Bill Text: IL HB1517 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2015-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB1517 Detail]
Download: Illinois-2015-HB1517-Introduced.html
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1 | AN ACT concerning land banks.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the Land | |||||||||||||||||||
5 | Bank Act.
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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.
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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.
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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.
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11 | "Foreclosing governmental unit" shall mean "taxing | ||||||
12 | district" as defined in Section 1-150 of the Property Tax Code.
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13 | "Unit of local government" means a municipality, township, | ||||||
14 | or county.
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15 | "School district" means a school district as defined under | ||||||
16 | the School District Intergovernmental Cooperation Renewable | ||||||
17 | Energy Act.
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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.
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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.
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3 | Section 15. Creation and existence. | ||||||
4 | (a) Any foreclosing governmental unit may create a land | ||||||
5 | bank by ordinance or resolution specifying the following: | ||||||
6 | (1) the name of the land bank; | ||||||
7 | (2) the number of members of the board of directors, | ||||||
8 | which shall consist of an odd number of members, and shall | ||||||
9 | be not less than 5 members nor more than 11 members; | ||||||
10 | (3) the individuals to serve as the initial members of | ||||||
11 | the board of directors, and the length of terms for which | ||||||
12 | they are to serve; | ||||||
13 | (4) the qualifications of members of the board under | ||||||
14 | subsection (d) of Section 20; | ||||||
15 | (5) the manner of selection or appointment, and terms | ||||||
16 | of office of members of the board; and | ||||||
17 | (6) the articles of incorporation for the land bank, | ||||||
18 | which shall be filed with the Secretary of State in | ||||||
19 | accordance with the procedures set forth in this Act. | ||||||
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 |
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1 | dissolution of the land bank. | ||||||
2 | (c) Any foreclosing governmental units and any other unit | ||||||
3 | of local government may enter into an intergovernmental | ||||||
4 | agreement that creates a single land bank to act on behalf of | ||||||
5 | the foreclosing governmental unit and the unit of local | ||||||
6 | government. The intergovernmental agreement between the | ||||||
7 | foreclosing governmental unit and the unit of local government | ||||||
8 | shall be in accordance with the provisions of subsection (a) of | ||||||
9 | this Section. The agreement shall include provisions for | ||||||
10 | dissolution of the land bank. | ||||||
11 | (d) Except when a land bank is created under subsection (b) | ||||||
12 | or (c) of this Section, a county creating a land bank shall | ||||||
13 | have the power to acquire real property only in those portions | ||||||
14 | of the county located outside of the geographical boundaries of | ||||||
15 | any other land bank created by any other foreclosing | ||||||
16 | governmental unit located partially or wholly within the | ||||||
17 | county. | ||||||
18 | (e) A school district may participate in a land bank under | ||||||
19 | an intergovernmental agreement with the foreclosing | ||||||
20 | governmental unit that creates the land bank. Any such | ||||||
21 | intergovernmental agreement between a foreclosing governmental | ||||||
22 | unit and a school district shall specify the membership, if | ||||||
23 | any, of such school district on the board of directors of the | ||||||
24 | land bank and the actions of the land bank that are subject to | ||||||
25 | approval by the school district. | ||||||
26 | (f) Each land bank created under this Act shall be a |
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1 | not-for-profit corporation, and shall have permanent and | ||||||
2 | perpetual duration until terminated and dissolved in | ||||||
3 | accordance with the provisions of Section 60. | ||||||
4 | (g) The Auditor General shall have the authority to audit | ||||||
5 | any land bank under this Act.
