HB1517 99TH GENERAL ASSEMBLY

LRB099 06385 MGM 26455 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB1517

Introduced 2/6/2015, by Rep. Jehan A. Gordon-Booth

SYNOPSIS AS INTRODUCED:

New Act

Creates the Land Bank Act. Provides that a taxing district may create a land bank by the adoption of an ordinance or resolution. Establishes requirements for the creation of a land bank and a land bank's board of directors and staff. Establishes various powers and duties of a land bank. Provides that the provisions of the Act shall not apply to any land bank in effect before the effective date of the Act.

A BILL FOR

AN ACT concerning land banks.

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 Land Bank Act.

Section 5. Legislative intent.

The General Assembly finds and declares that Illinois' communities are important to the social and economic vitality of the State. Whether urban, suburban, or rural, many communities are struggling to cope with vacant, abandoned, and tax-delinquent properties. Evidence demonstrates that a persistently high rate of vacant lots and structures harms the safety and economic strength of individual communities and neighborhoods within the State of Illinois.

There is a crisis in many cities and their metropolitan areas caused by disinvestment in real property and resulting in a significant amount of vacant and abandoned property. This condition of vacant and abandoned property represents lost revenue to local governments and large costs ranging from demolition, effects of safety hazards, and spreading deterioration of neighborhoods, including resulting mortgage foreclosures.

The need exists to strengthen and revitalize the economy of the State and its units of local government by solving the problems of vacant and abandoned property in a coordinated manner and to foster the development of such property and promote economic growth. These problems may include multiple taxing jurisdictions lacking common policies, ineffective property inspection, code enforcement and property rehabilitation support, lengthy or inadequate foreclosure proceedings, and lack of coordination and resources to support economic revitalization.

There is an overriding public need to confront the problems caused by vacant, abandoned, and tax-delinquent properties through the creation of new tools available to communities throughout Illinois enabling them to turn vacant spaces into vibrant places. Land banks are one of the tools that can be used by communities to facilitate the return of vacant, abandoned, and tax-delinquent properties to productive use.

The primary focus of land bank operations is the acquisition of real property that is tax delinquent, tax foreclosed, vacant, or abandoned, and the use of tools authorized in this Act to eliminate the harms and liabilities caused by such properties. A land bank must ensure that communities affected by vacant land have substantial and meaningful involvement in decisions relating to those communities, with the community involvement directing the land bank's governance, structure, and operations. The State recognizes public health and safety as an integral part of neighborhood stabilization and development; therefore, a land bank should promote development that improves health and access to health care within all communities and neighborhoods.

Section 10. Definitions. As used in this Act, unless the context clearly indicates otherwise:

"Board of directors" or "board" means the board of directors of a land bank.

"Land bank" means a land bank established as not-for-profit corporation and in accordance with the provisions of this Act and under the General Not For Profit Corporation Act of 1986.

"Foreclosing governmental unit" shall mean "taxing district" as defined in Section 1-150 of the Property Tax Code.

"Unit of local government" means a municipality, township, or county.

"School district" means a school district as defined under the School District Intergovernmental Cooperation Renewable Energy Act.

"Real property" means lands, lands under water, structures and any and all easements, air rights, franchises, and incorporeal hereditaments and every estate and right therein, legal and equitable, including terms for years and liens by way of judgment, mortgage or otherwise, and any and all fixtures and improvements located thereon.

"Brownfields site" or "brownfield" mean a parcel of real property, or a portion of the parcel, that has actual or perceived contamination and an active potential for redevelopment.

Section 15. Creation and existence.

(a) Any foreclosing governmental unit may create a land bank by ordinance or resolution specifying the following:

(1) the name of the land bank;

(2) the number of members of the board of directors, which shall consist of an odd number of members, and shall be not less than 5 members nor more than 11 members;

(3) the individuals to serve as the initial members of the board of directors, and the length of terms for which they are to serve;

(4) the qualifications of members of the board under subsection (d) of Section 20;

(5) the manner of selection or appointment, and terms of office of members of the board; and

(6) the articles of incorporation for the land bank, which shall be filed with the Secretary of State in accordance with the procedures set forth in this Act.

