Illinois General Assembly - Full Text of HB4077
Illinois General Assembly

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Full Text of HB4077  99th General Assembly




State of Illinois
2015 and 2016


Introduced , by Rep. Jehan A. Gordon-Booth


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.

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1    AN ACT concerning land banks.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the Land
5Bank Act.
6    Section 5. Legislative intent.
7    The General Assembly finds and declares that Illinois'
8communities are important to the social and economic vitality
9of the State. Whether urban, suburban, or rural, many
10communities are struggling to cope with vacant, abandoned, and
11tax-delinquent properties. Evidence demonstrates that a
12persistently high rate of vacant lots and structures harms the
13safety and economic strength of individual communities and
14neighborhoods within the State of Illinois.
15    There is a crisis in many cities and their metropolitan
16areas caused by disinvestment in real property and resulting in
17a significant amount of vacant and abandoned property. This
18condition of vacant and abandoned property represents lost
19revenue to local governments and large costs ranging from
20demolition, effects of safety hazards, and spreading
21deterioration of neighborhoods, including resulting mortgage
23    The need exists to strengthen and revitalize the economy of



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1the State and its units of local government by solving the
2problems of vacant and abandoned property in a coordinated
3manner and to foster the development of such property and
4promote economic growth. These problems may include multiple
5taxing jurisdictions lacking common policies, ineffective
6property inspection, code enforcement and property
7rehabilitation support, lengthy or inadequate foreclosure
8proceedings, and lack of coordination and resources to support
9economic revitalization.
10    There is an overriding public need to confront the problems
11caused by vacant, abandoned, and tax-delinquent properties
12through the creation of new tools available to communities
13throughout Illinois enabling them to turn vacant spaces into
14vibrant places. Land banks are one of the tools that can be
15used by communities to facilitate the return of vacant,
16abandoned, and tax-delinquent properties to productive use.
17    The primary focus of land bank operations is the
18acquisition of real property that is tax delinquent, tax
19foreclosed, vacant, or abandoned, and the use of tools
20authorized in this Act to eliminate the harms and liabilities
21caused by such properties. A land bank must ensure that
22communities affected by vacant land have substantial and
23meaningful involvement in decisions relating to those
24communities, with the community involvement directing the land
25bank's governance, structure, and operations. The State
26recognizes public health and safety as an integral part of



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1neighborhood stabilization and development; therefore, a land
2bank should promote development that improves health and access
3to health care within all communities and neighborhoods.
4    Section 10. Definitions. As used in this Act, unless the
5context clearly indicates otherwise:
6    "Board of directors" or "board" means the board of
7directors of a land bank.
8    "Land bank" means a land bank established as not-for-profit
9corporation and in accordance with the provisions of this Act
10and under the General Not For Profit Corporation Act of 1986.
11    "Foreclosing governmental unit" shall mean "taxing
12district" as defined in Section 1-150 of the Property Tax Code.
13    "Unit of local government" means a municipality, township,
14or county.
15    "School district" means a school district as defined under
16the School District Intergovernmental Cooperation Renewable
17Energy Act.
18    "Real property" means lands, lands under water, structures
19and any and all easements, air rights, franchises, and
20incorporeal hereditaments and every estate and right therein,
21legal and equitable, including terms for years and liens by way
22of judgment, mortgage or otherwise, and any and all fixtures
23and improvements located thereon.
24    "Brownfields site" or "brownfield" mean a parcel of real
25property, or a portion of the parcel, that has actual or



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1perceived contamination and an active potential for
3    Section 12. Intergovernmental agreements. Any one or more
4public agencies may contract with any one or more other public
5agencies to perform any governmental service, activity, or
6undertaking or to combine, transfer, or exercise any powers,
7functions, privileges, or authority which any of the public
8agencies entering into the contract is authorized by law to
9perform, provided that such contract shall be approved by the
10governing bodies of each party to the contract and except where
11specifically and expressly prohibited by law. Such contract
12shall set forth fully the purposes, powers, rights, objectives
13and responsibilities of the contracting parties.
14    Section 15. Creation and existence.
15    (a) Any foreclosing governmental unit may create a land
16bank by ordinance or resolution specifying the following:
17        (1) the name of the land bank;
18        (2) the number of members of the board of directors,
19    which shall consist of an odd number of members, and shall
20    be not less than 5 members nor more than 11 members;
21        (3) the individuals to serve as the initial members of
22    the board of directors, and the length of terms for which
23    they are to serve;
24        (4) the qualifications of members of the board under