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6 | Section 20. Board of directors. | ||||||
7 | (a) The initial size of the board shall be determined in | ||||||
8 | accordance with Section 15. Unless restricted by the actions or | ||||||
9 | agreements specified in Section 15, the provisions of this | ||||||
10 | Section shall apply. | ||||||
11 | The size of the board may be adjusted in accordance with | ||||||
12 | by-laws of the land bank. | ||||||
13 | (b) In the event that a land bank is created under an | ||||||
14 | intergovernmental agreement in accordance with Section 15, | ||||||
15 | such intergovernmental agreement shall meet the requirements | ||||||
16 | of subsection (a) of Section 15, provided that each foreclosing | ||||||
17 | governmental unit shall have at least one appointment to the | ||||||
18 | board. | ||||||
19 | (c) Any public officer shall be eligible to serve as a | ||||||
20 | board member and the acceptance of the appointment shall | ||||||
21 | neither terminate nor impair such public office. For purposes | ||||||
22 | of this Section, "public officer" shall mean a person who is | ||||||
23 | elected to an office representing a unit of local government. | ||||||
24 | Any employee or appointed officer of a unit of local government | ||||||
25 | shall be eligible to serve as a board member. |
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1 | (d) Board members shall: (1) include individuals with | ||||||
2 | expertise in relevant areas, including, but not limited to, | ||||||
3 | community planning, environmental health, public health, and | ||||||
4 | publicly accessible open space; and (2) live or work within the | ||||||
5 | State. One-fifth of the Board membership shall be comprised of | ||||||
6 | community residents or community members from existing | ||||||
7 | grassroots or community-based organizations. These members | ||||||
8 | shall have particular knowledge of conditions and needs in | ||||||
9 | communities with significant rates of vacant or publicly-owned | ||||||
10 | properties. | ||||||
11 | (e) The members of the board of directors shall select | ||||||
12 | annually from among themselves a chairman, vice-chairman, | ||||||
13 | treasurer, and such other officers as the board may determine, | ||||||
14 | and shall establish their duties as may be regulated by rules | ||||||
15 | adopted by the board. | ||||||
16 | (f) The board shall by rule establish requirements | ||||||
17 | concerning the attendance and participation of members in its | ||||||
18 | meetings, both regular and special. The rules may prescribe a | ||||||
19 | procedure whereby, if any member fails to comply with the | ||||||
20 | rules, that member may be disqualified and removed | ||||||
21 | automatically from office by a majority vote of the other | ||||||
22 | members of the board, and that member's position shall be | ||||||
23 | vacant as of the first day of the next calendar month. Any | ||||||
24 | person removed under the provisions of this subsection (f) | ||||||
25 | shall be ineligible for reappointment to the board, unless such | ||||||
26 | reappointment is confirmed unanimously by the board. |
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1 | (g) A vacancy on the board shall be filled in the same | ||||||
2 | manner as the original appointment. | ||||||
3 | (h) Board members shall serve without compensation, shall | ||||||
4 | have the power to organize and reorganize the executive, | ||||||
5 | administrative, clerical, and other departments of the land | ||||||
6 | bank, and to fix the duties, powers, and compensation of all | ||||||
7 | employees, agents, and consultants of the land bank. The board | ||||||
8 | may reimburse any member for reasonable expenses actually | ||||||
9 | incurred in the performance of duties on behalf of the land | ||||||
10 | bank. | ||||||
11 | (i) The board shall meet in regular session according to a | ||||||
12 | schedule adopted by the board, and also shall meet in special | ||||||
13 | session as convened by the chairman or upon written notice | ||||||
14 | signed by a majority of the members. | ||||||
15 | (j) A majority of the members of the board, not including | ||||||
16 | vacancies, shall constitute a quorum for the conduct of | ||||||
17 | business. All actions of the board shall be approved by the | ||||||
18 | affirmative vote of a majority of the members of that board | ||||||
19 | present and voting, provided, however, that no action of the | ||||||
20 | board shall be authorized on the following matters, unless | ||||||
21 | approved by a majority of the total board membership: | ||||||
22 | (1) adoption of by-laws and other rules and regulations | ||||||
23 | for conduct of the land bank's business; | ||||||
24 | (2) hiring or firing of any employee or contractor of | ||||||
25 | the land bank; this function may, by majority vote of the | ||||||
26 | total board membership, be delegated to a specified officer |
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1 | or committee of the land bank, under such terms and | ||||||
2 | conditions, and to the extent, that the board may specify; | ||||||
3 | (3) the incurring of debt; | ||||||
4 | (4) adoption or amendment of the annual budget; and | ||||||
5 | (5) sale, lease, encumbrance, or alienation of real | ||||||
6 | property, improvements, or personal property. | ||||||
7 | (k) Members of a board shall not be liable personally on | ||||||
8 | the bonds or other obligations of the land bank, and the rights | ||||||
9 | of creditors shall be solely against such land bank. | ||||||
10 | (l) Members of the board shall not be permitted to vote by | ||||||
11 | proxy. Any member may request a recorded vote on any resolution | ||||||
12 | or action of the land bank.
