Public Act 096-0234
 
HB0264 Enrolled LRB096 03466 RLJ 13490 b

    AN ACT concerning urban development.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the
Illinois Urban Development Authority Act.
 
    Section 2. Findings. The General Assembly hereby
determines and declares that:
        (1) the economic burdens resulting from involuntary
    unemployment fall in part upon the State in the form of
    increased need for public assistance, reduced tax
    revenues, and increased resources devoted to crime
    prevention and incarceration and that the unemployed
    worker and his or her family may migrate outside the State
    to find work and such migration will reduce the tax
    revenues of local governments and the State of Illinois,
    thereby endangering their financial ability to support
    necessary governmental services for their remaining
    inhabitants;
        (2) the State has a responsibility to help create a
    favorable climate for new and improved job opportunities
    for all of its citizens, especially in areas with high
    economic distress, by encouraging the development of
    commercial and service businesses and industrial and
    manufacturing plants and creating job opportunities;
        (3) the State has a responsibility to increase and
    improve post-release employment opportunities for
    ex-offenders and reduce recidivism rates through the
    combined resources and expertise of providers of workforce
    development, supportive services, and private enterprises;
        (4) a lack of decent housing contributes to urban
    blight, crime, anti-social behavior, disease, a higher
    need for public assistance, reduced tax revenues, and the
    migration of workers and their families away from areas
    that fail to offer adequate, decent, affordable housing;
        (5) decent, affordable housing is a necessary
    ingredient of life affording each citizen basic human
    dignity, a sense of self worth, confidence, and a firm
    foundation upon which to build a family and educate
    children; and
        (6) in order to foster civic and neighborhood pride,
    citizens require access to educational institutions,
    recreation, parks and open spaces, entertainment and
    sports, a reliable transportation network, cultural
    facilities, and theaters.
    It is hereby declared to be the policy of the State of
Illinois, in the interest of promoting industrial, commercial,
residential, jobs, service, transportation, and facilities,
thereby reducing the evils attendant upon unemployment, crime,
and recidivism and enhancing the public health, safety, morals,
happiness, and general welfare of this State specifically by
making available through the Illinois Urban Development
Authority, funds for industrial projects, commercial projects,
and housing projects to a municipality with a municipal poverty
rate greater than 3% in excess of the statewide average.
 