(b) Two or more foreclosing governmental units may enter into an intergovernmental agreement that creates a single land bank to act on behalf of both foreclosing governmental units. The intergovernmental agreement shall be authorized by and be in accordance with the provisions of subsection (a) of this Section. The agreement shall include provisions for dissolution of the land bank.

(c) Any foreclosing governmental units and any other unit of local government may enter into an intergovernmental agreement that creates a single land bank to act on behalf of the foreclosing governmental unit and the unit of local government. The intergovernmental agreement between the foreclosing governmental unit and the unit of local government shall be in accordance with the provisions of subsection (a) of this Section. The agreement shall include provisions for dissolution of the land bank.

(d) Except when a land bank is created under subsection (b) or (c) of this Section, a county creating a land bank shall have the power to acquire real property only in those portions of the county located outside of the geographical boundaries of any other land bank created by any other foreclosing governmental unit located partially or wholly within the county.

(e) A school district may participate in a land bank under an intergovernmental agreement with the foreclosing governmental unit that creates the land bank. Any such intergovernmental agreement between a foreclosing governmental unit and a school district shall specify the membership, if any, of such school district on the board of directors of the land bank and the actions of the land bank that are subject to approval by the school district.

(f) Each land bank created under this Act shall be a not-for-profit corporation, and shall have permanent and perpetual duration until terminated and dissolved in accordance with the provisions of Section 60.

(g) The Auditor General shall have the authority to audit any land bank under this Act.

Section 20. Board of directors.

(a) The initial size of the board shall be determined in accordance with Section 15. Unless restricted by the actions or agreements specified in Section 15, the provisions of this Section shall apply.

The size of the board may be adjusted in accordance with by-laws of the land bank.

(b) In the event that a land bank is created under an intergovernmental agreement in accordance with Section 15, such intergovernmental agreement shall meet the requirements of subsection (a) of Section 15, provided that each foreclosing governmental unit shall have at least one appointment to the board.

(c) Any public officer shall be eligible to serve as a board member and the acceptance of the appointment shall neither terminate nor impair such public office. For purposes of this Section, "public officer" shall mean a person who is elected to an office representing a unit of local government. Any employee or appointed officer of a unit of local government shall be eligible to serve as a board member.

(d) Board members shall: (1) include individuals with expertise in relevant areas, including, but not limited to, community planning, environmental health, public health, and publicly accessible open space; and (2) live or work within the State. One-fifth of the Board membership shall be comprised of community residents or community members from existing grassroots or community-based organizations. These members shall have particular knowledge of conditions and needs in communities with significant rates of vacant or publicly-owned properties.

(e) The members of the board of directors shall select annually from among themselves a chairman, vice-chairman, treasurer, and such other officers as the board may determine, and shall establish their duties as may be regulated by rules adopted by the board.

(f) The board shall by rule establish requirements concerning the attendance and participation of members in its meetings, both regular and special. The rules may prescribe a procedure whereby, if any member fails to comply with the rules, that member may be disqualified and removed automatically from office by a majority vote of the other members of the board, and that member's position shall be vacant as of the first day of the next calendar month. Any person removed under the provisions of this subsection (f) shall be ineligible for reappointment to the board, unless such reappointment is confirmed unanimously by the board.

(g) A vacancy on the board shall be filled in the same manner as the original appointment.

(h) Board members shall serve without compensation, shall have the power to organize and reorganize the executive, administrative, clerical, and other departments of the land bank, and to fix the duties, powers, and compensation of all employees, agents, and consultants of the land bank. The board may reimburse any member for reasonable expenses actually incurred in the performance of duties on behalf of the land bank.

(i) The board shall meet in regular session according to a schedule adopted by the board, and also shall meet in special session as convened by the chairman or upon written notice signed by a majority of the members.