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13 | Section 25. Staff. A land bank may employ a secretary, an | ||||||
14 | executive director, its own counsel and legal staff, and such | ||||||
15 | technical experts, and such other agents and employees, | ||||||
16 | permanent or temporary, as it may require, and may determine | ||||||
17 | the qualifications and fix the compensation and benefits of | ||||||
18 | such persons. A land bank may also enter into contracts and | ||||||
19 | agreements with units of local government for staffing services | ||||||
20 | to be provided to the land bank by units of local government or | ||||||
21 | agencies or departments thereof, or for a land bank to provide | ||||||
22 | such staffing services to units of local government or agencies | ||||||
23 | or departments thereof.
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24 | Section 30. Powers. |
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1 | (a) A land bank shall be incorporated as a not-for-profit | ||||||
2 | corporation under Illinois law. The land bank's powers shall | ||||||
3 | include all powers necessary to carry out and effectuate the | ||||||
4 | purposes and provisions of this Act, provided there is | ||||||
5 | meaningful community involvement regarding decisions that | ||||||
6 | impact those communities. The land bank shall have the | ||||||
7 | following powers, in addition to those otherwise granted:
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8 | (1) to adopt, amend, and repeal bylaws for the | ||||||
9 | regulation of its affairs and the conduct of its business;
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10 | (2) to sue and be sued in its own name and plead and be | ||||||
11 | impleaded in all civil actions, including, but not limited | ||||||
12 | to, actions to clear title to property of the land bank;
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13 | (3) to adopt a seal and to alter the same at pleasure;
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14 | (4) to make contracts, give guarantees and incur | ||||||
15 | liabilities, borrow money at such rates of interest as the | ||||||
16 | land bank may determine;
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17 | (5) to issue negotiable revenue bonds and notes | ||||||
18 | according to the provisions of this Act;
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19 | (6) to procure insurance or guarantees from the State | ||||||
20 | or federal government of the payments of any debts or | ||||||
21 | portion of debt incurred by the land bank, and to pay | ||||||
22 | premiums in connection with such insurance;
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23 | (7) to enter into contracts and other instruments | ||||||
24 | necessary to the performance of its duties and the exercise | ||||||
25 | of its powers;
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26 | (8) to enter into contracts and other instruments |
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1 | necessary to the performance of functions by the land bank | ||||||
2 | on behalf of units of local government or agencies or | ||||||
3 | departments of units of local government, or the | ||||||
4 | performance by units of local government or agencies or | ||||||
5 | departments of units of local government of functions on | ||||||
6 | behalf of the land bank;
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7 | (9) to make and execute contracts and other instruments | ||||||
8 | necessary to the exercise of the powers of the land bank; | ||||||
9 | and any contract or instrument when signed by the chairman | ||||||
10 | or vice-chairman of the land bank, or by an authorized use | ||||||
11 | of their facsimile signatures, and by the secretary or | ||||||
12 | assistant secretary, or, treasurer or assistant treasurer | ||||||
13 | of the land bank, or by an authorized use of their | ||||||
14 | facsimile signatures, shall be held to have been properly | ||||||
15 | executed for and on its behalf;
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16 | (10) to procure insurance against losses in connection | ||||||
17 | with the real property, assets, or activities of the land | ||||||
18 | bank;
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19 | (11) to invest money of the land bank, at the | ||||||
20 | discretion of the board of directors, in instruments, | ||||||
21 | obligations, securities, or property determined proper by | ||||||
22 | the board of directors, and name and use depositories for | ||||||
23 | its money;
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24 | (12) to enter into contracts for the management of, the | ||||||
25 | collection of rent from, or the sale of real property of | ||||||
26 | the land bank;
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1 | (13) to design, develop, construct, demolish, | ||||||
2 | reconstruct, rehabilitate, renovate, relocate, and | ||||||
3 | otherwise improve real property or rights or interests in | ||||||
4 | real property;
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5 | (14) to fix, charge, and collect rents, fees, and | ||||||
6 | charges for the use of real property of the land bank and | ||||||
7 | for services provided by the land bank;
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8 | (15) to grant or acquire a license, easement, lease (as | ||||||
9 | lessor or as lessee), or option with respect to real | ||||||
10 | property of the land bank;
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11 | (16) to enter into partnership, joint ventures, and | ||||||
12 | other collaborative relationships with units of local | ||||||
13 | government and other public and private entities for the | ||||||
14 | ownership, management, development, and disposition of | ||||||
15 | real property;
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16 | (17) to inventory vacant, abandoned and tax foreclosed | ||||||
17 | properties;
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18 | (18) to develop a redevelopment plan to be approved by | ||||||
19 | the foreclosing governmental unit or units;
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20 | (19) to be subject to building codes and zoning laws of | ||||||
21 | the corresponding unit of local government;
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22 | (20) to enter in agreements with a foreclosing | ||||||
23 | governmental unit for the distribution of revenues to the | ||||||
24 | foreclosing governmental unit and school district; and
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25 | (21) to do all other things necessary to achieve the | ||||||
26 | objectives and purposes of the land bank or other laws that |
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1 | relate to the purposes and responsibility of the land bank. | ||||||
2 | (b) A land bank shall neither possess nor exercise the | ||||||
3 | power of eminent domain.