    Section 3. Definitions. The following terms, whenever used
or referred to in this Act, shall have the following meanings,
except in such instances where the context may clearly indicate
otherwise:
    "Authority" means the Illinois Urban Development Authority
created by this Act.
    "Board" means the Illinois Urban Development Authority
Board of Directors.
    "Bonds" shall include bonds, notes, or other evidence of
indebtedness.
    "Commercial project" means any project, including but not
limited to one or more buildings and other structures,
improvements, machinery, and equipment whether or not on the
same site or sites now existing or hereafter acquired, suitable
for use by any retail or wholesale concern, distributorship, or
agency, any cultural facilities of a for-profit or
not-for-profit type including but not limited to educational,
theatrical, recreational and entertainment, sports facilities,
racetracks, stadiums, convention centers, exhibition halls,
arenas, opera houses and theaters, waterfront improvements,
swimming pools, boat storage, moorage, docking facilities,
restaurants, coliseums, sports training facilities, parking
facilities, terminals, hotels and motels, gymnasiums, medical
facilities, and port facilities.
    "Costs incurred in connection with the development,
construction, acquisition, or improvement of a project" means
the cost of purchase and construction of all lands and
improvements in connection with a project and equipment and
other property, rights, easements, and franchises acquired
that are deemed necessary for such construction; financing
charges; interest costs with respect to bonds, notes, and other
evidences of indebtedness of the Authority prior to and during
construction and for a period of 6 months thereafter;
engineering and legal expenses; the costs of plans,
specifications, surveys, and estimates of costs and other
expenses necessary or incident to determining the feasibility
or practicability of any project, together with such other
expenses as may be necessary or incident to the financing,
insuring, acquisition, and construction of a specific project
and the placing of the same in operation.
    "Financial aid" means the expenditure of Authority funds or
funds provided by the Authority through the issuance of its
revenue bonds, notes, or other evidences of indebtedness for
the development, construction, acquisition, or improvement of
a project.
    "Governmental agency" means any federal, State or local
governmental body, and any agency or instrumentality thereof,
corporate or otherwise.
    "Governor" means the Governor of the State of Illinois.
    "Housing project" or "residential project" includes a
specific work or improvement undertaken to provide dwelling
accommodations, including the acquisition, construction,
leasing, or rehabilitation of lands, buildings, and community
facilities and in connection therewith to provide nonhousing
facilities which are an integral part of a planned large-scale
project or new community.
    "Industrial project" means (1) a capital project,
including one or more buildings and other structures,
improvements, machinery, and equipment whether or not on the
same site or sites now existing or hereafter acquired, suitable
for use by any manufacturing, industrial, research,
transportation, or commercial enterprise including but not
limited to use as a factory, mill, processing plant, assembly
plant, packaging plant, fabricating plant, office building,
industrial distribution center, warehouse, repair, overhaul or
service facility, freight terminal, research facility, test
facility, railroad facility, solid waste and wastewater
treatment and disposal sites and other pollution control
facilities, resource or waste reduction, recovery, treatment
and disposal facilities, and including also the sites thereof
and other rights in land therefor whether improved or
unimproved, site preparation and landscaping and all
appurtenances and facilities incidental thereto such as
utilities, access roads, railroad sidings, truck docking and
similar facilities, parking facilities, dockage, wharfage,
railroad roadbed, track, trestle, depot, terminal, switching,
and signaling equipment or related equipment and other
improvements necessary or convenient thereto; or (2) any land,
buildings, machinery or equipment comprising an addition to or
renovation, rehabilitation or improvement of any existing
capital project.
    "Lease agreement" means an agreement whereby a project
acquired by the Authority by purchase, gift, or lease is leased
to any person or corporation that will use or cause the project
to be used as a project as defined in this Act upon terms
providing for lease rental payments at least sufficient to pay
when due all principal of and interest and premium, if any, on
any bonds, notes or other evidences of indebtedness of the
Authority issued with respect to such project, providing for
the maintenance, insurance, and operation of the project on
terms satisfactory to the Authority, and providing for
disposition of the project upon termination of the lease term,
including purchase options or abandonment of the premises, with
such other terms as may be deemed desirable by the Authority.
The Authority may, directly or indirectly, lease or otherwise
transfer property the Authority owns to another and such leased
property shall remain tax exempt.
    "Loan agreement" means any agreement pursuant to which the
Authority agrees to loan the proceeds of its bonds, notes, or
other evidences of indebtedness issued with respect to a
project to any person or corporation that will use or cause the
project to be used as a project as defined in this Act upon
terms providing for loan repayment installments at least
sufficient to pay when due all principal and interest and
premium, if any, on any bonds, notes, or other evidences of
indebtedness of the Authority issued with respect to the
project, providing for maintenance, insurance, and operation
of the project on terms satisfactory to the Authority and
providing for other matters as may be deemed advisable by the
Authority.
    "Municipal poverty rate" is the percentage of total
population of the municipality having income levels below the
poverty level as determined by the Authority based upon the
most recent data released by the United States Census Bureau
before the beginning of such calendar year.
    "Occupational license" means a license issued by the
Illinois Gaming Board to a person or entity to perform an
occupation which the Illinois Gaming Board has identified as
requiring a license to engage in riverboat, dockside, or
land-based gambling in Illinois.
    "Person" means any natural person, firm, partnership,
corporation, both domestic and foreign, company, association,
or joint stock association and includes any trustee, receiver,
assignee, or personal representative thereof.
    "Project" means an industrial, housing, residential,
commercial, or service project, or any combination thereof,
provided that all uses shall fall within one of those
categories. Any project, of any nature whatsoever, shall
automatically include all site improvements and new
construction involving sidewalks, sewers, solid waste and
wastewater treatment and disposal sites and other pollution
control facilities, resource or waste reduction, recovery,
treatment and disposal facilities, parks, open spaces,
wildlife sanctuaries, streets, highways, and runways.
    "Revenue bond" means any bond issued by the Authority under
the supervision of the Illinois Finance Authority, the
principal and interest of which are payable solely from
revenues or income derived from any project or activity of the
Authority.
 
