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90_HB1379
SEE INDEX
Amends the Tax Increment Allocation Redevelopment Act in
the Illinois Municipal Code. Requires municipalities to
deposit 20% of that portion of the annual property tax
increment generated by a district that is not required to pay
interest on bonds that have been issued for that district and
20% of any bond revenues generated for the district into a
special Affordable Housing Fund. Requires the municipality
to use the Affordable Housing Fund revenues to preserve or
renovate existing low and very low income housing within the
district, to finance new construction or rehabilitation of
existing buildings or structures to provide replacement
housing to low and very low income households, to maintain
the affordability of existing, new, or replacement low or
very low income housing, to pay for relocation costs of those
households that choose to accept relocation, and to construct
low or very low income housing adjacent to the district,
elsewhere in the municipality, or elsewhere in the State.
Requires a municipality to construct replacement housing for
all low and very low income households living within a
district before taking any action that would cause those
households to be displaced from their current residences.
Requires municipalities to use affordable housing funds not
dedicated to low income housing replacement, improvement, or
preservation in a manner that meets the housing demands of
the range of low and very low income housing within the
municipality. Provides that the municipality shall spend
affordable housing funds within the district unless the
district does not currently or will not after redevelopment
contain residential uses. Grants municipalities the
authority to spend funds deposited in the affordable housing
fund outside the district subject to certain guidelines.
Allows the municipality to spend up to 70% of affordable
housing funds outside the district. Makes other changes.
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1 AN ACT to amend the Illinois Municipal Code by changing
2 Sections 11-74.4-2, 11-74.4-3, 11-74.4-4, 11-74.4-5, and
3 11-74.4-8a.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Municipal Code is amended by
7 changing Sections 11-74.4-2, 11-74.4-3, 11-74.4-4, 11-74.4-5,
8 and 11-74.4-8a as follows:
9 (65 ILCS 5/11-74.4-2) (from Ch. 24, par. 11-74.4-2)
10 Sec. 11-74.4-2. (a) It is hereby found and declared that
11 there exist in many municipalities within this State blighted
12 conservation and industrial park conservation areas, as
13 defined herein; that the conservation areas are rapidly
14 deteriorating and declining and may soon become blighted
15 areas if their decline is not checked; that the stable
16 economic and physical development of the blighted areas,
17 conservation areas and industrial park conservation areas is
18 endangered by the presence of blighting factors as manifested
19 by progressive and advanced deterioration of structures, by
20 the overuse of housing and other facilities, by a lack of
21 physical maintenance of existing structures, by obsolete and
22 inadequate community facilities and a lack of sound community
23 planning, by obsolete platting, diversity of ownership,
24 excessive tax and special assessment delinquencies, by the
25 growth of a large surplus of workers who lack the skills to
26 meet existing or potential employment opportunities or by a
27 combination of these factors; that as a result of the
28 existence of blighted areas and areas requiring conservation,
29 there is an excessive and disproportionate expenditure of
30 public funds, inadequate public and private investment,
31 unmarketability of property, growth in delinquencies and
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1 crime, and housing and zoning law violations in such areas
2 together with an abnormal exodus of families and businesses
3 so that the decline of these areas impairs the value of
4 private investments and threatens the sound growth and the
5 tax base of taxing districts in such areas, and threatens the
6 health, safety, morals, and welfare of the public and that
7 the industrial park conservation areas include under-utilized
8 areas which, if developed as industrial parks, will promote
9 industrial and transportation activities, thereby reducing
10 the evils attendant upon involuntary unemployment and
11 enhancing the public health and welfare of this State.
12 (b) It is hereby found and declared that in order to
13 promote and protect the health, safety, morals, and welfare
14 of the public, that blighted conditions need to be eradicated
15 and conservation measures instituted, and that redevelopment
16 of such areas be undertaken; that to remove and alleviate
17 adverse conditions it is necessary to encourage private
18 investment and restore and enhance the tax base of the taxing
19 districts in such areas by the development or redevelopment
20 of project areas. The eradication of blighted areas and
21 treatment and improvement of conservation areas and
22 industrial park conservation areas by redevelopment projects
23 is hereby declared to be essential to the public interest.
24 (c) It is found and declared that the use of incremental
25 tax revenues derived from the tax rates of various taxing
26 districts in redevelopment project areas for the payment of
27 redevelopment project costs is of benefit to said taxing
28 districts for the reasons that taxing districts located in
29 redevelopment project areas would not derive the benefits of
30 an increased assessment base without the benefits of tax
31 increment financing, all surplus tax revenues are turned over
32 to the taxing districts in redevelopment project areas and
33 all said districts benefit from the removal of blighted
34 conditions, the eradication of conditions requiring
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1 conservation measures, and the development of industrial
2 parks.
3 (d) It is hereby found and declared that there is a
4 shortage of decent, safe, and sanitary affordable housing in
5 this State which has an impact on economic development within
6 the State as well as an impact on those residents of this
7 State who require affordable housing, and it is the policy of
8 the State that no development or redevelopment will be
9 undertaken pursuant to this Act if it results in a decrease
10 in the amount of such affordable housing available within the
11 State.
12 (e) It is hereby further found and declared that there
13 exists in many municipalities a pressing need for rental and
14 ownership housing that is affordable to low and very low
15 income households; that resources for the creation of such
16 housing are increasingly scarce; that municipal governments
17 have a responsibility and interest in making affordable
18 housing available to their citizenry; that the creation of a
19 redevelopment district and, in particular, a tax increment
20 financing district, should not lead to a reduction in a
21 municipality's stock of low and very low income housing; and
22 that revenue generated by the creation of a tax increment
23 finance district is an appropriate and desirable means for
24 meeting the demand for low and very low income affordable
25 housing.
26 (Source: P.A. 84-1090.)
27 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
28 Sec. 11-74.4-3. Definitions. The following terms,
29 wherever used or referred to in this Division 74.4 shall have
30 the following respective meanings, unless in any case a
31 different meaning clearly appears from the context.
32 (a) "Blighted area" means any improved or vacant area
33 within the boundaries of a redevelopment project area located
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1 within the territorial limits of the municipality where, if
2 improved, industrial, commercial and residential buildings or
3 improvements, because of a combination of 5 or more of the
4 following factors: age; dilapidation; obsolescence;
5 deterioration; illegal use of individual structures; presence
6 of structures below minimum code standards; excessive
7 vacancies; overcrowding of structures and community
8 facilities; lack of ventilation, light or sanitary
9 facilities; inadequate utilities; excessive land coverage;
10 deleterious land use or layout; depreciation of physical
11 maintenance; lack of community planning, is detrimental to
12 the public safety, health, morals or welfare, or if vacant,
13 the sound growth of the taxing districts is impaired by, (1)
14 a combination of 2 or more of the following factors: obsolete
15 platting of the vacant land; diversity of ownership of such
16 land; tax and special assessment delinquencies on such land;
17 flooding on all or part of such vacant land; deterioration of
18 structures or site improvements in neighboring areas adjacent
19 to the vacant land, or (2) the area immediately prior to
20 becoming vacant qualified as a blighted improved area, or (3)
21 the area consists of an unused quarry or unused quarries, or
22 (4) the area consists of unused railyards, rail tracks or
23 railroad rights-of-way, or (5) the area, prior to its
24 designation, is subject to chronic flooding which adversely
25 impacts on real property in the area and such flooding is
26 substantially caused by one or more improvements in or in
27 proximity to the area which improvements have been in
28 existence for at least 5 years, or (6) the area consists of
29 an unused disposal site, containing earth, stone, building
30 debris or similar material, which were removed from
31 construction, demolition, excavation or dredge sites, or (7)
32 the area is not less than 50 nor more than 100 acres and 75%
33 of which is vacant, notwithstanding the fact that such area
34 has been used for commercial agricultural purposes within 5
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1 years prior to the designation of the redevelopment project
2 area, and which area meets at least one of the factors
3 itemized in provision (1) of this subsection (a), and the
4 area has been designated as a town or village center by
5 ordinance or comprehensive plan adopted prior to January 1,
6 1982, and the area has not been developed for that designated
7 purpose.
8 (b) "Conservation area" means any improved area within
9 the boundaries of a redevelopment project area located within
10 the territorial limits of the municipality in which 50% or
11 more of the structures in the area have an age of 35 years or
12 more. Such an area is not yet a blighted area but because
13 of a combination of 3 or more of the following factors:
14 dilapidation; obsolescence; deterioration; illegal use of
15 individual structures; presence of structures below minimum
16 code standards; abandonment; excessive vacancies;
17 overcrowding of structures and community facilities; lack of
18 ventilation, light or sanitary facilities; inadequate
19 utilities; excessive land coverage; deleterious land use or
20 layout; depreciation of physical maintenance; lack of
21 community planning, is detrimental to the public safety,
22 health, morals or welfare and such an area may become a
23 blighted area.
24 (c) "Industrial park" means an area in a blighted or
25 conservation area suitable for use by any manufacturing,
26 industrial, research or transportation enterprise, of
27 facilities to include but not be limited to factories, mills,
28 processing plants, assembly plants, packing plants,
29 fabricating plants, industrial distribution centers,
30 warehouses, repair overhaul or service facilities, freight
31 terminals, research facilities, test facilities or railroad
32 facilities.
33 (d) "Industrial park conservation area" means an area
34 within the boundaries of a redevelopment project area located
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1 within the territorial limits of a municipality that is a
2 labor surplus municipality or within 1 1/2 miles of the
3 territorial limits of a municipality that is a labor surplus
4 municipality if the area is annexed to the municipality;
5 which area is zoned as industrial no later than at the time
6 the municipality by ordinance designates the redevelopment
7 project area, and which area includes both vacant land
8 suitable for use as an industrial park and a blighted area or
9 conservation area contiguous to such vacant land.
10 (e) "Labor surplus municipality" means a municipality in
11 which, at any time during the 6 months before the
12 municipality by ordinance designates an industrial park
13 conservation area, the unemployment rate was over 6% and was
14 also 100% or more of the national average unemployment rate
15 for that same time as published in the United States
16 Department of Labor Bureau of Labor Statistics publication
17 entitled "The Employment Situation" or its successor
18 publication. For the purpose of this subsection, if
19 unemployment rate statistics for the municipality are not
20 available, the unemployment rate in the municipality shall be
21 deemed to be the same as the unemployment rate in the
22 principal county in which the municipality is located.
23 (f) "Municipality" shall mean a city, village or
24 incorporated town.
25 (g) "Initial Sales Tax Amounts" means the amount of
26 taxes paid under the Retailers' Occupation Tax Act, Use Tax
27 Act, Service Use Tax Act, the Service Occupation Tax Act, the
28 Municipal Retailers' Occupation Tax Act, and the Municipal
29 Service Occupation Tax Act by retailers and servicemen on
30 transactions at places located in a State Sales Tax Boundary
31 during the calendar year 1985.
32 (g-1) "Revised Initial Sales Tax Amounts" means the
33 amount of taxes paid under the Retailers' Occupation Tax Act,
34 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
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1 Act, the Municipal Retailers' Occupation Tax Act, and the
2 Municipal Service Occupation Tax Act by retailers and
3 servicemen on transactions at places located within the State
4 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
5 of this Act.
