102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3693

 

Introduced 2/22/2021, by Rep. Jehan Gordon-Booth

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Creates the Municipal Land Bank Authorities Division in the Illinois Municipal Code. Allows a municipality to create a land bank authority to use available resources to facilitate the return of vacant, abandoned, and tax-delinquent properties to productive use in order to combat community deterioration, create economic growth, and stabilize the housing and job market. Provides that the land bank authority is an agency of and funded by the municipality and that the lank bank authority's board of directors are accountable to the city council of the municipality. Contains provisions relating to the appointment of members to the land bank authority's board of directors and operation of the land bank authority. Allows the hiring of an executive director and other staff. Provides that the municipality shall defend and indemnify the land bank authority's board of directors under specified circumstances.


LRB102 13259 AWJ 18603 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3693LRB102 13259 AWJ 18603 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5adding Division 15.5 in Article 11 as follows:
 
6    (65 ILCS 5/Div. 15.5 heading new)
7
Division 15.5. Municipal Land Bank Authority

 
8    (65 ILCS 5/11-15.5-5 new)
9    Sec. 11-15.5-5. Purpose. The purpose of this Division is
10to allow a municipality to create a land bank authority that
11will use available resources to facilitate the return of
12vacant, abandoned, and tax-delinquent properties to productive
13use thereby combating community deterioration, creating
14economic growth, and stabilizing the housing and job market.
15    The land bank authority will acquire, hold, and transfer
16interest in real property throughout the municipality as
17approved by the board of directors of the authority for the
18following purposes: to promote redevelopment and reuse of
19vacant, abandoned, or tax-delinquent properties; support
20targeted efforts to stabilize neighborhoods; and stimulate
21residential, commercial, and industrial development all in
22ways that are consistent with goals and priorities established

 

 

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1by this Division, local government partners, and other
2community stakeholders.
 
3    (65 ILCS 5/11-15.5-10 new)
4    Sec. 11-15.5-10. Definitions. As used in this Division:
5    "Authority" means the land bank authority created by a
6municipality.
7    "Board of directors" means the board of directors of a
8land bank authority.
9    "City council" means the city council or board of trustees
10of a municipality that may establish or has established a land
11bank.
12    "Director" means the executive director of a land bank
13authority.
14    "Fiscal year" means the fiscal year of the land bank,
15which is the same as the municipality's fiscal year.
16    "Good cause" includes inefficiency, neglect of duty,
17malfeasance, or any cause which renders a director or member
18of the board of directors unfit for the position or unable to
19perform the duties of the position or the scope of the work.
20    "Land bank" means a land bank authority.
21    "Mayor" means the mayor or village president of a
22municipality that has created a land bank.
23    "Member" means a member of the board of directors.
24    "Municipality" or "municipal" means the municipality that
25may establish or has established a land bank.

 

 

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1    "Person" means any individual, corporation, limited
2liability corporation, organization, government, governmental
3subdivision or agency, business trust, estate, trust,
4partnership, association, and any other legal entity.
5    "Real property" means all land and the buildings on the
6land, all things permanently attached to land or to the
7buildings on the land, and any interest existing in, issuing
8out of, or dependent upon land or the buildings on the land.
 
9    (65 ILCS 5/11-15.5-15 new)
10    Sec. 11-15.5-15. Establishment. A municipality may, by
11ordinance, establish a land bank authority as an agency of the
12municipality. All personnel, facilities, equipment, and
13supplies within the land bank shall be governed by a board of
14directors as provided in this Division. The board of directors
15shall be accountable to the city council. The land bank shall
16be funded by the municipality.
 
17    (65 ILCS 5/11-15.5-20 new)
18    Sec. 11-15.5-20. Principal office. The principal office of
19the land bank shall be at a location within the municipality,
20as determined by the board of directors.
 
21    (65 ILCS 5/11-15.5-25 new)
22    Sec. 11-15.5-25. Title to land bank assets. Except as
23otherwise provided in this Division, the municipality shall

 

 

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1hold title to all real property controlled by the land bank.
 
2    (65 ILCS 5/11-15.5-30 new)
3    Sec. 11-15.5-30. Tax-exempt status. The activities of the
4land bank are governmental functions carried out by an
5instrumentality or political subdivision of the State as
6described in Section 115 of Title 26 of the United States
7Internal Revenue Code, or any corresponding provisions of any
8future tax code. The activities of the land bank are
9governmental functions carried out by a political subdivision
10of the State, exempt to the extent provided under Illinois law
11from taxation by this State, including, but not limited to, ad
12valorem property tax exemption under the Property Tax Code.
 
13    (65 ILCS 5/11-15.5-35 new)
14    Sec. 11-15.5-35. Waiver of special assessments. Upon the
15request of the land bank and for the purposes of fostering the
16goals and objectives of the land bank, the municipality, as
17permitted by law, may extinguish special assessments levied by
18it prior to the date of acquisition by the land bank against
19real property controlled by the land bank, and may seek to
20exempt real property controlled by the land bank from the
21imposition of special assessments.
 
22    (65 ILCS 5/11-15.5-40 new)
23    Sec. 11-15.5-40. Compliance with law. The land bank shall

 

 

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1comply with all applicable federal and State laws, rules,
2regulations, and orders.
 