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1    subsection (d) of Section 20;
2        (5) the manner of selection or appointment, and terms
3    of office of members of the board;
4        (6) the articles of incorporation for the land bank,
5    which shall be filed with the Secretary of State in
6    accordance with the procedures set forth in this Act; and
7        (7) the land bank's website URL, which shall include:
8    (i) an up-to-date inventory of property owned by the land
9    bank; (ii) a record of all property conveyed by the land
10    bank to other parties, including, but not limited to, the
11    sale price for which the property was conveyed, the party
12    to whom the property was conveyed, a summary of any terms
13    and conditions of the conveyance, including the intended
14    use the property, and whether the sales price was less than
15    the fair market value; and (iii) the lank bank's policies,
16    strategic plans, and annual performance reports; the land
17    bank shall provide a mechanism through which individuals
18    may request and receive ongoing notifications as to changes
19    in the status of any property owned by the land bank.
20    (b) Two or more foreclosing governmental units may enter
21into an intergovernmental agreement that creates a single land
22bank to act on behalf of both foreclosing governmental units.
23The intergovernmental agreement shall be authorized by and be
24in accordance with the provisions of subsection (a) of this
25Section. The agreement shall include provisions for
26dissolution of the land bank.



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1    (c) Any foreclosing governmental units and any other unit
2of local government may enter into an intergovernmental
3agreement that creates a single land bank to act on behalf of
4the foreclosing governmental unit and the unit of local
5government. The intergovernmental agreement between the
6foreclosing governmental unit and the unit of local government
7shall be in accordance with the provisions of subsection (a) of
8this Section. The agreement shall include provisions for
9dissolution of the land bank.
10    (d) Except when a land bank is created under subsection (b)
11or (c) of this Section, a county creating a land bank shall
12have the power to acquire real property only in those portions
13of the county located outside of the geographical boundaries of
14any other land bank created by any other foreclosing
15governmental unit located partially or wholly within the
17    (e) A school district may participate in a land bank under
18an intergovernmental agreement with the foreclosing
19governmental unit that creates the land bank. Any such
20intergovernmental agreement between a foreclosing governmental
21unit and a school district shall specify the membership, if
22any, of such school district on the board of directors of the
23land bank and the actions of the land bank that are subject to
24approval by the school district.
25    (f) Each land bank created under this Act shall be a
26not-for-profit corporation, and shall have permanent and



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1perpetual duration until terminated and dissolved in
2accordance with the provisions of Section 60.
3    (g) The Auditor General shall have the authority to audit
4any land bank under this Act.
5    Section 20. Board of directors.
6    (a) The initial size of the board shall be determined in
7accordance with Section 15. Unless restricted by the actions or
8agreements specified in Section 15, the provisions of this
9Section shall apply.
10    The size of the board may be adjusted in accordance with
11by-laws of the land bank.
12    (b) In the event that a land bank is created under an
13intergovernmental agreement in accordance with Section 15,
14such intergovernmental agreement shall meet the requirements
15of subsection (a) of Section 15, provided that each foreclosing
16governmental unit shall have at least one appointment to the
18    (c) Any public officer shall be eligible to serve as a
19board member and the acceptance of the appointment shall
20neither terminate nor impair such public office. For purposes
21of this Section, "public officer" shall mean a person who is
22elected to an office representing a unit of local government.
23Any employee or appointed officer of a unit of local government
24shall be eligible to serve as a board member.
25    (d) Board members shall: (1) include individuals with



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1expertise in relevant areas, including, but not limited to,
2community planning, environmental health, public health, and
3publicly accessible open space; (2) live or work within the
4State; and (3) have particular knowledge of conditions and
5needs in neighborhoods with significant rates of vacant, or
6publicly-owned properties. One-fifth of the Board membership
7shall be comprised of community residents or community members
8from existing grassroots or community-based organizations.
9These members shall have particular knowledge of conditions and
10needs in communities with significant rates of vacant or
11publicly-owned properties.
12    (e) The members of the board of directors shall select
13annually from among themselves a chairman, vice-chairman,
14treasurer, and such other officers as the board may determine,
15and shall establish their duties as may be regulated by rules
16adopted by the board.
17    (f) The board shall by rule establish requirements
18concerning the attendance and participation of members in its
19meetings, both regular and special. The rules may prescribe a
20procedure whereby, if any member fails to comply with the
21rules, that member may be disqualified and removed
22automatically from office by a majority vote of the other
23members of the board, and that member's position shall be
24vacant as of the first day of the next calendar month. Any
25person removed under the provisions of this subsection (f)
26shall be ineligible for reappointment to the board, unless such



