99TH GENERAL ASSEMBLY State of Illinois 2015 and 2016 HB4077

Introduced , by Rep. Jehan A. Gordon-Booth

SYNOPSIS AS INTRODUCED:

New Act

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

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A BILL FOR

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1 AN ACT concerning land banks.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 1. Short title. This Act may be cited as the Land

5 Bank Act.

6 Section 5. Legislative intent.

7 The General Assembly finds and declares that Illinois'

8 communities are important to the social and economic vitality

9 of the State. Whether urban, suburban, or rural, many

10 communities are struggling to cope with vacant, abandoned, and

11 tax-delinquent properties. Evidence demonstrates that a

12 persistently high rate of vacant lots and structures harms the

13 safety and economic strength of individual communities and

14 neighborhoods within the State of Illinois.

15 There is a crisis in many cities and their metropolitan

16 areas caused by disinvestment in real property and resulting in

17 a significant amount of vacant and abandoned property. This

18 condition of vacant and abandoned property represents lost

19 revenue to local governments and large costs ranging from

20 demolition, effects of safety hazards, and spreading

21 deterioration of neighborhoods, including resulting mortgage

22 foreclosures.

23 The need exists to strengthen and revitalize the economy of

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1 the State and its units of local government by solving the

2 problems of vacant and abandoned property in a coordinated

3 manner and to foster the development of such property and

4 promote economic growth. These problems may include multiple

5 taxing jurisdictions lacking common policies, ineffective

6 property inspection, code enforcement and property

7 rehabilitation support, lengthy or inadequate foreclosure

8 proceedings, and lack of coordination and resources to support

9 economic revitalization.

10 There is an overriding public need to confront the problems

11 caused by vacant, abandoned, and tax-delinquent properties

12 through the creation of new tools available to communities

13 throughout Illinois enabling them to turn vacant spaces into

14 vibrant places. Land banks are one of the tools that can be

15 used by communities to facilitate the return of vacant,

16 abandoned, and tax-delinquent properties to productive use.

17 The primary focus of land bank operations is the

18 acquisition of real property that is tax delinquent, tax

19 foreclosed, vacant, or abandoned, and the use of tools

20 authorized in this Act to eliminate the harms and liabilities

21 caused by such properties. A land bank must ensure that

22 communities affected by vacant land have substantial and

23 meaningful involvement in decisions relating to those

24 communities, with the community involvement directing the land

25 bank's governance, structure, and operations. The State

26 recognizes public health and safety as an integral part of

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1 neighborhood stabilization and development; therefore, a land

2 bank should promote development that improves health and access

3 to health care within all communities and neighborhoods.

4 Section 10. Definitions. As used in this Act, unless the

5 context clearly indicates otherwise:

6 "Board of directors" or "board" means the board of

7 directors of a land bank.

8 "Land bank" means a land bank established as not-for-profit

9 corporation and in accordance with the provisions of this Act

10 and under the General Not For Profit Corporation Act of 1986.

11 "Foreclosing governmental unit" shall mean "taxing

12 district" as defined in Section 1-150 of the Property Tax Code.

13 "Unit of local government" means a municipality, township,

14 or county.

15 "School district" means a school district as defined under

16 the School District Intergovernmental Cooperation Renewable

17 Energy Act.

18 "Real property" means lands, lands under water, structures

19 and any and all easements, air rights, franchises, and

20 incorporeal hereditaments and every estate and right therein,

21 legal and equitable, including terms for years and liens by way

22 of judgment, mortgage or otherwise, and any and all fixtures

23 and improvements located thereon.

24 "Brownfields site" or "brownfield" mean a parcel of real

25 property, or a portion of the parcel, that has actual or

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1 perceived contamination and an active potential for

2 redevelopment.

3 Section 12. Intergovernmental agreements. Any one or more

4 public agencies may contract with any one or more other public

5 agencies to perform any governmental service, activity, or

6 undertaking or to combine, transfer, or exercise any powers,

7 functions, privileges, or authority which any of the public

8 agencies entering into the contract is authorized by law to

9 perform, provided that such contract shall be approved by the

10 governing bodies of each party to the contract and except where

11 specifically and expressly prohibited by law. Such contract

12 shall set forth fully the purposes, powers, rights, objectives

13 and responsibilities of the contracting parties.

14 Section 15. Creation and existence.

15 (a) Any foreclosing governmental unit may create a land

16 bank by ordinance or resolution specifying the following:

17 (1) the name of the land bank;

18 (2) the number of members of the board of directors,

19 which shall consist of an odd number of members, and shall

20 be not less than 5 members nor more than 11 members;

21 (3) the individuals to serve as the initial members of

22 the board of directors, and the length of terms for which

23 they are to serve;

24 (4) the qualifications of members of the board under

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1 subsection (d) of Section 20;

2 (5) the manner of selection or appointment, and terms

3 of office of members of the board;

4 (6) the articles of incorporation for the land bank,

5 which shall be filed with the Secretary of State in

6 accordance with the procedures set forth in this Act; and

7 (7) the land bank's website URL, which shall include:

8 (i) an up-to-date inventory of property owned by the land

9 bank; (ii) a record of all property conveyed by the land

10 bank to other parties, including, but not limited to, the

11 sale price for which the property was conveyed, the party

12 to whom the property was conveyed, a summary of any terms

13 and conditions of the conveyance, including the intended

14 use the property, and whether the sales price was less than

15 the fair market value; and (iii) the lank bank's policies,

16 strategic plans, and annual performance reports; the land

17 bank shall provide a mechanism through which individuals

18 may request and receive ongoing notifications as to changes

19 in the status of any property owned by the land bank.

