whether or not
27    they were financed in whole or in part with the  proceeds  of
28    such  bonds;  or (c) from its revenues generally. Any of such
29    bonds may be additionally secured by a pledge of any revenues
30    of any housing project, projects or  other  property  of  the
31    Authority.
32        In  addition  to  powers  conferred by this Act and other
33    laws concerning housing authorities in general, an  Authority
 
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 1    for a municipality having a population in excess of 1,000,000
 2    may  grant a specific pledge or assignment of, and lien on or
 3    security  interest  in,  the  income  and  revenues  of   the
 4    Authority derived from the loan agreement with respect to the
 5    project  or  projects,  as well as in any reserves, funds, or
 6    accounts established in the resolution authorizing the  bonds
 7    or  the  indenture  or other instrument under which the bonds
 8    are issued.  As evidence of such  pledge,  assignment,  lien,
 9    and  security interest, the Authority may execute and deliver
10    a mortgage, trust agreement, indenture,  security  agreement,
11    or  an  assignment thereof. The provisions of this amendatory
12    Act of the 92nd General Assembly create additional powers for
13    housing  authorities  having  a  population  in   excess   of
14    1,000,000; these provisions do not limit the powers conferred
15    on housing authorities in general.
16        Neither  the commissioners of an Authority nor any person
17    executing the bonds shall be liable personally on  the  bonds
18    by  reason  of  the  issuance  thereof.  The  bonds and other
19    obligations of an Authority (and such bonds  and  obligations
20    shall  so  state  on  their  face) shall not be a debt of any
21    city, village, incorporated town, county, the  State  or  any
22    political  subdivision thereof and neither the city, village,
23    incorporated town  or  the  county,  nor  the  State  or  any
24    political subdivision thereof shall be liable thereon, nor in
25    any  event  shall such bonds or obligations be payable out of
26    any funds or properties other than those of  said  Authority.
27    The  bonds  shall  not  constitute an indebtedness within the
28    meaning of any constitutional or statutory debt limitation or
29    restriction.
30    (Source: Laws 1937, p. 679.)

31        (310 ILCS 10/17) (from Ch. 67 1/2, par. 17)
32        Sec. 17.  The following terms, wherever used or  referred
33    to  in this Act shall have the following respective meanings,
 
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 1    unless in any case a different meaning clearly  appears  from
 2    the context:
 3        (a)  "Authority"  or  "housing  authority"  shall  mean a
 4    municipal  corporation  organized  in  accordance  with   the
 5    provisions  of this Act for the purposes, with the powers and
 6    subject to the restrictions herein set forth.
 7        (b)  "Area" or "area of operation" shall mean: (1) in the
 8    case of an authority which is created hereunder for  a  city,
 9    village,   or   incorporated   town,   the  area  within  the
10    territorial boundaries of said city, village, or incorporated
11    town,  and  so  long  as  no  county  housing  authority  has
12    jurisdiction therein, the area within three miles  from  such
13    territorial  boundaries, except any part of such area located
14    within the territorial boundaries of any other city, village,
15    or incorporated town; and (2) in the case of a  county  shall
16    include  all  of  the  county  except  the  area of any city,
17    village or incorporated town located therein in  which  there
18    is  an  Authority.  When an authority is created for a county
19    subsequent to the  creation  of  an  authority  for  a  city,
20    village or incorporated town within the same county, the area
21    of  operation  of  the  authority  for  such city, village or
22    incorporated  town  shall  thereafter  be  limited   to   the
23    territory of such city, village or incorporated town, but the
24    authority  for  such  city,  village or incorporated town may
25    continue to operate any project developed in whole or in part
26    in an area previously a part of its area of operation, or may
27    contract with the county housing authority  with  respect  to
28    the  sale,  lease,  development  or  administration  of  such
29    project.  When an authority is created for a city, village or
30    incorporated  town  subsequent  to  the  creation of a county
31    housing  authority  which  previously  included  such   city,
32    village  or  incorporated  town within its area of operation,
33    such county housing authority shall have no power  to  create
34    any   additional   project   within   the  city,  village  or
 