(j) A majority of the members of the board, not including vacancies, shall constitute a quorum for the conduct of business. All actions of the board shall be approved by the affirmative vote of a majority of the members of that board present and voting, provided, however, that no action of the board shall be authorized on the following matters, unless approved by a majority of the total board membership:

(1) adoption of by-laws and other rules and regulations for conduct of the land bank's business;

(2) hiring or firing of any employee or contractor of the land bank; this function may, by majority vote of the total board membership, be delegated to a specified officer or committee of the land bank, under such terms and conditions, and to the extent, that the board may specify;

(3) the incurring of debt;

(4) adoption or amendment of the annual budget; and

(5) sale, lease, encumbrance, or alienation of real property, improvements, or personal property.

(k) Members of a board shall not be liable personally on the bonds or other obligations of the land bank, and the rights of creditors shall be solely against such land bank.

(l) Members of the board shall not be permitted to vote by proxy. Any member may request a recorded vote on any resolution or action of the land bank.

Section 25. Staff. A land bank may employ a secretary, an executive director, its own counsel and legal staff, and such technical experts, and such other agents and employees, permanent or temporary, as it may require, and may determine the qualifications and fix the compensation and benefits of such persons. A land bank may also enter into contracts and agreements with units of local government for staffing services to be provided to the land bank by units of local government or agencies or departments thereof, or for a land bank to provide such staffing services to units of local government or agencies or departments thereof.

Section 30. Powers.

(a) A land bank shall be incorporated as a not-for-profit corporation under Illinois law. The land bank's powers shall include all powers necessary to carry out and effectuate the purposes and provisions of this Act, provided there is meaningful community involvement regarding decisions that impact those communities. The land bank shall have the following powers, in addition to those otherwise granted:

(1) to adopt, amend, and repeal bylaws for the regulation of its affairs and the conduct of its business;

(2) to sue and be sued in its own name and plead and be impleaded in all civil actions, including, but not limited to, actions to clear title to property of the land bank;

(3) to adopt a seal and to alter the same at pleasure;

(4) to make contracts, give guarantees and incur liabilities, borrow money at such rates of interest as the land bank may determine;

(5) to issue negotiable revenue bonds and notes according to the provisions of this Act;

(6) to procure insurance or guarantees from the State or federal government of the payments of any debts or portion of debt incurred by the land bank, and to pay premiums in connection with such insurance;

(7) to enter into contracts and other instruments necessary to the performance of its duties and the exercise of its powers;

(8) to enter into contracts and other instruments necessary to the performance of functions by the land bank on behalf of units of local government or agencies or departments of units of local government, or the performance by units of local government or agencies or departments of units of local government of functions on behalf of the land bank;

(9) to make and execute contracts and other instruments necessary to the exercise of the powers of the land bank; and any contract or instrument when signed by the chairman or vice-chairman of the land bank, or by an authorized use of their facsimile signatures, and by the secretary or assistant secretary, or, treasurer or assistant treasurer of the land bank, or by an authorized use of their facsimile signatures, shall be held to have been properly executed for and on its behalf;

(10) to procure insurance against losses in connection with the real property, assets, or activities of the land bank;

(11) to invest money of the land bank, at the discretion of the board of directors, in instruments, obligations, securities, or property determined proper by the board of directors, and name and use depositories for its money;

(12) to enter into contracts for the management of, the collection of rent from, or the sale of real property of the land bank;

(13) to design, develop, construct, demolish, reconstruct, rehabilitate, renovate, relocate, and otherwise improve real property or rights or interests in real property;

(14) to fix, charge, and collect rents, fees, and charges for the use of real property of the land bank and for services provided by the land bank;

(15) to grant or acquire a license, easement, lease (as lessor or as lessee), or option with respect to real property of the land bank;

(16) to enter into partnership, joint ventures, and other collaborative relationships with units of local government and other public and private entities for the ownership, management, development, and disposition of real property;

(17) to inventory vacant, abandoned and tax foreclosed properties;

(18) to develop a redevelopment plan to be approved by the foreclosing governmental unit or units;

(19) to be subject to building codes and zoning laws of the corresponding unit of local government;

(20) to enter in agreements with a foreclosing governmental unit for the distribution of revenues to the foreclosing governmental unit and school district; and

(21) to do all other things necessary to achieve the objectives and purposes of the land bank or other laws that relate to the purposes and responsibility of the land bank.

