Bill Text: IL HB3693 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Creates the Municipal Land Bank Authorities Division in the Illinois Municipal Code. Allows a municipality to create a land bank authority to use available resources to facilitate the return of vacant, abandoned, and tax-delinquent properties to productive use in order to combat community deterioration, create economic growth, and stabilize the housing and job market. Provides that the land bank authority is an agency of and funded by the municipality and that the land bank authority's board of directors are accountable to the city council of the municipality. Contains provisions relating to the appointment of members to the land bank authority's board of directors and operation of the land bank authority. Allows the hiring of an executive director and other staff. Provides that the municipality shall defend and indemnify the land bank authority's board of directors under specified circumstances.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3693 Detail]

Download: Illinois-2021-HB3693-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB3693 Introduced , by Rep. Jehan Gordon-Booth SYNOPSIS AS INTRODUCED:
See Index
Creates the Municipal Land Bank Authorities Division in the Illinois Municipal Code. Allows a municipality to create a land bank authority to use available resources to facilitate the return of vacant, abandoned, and tax-delinquent properties to productive use in order to combat community deterioration, create economic growth, and stabilize the housing and job market. Provides that the land bank authority is an agency of and funded by the municipality and that the lank bank authority's board of directors are accountable to the city council of the municipality. Contains provisions relating to the appointment of members to the land bank authority's board of directors and operation of the land bank authority. Allows the hiring of an executive director and other staff. Provides that the municipality shall defend and indemnify the land bank authority's board of directors under specified circumstances.
LRB102 13259 AWJ 18603 b
FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
adding Division 15.5 in Article 11 as follows:
(65 ILCS 5/Div. 15.5 heading new)
Division 15.5. Municipal Land Bank Authority
(65 ILCS 5/11-15.5-5 new)
Sec. 11-15.5-5. Purpose. The purpose of this Division is
to allow a municipality to create a land bank authority that
will use available resources to facilitate the return of
vacant, abandoned, and tax-delinquent properties to productive
use thereby combating community deterioration, creating
economic growth, and stabilizing the housing and job market.
The land bank authority will acquire, hold, and transfer
interest in real property throughout the municipality as
approved by the board of directors of the authority for the
following purposes: to promote redevelopment and reuse of
vacant, abandoned, or tax-delinquent properties; support
targeted efforts to stabilize neighborhoods; and stimulate
residential, commercial, and industrial development all in
ways that are consistent with goals and priorities established

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by this Division, local government partners, and other
community stakeholders.
(65 ILCS 5/11-15.5-10 new)
Sec. 11-15.5-10. Definitions. As used in this Division:
"Authority" means the land bank authority created by a
municipality.
"Board of directors" means the board of directors of a
land bank authority.
"City council" means the city council or board of trustees
of a municipality that may establish or has established a land
bank.
"Director" means the executive director of a land bank
authority.
"Fiscal year" means the fiscal year of the land bank,
which is the same as the municipality's fiscal year.
"Good cause" includes inefficiency, neglect of duty,
malfeasance, or any cause which renders a director or member
of the board of directors unfit for the position or unable to
perform the duties of the position or the scope of the work.
"Land bank" means a land bank authority.
"Mayor" means the mayor or village president of a
municipality that has created a land bank.
"Member" means a member of the board of directors.
"Municipality" or "municipal" means the municipality that
may establish or has established a land bank.

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"Person" means any individual, corporation, limited
liability corporation, organization, government, governmental
subdivision or agency, business trust, estate, trust,
partnership, association, and any other legal entity.
"Real property" means all land and the buildings on the
land, all things permanently attached to land or to the
buildings on the land, and any interest existing in, issuing
out of, or dependent upon land or the buildings on the land.
(65 ILCS 5/11-15.5-15 new)
Sec. 11-15.5-15. Establishment. A municipality may, by
ordinance, establish a land bank authority as an agency of the
municipality. All personnel, facilities, equipment, and
supplies within the land bank shall be governed by a board of
directors as provided in this Division. The board of directors
shall be accountable to the city council. The land bank shall
be funded by the municipality.
(65 ILCS 5/11-15.5-20 new)
Sec. 11-15.5-20. Principal office. The principal office of
the land bank shall be at a location within the municipality,
as determined by the board of directors.
(65 ILCS 5/11-15.5-25 new)
Sec. 11-15.5-25. Title to land bank assets. Except as
otherwise provided in this Division, the municipality shall

