State of Illinois
92nd General Assembly
Legislation

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92_HB2308

 
                                               LRB9201101MWdv

 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  such  properties;  (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  such  other
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-                LRB9201101MWdv
 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 such loan 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.
 
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 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 such families
 7    and persons to developments shall be those established  under
 8    pursuant  to  the  rules  applicable to the assisted mortgage
 9    financing program  under  which  the  such  developments  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  mean  fees  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
 
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 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 such loan is in jeopardy of not being repaid, or that
 6        the proposed development for which the such loan 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 such limited-profit entity a  number  of  new
12        directors or persons, which number shall be sufficient to
13        constitute  a  voting  majority  of  the  such  board  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    Illinois General Not For Profit Corporation Act  of  1986  or
33    the  State  Housing  Act  of  1933  and  having  articles  of
34    incorporation  which,  in  addition  to other requirements of
 
                            -5-                LRB9201101MWdv
 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  such  loan  or  advance  is  in
28        jeopardy  of  not  being  repaid,  or  that  the proposed
29        development for which the such loan 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-                LRB9201101MWdv
 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 such corporation
 8        a   number  of  new  directors,  which  number  shall  be
 9        sufficient to constitute a majority of  the  such  board,
10        notwithstanding any other provisions of the such articles
11        of incorporation or of any other provisions of law; and
12             (6)  that  each  development of the such corporation
13        shall be operated exclusively  for  the  benefit  of  the
14        persons  who  are  housed  in the such development, which
15        shall include families or  persons  of  low  or  moderate
16        income  as  required  by  this  Act,  and  that  the such
17        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 such period, but shall not include any amount payable by
33    reason only of the maturity of a bond.
34        (q)  "Housing  related   commercial   facilities"   means
 
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 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-                LRB9201101MWdv
 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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