SB2101sam003 96TH GENERAL ASSEMBLY

Sen. Jacqueline Y. Collins

Filed: 5/17/2009

09600SB2101sam003 LRB096 11443 RLJ 26989 a

AMENDMENT TO SENATE BILL 2101

AMENDMENT NO. ______. Amend Senate Bill 2101 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Illinois Land Banking Act.

Section 5. Findings. There is a continuing need to strengthen and revitalize the economy of this State. Vacant and abandoned properties threaten communities around the State because those properties diminish property values, enable crime, and create health hazards. Municipalities are often unaware of which properties are at risk of becoming vacant and abandoned. Municipalities have an interest in knowing the status of the housing stock located in their jurisdictions. Local governments should be empowered to acquire, develop, maintain, and dispose of vacant and abandoned properties that present a threat to communities around the State. Municipalities lack many of the tools necessary to ensure adequate property maintenance. Municipalities are unable to recover the reasonable costs of their property maintenance activity.

Section 10. Definitions. In this Act:

"Authority" means a land bank authority created by one or more municipalities pursuant to this Act.

"Intergovernmental agreement" means a contractual agreement between one or more governmental agencies, including, but not limited to, an agreement to jointly exercise any power, privilege, or authority that agencies share in common and that each might exercise separately under this Act.

Section 15. Authorization. A municipality or several municipalities may create a land bank authority with any or all of the powers and restrictions specified in this Act. In creating an authority, the municipality or several municipalities shall provide for all of the following:

(1) The incorporation of the authority as a public body, corporate and politic.

(2) Articles of incorporation for the authority, which must specify, in addition to any other required provision, that the purpose of the land bank authority is to stabilize communities by:

(A) Acquiring property which is (i) vacant or abandoned and in the foreclosure process, (ii) nonrevenue generating, or (iii) non-tax producing.

(B) Facilitating the reclamation and rehabilitation of property which is (i) vacant or abandoned and in the foreclosure process, (ii) nonrevenue generating, or (iii) non-tax producing.

(C) Holding and managing property which is (i) vacant or abandoned and in the foreclosure process, (ii) nonrevenue generating, or (iii) non-tax producing pending its reclamation or rehabilitation.

(3) The size of the board of directors for the authority.

(4) The qualifications, methods of selection, and terms of office of the board members.

A municipality may alter or dissolve its land bank authority at anytime.

Section 20. Election of tax remittance. A municipality may authorize the remittance of a portion of taxes collected on real property, pursuant to the Property Tax Code, to the authority that sold or conveyed real property in order to further the purposes of this Act. The municipality may elect to have up to 50% of those taxes remitted to the authority for up to 5 years after the land bank has completed the sale or conveyance of the property.

Section 25. Board of directors; conflicts of interest. An authority shall be governed by a board of directors, the board shall consist of 3 or more directors. The board of directors shall be composed of an odd number of members.

Notwithstanding any law to the contrary, any public officer shall be eligible to serve as a board member and the acceptance of the appointment shall neither terminate nor impair such public office. For the purposes of this Section, "public officer" means a person who is elected to a State or local government office.

Any State or local government employee shall be eligible to serve as a board member.

The board of the authority shall meet from time to time as required, and the presence of a majority of the board of directors shall constitute a quorum. A chairperson shall be elected from among the members, and he or she shall execute all deeds, leases, and contracts of the authority when authorized by the board. The board of the authority shall conduct meetings in accordance with the Open Meetings Act. Members of the board must file a written statement of economic interests in accordance with the Illinois Governmental Ethics Act. The board of the authority shall require that any member of the board with a direct or indirect interest in any matter disclose the member's interest to the board before the board takes any action on that matter. Members of the board of directors of an authority shall serve without compensation.

It shall be unlawful for a member of the board, the spouse of a member of the board, or an immediate family member of a member of the board to have or acquire a contract or have or acquire a direct pecuniary interest in a contract with the authority that relates to the authority. Any such contract shall be deemed null and void. Such limitations shall remain in force for one year after the conclusion of the person's term of office.

If a member of the board, the spouse of a member of the board, or an immediate family member of a member of the board is entitled to receive distributable income of a partnership, association, corporation, or other business entity, then it is unlawful for that partnership, association, corporation, or other business entity to have or acquire a contract or a direct pecuniary interest in a contract with the authority that relates to the authority. Any such contract shall be deemed null and void. Such limitations shall remain in force for one year after the conclusion of the person's term of office.

The board of the authority may establish an additional code of ethics for its directors, officers, and employees. The board of the authority may create additional policies and procedures requiring the disclosure of relationships that may give rise to a conflict of interest.

Section 30. Powers. A municipality or several municipalities may grant an authority any or all of the powers enumerated in this Section, subject to any conditions, restrictions, or limitations of the municipality, including the power to:

(a) Acquire property pursuant to Section 35 of this Act.

(b) Extinguish taxes pursuant to Section 40 of this Act.

(c) Adopt, amend, and repeal bylaws for the regulation of its affairs and the conduct of its business.

(d) Sue and be sued in its own name and plead and be impleaded, including, but not limited to, defending the authority in an action to clear title to property conveyed by the authority.

(e) Take any action, provide any notice, or instate any proceeding required to clear or quiet title to property held by the authority in order to establish ownership by and vest title to property in the authority.

(f) Be made party to and defend any action or proceeding concerning title claims against property held by the authority.

(g) Subject to the written approval of the board of directors and the municipality or several municipalities that created the authority, borrow money and issue bonds and notes according to the provisions of this Act.

(h) Enter into contracts and other instruments necessary, incidental, or convenient to the performance of its duties and the exercise of its powers, including, but not limited to, intergovernmental agreements, for the joint exercise of power under this Act.