3    (65 ILCS 5/11-15.5-45 new)
4    Sec. 11-15.5-45. No third-party beneficiaries. Except as
5otherwise provided, this Division does not create for any
6person, other than the municipality, and is not intended to
7create by implication or otherwise, a direct or indirect
8benefit, obligation, duty, promise, right to be indemnified
9(such as contractually, legally, equitably, or by
10implication), right to be subrogated to the municipality's
11rights under this Division, or any other right or benefit.
 
12    (65 ILCS 5/11-15.5-50 new)
13    Sec. 11-15.5-50. Board of directors. The land bank shall
14be governed by a board of directors that shall be appointed by
15the mayor, subject to approval by the city council, no later
16than 45 days after the effective date of the ordinance
17creating the authority. Members of the board of directors
18shall be residents of the municipality.
 
19    (65 ILCS 5/11-15.5-55 new)
20    Sec. 11-15.5-55. Appointment of members. Candidates for
21the board of directors shall be selected from the following
22categories:
23        (1) the mayor to serve as an ex officio member with

 

 

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1    voting rights. The ex officio member shall serve as a
2    liaison between the city council and the board of
3    directors;
4        (2) 2 city council members, not including the mayor;
5        (3) one representative from the municipality as
6    recommended by the mayor;
7        (4) one representative from the municipality's
8    economic development agency, if any;
9        (5) one representative from a community development
10    finance institution;
11        (6) one representative from the banking community;
12        (7) one representative from a local or State
13    association of realtors;
14        (8) one representative from the non-profit housing
15    development community;
16        (9) one representative from the commercial or
17    industrial development community;
18        (10) one representative from a community organization
19    in the municipality, if any;
20        (11) one representative from the legal community; and
21        (12) one representative with commercial retail
22    development experience.
23    If an initial appointment is not made under paragraph (4)
24or (10) because there is not a municipal economic development
25agency or community organization in the municipality, an
26appointment for those positions, if any, shall be made as

 

 

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1provided in subsection (b) of Section 11-15.5-75.
 
2    (65 ILCS 5/11-15.5-60 new)
3    Sec. 11-15.5-60. Term of office.
4    (a) Except as otherwise provided in this Section or
5Section 11-15.5-75, the members of the board of directors
6shall be appointed for a term of 3 years.
7    (b) The ex officio member shall serve until the expiration
8of his or her term as mayor.
9    (c) The initial members, except as provided in subsection
10(b), shall serve terms as follows as determined by lot at the
11board of directors first meeting next following all member
12appointments:
13        (1) Three of the members shall serve a term that
14    expires on the January 1 next following the establishment
15    of the land bank, except that these members shall serve
16    until the 2nd January 1 next following the establishment
17    of the land bank if the land bank was established after
18    July 1.
19        (2) Three of the members shall serve a term that
20    expires on the January 1 next following the expiration of
21    the members' terms under paragraph (1).
22        (3) Two of the members shall serve a term that expires
23    on the January, 1 next following the expiration of the
24    members' terms under paragraph (2).
25        (4) Members appointed under paragraph (4) or (10) of

 

 

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1    Section 11-15.5-55, if any, shall serve a term that
2    expires on the January 1 next following the expiration of
3    the members' terms under paragraph (3).
4    (d) After the initial appointed terms under subsection
5(c), each member, other than the ex officio member, shall
6serve a term of 3 years.
7    (e) A member shall serve until a successor is appointed
8and has qualified.
9    (f) A member who is appointed to fill a vacancy, other than
10a vacancy caused by the expiration of the predecessor's term,
11shall serve until the expiration of his or her predecessor's
12term.
13    (g) Other than the ex officio member, a member may not
14serve more than 2 consecutive full terms.
 
15    (65 ILCS 5/11-15.5-65 new)
16    Sec. 11-15.5-65. Officers.
17    (a) The board of directors shall select an initial
18chairperson from among the initial members. The chairperson
19shall serve a 2-year term as chairperson and, thereafter, the
20board of directors shall annually elect a chairperson from
21among its members. A member may be elected to serve successive
22terms as chairperson.
23    The chairperson shall preside at meetings of the board of
24directors and is entitled to vote on all matters before the
25board of directors.

 

 

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1    (b) The board of directors may appoint from its members a
2member to serve as the land bank secretary and appoint
3additional officers from its members as it may deem
4appropriate.
 
5    (65 ILCS 5/11-15.5-70 new)
6    Sec. 11-15.5-70. Removal. A member may be removed for good
7cause by the mayor prior to the expiration of the member's term
8of appointment. The mayor shall provide written notice to that
9member, the director, and the city of council of the removal of
10that member from the board of directors. The notice shall
11state the specific grounds which constitute cause for removal.
12The member, in receipt of a notice, may request to appear
13before the city council and present reasons in support of his
14or her retention. Thereafter, the city council shall vote upon
15whether there are sufficient grounds to remove that member
16from office. The mayor shall notify the member of the final
17action of the city council.
 
18    (65 ILCS 5/11-15.5-75 new)
19    Sec. 11-15.5-75. Vacancies.
20    (a) Any vacancy on the board of directors caused by death,
21resignation, disqualification, or removal shall be filled by
22the mayor as soon as practicable, but not to exceed 60 days
23following the occurrence of the vacancy. The vacancy shall be
24filled for the remainder of the unexpired term in the same

 

 

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1manner as the original appointment. Expired terms shall be
2filled by the mayor within 60 days of the term's expiration in
3the same manner as the original appointment.
4    (b) If an initial appointment is not made under paragraph
5(4) or (10) of Section 11-15.5-55, that position is considered
6vacant and an appointment may be made by the mayor to that
7position when a municipal economic development agency or
8community organization in the municipality is established. The
9person appointed to fill the vacancy shall serve until the
10expiration of the initial term under paragraph (4) or (10) of
11subsection (c) of Section 11-15.5-60 or the expiration of a
12subsequent 3-year term if the initial term would have already
13expired.
 