6 (h) "Municipal Sales Tax Increment" means an amount
7 equal to the increase in the aggregate amount of taxes paid
8 to a municipality from the Local Government Tax Fund arising
9 from sales by retailers and servicemen within the
10 redevelopment project area or State Sales Tax Boundary, as
11 the case may be, for as long as the redevelopment project
12 area or State Sales Tax Boundary, as the case may be, exist
13 over and above the aggregate amount of taxes as certified by
14 the Illinois Department of Revenue and paid under the
15 Municipal Retailers' Occupation Tax Act and the Municipal
16 Service Occupation Tax Act by retailers and servicemen, on
17 transactions at places of business located in the
18 redevelopment project area or State Sales Tax Boundary, as
19 the case may be, during the base year which shall be the
20 calendar year immediately prior to the year in which the
21 municipality adopted tax increment allocation financing. For
22 purposes of computing the aggregate amount of such taxes for
23 base years occurring prior to 1985, the Department of Revenue
24 shall determine the Initial Sales Tax Amounts for such taxes
25 and deduct therefrom an amount equal to 4% of the aggregate
26 amount of taxes per year for each year the base year is prior
27 to 1985, but not to exceed a total deduction of 12%. The
28 amount so determined shall be known as the "Adjusted Initial
29 Sales Tax Amounts". For purposes of determining the
30 Municipal Sales Tax Increment, the Department of Revenue
31 shall for each period subtract from the amount paid to the
32 municipality from the Local Government Tax Fund arising from
33 sales by retailers and servicemen on transactions located in
34 the redevelopment project area or the State Sales Tax
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1 Boundary, as the case may be, the certified Initial Sales Tax
2 Amounts, the Adjusted Initial Sales Tax Amounts or the
3 Revised Initial Sales Tax Amounts for the Municipal
4 Retailers' Occupation Tax Act and the Municipal Service
5 Occupation Tax Act. For the State Fiscal Year 1989, this
6 calculation shall be made by utilizing the calendar year 1987
7 to determine the tax amounts received. For the State Fiscal
8 Year 1990, this calculation shall be made by utilizing the
9 period from January 1, 1988, until September 30, 1988, to
10 determine the tax amounts received from retailers and
11 servicemen pursuant to the Municipal Retailers' Occupation
12 Tax and the Municipal Service Occupation Tax Act, which shall
13 have deducted therefrom nine-twelfths of the certified
14 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
15 Amounts or the Revised Initial Sales Tax Amounts as
16 appropriate. For the State Fiscal Year 1991, this calculation
17 shall be made by utilizing the period from October 1, 1988,
18 to June 30, 1989, to determine the tax amounts received from
19 retailers and servicemen pursuant to the Municipal Retailers'
20 Occupation Tax and the Municipal Service Occupation Tax Act
21 which shall have deducted therefrom nine-twelfths of the
22 certified Initial Sales Tax Amounts, Adjusted Initial Sales
23 Tax Amounts or the Revised Initial Sales Tax Amounts as
24 appropriate. For every State Fiscal Year thereafter, the
25 applicable period shall be the 12 months beginning July 1 and
26 ending June 30 to determine the tax amounts received which
27 shall have deducted therefrom the certified Initial Sales Tax
28 Amounts, the Adjusted Initial Sales Tax Amounts or the
29 Revised Initial Sales Tax Amounts, as the case may be.
30 (i) "Net State Sales Tax Increment" means the sum of the
31 following: (a) 80% of the first $100,000 of State Sales Tax
32 Increment annually generated within a State Sales Tax
33 Boundary; (b) 60% of the amount in excess of $100,000 but not
34 exceeding $500,000 of State Sales Tax Increment annually
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1 generated within a State Sales Tax Boundary; and (c) 40% of
2 all amounts in excess of $500,000 of State Sales Tax
3 Increment annually generated within a State Sales Tax
4 Boundary. If, however, a municipality established a tax
5 increment financing district in a county with a population in
6 excess of 3,000,000 before January 1, 1986, and the
7 municipality entered into a contract or issued bonds after
8 January 1, 1986, but before December 31, 1986, to finance
9 redevelopment project costs within a State Sales Tax
10 Boundary, then the Net State Sales Tax Increment means, for
11 the fiscal years beginning July 1, 1990, and July 1, 1991,
12 100% of the State Sales Tax Increment annually generated
13 within a State Sales Tax Boundary; and notwithstanding any
14 other provision of this Act, for those fiscal years the
15 Department of Revenue shall distribute to those
16 municipalities 100% of their Net State Sales Tax Increment
17 before any distribution to any other municipality and
18 regardless of whether or not those other municipalities will
19 receive 100% of their Net State Sales Tax Increment. For
20 Fiscal Year 1999, and every year thereafter until the year
21 2007, for any municipality that has not entered into a
22 contract or has not issued bonds prior to June 1, 1988 to
23 finance redevelopment project costs within a State Sales Tax
24 Boundary, the Net State Sales Tax Increment shall be
25 calculated as follows: By multiplying the Net State Sales Tax
26 Increment by 90% in the State Fiscal Year 1999; 80% in the
27 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
28 60% in the State Fiscal Year 2002; 50% in the State Fiscal
29 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
30 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
31 and 10% in the State Fiscal Year 2007. No payment shall be
32 made for State Fiscal Year 2008 and thereafter.
33 Municipalities that issued bonds in connection with a
34 redevelopment project in a redevelopment project area within
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1 the State Sales Tax Boundary prior to July 29, 1991, shall
2 continue to receive their proportional share of the Illinois
3 Tax Increment Fund distribution until the date on which the
4 redevelopment project is completed or terminated, or the date
5 on which the bonds are retired, whichever date occurs first.
6 Refunding of any bonds issued prior to July 29, 1991, shall
7 not alter the Net State Sales Tax Increment.
8 (j) "State Utility Tax Increment Amount" means an amount
9 equal to the aggregate increase in State electric and gas tax
10 charges imposed on owners and tenants, other than residential
11 customers, of properties located within the redevelopment
12 project area under Section 9-222 of the Public Utilities Act,
13 over and above the aggregate of such charges as certified by
14 the Department of Revenue and paid by owners and tenants,
15 other than residential customers, of properties within the
16 redevelopment project area during the base year, which shall
17 be the calendar year immediately prior to the year of the
18 adoption of the ordinance authorizing tax increment
19 allocation financing.
20 (k) "Net State Utility Tax Increment" means the sum of
21 the following: (a) 80% of the first $100,000 of State Utility
22 Tax Increment annually generated by a redevelopment project
23 area; (b) 60% of the amount in excess of $100,000 but not
24 exceeding $500,000 of the State Utility Tax Increment
25 annually generated by a redevelopment project area; and (c)
26 40% of all amounts in excess of $500,000 of State Utility Tax
27 Increment annually generated by a redevelopment project area.
28 For the State Fiscal Year 1999, and every year thereafter
29 until the year 2007, for any municipality that has not
30 entered into a contract or has not issued bonds prior to June
31 1, 1988 to finance redevelopment project costs within a
32 redevelopment project area, the Net State Utility Tax
33 Increment shall be calculated as follows: By multiplying the
34 Net State Utility Tax Increment by 90% in the State Fiscal
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1 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
2 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
3 50% in the State Fiscal Year 2003; 40% in the State Fiscal
4 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
5 State Fiscal Year 2006; and 10% in the State Fiscal Year
6 2007. No payment shall be made for the State Fiscal Year 2008
7 and thereafter.
8 Municipalities that issue bonds in connection with the
9 redevelopment project during the period from June 1, 1988
10 until 3 years after the effective date of this Amendatory Act
11 of 1988 shall receive the Net State Utility Tax Increment,
12 subject to appropriation, for 15 State Fiscal Years after the
13 issuance of such bonds. For the 16th through the 20th State
14 Fiscal Years after issuance of the bonds, the Net State
15 Utility Tax Increment shall be calculated as follows: By
16 multiplying the Net State Utility Tax Increment by 90% in
17 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
18 50% in year 20. Refunding of any bonds issued prior to June
19 1, 1988, shall not alter the revised Net State Utility Tax
20 Increment payments set forth above.
21 (l) "Obligations" mean bonds, loans, debentures, notes,
22 special certificates or other evidence of indebtedness issued
23 by the municipality to carry out a redevelopment project or
24 to refund outstanding obligations.
25 (m) "Payment in lieu of taxes" means those estimated tax
26 revenues from real property in a redevelopment project area
27 acquired by a municipality which according to the
28 redevelopment project or plan is to be used for a private use
29 which taxing districts would have received had a municipality
30 not adopted tax increment allocation financing and which
31 would result from levies made after the time of the adoption
32 of tax increment allocation financing to the time the current
33 equalized value of real property in the redevelopment project
34 area exceeds the total initial equalized value of real
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1 property in said area.
2 (n) "Redevelopment plan" means the comprehensive program
3 of the municipality for development or redevelopment intended
4 by the payment of redevelopment project costs to reduce or
5 eliminate those conditions the existence of which qualified
6 the redevelopment project area as a "blighted area" or
7 "conservation area" or combination thereof or "industrial
8 park conservation area," and thereby to enhance the tax bases
9 of the taxing districts which extend into the redevelopment
10 project area. Each redevelopment plan shall set forth in
11 writing the program to be undertaken to accomplish the
12 objectives and shall include but not be limited to:
13 (A) estimated redevelopment project costs;
14 (B) evidence indicating that the redevelopment
15 project area on the whole has not been subject to growth
16 and development through investment by private enterprise;
17 (C) an assessment of any financial impact of the
18 redevelopment project area on or any increased demand for
19 services from any taxing district affected by the plan
20 and any program to address such financial impact or
21 increased demand;
22 (D) the sources of funds to pay costs;
23 (E) the nature and term of the obligations to be
24 issued;
25 (F) the most recent equalized assessed valuation of
26 the redevelopment project area;
27 (G) an estimate as to the equalized assessed
28 valuation after redevelopment and the general land uses
29 to apply in the redevelopment project area;
30 (H) a commitment to fair employment practices and
31 an affirmative action plan;
32 (I) if it concerns an industrial park conservation
33 area, the plan shall also include a general description
34 of any proposed developer, user and tenant of any
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1 property, a description of the type, structure and
2 general character of the facilities to be developed, a
3 description of the type, class and number of new
4 employees to be employed in the operation of the
5 facilities to be developed; and
6 (J) if property is to be annexed to the
7 municipality, the plan shall include the terms of the
8 annexation agreement; and.
9 (K) if occupied affordable housing exists within
10 the area that is designated, the municipality shall
11 include an assessment of the impact of the proposed
12 redevelopment plan on the number of affordable housing
13 units in the municipality. If the number of units will
14 decrease as a result of the proposed redevelopment plan,
15 the municipality shall also include a plan to replace
16 those affordable housing units either within the
17 municipality or otherwise as set forth in this Act.
18 The provisions of items (B) and (C) of this subsection
19 (n) shall not apply to a municipality that before March 14,
20 1994 (the effective date of Public Act 88-537) had fixed,
21 either by its corporate authorities or by a commission
22 designated under subsection (k) of Section 11-74.4-4, a time
23 and place for a public hearing as required by subsection (a)
24 of Section 11-74.4-5. No redevelopment plan shall be adopted
25 unless a municipality complies with all of the following
26 requirements:
27 (1) The municipality finds that the redevelopment
28 project area on the whole has not been subject to growth
29 and development through investment by private enterprise
30 and would not reasonably be anticipated to be developed
31 without the adoption of the redevelopment plan.
32 (2) The municipality finds that the redevelopment
33 plan and project conform to the comprehensive plan for
34 the development of the municipality as a whole, or, for
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1 municipalities with a population of 100,000 or more,
2 regardless of when the redevelopment plan and project was
3 adopted, the redevelopment plan and project either: (i)
4 conforms to the strategic economic development or
5 redevelopment plan issued by the designated planning
6 authority of the municipality, or (ii) includes land uses
7 that have been approved by the planning commission of the
8 municipality.