    Section 4. Illinois Urban Development Authority. There is
hereby created a political subdivision, body politic and
corporate by the name of Illinois Urban Development Authority.
The exercise by the Authority of the powers conferred by law
shall be an essential public function. The governing powers of
the Authority shall be vested in a body consisting of 11
members appointed as follows: one member appointed by the Mayor
of the City of Chicago that has expertise, skill, and
experience in economic development; one member appointed by the
President of the Cook County Board that has expertise, skill,
and experience in economic development; 4 members appointed by
the Governor who are residents of a municipality, other than a
municipality with a population greater than 1,000,000, whose
municipal poverty rate is greater than 3% in excess of the
statewide average; 2 members appointed by the Governor that
have an expertise, skill, and experience in labor relations;
and 3 members appointed by the Governor that have an expertise,
skill, and experience operating a business that is certified by
the State of Illinois as a Disadvantaged Business Enterprise,
Minority Business Enterprise, or Women Business Enterprise.
    Six members shall constitute a quorum. However, when a
quorum of members of the Authority is physically present at the
meeting site, other Authority members may participate in and
act at any meeting through the use of a conference telephone or
other communications equipment by means of which all persons
participating in the meeting can hear each other. Participation
in such meeting shall constitute attendance and presence in
person at the meeting of the person or persons so
participating. The Chairman of the Authority shall be elected
by the Authority. All board members shall be persons of
recognized ability and experience in one or more of the
following areas: economic development, finance, banking,
industrial development, small business management, real estate
development, community development, venture finance,
construction, and labor relations.
    The terms of all members of the Authority shall begin 30
days after the effective date of this Act. Of the 11 members
first appointed pursuant to this Act, 4 shall serve until the
third Monday in January 2011, 4 shall serve until the third
Monday in January 2012, and 3 shall serve until the third
Monday in January 2013. All board members shall hold office for
a term of 4 years commencing the third Monday in January of the
year in which their term commences, except in case of an
appointment to fill a vacancy. In case of vacancy in the office
when the Senate is not in session, the Governor may make a
temporary appointment until the next meeting of the Senate when
he shall nominate such person to fill such office, and any
person so nominated who is confirmed by the Senate, shall hold
his office during the remainder of the term and until his
successor shall be appointed and qualified. If the Senate is
not in session, the Governor may make temporary appointments in
the case of vacancies.
    Members of the Authority shall not be entitled to
compensation for their services as members but shall be
entitled to reimbursement for all necessary expenses incurred
in connection with the performance of their duties as members.
The Governor may remove any member of the Authority in case of
incompetency, neglect of duty, or malfeasance in office, after
service on the member of a copy of the written charges against
the member and an opportunity to be publicly heard in person or
by counsel in the his or her defense upon not less than 10
days' notice.
    The members of the Authority shall appoint an Executive
Director, who must be a person knowledgeable in the areas of
financial markets and instruments and the financing of business
enterprises, to hold office at the pleasure of the members. The
Executive Director shall be the chief administrative and
operational officer of the Authority and shall direct and
supervise its administrative affairs and general management
and perform such other duties as may be prescribed from time to
time by the members and shall receive compensation fixed by the
Authority. The Executive Director or any committee of the
members may carry out any responsibilities of the members as
the members by resolution may delegate. The Executive Director
shall attend all meetings of the Authority; however, no action
of the Authority shall be invalid on account of the absence of
the Executive Director from a meeting. The Authority may engage
the services of such other agents and employees, including
attorneys, appraisers, engineers, accountants, credit
analysts, and other consultants, as it may deem advisable and
may prescribe their duties and fix their compensation.
    The Authority shall determine the municipal poverty rate
and the statewide average municipal poverty rate annually by
using the most recent data released by the United States Census
Bureau before the beginning of each calendar year. The
Authority shall have the sole and exclusive authority to
determine the municipal poverty rate and the statewide average
municipal poverty rate and to determine whether a
municipality's poverty rate is greater than 3% in excess of the
statewide average so long as the determination is based on the
most recent data released by the United States Census Bureau.
 