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 1    incorporated town, but any  existing  project  in  the  city,
 2    village  or incorporated town currently owned and operated by
 3    the county housing authority shall remain in  the  ownership,
 4    operation,   custody   and  control  of  the  county  housing
 5    authority.
 6        (c)  "Presiding officer" shall mean the presiding officer
 7    of the board of a county, or the  mayor  or  president  of  a
 8    city,  village  or incorporated town, as the case may be, for
 9    which an Authority is created hereunder.
10        (d)  "Commissioner" shall mean one of the members  of  an
11    Authority appointed in accordance with the provisions of this
12    Act.
13        (e)  "Government"  shall  include  the  State and Federal
14    governments and the governments of any  subdivisions,  agency
15    or  instrumentality,  corporate  or  otherwise,  of either of
16    them.
17        (f)  "Department" shall mean the Department  of  Commerce
18    and Community Affairs.
19        (g)  "Project"  shall  include  all lands, buildings, and
20    improvements, acquired, owned, leased, managed or operated by
21    a housing  authority,  and  all  buildings  and  improvements
22    constructed,   reconstructed   or   repaired   by  a  housing
23    authority, designed to  provide  housing  accommodations  and
24    facilities    appurtenant    thereto   (including   community
25    facilities and stores) which are planned as a  unit,  whether
26    or not acquired or constructed at one time even though all or
27    a  portion of the buildings are not contiguous or adjacent to
28    one another; and the planning of buildings and  improvements,
29    the  acquisition  of  property,  the  demolition  of existing
30    structures,  the  clearing   of   land,   the   construction,
31    reconstruction,  and  repair of buildings or improvements and
32    all other work  in  connection  therewith.   As  provided  in
33    Sections  8.14  to 8.18, inclusive, "project" also means, for
34    Housing Authorities for municipalities of less  than  500,000
 
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 1    population  and for counties, the conservation of urban areas
 2    in accordance with an approved conservation plan.   "Project"
 3    shall  also include (1) acquisition of (i) a slum or blighted
 4    area  or  a  deteriorated  or  deteriorating  area  which  is
 5    predominantly residential in character,  or  (ii)  any  other
 6    deteriorated  or  deteriorating area which is to be developed
 7    or redeveloped for predominantly residential uses,  or  (iii)
 8    platted  urban  or  suburban land which is predominantly open
 9    and  which  because  of  obsolete  platting,   diversity   of
10    ownership,   deterioration   of   structures   or   of   site
11    improvements,  or  otherwise substantially impairs or arrests
12    the sound  growth  of  the  community  and  which  is  to  be
13    developed  for  predominantly  residential uses, or (iv) open
14    unplatted  urban  or  suburban  land  necessary   for   sound
15    community  growth  which is to be developed for predominantly
16    residential uses, or (v) any other area where parcels of land
17    remain undeveloped because of improper  platting,  delinquent
18    taxes   or   special   assessments,  scattered  or  uncertain
19    ownerships,  clouds  on  title,  artificial  values  due   to
20    excessive  utility costs, or any other impediments to the use
21    of  such  area  for  predominantly  residential   uses;   (2)
22    installation,  construction,  or  reconstruction  of streets,
23    utilities, and  other  site  improvements  essential  to  the
24    preparation   of  sites  for  uses  in  accordance  with  the
25    development or redevelopment plan; and (3)  making  the  land
26    available   for   development  or  redevelopment  by  private
27    enterprise  or  public  agencies  (including  sale,   initial
28    leasing, or retention by the local public agency itself).  If
29    in any city, village or incorporated town there exists a land
30    clearance   commission  created  under  the  "Blighted  Areas
31    Redevelopment Act of 1947" having the same area of  operation
32    as   a   housing  authority  created  in  and  for  any  such
33    municipality such housing authority shall have  no  power  to
34    acquire  land  of  the  character  described  in subparagraph
 