9 (3) The redevelopment plan establishes the
10 estimated dates of completion of the redevelopment
11 project and retirement of obligations issued to finance
12 redevelopment project costs. Those dates shall not be
13 more than 23 years from the adoption of the ordinance
14 approving the redevelopment project area if the ordinance
15 was adopted on or after January 15, 1981, and not more
16 than 35 years if the ordinance was adopted before January
17 15, 1981, or if the ordinance was adopted in April 1984
18 or July 1985, or if the municipality is subject to the
19 Local Government Financial Planning and Supervision Act.
20 However, for redevelopment project areas for which bonds
21 were issued before July 29, 1991, in connection with a
22 redevelopment project in the area within the State Sales
23 Tax Boundary, the estimated dates of completion of the
24 redevelopment project and retirement of obligations to
25 finance redevelopment project costs may be extended by
26 municipal ordinance to December 31, 2013. The extension
27 allowed by this amendatory Act of 1993 shall not apply to
28 real property tax increment allocation financing under
29 Section 11-74.4-8.
30 Those dates, for purposes of real property tax
31 increment allocation financing pursuant to Section
32 11-74.4-8 only, shall be not more than 35 years for
33 redevelopment project areas that were adopted on or after
34 December 16, 1986 and for which at least $8 million worth
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1 of municipal bonds were authorized on or after December
2 19, 1989 but before January 1, 1990; provided that the
3 municipality elects to extend the life of the
4 redevelopment project area to 35 years by the adoption of
5 an ordinance after at least 14 but not more than 30 days'
6 written notice to the taxing bodies, that would otherwise
7 constitute the joint review board for the redevelopment
8 project area, before the adoption of the ordinance.
9 Those dates, for purposes of real property tax
10 increment allocation financing pursuant to Section
11 11-74.4-8 only, shall be not more than 35 years for
12 redevelopment project areas that were established on or
13 after December 1, 1981 but before January 1, 1982 and for
14 which at least $1,500,000 worth of tax increment revenue
15 bonds were authorized on or after September 30, 1990 but
16 before July 1, 1991; provided that the municipality
17 elects to extend the life of the redevelopment project
18 area to 35 years by the adoption of an ordinance after at
19 least 14 but not more than 30 days' written notice to the
20 taxing bodies, that would otherwise constitute the joint
21 review board for the redevelopment project area, before
22 the adoption of the ordinance.
23 (4) The municipality finds, in the case of an
24 industrial park conservation area, also that the
25 municipality is a labor surplus municipality and that the
26 implementation of the redevelopment plan will reduce
27 unemployment, create new jobs and by the provision of new
28 facilities enhance the tax base of the taxing districts
29 that extend into the redevelopment project area.
30 (5) If any incremental revenues are being utilized
31 under Section 8(a)(1) or 8(a)(2) of this Act in
32 redevelopment project areas approved by ordinance after
33 January 1, 1986, the municipality finds: (a) that the
34 redevelopment project area would not reasonably be
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1 developed without the use of such incremental revenues,
2 and (b) that such incremental revenues will be
3 exclusively utilized for the development of the
4 redevelopment project area.
5 (o) "Redevelopment project" means any public and private
6 development project in furtherance of the objectives of a
7 redevelopment plan.
8 (p) "Redevelopment project area" means an area
9 designated by the municipality, which is not less in the
10 aggregate than 1 1/2 acres and in respect to which the
11 municipality has made a finding that there exist conditions
12 which cause the area to be classified as an industrial park
13 conservation area or a blighted area or a conservation area,
14 or a combination of both blighted areas and conservation
15 areas.
16 (q) "Redevelopment project costs" mean and include the
17 sum total of all reasonable or necessary costs incurred or
18 estimated to be incurred, and any such costs incidental to a
19 redevelopment plan and a redevelopment project. Such costs
20 include, without limitation, the following:
21 (1) Costs of studies, surveys, development of
22 plans, and specifications, implementation and
23 administration of the redevelopment plan including but
24 not limited to staff and professional service costs for
25 architectural, engineering, legal, marketing, financial,
26 planning or other services, provided however that no
27 charges for professional services may be based on a
28 percentage of the tax increment collected;
29 (2) Property assembly costs, including but not
30 limited to acquisition of land and other property, real
31 or personal, or rights or interests therein, demolition
32 of buildings, and the clearing and grading of land;
33 (3) Costs of rehabilitation, reconstruction or
34 repair or remodeling of existing public or private
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1 buildings and fixtures;
2 (4) Costs of the construction of public works or
3 improvements;
4 (5) Costs of job training and retraining projects;
5 (6) Financing costs, including but not limited to
6 all necessary and incidental expenses related to the
7 issuance of obligations and which may include payment of
8 interest on any obligations issued hereunder accruing
9 during the estimated period of construction of any
10 redevelopment project for which such obligations are
11 issued and for not exceeding 36 months thereafter and
12 including reasonable reserves related thereto;
13 (7) All or a portion of a taxing district's capital
14 costs resulting from the redevelopment project
15 necessarily incurred or to be incurred in furtherance of
16 the objectives of the redevelopment plan and project, to
17 the extent the municipality by written agreement accepts
18 and approves such costs;
19 (8) Relocation costs to the extent that a
20 municipality determines that relocation costs shall be
21 paid or is required to make payment of relocation costs
22 by federal or State law;
23 (9) Payment in lieu of taxes;
24 (10) Costs of job training, advanced vocational
25 education or career education, including but not limited
26 to courses in occupational, semi-technical or technical
27 fields leading directly to employment, incurred by one or
28 more taxing districts, provided that such costs (i) are
29 related to the establishment and maintenance of
30 additional job training, advanced vocational education or
31 career education programs for persons employed or to be
32 employed by employers located in a redevelopment project
33 area; and (ii) when incurred by a taxing district or
34 taxing districts other than the municipality, are set
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1 forth in a written agreement by or among the municipality
2 and the taxing district or taxing districts, which
3 agreement describes the program to be undertaken,
4 including but not limited to the number of employees to
5 be trained, a description of the training and services to
6 be provided, the number and type of positions available
7 or to be available, itemized costs of the program and
8 sources of funds to pay for the same, and the term of the
9 agreement. Such costs include, specifically, the payment
10 by community college districts of costs pursuant to
11 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
12 Community College Act and by school districts of costs
13 pursuant to Sections 10-22.20a and 10-23.3a of The School
14 Code;
15 (11) Interest cost incurred by a redeveloper
16 related to the construction, renovation or rehabilitation
17 of a redevelopment project provided that:
18 (A) such costs are to be paid directly from
19 the special tax allocation fund established pursuant
20 to this Act; and
21 (B) such payments in any one year may not
22 exceed 30% of the annual interest costs incurred by
23 the redeveloper with regard to the redevelopment
24 project during that year;
25 (C) if there are not sufficient funds
26 available in the special tax allocation fund to make
27 the payment pursuant to this paragraph (11) then the
28 amounts so due shall accrue and be payable when
29 sufficient funds are available in the special tax
30 allocation fund; and
31 (D) the total of such interest payments paid
32 pursuant to this Act may not exceed 30% of the total
33 (i) cost paid or incurred by the redeveloper for the
34 redevelopment project plus (ii) redevelopment
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1 project costs excluding any property assembly costs
2 and any relocation costs incurred by a municipality
3 pursuant to this Act.
4 (12) Unless explicitly stated herein the cost of
5 construction of new privately-owned buildings shall not
6 be an eligible redevelopment project cost; and.
7 (13) Low and very low income housing preservation,
8 renovation, and development costs. Not-for-profit
9 housing development organizations shall be exempted from
10 the limits set out in (11)(B), (11)(D), and (12).
11 Instead, not-for-profit low income housing developers
12 shall be able to receive interest write-downs of up to
13 75% and can receive as much as 50% of the construction
14 costs for a low income housing project from tax increment
15 funds, but only so long as the project meets all other
16 affordable housing requirements and objectives of this
17 Act. For profit developers engaged in a low income
18 housing development project in conjunction with a
19 redevelopment plan shall not be exempt from any of the
20 limitations in (11) and (12).
21 If a special service area has been established pursuant
22 to the Special Service Area Tax Act, then any tax increment
23 revenues derived from the tax imposed pursuant to the Special
24 Service Area Tax Act may be used within the redevelopment
25 project area for the purposes permitted by that Act as well
26 as the purposes permitted by this Act.
27 (r) "State Sales Tax Boundary" means the redevelopment
28 project area or the amended redevelopment project area
29 boundaries which are determined pursuant to subsection (9) of
30 Section 11-74.4-8a of this Act. The Department of Revenue
31 shall certify pursuant to subsection (9) of Section
32 11-74.4-8a the appropriate boundaries eligible for the
33 determination of State Sales Tax Increment.
34 (s) "State Sales Tax Increment" means an amount equal to
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1 the increase in the aggregate amount of taxes paid by
2 retailers and servicemen, other than retailers and servicemen
3 subject to the Public Utilities Act, on transactions at
4 places of business located within a State Sales Tax Boundary
5 pursuant to the Retailers' Occupation Tax Act, the Use Tax
6 Act, the Service Use Tax Act, and the Service Occupation Tax
7 Act, except such portion of such increase that is paid into
8 the State and Local Sales Tax Reform Fund, the Local
9 Government Distributive Fund, the Local Government Tax
10 Fund and the County and Mass Transit District Fund, for as
11 long as State participation exists, over and above the
12 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
13 or the Revised Initial Sales Tax Amounts for such taxes as
14 certified by the Department of Revenue and paid under those
15 Acts by retailers and servicemen on transactions at places of
16 business located within the State Sales Tax Boundary during
17 the base year which shall be the calendar year immediately
18 prior to the year in which the municipality adopted tax
19 increment allocation financing, less 3.0% of such amounts
20 generated under the Retailers' Occupation Tax Act, Use Tax
21 Act and Service Use Tax Act and the Service Occupation Tax
22 Act, which sum shall be appropriated to the Department of
23 Revenue to cover its costs of administering and enforcing
24 this Section. For purposes of computing the aggregate amount
25 of such taxes for base years occurring prior to 1985, the
26 Department of Revenue shall compute the Initial Sales Tax
27 Amount for such taxes and deduct therefrom an amount equal to
28 4% of the aggregate amount of taxes per year for each year
29 the base year is prior to 1985, but not to exceed a total
30 deduction of 12%. The amount so determined shall be known as
31 the "Adjusted Initial Sales Tax Amount". For purposes of
32 determining the State Sales Tax Increment the Department of
33 Revenue shall for each period subtract from the tax amounts
34 received from retailers and servicemen on transactions
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1 located in the State Sales Tax Boundary, the certified
2 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
3 or Revised Initial Sales Tax Amounts for the Retailers'
4 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
5 and the Service Occupation Tax Act. For the State Fiscal
6 Year 1989 this calculation shall be made by utilizing the
7 calendar year 1987 to determine the tax amounts received. For
8 the State Fiscal Year 1990, this calculation shall be made by
9 utilizing the period from January 1, 1988, until September
10 30, 1988, to determine the tax amounts received from
11 retailers and servicemen, which shall have deducted therefrom
12 nine-twelfths of the certified Initial Sales Tax Amounts,
13 Adjusted Initial Sales Tax Amounts or the Revised Initial
14 Sales Tax Amounts as appropriate. For the State Fiscal Year
15 1991, this calculation shall be made by utilizing the period
16 from October 1, 1988, until June 30, 1989, to determine the
17 tax amounts received from retailers and servicemen, which
18 shall have deducted therefrom nine-twelfths of the certified
19 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
20 Amounts or the Revised Initial Sales Tax Amounts as
21 appropriate. For every State Fiscal Year thereafter, the
22 applicable period shall be the 12 months beginning July 1 and
23 ending on June 30, to determine the tax amounts received
24 which shall have deducted therefrom the certified Initial
25 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
26 Revised Initial Sales Tax Amounts. Municipalities intending
27 to receive a distribution of State Sales Tax Increment must
28 report a list of retailers to the Department of Revenue by
29 October 31, 1988 and by July 31, of each year thereafter.
30 (t) "Taxing districts" means counties, townships, cities
31 and incorporated towns and villages, school, road, park,
32 sanitary, mosquito abatement, forest preserve, public health,
33 fire protection, river conservancy, tuberculosis sanitarium
34 and any other municipal corporations or districts with the
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1 power to levy taxes.