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hold title to all real property controlled by the land bank.
(65 ILCS 5/11-15.5-30 new)
Sec. 11-15.5-30. Tax-exempt status. The activities of the
land bank are governmental functions carried out by an
instrumentality or political subdivision of the State as
described in Section 115 of Title 26 of the United States
Internal Revenue Code, or any corresponding provisions of any
future tax code. The activities of the land bank are
governmental functions carried out by a political subdivision
of the State, exempt to the extent provided under Illinois law
from taxation by this State, including, but not limited to, ad
valorem property tax exemption under the Property Tax Code.
(65 ILCS 5/11-15.5-35 new)
Sec. 11-15.5-35. Waiver of special assessments. Upon the
request of the land bank and for the purposes of fostering the
goals and objectives of the land bank, the municipality, as
permitted by law, may extinguish special assessments levied by
it prior to the date of acquisition by the land bank against
real property controlled by the land bank, and may seek to
exempt real property controlled by the land bank from the
imposition of special assessments.
(65 ILCS 5/11-15.5-40 new)
Sec. 11-15.5-40. Compliance with law. The land bank shall

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comply with all applicable federal and State laws, rules,
regulations, and orders.
(65 ILCS 5/11-15.5-45 new)
Sec. 11-15.5-45. No third-party beneficiaries. Except as
otherwise provided, this Division does not create for any
person, other than the municipality, and is not intended to
create by implication or otherwise, a direct or indirect
benefit, obligation, duty, promise, right to be indemnified
(such as contractually, legally, equitably, or by
implication), right to be subrogated to the municipality's
rights under this Division, or any other right or benefit.
(65 ILCS 5/11-15.5-50 new)
Sec. 11-15.5-50. Board of directors. The land bank shall
be governed by a board of directors that shall be appointed by
the mayor, subject to approval by the city council, no later
than 45 days after the effective date of the ordinance
creating the authority. Members of the board of directors
shall be residents of the municipality.
(65 ILCS 5/11-15.5-55 new)
Sec. 11-15.5-55. Appointment of members. Candidates for
the board of directors shall be selected from the following
categories:
(1) the mayor to serve as an ex officio member with

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voting rights. The ex officio member shall serve as a
liaison between the city council and the board of
directors;
(2) 2 city council members, not including the mayor;
(3) one representative from the municipality as
recommended by the mayor;
(4) one representative from the municipality's
economic development agency, if any;
(5) one representative from a community development
finance institution;
(6) one representative from the banking community;
(7) one representative from a local or State
association of realtors;
(8) one representative from the non-profit housing
development community;
(9) one representative from the commercial or
industrial development community;
(10) one representative from a community organization
in the municipality, if any;
(11) one representative from the legal community; and
(12) one representative with commercial retail
development experience.
If an initial appointment is not made under paragraph (4)
or (10) because there is not a municipal economic development
agency or community organization in the municipality, an
appointment for those positions, if any, shall be made as

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provided in subsection (b) of Section 11-15.5-75.
(65 ILCS 5/11-15.5-60 new)
Sec. 11-15.5-60. Term of office.
(a) Except as otherwise provided in this Section or
Section 11-15.5-75, the members of the board of directors
shall be appointed for a term of 3 years.
(b) The ex officio member shall serve until the expiration
of his or her term as mayor.
(c) The initial members, except as provided in subsection
(b), shall serve terms as follows as determined by lot at the
board of directors first meeting next following all member
appointments:
(1) Three of the members shall serve a term that
expires on the January 1 next following the establishment
of the land bank, except that these members shall serve
until the 2nd January 1 next following the establishment
of the land bank if the land bank was established after
July 1.
(2) Three of the members shall serve a term that
expires on the January 1 next following the expiration of
the members' terms under paragraph (1).
(3) Two of the members shall serve a term that expires
on the January, 1 next following the expiration of the
members' terms under paragraph (2).
(4) Members appointed under paragraph (4) or (10) of

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Section 11-15.5-55, if any, shall serve a term that
expires on the January 1 next following the expiration of
the members' terms under paragraph (3).
(d) After the initial appointed terms under subsection
(c), each member, other than the ex officio member, shall
serve a term of 3 years.
(e) A member shall serve until a successor is appointed
and has qualified.
(f) A member who is appointed to fill a vacancy, other than
a vacancy caused by the expiration of the predecessor's term,
shall serve until the expiration of his or her predecessor's
term.
(g) Other than the ex officio member, a member may not
serve more than 2 consecutive full terms.
(65 ILCS 5/11-15.5-65 new)
Sec. 11-15.5-65. Officers.
(a) The board of directors shall select an initial
chairperson from among the initial members. The chairperson
shall serve a 2-year term as chairperson and, thereafter, the
board of directors shall annually elect a chairperson from
among its members. A member may be elected to serve successive
terms as chairperson.
The chairperson shall preside at meetings of the board of
directors and is entitled to vote on all matters before the
board of directors.