14    (65 ILCS 5/11-15.5-80 new)
15    Sec. 11-15.5-80. Meetings. The board of directors shall
16conduct its first meeting no later than 60 days after the
17appointment of the board of directors. The place, date, and
18time of the land bank meetings shall be determined at the
19discretion of the board of directors. All meetings of the
20board of directors shall comply with the Open Meetings Act.
 
21    (65 ILCS 5/11-15.5-85 new)
22    Sec. 11-15.5-85. Initial bylaws and policies and
23procedures. The board of directors shall adopt bylaws and
24policies and procedures consistent with the provisions of this

 

 

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1Division no later than 120 days after the first meeting of the
2board of directors.
 
3    (65 ILCS 5/11-15.5-90 new)
4    Sec. 11-15.5-90. Quorum; voting. A quorum is necessary for
5the transaction of any business by the board of directors. A
6majority of the members of the board of directors shall
7constitute a quorum. The board of directors shall act by a
8majority vote of the members at a meeting at which a quorum is
9present, except as otherwise provided in this Division.
10Presence for both quorum and voting at the land bank shall be
11articulated by the board of directors in its bylaws or
12procedures in a manner consistent with the Open Meetings Act.
 
13    (65 ILCS 5/11-15.5-95 new)
14    Sec. 11-15.5-95. Records of meetings. Minutes of all
15meetings of the board of directors and its committees shall be
16made and maintained as required by the Open Meetings Act.
 
17    (65 ILCS 5/11-15.5-100 new)
18    Sec. 11-15.5-100. Board of directors responsibilities. The
19board of directors shall:
20        (1) ensure that all personnel matters are conducted
21    free from any political interference and in accordance
22    with all applicable laws;
23        (2) ensure that all operations, including contractual

 

 

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1    matters, are conducted free from any political
2    interference; and
3        (3) ensure efficiency in service delivery and sound
4    fiscal management of all aspects of the land bank
5    including the collection of all revenues from all sources.
 
6    (65 ILCS 5/11-15.5-105 new)
7    Sec. 11-15.5-105. Board of directors actions. The board of
8directors shall do all of the following:
9        (1) adopt, amend, or repeal rules and policies and
10    procedures governing the board of directors and its
11    actions and meetings and adopt, amend, or repeal policies
12    and procedures to implement day-to-day operation of the
13    land bank, including policies governing any staff of the
14    land bank;
15        (2) elect additional officers, including, but not
16    limited to, initial officers who shall be elected at the
17    first meeting of the board of directors in accordance with
18    the bylaws;
19        (3) provide for a system of accounting;
20        (4) adopt or amend the land bank's budget to submit
21    annually to the municipality for approval and adoption in
22    a time frame mandated by the municipality's treasurer or
23    other financial officer;
24        (5) adopt, amend, or repeal policies and procedures
25    for contracting and procurement;

 

 

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1        (6) commission, collect, and receive data from public,
2    private, professional, and volunteer sources to compile an
3    inventory and analysis of desirable properties for
4    acquisition;
5        (7) establish banking arrangements for the land bank;
6    and
7        (8) organize and reorganize the executive,
8    administrative, clerical, and other departments of the
9    land bank and fix the duties, powers, and compensation of
10    all employees, agents, and consultants of the land bank
11    hired pursuant to Section 11-15.5-125.
 
12    (65 ILCS 5/11-15.5-110 new)
13    Sec. 11-15.5-110. Fiduciary duty. The members of the board
14of directors are under a fiduciary duty to conduct the
15activities and affairs of the land bank in the best interests
16of the residents of the municipality, including the
17safekeeping and use of all land bank moneys and assets. The
18members of the board of directors shall discharge their duties
19in good faith with the care an ordinarily prudent person in a
20like position would exercise under similar circumstances.
 
21    (65 ILCS 5/11-15.5-115 new)
22    Sec. 11-15.5-115. Compensation. The members of the board
23of directors shall receive no compensation for the performance
24of their duties. A member may engage in private or public

 

 

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1employment or in a profession or business, except to the
2extent prohibited by law or municipal ordinance. The land bank
3may reimburse members of the board of directors for actual and
4necessary expenses incurred in the discharge of their official
5duties as provided by the board of directors.
 
6    (65 ILCS 5/11-15.5-120 new)
7    Sec. 11-15.5-120. Executive director. The board of
8directors shall retain the professional services of an
9individual to perform the duties of an executive director on a
10contractual basis with the advice and consent of the mayor.
11The director is not an employee of the land bank or
12municipality. The director shall administer the land bank in
13accordance with the operating budget approved by the
14municipality, general policy guidelines established by the
15board of directors, other applicable governmental procedures
16and policies, and this Division. The director is responsible
17for the day-to-day operations of the land bank; the control,
18management, and oversight of the land bank's functions; and
19supervision of all land bank contractual agreements. All terms
20and conditions of the director's service shall be specified in
21a written contract between the director and the board of
22directors. The director may be removed by the mayor or the
23board of directors, for good cause, prior to the expiration of
24the director's contract. The board of directors may delegate
25to the director any powers or duties it considers proper under

 

 

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1such terms, conditions, and to the extent that the board of
2directors may specify.
 