20 (b) Two or more foreclosing governmental units may enter

21 into an intergovernmental agreement that creates a single land

22 bank to act on behalf of both foreclosing governmental units.

23 The intergovernmental agreement shall be authorized by and be

24 in accordance with the provisions of subsection (a) of this

25 Section. The agreement shall include provisions for

26 dissolution of the land bank.

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1 (c) Any foreclosing governmental units and any other unit

2 of local government may enter into an intergovernmental

3 agreement that creates a single land bank to act on behalf of

4 the foreclosing governmental unit and the unit of local

5 government. The intergovernmental agreement between the

6 foreclosing governmental unit and the unit of local government

7 shall be in accordance with the provisions of subsection (a) of

8 this Section. The agreement shall include provisions for

9 dissolution of the land bank.

10 (d) Except when a land bank is created under subsection (b)

11 or (c) of this Section, a county creating a land bank shall

12 have the power to acquire real property only in those portions

13 of the county located outside of the geographical boundaries of

14 any other land bank created by any other foreclosing

15 governmental unit located partially or wholly within the

16 county.

17 (e) A school district may participate in a land bank under

18 an intergovernmental agreement with the foreclosing

19 governmental unit that creates the land bank. Any such

20 intergovernmental agreement between a foreclosing governmental

21 unit and a school district shall specify the membership, if

22 any, of such school district on the board of directors of the

23 land bank and the actions of the land bank that are subject to

24 approval by the school district.

25 (f) Each land bank created under this Act shall be a

26 not-for-profit corporation, and shall have permanent and

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1 perpetual duration until terminated and dissolved in

2 accordance with the provisions of Section 60.

3 (g) The Auditor General shall have the authority to audit

4 any land bank under this Act.

5 Section 20. Board of directors.

6 (a) The initial size of the board shall be determined in

7 accordance with Section 15. Unless restricted by the actions or

8 agreements specified in Section 15, the provisions of this

9 Section shall apply.

10 The size of the board may be adjusted in accordance with

11 by-laws of the land bank.

12 (b) In the event that a land bank is created under an

13 intergovernmental agreement in accordance with Section 15,

14 such intergovernmental agreement shall meet the requirements

15 of subsection (a) of Section 15, provided that each foreclosing

16 governmental unit shall have at least one appointment to the

17 board.

18 (c) Any public officer shall be eligible to serve as a

19 board member and the acceptance of the appointment shall

20 neither terminate nor impair such public office. For purposes

21 of this Section, "public officer" shall mean a person who is

22 elected to an office representing a unit of local government.

23 Any employee or appointed officer of a unit of local government

24 shall be eligible to serve as a board member.

25 (d) Board members shall: (1) include individuals with

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1 expertise in relevant areas, including, but not limited to,

2 community planning, environmental health, public health, and

3 publicly accessible open space; (2) live or work within the

4 State; and (3) have particular knowledge of conditions and

5 needs in neighborhoods with significant rates of vacant, or

6 publicly-owned properties. One-fifth of the Board membership

7 shall be comprised of community residents or community members

8 from existing grassroots or community-based organizations.

9 These members shall have particular knowledge of conditions and

10 needs in communities with significant rates of vacant or

11 publicly-owned properties.

12 (e) The members of the board of directors shall select

13 annually from among themselves a chairman, vice-chairman,

14 treasurer, and such other officers as the board may determine,

15 and shall establish their duties as may be regulated by rules

16 adopted by the board.

17 (f) The board shall by rule establish requirements

18 concerning the attendance and participation of members in its

19 meetings, both regular and special. The rules may prescribe a

20 procedure whereby, if any member fails to comply with the

21 rules, that member may be disqualified and removed

22 automatically from office by a majority vote of the other

23 members of the board, and that member's position shall be

24 vacant as of the first day of the next calendar month. Any

25 person removed under the provisions of this subsection (f)

26 shall be ineligible for reappointment to the board, unless such

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1 reappointment is confirmed unanimously by the board.

2 (g) A vacancy on the board shall be filled in the same

3 manner as the original appointment.

4 (h) Board members shall serve without compensation, shall

5 have the power to organize and reorganize the executive,

6 administrative, clerical, and other departments of the land

7 bank, and to fix the duties, powers, and compensation of all

8 employees, agents, and consultants of the land bank. The board

9 may reimburse any member for reasonable expenses actually

10 incurred in the performance of duties on behalf of the land

11 bank.