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(b) The board of directors may appoint from its members a
member to serve as the land bank secretary and appoint
additional officers from its members as it may deem
appropriate.
(65 ILCS 5/11-15.5-70 new)
Sec. 11-15.5-70. Removal. A member may be removed for good
cause by the mayor prior to the expiration of the member's term
of appointment. The mayor shall provide written notice to that
member, the director, and the city of council of the removal of
that member from the board of directors. The notice shall
state the specific grounds which constitute cause for removal.
The member, in receipt of a notice, may request to appear
before the city council and present reasons in support of his
or her retention. Thereafter, the city council shall vote upon
whether there are sufficient grounds to remove that member
from office. The mayor shall notify the member of the final
action of the city council.
(65 ILCS 5/11-15.5-75 new)
Sec. 11-15.5-75. Vacancies.
(a) Any vacancy on the board of directors caused by death,
resignation, disqualification, or removal shall be filled by
the mayor as soon as practicable, but not to exceed 60 days
following the occurrence of the vacancy. The vacancy shall be
filled for the remainder of the unexpired term in the same

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manner as the original appointment. Expired terms shall be
filled by the mayor within 60 days of the term's expiration in
the same manner as the original appointment.
(b) If an initial appointment is not made under paragraph
(4) or (10) of Section 11-15.5-55, that position is considered
vacant and an appointment may be made by the mayor to that
position when a municipal economic development agency or
community organization in the municipality is established. The
person appointed to fill the vacancy shall serve until the
expiration of the initial term under paragraph (4) or (10) of
subsection (c) of Section 11-15.5-60 or the expiration of a
subsequent 3-year term if the initial term would have already
expired.
(65 ILCS 5/11-15.5-80 new)
Sec. 11-15.5-80. Meetings. The board of directors shall
conduct its first meeting no later than 60 days after the
appointment of the board of directors. The place, date, and
time of the land bank meetings shall be determined at the
discretion of the board of directors. All meetings of the
board of directors shall comply with the Open Meetings Act.
(65 ILCS 5/11-15.5-85 new)
Sec. 11-15.5-85. Initial bylaws and policies and
procedures. The board of directors shall adopt bylaws and
policies and procedures consistent with the provisions of this

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Division no later than 120 days after the first meeting of the
board of directors.
(65 ILCS 5/11-15.5-90 new)
Sec. 11-15.5-90. Quorum; voting. A quorum is necessary for
the transaction of any business by the board of directors. A
majority of the members of the board of directors shall
constitute a quorum. The board of directors shall act by a
majority vote of the members at a meeting at which a quorum is
present, except as otherwise provided in this Division.
Presence for both quorum and voting at the land bank shall be
articulated by the board of directors in its bylaws or
procedures in a manner consistent with the Open Meetings Act.
(65 ILCS 5/11-15.5-95 new)
Sec. 11-15.5-95. Records of meetings. Minutes of all
meetings of the board of directors and its committees shall be
made and maintained as required by the Open Meetings Act.
(65 ILCS 5/11-15.5-100 new)
Sec. 11-15.5-100. Board of directors responsibilities. The
board of directors shall:
(1) ensure that all personnel matters are conducted
free from any political interference and in accordance
with all applicable laws;
(2) ensure that all operations, including contractual

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matters, are conducted free from any political
interference; and
(3) ensure efficiency in service delivery and sound
fiscal management of all aspects of the land bank
including the collection of all revenues from all sources.
(65 ILCS 5/11-15.5-105 new)
Sec. 11-15.5-105. Board of directors actions. The board of
directors shall do all of the following:
(1) adopt, amend, or repeal rules and policies and
procedures governing the board of directors and its
actions and meetings and adopt, amend, or repeal policies
and procedures to implement day-to-day operation of the
land bank, including policies governing any staff of the
land bank;
(2) elect additional officers, including, but not
limited to, initial officers who shall be elected at the
first meeting of the board of directors in accordance with
the bylaws;
(3) provide for a system of accounting;
(4) adopt or amend the land bank's budget to submit
annually to the municipality for approval and adoption in
a time frame mandated by the municipality's treasurer or
other financial officer;
(5) adopt, amend, or repeal policies and procedures
for contracting and procurement;

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(6) commission, collect, and receive data from public,
private, professional, and volunteer sources to compile an
inventory and analysis of desirable properties for
acquisition;
(7) establish banking arrangements for the land bank;
and
(8) organize and reorganize the executive,
administrative, clerical, and other departments of the
land bank and fix the duties, powers, and compensation of
all employees, agents, and consultants of the land bank
hired pursuant to Section 11-15.5-125.
(65 ILCS 5/11-15.5-110 new)
Sec. 11-15.5-110. Fiduciary duty. The members of the board
of directors are under a fiduciary duty to conduct the
activities and affairs of the land bank in the best interests
of the residents of the municipality, including the
safekeeping and use of all land bank moneys and assets. The
members of the board of directors shall discharge their duties
in good faith with the care an ordinarily prudent person in a
like position would exercise under similar circumstances.
(65 ILCS 5/11-15.5-115 new)
Sec. 11-15.5-115. Compensation. The members of the board
of directors shall receive no compensation for the performance
of their duties. A member may engage in private or public