3    (65 ILCS 5/11-15.5-125 new)
4    Sec. 11-15.5-125. Staffing services.
5    (a) The board of directors may approve contracts for
6staffing as requested by the director that are deemed
7necessary to carry out the duties and responsibilities of the
8land bank and in accordance with the policies and procedures
9established by the board of directors. Such staff shall be
10retained pursuant to contracts entered into in accordance with
11the procurement rules established by the board of directors.
12    (b) If the board of directors elects to have staff, staff
13employed by the board of directors for the land bank not
14otherwise retained through the board of directors' procurement
15rules shall be recruited or employed through the municipality
16employment plan, if any, and are municipal employees.
 
17    (65 ILCS 5/11-15.5-130 new)
18    Sec. 11-15.5-130. Ethics and oversight. The land bank and
19its director, board of directors, employees, and contractors
20are subject to municipal ethics rules or ordinances and
21municipal ethics officers, if any.
 
22    (65 ILCS 5/11-15.5-135 new)
23    Sec. 11-15.5-135. Indemnification.

 

 

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1    (a) Except as otherwise provided in this Section, the
2municipality shall defend and indemnify the land bank and its
3board members, officers, and employees from all claims or
4judgments arising out of their activities as board members,
5officers, or employees for all negligence claims and claims or
6judgments arising out of land bank activities performed on
7behalf of the municipality.
8    (b) The municipality is not obligated to indemnify the
9land bank or its members for:
10        (1) Punitive damages or liability arising out of
11    conduct which is based upon willful or wanton conduct.
12        (2) Conduct which is outside of the scope of the land
13    bank's authority.
14        (3) A settlement or judgment in which the municipality
15    did not participate.
16        (4) The defense of any criminal or disciplinary
17    proceeding.
18    (c) To be eligible for defense and indemnification, the
19land bank or its board members, officers, or employees shall:
20        (1) notify, within 5 days of receipt, the city council
21    and the State's Attorney's Office in the county, or one of
22    the counties, in which the municipality is located of any
23    claim made against the board member, officer, or employee
24    or land bank and deliver all written demands, complaints,
25    and other legal papers received by the practitioner with
26    respect to such claim to the city council;

 

 

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1        (2) cooperate with the State's Attorney's Office in
2    the investigation and defense of any claim against the
3    municipality or any board member, officer, or employee,
4    including, but not limited to, preparing for and attending
5    depositions, hearings, and trials and otherwise assisting
6    in securing and giving evidence; and
7        (3) promptly notify the city council and the State's
8    Attorney's Office of any change in the member's address or
9    telephone number.
10    (d) All actions shall be defended by the State's Attorney
11in the county in which the municipality is located. If the
12municipality is located in more than one county, the State's
13Attorney notified under paragraph (1) of subsection (c) shall
14defend the action unless the State's Attorney from another
15county in which the municipally is located agrees that he or
16she will defend the action. Decisions to settle indemnified
17claims shall be made by the municipality or the State's
18Attorney's Office, as delegated by the municipality, and shall
19not require the consent of the indemnified member, officer, or
20employee. If a board member, officer, or employee declines
21representation by the State's Attorney's Office, the
22municipality shall have no obligation to defend or indemnify
23the member.
 
24    (65 ILCS 5/11-15.5-140 new)
25    Sec. 11-15.5-140. General powers. The land bank has the

 

 

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1authority to do all things necessary or convenient to
2implement the purposes, objectives, and provisions of this
3Division or the purposes, objectives, and powers granted to
4the land bank by any federal, state, or local government unit
5consistent with the municipality's annual budget, including,
6but not limited to, the following:
7        (1) to adopt, amend, and repeal bylaws for the
8    regulation of its affairs and the conduct of its business;
9        (2) to acquire by purchase, donation, or other
10    transfers and to hold, lease, manage, and dispose of real
11    property of every kind and character, or any interest
12    therein, in furtherance of the public purposes of the land
13    bank;
14        (3) to discharge and extinguish real property taxes
15    owed to the municipality, State, or unit of local
16    government pursuant to an agreement with the municipality,
17    State, or unit of local government that encumber real
18    property owned by the municipality through the land bank,
19    as permitted by the Property Tax Code or other applicable
20    law;
21        (4) to pay any tax or special assessment due on real
22    property acquired or owned by the land bank;
23        (5) to acquire, accept, or retain equitable interests,
24    security interests, or other interests in real property or
25    other fixtures by loan agreement, note, mortgage, deed to
26    secure debt, trust deed, security agreement, assignment,

 

 