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4 | Section 35. Acquisition of property. | ||||||
5 | (a) The real property of a land bank and its income and | ||||||
6 | operations are exempt from all taxation by the State of | ||||||
7 | Illinois and by any of its political subdivisions.
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8 | (b) The land bank may acquire real property or interests in | ||||||
9 | real property by gift, devise, transfer, exchange, | ||||||
10 | foreclosure, purchase, or otherwise on terms and conditions and | ||||||
11 | in a manner the land bank considers proper.
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12 | (c) The land bank may acquire real property by purchase | ||||||
13 | contracts, lease purchase agreements, installment sales | ||||||
14 | contracts, and land contracts and may accept transfers from | ||||||
15 | units of local government upon such terms and conditions as | ||||||
16 | agreed to by the land bank and the unit of local government. | ||||||
17 | Notwithstanding any other law to the contrary, any unit of | ||||||
18 | local government may transfer to the land bank real property | ||||||
19 | and interests in real property of the unit of local government | ||||||
20 | on such terms and conditions and according to such procedures | ||||||
21 | as determined by the unit of local government.
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22 | (d) The land bank shall maintain all of its real property | ||||||
23 | in accordance with the laws and ordinances of the jurisdiction | ||||||
24 | in which the real property is located.
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25 | (e) The land bank shall not own or hold real property |
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1 | located outside the jurisdictional boundaries of the | ||||||
2 | foreclosing governmental unit or units which created the land | ||||||
3 | bank; provided, however, that a land bank may be granted | ||||||
4 | authority under an intergovernmental agreement with another | ||||||
5 | unit of local government to manage and maintain real property | ||||||
6 | located within the jurisdiction of such other unit of local | ||||||
7 | government.
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8 | (f) Notwithstanding any other provision of law to the | ||||||
9 | contrary, any unit of local government may convey to a land | ||||||
10 | bank real property and interests in real property on such terms | ||||||
11 | and conditions, form and substance of consideration, and | ||||||
12 | procedures, all as determined by the transferring unit of local | ||||||
13 | government in its discretion.
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14 | (g) The acquisition of real property by a land bank under | ||||||
15 | this Act, from entities other than political subdivisions, | ||||||
16 | shall be limited to real property that is tax-delinquent, | ||||||
17 | tax-foreclosed, vacant or abandoned; provided, however, that a | ||||||
18 | land bank shall have authority to enter into agreements to | ||||||
19 | purchase other real property consistent with an approved | ||||||
20 | redevelopment plan.
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21 | (h) The land bank shall maintain and make available for | ||||||
22 | public inspection a complete inventory of all property received | ||||||
23 | by the land bank. Such inventory shall include: the location of | ||||||
24 | the parcel; the purchase price, if any, for each parcel | ||||||
25 | received; the current value assigned to the property for | ||||||
26 | purposes of real property taxation; the amount, if any, owed to |
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1 | the locality for real property taxation; the identity of the | ||||||
2 | transferor; and any conditions or restrictions applicable to | ||||||
3 | the property.
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4 | (i) All parcels received by the land bank shall be listed | ||||||
5 | on the received inventory established under subsection (h) of | ||||||
6 | this Section within one week of acquisition and shall remain in | ||||||
7 | such inventory for one week prior to disposition.
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8 | (j) Failure to comply with the requirements in subsections | ||||||
9 | (h) and (i) of this Section with regard to any particular | ||||||
10 | parcel shall cause such acquisition by the land bank to be null | ||||||
11 | and void.
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12 | Section 40. Disposition of property. | ||||||
13 | (a) The land bank shall hold in its own name all real | ||||||
14 | property acquired by the land bank irrespective of the identity | ||||||
15 | of the transferor of such property.