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employment or in a profession or business, except to the
extent prohibited by law or municipal ordinance. The land bank
may reimburse members of the board of directors for actual and
necessary expenses incurred in the discharge of their official
duties as provided by the board of directors.
(65 ILCS 5/11-15.5-120 new)
Sec. 11-15.5-120. Executive director. The board of
directors shall retain the professional services of an
individual to perform the duties of an executive director on a
contractual basis with the advice and consent of the mayor.
The director is not an employee of the land bank or
municipality. The director shall administer the land bank in
accordance with the operating budget approved by the
municipality, general policy guidelines established by the
board of directors, other applicable governmental procedures
and policies, and this Division. The director is responsible
for the day-to-day operations of the land bank; the control,
management, and oversight of the land bank's functions; and
supervision of all land bank contractual agreements. All terms
and conditions of the director's service shall be specified in
a written contract between the director and the board of
directors. The director may be removed by the mayor or the
board of directors, for good cause, prior to the expiration of
the director's contract. The board of directors may delegate
to the director any powers or duties it considers proper under

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such terms, conditions, and to the extent that the board of
directors may specify.
(65 ILCS 5/11-15.5-125 new)
Sec. 11-15.5-125. Staffing services.
(a) The board of directors may approve contracts for
staffing as requested by the director that are deemed
necessary to carry out the duties and responsibilities of the
land bank and in accordance with the policies and procedures
established by the board of directors. Such staff shall be
retained pursuant to contracts entered into in accordance with
the procurement rules established by the board of directors.
(b) If the board of directors elects to have staff, staff
employed by the board of directors for the land bank not
otherwise retained through the board of directors' procurement
rules shall be recruited or employed through the municipality
employment plan, if any, and are municipal employees.
(65 ILCS 5/11-15.5-130 new)
Sec. 11-15.5-130. Ethics and oversight. The land bank and
its director, board of directors, employees, and contractors
are subject to municipal ethics rules or ordinances and
municipal ethics officers, if any.
(65 ILCS 5/11-15.5-135 new)
Sec. 11-15.5-135. Indemnification.

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(a) Except as otherwise provided in this Section, the
municipality shall defend and indemnify the land bank and its
board members, officers, and employees from all claims or
judgments arising out of their activities as board members,
officers, or employees for all negligence claims and claims or
judgments arising out of land bank activities performed on
behalf of the municipality.
(b) The municipality is not obligated to indemnify the
land bank or its members for:
(1) Punitive damages or liability arising out of
conduct which is based upon willful or wanton conduct.
(2) Conduct which is outside of the scope of the land
bank's authority.
(3) A settlement or judgment in which the municipality
did not participate.
(4) The defense of any criminal or disciplinary
proceeding.
(c) To be eligible for defense and indemnification, the
land bank or its board members, officers, or employees shall:
(1) notify, within 5 days of receipt, the city council
and the State's Attorney's Office in the county, or one of
the counties, in which the municipality is located of any
claim made against the board member, officer, or employee
or land bank and deliver all written demands, complaints,
and other legal papers received by the practitioner with
respect to such claim to the city council;

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(2) cooperate with the State's Attorney's Office in
the investigation and defense of any claim against the
municipality or any board member, officer, or employee,
including, but not limited to, preparing for and attending
depositions, hearings, and trials and otherwise assisting
in securing and giving evidence; and
(3) promptly notify the city council and the State's
Attorney's Office of any change in the member's address or
telephone number.
(d) All actions shall be defended by the State's Attorney
in the county in which the municipality is located. If the
municipality is located in more than one county, the State's
Attorney notified under paragraph (1) of subsection (c) shall
defend the action unless the State's Attorney from another
county in which the municipally is located agrees that he or
she will defend the action. Decisions to settle indemnified
claims shall be made by the municipality or the State's
Attorney's Office, as delegated by the municipality, and shall
not require the consent of the indemnified member, officer, or
employee. If a board member, officer, or employee declines
representation by the State's Attorney's Office, the
municipality shall have no obligation to defend or indemnify
the member.
(65 ILCS 5/11-15.5-140 new)
Sec. 11-15.5-140. General powers. The land bank has the