2 (u) "Taxing districts' capital costs" means those costs
3 of taxing districts for capital improvements that are found
4 by the municipal corporate authorities to be necessary and
5 directly result from the redevelopment project.
6 (v) As used in subsection (a) of Section 11-74.4-3 of
7 this Act, "vacant land" means any parcel or combination of
8 parcels of real property without industrial, commercial, and
9 residential buildings which has not been used for commercial
10 agricultural purposes within 5 years prior to the designation
11 of the redevelopment project area, unless the parcel is
12 included in an industrial park conservation area or the
13 parcel has been subdivided; provided that if the parcel was
14 part of a larger tract that has been divided into 3 or more
15 smaller tracts that were accepted for recording during the
16 period from 1950 to 1990, then the parcel shall be deemed to
17 have been subdivided, and all proceedings and actions of the
18 municipality taken in that connection with respect to any
19 previously approved or designated redevelopment project area
20 or amended redevelopment project area are hereby validated
21 and hereby declared to be legally sufficient for all purposes
22 of this Act.
23 (w) "Annual Total Increment" means the sum of each
24 municipality's annual Net Sales Tax Increment and each
25 municipality's annual Net Utility Tax Increment. The ratio
26 of the Annual Total Increment of each municipality to the
27 Annual Total Increment for all municipalities, as most
28 recently calculated by the Department, shall determine the
29 proportional shares of the Illinois Tax Increment Fund to be
30 distributed to each municipality.
31 (x) "Affordable Housing Fund" or "Tax Increment
32 Affordable Housing Fund" designates a special fund created by
33 a municipality in conjunction with the enactment of each tax
34 increment financing district. Each tax increment financing
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1 district shall have a corresponding Affordable Housing Fund
2 distinct from its special tax allocation fund. All funds
3 generated by the tax increment financing district for
4 affordable housing in accordance with subsection (t) of
5 Section 11-74.4-4 shall be deposited directly into and
6 distributed from this Fund.
7 (y) "Affordable housing funds" are those funds that are
8 deposited in a tax increment financing district's Affordable
9 Housing Fund.
10 (z) "Low income housing" means housing that costs no
11 more than 30# of the prospective tenant's income to
12 households earning 50% or less of the municipality's median
13 income.
14 (aa) "Very low income housing" means housing that costs
15 no more than 30% of the prospectivetenant's income to
16 households earning 30% or less of the municipality's median
17 income.
18 (Source: P.A. 88-535; 88-537; 88-603, eff. 9-1-94; 88-670,
19 eff. 12-2-94; 88-688, eff. 1-24-95; 89-235, eff. 8-4-95;
20 89-705, eff. 1-31-97.)
21 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
22 Sec. 11-74.4-4. Municipal powers and duties;
23 redevelopment project areas. A municipality may:
24 (a) By ordinance introduced in the governing body of the
25 municipality within 14 to 90 days from the completion of the
26 hearing specified in Section 11-74.4-5 approve redevelopment
27 plans and redevelopment projects, and designate redevelopment
28 project areas pursuant to notice and hearing required by this
29 Act. No redevelopment project area shall be designated
30 unless a plan and project are approved prior to the
31 designation of such area and such area shall include only
32 those contiguous parcels of real property and improvements
33 thereon substantially benefited by the proposed redevelopment
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1 project improvements.
2 (b) Make and enter into all contracts necessary or
3 incidental to the implementation and furtherance of its
4 redevelopment plan and project.
5 (c) Within a redevelopment project area, acquire by
6 purchase, donation, lease or eminent domain; own, convey,
7 lease, mortgage or dispose of land and other property, real
8 or personal, or rights or interests therein, and grant or
9 acquire licenses, easements and options with respect thereto,
10 all in the manner and at such price the municipality
11 determines is reasonably necessary to achieve the objectives
12 of the redevelopment plan and project. No conveyance, lease,
13 mortgage, disposition of land or other property, or agreement
14 relating to the development of the property shall be made
15 except upon the adoption of an ordinance by the corporate
16 authorities of the municipality. Furthermore, no conveyance,
17 lease, mortgage, or other disposition of land or agreement
18 relating to the development of property shall be made without
19 making public disclosure of the terms of the disposition and
20 all bids and proposals made in response to the municipality's
21 request. The procedures for obtaining such bids and
22 proposals shall provide reasonable opportunity for any person
23 to submit alternative proposals or bids.
24 (d) Within a redevelopment project area, clear any area
25 by demolition or removal of any existing buildings and
26 structures unless that building or structure is within a tax
27 increment financing district and, as of any date within the 6
28 months prior to the date of the creation of the tax increment
29 financing district, has provided housing to low or very low
30 income persons. In such a case, the municipality may only
31 remove a building, or in any way subsidize a building's
32 removal by a private party, after equivalent and affordable
33 housing has been secured for all the residents of the
34 building or structure and those residents have moved into
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1 those units. The replacement units shall be located within
2 the redevelopment area, but residents subject to displacement
3 may choose to waive their option to occupy the new units and
4 instead be compensated according to the federal Uniform
5 Relocation Assistance and Real Property Acquisition Policies
6 Act of 1970.
7 (e) Within a redevelopment project area, renovate or
8 rehabilitate or construct any structure or building.
9 (f) Install, repair, construct, reconstruct or relocate
10 streets, utilities and site improvements essential to the
11 preparation of the redevelopment area for use in accordance
12 with a redevelopment plan.
13 (g) Within a redevelopment project area, fix, charge and
14 collect fees, rents and charges for the use of any building
15 or property owned or leased by it or any part thereof, or
16 facility therein.
17 (h) Accept grants, guarantees and donations of property,
18 labor, or other things of value from a public or private
19 source for use within a project redevelopment area.
20 (i) Acquire and construct public facilities within a
21 redevelopment project area.
22 (j) Incur project redevelopment costs.
23 (k) Create a commission of not less than 5 or more than
24 15 persons to be appointed by the mayor or president of the
25 municipality with the consent of the majority of the
26 governing board of the municipality. Members of a commission
27 appointed after the effective date of this amendatory Act of
28 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
29 years, respectively, in such numbers as to provide that the
30 terms of not more than 1/3 of all such members shall expire
31 in any one year. Their successors shall be appointed for a
32 term of 5 years. The commission, subject to approval of the
33 corporate authorities may exercise the powers enumerated in
34 this Section. The commission shall also have the power to
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1 hold the public hearings required by this division and make
2 recommendations to the corporate authorities concerning the
3 adoption of redevelopment plans, redevelopment projects and
4 designation of redevelopment project areas.
5 (l) Make payment in lieu of taxes or a portion thereof
6 to taxing districts. If payments in lieu of taxes or a
7 portion thereof are made to taxing districts, those payments
8 shall be made to all districts within a project redevelopment
9 area on a basis which is proportional to the current
10 collections of revenue which each taxing district receives
11 from real property in the redevelopment project area.
12 (m) Exercise any and all other powers necessary to
13 effectuate the purposes of this Act.
14 (n) If any member of the corporate authority, a member
15 of a commission established pursuant to Section 11-74.4-4(k)
16 of this Act, or an employee or consultant of the municipality
17 involved in the planning and preparation of a redevelopment
18 plan, or project for a redevelopment project area or proposed
19 redevelopment project area, as defined in Sections
20 11-74.4-3(i) through (k) of this Act, owns or controls an
21 interest, direct or indirect, in any property included in any
22 redevelopment area, or proposed redevelopment area, he or she
23 shall disclose the same in writing to the clerk of the
24 municipality, and shall also so disclose the dates and terms
25 and conditions of any disposition of any such interest, which
26 disclosures shall be acknowledged by the corporate
27 authorities and entered upon the minute books of the
28 corporate authorities. If an individual holds such an
29 interest then that individual shall refrain from any further
30 official involvement in regard to such redevelopment plan,
31 project or area, from voting on any matter pertaining to such
32 redevelopment plan, project or area, or communicating with
33 other members concerning corporate authorities, commission or
34 employees concerning any matter pertaining to said
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1 redevelopment plan, project or area. Furthermore, no such
2 member or employee shall acquire of any interest direct, or
3 indirect, in any property in a redevelopment area or proposed
4 redevelopment area after either (a) such individual obtains
5 knowledge of such plan, project or area or (b) first public
6 notice of such plan, project or area pursuant to Section
7 11-74.4-6 of this Division, whichever occurs first.
8 (o) Create a Tax Increment Economic Development Advisory
9 Committee to be appointed by the Mayor or President of the
10 municipality with the consent of the majority of the
11 governing board of the municipality, the members of which
12 Committee shall be appointed for initial terms of 1, 2, 3, 4
13 and 5 years respectively, in such numbers as to provide that
14 the terms of not more than 1/3 of all such members shall
15 expire in any one year. Their successors shall be appointed
16 for a term of 5 years. The Committee shall have none of the
17 powers enumerated in this Section. The Committee shall serve
18 in an advisory capacity only. The Committee may advise the
19 governing Board of the municipality and other municipal
20 officials regarding development issues and opportunities
21 within the redevelopment project area or the area within the
22 State Sales Tax Boundary. The Committee may also promote and
23 publicize development opportunities in the redevelopment
24 project area or the area within the State Sales Tax Boundary.
25 (p) Municipalities may jointly undertake and perform
26 redevelopment plans and projects and utilize the provisions
27 of the Act wherever they have contiguous redevelopment
28 project areas or they determine to adopt tax increment
29 financing with respect to a redevelopment project area which
30 includes contiguous real property within the boundaries of
31 the municipalities, and in doing so, they may, by agreement
32 between municipalities, issue obligations, separately or
33 jointly, and expend revenues received under the Act for
34 eligible expenses anywhere within contiguous redevelopment
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1 project areas or as otherwise permitted in the Act.
2 (q) Utilize revenues, other than State sales tax
3 increment revenues, received under this Act from one
4 redevelopment project area for eligible costs in another
5 redevelopment project area that is either contiguous to, or
6 is separated only by a public right of way from, the
7 redevelopment project area from which the revenues are
8 received.
9 (r) If no redevelopment project has been initiated in a
10 redevelopment project area within 7 years after the area was
11 designated by ordinance under subsection (a), the
12 municipality shall adopt an ordinance repealing the area's
13 designation as a redevelopment project area; provided,
14 however, that if an area received its designation more than 3
15 years before the effective date of this amendatory Act of
16 1994 and no redevelopment project has been initiated within 4
17 years after the effective date of this amendatory Act of
18 1994, the municipality shall adopt an ordinance repealing its
19 designation as a redevelopment project area. Initiation of a
20 redevelopment project shall be evidenced by either a signed
21 redevelopment agreement or expenditures on eligible
22 redevelopment project costs associated with a redevelopment
23 project.
