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90_HB0730
20 ILCS 3805/2 from Ch. 67 1/2, par. 302
Amends the Illinois Housing Development Act. Includes
within the Act's provisions a "residential mortgage" on real
property improved by a multi-unit structure as well as a
single-unit structure. Makes other stylistic changes.
Effective immediately.
LRB9001220PTcw
LRB9001220PTcw
1 AN ACT to amend the Illinois Housing Development Act by
2 changing Section 2.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Housing Development Act is
6 amended by changing Section 2 as follows:
7 (20 ILCS 3805/2) (from Ch. 67 1/2, par. 302)
8 Sec. 2. Definitions. As used in this Act:
9 (a) "Authority" means the Illinois Housing Development
10 Authority created in this Act.
11 (b) "Development costs" means the costs approved by the
12 Authority as appropriate expenditures which may be incurred
13 prior to commitment and initial closing of assisted mortgage
14 financing or of housing related commercial facilities,
15 including but not limited to: (1) payments for options to
16 purchase properties for the proposed development or
17 facilities, deposits on contracts of purchase, or, with the
18 prior approval of the Authority, payments for the purchases
19 of the such properties; (2) legal, organizational, and
20 consultants' expenses; (3) payment of fees for preliminary
21 feasibility studies and engineering and architectural work;
22 (4) necessary application and other fees to federal, State
23 and local government agencies; and (5) any such other
24 expenses as the Authority may deem appropriate to effectuate
25 the purposes of this Act.
26 (c) "Assisted mortgage financing" means a below market
27 interest rate mortgage insured or purchased, or a loan made,
28 by the Secretary of the United States Department of Housing
29 and Urban Development or by any other federal agency or
30 governmental corporation or by any political subdivision of
31 the State of Illinois or by any Illinois public corporation;
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1 a market interest rate mortgage insured or purchased, or a
2 loan made in combination with, or as augmented by, a program
3 of rent supplements, interest subsidies, leasing,
4 contributions or grants, or other programs as are now or
5 hereafter authorized by federal law to serve low or moderate
6 income persons; a mortgage or loan made pursuant to this Act;
7 or a mortgage or loan from any private or public source with
8 an interest rate and terms satisfactory to the Authority and
9 which will meet the requirements and purposes of this Act.
10 (d) "Lending institution" means any bank, trust company,
11 savings bank, savings and loan association, credit union,
12 national banking association, mortgage banking association,
13 federal savings and loan association, or federal credit unit
14 maintaining an office in the State, any insurance company or
15 any other entity or organization which makes or acquires
16 loans secured by real property.
17 (e) "Residential mortgage" means a loan owed to a
18 lending institution, to the Authority, or to a trustee for
19 holders of bonds or notes of the Authority or to a trustee
20 for owners of pools of mortgages, and secured by a lien on
21 real property located in the State and improved by a
22 residential structure of one or more living units or a mixed
23 residential and commercial structure, or unimproved if the
24 proceeds of the such loan shall be used for the erection of a
25 residential structure or a mixed residential and commercial
26 structure thereon, whether or not such loan is insured or
27 guaranteed by the United States of America or any agency or
28 corporation thereof.
29 (f) "Development" means a specific work or improvement
30 undertaken to provide dwelling accommodations, including the
31 acquisition, construction, or rehabilitation of lands,
32 buildings, and community facilities and in connection
33 therewith to provide nonhousing facilities which are a part
34 of a planned large-scale project or new community.
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1 (g) "Persons and families of low and moderate income"
2 and "Low income or moderate income persons" means families
3 and persons who cannot afford to pay the amounts at which
4 private enterprise, without assisted mortgage financing, is
5 providing a substantial supply of decent, safe, and sanitary
6 housing. The income limits for the admission of such families
7 and persons to developments shall be those established under
8 pursuant to the rules applicable to the assisted mortgage
9 financing program under which the such developments are
10 financed.
11 (h) "Moderate rentals" means rent charges less than
12 those rents generally charged for new dwelling units of
13 comparable size and location built by the unassisted efforts
14 of private enterprise and financed at then current market
15 interest rates.