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1reappointment is confirmed unanimously by the board.
2    (g) A vacancy on the board shall be filled in the same
3manner as the original appointment.
4    (h) Board members shall serve without compensation, shall
5have the power to organize and reorganize the executive,
6administrative, clerical, and other departments of the land
7bank, and to fix the duties, powers, and compensation of all
8employees, agents, and consultants of the land bank. The board
9may reimburse any member for reasonable expenses actually
10incurred in the performance of duties on behalf of the land
12    (i) The board shall meet in regular session according to a
13schedule adopted by the board, and also shall meet in special
14session as convened by the chairman or upon written notice
15signed by a majority of the members.
16    (j) A majority of the members of the board, not including
17vacancies, shall constitute a quorum for the conduct of
18business. All actions of the board shall be approved by the
19affirmative vote of a majority of the members of that board
20present and voting, provided, however, that no action of the
21board shall be authorized on the following matters, unless
22approved by a majority of the total board membership:
23        (1) adoption of by-laws and other rules and regulations
24    for conduct of the land bank's business;
25        (2) hiring or firing of any employee or contractor of
26    the land bank; this function may, by majority vote of the



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1    total board membership, be delegated to a specified officer
2    or committee of the land bank, under such terms and
3    conditions, and to the extent, that the board may specify;
4        (3) the incurring of debt;
5        (4) adoption or amendment of the annual budget; and
6        (5) sale, lease, encumbrance, or alienation of real
7    property, improvements, or personal property.
8    (k) Members of a board shall not be liable personally on
9the bonds or other obligations of the land bank, and the rights
10of creditors shall be solely against such land bank.
11    (l) Members of the board shall not be permitted to vote by
12proxy. Any member may request a recorded vote on any resolution
13or action of the land bank.
14    Section 25. Staff. A land bank may employ a secretary, an
15executive director, its own counsel and legal staff, and such
16technical experts, and such other agents and employees,
17permanent or temporary, as it may require, and may determine
18the qualifications and fix the compensation and benefits of
19such persons. A land bank may also enter into contracts and
20agreements with units of local government for staffing services
21to be provided to the land bank by units of local government or
22agencies or departments thereof, or for a land bank to provide
23such staffing services to units of local government or agencies
24or departments thereof.



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1    Section 30. Powers and responsibilities.
2    (a) A land bank shall be incorporated as a not-for-profit
3corporation under Illinois law. The land bank's powers shall
4include all powers necessary to carry out and effectuate the
5purposes and provisions of this Act, provided there is
6meaningful community involvement regarding decisions that
7impact those communities. The land bank shall have the
8following powers, in addition to those otherwise granted:
9        (1) to adopt, amend, and repeal bylaws for the
10    regulation of its affairs and the conduct of its business;
11        (2) to sue and be sued in its own name and plead and be
12    impleaded in all civil actions, including, but not limited
13    to, actions to clear title to property of the land bank;
14        (3) to adopt a seal and to alter the same at pleasure;
15        (4) to make contracts, give guarantees and incur
16    liabilities, borrow money at such rates of interest as the
17    land bank may determine;
18        (5) to issue negotiable revenue bonds and notes
19    according to the provisions of this Act;
20        (6) to procure insurance or guarantees from the State
21    or federal government of the payments of any debts or
22    portion of debt incurred by the land bank, and to pay
23    premiums in connection with such insurance;
24        (7) to enter into contracts and other instruments
25    necessary to the performance of its duties and the exercise
26    of its powers;



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1        (8) to enter into contracts and other instruments
2    necessary to the performance of functions by the land bank
3    on behalf of units of local government or agencies or
4    departments of units of local government, or the
5    performance by units of local government or agencies or
6    departments of units of local government of functions on
7    behalf of the land bank;
8        (9) to make and execute contracts and other instruments
9    necessary to the exercise of the powers of the land bank;
10    and any contract or instrument when signed by the chairman
11    or vice-chairman of the land bank, or by an authorized use
12    of their facsimile signatures, and by the secretary or
13    assistant secretary, or, treasurer or assistant treasurer
14    of the land bank, or by an authorized use of their
15    facsimile signatures, shall be held to have been properly
16    executed for and on its behalf;
17        (10) to procure insurance against losses in connection
18    with the real property, assets, or activities of the land
19    bank;
20        (11) to invest money of the land bank, at the
21    discretion of the board of directors, in instruments,
22    obligations, securities, or property determined proper by
23    the board of directors, and name and use depositories for
24    its money;
25        (12) to enter into contracts for the management of, the
26    collection of rent from, or the sale of real property of



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1    the land bank;
2        (13) to design, develop, construct, demolish,
3    reconstruct, rehabilitate, renovate, relocate, and
4    otherwise improve real property or rights or interests in
5    real property;
6        (14) to fix, charge, and collect rents, fees, and
7    charges for the use of real property of the land bank and
8    for services provided by the land bank;
9        (15) to grant or acquire a license, easement, lease (as
10    lessor or as lessee), or option with respect to real
11    property of the land bank;
12        (16) to enter into partnership, joint ventures, and
13    other collaborative relationships with units of local
14    government and other public and private entities for the
15    ownership, management, development, and disposition of
16    real property;
17        (17) to inventory vacant, abandoned and tax foreclosed
18    properties;
19        (18) to develop a redevelopment plan to be approved by
20    the foreclosing governmental unit or units;
21        (19) to be subject to building codes and zoning laws of
22    the corresponding unit of local government; and
23        (20) to enter in agreements with a foreclosing
24    governmental unit for the distribution of revenues to the
25    foreclosing governmental unit and school district.
26    (b) The land bank shall create a strategic plan every 3