12 (i) The board shall meet in regular session according to a

13 schedule adopted by the board, and also shall meet in special

14 session as convened by the chairman or upon written notice

15 signed by a majority of the members.

16 (j) A majority of the members of the board, not including

17 vacancies, shall constitute a quorum for the conduct of

18 business. All actions of the board shall be approved by the

19 affirmative vote of a majority of the members of that board

20 present and voting, provided, however, that no action of the

21 board shall be authorized on the following matters, unless

22 approved by a majority of the total board membership:

23 (1) adoption of by-laws and other rules and regulations

24 for conduct of the land bank's business;

25 (2) hiring or firing of any employee or contractor of

26 the land bank; this function may, by majority vote of the

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1 total board membership, be delegated to a specified officer

2 or committee of the land bank, under such terms and

3 conditions, and to the extent, that the board may specify;

4 (3) the incurring of debt;

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

6 (5) sale, lease, encumbrance, or alienation of real

7 property, improvements, or personal property.

8 (k) Members of a board shall not be liable personally on

9 the bonds or other obligations of the land bank, and the rights

10 of creditors shall be solely against such land bank.

11 (l) Members of the board shall not be permitted to vote by

12 proxy. Any member may request a recorded vote on any resolution

13 or action of the land bank.

14 Section 25. Staff. A land bank may employ a secretary, an

15 executive director, its own counsel and legal staff, and such

16 technical experts, and such other agents and employees,

17 permanent or temporary, as it may require, and may determine

18 the qualifications and fix the compensation and benefits of

19 such persons. A land bank may also enter into contracts and

20 agreements with units of local government for staffing services

21 to be provided to the land bank by units of local government or

22 agencies or departments thereof, or for a land bank to provide

23 such staffing services to units of local government or agencies

24 or departments thereof.

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1 Section 30. Powers and responsibilities.

2 (a) A land bank shall be incorporated as a not-for-profit

3 corporation under Illinois law. The land bank's powers shall

4 include all powers necessary to carry out and effectuate the

5 purposes and provisions of this Act, provided there is

6 meaningful community involvement regarding decisions that

7 impact those communities. The land bank shall have the

8 following powers, in addition to those otherwise granted:

9 (1) to adopt, amend, and repeal bylaws for the

10 regulation of its affairs and the conduct of its business;

11 (2) to sue and be sued in its own name and plead and be

12 impleaded in all civil actions, including, but not limited

13 to, actions to clear title to property of the land bank;

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

15 (4) to make contracts, give guarantees and incur

16 liabilities, borrow money at such rates of interest as the

17 land bank may determine;

18 (5) to issue negotiable revenue bonds and notes

19 according to the provisions of this Act;

20 (6) to procure insurance or guarantees from the State

21 or federal government of the payments of any debts or

22 portion of debt incurred by the land bank, and to pay

23 premiums in connection with such insurance;

24 (7) to enter into contracts and other instruments

25 necessary to the performance of its duties and the exercise

26 of its powers;

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1 (8) to enter into contracts and other instruments

2 necessary to the performance of functions by the land bank

3 on behalf of units of local government or agencies or

4 departments of units of local government, or the

5 performance by units of local government or agencies or

6 departments of units of local government of functions on

7 behalf of the land bank;

8 (9) to make and execute contracts and other instruments

9 necessary to the exercise of the powers of the land bank;

10 and any contract or instrument when signed by the chairman

11 or vice-chairman of the land bank, or by an authorized use

12 of their facsimile signatures, and by the secretary or

13 assistant secretary, or, treasurer or assistant treasurer

14 of the land bank, or by an authorized use of their

15 facsimile signatures, shall be held to have been properly

16 executed for and on its behalf;

17 (10) to procure insurance against losses in connection

18 with the real property, assets, or activities of the land

19 bank;

20 (11) to invest money of the land bank, at the

21 discretion of the board of directors, in instruments,

22 obligations, securities, or property determined proper by

23 the board of directors, and name and use depositories for

24 its money;

25 (12) to enter into contracts for the management of, the

26 collection of rent from, or the sale of real property of

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1 the land bank;

2 (13) to design, develop, construct, demolish,

3 reconstruct, rehabilitate, renovate, relocate, and

4 otherwise improve real property or rights or interests in

5 real property;

6 (14) to fix, charge, and collect rents, fees, and

7 charges for the use of real property of the land bank and

8 for services provided by the land bank;

9 (15) to grant or acquire a license, easement, lease (as

10 lessor or as lessee), or option with respect to real

11 property of the land bank;

12 (16) to enter into partnership, joint ventures, and

13 other collaborative relationships with units of local

14 government and other public and private entities for the

15 ownership, management, development, and disposition of

16 real property;

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

18 properties;

19 (18) to develop a redevelopment plan to be approved by

20 the foreclosing governmental unit or units;

21 (19) to be subject to building codes and zoning laws of

22 the corresponding unit of local government; and

23 (20) to enter in agreements with a foreclosing

24 governmental unit for the distribution of revenues to the

25 foreclosing governmental unit and school district.