HB2432 Enrolled            -7-                 LRB9208015ARmb
 1    (iii), (iv) or (v)  of  paragraph  1  of  the  definition  of
 2    "project"  for the purpose of development or redevelopment by
 3    private enterprise.
 4        (h)  "Community   facilities"   shall   include    lands,
 5    buildings,  and  equipment for recreation or social assembly,
 6    for  education,  health  or  welfare  activities  and   other
 7    necessary  utilities  primarily  for  use  and benefit of the
 8    occupants  of  housing  accommodations  to  be   constructed,
 9    reconstructed, repaired or operated hereunder.
10        (i)  "Real  property"  shall  include  lands, lands under
11    water, structures, and any and all easements, franchises  and
12    incorporeal  hereditaments and estates, and rights, legal and
13    equitable, including terms for years  and  liens  by  way  of
14    judgment, mortgage or otherwise.
15        (j)  The  term  "governing  body"  shall include the city
16    council of any city, the president and board of  trustees  of
17    any  village or incorporated town, the council of any city or
18    village, and the county board of any county.
19        (k)  The phrase "individual, association, corporation  or
20    organization"   shall   include   any   individual,   private
21    corporation,    insurance   company,   housing   corporation,
22    neighborhood    redevelopment     corporation,     non-profit
23    corporation,   incorporated   or   unincorporated   group  or
24    association, educational institution, hospital, or charitable
25    organization,  and  any  mutual  ownership   or   cooperative
26    organization.
27        (l)  "Conservation area", for the purpose of the exercise
28    of  the  powers  granted in Sections 8.14 to 8.18, inclusive,
29    for housing  authorities  for  municipalities  of  less  than
30    500,000  population  and  for  counties, means an area of not
31    less than 2 acres in which the structures in 50% or  more  of
32    the area are residential having an average age of 35 years or
33    more.   Such  an  area  is not yet a slum or blighted area as
34    defined in the Blighted Areas Redevelopment Act of 1947,  but
 
HB2432 Enrolled            -8-                 LRB9208015ARmb
 1    such   an  area  by  reason  of  dilapidation,  obsolescence,
 2    deterioration  or  illegal  use  of  individual   structures,
 3    overcrowding   of   structures   and   community  facilities,
 4    conversion of residential  units  into  non-residential  use,
 5    deleterious   land   use   or  layout,  decline  of  physical
 6    maintenance, lack of community planning, or  any  combination
 7    of these factors may become a slum and blighted area.
 8        (m)  "Conservation  plan" means the comprehensive program
 9    for  the   physical   development   and   replanning   of   a
10    "Conservation Area" as defined in paragraph (l) embodying the
11    steps   required  to  prevent  such  Conservation  Area  from
12    becoming a slum and blighted area.
13        (n)  "Fair use value" means the fair cash market value of
14    real property when employed for the  use  contemplated  by  a
15    "Conservation  Plan"  in  municipalities of less than 500,000
16    population and in counties.
17        (o)  "Community  facilities"  means,  in  relation  to  a
18    "Conservation Plan", those physical plants  which  implement,
19    support and facilitate the activities, services and interests
20    of education, recreation, shopping, health, welfare, religion
21    and general culture.
22        (p)  "Loan  agreement"  means  any  agreement pursuant to
23    which an Authority agrees to loan the proceeds of its revenue
24    bonds issued with respect to  a  multifamily  rental  housing
25    project  or  other  funds of the Authority to any person upon
26    terms providing for  loan  repayment  installments  at  least
27    sufficient to pay when due all principal of, premium, if any,
28    and  interest  on  the  revenue bonds of the Authority issued
29    with respect to the multifamily rental housing  project,  and
30    providing  for  maintenance,  insurance, and other matters as
31    may be deemed desirable by the Authority.
32        (q)  "Multifamily  rental  housing"  means   any   rental
33    project designed for mixed-income or low-income occupancy.
34    (Source: P.A. 87-200.)
 