24 (s) shall deposit 20% of that portion of the annual
25 property tax increment generated by a tax increment financing
26 district that is not required to pay interest on bonds that
27 have been issued for that tax increment financing district
28 and 20% of any bond revenues generated for the district into
29 a special Affordable Housing Fund.
30 (t) shall use the Affordable Housing Fund revenues to
31 preserve or renovate existing low and very low income housing
32 within the district; to finance new construction or
33 rehabilitation of existing buildings or structures for the
34 purpose of providing replacement housing to low and very low
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1 income households within the district as provided in
2 subsection (u); to maintain the affordability of existing,
3 new, or replacement low and very low income housing; to pay
4 the relocation costs of those households that choose to
5 accept relocation; and, only in accordance with the
6 conditions in subsections (w), (x), and (y), to construct low
7 or very low income housing adjacent to the district,
8 elsewhere in the municipality, or elsewhere in the State
9 through the deposit of funds into the Illinois Affordable
10 Housing Trust Fund.
11 (u) shall construct replacement housing for all low and
12 very low income households living within a district before
13 taking any action, direct or indirect, that would cause those
14 households to be displaced from their current residences.
15 Replacement housing must be affordable (annually require no
16 more than a 30% expenditure by each household of the
17 household's annual income) to the households being displaced
18 and affordability must be guaranteed for the life of the tax
19 increment finance district or 20 years, whichever is longer.
20 Replacement housing shall provide the appropriate number of
21 rooms such that the households being displaced shall not be
22 living in crowded conditions.
23 (v) shall use any affordable housing funds not dedicated
24 to low and very low income housing replacement, improvement,
25 or preservation in a manner that meets the housing demand of
26 the range of low and very low income household types within
27 the municipality. Household types are differentiated along
28 dimensions of size, age of household members, and presence or
29 absence of children.
30 (w) shall spend affordable housing funds within the tax
31 increment financing district unless the district does not
32 currently or will not after redevelopment contain residential
33 uses. In such cases, the funds shall be spent to create,
34 preserve, or improve low or very low income housing in the
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1 residential areas closest to the district, unless the
2 municipality documents in its redevelopment plan, in
3 accordance with subsection (x), that no unmet demand for low
4 or very low income housing preservation, improvement, or
5 creation exists in the residential areas closest to the
6 district. In such cases, the affordable housing funds shall
7 be spent only within the municipality, unless the
8 municipality documents, in accordance with subsection (x),
9 that no unmet demand for the preservation, improvement, or
10 creation of low and very low income housing exists within the
11 municipality. In such cases, the affordable housing funds
12 shall be transferred to the Illinois Low Income Housing Trust
13 Fund for disbursement by the Illinois Housing Development
14 Authority.
15 (x) shall have the authority to spend funds deposited in
16 a district's Affordable Housing Fund outside the district in
17 accordance with the guidelines in subsection (w) only if
18 sufficient documentation is provided. A study included as
19 part of the redevelopment plan that shows that no low or very
20 low income housing exists within the district and residential
21 uses are not foreseen for the district's properties by the
22 redevelopment plan shall be considered sufficient
23 documentation to support a finding that affordable housing
24 funds need not be spent within the district. In such a case,
25 the affordable housing funds shall be spent in the
26 residential areas closest to the district, unless a study is
27 included in the original redevelopment plan that documents
28 that the residential areas surrounding the district (i) have
29 no low or very low income households, or less than 10% of
30 current low or very low income residents pay more than 30% of
31 their monthly income for housing, (ii) have property tax and
32 rental rate trends that do not indicate that current low and
33 very low income residents will find their residences
34 unaffordable within the next 5 years, and (iii) the unmet
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1 demand for low and very low income housing preservation,
2 improvement, or creation elsewhere in the municipality
3 warrants not creating new low and very low income housing in
4 the areas immediately adjacent to the district. If these
5 conditions can be documented, the municipality shall spend
6 the affordable housing funds within the municipality, unless
7 it can document as part of the redevelopment plan that less
8 than 5% of the low or very low income households living
9 within the municipality are paying more than 30% of their
10 annual income on housing.
11 (y) shall be allowed to spend up to 70% of affordable
12 housing funds outside the district, but within the
13 municipality, even if the conditions set forth in subsection
14 (x) are not met, if 30% of each annual property tax
15 increment, less the revenues dedicated to pay bond financing
16 and 30% of any bonds issued for redevelopment within the
17 district are deposited in and allocated through the
18 Affordable Housing Fund.
19 (Source: P.A. 87-875; 88-537; 88-688, eff. 1-24-95.)
20 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
21 Sec. 11-74.4-5. (a) Prior to the adoption of an ordinance
22 proposing the designation of a redevelopment project area, or
23 approving a redevelopment plan or redevelopment project, the
24 municipality by its corporate authorities, or as it may
25 determine by any commission designated under subsection (k)
26 of Section 11-74.4-4 shall adopt an ordinance or resolution
27 fixing a time and place for public hearing. Prior to the
28 adoption of the ordinance or resolution establishing the time
29 and place for the public hearing, the municipality shall make
30 available for public inspection a redevelopment plan or a
31 separate report that provides in reasonable detail the basis
32 for the redevelopment project area qualifying as a blighted
33 area, conservation area, or an industrial park conservation
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1 area. The report along with the name of a person to contact
2 for further information shall be sent within a reasonable
3 time after the adoption of such ordinance or resolution to
4 the affected taxing districts by certified mail. At the
5 public hearing any interested person or affected taxing
6 district may file with the municipal clerk written objections
7 to and may be heard orally in respect to any issues embodied
8 in the notice. The municipality shall hear and determine all
9 protests and objections at the hearing and the hearing may be
10 adjourned to another date without further notice other than a
11 motion to be entered upon the minutes fixing the time and
12 place of the subsequent hearing. Prior to the adoption of an
13 ordinance approving a redevelopment plan or redevelopment
14 project, or designating a redevelopment project area, changes
15 may be made in the redevelopment plan or project or area
16 which changes do not alter the exterior boundaries, or do not
17 substantially affect the general land uses established in the
18 plan or substantially change the nature of the redevelopment
19 project, without further hearing or notice, provided that
20 notice of such changes is given by mail to each affected
21 taxing district and by publication in a newspaper or
22 newspapers of general circulation within the taxing districts
23 not less than 10 days prior to the adoption of the changes
24 by ordinance. After the adoption of an ordinance approving a
25 redevelopment plan or project or designating a redevelopment
26 project area, no ordinance shall be adopted altering the
27 exterior boundaries, affecting the general land uses
28 established pursuant to the plan or changing the nature of
29 the redevelopment project without complying with the
30 procedures provided in this division pertaining to the
31 initial approval of a redevelopment plan project and
32 designation of redevelopment project area. Hearings with
33 regard to a redevelopment project area, project or plan may
34 be held simultaneously.
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1 (b) After the effective date of this amendatory Act of
2 1989, prior to the adoption of an ordinance proposing the
3 designation of a redevelopment project area or amending the
4 boundaries of an existing redevelopment project area, the
5 municipality shall convene a joint review board to consider
6 the proposal. The board shall consist of a representative
7 selected by each community college district, local elementary
8 school district and high school district or each local
9 community unit school district, park district, library
10 district and county that has authority to directly levy taxes
11 on the property within the proposed redevelopment project
12 area, a representative selected by the municipality and a
13 public member. The public member and the board's chairperson
14 shall be selected by a majority of other board members.
15 Municipalities that have designated redevelopment project
16 areas prior to the effective date of this amendatory Act of
17 1989 may convene a joint review board to perform the duties
18 specified under paragraph (e) of this Section.
19 All board members shall be appointed and the first board
20 meeting held within 14 days following the notice by the
21 municipality to all the taxing districts as required by
22 Section 11-74.4-6c. Such notice shall also advise the taxing
23 bodies represented on the joint review board of the time and
24 place of the first meeting of the board. Additional meetings
25 of the board shall be held upon the call of any member. The
26 municipality seeking designation of the redevelopment project
27 area may provide administrative support to the board.
28 The board shall review the public record, planning
29 documents and proposed ordinances approving the redevelopment
30 plan and project to be adopted by the municipality. As part
31 of its deliberations, the board may hold additional hearings
32 on the proposal. A board's recommendation shall be an
33 advisory, non-binding recommendation which recommendation
34 shall be adopted by a majority vote of the board and
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1 submitted to the municipality within 30 days after convening
2 of the board. Failure of the board to submit its report on a
3 timely basis shall not be cause to delay the public hearing
4 or any other step in the process of establishing or amending
5 the redevelopment project area.
6 The board shall base its decision to approve or deny the
7 proposal on the basis of the area satisfying the eligibility
8 criteria defined in Section 11-74.4-3.
9 The board shall issue a written report describing why the
10 redevelopment plan and project area fails to meet one or more
11 of the criteria. In the event the Board does not file a
12 report it shall be presumed that these taxing bodies find the
13 redevelopment project area to satisfy the eligibility
14 criteria.
15 (c) After the adoption of an ordinance approving a
16 redevelopment plan or project or designating a redevelopment
17 project area, no ordinance shall be adopted altering the
18 exterior boundaries, affecting the general land uses
19 established pursuant to the plan or changing the nature of
20 the redevelopment project without complying with the
21 procedures provided in this division pertaining to the
22 initial approval of a redevelopment plan project and
23 designation of a redevelopment project area.
24 (d) After the effective date of this amendatory Act of
25 1997 1994 and adoption of an ordinance approving a
26 redevelopment plan or project, all municipalities a
27 municipality with a population of less than 1,000,000 shall
28 within 90 days after the close of each municipal fiscal year
29 notify all members of taxing districts represented on the
30 joint review board in which the redevelopment project area is
31 located that any or all of the following information will be
32 made available no later than 180 days after the close of each
33 municipal fiscal year upon receipt of a written request by
34 any member of a majority of such taxing districts for such
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1 information:
2 (1) Any amendments to the redevelopment plan, the
3 redevelopment project area, or the State Sales Tax
4 Boundary.
5 (2) Audited financial statements of the special tax
6 allocation fund once a cumulative total of $100,000 has
7 been deposited in the fund.
8 (3) Certification of the Chief Executive Officer of
9 the municipality that the municipality has complied with
10 all of the requirements of this Act during the preceding
11 fiscal year.
12 (4) An opinion of legal counsel that the
13 municipality is in compliance with this Act.
14 (5) An analysis of the special tax allocation fund
15 and affordable housing fund which sets forth:
16 (A) the balance in each the special tax
17 allocation fund at the beginning of the fiscal year;
18 (B) all amounts deposited in each the special
19 tax allocation fund by source;
20 (C) all expenditures from each the special tax
21 allocation fund by category of permissible
22 redevelopment project cost; and
23 (D) the balance in each the special tax
24 allocation fund at the end of the fiscal year
25 including a breakdown of that balance by source.
26 Such ending balance shall be designated as surplus
27 if it is not required for anticipated redevelopment
28 project costs or to pay debt service on bonds issued
29 to finance redevelopment project costs, as set forth
30 in Section 11-74.4-7 hereof.
31 (6) A description of all property purchased by the
32 municipality within the redevelopment project area
33 including:
34 (A) Street address.