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1years that sets forth the goals of the land bank. The plan
2shall also describe how the goals will be tracked and include
3action items necessary to achieve each goal. On an annual
4basis, the land bank shall prepare a performance report that
5includes, at a minimum, the following items: (i) a list of all
6properties acquired by the land bank; (ii) a list of all
7properties conveyed by the land bank that includes the price,
8name of the buyer, proposed use, a summary of any special terms
9and conditions of the conveyance, and whether the sale price
10was less than fair market value; and (iii) an analysis
11demonstrating the land bank's yearly progress towards
12fulfilling the goals set forth in the strategic plan, and if
13achievement or reasonable progress toward such goals is not
14achieved, a revised plan to be executed during the following
16    (c) A land bank shall neither possess nor exercise the
17power of eminent domain.
18    Section 35. Acquisition of property.
19    (a) The real property of a land bank and its income and
20operations are exempt from all taxation by the State of
21Illinois and by any of its political subdivisions.
22    (b) The land bank may acquire real property or interests in
23real property by gift, devise, transfer, exchange,
24foreclosure, purchase, or otherwise on terms and conditions and
25in a manner the land bank considers proper.



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1    (c) The land bank may acquire real property by purchase
2contracts, lease purchase agreements, installment sales
3contracts, and land contracts and may accept transfers from
4units of local government upon such terms and conditions as
5agreed to by the land bank and the unit of local government.
6Notwithstanding any other law to the contrary, any unit of
7local government may transfer to the land bank real property
8and interests in real property of the unit of local government
9on such terms and conditions and according to such procedures
10as determined by the unit of local government.
11    (d) The land bank shall maintain all of its real property
12in accordance with the laws and ordinances of the jurisdiction
13in which the real property is located.
14    (e) The land bank shall not own or hold real property
15located outside the jurisdictional boundaries of the
16foreclosing governmental unit or units which created the land
17bank; provided, however, that a land bank may be granted
18authority under an intergovernmental agreement with another
19unit of local government to manage and maintain real property
20located within the jurisdiction of such other unit of local
22    (f) Notwithstanding any other provision of law to the
23contrary, any unit of local government may convey to a land
24bank real property and interests in real property on such terms
25and conditions, form and substance of consideration, and
26procedures, all as determined by the transferring unit of local



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1government in its discretion.
2    (g) The acquisition of real property by a land bank under
3this Act, from entities other than political subdivisions,
4shall be limited to real property that is tax-delinquent,
5tax-foreclosed, vacant or abandoned; provided, however, that a
6land bank shall have authority to enter into agreements to
7purchase other real property consistent with an approved
8redevelopment plan.
9    (h) The land bank shall maintain and make available for
10public inspection a complete inventory of all property received
11by the land bank. Such inventory shall include: the location of
12the parcel; the purchase price, if any, for each parcel
13received; the current value assigned to the property for
14purposes of real property taxation; the amount, if any, owed to
15the locality for real property taxation; the identity of the
16transferor; and any conditions or restrictions applicable to
17the property.
18    (i) All parcels received by the land bank shall be listed
19on the received inventory established under subsection (h) of
20this Section within one week of acquisition and shall remain in
21such inventory for one week prior to disposition.
22    (j) Failure to comply with the requirements in subsections
23(h) and (i) of this Section with regard to any particular
24parcel shall cause such acquisition by the land bank to be null
25and void.



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1    Section 40. Disposition of property.
2    (a) The land bank shall hold in its own name all real
3property acquired by the land bank irrespective of the identity
4of the transferor of such property.
5    (b) The land bank shall maintain and make available for
6public inspection a complete inventory of all real property
7dispositions by the land bank. The inventory shall include a
8complete copy of the sales contract, including all terms and
9conditions, including, but not limited to, any form of
10compensation received by the land bank or any other party that
11is not included within the sale price.
12    (c) The land bank shall determine and set forth in policies
13and procedures of the board of directors, the general terms and
14conditions for consideration to be received by the land bank
15for the transfer of real property and interests in real
16property, which consideration may take the form of monetary
17payments and secured financial obligations, covenants and
18conditions related to the present and future use of the
19property, contractual commitments of the transferee, and any
20other forms of consideration as are consistent with State and
21local law.
22    (d) The land bank may convey, exchange, sell, transfer,
23lease as lessor, grant, release, demise, or pledge any and all
24interests in, upon, or to real property of the land bank.
25    (e) Upon creating a land bank, any foreclosing governmental
26unit shall determine, in consultation with the impacted



