Bill Text: IL HB0442 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Illinois Finance Authority Act. Makes a technical change in a Section concerning official acts of the Authority, meetings of the Authority and the Advisory Councils, and audits by the Auditor General.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2012-01-13 - Public Act . . . . . . . . . 97-0654 [HB0442 Detail]

Download: Illinois-2011-HB0442-Introduced.html

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AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Finance Authority Act is amended by
changing Section 840-5 as follows:
(20 ILCS 3501/840-5)
Sec. 840-5. The Authority shall have the following powers:
(a) To fix and revise from time to time and charge and
collect rates, rents, fees and charges for the use of and for
the services furnished or to be furnished by a project or other
health facilities owned, financed or refinanced by the
Authority or any portion thereof and to contract with any
person, partnership, association or corporation or other body,
public or private, in respect thereto; to coordinate its
policies and procedures and cooperate with recognized health
facility rate setting mechanisms which may now or hereafter be
established.
(b) To establish rules and regulations for the use of a
project or other health facilities owned, financed or
refinanced by the Authority or any portion thereof and to
designate a participating health institution as its agent to
establish rules and regulations for the use of a project or
other health facilities owned by the Authority undertaken for

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that participating health institution.
(c) To establish or contract with others to carry out on
its behalf a health facility project cost estimating service
and to make this service available on all projects to provide
expert cost estimates and guidance to the participating health
institution and to the Authority. In order to implement this
service and, through it, to contribute to cost containment, the
Authority shall have the power to require such reasonable
reports and documents from health facility projects as may be
required for this service and for the development of cost
reports and guidelines. The Authority may appoint a Technical
Committee on Health Facility Project Costs and Cost
Containment.
(d) To make mortgage or other secured or unsecured loans to
or for the benefit of any participating health institution for
the cost of a project in accordance with an agreement between
the Authority and the participating health institution;
provided that no such loan shall exceed the total cost of the
project as determined by the participating health institution
and approved by the Authority; provided further that such loans
may be made to any entity affiliated with a participating
health institution if the proceeds of such loan are made
available to or applied for the benefit of such participating
health institution.
(e) To make mortgage or other secured or unsecured loans to
or for the benefit of a participating health institution in

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accordance with an agreement between the Authority and the
participating health institution to refund outstanding
obligations, loans, indebtedness or advances issued, made,
given or incurred by such participating health institution for
the cost of a project; including the function to issue bonds
and make loans to or for the benefit of a participating health
institution to refinance indebtedness incurred by such
participating health institution in projects undertaken and
completed or for other health facilities acquired prior to or
after the enactment of this Act when the Authority finds that
such refinancing is in the public interest, and either
alleviates a financial hardship of such participating health
institution, or is in connection with other financing by the
Authority for such participating health institution or may be
expected to result in a lessened cost of patient care and a
saving to third parties, including government, and to others
who must pay for care, or any combination thereof; provided
further that such loans may be made to any entity affiliated
with a participating health institution if the proceeds of such
loan are made available to or applied for the benefit of such
participating health institution.
(f) To mortgage all or any portion of a project or other
health facilities and the property on which any such project or
other health facilities are located whether owned or thereafter
acquired, and to assign or pledge mortgages, deeds of trust,
indentures of mortgage or trust or similar instruments, notes,

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and other securities of participating health institutions to
which or for the benefit of which the Authority has made loans
or of entities affiliated with such institutions and the
revenues therefrom, including payments or income from any
thereof owned or held by the Authority, for the benefit of the
holders of bonds issued to finance such project or health
facilities or issued to refund or refinance outstanding
obligations, loans, indebtedness or advances of participating
health institutions as permitted by this Act.
(g) To lease to a participating health institution the
project being financed or refinanced or other health facilities
conveyed to the Authority in connection with such financing or
refinancing, upon such terms and conditions as the Authority
shall deem proper, and to charge and collect rents therefor and
to terminate any such lease upon the failure of the lessee to
comply with any of the obligations thereof; and to include in
any such lease, if desired, provisions that the lessee thereof
shall have options to renew the lease for such period or
periods and at such rent as shall be determined by the
Authority or to purchase any or all of the health facilities or
that upon payment of all of the indebtedness incurred by the
Authority for the financing of such project or health
facilities or for refunding outstanding obligations, loans,
indebtedness or advances of a participating health
institution, then the Authority may convey any or all of the
project or such other health facilities to the lessee or

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lessees thereof with or without consideration.
(h) To make studies of needed health facilities that could
not sustain a loan were it made under this Act and to recommend
remedial action to the General Assembly; to do the same with
regard to any laws or regulations that prevent health
facilities from benefiting from this Act.
(i) To assist the Department of Commerce and Economic
Opportunity to establish and implement a program to assist
health facilities to identify and arrange financing for energy
conservation projects in buildings and facilities owned or
leased by health facilities.
(j) To assist the Department of Human Services in
establishing a low interest loan program to help child care
centers and family day care homes serving children of low
income families under Section 22.4 of the Children and Family
Services Act. The Authority, on or after the effective date of
this amendatory Act of the 97th General Assembly, is authorized
to convert existing agreements for financial aid in accordance
with Section 840-5(j) to permanent capital to leverage
additional private capital and establish a revolving loan fund
for nonprofit corporations providing human services under
contract to the State.
(k) To assist the Department of Public Health and nursing
homes in undertaking nursing home conversion projects in
accordance with the Older Adult Services Act.
(Source: P.A. 93-205, eff. 1-1-04; 93-1031, eff. 8-27-04.)

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