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authority to do all things necessary or convenient to
implement the purposes, objectives, and provisions of this
Division or the purposes, objectives, and powers granted to
the land bank by any federal, state, or local government unit
consistent with the municipality's annual budget, including,
but not limited to, the following:
(1) to adopt, amend, and repeal bylaws for the
regulation of its affairs and the conduct of its business;
(2) to acquire by purchase, donation, or other
transfers and to hold, lease, manage, and dispose of real
property of every kind and character, or any interest
therein, in furtherance of the public purposes of the land
bank;
(3) to discharge and extinguish real property taxes
owed to the municipality, State, or unit of local
government pursuant to an agreement with the municipality,
State, or unit of local government that encumber real
property owned by the municipality through the land bank,
as permitted by the Property Tax Code or other applicable
law;
(4) to pay any tax or special assessment due on real
property acquired or owned by the land bank;
(5) to acquire, accept, or retain equitable interests,
security interests, or other interests in real property or
other fixtures by loan agreement, note, mortgage, deed to
secure debt, trust deed, security agreement, assignment,

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pledge, conveyance, contract, lien, or other consensual
transfer in order to secure the repayment of any moneys
loaned or credit extended by the land bank;
(6) borrow money from private lenders, from cities or
counties, from the State or from federal government funds,
subject to the approval of the city council, to further or
carry out the land bank's public purpose by executing
leases, trust indentures, trust agreements, agreements for
the sale notes, loan agreements, mortgages, deeds to
secure debt, trust deeds, security agreements,
assignments, and other agreements or instruments as may be
necessary or desirable, in the judgment of the land bank,
to evidence and to provide security for the borrowing;
(7) to make application directly or indirectly to any
federal, state, municipal, or local unit of government or
agency or to any other source, whether public or private,
for loans, grants, gifts, guarantees, labor, or other aid
or financial assistance in furtherance of the land bank's
public purpose and to accept and use the same upon terms
and conditions as are prescribed by the federal, state,
municipal, or local unit of government, agency, or other
source;
(8) to enter into agreements with the federal
government or any agency of the federal government to use
the facilities or services of the federal government or
agency in order to further or carry out the public

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purposes of the land bank;
(9) to extend credit or make loans to any person,
subject to limitations established by the city council,
for the costs of land bank projects which credit or loans
may be evidenced or secured by loan agreements, notes,
mortgages, deeds to secure debt, trust deeds, security
agreements, assignments, or other instruments or by
rentals, revenues, fees, or charges, upon terms and
conditions as the land bank shall determine to be
reasonable in connection with such extension of credit or
loans, including provision for the establishment and
maintenance of reserve funds, and, in the exercise of
powers in connection with a land bank project, the land
bank may require the inclusion in a loan agreement, note,
mortgage, deed to secure debt, trust deed, security
agreement, assignment, or other instrument such provisions
or requirements, including but not limited to: guarantee
an obligation, insurance, construction, use, operation,
maintenance, and financing and other terms and conditions
as the land bank may deem necessary or desirable;
(10) as security for repayment of any note, or other
obligations of the land bank, to pledge, mortgage, convey,
assign, hypothecate, or otherwise encumber any property of
the land bank, including, but not limited to, real
property, fixtures, and revenues or other funds, and to
execute any lease, trust indenture, trust agreement,

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agreement for the sale of the land bank's notes or other
obligations, loan agreement, mortgage, deed to secure
debt, trust deed, security agreement, assignment, or other
agreement or instrument as may be necessary or desirable,
in the judgment of the land bank, to secure any notes or
other obligations, which instruments or agreements may
provide for foreclosure or forced sale of any real
property of the land bank upon default in any obligation
of the land bank, either in payment of principal, premium,
or interest or in the performance of a term or condition
contained in the agreement or instrument;
(11) to receive and administer gifts, grants, and
bequests of money and real property consistent with the
purpose of the land bank;
(12) to use any real property or fixtures, or any
interest in real property or fixtures, to rent, license,
or lease the real property to or from others or make
contracts with respect to the use of the real property or
fixtures, or to sell, lease, exchange, transfer, assign,
pledge, or otherwise dispose of or grant options for the
real property in any manner as it deems to be in the best
interests of the land bank and the public purpose;
(13) to procure insurance or guarantees from the State
or federal government of the payments of any debts or
parts incurred by the land bank and to pay premiums in
connection with the insurance or guarantees;

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(14) to procure, if required, insurance against losses
in connection with the real property, assets, or
activities of the land bank;
(15) to 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, an agreement with a party for the joint
exercise of powers. An agreement with a party may include
contracts for the performance of services by a party on
behalf of the land bank or by the land bank on behalf of a
party;
(16) to enter into partnerships, joint ventures, and
other collaborative relationships with municipalities and
other public and private entities for the ownership,
management, development, and disposition of real property;
(17) to 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, agreements with a party regarding the
disposition of land bank properties located within their
boundaries;
(18) to finance (by loan, grant, lease, or otherwise),
refinance, construct, erect, assemble, purchase, acquire,
own, repair, remodel, rehabilitate, modify, maintain,
extend, improve, install, sell, equip, expand, add to,
operate, or manage real property or rights or interests in