    Section 5. Conflicts of interest.
    (a) No member of the Authority or officer, agent, or
employee thereof shall, in the member's own name or in the name
of a nominee, be an officer, director, or hold an ownership
interest in any person, association, trust, corporation,
partnership, or other entity which is, in its own name or in
the name of a nominee, a party to a contract or agreement upon
which the member or officer, agent or employee may be called
upon to act or vote.
    (b) With respect to any direct or any indirect interest,
other than an interest prohibited in subsection (a), in a
contract or agreement upon which the member or officer, agent
or employee may be called upon to act or vote, a member of the
Authority or officer, agent, or employee thereof must disclose
the interest to the secretary of the Authority prior to the
taking of final action by the Authority concerning the contract
or agreement and shall disclose the nature and extent of the
interest and his or her acquisition thereof, which shall be
publicly acknowledged by the Authority and entered upon the
minutes of the Authority. If a member of the Authority or
officer, agent, or employee thereof holds such an interest then
the member shall refrain from any further official involvement
in regard to the contract or agreement, from voting on any
matter pertaining to the contract or agreement, and from
communicating with other members of the Authority or its
officers, agents, and employees concerning the contract or
agreement. Notwithstanding any other provision of law, any
contract or agreement entered into in conformity with this
subsection shall not be void or invalid by reason of the
interest described in this subsection, nor shall any person
disclosing an interest and refraining from further official
involvement as provided in this subsection be guilty of an
offense, be removed from office, or be subject to any other
penalty on account of the interest.
    (c) Any contract or agreement made in violation of
subsections (a) or (b) shall be null and void, whether or not
the contract performance has been authorized, and shall give
rise to no action against the Authority. No real estate to
which a member or employee of the Authority holds legal title
or in which a member or employee of the Authority has any
beneficial interest, including any interest in a land trust,
shall be purchased by the Authority or by a nonprofit
corporation or limited-profit entity for a development to be
financed under this Act.
    All members and employees of the Authority shall file
annually with the Authority a record of all real estate in this
State to which the member or employee holds legal title or in
which the member or employee has any beneficial interest,
including any interest in a land trust. In the event it is
later disclosed that the Authority has purchased real estate in
which a member or employee had an interest, that purchase shall
be voidable by the Authority and the member or employee
involved shall be disqualified from membership in or employment
by the Authority.
 
    Section 6. Records and reports of the Authority. The
secretary shall keep a record of the proceedings of the
Authority. The treasurer of the Authority shall be custodian of
all Authority funds, and shall be bonded in such amount as the
other members of the Authority may designate. The accounts and
bonds of the Authority shall be set up and maintained in a
manner approved by the Auditor General, and the Authority shall
file with the Auditor General a certified annual report within
120 days after the close of its fiscal year. The Authority
shall also file with the Governor, the Secretary of the Senate,
the Clerk of the House of Representatives, and the Legislative
Research Unit, by March 1 of each year, a written report
covering its activities and any activities of any
instrumentality corporation established under this Act for the
previous fiscal year. In its report to be filed by March 1,
2010, the Authority shall present an economic development
strategy for all municipalities with a municipal poverty rate
greater than 3% in excess of the statewide average, the
Authority shall make modifications in the economic development
strategy for the 4 years beginning on the next ensuing July 1,
to reflect changes in economic conditions or other factors,
including the policies of the Authority and the State of
Illinois. It shall also present an economic development
strategy for the fifth year beginning after the next ensuing
July 1. The strategy shall recommend specific legislative and
administrative action by the State, the Authority, units of
local government, or other governmental agencies. These
recommendations may include, but are not limited to, new
programs, modifications to existing programs, credit
enhancements for bonds issued by the Authority, and amendments
to this Act. When filed, the report shall be a public record
and open for inspection at the offices of the Authority during
normal business hours.
 
    Section 7. Approval of official acts. All official acts of
the Authority shall require the approval of at least 6 members.
 
