(20 ILCS 3805/3) (from Ch. 67 1/2, par. 303)
Sec. 3.
It is hereby found and declared that as a result of public actions
involving highways, public facilities and urban renewal projects and as a
result of the spread of slum conditions and blight to formerly sound
neighborhoods and as a result of high costs of heating dwelling units,
and as a result of the shortage of and high cost of financing for
housing, there exists within Illinois a serious shortage, of decent,
safe, and sanitary housing available at low and moderate rentals to persons
and families of low and moderate income. This shortage is inimical to the
safety, health, morals and welfare of the residents of this State and the
sound growth of its communities. Private enterprise and investment, without
the assistance contemplated in this Act, is not disposed to nor can it
economically achieve the needed construction of decent, safe and sanitary
housing at rentals which persons and families of low and moderate income
can afford, nor is it disposed nor can it so achieve the urgently needed
rehabilitation of existing housing or the provision of existing housing
to those persons and families at those rentals. It is, therefore,
imperative that the cost of mortgage financing, a major factor materially
affecting rental levels in housing built by private enterprise, be made
lower in order to reduce rental levels for low and moderate income persons
and families; that the supply of housing for persons and families displaced
by public action or natural disaster be increased; and that private
enterprise be encouraged to acquire, build and rehabilitate housing which
will help prevent the recurrence of slum conditions and assist in their
permanent elimination by housing persons of varied economic means in the
same structures and neighborhoods.
It is further found and declared that the serious shortage of decent,
safe and sanitary housing in the State of Illinois is in large measure
caused by recurring critical shortages of funds in private lending
institutions available for residential mortgages at reasonable interest
rates. These shortages have contributed to serious reductions in
construction starts of new residential units and in rehabilitation of
existing housing. The unaided operations of private enterprise have not met
and cannot consistently meet the need for increased funds for residential
mortgage financing.
It is further found and declared that urban growth in this State is not
taking place in an efficient and well-planned manner. Many existing and
planned industrial and commercial facilities are not easily accessible to
the places of residence of substantial numbers of unemployed persons. The
unaided efforts of private enterprise have not met and cannot meet the
needs of providing residential dwellings in conjunction with or easily
accessible to such industrial and commercial facilities due to problems
encountered in assembling suitable building sites, the lack of adequate
public services, the unavailability of private capital for development in
such areas, and the inability of private enterprise alone to plan, finance
and coordinate industrial and commercial development with residential
development for persons and families of low and moderate income and with
public services and mass transportation facilities.
It is further found and declared that the development and provision of
decent, safe and sanitary housing available at low and moderate rentals to
persons and families of low and moderate income is being adversely
affected, in various areas, by the failure of those areas to have adequate
commercial facilities to serve the areas in which such housing may be
provided under this Act. It is further found and declared that the
coordinated development of commercial facilities in conjunction with
housing facilities can assist in providing decent, safe and sanitary
housing available at low and moderate rentals to persons and families of
low and moderate income. Moreover, the provision of housing related
commercial facilities will serve to provide employment, which is needed in
the State because of the serious and long standing level of unemployment in
the State, with the consequential reduction of public revenues and
increased costs of public services.
It is further found and declared that in the absence of direct
governmental subsidies the unaided operations of private enterprise do not
provide sufficient resources for residential construction, rehabilitation,
rental or purchase, and that support from housing related commercial
facilities is one means of stimulating residential construction,
rehabilitation, rental and purchase.
It is further found and declared that cost-effective construction
materials and techniques can significantly reduce normal heating costs, but
that the bargaining power of prospective low and moderate income tenants or
owners of housing developed under this Act is insufficient to assure the
utilization of such materials and techniques, and thus to assure affordable
heat to those who are the intended beneficiaries of this Act.
It is further found and declared that demolition and conversion of
single room occupancy hotels has exacerbated the shortage of affordable
housing for low-income persons.
It is further found and declared that the supply of decent, safe and
sanitary housing available at low and moderate rentals to persons and
families of low and moderate income is threatened by the potential
prepayment of federally subsidized mortgages. Based upon the above findings and declarations it is therefore
determined and declared that there exist unacceptable conditions in the
State which require the creation of a body politic and corporate with power
to issue notes and bonds in order to make loans for the acquisition,
construction and rehabilitation of housing, community facilities
and housing related commercial facilities, acquire and develop
land for large-scale planned developments and new communities and, as a
means of encouraging home ownership, make loans to and purchase residential
mortgages from private lending institutions.
(Source: P.A. 87-250.)
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