26 (b) The land bank shall create a strategic plan every 3

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1 years that sets forth the goals of the land bank. The plan

2 shall also describe how the goals will be tracked and include

3 action items necessary to achieve each goal. On an annual

4 basis, the land bank shall prepare a performance report that

5 includes, at a minimum, the following items: (i) a list of all

6 properties acquired by the land bank; (ii) a list of all

7 properties conveyed by the land bank that includes the price,

8 name of the buyer, proposed use, a summary of any special terms

9 and conditions of the conveyance, and whether the sale price

10 was less than fair market value; and (iii) an analysis

11 demonstrating the land bank's yearly progress towards

12 fulfilling the goals set forth in the strategic plan, and if

13 achievement or reasonable progress toward such goals is not

14 achieved, a revised plan to be executed during the following

15 year.

16 (c) A land bank shall neither possess nor exercise the

17 power of eminent domain.

18 Section 35. Acquisition of property.

19 (a) The real property of a land bank and its income and

20 operations are exempt from all taxation by the State of

21 Illinois and by any of its political subdivisions.

22 (b) The land bank may acquire real property or interests in

23 real property by gift, devise, transfer, exchange,

24 foreclosure, purchase, or otherwise on terms and conditions and

25 in a manner the land bank considers proper.

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1 (c) The land bank may acquire real property by purchase

2 contracts, lease purchase agreements, installment sales

3 contracts, and land contracts and may accept transfers from

4 units of local government upon such terms and conditions as

5 agreed to by the land bank and the unit of local government.

6 Notwithstanding any other law to the contrary, any unit of

7 local government may transfer to the land bank real property

8 and interests in real property of the unit of local government

9 on such terms and conditions and according to such procedures

10 as determined by the unit of local government.

11 (d) The land bank shall maintain all of its real property

12 in accordance with the laws and ordinances of the jurisdiction

13 in which the real property is located.

14 (e) The land bank shall not own or hold real property

15 located outside the jurisdictional boundaries of the

16 foreclosing governmental unit or units which created the land

17 bank; provided, however, that a land bank may be granted

18 authority under an intergovernmental agreement with another

19 unit of local government to manage and maintain real property

20 located within the jurisdiction of such other unit of local

21 government.

22 (f) Notwithstanding any other provision of law to the

23 contrary, any unit of local government may convey to a land

24 bank real property and interests in real property on such terms

25 and conditions, form and substance of consideration, and

26 procedures, all as determined by the transferring unit of local

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1 government in its discretion.

2 (g) The acquisition of real property by a land bank under

3 this Act, from entities other than political subdivisions,

4 shall be limited to real property that is tax-delinquent,

5 tax-foreclosed, vacant or abandoned; provided, however, that a

6 land bank shall have authority to enter into agreements to

7 purchase other real property consistent with an approved

8 redevelopment plan.

9 (h) The land bank shall maintain and make available for

10 public inspection a complete inventory of all property received

11 by the land bank. Such inventory shall include: the location of

12 the parcel; the purchase price, if any, for each parcel

13 received; the current value assigned to the property for

14 purposes of real property taxation; the amount, if any, owed to

15 the locality for real property taxation; the identity of the

16 transferor; and any conditions or restrictions applicable to

17 the property.

18 (i) All parcels received by the land bank shall be listed

19 on the received inventory established under subsection (h) of

20 this Section within one week of acquisition and shall remain in

21 such inventory for one week prior to disposition.

22 (j) Failure to comply with the requirements in subsections

23 (h) and (i) of this Section with regard to any particular

24 parcel shall cause such acquisition by the land bank to be null

25 and void.

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1 Section 40. Disposition of property.

2 (a) The land bank shall hold in its own name all real

3 property acquired by the land bank irrespective of the identity

4 of the transferor of such property.

5 (b) The land bank shall maintain and make available for

6 public inspection a complete inventory of all real property

7 dispositions by the land bank. The inventory shall include a

8 complete copy of the sales contract, including all terms and

9 conditions, including, but not limited to, any form of

10 compensation received by the land bank or any other party that

11 is not included within the sale price.

12 (c) The land bank shall determine and set forth in policies

13 and procedures of the board of directors, the general terms and

14 conditions for consideration to be received by the land bank

15 for the transfer of real property and interests in real

16 property, which consideration may take the form of monetary

17 payments and secured financial obligations, covenants and

18 conditions related to the present and future use of the

19 property, contractual commitments of the transferee, and any

20 other forms of consideration as are consistent with State and

21 local law.

22 (d) The land bank may convey, exchange, sell, transfer,

23 lease as lessor, grant, release, demise, or pledge any and all

24 interests in, upon, or to real property of the land bank.

25 (e) Upon creating a land bank, any foreclosing governmental

26 unit shall determine, in consultation with the impacted

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1 community, how the real property conveyed by the land bank will

2 be used, selecting one or more of the following uses:

3 (1) neighborhood health clinics and centers,

4 hospitals, or urgent care clinics;

5 (2) services and enrichment facilities, such as senior

6 and community centers;

7 (3) community open space, green-space, or wildlife

8 conservation areas; or

9 (4) urban agriculture, such as community gardens and

10 composting sites.