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1    pledge, conveyance, contract, lien, or other consensual
2    transfer in order to secure the repayment of any moneys
3    loaned or credit extended by the land bank;
4        (6) borrow money from private lenders, from cities or
5    counties, from the State or from federal government funds,
6    subject to the approval of the city council, to further or
7    carry out the land bank's public purpose by executing
8    leases, trust indentures, trust agreements, agreements for
9    the sale notes, loan agreements, mortgages, deeds to
10    secure debt, trust deeds, security agreements,
11    assignments, and other agreements or instruments as may be
12    necessary or desirable, in the judgment of the land bank,
13    to evidence and to provide security for the borrowing;
14        (7) to make application directly or indirectly to any
15    federal, state, municipal, or local unit of government or
16    agency or to any other source, whether public or private,
17    for loans, grants, gifts, guarantees, labor, or other aid
18    or financial assistance in furtherance of the land bank's
19    public purpose and to accept and use the same upon terms
20    and conditions as are prescribed by the federal, state,
21    municipal, or local unit of government, agency, or other
22    source;
23        (8) to enter into agreements with the federal
24    government or any agency of the federal government to use
25    the facilities or services of the federal government or
26    agency in order to further or carry out the public

 

 

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1    purposes of the land bank;
2        (9) to extend credit or make loans to any person,
3    subject to limitations established by the city council,
4    for the costs of land bank projects which credit or loans
5    may be evidenced or secured by loan agreements, notes,
6    mortgages, deeds to secure debt, trust deeds, security
7    agreements, assignments, or other instruments or by
8    rentals, revenues, fees, or charges, upon terms and
9    conditions as the land bank shall determine to be
10    reasonable in connection with such extension of credit or
11    loans, including provision for the establishment and
12    maintenance of reserve funds, and, in the exercise of
13    powers in connection with a land bank project, the land
14    bank may require the inclusion in a loan agreement, note,
15    mortgage, deed to secure debt, trust deed, security
16    agreement, assignment, or other instrument such provisions
17    or requirements, including but not limited to: guarantee
18    an obligation, insurance, construction, use, operation,
19    maintenance, and financing and other terms and conditions
20    as the land bank may deem necessary or desirable;
21        (10) as security for repayment of any note, or other
22    obligations of the land bank, to pledge, mortgage, convey,
23    assign, hypothecate, or otherwise encumber any property of
24    the land bank, including, but not limited to, real
25    property, fixtures, and revenues or other funds, and to
26    execute any lease, trust indenture, trust agreement,

 

 

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1    agreement for the sale of the land bank's notes or other
2    obligations, loan agreement, mortgage, deed to secure
3    debt, trust deed, security agreement, assignment, or other
4    agreement or instrument as may be necessary or desirable,
5    in the judgment of the land bank, to secure any notes or
6    other obligations, which instruments or agreements may
7    provide for foreclosure or forced sale of any real
8    property of the land bank upon default in any obligation
9    of the land bank, either in payment of principal, premium,
10    or interest or in the performance of a term or condition
11    contained in the agreement or instrument;
12        (11) to receive and administer gifts, grants, and
13    bequests of money and real property consistent with the
14    purpose of the land bank;
15        (12) to use any real property or fixtures, or any
16    interest in real property or fixtures, to rent, license,
17    or lease the real property to or from others or make
18    contracts with respect to the use of the real property or
19    fixtures, or to sell, lease, exchange, transfer, assign,
20    pledge, or otherwise dispose of or grant options for the
21    real property in any manner as it deems to be in the best
22    interests of the land bank and the public purpose;
23        (13) to procure insurance or guarantees from the State
24    or federal government of the payments of any debts or
25    parts incurred by the land bank and to pay premiums in
26    connection with the insurance or guarantees;

 

 

HB3693- 22 -LRB102 13259 AWJ 18603 b

1        (14) to procure, if required, insurance against losses
2    in connection with the real property, assets, or
3    activities of the land bank;
4        (15) to enter into contracts and other instruments
5    necessary, incidental, or convenient to the performance of
6    its duties and the exercise of its powers, including, but
7    not limited to, an agreement with a party for the joint
8    exercise of powers. An agreement with a party may include
9    contracts for the performance of services by a party on
10    behalf of the land bank or by the land bank on behalf of a
11    party;
12        (16) to enter into partnerships, joint ventures, and
13    other collaborative relationships with municipalities and
14    other public and private entities for the ownership,
15    management, development, and disposition of real property;
16        (17) to enter into contracts and other instruments
17    necessary, incidental, or convenient to the performance of
18    its duties and the exercise of its powers, including, but
19    not limited to, agreements with a party regarding the
20    disposition of land bank properties located within their
21    boundaries;
22        (18) to finance (by loan, grant, lease, or otherwise),
23    refinance, construct, erect, assemble, purchase, acquire,
24    own, repair, remodel, rehabilitate, modify, maintain,
25    extend, improve, install, sell, equip, expand, add to,
26    operate, or manage real property or rights or interests in

 

 

HB3693- 23 -LRB102 13259 AWJ 18603 b

1    real property and to pay the costs of any such project from
2    the proceeds of revenue bonds or loans by persons,
3    corporations, partnerships, whether limited or general, or
4    other entities, all of which the land bank is authorized
5    to receive, accept, and use;
6        (19) to fix, charge, and collect rents, fees,
7    licenses, and charges for the use of real property of the
8    land bank and for services provided by the Land Bank;
9        (20) to grant or acquire a license, easement, lease
10    (as lessor or lessee), or option with respect to real
11    property of the land bank;
12        (21) to enter into contracts with not-for-profit
13    community land trusts, including, but not limited to,
14    long-term lease contracts;
15        (22) to contract for goods and services and employ
16    personnel, as necessary, to be paid from the funds of the
17    land bank. The board of directors shall determine the
18    qualifications, duties, and compensation of those it
19    contracts with and employs;
20        (23) to organize and reorganize the executive,
21    administrative, clerical, and other departments of the
22    land bank and to fix the duties, powers, and compensation
23    of all employees, agents, and consultants of the land
24    bank;
25        (24) to remediate environmental contamination on any
26    real property held by the land bank;

 

 

HB3693- 24 -LRB102 13259 AWJ 18603 b

1        (25) to acquire, hold, and manage property;
2        (26) to dispose of property; and
3        (27) to do all other things necessary or convenient to
4    achieve the objectives and purposes of the land bank and
5    this Division.
 