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1 (B) Approximate size or description of
2 property.
3 (C) Purchase price.
4 (D) Seller of property.
5 (7) A statement setting forth all activities
6 undertaken in furtherance of the objectives of the
7 redevelopment plan, including:
8 (A) Any project implemented in the preceding
9 fiscal year.
10 (B) A description of the redevelopment
11 activities undertaken.
12 (C) A description of any agreements entered
13 into by the municipality with regard to the
14 disposition or redevelopment of any property within
15 the redevelopment project area or the area within
16 the State Sales Tax Boundary.
17 (D) Additional information on the use of all
18 funds received under this Division and steps taken
19 by the municipality to achieve the objectives of the
20 redevelopment plan.
21 (E) All steps taken to meet the low and very
22 low income housing requirements set out in this Act,
23 including units replaced, units constructed, rent
24 structure of replacement and new units, and types of
25 units preserved and created.
26 (8) With regard to any obligations issued by the
27 municipality:
28 (A) copies of any official statements; and
29 (B) an analysis prepared by financial advisor
30 or underwriter setting forth: (i) nature and term of
31 obligation; and (ii) projected debt service
32 including required reserves and debt coverage.
33 (9) For special tax allocation funds that have
34 experienced cumulative deposits of incremental tax
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1 revenues of $100,000 or more, a certified audit report
2 reviewing compliance with this Act performed by an
3 independent public accountant certified and licensed by
4 the authority of the State of Illinois. The financial
5 portion of the audit must be conducted in accordance with
6 Standards for Audits of Governmental Organizations,
7 Programs, Activities, and Functions adopted by the
8 Comptroller General of the United States (1981), as
9 amended. The audit report shall contain a letter from
10 the independent certified public accountant indicating
11 compliance or noncompliance with the requirements of
12 subsection (q) of Section 11-74.4-3.
13 (d-1) Municipalities with populations of over 1,000,000
14 shall, after adoption of a redevelopment plan or project,
15 make available upon request to any taxing district in which
16 the redevelopment project area is located the following
17 information:
18 (1) Any amendments to the redevelopment plan, the
19 redevelopment project area, or the State Sales Tax
20 Boundary; and
21 (2) In connection with any redevelopment project
22 area for which the municipality has outstanding
23 obligations issued to provide for redevelopment project
24 costs pursuant to Section 11-74.4-7, audited financial
25 statements of the special tax allocation fund.
26 (e) One year, two years and at the end of every
27 subsequent three year period thereafter, the joint review
28 board shall meet to review the effectiveness and status of
29 the redevelopment project area up to that date.
30 (f) If the redevelopment project area has been in
31 existence for at least 5 years and the municipality proposes
32 a redevelopment project with a total redevelopment project
33 cost exceeding 35% of the total amount budgeted in the
34 redevelopment plan for all redevelopment projects, the
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1 municipality, in addition to any other requirements imposed
2 by this Act, shall convene a meeting of the joint review
3 board as provided in this Act for the purpose of reviewing
4 the redevelopment project.
5 (g) In the event that a municipality has held a public
6 hearing under this Section prior to March 14, 1994 (the
7 effective date of Public Act 88-537), the requirements
8 imposed by Public Act 88-537 relating to the method of fixing
9 the time and place for public hearing, the materials and
10 information required to be made available for public
11 inspection, and the information required to be sent after
12 adoption of an ordinance or resolution fixing a time and
13 place for public hearing shall not be applicable.
14 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
15 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
16 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
17 which has adopted tax increment allocation financing prior to
18 January 1, 1987, may by ordinance (1) authorize the
19 Department of Revenue, subject to appropriation, to annually
20 certify and cause to be paid from the Illinois Tax Increment
21 Fund to such municipality for deposit in the municipality's
22 special tax allocation fund an amount equal to the Net State
23 Sales Tax Increment and (2) authorize the Department of
24 Revenue to annually notify the municipality of the amount of
25 the Municipal Sales Tax Increment which shall be deposited by
26 the municipality in the municipality's special tax allocation
27 fund. Provided that for purposes of this Section no
28 amendments adding additional area to the redevelopment
29 project area which has been certified as the State Sales Tax
30 Boundary shall be taken into account if such amendments are
31 adopted by the municipality after January 1, 1987. If an
32 amendment is adopted which decreases the area of a State
33 Sales Tax Boundary, the municipality shall update the list
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1 required by subsection (3)(a) of this Section. The Retailers'
2 Occupation Tax liability, Use Tax liability, Service
3 Occupation Tax liability and Service Use Tax liability for
4 retailers and servicemen located within the disconnected area
5 shall be excluded from the base from which tax increments are
6 calculated and the revenue from any such retailer or
7 serviceman shall not be included in calculating incremental
8 revenue payable to the municipality. A municipality adopting
9 an ordinance under this subsection (1) of this Section for a
10 redevelopment project area which is certified as a State
11 Sales Tax Boundary shall not be entitled to payments of State
12 taxes authorized under subsection (2) of this Section for the
13 same redevelopment project area. Nothing herein shall be
14 construed to prevent a municipality from receiving payment of
15 State taxes authorized under subsection (2) of this Section
16 for a separate redevelopment project area that does not
17 overlap in any way with the State Sales Tax Boundary
18 receiving payments of State taxes pursuant to subsection (1)
19 of this Section.
20 A certified copy of such ordinance shall be submitted by
21 the municipality to the Department of Commerce and Community
22 Affairs and the Department of Revenue not later than 30 days
23 after the effective date of the ordinance. Upon submission
24 of the ordinances, and the information required pursuant to
25 subsection 3 of this Section, the Department of Revenue shall
26 promptly determine the amount of such taxes paid under the
27 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
28 Act, the Service Occupation Tax Act, the Municipal Retailers'
29 Occupation Tax Act and the Municipal Service Occupation Tax
30 Act by retailers and servicemen on transactions at places
31 located in the redevelopment project area during the base
32 year, and shall certify all the foregoing "initial sales tax
33 amounts" to the municipality within 60 days of submission of
34 the list required of subsection (3)(a) of this Section.
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1 If a retailer or serviceman with a place of business
2 located within a redevelopment project area also has one or
3 more other places of business within the municipality but
4 outside the redevelopment project area, the retailer or
5 serviceman shall, upon request of the Department of Revenue,
6 certify to the Department of Revenue the amount of taxes paid
7 pursuant to the Retailers' Occupation Tax Act, the Municipal
8 Retailers' Occupation Tax Act, the Service Occupation Tax Act
9 and the Municipal Service Occupation Tax Act at each place of
10 business which is located within the redevelopment project
11 area in the manner and for the periods of time requested by
12 the Department of Revenue.
13 When the municipality determines that a portion of an
14 increase in the aggregate amount of taxes paid by retailers
15 and servicemen under the Retailers' Occupation Tax Act, Use
16 Tax Act, Service Use Tax Act, or the Service Occupation Tax
17 Act is the result of a retailer or serviceman initiating
18 retail or service operations in the redevelopment project
19 area by such retailer or serviceman with a resulting
20 termination of retail or service operations by such retailer
21 or serviceman at another location in Illinois in the standard
22 metropolitan statistical area of such municipality, the
23 Department of Revenue shall be notified that the retailers
24 occupation tax liability, use tax liability, service
25 occupation tax liability, or service use tax liability from
26 such retailer's or serviceman's terminated operation shall be
27 included in the base Initial Sales Tax Amounts from which the
28 State Sales Tax Increment is calculated for purposes of State
29 payments to the affected municipality; provided, however, for
30 purposes of this paragraph "termination" shall mean a closing
31 of a retail or service operation which is directly related to
32 the opening of the same retail or service operation in a
33 redevelopment project area which is included within a State
34 Sales Tax Boundary, but it shall not include retail or
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1 service operations closed for reasons beyond the control of
2 the retailer or serviceman, as determined by the Department.
3 If the municipality makes the determination referred to in
4 the prior paragraph and notifies the Department and if the
5 relocation is from a location within the municipality, the
6 Department, at the request of the municipality, shall adjust
7 the certified aggregate amount of taxes that constitute the
8 Municipal Sales Tax Increment paid by retailers and
9 servicemen on transactions at places of business located
10 within the State Sales Tax Boundary during the base year
11 using the same procedures as are employed to make the
12 adjustment referred to in the prior paragraph. The adjusted
13 Municipal Sales Tax Increment calculated by the Department
14 shall be sufficient to satisfy the requirements of subsection
15 (1) of this Section.
16 When a municipality which has adopted tax increment
17 allocation financing in 1986 determines that a portion of the
18 aggregate amount of taxes paid by retailers and servicemen
19 under the Retailers Occupation Tax Act, Use Tax Act, Service
20 Use Tax Act, or Service Occupation Tax Act, the Municipal
21 Retailers' Occupation Tax Act and the Municipal Service
22 Occupation Tax Act, includes revenue of a retailer or
23 serviceman which terminated retailer or service operations in
24 1986, prior to the adoption of tax increment allocation
25 financing, the Department of Revenue shall be notified by
26 such municipality that the retailers' occupation tax
27 liability, use tax liability, service occupation tax
28 liability or service use tax liability, from such retailer's
29 or serviceman's terminated operations shall be excluded from
30 the Initial Sales Tax Amounts for such taxes. The revenue
31 from any such retailer or serviceman which is excluded from
32 the base year under this paragraph, shall not be included in
33 calculating incremental revenues if such retailer or
34 serviceman reestablishes such business in the redevelopment
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1 project area.
2 For State fiscal year 1992, the Department of Revenue
3 shall budget, and the Illinois General Assembly shall
4 appropriate from the Illinois Tax Increment Fund in the State
5 treasury, an amount not to exceed $18,000,000 to pay to each
6 eligible municipality the Net State Sales Tax Increment to
7 which such municipality is entitled.
8 Beginning on January 1, 1993, each municipality's
9 proportional share of the Illinois Tax Increment Fund shall
10 be determined by adding the annual Net State Sales Tax
11 Increment and the annual Net Utility Tax Increment to
12 determine the Annual Total Increment. The ratio of the Annual
13 Total Increment of each municipality to the Annual Total
14 Increment for all municipalities, as most recently calculated
15 by the Department, shall determine the proportional shares of
16 the Illinois Tax Increment Fund to be distributed to each
17 municipality.
18 Beginning in October, 1993, and each January, April, July
19 and October thereafter, the Department of Revenue shall
20 certify to the Treasurer and the Comptroller the amounts
21 payable quarter annually during the fiscal year to each
22 municipality under this Section. The Comptroller shall
23 promptly then draw warrants, ordering the State Treasurer to
24 pay such amounts from the Illinois Tax Increment Fund in the
25 State treasury.
26 The Department of Revenue shall utilize the same periods
27 established for determining State Sales Tax Increment to
28 determine the Municipal Sales Tax Increment for the area
29 within a State Sales Tax Boundary and certify such amounts to
30 such municipal treasurer who shall transfer such amounts to
31 the special tax allocation fund.