(b) A land bank shall neither possess nor exercise the power of eminent domain.

Section 35. Acquisition of property.

(a) The real property of a land bank and its income and operations are exempt from all taxation by the State of Illinois and by any of its political subdivisions.

(b) The land bank may acquire real property or interests in real property by gift, devise, transfer, exchange, foreclosure, purchase, or otherwise on terms and conditions and in a manner the land bank considers proper.

(c) The land bank may acquire real property by purchase contracts, lease purchase agreements, installment sales contracts, and land contracts and may accept transfers from units of local government upon such terms and conditions as agreed to by the land bank and the unit of local government. Notwithstanding any other law to the contrary, any unit of local government may transfer to the land bank real property and interests in real property of the unit of local government on such terms and conditions and according to such procedures as determined by the unit of local government.

(d) The land bank shall maintain all of its real property in accordance with the laws and ordinances of the jurisdiction in which the real property is located.

(e) The land bank shall not own or hold real property located outside the jurisdictional boundaries of the foreclosing governmental unit or units which created the land bank; provided, however, that a land bank may be granted authority under an intergovernmental agreement with another unit of local government to manage and maintain real property located within the jurisdiction of such other unit of local government.

(f) Notwithstanding any other provision of law to the contrary, any unit of local government may convey to a land bank real property and interests in real property on such terms and conditions, form and substance of consideration, and procedures, all as determined by the transferring unit of local government in its discretion.

(g) The acquisition of real property by a land bank under this Act, from entities other than political subdivisions, shall be limited to real property that is tax-delinquent, tax-foreclosed, vacant or abandoned; provided, however, that a land bank shall have authority to enter into agreements to purchase other real property consistent with an approved redevelopment plan.

(h) The land bank shall maintain and make available for public inspection a complete inventory of all property received by the land bank. Such inventory shall include: the location of the parcel; the purchase price, if any, for each parcel received; the current value assigned to the property for purposes of real property taxation; the amount, if any, owed to the locality for real property taxation; the identity of the transferor; and any conditions or restrictions applicable to the property.

(i) All parcels received by the land bank shall be listed on the received inventory established under subsection (h) of this Section within one week of acquisition and shall remain in such inventory for one week prior to disposition.

(j) Failure to comply with the requirements in subsections (h) and (i) of this Section with regard to any particular parcel shall cause such acquisition by the land bank to be null and void.

Section 40. Disposition of property.

(a) The land bank shall hold in its own name all real property acquired by the land bank irrespective of the identity of the transferor of such property.

(b) The land bank shall maintain and make available for public inspection a complete inventory of all real property dispositions by the land bank. The inventory shall include a complete copy of the sales contract, including all terms and conditions, including, but not limited to, any form of compensation received by the land bank or any other party that is not included within the sale price.

(c) The land bank shall determine and set forth in policies and procedures of the board of directors, the general terms and conditions for consideration to be received by the land bank for the transfer of real property and interests in real property, which consideration may take the form of monetary payments and secured financial obligations, covenants and conditions related to the present and future use of the property, contractual commitments of the transferee, and any other forms of consideration as are consistent with State and local law.

(d) The land bank may convey, exchange, sell, transfer, lease as lessor, grant, release, demise, or pledge any and all interests in, upon, or to real property of the land bank.

(e) Upon creating a land bank, any foreclosing governmental unit shall determine, in consultation with the impacted community, how the real property conveyed by the land bank will be used, selecting one or more of the following uses:

(1) neighborhood health clinics and centers, hospitals, or urgent care clinics;

(2) services and enrichment facilities, such as senior and community centers;

(3) community open space, green-space, or wildlife conservation areas; or

(4) urban agriculture, such as community gardens and composting sites.