16 (i) "Low rentals" means rent charges at least 10% lower
17 than moderate rentals.
18 (j) "Rents" or "Rentals" means shall mean fees or
19 charges paid for use of a development under this Act, whether
20 the development is operated on a landlord-tenant basis or as
21 a condominium or cooperative.
22 (k) "Limited-profit entity" means any individual, joint
23 venture, partnership, limited partnership, trust, or
24 corporation organized or existing under the laws of the State
25 of Illinois or authorized to do business in this State and
26 having articles of incorporation or comparable documents of
27 organization or a written agreement with the Authority which,
28 in addition to other requirements of law, provide:
29 (1) that if the limited-profit entity receives any
30 loan from the Authority as provided for in this Act, it
31 shall be authorized to enter into an agreement with the
32 Authority providing for regulations with respect to
33 rents, profits, dividends, and disposition of property or
34 franchises; and
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1 (2) that if the limited-profit entity receives a
2 loan, as provided for in this Act, the Chairman of the
3 Authority, acting with the prior approval of the
4 Authority, shall have the power, if he determines that
5 any such loan is in jeopardy of not being repaid, or that
6 the proposed development for which the such loan was made
7 is in jeopardy of not being constructed, or the
8 limited-profit entity is otherwise in violation of rules
9 and regulations promulgated by the Authority, to appoint
10 to the board of directors or other comparable controlling
11 body of the such limited-profit entity a number of new
12 directors or persons, which number shall be sufficient to
13 constitute a voting majority of the such board or
14 controlling body, notwithstanding any other provisions of
15 the limited-profit entity's articles of incorporation or
16 other documents of organization, or of any other
17 provisions of law, provided that this requirement set
18 forth in this paragraph (2) is not mandatory in the case
19 of loans made solely with monies from the Authority's
20 administrative fund.
21 (l) "Land development" means the process of clearing and
22 grading land, making, installing, or constructing waterlines
23 and water supply installations, sewerlines and sewage
24 disposal installations, steam, gas, and electric lines and
25 installations, roads, streets, curbs, gutters, sidewalks,
26 storm drainage facilities, and other installations or work,
27 whether on or off the site, necessary or desirable to prepare
28 land for residential, commercial, industrial, or other uses,
29 or to provide facilities for public or common use.
30 (m) "Nonprofit corporation" means a nonprofit
31 corporation incorporated pursuant to the provisions of the
32 Illinois General Not For Profit Corporation Act of 1986 or
33 the State Housing Act of 1933 and having articles of
34 incorporation which, in addition to other requirements of
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1 law, provide:
2 (1) that the corporation has been organized to
3 provide housing facilities for persons of low and
4 moderate income;
5 (2) that all income and earnings of the corporation
6 shall be used exclusively for corporation purposes and
7 that no part of the net income or net earnings of the
8 corporation shall inure to the benefit or profit of any
9 private individual, firm, corporation, partnership, or
10 association;
11 (3) that the corporation is in no manner controlled
12 or under the direction or acting in the substantial
13 interest of private individuals, firms, corporations,
14 partnerships, or associations seeking to derive profit or
15 gain therefrom or seeking to eliminate or minimize losses
16 in any dealings or transactions therewith;
17 (4) that if the corporation receives any loan or
18 advance from the Authority as provided for in this Act,
19 it shall be authorized to enter into an agreement with
20 the Authority providing for regulation with respect to
21 rents, profits, dividends, and disposition of property or
22 franchises;
23 (5) that if the corporation receives a loan or
24 advance, as provided for in this Act, the chairman of the
25 Authority, acting with the prior approval of the majority
26 of the members of the Authority, shall have the power if
27 he determines that any such loan or advance is in
28 jeopardy of not being repaid, or that the proposed
29 development for which the such loan or advance was made
30 is in jeopardy of not being constructed, or that some
31 part of the net income or net earnings of the corporation
32 is inuring to the benefit of any private individual,
33 firm, corporation, partnership, or association, or that
34 the corporation is in some manner controlled or under the
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1 direction of or acting in the substantial interest of any
2 private individual, firm, corporation, partnership, or
3 association seeking to derive benefit or gain therefrom
4 or seeking to eliminate or minimize losses in any
5 dealings or transactions therewith, or is in violation of
6 rules and regulations promulgated by the Authority to
7 appoint to the board of directors of the such corporation
8 a number of new directors, which number shall be
9 sufficient to constitute a majority of the such board,
10 notwithstanding any other provisions of the such articles
11 of incorporation or of any other provisions of law; and
12 (6) that each development of the such corporation
13 shall be operated exclusively for the benefit of the
14 persons who are housed in the such development which
15 shall include families or persons of low or moderate
16 income as required by this Act, and that the such
17 development shall reserve for families or persons of low
18 or moderate income the number and types of dwelling units
19 required by applicable federal or State law.