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1community, how the real property conveyed by the land bank will
2be used, selecting one or more of the following uses:
3        (1) neighborhood health clinics and centers,
4    hospitals, or urgent care clinics;
5        (2) services and enrichment facilities, such as senior
6    and community centers;
7        (3) community open space, green-space, or wildlife
8    conservation areas; or
9        (4) urban agriculture, such as community gardens and
10    composting sites.
11    (f) The land bank may offer properties at less than fair
12market value where the land bank finds that the proposed use
13would create beneficial community impact, such as: community
14facilities that provide needed services to residents;
15community open space; and any other specified uses established
16under subsection (e). The land bank shall allow applications
17for less than fair market value, including nominal disposition,
18for any property owned by the land bank. In calculating a
19reduced sales price, the land bank shall consider the benefit
20provided by the proposed use and, if applicable, the amount of
21discount needed to make the project both initially financially
22feasible and continually sustainable.
23    (g) A foreclosing governmental unit may require that any
24particular form of disposition of real property, or any
25disposition of real property located within specified
26jurisdictions, be subject to voting and approval requirements



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1of the board of directors. Except and unless restricted or
2constrained in this manner, the board of directors may delegate
3to officers and employees the authority to enter into and
4execute agreements, instruments of conveyance, and all other
5related documents pertaining to the conveyance of real property
6by the land bank.
7    (h) All property dispositions shall be listed on the
8property disposition inventory established under subsection
9(b) of this Section within one week of disposition. Such
10records shall remain available for public inspection in the
11property disposition inventory indefinitely.
12    (i) Failure to comply with the requirements of subsection
13(h) of this Section shall subject the land bank to a civil
14penalty of $100 per violation up to a maximum of $10,000 for
15each parcel, recoverable in an action brought by the Attorney
16General or State's Attorney. The Attorney General or State's
17Attorney may also seek rescission of the real property
19    Section 45. Financing of land bank operations.
20    (a) A land bank may receive funding through grants and
21loans from the foreclosing governmental unit or units which
22created the land bank, from other units of local government,
23from the State, from the federal government, and from other
24public and private sources.
25    (b) A land bank may receive and retain payments for



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1services rendered, for rents and leasehold payments received,
2for consideration for disposition of real and personal
3property, for proceeds of insurance coverage for losses
4incurred, for income from investments, and for any other asset
5and activity lawfully permitted to a land bank under this Act.
6    (c) Upon the adoption of an ordinance or resolution by unit
7of local government, school district, or any taxing district,
850% of the real property taxes collected on any specific parcel
9of real property identified by such unit of local government,
10school district, or any taxing jurisdiction may be remitted to
11the land bank in accordance with procedures established by
12rules adopted by the Department of Revenue. Such allocation of
13real property tax revenues shall begin with the first taxable
14year following the date of conveyance and shall continue for a
15period of 5 years.
16    Section 50. Bonds.
17    (a) Any foreclosing governmental unit or school district
18which receives funds from the Department of Revenue, including
19without limitation funds received pursuant to Sections 8-11-1,
208-11-1.4 or 8-11-5 of the Illinois Municipal Code, the Home
21Rule County Retailers' Occupation Tax Act or the Home Rule
22County Service Occupation Tax Act, Section 5.01 of the Local
23Mass Transit District Act, Sections 2 or 12 of "An Act in
24relation to State revenue sharing with local governmental
25entities", approved July 31, 1969, from the Department of



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1Transportation pursuant to Section 8 of the Motor Fuel Tax Law,
2or from the State Superintendent of Education (directly or
3indirectly through regional superintendents of schools)
4pursuant to Article 18 of The School Code, or any foreclosing
5governmental unit or school district which receives other funds
6which are at any time in the custody of the State Treasurer,
7the State Comptroller, the Department of Revenue, the
8Department of Transportation or the State Superintendent of
9Education may, by appropriate proceedings, pledge to a land
10bank which it has created by ordinance or resolution, or with
11which it has an intergovernmental agreement, any or all of such
12receipts to the extent that such receipts are necessary to
13provide revenues to pay the principal of, premium, if any, and
14interest on, and other fees related to, or to secure, any bonds
15issued by the land bank. Any pledge of such receipts (or any
16portion thereof) shall constitute a first and prior lien
17thereon and shall be binding from the time the pledge is made.
18    (b) Upon receipt of a certified copy of proceedings under
19subsection (a) by the State Treasurer, the State Comptroller,
20the Department of Revenue, the Department of Transportation or
21the State Superintendent of Education, as the case may be, such
22Department or State Superintendent shall direct the State
23Comptroller and State Treasurer to pay to, or on behalf of, the
24land bank or such other entity (including, without limitation,
25any trustee) all or such portion of the pledged receipts from
26the Department of Revenue, or the Department of Transportation



