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90_HB2867 20 ILCS 3805/2 from Ch. 67 1/2, par. 302 Amends the Illinois Housing Development Act. Specifies that the definition of "residential mortgage" applies to mortgages on real property improved by multi-unit structures as well as single-unit structures. Makes other stylistic changes. Effective immediately. LRB9008773SMdv LRB9008773SMdv 1 AN ACT to amend the Illinois Housing Development Act by 2 changing Section 2. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Housing Development Act is 6 amended by changing Section 2 as follows: 7 (20 ILCS 3805/2) (from Ch. 67 1/2, par. 302) 8 Sec. 2. As used in this Act: 9
(a)"Authority" means the Illinois Housing Development 10 Authority created in this Act. 11 (b)"Development costs" means the costs approved by the 12 Authority as appropriate expenditures which may be incurred 13 prior to commitment and initial closing of assisted mortgage 14 financing or of housing related commercial facilities, 15 including but not limited to: (1) payments for options to 16 purchase properties for the proposed development or 17 facilities, deposits on contracts of purchase, or, with the 18 prior approval of the Authority, payments for the purchases 19 of the suchproperties; (2) legal, organizational, and 20 consultants' expenses; (3) payment of fees for preliminary 21 feasibility studies and engineering and architectural work; 22 (4) necessary application and other fees to federal, State 23 and local government agencies; and (5) any suchother 24 expenses as the Authority may deem appropriate to effectuate 25 the purposes of this Act. 26 (c)"Assisted mortgage financing" means a below market 27 interest rate mortgage insured or purchased, or a loan made, 28 by the Secretary of the United States Department of Housing 29 and Urban Development or by any other federal agency or 30 governmental corporation or by any political subdivision of 31 the State of Illinois or by any Illinois public corporation; -2- LRB9008773SMdv 1 a market interest rate mortgage insured or purchased, or a 2 loan made in combination with, or as augmented by, a program 3 of rent supplements, interest subsidies, leasing, 4 contributions or grants, or other programs as are now or 5 hereafter authorized by federal law to serve low or moderate 6 income persons; a mortgage or loan made pursuant to this Act; 7 or a mortgage or loan from any private or public source with 8 an interest rate and terms satisfactory to the Authority and 9 which will meet the requirements and purposes of this Act. 10 (d)"Lending institution" means any bank, trust company, 11 savings bank, savings and loan association, credit union, 12 national banking association, mortgage banking association, 13 federal savings and loan association or federal credit unit 14 maintaining an office in the State, any insurance company or 15 any other entity or organization which makes or acquires 16 loans secured by real property. 17 (e)"Residential mortgage" means a loan owed to a 18 lending institution, to the Authority or to a trustee for 19 holders of bonds or notes of the Authority or to a trustee 20 for owners of pools of mortgages, and secured by a lien on 21 real property located in the State and improved by a 22 residential structure of one or more living units or a mixed 23 residential and commercial structure, or unimproved if the 24 proceeds of the suchloan shall be used for the erection of a 25 residential structure or a mixed residential and commercial 26 structure thereon, whether or not such loan is insured or 27 guaranteed by the United States of America or any agency or 28 corporation thereof. 29 (f)"Development" means a specific work or improvement 30 undertaken to provide dwelling accommodations, including the 31 acquisition, construction or rehabilitation of lands, 32 buildings and community facilities and in connection 33 therewith to provide nonhousing facilities which are a part 34 of a planned large-scale project or new community. -3- LRB9008773SMdv 1 (g)"Persons and families of low and moderate income" 2 and "Low income or moderate income persons" means families 3 and persons who cannot afford to pay the amounts at which 4 private enterprise, without assisted mortgage financing, is 5 providing a substantial supply of decent, safe, and sanitary 6 housing. The income limits for the admission of suchfamilies 7 and persons to developments shall be those established under 8 pursuant tothe rules applicable to the assisted mortgage 9 financing program under which the suchdevelopments are 10 financed. 11 (h)"Moderate rentals" means rent charges less than 12 those rents generally charged for new dwelling units of 13 comparable size and location built by the unassisted efforts 14 of private enterprise and financed at then current market 15 interest rates. 