(f) A foreclosing governmental unit may require that any particular form of disposition of real property, or any disposition of real property located within specified jurisdictions, be subject to voting and approval requirements of the board of directors. Except and unless restricted or constrained in this manner, the board of directors may delegate to officers and employees the authority to enter into and execute agreements, instruments of conveyance, and all other related documents pertaining to the conveyance of real property by the land bank.

(g) All property dispositions shall be listed on the property disposition inventory established under subsection (b) of this Section within one week of disposition. Such records shall remain available for public inspection in the property disposition inventory indefinitely.

(h) Failure to comply with the requirements of subsection (g) of this Section shall subject the land bank to a civil penalty of $100 per violation up to a maximum of $10,000 for each parcel, recoverable in an action brought by the Attorney General or State's Attorney. The Attorney General or State's Attorney may also seek rescission of the real property transaction.

Section 45. Financing of land bank operations.

(a) A land bank may receive funding through grants and loans from the foreclosing governmental unit or units which created the land bank, from other units of local government, from the State, from the federal government, and from other public and private sources.

(b) A land bank may receive and retain payments for services rendered, for rents and leasehold payments received, for consideration for disposition of real and personal property, for proceeds of insurance coverage for losses incurred, for income from investments, and for any other asset and activity lawfully permitted to a land bank under this Act.

(c) Upon the adoption of an ordinance or resolution by unit of local government, school district, or any taxing district, 50% of the real property taxes collected on any specific parcel of real property identified by such unit of local government, school district, or any taxing jurisdiction may be remitted to the land bank in accordance with procedures established by rules adopted by the Department of Revenue. Such allocation of real property tax revenues shall begin with the first taxable year following the date of conveyance and shall continue for a period of 5 years.

Section 50. Bonds.

(a) Any foreclosing governmental unit or school district which receives funds from the Department of Revenue, including without limitation funds received pursuant to Sections 8-11-1, 8-11-1.4 or 8-11-5 of the Illinois Municipal Code, the Home Rule County Retailers' Occupation Tax Act or the Home Rule County Service Occupation Tax Act, Section 5.01 of the Local Mass Transit District Act, Sections 2 or 12 of "An Act in relation to State revenue sharing with local governmental entities", approved July 31, 1969, from the Department of Transportation pursuant to Section 8 of the Motor Fuel Tax Law, or from the State Superintendent of Education (directly or indirectly through regional superintendents of schools) pursuant to Article 18 of The School Code, or any foreclosing governmental unit or school district which receives other funds which are at any time in the custody of the State Treasurer, the State Comptroller, the Department of Revenue, the Department of Transportation or the State Superintendent of Education may, by appropriate proceedings, pledge to a land bank which it has created by ordinance or resolution, or with which it has an intergovernmental agreement, any or all of such receipts to the extent that such receipts are necessary to provide revenues to pay the principal of, premium, if any, and interest on, and other fees related to, or to secure, any bonds issued by the land bank. Any pledge of such receipts (or any portion thereof) shall constitute a first and prior lien thereon and shall be binding from the time the pledge is made.

(b) Upon receipt of a certified copy of proceedings under subsection (a) by the State Treasurer, the State Comptroller, the Department of Revenue, the Department of Transportation or the State Superintendent of Education, as the case may be, such Department or State Superintendent shall direct the State Comptroller and State Treasurer to pay to, or on behalf of, the land bank or such other entity (including, without limitation, any trustee) all or such portion of the pledged receipts from the Department of Revenue, or the Department of Transportation or the State Superintendent of Education (directly or indirectly through regional superintendents of schools), as the case may be, sufficient to pay the principal of and premium, if any, and interest on, and other fees related to, the local governmental securities for which the pledge was made. The proceedings shall constitute authorization for a directive to the State Comptroller to cause orders to be drawn and to the State Treasurer to pay in accordance with the directive. To the extent that the land bank or its designee notifies the Department of Revenue, the Department of Transportation or the State Superintendent of Education, as the case may be, that the foreclosing governmental unit or school district has previously paid to the land bank or its designee the amount of any principal, premium, interest and fees payable from such pledged receipts, the State Comptroller shall cause orders to be drawn and the State Treasurer shall pay such pledged receipts to the foreclosing governmental unit or school district as if they were not pledged receipts. To the extent that such receipts are pledged and paid to the land bank or such other entity, any taxes which have been levied or fees or charges assessed pursuant to law on account of the issuance of such bonds issued by the land bank shall be paid to the foreclosing governmental unit or school district and may be used for the purposes which the pledged receipts would have been used.