HB2432 Enrolled            -9-                 LRB9208015ARmb
 1        (310 ILCS 10/21) (from Ch. 67 1/2, par. 21)
 2        Sec. 21.  In connection with the issuance of bonds or the
 3    incurring  of obligations under leases and in order to secure
 4    the payment of such bonds or obligations,  an  Authority,  in
 5    addition to its other powers, shall have power:
 6        (a)  To pledge all or any part of its gross or net rents,
 7    fees  or  revenues  to  which  its  right  then exists or may
 8    thereafter come into existence.
 9        (b)  To covenant against pledging all or any part of  its
10    rents,  fees  and revenues, or against permitting or allowing
11    any lien on such  revenues  or  property;  to  covenant  with
12    respect  to  limitations  on  its  right  to  sell,  lease or
13    otherwise dispose of any housing project or any part thereof;
14    and to covenant as to what  other,  or  additional  debts  or
15    obligations may be incurred by it.
16        (c)  To  covenant  as to the bonds to be issued and as to
17    the issuance of such bonds in escrow or otherwise, and as  to
18    the  use  and disposition of the proceeds thereof: to provide
19    for the replacement of lost, destroyed or mutilated bonds; to
20    covenant against extending the time for the  payment  of  its
21    bonds  or  interest  thereon; and to redeem the bonds, and to
22    covenant for their redemption and to provide  the  terms  and
23    conditions thereof.
24        (d)  To covenant (subject to the limitations contained in
25    this  Act)  as  to  the  rents  and fees to be charged in the
26    operation of a housing project or projects, the amount to  be
27    raised  each  year or other period of time by rents, fees and
28    other revenues, and as to the use and disposition to be  made
29    thereof;  to  create  or to authorize the creation of special
30    funds for moneys held for construction  or  operating  costs,
31    debt service, reserves, or other purposes, and to covenant as
32    to the use and disposition of the moneys held in such funds.
33        (e)  To  prescribe  the  procedure,  if any, by which the
34    terms of any contract with  bondholders  may  be  amended  or
 
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 1    abrogated,  the  amount  of  bonds  the holders of which must
 2    consent thereto and the manner in which such consent  may  be
 3    given.
 4        (f)  To  covenant as to the use of any or all of its real
 5    or personal property; and to covenant as to  the  maintenance
 6    of  its  real and personal property, the replacement thereof,
 7    the  insurance  to  be  carried  thereon  and  the  use   and
 8    disposition of insurance moneys.
 9        (g)  To  covenant  as  to the rights, liabilities, powers
10    and duties arising upon the breach by  it  of  any  covenant,
11    condition, or obligation; and to covenant and prescribe as to
12    events  of default and terms and conditions upon which any or
13    all of its bonds  or  obligations  shall  become  or  may  be
14    declared  due  before  maturity,  and  as  to  the  terms and
15    conditions upon which such declaration and  its  consequences
16    may be waived.
17        (h)  To  vest  in a trustee or trustees or the holders of
18    bonds or any  specified  proportion  of  them  the  right  to
19    enforce the payment of the bonds or any covenants securing or
20    relating  to  the bonds; to vest in a trustee or trustees the
21    right, in the event of a default by the  Authority,  to  take
22    possession  of  any  housing project or part thereof, and (so
23    long as the Authority shall continue in  default)  to  retain
24    such  possession and use, operate and manage the project, and
25    to collect the rents and revenues arising  therefrom  and  to
26    dispose  of  such  moneys in accordance with the agreement of
27    the Authority with the trustee; to provide for the powers and
28    duties of a trustee or trustees and to limit the  liabilities
29    thereof;  and  to provide the terms and conditions upon which
30    the trustee or trustees  or  the  holders  of  bonds  or  any
31    proportion  of  them  may  enforce  any  covenant  or  rights
32    securing or relating to the bonds.
33        (i)  In  the  case  of  an  Authority  for a municipality
34    having a population in excess of  1,000,000,  to  enter  into
 
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 1    loan   agreements,   regulatory  agreements,  and  all  other
 2    instruments or documentation with private  borrowers  of  the
 3    proceeds of the Authority's multifamily housing revenue bonds
 4    and  to  accept  guaranties  from persons of its loans or the
 5    resultant evidences of  obligations  to  the  Authority.  The
 6    provisions  of  this  amendatory  Act  of  the  92nd  General
 7    Assembly  create  additional  powers  for housing authorities
 8    having a population in excess of 1,000,000; these  provisions
 9    do  not  limit the powers conferred on housing authorities in
10    general.
11        (j)  To exercise all or any part or  combination  of  the
12    powers  herein  granted;  to make covenants other than and in
13    addition to the covenants  herein  expressly  authorized,  of
14    like or different character; to make such covenants and to do
15    any  and  all  such  acts  and  things as may be necessary or
16    convenient or desirable in order to secure its bonds, or,  in
17    the  absolute  discretion  of  the Authority, as will tend to
18    make the bonds  more  marketable  notwithstanding  that  such
19    covenants, acts or things may not be enumerated herein.
20    (Source: P.A. 84-551.)

21        Section  99.  Effective date.  This Act takes effect upon
22    becoming law.

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