State of Illinois
92nd General Assembly
Legislation

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92_HB2432sam004

 










                                           LRB9208015ARpkam02

 1                    AMENDMENT TO HOUSE BILL 2432

 2        AMENDMENT NO.     .  Amend House Bill 2432,  AS  AMENDED,
 3    as follows:

 4    by  replacing  everything  after the enacting clause with the
 5    following:

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

 9        (310 ILCS 10/8.4a new)
10        Sec. 8.4a.  Additional  powers.  In  addition  to  powers
11    conferred  by  this  Act  and  other  laws concerning housing
12    authorities,  generally,  an  Authority  for  a  municipality
13    having a population in excess of 1,000,000 may do any of  the
14    following:
15        (a)  Issue revenue bonds for the purpose of financing the
16    construction,  equipping, or rehabilitation or refinancing of
17    multifamily rental housing and for the provision  of  capital
18    improvements  in  connection with and determined necessary to
19    the   multifamily   rental   housing   located   within   the
20    municipality having a population in excess of 1,000,000.
21        (b)  Make or  undertake  commitments  to  make  loans  to
 
                            -2-            LRB9208015ARpkam02
 1    finance  the  construction,  equipping,  or rehabilitation or
 2    refinancing of multifamily rental housing located within  the
 3    municipality having a population in excess of 1,000,000.
 4        (c)  Purchase   or   undertake,  directly  or  indirectly
 5    through  lending  institutions,  commitments   to   purchase,
 6    construction   loans,   and   mortgage  loans  originated  in
 7    accordance with a financing agreement with the  Authority  to
 8    finance  the  construction,  equipping,  or rehabilitation or
 9    refinancing of multifamily rental housing located within  the
10    municipality  having  a population in excess of 1,000,000, or
11    make loans to lending institutions under terms and conditions
12    which, in addition to  other  provisions  determined  by  the
13    Authority,  shall require the lending institutions to use the
14    net proceeds  of  the  loans  for  the  making,  directly  or
15    indirectly,  of  construction  loans  or  mortgage  loans  to
16    finance   the   construction,  equipping,  rehabilitation  or
17    refinancing of multifamily rental housing located within  the
18    municipality having a population in excess of 1,000,000.

19        (310 ILCS 10/11) (from Ch. 67 1/2, par. 11)
20        Sec.  11.  An  Authority  shall have power to issue bonds
21    from time to time in its discretion to finance in whole or in
22    part  the  cost  of  acquisition,   purchase,   construction,
23    reconstruction,  improvement, alteration, extension or repair
24    of any project or undertaking hereunder. An  Authority  shall
25    also  have  power to issue refunding bonds for the purpose of
26    paying  or  retiring  bonds  previously  issued  by  it.   An
27    Authority  may  issue such types of bonds as it may determine
28    by resolution, including bonds on  which  the  principal  and
29    interest  are  payable;  (a)  exclusively from the income and
30    revenues of the housing project financed with the proceeds of
31    such  bonds  (including,  without  limitation,   income   and
32    revenues  derived  from  a  loan  agreement with respect to a
33    project located within the municipality having  a  population
 
                            -3-            LRB9208015ARpkam02
 1    in  excess of 1,000,000), or with such proceeds together with
 2    a  grant  from  the  Federal  Government  or  any   political
 3    subdivision  of  the  State  in  aid  of  such  project;  (b)
 4    exclusively   from   the   income  and  revenues  of  certain
 5    designated housing projects of such Authority whether or  not
 6    they  were  financed in whole or in part with the proceeds of
 7    such bonds; or (c) from its revenues generally. Any  of  such
 8    bonds may be additionally secured by a pledge of any revenues
 9    of  any  housing  project,  projects or other property of the
10    Authority.
11        In addition to powers conferred by  this  Act  and  other
12    laws  concerning housing authorities in general, an Authority
13    for a municipality having a population in excess of 1,000,000
14    may grant a specific pledge or assignment of, and lien on  or
15    security   interest  in,  the  income  and  revenues  of  the
16    Authority derived from the loan agreement with respect to the
17    project or projects, as well as in any  reserves,  funds,  or
18    accounts  established in the resolution authorizing the bonds
19    or the indenture or other instrument under  which  the  bonds
20    are  issued.    As evidence of such pledge, assignment, lien,
21    and security interest, the Authority may execute and  deliver
22    a  mortgage,  trust agreement, indenture, security agreement,
23    or an assignment thereof. The provisions of  this  amendatory
24    Act of the 92nd General Assembly create additional powers for
25    housing   authorities   having  a  population  in  excess  of
26    1,000,000; these provisions do not limit the powers conferred
27    on housing authorities in general.
28        Neither the commissioners of an Authority nor any  person
29    executing  the  bonds shall be liable personally on the bonds
30    by reason of  the  issuance  thereof.  The  bonds  and  other
31    obligations  of  an Authority (and such bonds and obligations
32    shall so state on their face) shall not  be  a  debt  of  any
33    city,  village,  incorporated  town, county, the State or any
34    political subdivision thereof and neither the city,  village,
 