(c) Any such foreclosing governmental unit or school district may, by such proceedings, direct that such pledged receipts payable to such foreclosing governmental unit or school district be paid to the land bank or such other entity (including without limitation any trustee) upon a default in the payment of any principal of, premium, if any, or interest on, or fees relating to, any of the bonds issued by the land bank which have been sold or delivered to the land bank or its designee or any of the bonds issued by the land bank which have been sold or delivered to the land bank or its designee and which are secured by such lease rental payments. If such local governmental security is in default as to the payment of principal thereof, premium, if any, or interest thereon, or fees relating thereto, to the extent that the State Treasurer, the State Comptroller, the Department of Revenue, the Department of Transportation or the State Superintendent of Education (directly or indirectly through regional superintendents of schools) shall be the custodian at any time of any other available funds or moneys pledged to the payment of such bonds issued by the land bank under this Section and due or payable to such a foreclosing governmental unit or school district at any time subsequent to written notice to the State Comptroller and State Treasurer from the land bank or any entity acting on behalf of the land bank (including, without limitation, any trustee) to the effect that such foreclosing governmental unit or school district has not paid or is in default as to payment of the principal of, premium, if any, or interest on, or fees relating to, any local government security sold or delivered to the land bank or any such entity (including, without limitation, any trustee) or has not paid or is in default as to the payment of such lease rental payments securing the payment of the principal of, premiums, if any, or interest on, or other fees relating to, any local government security sold or delivered to the land bank or such other entity (including, without limitation, any trustee):

(1) The State Comptroller and the State Treasurer shall withhold the payment of such funds or moneys from such foreclosing governmental unit or school district until the amount of such principal, premium, if any, interest or fees then due and unpaid has been paid to the land bank or any such entity (including, without limitation, any trustee), or the State Comptroller and the State Treasurer have been advised that arrangements, satisfactory to the land bank or such entity, have been made for the payment of such principal, premium, if any, interest and fees; and

(2) Within 10 days after a demand for payment by the land bank or such entity given to such foreclosing governmental unit or school district, the State Treasurer and the State Comptroller, the State Treasurer shall pay such funds or moneys as are legally available therefor to the land bank or such entity for the payment of principal of, premium, if any, or interest on, or fees relating to, such bonds issued by the land bank. The land bank or any such entity may carry out this Section and exercise all the rights, remedies and provisions provided or referred to in this Section.

(d) Upon the sale or delivery of any local government securities of the land bank or its designee, the foreclosing governmental unit or school district which issued such local government securities shall be deemed to have agreed that upon its failure to pay interest or premium, if any, on, or principal of, or fees relating to, the local government securities sold or delivered to the land bank or any entity acting on behalf of the land bank (including, without limitation, any trustee) when payable, all statutory defenses to nonpayment are thereby waived. Upon a default in the payment of principal of or interest on any bonds issued by the land bank and sold by the land bank or its designee, and upon demand on the foreclosing governmental unit or school district for payment, if the bonds issued by the land bank are payable from property taxes and funds are not legally available in the treasury of the foreclosing governmental unit or school district to make payment, an action in mandamus for the levy of a tax by the foreclosing governmental unit or school district to pay the principal of or interest on the bonds issued by the land bank shall lie, and the land bank or such entity shall be constituted a holder or owner of the bonds issued by the land bank as being in default. Upon the occurrence of any failure or default with respect to any bonds issued by the land bank, the land bank or such entity may thereupon avail itself of all remedies, rights and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies within a time or period provided by law may not be raised as a defense by the foreclosing governmental unit or school district.