6    (65 ILCS 5/11-15.5-145 new)
7    Sec. 11-15.5-145. Municipality's governmental immunity.
8Nothing in this Division may be construed as a waiver by the
9municipality of any governmental immunity provided under any
10applicable law.
 
11    (65 ILCS 5/11-15.5-150 new)
12    Sec. 11-15.5-150. Discrimination.
13    (a) The land bank shall comply with all applicable laws
14prohibiting discrimination.
15    (b) The land bank shall not provide services in a manner
16that discriminates against an individual because of the actual
17or perceived status, practice, or expression of that
18individual's race, color, sex, age, religion, disability,
19national origin, ancestry, sexual orientation, marital status,
20parental status, military discharge status, source of income,
21gender identity, or housing status or the actual or perceived
22association with such an individual.
23    (c) The land bank shall not refuse to hire, recruit,
24promote, demote, discharge, or otherwise discriminate against

 

 

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1an individual with respect to employment, compensation or a
2term, condition, or privilege of employment because of the
3actual or perceived status, practice, or expression of that
4individual's race, color, sex, age, religion, disability,
5national origin, ancestry, sexual orientation, marital status,
6parental status, military discharge status, source of income,
7gender identity, or housing status or the actual or perceived
8association with such an individual.
 
9    (65 ILCS 5/11-15.5-155 new)
10    Sec. 11-15.5-155. Acquisition of property.
11    (a) The land bank may acquire real property or rights or
12interests in real property by gift, bequest, transfer,
13exchange, foreclosure, purchase, purchase contracts, lease
14purchase agreements, installment sales contracts, land
15contracts, tax sale, scavenger sale, or other method of
16acquisition on terms and conditions and in a manner the land
17bank considers proper.
18    (b) The land bank may acquire any property conveyed to it
19by any person, including, but not limited to, property without
20clear title.
21    (c) All deeds, mortgages, contracts, leases, purchases, or
22other agreements regarding real property of the land bank,
23including agreements to acquire or dispose of real property,
24shall be approved by and executed by the land bank in the name
25of the municipality.

 

 

HB3693- 26 -LRB102 13259 AWJ 18603 b

1    (d) The land bank may purchase property in the name of the
2municipality at tax sales conducted under the Property Tax
3Code. The land bank may tender a bid at a tax sale that is a
4credit bid consisting of the obligation of the land bank to
5satisfy the component parts of the bid by payments to the
6respective political subdivisions.
7    (e) The land bank may make offers to purchase real
8property that is subject to a listing agreement. The offer or
9purchase of a property by the land bank that is subject to a
10listing agreement shall not extinguish any legal rights
11existing under the listing agreement.
 
12    (65 ILCS 5/11-15.5-160 new)
13    Sec. 11-15.5-160. Execution of legal documents relating to
14real property. Deeds, mortgages, contracts, easements, leases,
15licenses, franchises, purchases, covenants or other agreements
16regarding real property of the land bank, including agreements
17to acquire or dispose of real property, shall be executed in
18the name of the municipality by the land bank and approved in
19accordance with the bylaws of the land bank.
 
20    (65 ILCS 5/11-15.5-165 new)
21    Sec. 11-15.5-165. Holding and managing property. The land
22bank may control, manage, maintain, operate, repair, lease as
23lessor, license, secure, prevent the waste or deterioration
24of, demolish, or take all other actions necessary to preserve

 

 

HB3693- 27 -LRB102 13259 AWJ 18603 b

1the value of the real property it controls on behalf of the
2municipality. The land bank shall maintain all real property
3held by the land bank in accordance with applicable laws and
4codes. Real property shall be inventoried and classified by
5the land bank according to suitability for use. The inventory
6shall be maintained as a public record and shall be filed
7electronically and in the principal office of the land bank.
 
8    (65 ILCS 5/11-15.5-170 new)
9    Sec. 11-15.5-170. Property disposition. On fair and
10reasonable terms and conditions and in a manner and for an
11amount of consideration the land bank considers proper
12(including for no monetary consideration, if appropriate), the
13land bank may convey, sell, transfer, exchange, or otherwise
14dispose of real property or rights or interests in real
15property which the land bank controls and the municipality
16holds a legal interest to any public or private person. The
17disposition of real property under this Section shall be
18considered a necessary public purpose and for the benefit of
19the public.
 
20    (65 ILCS 5/11-15.5-175 new)
21    Sec. 11-15.5-175. Criteria for conveyance. Real property
22shall be conveyed by the land bank in accordance with this
23Division and according to criteria determined in the
24discretion of the board of directors and contained in the

 

 

HB3693- 28 -LRB102 13259 AWJ 18603 b

1policies and procedures adopted by the board of directors. The
2board of directors may adopt policies and procedures that set
3forth priorities for a transferee's use of real property
4conveyed by the land bank, including, but not limited to,
5affordable housing.
 