11 (f) The land bank may offer properties at less than fair

12 market value where the land bank finds that the proposed use

13 would create beneficial community impact, such as: community

14 facilities that provide needed services to residents;

15 community open space; and any other specified uses established

16 under subsection (e). The land bank shall allow applications

17 for less than fair market value, including nominal disposition,

18 for any property owned by the land bank. In calculating a

19 reduced sales price, the land bank shall consider the benefit

20 provided by the proposed use and, if applicable, the amount of

21 discount needed to make the project both initially financially

22 feasible and continually sustainable.

23 (g) A foreclosing governmental unit may require that any

24 particular form of disposition of real property, or any

25 disposition of real property located within specified

26 jurisdictions, be subject to voting and approval requirements

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1 of the board of directors. Except and unless restricted or

2 constrained in this manner, the board of directors may delegate

3 to officers and employees the authority to enter into and

4 execute agreements, instruments of conveyance, and all other

5 related documents pertaining to the conveyance of real property

6 by the land bank.

7 (h) All property dispositions shall be listed on the

8 property disposition inventory established under subsection

9 (b) of this Section within one week of disposition. Such

10 records shall remain available for public inspection in the

11 property disposition inventory indefinitely.

12 (i) Failure to comply with the requirements of subsection

13 (h) of this Section shall subject the land bank to a civil

14 penalty of $100 per violation up to a maximum of $10,000 for

15 each parcel, recoverable in an action brought by the Attorney

16 General or State's Attorney. The Attorney General or State's

17 Attorney may also seek rescission of the real property

18 transaction.

19 Section 45. Financing of land bank operations.

20 (a) A land bank may receive funding through grants and

21 loans from the foreclosing governmental unit or units which

22 created the land bank, from other units of local government,

23 from the State, from the federal government, and from other

24 public and private sources.

25 (b) A land bank may receive and retain payments for

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1 services rendered, for rents and leasehold payments received,

2 for consideration for disposition of real and personal

3 property, for proceeds of insurance coverage for losses

4 incurred, for income from investments, and for any other asset

5 and activity lawfully permitted to a land bank under this Act.

6 (c) Upon the adoption of an ordinance or resolution by unit

7 of local government, school district, or any taxing district,

8 50% of the real property taxes collected on any specific parcel

9 of real property identified by such unit of local government,

10 school district, or any taxing jurisdiction may be remitted to

11 the land bank in accordance with procedures established by

12 rules adopted by the Department of Revenue. Such allocation of

13 real property tax revenues shall begin with the first taxable

14 year following the date of conveyance and shall continue for a

15 period of 5 years.

16 Section 50. Bonds.

17 (a) Any foreclosing governmental unit or school district

18 which receives funds from the Department of Revenue, including

19 without limitation funds received pursuant to Sections 8-11-1,

20 8-11-1.4 or 8-11-5 of the Illinois Municipal Code, the Home

21 Rule County Retailers' Occupation Tax Act or the Home Rule

22 County Service Occupation Tax Act, Section 5.01 of the Local

23 Mass Transit District Act, Sections 2 or 12 of "An Act in

24 relation to State revenue sharing with local governmental

25 entities", approved July 31, 1969, from the Department of

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1 Transportation pursuant to Section 8 of the Motor Fuel Tax Law,

2 or from the State Superintendent of Education (directly or

3 indirectly through regional superintendents of schools)

4 pursuant to Article 18 of The School Code, or any foreclosing

5 governmental unit or school district which receives other funds

6 which are at any time in the custody of the State Treasurer,

7 the State Comptroller, the Department of Revenue, the

8 Department of Transportation or the State Superintendent of

9 Education may, by appropriate proceedings, pledge to a land

10 bank which it has created by ordinance or resolution, or with

11 which it has an intergovernmental agreement, any or all of such

12 receipts to the extent that such receipts are necessary to

13 provide revenues to pay the principal of, premium, if any, and

14 interest on, and other fees related to, or to secure, any bonds

15 issued by the land bank. Any pledge of such receipts (or any

16 portion thereof) shall constitute a first and prior lien

17 thereon and shall be binding from the time the pledge is made.