(e) The issuance of bonds under this Section is deemed an essential public and governmental purpose. Interest on the bonds issued under this Section after the effective date of this Act is exempt from taxation within this State. For purposes of Section 250 of the Illinois Income Tax Act, the exemption of the interest from bonds granted under this Section 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, pursuant to 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 55. Public records and public meetings.

(a) The board shall cause minutes and a record to be kept of all its proceedings. Except as otherwise provided in this Section, the land bank shall be subject to the Open Meetings Act and the Freedom of Information Act.

(b) A land bank shall hold a public hearing prior to financing or issuance of bonds. The land bank shall schedule and hold a public hearing and solicit public comment. After the conclusion of the public hearing and comments, the land bank shall consider the results of the public hearing and comments with respect to the proposed actions. This consideration by the land bank shall include the accommodation of the public interest with respect to such actions. If an accommodation is deemed in the best interest of the community proposed actions shall include that accommodation.

(c) In addition to any other report required by this Act, the land bank, through its chairperson, shall annually deliver, in oral and written form, a report to the units of local government in which the land bank is located. This report shall be presented by March 15 of each year to the governing body or board of the units of local government. The report shall describe in detail the projects undertaken by the land bank during the past year, the moneys expended by the land bank during the past year, and the administrative activities of the land bank during the past year. At the conclusion of the report, the chairperson of the land bank shall be prepared to answer the questions of the units of local government with respect to the projects undertaken by the authority during the past year, the moneys expended by the unit of local government during the past year, and the administrative activities of the units of local government during the past year.

Section 60. Dissolution of land bank. A land bank may be dissolved as a not-for-profit corporation 60 calendar days after an affirmative resolution approved by two-thirds of the membership of the board of directors. Sixty calendar days advance written notice of consideration of a resolution of dissolution shall be given to the foreclosing governmental unit or units that created the land bank, shall be published in a local newspaper of general circulation, and shall be sent certified mail to the trustee of any outstanding bonds of the land bank. Upon dissolution of the land bank, all real property, personal property, and other assets of the land bank shall become the assets of the foreclosing governmental unit or units that created the land bank. In the event that 2 or more foreclosing governmental units create a land bank in accordance with Section 15, the withdrawal of one or more foreclosing governmental units shall not result in the dissolution of the land bank unless the intergovernmental agreement so provides and there is no foreclosing governmental unit that desires to continue the existence of the land bank.

Section 65. Conflicts of interest. No member of the board or employee of a land bank shall acquire any interest, direct or indirect, in real property of the land bank, in any real property to be acquired by the land bank, or in any real property to be acquired from the land bank. No member of the board or employee of a land bank shall have any interest, direct or indirect, in any contract or proposed contract for materials or services to be furnished or used by a land bank. The board may adopt supplemental regulations addressing potential conflicts of interest and ethical guidelines for members of the board and land bank employees.

Section 70. Construction. The provisions of this Act shall be construed liberally to effectuate the legislative intent and the purposes as complete and independent authorization for the performance of each and every act authorized by this Act, and all powers granted shall be broadly interpreted to effectuate the intent and purposes and not as a limitation of powers. Except as otherwise expressly set forth in this Act, in the exercise of its powers and duties under this Act and its powers relating to property held by the land bank, the land bank shall have complete control as fully and completely as if it represented a private property owner and shall not be subject to restrictions imposed by the charter, ordinances, or resolutions of a unit of local government.

Section 75. Delinquent property tax enforcement. Units of local government may enter into contracts to sell some or all of the delinquent tax liens held by the unit of local government to a land bank, subject to the following conditions:

(a) The consideration to be paid may be more or less than the face amount of the tax liens sold.