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real property and to pay the costs of any such project from
the proceeds of revenue bonds or loans by persons,
corporations, partnerships, whether limited or general, or
other entities, all of which the land bank is authorized
to receive, accept, and use;
(19) to fix, charge, and collect rents, fees,
licenses, and charges for the use of real property of the
land bank and for services provided by the Land Bank;
(20) to grant or acquire a license, easement, lease
(as lessor or lessee), or option with respect to real
property of the land bank;
(21) to enter into contracts with not-for-profit
community land trusts, including, but not limited to,
long-term lease contracts;
(22) to contract for goods and services and employ
personnel, as necessary, to be paid from the funds of the
land bank. The board of directors shall determine the
qualifications, duties, and compensation of those it
contracts with and employs;
(23) to organize and reorganize the executive,
administrative, clerical, and other departments of the
land bank and to fix the duties, powers, and compensation
of all employees, agents, and consultants of the land
bank;
(24) to remediate environmental contamination on any
real property held by the land bank;

HB3693 - 24 - LRB102 13259 AWJ 18603 b
(25) to acquire, hold, and manage property;
(26) to dispose of property; and
(27) to do all other things necessary or convenient to
achieve the objectives and purposes of the land bank and
this Division.
(65 ILCS 5/11-15.5-145 new)
Sec. 11-15.5-145. Municipality's governmental immunity.
Nothing in this Division may be construed as a waiver by the
municipality of any governmental immunity provided under any
applicable law.
(65 ILCS 5/11-15.5-150 new)
Sec. 11-15.5-150. Discrimination.
(a) The land bank shall comply with all applicable laws
prohibiting discrimination.
(b) The land bank shall not provide services in a manner
that discriminates against an individual because of the actual
or perceived status, practice, or expression of that
individual's race, color, sex, age, religion, disability,
national origin, ancestry, sexual orientation, marital status,
parental status, military discharge status, source of income,
gender identity, or housing status or the actual or perceived
association with such an individual.
(c) The land bank shall not refuse to hire, recruit,
promote, demote, discharge, or otherwise discriminate against

HB3693 - 25 - LRB102 13259 AWJ 18603 b
an individual with respect to employment, compensation or a
term, condition, or privilege of employment because of the
actual or perceived status, practice, or expression of that
individual's race, color, sex, age, religion, disability,
national origin, ancestry, sexual orientation, marital status,
parental status, military discharge status, source of income,
gender identity, or housing status or the actual or perceived
association with such an individual.
(65 ILCS 5/11-15.5-155 new)
Sec. 11-15.5-155. Acquisition of property.
(a) The land bank may acquire real property or rights or
interests in real property by gift, bequest, transfer,
exchange, foreclosure, purchase, purchase contracts, lease
purchase agreements, installment sales contracts, land
contracts, tax sale, scavenger sale, or other method of
acquisition on terms and conditions and in a manner the land
bank considers proper.
(b) The land bank may acquire any property conveyed to it
by any person, including, but not limited to, property without
clear title.
(c) All deeds, mortgages, contracts, leases, purchases, or
other agreements regarding real property of the land bank,
including agreements to acquire or dispose of real property,
shall be approved by and executed by the land bank in the name
of the municipality.

HB3693 - 26 - LRB102 13259 AWJ 18603 b
(d) The land bank may purchase property in the name of the
municipality at tax sales conducted under the Property Tax
Code. The land bank may tender a bid at a tax sale that is a
credit bid consisting of the obligation of the land bank to
satisfy the component parts of the bid by payments to the
respective political subdivisions.
(e) The land bank may make offers to purchase real
property that is subject to a listing agreement. The offer or
purchase of a property by the land bank that is subject to a
listing agreement shall not extinguish any legal rights
existing under the listing agreement.
(65 ILCS 5/11-15.5-160 new)
Sec. 11-15.5-160. Execution of legal documents relating to
real property. Deeds, mortgages, contracts, easements, leases,
licenses, franchises, purchases, covenants or other agreements
regarding real property of the land bank, including agreements
to acquire or dispose of real property, shall be executed in
the name of the municipality by the land bank and approved in
accordance with the bylaws of the land bank.
(65 ILCS 5/11-15.5-165 new)
Sec. 11-15.5-165. Holding and managing property. The land
bank may control, manage, maintain, operate, repair, lease as
lessor, license, secure, prevent the waste or deterioration
of, demolish, or take all other actions necessary to preserve