18 (b) Upon receipt of a certified copy of proceedings under

19 subsection (a) by the State Treasurer, the State Comptroller,

20 the Department of Revenue, the Department of Transportation or

21 the State Superintendent of Education, as the case may be, such

22 Department or State Superintendent shall direct the State

23 Comptroller and State Treasurer to pay to, or on behalf of, the

24 land bank or such other entity (including, without limitation,

25 any trustee) all or such portion of the pledged receipts from

26 the Department of Revenue, or the Department of Transportation

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1 or the State Superintendent of Education (directly or

2 indirectly through regional superintendents of schools), as

3 the case may be, sufficient to pay the principal of and

4 premium, if any, and interest on, and other fees related to,

5 the local governmental securities for which the pledge was

6 made. The proceedings shall constitute authorization for a

7 directive to the State Comptroller to cause orders to be drawn

8 and to the State Treasurer to pay in accordance with the

9 directive. To the extent that the land bank or its designee

10 notifies the Department of Revenue, the Department of

11 Transportation or the State Superintendent of Education, as the

12 case may be, that the foreclosing governmental unit or school

13 district has previously paid to the land bank or its designee

14 the amount of any principal, premium, interest and fees payable

15 from such pledged receipts, the State Comptroller shall cause

16 orders to be drawn and the State Treasurer shall pay such

17 pledged receipts to the foreclosing governmental unit or school

18 district as if they were not pledged receipts. To the extent

19 that such receipts are pledged and paid to the land bank or

20 such other entity, any taxes which have been levied or fees or

21 charges assessed pursuant to law on account of the issuance of

22 such bonds issued by the land bank shall be paid to the

23 foreclosing governmental unit or school district and may be

24 used for the purposes which the pledged receipts would have

25 been used.

26 (c) Any such foreclosing governmental unit or school

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1 district may, by such proceedings, direct that such pledged

2 receipts payable to such foreclosing governmental unit or

3 school district be paid to the land bank or such other entity

4 (including without limitation any trustee) upon a default in

5 the payment of any principal of, premium, if any, or interest

6 on, or fees relating to, any of the bonds issued by the land

7 bank which have been sold or delivered to the land bank or its

8 designee or any of the bonds issued by the land bank which have

9 been sold or delivered to the land bank or its designee and

10 which are secured by such lease rental payments. If such local

11 governmental security is in default as to the payment of

12 principal thereof, premium, if any, or interest thereon, or

13 fees relating thereto, to the extent that the State Treasurer,

14 the State Comptroller, the Department of Revenue, the

15 Department of Transportation or the State Superintendent of

16 Education (directly or indirectly through regional

17 superintendents of schools) shall be the custodian at any time

18 of any other available funds or moneys pledged to the payment

19 of such bonds issued by the land bank under this Section and

20 due or payable to such a foreclosing governmental unit or

21 school district at any time subsequent to written notice to the

22 State Comptroller and State Treasurer from the land bank or any

23 entity acting on behalf of the land bank (including, without

24 limitation, any trustee) to the effect that such foreclosing

25 governmental unit or school district has not paid or is in

26 default as to payment of the principal of, premium, if any, or

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1 interest on, or fees relating to, any local government security

2 sold or delivered to the land bank or any such entity

3 (including, without limitation, any trustee) or has not paid or

4 is in default as to the payment of such lease rental payments

5 securing the payment of the principal of, premiums, if any, or

6 interest on, or other fees relating to, any local government

7 security sold or delivered to the land bank or such other

8 entity (including, without limitation, any trustee):

9 (1) The State Comptroller and the State Treasurer shall

10 withhold the payment of such funds or moneys from such

11 foreclosing governmental unit or school district until the

12 amount of such principal, premium, if any, interest or fees

13 then due and unpaid has been paid to the land bank or any

14 such entity (including, without limitation, any trustee),

15 or the State Comptroller and the State Treasurer have been

16 advised that arrangements, satisfactory to the land bank or

17 such entity, have been made for the payment of such

18 principal, premium, if any, interest and fees; and

19 (2) Within 10 days after a demand for payment by the

20 land bank or such entity given to such foreclosing

21 governmental unit or school district, the State Treasurer

22 and the State Comptroller, the State Treasurer shall pay

23 such funds or moneys as are legally available therefor to

24 the land bank or such entity for the payment of principal

25 of, premium, if any, or interest on, or fees relating to,

26 such bonds issued by the land bank. The land bank or any

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1 such entity may carry out this Section and exercise all the

2 rights, remedies and provisions provided or referred to in

3 this Section.

4 (d) Upon the sale or delivery of any local government

5 securities of the land bank or its designee, the foreclosing

6 governmental unit or school district which issued such local

7 government securities shall be deemed to have agreed that upon

8 its failure to pay interest or premium, if any, on, or

9 principal of, or fees relating to, the local government

10 securities sold or delivered to the land bank or any entity

11 acting on behalf of the land bank (including, without

12 limitation, any trustee) when payable, all statutory defenses

13 to nonpayment are thereby waived. Upon a default in the payment

14 of principal of or interest on any bonds issued by the land

15 bank and sold by the land bank or its designee, and upon demand

16 on the foreclosing governmental unit or school district for

17 payment, if the bonds issued by the land bank are payable from

18 property taxes and funds are not legally available in the

19 treasury of the foreclosing governmental unit or school

20 district to make payment, an action in mandamus for the levy of

21 a tax by the foreclosing governmental unit or school district

22 to pay the principal of or interest on the bonds issued by the

23 land bank shall lie, and the land bank or such entity shall be

24 constituted a holder or owner of the bonds issued by the land

25 bank as being in default. Upon the occurrence of any failure or

26 default with respect to any bonds issued by the land bank, the

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1 land bank or such entity may thereupon avail itself of all

2 remedies, rights and provisions of law applicable in the

3 circumstances, and the failure to exercise or exert any rights

4 or remedies within a time or period provided by law may not be

5 raised as a defense by the foreclosing governmental unit or

6 school district.