(b) Property owners shall be given advance notice of such sale in the same form and manner as is provided by Section 21-135 of the Property Tax Code. Failure to provide such notice or the failure of the addressee to receive the same shall not in any way affect the validity of any sale of a tax lien or tax liens or the validity of the taxes or interest prescribed by law.

(c) The unit of local government shall set the terms and conditions of the contract of sale.

(d) Thirty days before the commencement of any foreclosure action, the land bank must provide to the unit of local government a list of liens to be foreclosed. The unit of local government may, at its sole option and discretion, repurchase a lien or liens on the foreclosure list from the land bank. The repurchase price shall be the amount of the lien or liens plus any accrued interest and collection fees incurred by the land bank. The land bank shall provide the foreclosure list to the unit of local government, along with the applicable repurchase price of each lien, by certified mail, and the unit of local government shall have 30 days from receipt to notify the land bank of its option to purchase one or more of the liens. If the unit of local government opts to purchase the lien, it shall provide payment within 30 days of receipt of the repurchase price of said lien or liens. If the unit of local government shall fail to opt to repurchase the lien or liens the land bank shall have the right to commence a foreclosure action immediately.

(e) The sale of a tax lien under this Act shall not shorten the otherwise applicable redemption period or change the otherwise applicable interest rate.

(f) After sale, the purchaser shall comply with the provisions for notice of sale, redemption rights, notice of expiration of period of redemption, and issuance of deed in accordance with Article 22 of the Property Tax Code.

(g) The provisions of Section 21-72 of the Property Tax Code shall apply so far as is practicable to a contract for the sale of tax liens under this Act.

(h) If the court orders a public sale under Article 21 of Division 3.5 of the Property Tax Code, and the purchaser of the property is the land bank, then the form, substance, and timing of the land bank's payment of the sales price may be according to such agreement as is mutually acceptable to the plaintiff and the land bank. The obligation of the land bank to perform in accordance with such agreement shall be deemed to be in full satisfaction of the tax claim which was the basis for the judgment.

(i) Notwithstanding any other provision of law to the contrary, in the event that no unit of local government elects to tender a bid at a judicially ordered sale under the provisions of Article 21 of Division 3.5 of the Property Tax Code, the land bank may tender a bid at such sale in an amount equal to the total amount of all municipal claims and liens which were the basis for the judgment. In the event of such tender by the land bank the property shall be deemed sold to the land bank regardless of any bids by any other third parties. The bid of the land bank shall be paid as to its form, substance, and timing according to such agreement as is mutually acceptable to the plaintiff and the land bank. The obligation of the land bank to perform in accordance with such agreement shall be deemed to be in full satisfaction of the municipal claim which was the basis for the judgment. The land bank, as purchaser at such sale, shall take and forever thereafter have, an absolute title to the property sold, free and discharged of all tax and municipal claims, liens, mortgages, charges, and estates of any kind. The deed to the land bank shall be executed, acknowledged, and delivered within 30 days of the sale.

Section 80. Contracts.

(a) The land bank may, in its discretion, assign contracts for supervision and coordination to the successful bidder for any subdivision of work for which the land bank receives bids. Any construction, demolition, renovation, and reconstruction contract awarded by the land bank shall contain any other terms and conditions as the land bank may deem desirable.

(b) The land bank should award contracts, whenever possible under subsection (c) of this Section, to locally-owned and staffed, or minority-owned construction, demolition, renovation, and reconstruction companies, in order maximize the employment of community residents.

(c) The land bank shall not award any construction, demolition, renovation, and reconstruction contract greater than $10,000 except to the lowest bidder who, in the opinion of the land bank, is qualified to perform the work required and who is responsible and reliable. The land bank may, however, reject any or all bids or waive any informality in a bid if it believes that the public interest will be promoted by that rejection of the bid. The land bank may reject any bid, if, in its judgment, the business and technical organization, plant, resources, financial standing, or experience of the bidder justifies such rejection in view of the work to be performed.

Section 85. Existing land banks. This Act shall not apply to any land bank in existence before the effective date of this Act.