(i) Enter into contracts for the management of, the collection of rent from, and the sale of real property held by an authority.

(j) Enter into contracts with other entities, public or private, for the provision of all or a portion of the services necessary for the management and operation of the authority.

(k) Solicit and accept gifts, grants, labor, loans, and other aid from any person, the federal government, this State, a political subdivision of this State or any agency of the federal government, or an intergovernmental entity created under the laws of this State or participate in any other way in a program of the federal government, this State, a political subdivision of this State, or an intergovernmental entity created under the laws of this State.

(l) Procure insurance against loss in connection with the property, assets, or activities of the authority.

(m) Control, hold, manage, maintain, operate, repair, lease as lessor, secure, prevent the waste or deterioration of, demolish, and take all other actions necessary to preserve the value of the property it holds or owns.

(n) Remediate environmental contamination on any property held by the authority.

(o) Fix, charge, and collect rents, fees, and charges for use of property under the control of the authority or for services provided by the authority.

(p) Grant or acquire a license, easement, or option with respect to property as the authority determines is reasonably necessary to achieve the purposes of the Act.

(q) Convey, sell, transfer, exchange, lease as lessor, or otherwise dispose of property, rights, or interests in property to which the authority holds a legal interest to any public or private person for value determined by the authority.

(r) Pay any tax or special assessment due on property acquired or owned by the authority.

(s) Subject to the Public Funds Investment Act, invest money of the authority, at the discretion of the board of directors of the authority, in instruments, obligations, securities, or property determined proper by the board of directors of the authority, and name and use depositories for its money.

(t) Employ its own employees or use employees of the authorizing municipality or employees of the parties to intergovernmental agreements.

(u) Employ legal and technical experts, other officers, agents, or employees and pay them from the funds of the authority and determine the qualifications, duties, and compensation of those it employs.

(v) The board of directors of an authority may delegate to one or more of its members, officers, agents, or employees any powers or duties it considers proper.

(w) Reimburse members of the board of directors of the authority for actual and necessary expenses subject to available appropriations.

(x) Contract for goods and services and engage personnel as necessary and engage the services of private consultants, managers, legal counsel, engineers, accounts, and auditors for rendering professional financial assistance and advice payable out of any money available to the authority.

(y) Prepare the reports or plans the authority considers necessary to assist it in the exercise of its powers under this Act and to monitor and evaluate progress under this Act.

The powers granted by this Act are in addition to the powers granted by any other law, statute, or charter.

The authority may only acquire property within the jurisdiction of one of the municipalities granting the authority power under this Act or within the jurisdiction of a governmental entity pursuant to an intergovernmental agreement with that governmental entity. Property located outside the corporate limits of a municipality is not considered within the jurisdiction of the municipality until annexation is completed pursuant to Division 7-1 of the Illinois Municipal Code.

An authority shall not exercise the power of eminent domain.

Section 35. Acquisition of property. An authority may acquire by gift, devise, transfer, exchange, foreclosure, purchase, or otherwise on terms and conditions and in a manner the authority considers proper, real property within the authority's jurisdiction, or rights or interests in real property within the authority's jurisdiction.

An authority may acquire by gift, devise, transfer, exchange, foreclosure, purchase, or otherwise on terms and conditions and in a manner the authority considers proper, real property outside of the authority's jurisdiction pursuant to an intergovernmental agreement, or rights or interests in real property outside of the authority's jurisdiction pursuant to an intergovernmental agreement.

An authority may acquire by gift, devise, transfer, exchange, foreclosure, purchase, or otherwise on terms and conditions and in a manner the authority considers proper, personal property, or rights or interests in personal property.

Real property acquired by an authority by purchase may be by purchase contract, lease purchase agreement, installment sales contract, land contract, or otherwise.

An authority may hold and own in its name any property acquired by it or conveyed to it by this State, a foreclosing governmental unit, a unit of local government, an intergovernmental entity created under the laws of this State, or any other public or private person, including, but not limited to, property without clear title.

All deeds, mortgages, contracts, leases, purchases, or other agreements regarding property of an authority, including agreements to acquire or dispose of real property, shall be approved by and executed in the name of the authority.

An authority shall have the right to purchase properties at tax sales conducted in accordance with Division 3.5 of Article 21 of the Property Tax Code. The authority may tender a bid at a tax sale that is a credit bid, consisting of the obligation of the authority to satisfy the component parts of the bid by payments to the respective political subdivisions.

Section 40. Taxes. When a property is acquired by the authority, the authority shall have the power to extinguish all outstanding county and city or consolidated government taxes, including school district taxes, at the time it sells or otherwise disposes of property.

Property of an authority is public property devoted to an essential public and governmental function and purpose. Income of the authority is considered to be for a public and governmental purpose. The property of the authority and its income and operation are exempt from all taxes and special assessments of this State and all units of local government. Bonds or notes issued by the authority, and the interest on and income from those bonds and notes, are exempt from all taxation of this State or a unit of local government.

Section 45. Receipt of taxes. All moneys received by an authority as payment of taxes, penalties, or interest, or from the redemption or sale of property subject to a tax lien of any taxing unit shall be returned to the appropriate local tax collecting unit in which the property is located.

Section 50. Proceeds. Except as otherwise provided in this Act, as required by other law, as required under the provisions of a deed, or as an authority otherwise agrees, any proceeds received by the authority may be retained by the authority for the purposes of this Act.

Section 55. Record maintenance. The authority shall maintain a written inventory of all property held by the authority. The property shall be inventoried and classified by the authority according to title status and suitability for use. The inventory shall be available for public inspection during regular business hours.

For each property held, the authority shall establish and maintain itemized records and accounts reflecting all transactions, expenditures, and revenues relating to all property held by the authority.

Section 99. Effective date. This Act takes effect upon becoming law.".