HB3693 - 27 - LRB102 13259 AWJ 18603 b
the value of the real property it controls on behalf of the
municipality. The land bank shall maintain all real property
held by the land bank in accordance with applicable laws and
codes. Real property shall be inventoried and classified by
the land bank according to suitability for use. The inventory
shall be maintained as a public record and shall be filed
electronically and in the principal office of the land bank.
(65 ILCS 5/11-15.5-170 new)
Sec. 11-15.5-170. Property disposition. On fair and
reasonable terms and conditions and in a manner and for an
amount of consideration the land bank considers proper
(including for no monetary consideration, if appropriate), the
land bank may convey, sell, transfer, exchange, or otherwise
dispose of real property or rights or interests in real
property which the land bank controls and the municipality
holds a legal interest to any public or private person. The
disposition of real property under this Section shall be
considered a necessary public purpose and for the benefit of
the public.
(65 ILCS 5/11-15.5-175 new)
Sec. 11-15.5-175. Criteria for conveyance. Real property
shall be conveyed by the land bank in accordance with this
Division and according to criteria determined in the
discretion of the board of directors and contained in the

HB3693 - 28 - LRB102 13259 AWJ 18603 b
policies and procedures adopted by the board of directors. The
board of directors may adopt policies and procedures that set
forth priorities for a transferee's use of real property
conveyed by the land bank, including, but not limited to,
affordable housing.
(65 ILCS 5/11-15.5-180 new)
Sec. 11-15.5-180. Transactions.
(a) Transactions shall be structured in a manner that
permits the land bank to enforce contractual agreements, real
covenants, and the provisions of any subordinate financing
held by the land bank pertaining to development and use of the
real property.
(b) Notwithstanding any other provision of this Division,
any transaction involving property located within a
municipality with a population over 100,000 shall only be made
pursuant to an agreement between that municipality and the
land bank.
(65 ILCS 5/11-15.5-185 new)
Sec. 11-15.5-185. Disposition of proceeds. Any proceeds
from the sale or transfer of real property by the land bank
shall be retained, expended, or transferred by the land bank
as determined by the board of directors in the best interests
of the land bank and in accordance with applicable laws and
agreements.

HB3693 - 29 - LRB102 13259 AWJ 18603 b
(65 ILCS 5/11-15.5-190 new)
Sec. 11-15.5-190. Intergovernmental agreements.
(a) The board of directors may negotiate and propose
intergovernmental agreements necessary, incidental, or
convenient to the performance of its duties and the exercise
of its powers with a unit of local government located in whole
or in part within the municipality, subject to the approval of
the city council. An intergovernmental agreement may include,
but is not limited to, contracts for the joint exercise of
powers, contracts for the ownership, management, development,
and disposition of real property, or contracts for the
performance of services by a unit of local government on
behalf of the land bank or by the land bank on behalf of a unit
of local government.
(b) A party to an intergovernmental agreement shall agree
that no party to an intergovernmental agreement shall be
responsible, in whole or in part, for the acts of the
employees, agents, and servants of any other party, whether
acting separately or in conjunction with the implementation of
an intergovernmental agreement. The parties shall only be
bound and obligated under an intergovernmental agreement as
expressly agreed to by each party.
(c) All intergovernmental agreements shall be interpreted,
enforced, and governed under the laws of this State without
regard to the doctrines of conflict of laws. The language of an

HB3693 - 30 - LRB102 13259 AWJ 18603 b
intergovernmental agreements shall in all cases be construed
as a whole according to its plain and fair meaning and not
construed strictly for or against any party.
(65 ILCS 5/11-15.5-195 new)
Sec. 11-15.5-195. Land bank records. The land bank shall
keep and maintain at the principal office of the land bank all
documents and records of the land bank. The records of the land
bank shall be available to the public and shall include, but
not be limited to, a copy of this Division, the land bank's
bylaws, and any agreements and any amendments to an agreement.
The records and documents shall be maintained and shall be
delivered to any successor entity.
(65 ILCS 5/11-15.5-200 new)
Sec. 11-15.5-200. Financial statements and reports. The
land bank shall annually prepare or have prepared, at the land
bank's expense, audited financial statements, including
balance sheet, statement of revenue and expense, statement of
cash flows, and changes in fund balance. The financial
statements shall be prepared in accordance with generally
accepted accounting principles and accompanied by a written
opinion of an independent certified public accounting firm.
(65 ILCS 5/11-15.5-205 new)
Sec. 11-15.5-205. Annual budget.