    Section 8. Powers of the Authority.
    (a) The Authority possesses all the powers of a body
corporate necessary and convenient to accomplish the purposes
of this Act, including, without limitation, except as defined
in Section 9.1 of the Act, the following:
        (1) To enter into loans, contracts, agreements, and
    mortgages in any matter connected with any of its corporate
    purposes and to invest its funds.
        (2) To sue and be sued.
        (3) To employ agents and employees necessary to carry
    out its purposes.
        (4) To have and use a common seal and to alter the same
    at its discretion.
        (5) To adopt all needful ordinances, resolutions,
    by-laws, rules, and regulations for the conduct of its
    business and affairs and for the management and use of the
    projects developed, constructed, acquired, and improved in
    furtherance of its purposes.
        (6) To designate the fiscal year for the Authority.
        (7) To accept and expend appropriations.
        (8) To maintain an office or offices at such place as
    the Authority may designate.
        (9) To employ, either as regular employees or as
    independent contractors, such consultants, engineers,
    architects, accountants, attorneys, financial experts,
    construction experts and personnel, superintendents,
    managers, and other professional personnel as may be
    necessary in the judgment of the Authority and to fix their
    compensation.
        (10) To acquire, hold, lease, use, encumber, transfer,
    or dispose of real and personal property.
        (11) To enter into contracts of any kind and execute
    all instruments necessary or convenient with respect to its
    carrying out the powers in this Act to accomplish the
    purposes of the Authority.
        (12) To fix and revise from time to time and to charge
    and collect rates, rents, fees, or other charges for the
    use of facilities or for services rendered in connection
    with the facilities.
        (13) To borrow money from any source for any corporate
    purpose, including working capital for its operations,
    reserve funds, or the payment of interest, to mortgage,
    pledge, or otherwise encumber the property or funds of the
    Authority, and to contract with or engage the services of
    any person in connection with any financing, including
    financial institutions, issuers of letters of credit, or
    insurers.
        (14) To borrow money and issue revenue bonds, notes, or
    other evidences of indebtedness under the supervision of
    the Illinois Finance Authority, as set forth under Section
    825-13.5 of the Illinois Finance Authority Act.
        (15) To receive and accept from any source, private or
    public, contributions, gifts, or grants of money or
    property.
        (16) To make loans from proceeds or funds otherwise
    available to the extent necessary or appropriate to
    accomplish the purposes of the Authority.
        (17) To exercise all the corporate powers granted to
    Illinois corporations under the Business Corporation Act
    of 1983, except to the extent that any of these powers are
    inconsistent with those of a body politic and corporate of
    the State.
        (18) To have and exercise all powers and be subject to
    all duties usually incident to boards of directors of
    corporations.
        (19) To enter into intergovernmental agreements with
    the State of Illinois and the Illinois Finance Authority.
        (20) To do all things necessary or convenient to carry
    out the powers granted by this Act.
    (b) The Authority shall not issue any bonds relating to the
financing of a project located within the planning and
subdivision control jurisdiction of any municipality or county
unless notice, including a description of the proposed project
and the financing therefor, is submitted to the corporate
authorities of the municipality or, in the case of a proposed
project in an unincorporated area, to the county board.
    (c) If any of the powers set forth in this Act are
exercised within the jurisdictional limits of any
municipality, all ordinances of the municipality shall remain
in full force and effect and shall be controlling.
 