7 (e) The issuance of bonds under this Section is deemed an

8 essential public and governmental purpose. Interest on the

9 bonds issued under this Section after the effective date of

10 this Act is exempt from taxation within this State. For

11 purposes of Section 250 of the Illinois Income Tax Act, the

12 exemption of the interest from bonds granted under this Section

13 shall terminate after all of the bonds have been paid. The

14 amount of such income that shall be added and then subtracted

15 on the Illinois income tax return of a taxpayer, pursuant to

16 Section 203 of the Illinois Income Tax Act, from federal

17 adjusted gross income or federal taxable income in computing

18 Illinois base income shall be the interest net of any bond

19 premium amortization.

20 Section 55. Public records and public meetings.

21 (a) The board shall cause minutes and a record to be kept

22 of all its proceedings. Except as otherwise provided in this

23 Section, the land bank shall be subject to the Open Meetings

24 Act and the Freedom of Information Act.

25 (b) The board of the land bank shall hold quarterly public

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1 meetings, shall make each meeting's agenda available on the

2 land bank's website at least 10 days in advance of each

3 meeting, and shall allow for public comment on matters under

4 deliberation at each such public meeting. Provided, however,

5 the quarterly requirement shall not preclude the board of the

6 land bank from holding public meetings as often as it deems

7 necessary.

8 (c) A land bank shall hold a public hearing prior to

9 financing or issuance of bonds. The land bank shall schedule

10 and hold a public hearing and solicit public comment. After the

11 conclusion of the public hearing and comments, the land bank

12 shall consider the results of the public hearing and comments

13 with respect to the proposed actions. This consideration by the

14 land bank shall include the accommodation of the public

15 interest with respect to such actions. If an accommodation is

16 deemed in the best interest of the community proposed actions

17 shall include that accommodation.

18 (d) In addition to any other report required by this Act,

19 the land bank, through its chairperson, shall annually deliver,

20 in oral and written form, a report to the units of local

21 government in which the land bank is located. This report shall

22 be presented by March 15 of each year to the governing body or

23 board of the units of local government. The report shall

24 describe in detail the projects undertaken by the land bank

25 during the past year, the moneys expended by the land bank

26 during the past year, and the administrative activities of the

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1 land bank during the past year. At the conclusion of the

2 report, the chairperson of the land bank shall be prepared to

3 answer the questions of the units of local government with

4 respect to the projects undertaken by the authority during the

5 past year, the moneys expended by the unit of local government

6 during the past year, and the administrative activities of the

7 units of local government during the past year.

8 Section 60. Dissolution of land bank. A land bank may be

9 dissolved as a not-for-profit corporation 60 calendar days

10 after an affirmative resolution approved by two-thirds of the

11 membership of the board of directors. Sixty calendar days

12 advance written notice of consideration of a resolution of

13 dissolution shall be given to the foreclosing governmental unit

14 or units that created the land bank, shall be published in a

15 local newspaper of general circulation, and shall be sent

16 certified mail to the trustee of any outstanding bonds of the

17 land bank. Upon dissolution of the land bank, all real

18 property, personal property, and other assets of the land bank

19 shall become the assets of the foreclosing governmental unit or

20 units that created the land bank. In the event that 2 or more

21 foreclosing governmental units create a land bank in accordance

22 with Section 15, the withdrawal of one or more foreclosing

23 governmental units shall not result in the dissolution of the

24 land bank unless the intergovernmental agreement so provides

25 and there is no foreclosing governmental unit that desires to

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1 continue the existence of the land bank.

2 Section 65. Conflicts of interest. No member of the board

3 or employee of a land bank shall acquire any interest, direct

4 or indirect, in real property of the land bank, in any real

5 property to be acquired by the land bank, or in any real

6 property to be acquired from the land bank. No member of the

7 board or employee of a land bank shall have any interest,

8 direct or indirect, in any contract or proposed contract for

9 materials or services to be furnished or used by a land bank.

10 The board may adopt supplemental regulations addressing

11 potential conflicts of interest and ethical guidelines for

12 members of the board and land bank employees.

13 Section 70. Construction. The provisions of this Act shall

14 be construed liberally to effectuate the legislative intent and

15 the purposes as complete and independent authorization for the

16 performance of each and every act authorized by this Act, and

17 all powers granted shall be broadly interpreted to effectuate

18 the intent and purposes and not as a limitation of powers.

19 Except as otherwise expressly set forth in this Act, in the

20 exercise of its powers and duties under this Act and its powers

21 relating to property held by the land bank, the land bank shall

22 have complete control as fully and completely as if it

23 represented a private property owner and shall not be subject

24 to restrictions imposed by the charter, ordinances, or

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1 resolutions of a unit of local government.