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16 | (b) The land bank shall maintain and make available for | ||||||
17 | public inspection a complete inventory of all real property | ||||||
18 | dispositions by the land bank. The inventory shall include a | ||||||
19 | complete copy of the sales contract, including all terms and | ||||||
20 | conditions, including, but not limited to, any form of | ||||||
21 | compensation received by the land bank or any other party that | ||||||
22 | is not included within the sale price.
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23 | (c) The land bank shall determine and set forth in policies | ||||||
24 | and procedures of the board of directors, the general terms and | ||||||
25 | conditions for consideration to be received by the land bank |
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1 | for the transfer of real property and interests in real | ||||||
2 | property, which consideration may take the form of monetary | ||||||
3 | payments and secured financial obligations, covenants and | ||||||
4 | conditions related to the present and future use of the | ||||||
5 | property, contractual commitments of the transferee, and any | ||||||
6 | other forms of consideration as are consistent with State and | ||||||
7 | local law.
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8 | (d) The land bank may convey, exchange, sell, transfer, | ||||||
9 | lease as lessor, grant, release, demise, or pledge any and all | ||||||
10 | interests in, upon, or to real property of the land bank.
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11 | (e) Upon creating a land bank, any foreclosing governmental | ||||||
12 | unit shall determine, in consultation with the impacted | ||||||
13 | community, how the real property conveyed by the land bank will | ||||||
14 | be used, selecting one or more of the following uses:
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15 | (1) neighborhood health clinics and centers, | ||||||
16 | hospitals, or urgent care clinics;
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17 | (2) services and enrichment facilities, such as senior | ||||||
18 | and community centers;
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19 | (3) community open space, green-space, or wildlife | ||||||
20 | conservation areas; or
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21 | (4) urban agriculture, such as community gardens and | ||||||
22 | composting sites.
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23 | (f) 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.
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7 | (g) 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 | (h) Failure to comply with the requirements of subsection | ||||||
13 | (g) 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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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 |
| |||||||
| |||||||
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) A land bank shall hold a public hearing prior to |
| |||||||
| |||||||
1 | financing or issuance of bonds. The land bank shall schedule | ||||||
2 | and hold a public hearing and solicit public comment. After the | ||||||
3 | conclusion of the public hearing and comments, the land bank | ||||||
4 | shall consider the results of the public hearing and comments | ||||||
5 | with respect to the proposed actions. This consideration by the | ||||||
6 | land bank shall include the accommodation of the public | ||||||
7 | interest with respect to such actions. If an accommodation is | ||||||
8 | deemed in the best interest of the community proposed actions | ||||||
9 | shall include that accommodation.
| ||||||
10 | (c) In addition to any other report required by this Act, | ||||||
11 | the land bank, through its chairperson, shall annually deliver, | ||||||
12 | in oral and written form, a report to the units of local | ||||||
13 | government in which the land bank is located. This report shall | ||||||
14 | be presented by March 15 of each year to the governing body or | ||||||
15 | board of the units of local government. The report shall | ||||||
16 | describe in detail the projects undertaken by the land bank | ||||||
17 | during the past year, the moneys expended by the land bank | ||||||
18 | during the past year, and the administrative activities of the | ||||||
19 | land bank during the past year. At the conclusion of the | ||||||
20 | report, the chairperson of the land bank shall be prepared to | ||||||
21 | answer the questions of the units of local government with | ||||||
22 | respect to the projects undertaken by the authority during the | ||||||
23 | past year, the moneys expended by the unit of local government | ||||||
24 | during the past year, and the administrative activities of the | ||||||
25 | units of local government during the past year.
|
| |||||||
| |||||||
1 | Section 60. Dissolution of land bank. A land bank may be | ||||||
2 | dissolved as a not-for-profit corporation 60 calendar days | ||||||
3 | after an affirmative resolution approved by two-thirds of the | ||||||
4 | membership of the board of directors. Sixty calendar days | ||||||
5 | advance written notice of consideration of a resolution of | ||||||
6 | dissolution shall be given to the foreclosing governmental unit | ||||||
7 | or units that created the land bank, shall be published in a | ||||||
8 | local newspaper of general circulation, and shall be sent | ||||||
9 | certified mail to the trustee of any outstanding bonds of the | ||||||
10 | land bank. Upon dissolution of the land bank, all real | ||||||
11 | property, personal property, and other assets of the land bank | ||||||
12 | shall become the assets of the foreclosing governmental unit or | ||||||
13 | units that created the land bank. In the event that 2 or more | ||||||
14 | foreclosing governmental units create a land bank in accordance | ||||||
15 | with Section 15, the withdrawal of one or more foreclosing | ||||||
16 | governmental units shall not result in the dissolution of the | ||||||
17 | land bank unless the intergovernmental agreement so provides | ||||||
18 | and there is no foreclosing governmental unit that desires to | ||||||
19 | continue the existence of the land bank.