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1or the State Superintendent of Education (directly or
2indirectly through regional superintendents of schools), as
3the case may be, sufficient to pay the principal of and
4premium, if any, and interest on, and other fees related to,
5the local governmental securities for which the pledge was
6made. The proceedings shall constitute authorization for a
7directive to the State Comptroller to cause orders to be drawn
8and to the State Treasurer to pay in accordance with the
9directive. To the extent that the land bank or its designee
10notifies the Department of Revenue, the Department of
11Transportation or the State Superintendent of Education, as the
12case may be, that the foreclosing governmental unit or school
13district has previously paid to the land bank or its designee
14the amount of any principal, premium, interest and fees payable
15from such pledged receipts, the State Comptroller shall cause
16orders to be drawn and the State Treasurer shall pay such
17pledged receipts to the foreclosing governmental unit or school
18district as if they were not pledged receipts. To the extent
19that such receipts are pledged and paid to the land bank or
20such other entity, any taxes which have been levied or fees or
21charges assessed pursuant to law on account of the issuance of
22such bonds issued by the land bank shall be paid to the
23foreclosing governmental unit or school district and may be
24used for the purposes which the pledged receipts would have
25been used.
26    (c) Any such foreclosing governmental unit or school



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1district may, by such proceedings, direct that such pledged
2receipts payable to such foreclosing governmental unit or
3school district be paid to the land bank or such other entity
4(including without limitation any trustee) upon a default in
5the payment of any principal of, premium, if any, or interest
6on, or fees relating to, any of the bonds issued by the land
7bank which have been sold or delivered to the land bank or its
8designee or any of the bonds issued by the land bank which have
9been sold or delivered to the land bank or its designee and
10which are secured by such lease rental payments. If such local
11governmental security is in default as to the payment of
12principal thereof, premium, if any, or interest thereon, or
13fees relating thereto, to the extent that the State Treasurer,
14the State Comptroller, the Department of Revenue, the
15Department of Transportation or the State Superintendent of
16Education (directly or indirectly through regional
17superintendents of schools) shall be the custodian at any time
18of any other available funds or moneys pledged to the payment
19of such bonds issued by the land bank under this Section and
20due or payable to such a foreclosing governmental unit or
21school district at any time subsequent to written notice to the
22State Comptroller and State Treasurer from the land bank or any
23entity acting on behalf of the land bank (including, without
24limitation, any trustee) to the effect that such foreclosing
25governmental unit or school district has not paid or is in
26default as to payment of the principal of, premium, if any, or



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1interest on, or fees relating to, any local government security
2sold or delivered to the land bank or any such entity
3(including, without limitation, any trustee) or has not paid or
4is in default as to the payment of such lease rental payments
5securing the payment of the principal of, premiums, if any, or
6interest on, or other fees relating to, any local government
7security sold or delivered to the land bank or such other
8entity (including, without limitation, any trustee):
9        (1) The State Comptroller and the State Treasurer shall
10    withhold the payment of such funds or moneys from such
11    foreclosing governmental unit or school district until the
12    amount of such principal, premium, if any, interest or fees
13    then due and unpaid has been paid to the land bank or any
14    such entity (including, without limitation, any trustee),
15    or the State Comptroller and the State Treasurer have been
16    advised that arrangements, satisfactory to the land bank or
17    such entity, have been made for the payment of such
18    principal, premium, if any, interest and fees; and
19        (2) Within 10 days after a demand for payment by the
20    land bank or such entity given to such foreclosing
21    governmental unit or school district, the State Treasurer
22    and the State Comptroller, the State Treasurer shall pay
23    such funds or moneys as are legally available therefor to
24    the land bank or such entity for the payment of principal
25    of, premium, if any, or interest on, or fees relating to,
26    such bonds issued by the land bank. The land bank or any



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1    such entity may carry out this Section and exercise all the
2    rights, remedies and provisions provided or referred to in
3    this Section.
4    (d) Upon the sale or delivery of any local government
5securities of the land bank or its designee, the foreclosing
6governmental unit or school district which issued such local
7government securities shall be deemed to have agreed that upon
8its failure to pay interest or premium, if any, on, or
9principal of, or fees relating to, the local government
10securities sold or delivered to the land bank or any entity
11acting on behalf of the land bank (including, without
12limitation, any trustee) when payable, all statutory defenses
13to nonpayment are thereby waived. Upon a default in the payment
14of principal of or interest on any bonds issued by the land
15bank and sold by the land bank or its designee, and upon demand
16on the foreclosing governmental unit or school district for
17payment, if the bonds issued by the land bank are payable from
18property taxes and funds are not legally available in the
19treasury of the foreclosing governmental unit or school
20district to make payment, an action in mandamus for the levy of
21a tax by the foreclosing governmental unit or school district
22to pay the principal of or interest on the bonds issued by the
23land bank shall lie, and the land bank or such entity shall be
24constituted a holder or owner of the bonds issued by the land
25bank as being in default. Upon the occurrence of any failure or
26default with respect to any bonds issued by the land bank, the