32 The provisions of this subsection (1) do not apply to
33 additional municipal retailers' occupation or service
34 occupation taxes imposed by municipalities using their home
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1 rule powers or imposed pursuant to Sections 8-11-1.3,
2 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
3 receive from the State any share of the Illinois Tax
4 Increment Fund unless such municipality deposits all its
5 Municipal Sales Tax Increment and the local incremental real
6 property tax revenues, as provided herein, into the
7 appropriate special tax allocation fund. A municipality
8 located within an economic development project area created
9 under the County Economic Development Project Area Property
10 Tax Allocation Act which has abated any portion of its
11 property taxes which otherwise would have been deposited in
12 its special tax allocation fund shall not receive from the
13 State the Net Sales Tax Increment.
14 (2) A municipality which has adopted tax increment
15 allocation financing with regard to an industrial park or
16 industrial park conservation area, prior to January 1, 1988,
17 may by ordinance authorize the Department of Revenue to
18 annually certify and pay from the Illinois Tax Increment Fund
19 to such municipality for deposit in the municipality's
20 special tax allocation fund an amount equal to the Net State
21 Utility Tax Increment. Provided that for purposes of this
22 Section no amendments adding additional area to the
23 redevelopment project area shall be taken into account if
24 such amendments are adopted by the municipality after January
25 1, 1988. Municipalities adopting an ordinance under this
26 subsection (2) of this Section for a redevelopment project
27 area shall not be entitled to payment of State taxes
28 authorized under subsection (1) of this Section for the same
29 redevelopment project area which is within a State Sales Tax
30 Boundary. Nothing herein shall be construed to prevent a
31 municipality from receiving payment of State taxes authorized
32 under subsection (1) of this Section for a separate
33 redevelopment project area within a State Sales Tax Boundary
34 that does not overlap in any way with the redevelopment
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1 project area receiving payments of State taxes pursuant to
2 subsection (2) of this Section.
3 A certified copy of such ordinance shall be submitted to
4 the Department of Commerce and Community Affairs and the
5 Department of Revenue not later than 30 days after the
6 effective date of the ordinance.
7 When a municipality determines that a portion of an
8 increase in the aggregate amount of taxes paid by industrial
9 or commercial facilities under the Public Utilities Act, is
10 the result of an industrial or commercial facility initiating
11 operations in the redevelopment project area with a resulting
12 termination of such operations by such industrial or
13 commercial facility at another location in Illinois, the
14 Department of Revenue shall be notified by such municipality
15 that such industrial or commercial facility's liability under
16 the Public Utility Tax Act shall be included in the base from
17 which tax increments are calculated for purposes of State
18 payments to the affected municipality.
19 After receipt of the calculations by the public utility
20 as required by subsection (4) of this Section, the Department
21 of Revenue shall annually budget and the Illinois General
22 Assembly shall annually appropriate from the General Revenue
23 Fund through State Fiscal Year 1989, and thereafter from the
24 Illinois Tax Increment Fund, an amount sufficient to pay to
25 each eligible municipality the amount of incremental revenue
26 attributable to State electric and gas taxes as reflected by
27 the charges imposed on persons in the project area to which
28 such municipality is entitled by comparing the preceding
29 calendar year with the base year as determined by this
30 Section. Beginning on January 1, 1993, each municipality's
31 proportional share of the Illinois Tax Increment Fund shall
32 be determined by adding the annual Net State Utility Tax
33 Increment and the annual Net Utility Tax Increment to
34 determine the Annual Total Increment. The ratio of the Annual
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1 Total Increment of each municipality to the Annual Total
2 Increment for all municipalities, as most recently calculated
3 by the Department, shall determine the proportional shares of
4 the Illinois Tax Increment Fund to be distributed to each
5 municipality.
6 A municipality shall not receive any share of the
7 Illinois Tax Increment Fund from the State unless such
8 municipality imposes the maximum municipal charges authorized
9 pursuant to Section 9-221 of the Public Utilities Act and
10 deposits all municipal utility tax incremental revenues as
11 certified by the public utilities, and all local real estate
12 tax increments into such municipality's special tax
13 allocation fund.
14 (3) Within 30 days after the adoption of the ordinance
15 required by either subsection (1) or subsection (2) of this
16 Section, the municipality shall transmit to the Department of
17 Commerce and Community Affairs and the Department of Revenue
18 the following:
19 (a) if applicable, a certified copy of the
20 ordinance required by subsection (1) accompanied by a
21 complete list of street names and the range of street
22 numbers of each street located within the redevelopment
23 project area for which payments are to be made under this
24 Section in both the base year and in the year preceding
25 the payment year; and the addresses of persons registered
26 with the Department of Revenue; and, the name under which
27 each such retailer or serviceman conducts business at
28 that address, if different from the corporate name; and
29 the Illinois Business Tax Number of each such person (The
30 municipality shall update this list in the event of a
31 revision of the redevelopment project area, or the
32 opening or closing or name change of any street or part
33 thereof in the redevelopment project area, or if the
34 Department of Revenue informs the municipality of an
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1 addition or deletion pursuant to the monthly updates
2 given by the Department.);
3 (b) if applicable, a certified copy of the
4 ordinance required by subsection (2) accompanied by a
5 complete list of street names and range of street numbers
6 of each street located within the redevelopment project
7 area, the utility customers in the project area, and the
8 utilities serving the redevelopment project areas;
9 (c) certified copies of the ordinances approving
10 the redevelopment plan and designating the redevelopment
11 project area;
12 (d) a copy of the redevelopment plan as approved by
13 the municipality;
14 (e) an opinion of legal counsel that the
15 municipality had complied with the requirements of this
16 Act; and
17 (f) a certification by the chief executive officer
18 of the municipality that with regard to a redevelopment
19 project area: (1) the municipality has committed all of
20 the municipal tax increment created pursuant to this Act
21 for deposit in the special tax allocation fund, (2) the
22 redevelopment projects described in the redevelopment
23 plan would not be completed without the use of State
24 incremental revenues pursuant to this Act, (3) the
25 municipality will pursue the implementation of the
26 redevelopment plan in an expeditious manner, (4) the
27 incremental revenues created pursuant to this Section
28 will be exclusively utilized for the development of the
29 redevelopment project area, and (5) the increased revenue
30 created pursuant to this Section shall be used
31 exclusively to pay redevelopment project costs as defined
32 in this Act.
33 (4) The Department of Revenue upon receipt of the
34 information set forth in paragraph (b) of subsection (3)
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1 shall immediately forward such information to each public
2 utility furnishing natural gas or electricity to buildings
3 within the redevelopment project area. Upon receipt of such
4 information, each public utility shall promptly:
5 (a) provide to the Department of Revenue and the
6 municipality separate lists of the names and addresses of
7 persons within the redevelopment project area receiving
8 natural gas or electricity from such public utility.
9 Such list shall be updated as necessary by the public
10 utility. Each month thereafter the public utility shall
11 furnish the Department of Revenue and the municipality
12 with an itemized listing of charges imposed pursuant to
13 Sections 9-221 and 9-222 of the Public Utilities Act on
14 persons within the redevelopment project area.
15 (b) determine the amount of charges imposed
16 pursuant to Sections 9-221 and 9-222 of the Public
17 Utilities Act on persons in the redevelopment project
18 area during the base year, both as a result of municipal
19 taxes on electricity and gas and as a result of State
20 taxes on electricity and gas and certify such amounts
21 both to the municipality and the Department of Revenue;
22 and
23 (c) determine the amount of charges imposed
24 pursuant to Sections 9-221 and 9-222 of the Public
25 Utilities Act on persons in the redevelopment project
26 area on a monthly basis during the base year, both as a
27 result of State and municipal taxes on electricity and
28 gas and certify such separate amounts both to the
29 municipality and the Department of Revenue.
30 After the determinations are made in paragraphs (b) and
31 (c), the public utility shall monthly during the existence of
32 the redevelopment project area notify the Department of
33 Revenue and the municipality of any increase in charges over
34 the base year determinations made pursuant to paragraphs (b)
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1 and (c).
2 (5) The payments authorized under this Section shall be
3 deposited by the municipal treasurer in the special tax
4 allocation fund of the municipality, which for accounting
5 purposes shall identify the sources of each payment as:
6 municipal receipts from the State retailers occupation,
7 service occupation, use and service use taxes; and municipal
8 public utility taxes charged to customers under the Public
9 Utilities Act and State public utility taxes charged to
10 customers under the Public Utilities Act.
11 (6) Any municipality receiving payments authorized under
12 this Section for any redevelopment project area or area
13 within a State Sales Tax Boundary within the municipality
14 shall submit to the Department of Revenue and to the taxing
15 districts which are sent the notice required by Section 6 of
16 this Act annually within 180 days after the close of each
17 municipal fiscal year the following information for the
18 immediately preceding fiscal year:
19 (a) Any amendments to the redevelopment plan, the
20 redevelopment project area, or the State Sales Tax
21 Boundary.
22 (b) Audited financial statements of the special tax
23 allocation fund.
24 (c) Certification of the Chief Executive Officer of
25 the municipality that the municipality has complied with
26 all of the requirements of this Act during the preceding
27 fiscal year.
28 (d) An opinion of legal counsel that the
29 municipality is in compliance with this Act.
30 (e) An analysis of the special tax allocation fund
31 which sets forth:
32 (1) the balance in the special tax allocation
33 fund at the beginning of the fiscal year;
34 (2) all amounts deposited in the special tax
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1 allocation fund by source;
2 (3) all expenditures from the special tax
3 allocation fund by category of permissible
4 redevelopment project cost; and
5 (4) the balance in the special tax allocation
6 fund at the end of the fiscal year including a
7 breakdown of that balance by source. Such ending
8 balance shall be designated as surplus if it is not
9 required for anticipated redevelopment project costs
10 or to pay debt service on bonds issued to finance
11 redevelopment project costs, as set forth in Section
12 11-74.4-7 hereof.
13 (f) A description of all property purchased by the
14 municipality within the redevelopment project area
15 including
16 1. Street address
17 2. Approximate size or description of property
18 3. Purchase price
19 4. Seller of property.
20 (g) A statement setting forth all activities
21 undertaken in furtherance of the objectives of the
22 redevelopment plan, including:
23 1. Any project implemented in the preceding
24 fiscal year
25 2. A description of the redevelopment
26 activities undertaken
27 3. A description of any agreements entered
28 into by the municipality with regard to the
29 disposition or redevelopment of any property within
30 the redevelopment project area or the area within
31 the State Sales Tax Boundary.
32 (h) With regard to any obligations issued by the
33 municipality:
34 1. copies of bond ordinances or resolutions
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1 2. copies of any official statements
2 3. an analysis prepared by financial advisor
3 or underwriter setting forth: (a) nature and term of
4 obligation; and (b) projected debt service including
5 required reserves and debt coverage.
6 (i) A certified audit report reviewing compliance
7 with this statute performed by an independent public
8 accountant certified and licensed by the authority of the
9 State of Illinois. The financial portion of the audit
10 must be conducted in accordance with Standards for Audits
11 of Governmental Organizations, Programs, Activities, and
12 Functions adopted by the Comptroller General of the
13 United States (1981), as amended. The audit report shall
14 contain a letter from the independent certified public
15 accountant indicating compliance or noncompliance with
16 the requirements of subsection (q) of Section 11-74.4-3.
17 If the audit indicates that expenditures are not in
18 compliance with the law, the Department of Revenue shall
19 withhold State sales and utility tax increment payments
20 to the municipality until compliance has been reached,
21 and an amount equal to the ineligible expenditures has
22 been returned to the Special Tax Allocation Fund.
23 (6.1) After July 29, 1988, any funds which have not been
24 designated for use in a specific development project in the
25 annual report shall be designated as surplus. No funds may be
26 held in the Special Tax Allocation Fund for more than 36
27 months from the date of receipt unless the money is required
28 for payment of contractual obligations for specific
29 development project costs. If held for more than 36 months in
30 violation of the preceding sentence, such funds shall be
31 designated as surplus. Any funds designated as surplus must
32 first be used for early redemption of any bond obligations.