| ||||||
20 | Section 65. Conflicts of interest. No member of the board | ||||||
21 | or employee of a land bank shall acquire any interest, direct | ||||||
22 | or indirect, in real property of the land bank, in any real | ||||||
23 | property to be acquired by the land bank, or in any real | ||||||
24 | property to be acquired from the land bank. No member of the | ||||||
25 | board or employee of a land bank shall have any interest, |
| |||||||
| |||||||
1 | direct or indirect, in any contract or proposed contract for | ||||||
2 | materials or services to be furnished or used by a land bank. | ||||||
3 | The board may adopt supplemental regulations addressing | ||||||
4 | potential conflicts of interest and ethical guidelines for | ||||||
5 | members of the board and land bank employees.
| ||||||
6 | Section 70. Construction. The provisions of this Act shall | ||||||
7 | be construed liberally to effectuate the legislative intent and | ||||||
8 | the purposes as complete and independent authorization for the | ||||||
9 | performance of each and every act authorized by this Act, and | ||||||
10 | all powers granted shall be broadly interpreted to effectuate | ||||||
11 | the intent and purposes and not as a limitation of powers. | ||||||
12 | Except as otherwise expressly set forth in this Act, in the | ||||||
13 | exercise of its powers and duties under this Act and its powers | ||||||
14 | relating to property held by the land bank, the land bank shall | ||||||
15 | have complete control as fully and completely as if it | ||||||
16 | represented a private property owner and shall not be subject | ||||||
17 | to restrictions imposed by the charter, ordinances, or | ||||||
18 | resolutions of a unit of local government.
| ||||||
19 | Section 75. Delinquent property tax enforcement. Units of | ||||||
20 | local government may enter into contracts to sell some or all | ||||||
21 | of the delinquent tax liens held by the unit of local | ||||||
22 | government to a land bank, subject to the following conditions:
| ||||||
23 | (a) The consideration to be paid may be more or less than | ||||||
24 | the face amount of the tax liens sold.
|
| |||||||
| |||||||
1 | (b) Property owners shall be given advance notice of such | ||||||
2 | sale in the same form and manner as is provided by Section | ||||||
3 | 21-135 of the Property Tax Code. Failure to provide such notice | ||||||
4 | or the failure of the addressee to receive the same shall not | ||||||
5 | in any way affect the validity of any sale of a tax lien or tax | ||||||
6 | liens or the validity of the taxes or interest prescribed by | ||||||
7 | law.
| ||||||
8 | (c) The unit of local government shall set the terms and | ||||||
9 | conditions of the contract of sale.
| ||||||
10 | (d) Thirty days before the commencement of any foreclosure | ||||||
11 | action, the land bank must provide to the unit of local | ||||||
12 | government a list of liens to be foreclosed. The unit of local | ||||||
13 | government may, at its sole option and discretion, repurchase a | ||||||
14 | lien or liens on the foreclosure list from the land bank. The | ||||||
15 | repurchase price shall be the amount of the lien or liens plus | ||||||
16 | any accrued interest and collection fees incurred by the land | ||||||
17 | bank. The land bank shall provide the foreclosure list to the | ||||||
18 | unit of local government, along with the applicable repurchase | ||||||
19 | price of each lien, by certified mail, and the unit of local | ||||||
20 | government shall have 30 days from receipt to notify the land | ||||||
21 | bank of its option to purchase one or more of the liens. If the | ||||||
22 | unit of local government opts to purchase the lien, it shall | ||||||
23 | provide payment within 30 days of receipt of the repurchase | ||||||
24 | price of said lien or liens. If the unit of local government | ||||||
25 | shall fail to opt to repurchase the lien or liens the land bank | ||||||
26 | shall have the right to commence a foreclosure action |
| |||||||
| |||||||
1 | immediately.