2 Section 75. Delinquent property tax enforcement. Units of

3 local government may enter into contracts to sell some or all

4 of the delinquent tax liens held by the unit of local

5 government to a land bank, subject to the following conditions:

6 (a) The consideration to be paid may be more or less than

7 the face amount of the tax liens sold.

8 (b) Property owners shall be given advance notice of such

9 sale in the same form and manner as is provided by Section

10 21-135 of the Property Tax Code. Failure to provide such notice

11 or the failure of the addressee to receive the same shall not

12 in any way affect the validity of any sale of a tax lien or tax

13 liens or the validity of the taxes or interest prescribed by

14 law.

15 (c) The unit of local government shall set the terms and

16 conditions of the contract of sale.

17 (d) Thirty days before the commencement of any foreclosure

18 action, the land bank must provide to the unit of local

19 government a list of liens to be foreclosed. The unit of local

20 government may, at its sole option and discretion, repurchase a

21 lien or liens on the foreclosure list from the land bank. The

22 repurchase price shall be the amount of the lien or liens plus

23 any accrued interest and collection fees incurred by the land

24 bank. The land bank shall provide the foreclosure list to the

25 unit of local government, along with the applicable repurchase

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1 price of each lien, by certified mail, and the unit of local

2 government shall have 30 days from receipt to notify the land

3 bank of its option to purchase one or more of the liens. If the

4 unit of local government opts to purchase the lien, it shall

5 provide payment within 30 days of receipt of the repurchase

6 price of said lien or liens. If the unit of local government

7 shall fail to opt to repurchase the lien or liens the land bank

8 shall have the right to commence a foreclosure action

9 immediately.

10 (e) The sale of a tax lien under this Act shall not shorten

11 the otherwise applicable redemption period or change the

12 otherwise applicable interest rate.

13 (f) After sale, the purchaser shall comply with the

14 provisions for notice of sale, redemption rights, notice of

15 expiration of period of redemption, and issuance of deed in

16 accordance with Article 22 of the Property Tax Code.

17 (g) The provisions of Section 21-72 of the Property Tax

18 Code shall apply so far as is practicable to a contract for the

19 sale of tax liens under this Act.

20 (h) If the court orders a public sale under Article 21 of

21 Division 3.5 of the Property Tax Code, and the purchaser of the

22 property is the land bank, then the form, substance, and timing

23 of the land bank's payment of the sales price may be according

24 to such agreement as is mutually acceptable to the plaintiff

25 and the land bank. The obligation of the land bank to perform

26 in accordance with such agreement shall be deemed to be in full

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1 satisfaction of the tax claim which was the basis for the

2 judgment.

3 (i) Notwithstanding any other provision of law to the

4 contrary, in the event that no unit of local government elects

5 to tender a bid at a judicially ordered sale under the

6 provisions of Article 21 of Division 3.5 of the Property Tax

7 Code, the land bank may tender a bid at such sale in an amount

8 equal to the total amount of all municipal claims and liens

9 which were the basis for the judgment. In the event of such

10 tender by the land bank the property shall be deemed sold to

11 the land bank regardless of any bids by any other third

12 parties. The bid of the land bank shall be paid as to its form,

13 substance, and timing according to such agreement as is

14 mutually acceptable to the plaintiff and the land bank. The

15 obligation of the land bank to perform in accordance with such

16 agreement shall be deemed to be in full satisfaction of the

17 municipal claim which was the basis for the judgment. The land

18 bank, as purchaser at such sale, shall take and forever

19 thereafter have, an absolute title to the property sold, free

20 and discharged of all tax and municipal claims, liens,

21 mortgages, charges, and estates of any kind. The deed to the

22 land bank shall be executed, acknowledged, and delivered within

23 30 days of the sale.

24 Section 80. Contracts.

25 (a) The land bank may, in its discretion, assign contracts

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1 for supervision and coordination to the successful bidder for

2 any subdivision of work for which the land bank receives bids.

3 Any construction, demolition, renovation, and reconstruction

4 contract awarded by the land bank shall contain any other terms

5 and conditions as the land bank may deem desirable.

6 (b) The land bank should award contracts, whenever possible

7 under subsection (c) of this Section, to locally-owned and

8 staffed, or minority-owned construction, demolition,

9 renovation, and reconstruction companies, in order maximize

10 the employment of community residents.

11 (c) The land bank shall not award any construction,

12 demolition, renovation, and reconstruction contract greater

13 than $10,000 except to the lowest bidder who, in the opinion of

14 the land bank, is qualified to perform the work required and

15 who is responsible and reliable. The land bank may, however,

16 reject any or all bids or waive any informality in a bid if it

17 believes that the public interest will be promoted by that

18 rejection of the bid. The land bank may reject any bid, if, in

19 its judgment, the business and technical organization, plant,

20 resources, financial standing, or experience of the bidder

21 justifies such rejection in view of the work to be performed.

22 Section 85. Existing land banks. This Act shall not apply

23 to any land bank in existence before the effective date of this

24 Act.