16 (i)"Low rentals" means rent charges at least 10% lower 17 than moderate rentals. 18 (j)"Rents" or "Rentals" means shall meanfees or 19 charges paid for use of a development under this Act, whether 20 the development is operated on a landlord-tenant basis or as 21 a condominium or cooperative. 22 (k)"Limited-profit entity" means any individual, joint 23 venture, partnership, limited partnership, trust, or 24 corporation organized or existing under the laws of the State 25 of Illinois or authorized to do business in this State and 26 having articles of incorporation or comparable documents of 27 organization or a written agreement with the Authority which, 28 in addition to other requirements of law, provide: 29 (1) that if the limited-profit entity receives any 30 loan from the Authority as provided for in this Act, it 31 shall be authorized to enter into an agreement with the 32 Authority providing for regulations with respect to 33 rents, profits, dividends and disposition of property or 34 franchises; and -4- LRB9008773SMdv 1 (2) that if the limited-profit entity receives a 2 loan, as provided for in this Act, the Chairman of the 3 Authority, acting with the prior approval of the 4 Authority, shall have the power, if he determines that 5 any suchloan is in jeopardy of not being repaid, or that 6 the proposed development for which the suchloan was made 7 is in jeopardy of not being constructed, or the 8 limited-profit entity is otherwise in violation of rules 9 and regulations promulgated by the Authority, to appoint 10 to the board of directors or other comparable controlling 11 body of the suchlimited-profit entity a number of new 12 directors or persons, which number shall be sufficient to 13 constitute a voting majority of the suchboard or 14 controlling body, notwithstanding any other provisions of 15 the limited-profit entity's articles of incorporation or 16 other documents of organization, or of any other 17 provisions of law, provided that this requirement set 18 forth in this paragraph (2) is not mandatory in the case 19 of loans made solely with monies from the Authority's 20 administrative fund. 21 (l)"Land development" means the process of clearing and 22 grading land, making, installing, or constructing waterlines 23 and water supply installations, sewerlines and sewage 24 disposal installations, steam, gas, and electric lines and 25 installations, roads, streets, curbs, gutters, sidewalks, 26 storm drainage facilities, and other installations or work, 27 whether on or off the site, necessary or desirable to prepare 28 land for residential, commercial, industrial, or other uses, 29 or to provide facilities for public or common use. 30 (m)"Nonprofit corporation" means a nonprofit 31 corporation incorporated pursuant to the provisions of the 32 IllinoisGeneral Not For Profit Corporation Act of 1986 or 33 the State Housing Act of 1933and having articles of 34 incorporation which, in addition to other requirements of -5- LRB9008773SMdv 1 law, provide: 2 (1) that the corporation has been organized to 3 provide housing facilities for persons of low and 4 moderate income; 5 (2) that all income and earnings of the corporation 6 shall be used exclusively for corporation purposes and 7 that no part of the net income or net earnings of the 8 corporation shall inure to the benefit or profit of any 9 private individual, firm, corporation, partnership, or 10 association; 11 (3) that the corporation is in no manner controlled 12 or under the direction or acting in the substantial 13 interest of private individuals, firms, corporations, 14 partnerships, or associations seeking to derive profit or 15 gain therefrom or seeking to eliminate or minimize losses 16 in any dealings or transactions therewith; 17 (4) that if the corporation receives any loan or 18 advance from the Authority as provided for in this Act, 19 it shall be authorized to enter into an agreement with 20 the Authority providing for regulation with respect to 21 rents, profits, dividends, and disposition of property or 22 franchises; 23 (5) that if the corporation receives a loan or 24 advance, as provided for in this Act, the chairman of the 25 Authority, acting with the prior approval of the majority 26 of the members of the Authority, shall have the power if 27 he determines that any suchloan or advance is in 28 jeopardy of not being repaid, or that the proposed 29 development for which the suchloan or advance was made 30 is in jeopardy of not being constructed, or that some 31 part of the net income or net earnings of the corporation 32 is inuring to the benefit of any private individual, 33 firm, corporation, partnership, or association, or that 34 the corporation is in some manner controlled or under the -6- LRB9008773SMdv 1 direction of or acting in the substantial interest of any 2 private