| ||||||
2 | (e) The sale of a tax lien under this Act shall not shorten | ||||||
3 | the otherwise applicable redemption period or change the | ||||||
4 | otherwise applicable interest rate.
| ||||||
5 | (f) After sale, the purchaser shall comply with the | ||||||
6 | provisions for notice of sale, redemption rights, notice of | ||||||
7 | expiration of period of redemption, and issuance of deed in | ||||||
8 | accordance with Article 22 of the Property Tax Code.
| ||||||
9 | (g) The provisions of Section 21-72 of the Property Tax | ||||||
10 | Code shall apply so far as is practicable to a contract for the | ||||||
11 | sale of tax liens under this Act.
| ||||||
12 | (h) If the court orders a public sale under Article 21 of | ||||||
13 | Division 3.5 of the Property Tax Code, and the purchaser of the | ||||||
14 | property is the land bank, then the form, substance, and timing | ||||||
15 | of the land bank's payment of the sales price may be according | ||||||
16 | to such agreement as is mutually acceptable to the plaintiff | ||||||
17 | and the land bank. The obligation of the land bank to perform | ||||||
18 | in accordance with such agreement shall be deemed to be in full | ||||||
19 | satisfaction of the tax claim which was the basis for the | ||||||
20 | judgment.
| ||||||
21 | (i) Notwithstanding any other provision of law to the | ||||||
22 | contrary, in the event that no unit of local government elects | ||||||
23 | to tender a bid at a judicially ordered sale under the | ||||||
24 | provisions of Article 21 of Division 3.5 of the Property Tax | ||||||
25 | Code, the land bank may tender a bid at such sale in an amount | ||||||
26 | equal to the total amount of all municipal claims and liens |
| |||||||
| |||||||
1 | which were the basis for the judgment. In the event of such | ||||||
2 | tender by the land bank the property shall be deemed sold to | ||||||
3 | the land bank regardless of any bids by any other third | ||||||
4 | parties. The bid of the land bank shall be paid as to its form, | ||||||
5 | substance, and timing according to such agreement as is | ||||||
6 | mutually acceptable to the plaintiff and the land bank. The | ||||||
7 | obligation of the land bank to perform in accordance with such | ||||||
8 | agreement shall be deemed to be in full satisfaction of the | ||||||
9 | municipal claim which was the basis for the judgment. The land | ||||||
10 | bank, as purchaser at such sale, shall take and forever | ||||||
11 | thereafter have, an absolute title to the property sold, free | ||||||
12 | and discharged of all tax and municipal claims, liens, | ||||||
13 | mortgages, charges, and estates of any kind. The deed to the | ||||||
14 | land bank shall be executed, acknowledged, and delivered within | ||||||
15 | 30 days of the sale.
| ||||||
16 | Section 80. Contracts. | ||||||
17 | (a) The land bank may, in its discretion, assign contracts | ||||||
18 | for supervision and coordination to the successful bidder for | ||||||
19 | any subdivision of work for which the land bank receives bids. | ||||||
20 | Any construction, demolition, renovation, and reconstruction | ||||||
21 | contract awarded by the land bank shall contain any other terms | ||||||
22 | and conditions as the land bank may deem desirable.
| ||||||
23 | (b) The land bank should award contracts, whenever possible | ||||||
24 | under subsection (c) of this Section, to locally-owned and | ||||||
25 | staffed, or minority-owned construction, demolition, |
| |||||||
| |||||||
1 | renovation, and reconstruction companies, in order maximize | ||||||
2 | the employment of community residents.
| ||||||
3 | (c) The land bank shall not award any construction, | ||||||
4 | demolition, renovation, and reconstruction contract greater | ||||||
5 | than $10,000 except to the lowest bidder who, in the opinion of | ||||||
6 | the land bank, is qualified to perform the work required and | ||||||
7 | who is responsible and reliable. The land bank may, however, | ||||||
8 | reject any or all bids or waive any informality in a bid if it | ||||||
9 | believes that the public interest will be promoted by that | ||||||
10 | rejection of the bid. The land bank may reject any bid, if, in | ||||||
11 | its judgment, the business and technical organization, plant, | ||||||
12 | resources, financial standing, or experience of the bidder | ||||||
13 | justifies such rejection in view of the work to be performed.
| ||||||
14 | Section 85. Existing land banks. This Act shall not apply | ||||||
15 | to any land bank in existence before the effective date of this | ||||||
16 | Act.
|