                            -4-            LRB9208015ARpkam02
 1    incorporated  town  or  the  county,  nor  the  State  or any
 2    political subdivision thereof shall be liable thereon, nor in
 3    any event shall such bonds or obligations be payable  out  of
 4    any  funds  or properties other than those of said Authority.
 5    The bonds shall not constitute  an  indebtedness  within  the
 6    meaning of any constitutional or statutory debt limitation or
 7    restriction.
 8    (Source: Laws 1937, p. 679.)

 9        (310 ILCS 10/17) (from Ch. 67 1/2, par. 17)
10        Sec.  17.  The following terms, wherever used or referred
11    to in this Act shall have the following respective  meanings,
12    unless  in  any case a different meaning clearly appears from
13    the context:
14        (a)  "Authority" or  "housing  authority"  shall  mean  a
15    municipal   corporation  organized  in  accordance  with  the
16    provisions of this Act for the purposes, with the powers  and
17    subject to the restrictions herein set forth.
18        (b)  "Area" or "area of operation" shall mean: (1) in the
19    case  of  an authority which is created hereunder for a city,
20    village,  or  incorporated  town,   the   area   within   the
21    territorial boundaries of said city, village, or incorporated
22    town,  and  so  long  as  no  county  housing  authority  has
23    jurisdiction  therein,  the area within three miles from such
24    territorial boundaries, except any part of such area  located
25    within the territorial boundaries of any other city, village,
26    or  incorporated  town; and (2) in the case of a county shall
27    include all of the  county  except  the  area  of  any  city,
28    village  or  incorporated town located therein in which there
29    is an Authority.  When an authority is created for  a  county
30    subsequent  to  the  creation  of  an  authority  for a city,
31    village or incorporated town within the same county, the area
32    of operation of the  authority  for  such  city,  village  or
33    incorporated   town   shall  thereafter  be  limited  to  the
 
                            -5-            LRB9208015ARpkam02
 1    territory of such city, village or incorporated town, but the
 2    authority for such city, village  or  incorporated  town  may
 3    continue to operate any project developed in whole or in part
 4    in an area previously a part of its area of operation, or may
 5    contract  with  the  county housing authority with respect to
 6    the  sale,  lease,  development  or  administration  of  such
 7    project.  When an authority is created for a city, village or
 8    incorporated town subsequent to  the  creation  of  a  county
 9    housing   authority  which  previously  included  such  city,
10    village or incorporated town within its  area  of  operation,
11    such  county  housing authority shall have no power to create
12    any  additional  project  within   the   city,   village   or
13    incorporated  town,  but  any  existing  project in the city,
14    village or incorporated town currently owned and operated  by
15    the  county  housing authority shall remain in the ownership,
16    operation,  custody  and  control  of  the   county   housing
17    authority.
18        (c)  "Presiding officer" shall mean the presiding officer
19    of  the  board  of  a  county, or the mayor or president of a
20    city, village or incorporated town, as the case may  be,  for
21    which an Authority is created hereunder.
22        (d)  "Commissioner"  shall  mean one of the members of an
23    Authority appointed in accordance with the provisions of this
24    Act.
25        (e)  "Government" shall include  the  State  and  Federal
26    governments  and  the governments of any subdivisions, agency
27    or instrumentality, corporate  or  otherwise,  of  either  of
28    them.
29        (f)  "Department"  shall  mean the Department of Commerce
30    and Community Affairs.
31        (g)  "Project" shall include all  lands,  buildings,  and
32    improvements, acquired, owned, leased, managed or operated by
33    a  housing  authority,  and  all  buildings  and improvements
34    constructed,  reconstructed  or   repaired   by   a   housing
 