33 Any funds designated as surplus which are not disposed of as
34 otherwise provided in this paragraph, shall be distributed as
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1 surplus as provided in Section 11-74.4-7.
2 (6.2) Funds in an Affordable Housing Fund may only
3 remain uncommitted for 18 months after deposit. Thereafter,
4 the municipality will be deemed to be out of compliance with
5 this Act.
6 (7) Any appropriation made pursuant to this Section for
7 the 1987 State fiscal year shall not exceed the amount of $7
8 million and for the 1988 State fiscal year the amount of $10
9 million. The amount which shall be distributed to each
10 municipality shall be the incremental revenue to which each
11 municipality is entitled as calculated by the Department of
12 Revenue, unless the requests of the municipality exceed the
13 appropriation, then the amount to which each municipality
14 shall be entitled shall be prorated among the municipalities
15 in the same proportion as the increment to which the
16 municipality would be entitled bears to the total increment
17 which all municipalities would receive in the absence of this
18 limitation, provided that no municipality may receive an
19 amount in excess of 15% of the appropriation. For the 1987
20 Net State Sales Tax Increment payable in Fiscal Year 1989, no
21 municipality shall receive more than 7.5% of the total
22 appropriation; provided, however, that any of the
23 appropriation remaining after such distribution shall be
24 prorated among municipalities on the basis of their pro rata
25 share of the total increment. Beginning on January 1, 1993,
26 each municipality's proportional share of the Illinois Tax
27 Increment Fund shall be determined by adding the annual Net
28 State Sales Tax Increment and the annual Net Utility Tax
29 Increment to determine the Annual Total Increment. The ratio
30 of the Annual Total Increment of each municipality to the
31 Annual Total Increment for all municipalities, as most
32 recently calculated by the Department, shall determine the
33 proportional shares of the Illinois Tax Increment Fund to be
34 distributed to each municipality.
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1 (7.1) No distribution of Net State Sales Tax Increment
2 to a municipality for an area within a State Sales Tax
3 Boundary shall exceed in any State Fiscal Year an amount
4 equal to 3 times the sum of the Municipal Sales Tax
5 Increment, the real property tax increment and deposits of
6 funds from other sources, excluding state and federal funds,
7 as certified by the city treasurer to the Department of
8 Revenue for an area within a State Sales Tax Boundary. After
9 July 29, 1988, for those municipalities which issue bonds
10 between June 1, 1988 and 3 years from July 29, 1988 to
11 finance redevelopment projects within the area in a State
12 Sales Tax Boundary, the distribution of Net State Sales Tax
13 Increment during the 16th through 20th years from the date of
14 issuance of the bonds shall not exceed in any State Fiscal
15 Year an amount equal to 2 times the sum of the Municipal
16 Sales Tax Increment, the real property tax increment and
17 deposits of funds from other sources, excluding State and
18 federal funds.
19 (8) Any person who knowingly files or causes to be filed
20 false information for the purpose of increasing the amount of
21 any State tax incremental revenue commits a Class A
22 misdemeanor.
23 (9) The following procedures shall be followed to
24 determine whether municipalities have complied with the Act
25 for the purpose of receiving distributions after July 1, 1989
26 pursuant to subsection (1) of this Section 11-74.4-8a.
27 (a) The Department of Revenue shall conduct a
28 preliminary review of the redevelopment project areas and
29 redevelopment plans pertaining to those municipalities
30 receiving payments from the State pursuant to subsection
31 (1) of Section 8a of this Act for the purpose of
32 determining compliance with the following standards:
33 (1) For any municipality with a population of
34 more than 12,000 as determined by the 1980 U.S.
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1 Census: (a) the redevelopment project area, or in
2 the case of a municipality which has more than one
3 redevelopment project area, each such area, must be
4 contiguous and the total of all such areas shall not
5 comprise more than 25% of the area within the
6 municipal boundaries nor more than 20% of the
7 equalized assessed value of the municipality; (b)
8 the aggregate amount of 1985 taxes in the
9 redevelopment project area, or in the case of a
10 municipality which has more than one redevelopment
11 project area, the total of all such areas, shall be
12 not more than 25% of the total base year taxes paid
13 by retailers and servicemen on transactions at
14 places of business located within the municipality
15 under the Retailers' Occupation Tax Act, the Use Tax
16 Act, the Service Use Tax Act, and the Service
17 Occupation Tax Act. Redevelopment project areas
18 created prior to 1986 are not subject to the above
19 standards if their boundaries were not amended in
20 1986.
21 (2) For any municipality with a population of
22 12,000 or less as determined by the 1980 U.S.
23 Census: (a) the redevelopment project area, or in
24 the case of a municipality which has more than one
25 redevelopment project area, each such area, must be
26 contiguous and the total of all such areas shall not
27 comprise more than 35% of the area within the
28 municipal boundaries nor more than 30% of the
29 equalized assessed value of the municipality; (b)
30 the aggregate amount of 1985 taxes in the
31 redevelopment project area, or in the case of a
32 municipality which has more than one redevelopment
33 project area, the total of all such areas, shall not
34 be more than 35% of the total base year taxes paid
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1 by retailers and servicemen on transactions at
2 places of business located within the municipality
3 under the Retailers' Occupation Tax Act, the Use Tax
4 Act, the Service Use Tax Act, and the Service
5 Occupation Tax Act. Redevelopment project areas
6 created prior to 1986 are not subject to the above
7 standards if their boundaries were not amended in
8 1986.
9 (3) Such preliminary review of the
10 redevelopment project areas applying the above
11 standards shall be completed by November 1, 1988,
12 and on or before November 1, 1988, the Department
13 shall notify each municipality by certified mail,
14 return receipt requested that either (1) the
15 Department requires additional time in which to
16 complete its preliminary review; or (2) the
17 Department is issuing either (a) a Certificate of
18 Eligibility or (b) a Notice of Review. If the
19 Department notifies a municipality that it requires
20 additional time to complete its preliminary
21 investigation, it shall complete its preliminary
22 investigation no later than February 1, 1989, and by
23 February 1, 1989 shall issue to each municipality
24 either (a) a Certificate of Eligibility or (b) a
25 Notice of Review. A redevelopment project area for
26 which a Certificate of Eligibility has been issued
27 shall be deemed a "State Sales Tax Boundary."
28 (4) The Department of Revenue shall also issue
29 a Notice of Review if the Department has received a
30 request by November 1, 1988 to conduct such a review
31 from taxpayers in the municipality, local taxing
32 districts located in the municipality or the State
33 of Illinois, or if the redevelopment project area
34 has more than 5 retailers and has had growth in
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1 State sales tax revenue of more than 15% from
2 calendar year 1985 to 1986.
3 (b) For those municipalities receiving a Notice of
4 Review, the Department will conduct a secondary review
5 consisting of: (i) application of the above standards
6 contained in subsection (9)(a)(1)(a) and (b) or
7 (9)(a)(2)(a) and (b), and (ii) the definitions of
8 blighted and conservation area provided for in Section
9 11-74.4-3. Such secondary review shall be completed by
10 July 1, 1989.
11 Upon completion of the secondary review, the
12 Department will issue (a) a Certificate of Eligibility or
13 (b) a Preliminary Notice of Deficiency. Any municipality
14 receiving a Preliminary Notice of Deficiency may amend
15 its redevelopment project area to meet the standards and
16 definitions set forth in this paragraph (b). This amended
17 redevelopment project area shall become the "State Sales
18 Tax Boundary" for purposes of determining the State Sales
19 Tax Increment.
20 (c) If the municipality advises the Department of
21 its intent to comply with the requirements of paragraph
22 (b) of this subsection outlined in the Preliminary Notice
23 of Deficiency, within 120 days of receiving such notice
24 from the Department, the municipality shall submit
25 documentation to the Department of the actions it has
26 taken to cure any deficiencies. Thereafter, within 30
27 days of the receipt of the documentation, the Department
28 shall either issue a Certificate of Eligibility or a
29 Final Notice of Deficiency. If the municipality fails to
30 advise the Department of its intent to comply or fails to
31 submit adequate documentation of such cure of
32 deficiencies the Department shall issue a Final Notice of
33 Deficiency that provides that the municipality is
34 ineligible for payment of the Net State Sales Tax
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1 Increment.
2 (d) If the Department issues a final determination
3 of ineligibility, the municipality shall have 30 days
4 from the receipt of determination to protest and request
5 a hearing. Such hearing shall be conducted in accordance
6 with Sections 10-25, 10-35, 10-40, and 10-50 of the
7 Illinois Administrative Procedure Act. The decision
8 following the hearing shall be subject to review under
9 the Administrative Review Law.
10 (e) Any Certificate of Eligibility issued pursuant
11 to this subsection 9 shall be binding only on the State
12 for the purposes of establishing municipal eligibility to
13 receive revenue pursuant to subsection (1) of this
14 Section 11-74.4-8a.
15 (f) It is the intent of this subsection that the
16 periods of time to cure deficiencies shall be in addition
17 to all other periods of time permitted by this Section,
18 regardless of the date by which plans were originally
19 required to be adopted. To cure said deficiencies,
20 however, the municipality shall be required to follow the
21 procedures and requirements pertaining to amendments, as
22 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
23 (10) If a municipality adopts a State Sales Tax Boundary
24 in accordance with the provisions of subsection (9) of this
25 Section, such boundaries shall subsequently be utilized to
26 determine Revised Initial Sales Tax Amounts and the Net State
27 Sales Tax Increment; provided, however, that such revised
28 State Sales Tax Boundary shall not have any effect upon the
29 boundary of the redevelopment project area established for
30 the purposes of determining the ad valorem taxes on real
31 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
32 Act nor upon the municipality's authority to implement the
33 redevelopment plan for that redevelopment project area. For
34 any redevelopment project area with a smaller State Sales Tax
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1 Boundary within its area, the municipality may annually elect
2 to deposit the Municipal Sales Tax Increment for the
3 redevelopment project area in the special tax allocation fund
4 and shall certify the amount to the Department prior to
5 receipt of the Net State Sales Tax Increment. Any
6 municipality required by subsection (9) to establish a State
7 Sales Tax Boundary for one or more of its redevelopment
8 project areas shall submit all necessary information required
9 by the Department concerning such boundary and the retailers
10 therein, by October 1, 1989, after complying with the
11 procedures for amendment set forth in Sections 11-74.4-5 and
12 11-74.4-6 of this Act. Net State Sales Tax Increment
13 produced within the State Sales Tax Boundary shall be spent
14 only within that area. However expenditures of all municipal
15 property tax increment and municipal sales tax increment in a
16 redevelopment project area are not required to be spent
17 within the smaller State Sales Tax Boundary within such
18 redevelopment project area.
19 (11) The Department of Revenue shall have the authority
20 to issue rules and regulations for purposes of this Section.
21 (Source: P.A. 87-14; 87-1258; 87-1272; 88-45.)
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1 INDEX
2 Statutes amended in order of appearance
3 65 ILCS 5/11-74.4-2 from Ch. 24, par. 11-74.4-2
4 65 ILCS 5/11-74.4-3 from Ch. 24, par. 11-74.4-3
5 65 ILCS 5/11-74.4-4 from Ch. 24, par. 11-74.4-4
6 65 ILCS 5/11-74.4-5 from Ch. 24, par. 11-74.4-5
7 65 ILCS 5/11-74.4-8a from Ch. 24, par. 11-74.4-8a