    Section 9. Revenue bonds.
    (a) The Authority shall have the continuing power to issue
revenue bonds, notes, or other evidences of indebtedness in an
aggregate amount not to exceed $500,000,000 for the purpose of
developing, constructing, acquiring, or improving projects,
including those established by business entities locating or
expanding property within the territorial jurisdiction of the
Authority, for entering into venture capital agreements with
businesses locating or expanding within the territorial
jurisdiction of the Authority, for acquiring and improving any
property necessary and useful in connection therewith, and for
the purposes of the Employee Ownership Assistance Act. The
bonds must be issued under the supervision of the Illinois
Finance Authority, as set forth under Section 825-13.5 of the
Illinois Finance Authority Act. For the purpose of evidencing
the obligations of the Authority to repay any money borrowed,
the Authority may, pursuant to resolution, from time to time
issue and dispose of its interest bearing revenue bonds, notes,
or other evidences of indebtedness and may also from time to
time issue and dispose of such bonds, notes, or other evidences
of indebtedness to refund, at maturity, at a redemption date or
in advance of either, any revenue bonds, notes, or other
evidences of indebtedness pursuant to redemption provisions or
at any time before maturity. All such revenue bonds, notes, or
other evidences of indebtedness shall be payable solely from
the revenues or income to be derived from loans made with
respect to projects, from the leasing or sale of the projects,
or from any other funds available to the Authority for such
purposes, including, when so provided by ordinance of the
Authority authorizing the issuance of revenue bonds or notes.
The revenue bonds, notes, or other evidences of indebtedness
may bear such date or dates, may mature at such time or times
not exceeding 35 years from their respective dates, may bear
interest at such rate or rates not exceeding the maximum rate
permitted by the Bond Authorization Act, may be in such form,
may carry such registration privileges, may be executed in such
manner, may be payable at such place or places, may be made
subject to redemption in such manner and upon such terms, with
or without premium as is stated on the face thereof, may be
authenticated in such manner, and may contain such terms and
covenants as may be provided by an applicable resolution.
    (b) The holder or holders of any revenue bonds, notes, or
other evidences of indebtedness issued by the Authority may
bring suits at law or proceedings in equity to compel the
performance and observance by any corporation or person or by
the Authority or any of its agents or employees of any contract
or covenant made with the holders of such revenue bonds, notes,
or other evidences of indebtedness, to compel such corporation,
person, the Authority, and any of its agents or employees to
perform any duties required to be performed for the benefit of
the holders of any such revenue bonds, notes, or other
evidences of indebtedness by the provision of the resolution
authorizing their issuance and to enjoin such corporation,
person, the Authority, and any of its agents or employees from
taking any action in conflict with any such contract or
covenant.
    (c) If the Authority fails to pay the principal of or
interest on any of the revenue bonds or premium, if any, as the
same become due, a civil action to compel payment may be
instituted in the appropriate circuit court by the holder or
holders of the revenue bonds on which such default of payment
exists or by an indenture trustee acting on behalf of such
holders. Delivery of a summons and a copy of the complaint to
the Chairperson of the Board shall constitute sufficient
service to give the circuit court jurisdiction of the subject
matter of such a suit and jurisdiction over the Authority and
its officers named as defendants for the purpose of compelling
such payment. Any case, controversy, or cause of action
concerning the validity of this Act relates to the revenue of
the State of Illinois.
    (d) Notwithstanding the form and tenor of any such revenue
bonds, notes, or other evidences of indebtedness and in the
absence of any express recital on the face of any such revenue
bond, note, or other evidence of indebtedness that it is
nonnegotiable, all such revenue bonds, notes, and other
evidences of indebtedness shall be negotiable instruments.
Pending the preparation and execution of any such revenue
bonds, notes, or other evidences of indebtedness, temporary
revenue bonds, notes, or evidences of indebtedness may be
issued as provided by ordinance.
    (e) To secure the payment of any or all of such revenue
bonds, notes, or other evidences of indebtedness, the revenues
to be received by the Authority from a lease agreement or loan
agreement shall be pledged, and, for the purpose of setting
forth the covenants and undertakings of the Authority in
connection with the issuance thereof and the issuance of any
additional revenue bonds, notes, or other evidences of
indebtedness payable from such revenues, income, or other funds
to be derived from projects, the Authority may execute and
deliver a mortgage or trust agreement. A remedy for any breach
or default of the terms of any such mortgage or trust agreement
by the Authority may be by mandamus proceedings in the
appropriate circuit court to compel the performance and
compliance therewith, but the trust agreement may prescribe by
whom or on whose behalf the action may be instituted.
    (f) The revenue bonds or notes shall be secured as provided
in the authorizing ordinance which may, notwithstanding any
other provision of this Act, include in addition to any other
security a specific pledge or assignment of and lien on or
security interest in any or all revenues or money of the
Authority from whatever source which may by law be used for
debt service purposes and a specific pledge or assignment of
and lien on or security interest in any funds or accounts
established or provided for by ordinance of the Authority
authorizing the issuance of such revenue bonds or notes.
    (g) The State of Illinois pledges to and agrees with the
holders of the revenue bonds and notes of the Authority issued
pursuant to this Section that the State will not limit or alter
the rights and powers vested in the Authority by this Act so as
to impair the terms of any contract made by the Authority with
such holders or in any way impair the rights and remedies of
such holders until such revenue bonds and notes, together with
interest thereon, with interest on any unpaid installments of
interest, and all costs and expenses in connection with any
action or proceedings by or on behalf of such holders, are
fully met and discharged. The Authority is authorized to
include these pledges and agreements of the State in any
contract with the holders of revenue bonds or notes issued
pursuant to this Section.
    (h) Under no circumstances shall any bonds issued by the
Authority or any other obligation of the Authority be or become
an indebtedness or obligation of the State of Illinois or of
any other political subdivision of or municipality within the
State, nor shall any such bond or obligation be or become an
indebtedness of the Authority within the purview of any
constitutional limitation or provision, and it shall be plainly
stated on the face of each bond that it does not constitute
such an indebtedness or obligation but is payable solely from
the revenues or income as aforesaid.
    (i) For the purpose of financing a project pursuant to this
Act, the Authority shall be authorized to apply for an
allocation of tax-exempt bond financing authorization provided
by Section 11143 of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users (SAFETEA-LU),
Public Law 109-59, as well as financing available under any
other federal law or program.
 