6    (65 ILCS 5/11-15.5-180 new)
7    Sec. 11-15.5-180. Transactions.
8    (a) Transactions shall be structured in a manner that
9permits the land bank to enforce contractual agreements, real
10covenants, and the provisions of any subordinate financing
11held by the land bank pertaining to development and use of the
12real property.
13    (b) Notwithstanding any other provision of this Division,
14any transaction involving property located within a
15municipality with a population over 100,000 shall only be made
16pursuant to an agreement between that municipality and the
17land bank.
 
18    (65 ILCS 5/11-15.5-185 new)
19    Sec. 11-15.5-185. Disposition of proceeds. Any proceeds
20from the sale or transfer of real property by the land bank
21shall be retained, expended, or transferred by the land bank
22as determined by the board of directors in the best interests
23of the land bank and in accordance with applicable laws and
24agreements.
 

 

 

HB3693- 29 -LRB102 13259 AWJ 18603 b

1    (65 ILCS 5/11-15.5-190 new)
2    Sec. 11-15.5-190. Intergovernmental agreements.
3    (a) The board of directors may negotiate and propose
4intergovernmental agreements necessary, incidental, or
5convenient to the performance of its duties and the exercise
6of its powers with a unit of local government located in whole
7or in part within the municipality, subject to the approval of
8the city council. An intergovernmental agreement may include,
9but is not limited to, contracts for the joint exercise of
10powers, contracts for the ownership, management, development,
11and disposition of real property, or contracts for the
12performance of services by a unit of local government on
13behalf of the land bank or by the land bank on behalf of a unit
14of local government.
15    (b) A party to an intergovernmental agreement shall agree
16that no party to an intergovernmental agreement shall be
17responsible, in whole or in part, for the acts of the
18employees, agents, and servants of any other party, whether
19acting separately or in conjunction with the implementation of
20an intergovernmental agreement. The parties shall only be
21bound and obligated under an intergovernmental agreement as
22expressly agreed to by each party.
23    (c) All intergovernmental agreements shall be interpreted,
24enforced, and governed under the laws of this State without
25regard to the doctrines of conflict of laws. The language of an

 

 

HB3693- 30 -LRB102 13259 AWJ 18603 b

1intergovernmental agreements shall in all cases be construed
2as a whole according to its plain and fair meaning and not
3construed strictly for or against any party.
 
4    (65 ILCS 5/11-15.5-195 new)
5    Sec. 11-15.5-195. Land bank records. The land bank shall
6keep and maintain at the principal office of the land bank all
7documents and records of the land bank. The records of the land
8bank shall be available to the public and shall include, but
9not be limited to, a copy of this Division, the land bank's
10bylaws, and any agreements and any amendments to an agreement.
11The records and documents shall be maintained and shall be
12delivered to any successor entity.
 
13    (65 ILCS 5/11-15.5-200 new)
14    Sec. 11-15.5-200. Financial statements and reports. The
15land bank shall annually prepare or have prepared, at the land
16bank's expense, audited financial statements, including
17balance sheet, statement of revenue and expense, statement of
18cash flows, and changes in fund balance. The financial
19statements shall be prepared in accordance with generally
20accepted accounting principles and accompanied by a written
21opinion of an independent certified public accounting firm.
 
22    (65 ILCS 5/11-15.5-205 new)
23    Sec. 11-15.5-205. Annual budget.

 

 

HB3693- 31 -LRB102 13259 AWJ 18603 b

1    (a) The land bank shall prepare an annual budget in a
2manner and under a time frame mandated by municipality's
3treasurer or other financial officer.
4    (b) For the first complete fiscal year and each fiscal
5year thereafter, the board of directors shall recommend,
6approve, and submit an annual budget to be included in the
7municipality's annual budget for approval by the city council.
8    (c) The obligations and expenditures of the board of
9directors shall conform to the municipality's annual budget.
10The city council retains the authority to impose additional
11limitations. A commitment, contract, or other obligation
12entered into by the board of directors in violation of this
13Section shall be voidable by the city council.
 
14    (65 ILCS 5/11-15.5-210 new)
15    Sec. 11-15.5-210. Deposits and investments.
16    (a) The land bank shall deposit funds of the land bank in a
17special fund to be held by the treasurer of the municipality.
18The fund shall be designated as the "Land Bank Fund" and the
19moneys in the fund shall be expended exclusively for the
20operation of the land bank.
21    (b) Expenditures of funds from the Land Bank Fund shall be
22in accordance with guidelines established by the board of
23directors.
 
24    (65 ILCS 5/11-15.5-215 new)

 

 

HB3693- 32 -LRB102 13259 AWJ 18603 b

1    Sec. 11-15.5-215. Performance objectives. Each fiscal
2year, the director or other individual designated by the board
3of directors shall prepare, for review and approval by the
4board of directors, objectives for the land bank's
5performance.
 
6    (65 ILCS 5/11-15.5-220 new)
7    Sec. 11-15.5-220. Annual report.
8    (a) The board of directors shall submit a report to the
9mayor and the city council, no later than 6 months after the
10end of each fiscal year, which shall set forth a complete and
11detailed operating and financial statement of the land bank
12during the fiscal year.
13    (b) Included in the report shall be any recommendations
14for additional legislation or other action which may be
15necessary to carry out the mission, purpose, and intent of the
16land bank.
 