individual, firm, corporation, partnership, or 3 association seeking to derive benefit or gain therefrom 4 or seeking to eliminate or minimize losses in any 5 dealings or transactions therewith, or is in violation of 6 rules and regulations promulgated by the Authority to 7 appoint to the board of directors of the suchcorporation 8 a number of new directors, which number shall be 9 sufficient to constitute a majority of the suchboard, 10 notwithstanding any other provisions of the sucharticles 11 of incorporation or of any other provisions of law; and 12 (6) that each development of the suchcorporation 13 shall be operated exclusively for the benefit of the 14 persons who are housed in the suchdevelopment, which 15 shall include families or persons of low or moderate 16 income as required by this Act, and that the such17 development shall reserve for families or persons of low 18 or moderate income the number and types of dwelling units 19 required by applicable federal or State law. 20 The requirements contained in paragraphs (2), (3), (5) 21 and (6) are not mandatory in the case of loans made solely 22 from the Authority's administrative fund. 23 (n)"State" means the State of Illinois. 24 (o)"Community facilities" means the land, buildings, 25 improvements and equipment for land development, for health, 26 welfare, recreational, social, educational and commercial 27 activities, and for public, common or municipal services. 28 (p)"Sinking fund payment" means the amount of money 29 specified in the resolution or resolutions authorizing term 30 bonds as payable into a sinking fund during a particular 31 period for the retirement of term bonds at maturity after 32 that suchperiod, but shall not include any amount payable by 33 reason only of the maturity of a bond. 34 (q)"Housing related commercial facilities" means -7- LRB9008773SMdv 1 commercial facilities which are or are to be related to a 2 development. Commercial facilities are related to a 3 development if they are, in the sole judgment of the 4 Authority, located in the same area as the development and 5 (i) necessary or desirable in order to provide services for 6 residents of that area in which the development is located; 7 or (ii) a portion of the revenues of the commercial 8 facilities are to be used to provide funds for paying costs 9 of construction, acquisition, rehabilitation, operation, 10 maintenance of or payment of debt service on the development 11 or (iii) necessary or desirable in order to make the 12 development successful, such as, without limitation, 13 eliminating or preventing slum or blighted conditions, 14 preserving historic structures or ensuring that facilities 15 are not inconsistent with the development. For purposes of 16 this Section, "commercial facilities" includes land, 17 buildings, improvements, equipment and all ancillary 18 facilities for use for offices, stores, retirement homes, 19 hotels, financial institutions, service health care, 20 education, recreation or research establishments or any other 21 commercial purpose. 22 (r)"Rate protection contract" means interest rate 23 exchange agreements; currency exchange agreements; forward 24 payment conversion agreements; contracts providing for 25 payment or receipt of funds based on levels of, or changes 26 in, interest rates, currency exchange rates, stock or other 27 indices; contracts to exchange cash flows or a series of 28 payments; contracts, including without limitation, interest 29 rate caps; interest rate floors; interest rate locks; 30 interest rate collars; rate of return guarantees or 31 assurances, to manage payment, currency, rate, spread or 32 similar exposure; the obligation, right, or option to issue, 33 put, lend, sell, grant a security interest in, buy, borrow or 34 otherwise acquire, a bond, note or other security or interest -8- LRB9008773SMdv 1 therein as an investment, as collateral, as a hedge, or 2 otherwise as a source or assurance of payment to or by the 3 Authority or as a reduction of the Authority's or an 4 obligor's risk exposure; repurchase agreements; securities 5 lending agreements; and other agreements or arrangements 6 similar to the foregoing. 7 (s)"Affordable Housing Program Trust Fund Bonds or 8 Notes" means bonds or notes issued by the Authority pursuant 9 to the provisions of this Act for the purposes of providing 10 affordable housing to low and very low income persons as 11 provided in the Illinois Affordable Housing Act through the 12 use or pledge, in whole or in part, of Trust Fund Moneys 13 dedicated or otherwise made available to the Authority. 14 (t)"Trust Fund Moneys" has the meaning given to that 15 term in Section 3 of the Illinois Affordable Housing Act. 16 (Source: P.A. 87-250; 88-93.) 17 Section 99. Effective date. This Act takes effect upon 18 becoming law.
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