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1land bank or such entity may thereupon avail itself of all
2remedies, rights and provisions of law applicable in the
3circumstances, and the failure to exercise or exert any rights
4or remedies within a time or period provided by law may not be
5raised as a defense by the foreclosing governmental unit or
6school district.
7    (e) The issuance of bonds under this Section is deemed an
8essential public and governmental purpose. Interest on the
9bonds issued under this Section after the effective date of
10this Act is exempt from taxation within this State. For
11purposes of Section 250 of the Illinois Income Tax Act, the
12exemption of the interest from bonds granted under this Section
13shall terminate after all of the bonds have been paid. The
14amount of such income that shall be added and then subtracted
15on the Illinois income tax return of a taxpayer, pursuant to
16Section 203 of the Illinois Income Tax Act, from federal
17adjusted gross income or federal taxable income in computing
18Illinois base income shall be the interest net of any bond
19premium amortization.
20    Section 55. Public records and public meetings.
21    (a) The board shall cause minutes and a record to be kept
22of all its proceedings. Except as otherwise provided in this
23Section, the land bank shall be subject to the Open Meetings
24Act and the Freedom of Information Act.
25    (b) The board of the land bank shall hold quarterly public



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1meetings, shall make each meeting's agenda available on the
2land bank's website at least 10 days in advance of each
3meeting, and shall allow for public comment on matters under
4deliberation at each such public meeting. Provided, however,
5the quarterly requirement shall not preclude the board of the
6land bank from holding public meetings as often as it deems
8    (c) A land bank shall hold a public hearing prior to
9financing or issuance of bonds. The land bank shall schedule
10and hold a public hearing and solicit public comment. After the
11conclusion of the public hearing and comments, the land bank
12shall consider the results of the public hearing and comments
13with respect to the proposed actions. This consideration by the
14land bank shall include the accommodation of the public
15interest with respect to such actions. If an accommodation is
16deemed in the best interest of the community proposed actions
17shall include that accommodation.
18    (d) In addition to any other report required by this Act,
19the land bank, through its chairperson, shall annually deliver,
20in oral and written form, a report to the units of local
21government in which the land bank is located. This report shall
22be presented by March 15 of each year to the governing body or
23board of the units of local government. The report shall
24describe in detail the projects undertaken by the land bank
25during the past year, the moneys expended by the land bank
26during the past year, and the administrative activities of the



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1land bank during the past year. At the conclusion of the
2report, the chairperson of the land bank shall be prepared to
3answer the questions of the units of local government with
4respect to the projects undertaken by the authority during the
5past year, the moneys expended by the unit of local government
6during the past year, and the administrative activities of the
7units of local government during the past year.
8    Section 60. Dissolution of land bank. A land bank may be
9dissolved as a not-for-profit corporation 60 calendar days
10after an affirmative resolution approved by two-thirds of the
11membership of the board of directors. Sixty calendar days
12advance written notice of consideration of a resolution of
13dissolution shall be given to the foreclosing governmental unit
14or units that created the land bank, shall be published in a
15local newspaper of general circulation, and shall be sent
16certified mail to the trustee of any outstanding bonds of the
17land bank. Upon dissolution of the land bank, all real
18property, personal property, and other assets of the land bank
19shall become the assets of the foreclosing governmental unit or
20units that created the land bank. In the event that 2 or more
21foreclosing governmental units create a land bank in accordance
22with Section 15, the withdrawal of one or more foreclosing
23governmental units shall not result in the dissolution of the
24land bank unless the intergovernmental agreement so provides
25and there is no foreclosing governmental unit that desires to



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1continue the existence of the land bank.
2    Section 65. Conflicts of interest. No member of the board
3or employee of a land bank shall acquire any interest, direct
4or indirect, in real property of the land bank, in any real
5property to be acquired by the land bank, or in any real
6property to be acquired from the land bank. No member of the
7board or employee of a land bank shall have any interest,
8direct or indirect, in any contract or proposed contract for
9materials or services to be furnished or used by a land bank.
10The board may adopt supplemental regulations addressing
11potential conflicts of interest and ethical guidelines for
12members of the board and land bank employees.
13    Section 70. Construction. The provisions of this Act shall
14be construed liberally to effectuate the legislative intent and
15the purposes as complete and independent authorization for the
16performance of each and every act authorized by this Act, and
17all powers granted shall be broadly interpreted to effectuate
18the intent and purposes and not as a limitation of powers.
19Except as otherwise expressly set forth in this Act, in the
20exercise of its powers and duties under this Act and its powers
21relating to property held by the land bank, the land bank shall
22have complete control as fully and completely as if it
23represented a private property owner and shall not be subject
24to restrictions imposed by the charter, ordinances, or