                            -6-            LRB9208015ARpkam02
 1    authority,  designed  to  provide  housing accommodations and
 2    facilities   appurtenant   thereto    (including    community
 3    facilities  and  stores) which are planned as a unit, whether
 4    or not acquired or constructed at one time even though all or
 5    a portion of the buildings are not contiguous or adjacent  to
 6    one  another; and the planning of buildings and improvements,
 7    the acquisition  of  property,  the  demolition  of  existing
 8    structures,   the   clearing   of   land,  the  construction,
 9    reconstruction, and repair of buildings or  improvements  and
10    all  other  work  in  connection  therewith.   As provided in
11    Sections 8.14 to 8.18, inclusive, "project" also  means,  for
12    Housing  Authorities  for municipalities of less than 500,000
13    population and for counties, the conservation of urban  areas
14    in  accordance with an approved conservation plan.  "Project"
15    shall also include (1) acquisition of (i) a slum or  blighted
16    area  or  a  deteriorated  or  deteriorating  area  which  is
17    predominantly  residential  in  character,  or (ii) any other
18    deteriorated or deteriorating area which is to  be  developed
19    or  redeveloped  for predominantly residential uses, or (iii)
20    platted urban or suburban land which  is  predominantly  open
21    and   which   because  of  obsolete  platting,  diversity  of
22    ownership,   deterioration   of   structures   or   of   site
23    improvements, or otherwise substantially impairs  or  arrests
24    the  sound  growth  of  the  community  and  which  is  to be
25    developed for predominantly residential uses,  or  (iv)  open
26    unplatted   urban   or  suburban  land  necessary  for  sound
27    community growth which is to be developed  for  predominantly
28    residential uses, or (v) any other area where parcels of land
29    remain  undeveloped  because of improper platting, delinquent
30    taxes  or  special  assessments,   scattered   or   uncertain
31    ownerships,   clouds  on  title,  artificial  values  due  to
32    excessive utility costs, or any other impediments to the  use
33    of   such   area  for  predominantly  residential  uses;  (2)
34    installation, construction,  or  reconstruction  of  streets,
 
                            -7-            LRB9208015ARpkam02
 1    utilities,  and  other  site  improvements  essential  to the
 2    preparation  of  sites  for  uses  in  accordance  with   the
 3    development  or  redevelopment  plan; and (3) making the land
 4    available  for  development  or  redevelopment   by   private
 5    enterprise   or  public  agencies  (including  sale,  initial
 6    leasing, or retention by the local public agency itself).  If
 7    in any city, village or incorporated town there exists a land
 8    clearance  commission  created  under  the  "Blighted   Areas
 9    Redevelopment  Act of 1947" having the same area of operation
10    as  a  housing  authority  created  in  and  for   any   such
11    municipality  such  housing  authority shall have no power to
12    acquire land  of  the  character  described  in  subparagraph
13    (iii),  (iv)  or  (v)  of  paragraph  1  of the definition of
14    "project" for the purpose of development or redevelopment  by
15    private enterprise.
16        (h)  "Community    facilities"   shall   include   lands,
17    buildings, and equipment for recreation or  social  assembly,
18    for   education,  health  or  welfare  activities  and  other
19    necessary utilities primarily for  use  and  benefit  of  the
20    occupants   of  housing  accommodations  to  be  constructed,
21    reconstructed, repaired or operated hereunder.
22        (i)  "Real property" shall  include  lands,  lands  under
23    water,  structures, and any and all easements, franchises and
24    incorporeal hereditaments and estates, and rights, legal  and
25    equitable,  including  terms  for  years  and liens by way of
26    judgment, mortgage or otherwise.
27        (j)  The term "governing body"  shall  include  the  city
28    council  of  any city, the president and board of trustees of
29    any village or incorporated town, the council of any city  or
30    village, and the county board of any county.
31        (k)  The  phrase "individual, association, corporation or
32    organization"   shall   include   any   individual,   private
33    corporation,   insurance   company,   housing    corporation,
34    neighborhood     redevelopment     corporation,    non-profit
 