17    (65 ILCS 5/11-15.5-225 new)
18    Sec. 11-15.5-225. Management of funds. The director or
19other individual designated by the board of directors is
20authorized to make deposits and withdraw funds from the Land
21Bank Fund for the management of sales proceeds, revenue, and
22other land bank funds as authorized by the board of directors.
23Standard accounting procedures shall be used in the management
24of accounts and approved by the municipality's treasurer.
 

 

 

HB3693- 33 -LRB102 13259 AWJ 18603 b

1    (65 ILCS 5/11-15.5-230 new)
2    Sec. 11-15.5-230. Authorized expenditures. The land bank
3shall, in its sole discretion and within its budget, expend
4funds as necessary to carry out the powers, duties, functions,
5and responsibilities of the land bank under this Division.
 
6    (65 ILCS 5/11-15.5-235 new)
7    Sec. 11-15.5-235. Dissolution. If the city council
8determines that the purposes of the land bank have been
9completed and that there is no longer a need for the land bank,
10the city council may dissolve the land bank. The dissolution
11date shall allow sufficient time for the land bank to carry out
12the distribution of assets under Section 11-15.5-240.
 
13    (65 ILCS 5/11-15.5-240 new)
14    Sec. 11-15.5-240. Distribution of assets. At a reasonable
15time prior to the dissolution of the land bank under Section
1611-15.5-235, the land bank shall wind up its affairs as
17follows:
18        (1) all of the land bank's debts, liabilities, and
19    obligations to its creditors and all expenses incurred in
20    connection with the termination of the land bank and
21    distribution of its assets shall be paid first; and
22        (2) the remaining real property and personal property
23    owned by the land bank, if any, shall be distributed to any

 

 

HB3693- 34 -LRB102 13259 AWJ 18603 b

1    successor entity, subject to approval by the municipality.
2    If a successor entity does not exist, the remaining real
3    property, personal property, and other assets of the land
4    bank shall become assets of the municipality unless
5    provided otherwise in any applicable agreement.
 
6    (65 ILCS 5/11-15.5-998 new)
7    Sec. 11-15.5-998. Interpretation of Division. All powers
8granted to the land bank under this Division shall be
9interpreted broadly to effectuate the intent and purposes of
10this Division and not to serve as a limitation of powers.
 
11    (65 ILCS 5/11-15.5-999 new)
12    Sec. 11-15.5-999. Severability. The provisions of this Act
13are severable under Section 1.31 of the Statute on Statutes.

 

 

HB3693- 35 -LRB102 13259 AWJ 18603 b

1 INDEX
2 Statutes amended in order of appearance
3    65 ILCS 5/Div. 15.5
4    heading new
5    65 ILCS 5/11-15.5-5 new
6    65 ILCS 5/11-15.5-10 new
7    65 ILCS 5/11-15.5-15 new
8    65 ILCS 5/11-15.5-20 new
9    65 ILCS 5/11-15.5-25 new
10    65 ILCS 5/11-15.5-30 new
11    65 ILCS 5/11-15.5-35 new
12    65 ILCS 5/11-15.5-40 new
13    65 ILCS 5/11-15.5-45 new
14    65 ILCS 5/11-15.5-50 new
15    65 ILCS 5/11-15.5-55 new
16    65 ILCS 5/11-15.5-60 new
17    65 ILCS 5/11-15.5-65 new
18    65 ILCS 5/11-15.5-70 new
19    65 ILCS 5/11-15.5-75 new
20    65 ILCS 5/11-15.5-80 new
21    65 ILCS 5/11-15.5-85 new
22    65 ILCS 5/11-15.5-90 new
23    65 ILCS 5/11-15.5-95 new
24    65 ILCS 5/11-15.5-100 new
25    65 ILCS 5/11-15.5-105 new

 

 

HB3693- 36 -LRB102 13259 AWJ 18603 b

1    65 ILCS 5/11-15.5-110 new
2    65 ILCS 5/11-15.5-115 new
3    65 ILCS 5/11-15.5-120 new
4    65 ILCS 5/11-15.5-125 new
5    65 ILCS 5/11-15.5-130 new
6    65 ILCS 5/11-15.5-135 new
7    65 ILCS 5/11-15.5-140 new
8    65 ILCS 5/11-15.5-145 new
9    65 ILCS 5/11-15.5-150 new
10    65 ILCS 5/11-15.5-155 new
11    65 ILCS 5/11-15.5-160 new
12    65 ILCS 5/11-15.5-165 new
13    65 ILCS 5/11-15.5-170 new
14    65 ILCS 5/11-15.5-175 new
15    65 ILCS 5/11-15.5-180 new
16    65 ILCS 5/11-15.5-185 new
17    65 ILCS 5/11-15.5-190 new
18    65 ILCS 5/11-15.5-195 new
19    65 ILCS 5/11-15.5-200 new
20    65 ILCS 5/11-15.5-205 new
21    65 ILCS 5/11-15.5-210 new
22    65 ILCS 5/11-15.5-215 new
23    65 ILCS 5/11-15.5-220 new
24    65 ILCS 5/11-15.5-225 new
25    65 ILCS 5/11-15.5-230 new
26    65 ILCS 5/11-15.5-235 new

 

 

HB3693- 37 -LRB102 13259 AWJ 18603 b

1    65 ILCS 5/11-15.5-240 new
2    65 ILCS 5/11-15.5-998 new
3    65 ILCS 5/11-15.5-999 new