20 The requirements contained in paragraphs (2), (3), (5),
21 and (6) are not mandatory in the case of loans made solely
22 from the Authority's administrative fund.
23 (n) "State" means the State of Illinois.
24 (o) "Community facilities" means the land, buildings,
25 improvements and equipment for land development, for health,
26 welfare, recreational, social, educational and commercial
27 activities, and for public, common or municipal services.
28 (p) "Sinking fund payment" means the amount of money
29 specified in the resolution or resolutions authorizing term
30 bonds as payable into a sinking fund during a particular
31 period for the retirement of term bonds at maturity after
32 that such period, but shall not include any amount payable by
33 reason only of the maturity of a bond.
34 (q) "Housing related commercial facilities" means
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1 commercial facilities which are or are to be related to a
2 development. Commercial facilities are related to a
3 development if they are, in the sole judgment of the
4 Authority, located in the same area as the development and
5 (i) necessary or desirable in order to provide services for
6 residents of that area in which the development is located;
7 or (ii) a portion of the revenues of the commercial
8 facilities are to be used to provide funds for paying costs
9 of construction, acquisition, rehabilitation, operation,
10 maintenance of, or payment of debt service on the development
11 or (iii) necessary or desirable in order to make the
12 development successful, such as, without limitation,
13 eliminating or preventing slum or blighted conditions,
14 preserving historic structures or ensuring that facilities
15 are not inconsistent with the development. For purposes of
16 this Section, "commercial facilities" includes land,
17 buildings, improvements, equipment, and all ancillary
18 facilities for use for offices, stores, retirement homes,
19 hotels, financial institutions, service health care,
20 education, recreation or research establishments, or any
21 other commercial purpose.
22 (r) "Rate protection contract" means interest rate
23 exchange agreements; currency exchange agreements; forward
24 payment conversion agreements; contracts providing for
25 payment or receipt of funds based on levels of, or changes
26 in, interest rates, currency exchange rates, stock, or other
27 indices; contracts to exchange cash flows or a series of
28 payments; contracts, including without limitation, interest
29 rate caps; interest rate floors; interest rate locks;
30 interest rate collars; rate of return guarantees or
31 assurances, to manage payment, currency, rate, spread or
32 similar exposure; the obligation, right, or option to issue,
33 put, lend, sell, grant a security interest in, buy, borrow,
34 or otherwise acquire, a bond, note or other security or
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1 interest therein as an investment, as collateral, as a hedge,
2 or otherwise as a source or assurance of payment to or by the
3 Authority or as a reduction of the Authority's or an
4 obligor's risk exposure; repurchase agreements; securities
5 lending agreements; and other agreements or arrangements
6 similar to the foregoing.
7 (s) "Affordable Housing Program Trust Fund Bonds or
8 Notes" means bonds or notes issued by the Authority pursuant
9 to the provisions of this Act for the purposes of providing
10 affordable housing to low and very low income persons as
11 provided in the Illinois Affordable Housing Act through the
12 use or pledge, in whole or in part, of Trust Fund Moneys
13 dedicated or otherwise made available to the Authority.
14 (t) "Trust Fund Moneys" has the meaning given to that
15 term in Section 3 of the Illinois Affordable Housing Act.
16 (Source: P.A. 87-250; 88-93.)
17 Section 99. Effective date. This Act takes effect upon
18 becoming law.