                            -8-            LRB9208015ARpkam02
 1    corporation,  incorporated   or   unincorporated   group   or
 2    association, educational institution, hospital, or charitable
 3    organization,   and   any  mutual  ownership  or  cooperative
 4    organization.
 5        (l)  "Conservation area", for the purpose of the exercise
 6    of the powers granted in Sections 8.14  to  8.18,  inclusive,
 7    for  housing  authorities  for  municipalities  of  less than
 8    500,000 population and for counties, means  an  area  of  not
 9    less  than  2 acres in which the structures in 50% or more of
10    the area are residential having an average age of 35 years or
11    more.  Such an area is not yet a slum  or  blighted  area  as
12    defined  in the Blighted Areas Redevelopment Act of 1947, but
13    such  an  area  by  reason  of  dilapidation,   obsolescence,
14    deterioration   or  illegal  use  of  individual  structures,
15    overcrowding  of   structures   and   community   facilities,
16    conversion  of  residential  units  into non-residential use,
17    deleterious  land  use  or  layout,   decline   of   physical
18    maintenance,  lack  of community planning, or any combination
19    of these factors may become a slum and blighted area.
20        (m)  "Conservation plan" means the comprehensive  program
21    for   the   physical   development   and   replanning   of  a
22    "Conservation Area" as defined in paragraph (l) embodying the
23    steps  required  to  prevent  such  Conservation  Area   from
24    becoming a slum and blighted area.
25        (n)  "Fair use value" means the fair cash market value of
26    real  property  when  employed  for the use contemplated by a
27    "Conservation Plan" in municipalities of  less  than  500,000
28    population and in counties.
29        (o)  "Community  facilities"  means,  in  relation  to  a
30    "Conservation  Plan",  those physical plants which implement,
31    support and facilitate the activities, services and interests
32    of education, recreation, shopping, health, welfare, religion
33    and general culture.
34        (p)  "Loan agreement" means  any  agreement  pursuant  to
 
                            -9-            LRB9208015ARpkam02
 1    which an Authority agrees to loan the proceeds of its revenue
 2    bonds  issued  with  respect  to a multifamily rental housing
 3    project or other funds of the Authority to  any  person  upon
 4    terms  providing  for  loan  repayment  installments at least
 5    sufficient to pay when due all principal of, premium, if any,
 6    and interest on the revenue bonds  of  the  Authority  issued
 7    with  respect  to the multifamily rental housing project, and
 8    providing for maintenance, insurance, and  other  matters  as
 9    may be deemed desirable by the Authority.
10        (q)  "Multifamily   rental   housing"  means  any  rental
11    project designed for mixed-income or low-income occupancy.
12    (Source: P.A. 87-200.)

13        (310 ILCS 10/21) (from Ch. 67 1/2, par. 21)
14        Sec. 21.  In connection with the issuance of bonds or the
15    incurring of obligations under leases and in order to  secure
16    the  payment  of  such bonds or obligations, an Authority, in
17    addition to its other powers, shall have power:
18        (a)  To pledge all or any part of its gross or net rents,
19    fees or revenues to  which  its  right  then  exists  or  may
20    thereafter come into existence.
21        (b)  To  covenant against pledging all or any part of its
22    rents, fees and revenues, or against permitting  or  allowing
23    any  lien  on  such  revenues  or  property; to covenant with
24    respect to  limitations  on  its  right  to  sell,  lease  or
25    otherwise dispose of any housing project or any part thereof;
26    and  to  covenant  as  to  what other, or additional debts or
27    obligations may be incurred by it.
28        (c)  To covenant as to the bonds to be issued and  as  to
29    the  issuance of such bonds in escrow or otherwise, and as to
30    the use and disposition of the proceeds thereof:  to  provide
31    for the replacement of lost, destroyed or mutilated bonds; to
32    covenant  against  extending  the time for the payment of its
33    bonds or interest thereon; and to redeem the  bonds,  and  to
 