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1resolutions of a unit of local government.
2    Section 75. Delinquent property tax enforcement. Units of
3local government may enter into contracts to sell some or all
4of the delinquent tax liens held by the unit of local
5government to a land bank, subject to the following conditions:
6    (a) The consideration to be paid may be more or less than
7the face amount of the tax liens sold.
8    (b) Property owners shall be given advance notice of such
9sale in the same form and manner as is provided by Section
1021-135 of the Property Tax Code. Failure to provide such notice
11or the failure of the addressee to receive the same shall not
12in any way affect the validity of any sale of a tax lien or tax
13liens or the validity of the taxes or interest prescribed by
15    (c) The unit of local government shall set the terms and
16conditions of the contract of sale.
17    (d) Thirty days before the commencement of any foreclosure
18action, the land bank must provide to the unit of local
19government a list of liens to be foreclosed. The unit of local
20government may, at its sole option and discretion, repurchase a
21lien or liens on the foreclosure list from the land bank. The
22repurchase price shall be the amount of the lien or liens plus
23any accrued interest and collection fees incurred by the land
24bank. The land bank shall provide the foreclosure list to the
25unit of local government, along with the applicable repurchase



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1price of each lien, by certified mail, and the unit of local
2government shall have 30 days from receipt to notify the land
3bank of its option to purchase one or more of the liens. If the
4unit of local government opts to purchase the lien, it shall
5provide payment within 30 days of receipt of the repurchase
6price of said lien or liens. If the unit of local government
7shall fail to opt to repurchase the lien or liens the land bank
8shall have the right to commence a foreclosure action
10    (e) The sale of a tax lien under this Act shall not shorten
11the otherwise applicable redemption period or change the
12otherwise applicable interest rate.
13    (f) After sale, the purchaser shall comply with the
14provisions for notice of sale, redemption rights, notice of
15expiration of period of redemption, and issuance of deed in
16accordance with Article 22 of the Property Tax Code.
17    (g) The provisions of Section 21-72 of the Property Tax
18Code shall apply so far as is practicable to a contract for the
19sale of tax liens under this Act.
20    (h) If the court orders a public sale under Article 21 of
21Division 3.5 of the Property Tax Code, and the purchaser of the
22property is the land bank, then the form, substance, and timing
23of the land bank's payment of the sales price may be according
24to such agreement as is mutually acceptable to the plaintiff
25and the land bank. The obligation of the land bank to perform
26in accordance with such agreement shall be deemed to be in full



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1satisfaction of the tax claim which was the basis for the
3    (i) Notwithstanding any other provision of law to the
4contrary, in the event that no unit of local government elects
5to tender a bid at a judicially ordered sale under the
6provisions of Article 21 of Division 3.5 of the Property Tax
7Code, the land bank may tender a bid at such sale in an amount
8equal to the total amount of all municipal claims and liens
9which were the basis for the judgment. In the event of such
10tender by the land bank the property shall be deemed sold to
11the land bank regardless of any bids by any other third
12parties. The bid of the land bank shall be paid as to its form,
13substance, and timing according to such agreement as is
14mutually acceptable to the plaintiff and the land bank. The
15obligation of the land bank to perform in accordance with such
16agreement shall be deemed to be in full satisfaction of the
17municipal claim which was the basis for the judgment. The land
18bank, as purchaser at such sale, shall take and forever
19thereafter have, an absolute title to the property sold, free
20and discharged of all tax and municipal claims, liens,
21mortgages, charges, and estates of any kind. The deed to the
22land bank shall be executed, acknowledged, and delivered within
2330 days of the sale.
24    Section 80. Contracts.
25    (a) The land bank may, in its discretion, assign contracts



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1for supervision and coordination to the successful bidder for
2any subdivision of work for which the land bank receives bids.
3Any construction, demolition, renovation, and reconstruction
4contract awarded by the land bank shall contain any other terms
5and conditions as the land bank may deem desirable.
6    (b) The land bank should award contracts, whenever possible
7under subsection (c) of this Section, to locally-owned and
8staffed, or minority-owned construction, demolition,
9renovation, and reconstruction companies, in order maximize
10the employment of community residents.
11    (c) The land bank shall not award any construction,
12demolition, renovation, and reconstruction contract greater
13than $10,000 except to the lowest bidder who, in the opinion of
14the land bank, is qualified to perform the work required and
15who is responsible and reliable. The land bank may, however,
16reject any or all bids or waive any informality in a bid if it
17believes that the public interest will be promoted by that
18rejection of the bid. The land bank may reject any bid, if, in
19its judgment, the business and technical organization, plant,
20resources, financial standing, or experience of the bidder
21justifies such rejection in view of the work to be performed.
22    Section 85. Existing land banks. This Act shall not apply
23to any land bank in existence before the effective date of this