    Section 9.1. Limitation.
    (a) The Authority may issue its bonds or notes (including
refunding bond or notes) only if the financed project is
situated within the territorial jurisdiction of a municipality
with a municipal poverty rate greater than 3% in excess of the
statewide average.
    (b) If a project is situated in 2 or more municipalities
where one municipality has a municipal poverty rate greater
than 3% in excess of the statewide average and the other does
not, the project shall be deemed to be within the municipality
with a municipal poverty rate greater than 3% in excess of the
statewide average.
    (c) Not less than 30 days prior to the commitment to issue
bonds, notes, or other evidences of indebtedness for the
purpose of developing, constructing, acquiring, or improving
housing or residential projects, as defined in this Act, the
Authority shall provide notice to the Executive Director of the
Illinois Housing Development Authority. Within 30 days after
the notice is provided, the Illinois Housing Development
Authority shall, in writing, either express interest in
financing the project or notify the Authority that it is not
interested in providing financing and that the Authority may
finance the project or seek alternative financing.
 
    Section 10. Legality for investment. Any financial
institution, investment company, insurance company, or
association and any personal representative, guardian,
trustee, or other fiduciary, may legally invest any moneys
belonging to them or within their control in any bonds issued
by the Authority.
 
    Section 11. Tax exemption. The Authority shall not be
required to pay any taxes or assessments of any kind whatsoever
and its bonds, their transfer, the interest payable on them,
and any income derived from them shall be exempt at the time of
issuance and at all times from every kind and nature of
taxation by this State or by any of its political subdivisions,
municipal corporations, or public agencies of any kind, except
for estate, transfer, and inheritance taxes as provided in
Section 12.
    For purposes of Section 250 of the Illinois Income Tax Act,
the exemption of the income from bonds issued by the Authority
shall terminate after all of the bonds have been paid. The
amount of such income that shall be added and then subtracted
on the Illinois income tax return of a taxpayer, under Section
203 of the Illinois Income Tax Act, from federal adjusted gross
income or federal taxable income in computing Illinois base
income shall be the interest net of any bond premium
amortization.
 
    Section 12. Additional powers and duties.
    (a) The Authority may, but need not, acquire title to any
project with respect to which it exercises its authority.
    (b) The Authority shall have the power to enter into
intergovernmental agreements with the State of Illinois, the
United States government and any agency or instrumentality of
the United States, any unit of local government, or any other
unit of government to the extent allowed by Article VII,
Section 10 of the Illinois Constitution and the
Intergovernmental Cooperation Act.
    (c) The Authority shall have the power to share employees
with other units of government, including agencies of the
United States, agencies of the State of Illinois, and agencies
or personnel of any unit of local government.
    (d) The Authority shall have the power to exercise powers
and issue bonds as if it were a municipality so authorized in
Divisions 12.1, 74, 74.1, 74.3, 74.4, and 74.5 of Article 11 of
the Illinois Municipal Code.
 
    Section 13. Fees and charges. The Authority may collect
fees and charges in connection with its loans, commitments, and
servicing and may provide technical assistance in the
development of the region.
 
    Section 14. Designation of depository. The Authority shall
biennially designate a national or State bank or banks as
depositories of its money. Those depositories shall be
designated only within the State and upon condition that bonds
approved as to form and surety by the Authority and at least
equal in amount to the maximum sum expected to be on deposit at
any one time shall be first given by the depositories to the
Authority, those bonds to be conditioned for the safekeeping
and prompt repayment of the deposits. When any of the funds of
the Authority shall be deposited by the treasurer in any such
depository, the treasurer and the sureties on his official bond
shall, to that extent, be exempt from liability for the loss of
any of the deposited funds by reason of the failure,
bankruptcy, or any other act or default of the depository.
However, the Authority may accept assignments of collateral by
any depository of its funds to secure the deposits to the same
extent and conditioned in the same manner as assignments of
collateral are permitted by law to secure deposits of the funds
of any city.
 
    Section 90. The Illinois Finance Authority Act is amended
by adding Section 825-13.5 as follows:
 
    (20 ILCS 3501/825-13.5 new)
    Sec. 825-13.5. Supervision of the Illinois Urban
Development Authority bond issuances.
    (a) All bond issuances of the Illinois Urban Development
Authority are subject to supervision, management, control, and
approval of the Authority.
    (b) All bonds issued by the Illinois Urban Development
Authority under the supervision of the Authority are subject to
the terms and conditions that are set forth in the Illinois
Urban Development Authority Act.
    (c) The bonds issued by the Illinois Urban Development
Authority under the supervision of the Authority are not debts
of the Authority or of the State.