                            -10-           LRB9208015ARpkam02
 1    covenant  for  their  redemption and to provide the terms and
 2    conditions thereof.
 3        (d)  To covenant (subject to the limitations contained in
 4    this Act) as to the rents and  fees  to  be  charged  in  the
 5    operation  of a housing project or projects, the amount to be
 6    raised each year or other period of time by rents,  fees  and
 7    other  revenues, and as to the use and disposition to be made
 8    thereof; to create or to authorize the  creation  of  special
 9    funds  for  moneys  held for construction or operating costs,
10    debt service, reserves, or other purposes, and to covenant as
11    to the use and disposition of the moneys held in such funds.
12        (e)  To prescribe the procedure, if  any,  by  which  the
13    terms  of  any  contract  with  bondholders may be amended or
14    abrogated, the amount of bonds  the  holders  of  which  must
15    consent  thereto  and the manner in which such consent may be
16    given.
17        (f)  To covenant as to the use of any or all of its  real
18    or  personal  property; and to covenant as to the maintenance
19    of its real and personal property, the  replacement  thereof,
20    the   insurance  to  be  carried  thereon  and  the  use  and
21    disposition of insurance moneys.
22        (g)  To covenant as to the  rights,  liabilities,  powers
23    and  duties  arising  upon  the breach by it of any covenant,
24    condition, or obligation; and to covenant and prescribe as to
25    events of default and terms and conditions upon which any  or
26    all  of  its  bonds  or  obligations  shall  become or may be
27    declared due  before  maturity,  and  as  to  the  terms  and
28    conditions  upon  which such declaration and its consequences
29    may be waived.
30        (h)  To vest in a trustee or trustees or the  holders  of
31    bonds  or  any  specified  proportion  of  them  the right to
32    enforce the payment of the bonds or any covenants securing or
33    relating to the bonds; to vest in a trustee or  trustees  the
34    right,  in  the  event of a default by the Authority, to take
 
                            -11-           LRB9208015ARpkam02
 1    possession of any housing project or part  thereof,  and  (so
 2    long  as  the  Authority shall continue in default) to retain
 3    such possession and use, operate and manage the project,  and
 4    to  collect  the  rents and revenues arising therefrom and to
 5    dispose of such moneys in accordance with  the  agreement  of
 6    the Authority with the trustee; to provide for the powers and
 7    duties  of a trustee or trustees and to limit the liabilities
 8    thereof; and to provide the terms and conditions  upon  which
 9    the  trustee  or  trustees  or  the  holders  of bonds or any
10    proportion  of  them  may  enforce  any  covenant  or  rights
11    securing or relating to the bonds.
12        (i)  In the case  of  an  Authority  for  a  municipality
13    having  a  population  in  excess of 1,000,000, to enter into
14    loan  agreements,  regulatory  agreements,  and   all   other
15    instruments  or  documentation  with private borrowers of the
16    proceeds of the Authority's multifamily housing revenue bonds
17    and to accept guaranties from persons of  its  loans  or  the
18    resultant  evidences  of  obligations  to  the Authority. The
19    provisions  of  this  amendatory  Act  of  the  92nd  General
20    Assembly create additional  powers  for  housing  authorities
21    having  a population in excess of 1,000,000; these provisions
22    do not limit the powers conferred on housing  authorities  in
23    general.
24        (j)  To  exercise  all  or any part or combination of the
25    powers herein granted; to make covenants other  than  and  in
26    addition  to  the  covenants  herein expressly authorized, of
27    like or different character; to make such covenants and to do
28    any and all such acts and  things  as  may  be  necessary  or
29    convenient  or desirable in order to secure its bonds, or, in
30    the absolute discretion of the Authority,  as  will  tend  to
31    make  the  bonds  more  marketable  notwithstanding that such
32    covenants, acts or things may not be enumerated herein.
33    (Source: P.A. 84-551.)
 
                            -12-           LRB9208015ARpkam02
 1        Section 99.  Effective date.  This Act takes effect  upon
 2    becoming law.".

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