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(a) The land bank shall prepare an annual budget in a
manner and under a time frame mandated by municipality's
treasurer or other financial officer.
(b) For the first complete fiscal year and each fiscal
year thereafter, the board of directors shall recommend,
approve, and submit an annual budget to be included in the
municipality's annual budget for approval by the city council.
(c) The obligations and expenditures of the board of
directors shall conform to the municipality's annual budget.
The city council retains the authority to impose additional
limitations. A commitment, contract, or other obligation
entered into by the board of directors in violation of this
Section shall be voidable by the city council.
(65 ILCS 5/11-15.5-210 new)
Sec. 11-15.5-210. Deposits and investments.
(a) The land bank shall deposit funds of the land bank in a
special fund to be held by the treasurer of the municipality.
The fund shall be designated as the "Land Bank Fund" and the
moneys in the fund shall be expended exclusively for the
operation of the land bank.
(b) Expenditures of funds from the Land Bank Fund shall be
in accordance with guidelines established by the board of
directors.
(65 ILCS 5/11-15.5-215 new)

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Sec. 11-15.5-215. Performance objectives. Each fiscal
year, the director or other individual designated by the board
of directors shall prepare, for review and approval by the
board of directors, objectives for the land bank's
performance.
(65 ILCS 5/11-15.5-220 new)
Sec. 11-15.5-220. Annual report.
(a) The board of directors shall submit a report to the
mayor and the city council, no later than 6 months after the
end of each fiscal year, which shall set forth a complete and
detailed operating and financial statement of the land bank
during the fiscal year.
(b) Included in the report shall be any recommendations
for additional legislation or other action which may be
necessary to carry out the mission, purpose, and intent of the
land bank.
(65 ILCS 5/11-15.5-225 new)
Sec. 11-15.5-225. Management of funds. The director or
other individual designated by the board of directors is
authorized to make deposits and withdraw funds from the Land
Bank Fund for the management of sales proceeds, revenue, and
other land bank funds as authorized by the board of directors.
Standard accounting procedures shall be used in the management
of accounts and approved by the municipality's treasurer.

HB3693 - 33 - LRB102 13259 AWJ 18603 b
(65 ILCS 5/11-15.5-230 new)
Sec. 11-15.5-230. Authorized expenditures. The land bank
shall, in its sole discretion and within its budget, expend
funds as necessary to carry out the powers, duties, functions,
and responsibilities of the land bank under this Division.
(65 ILCS 5/11-15.5-235 new)
Sec. 11-15.5-235. Dissolution. If the city council
determines that the purposes of the land bank have been
completed and that there is no longer a need for the land bank,
the city council may dissolve the land bank. The dissolution
date shall allow sufficient time for the land bank to carry out
the distribution of assets under Section 11-15.5-240.
(65 ILCS 5/11-15.5-240 new)
Sec. 11-15.5-240. Distribution of assets. At a reasonable
time prior to the dissolution of the land bank under Section
11-15.5-235, the land bank shall wind up its affairs as
follows:
(1) all of the land bank's debts, liabilities, and
obligations to its creditors and all expenses incurred in
connection with the termination of the land bank and
distribution of its assets shall be paid first; and
(2) the remaining real property and personal property
owned by the land bank, if any, shall be distributed to any

HB3693 - 34 - LRB102 13259 AWJ 18603 b
successor entity, subject to approval by the municipality.
If a successor entity does not exist, the remaining real
property, personal property, and other assets of the land
bank shall become assets of the municipality unless
provided otherwise in any applicable agreement.
(65 ILCS 5/11-15.5-998 new)
Sec. 11-15.5-998. Interpretation of Division. All powers
granted to the land bank under this Division shall be
interpreted broadly to effectuate the intent and purposes of
this Division and not to serve as a limitation of powers.
(65 ILCS 5/11-15.5-999 new)
Sec. 11-15.5-999. Severability. The provisions of this Act
are severable under Section 1.31 of the Statute on Statutes.
HB3693 - 35 - LRB102 13259 AWJ 18603 b
INDEX
Statutes amended in order of appearance
65 ILCS 5/Div. 15.5
heading new
65 ILCS 5/11-15.5-5 new
65 ILCS 5/11-15.5-10 new
65 ILCS 5/11-15.5-15 new
65 ILCS 5/11-15.5-20 new
65 ILCS 5/11-15.5-25 new
65 ILCS 5/11-15.5-30 new
65 ILCS 5/11-15.5-35 new
65 ILCS 5/11-15.5-40 new
65 ILCS 5/11-15.5-45 new
65 ILCS 5/11-15.5-50 new
65 ILCS 5/11-15.5-55 new
65 ILCS 5/11-15.5-60 new
65 ILCS 5/11-15.5-65 new
65 ILCS 5/11-15.5-70 new
65 ILCS 5/11-15.5-75 new
65 ILCS 5/11-15.5-80 new
65 ILCS 5/11-15.5-85 new
65 ILCS 5/11-15.5-90 new
65 ILCS 5/11-15.5-95 new
65 ILCS 5/11-15.5-100 new
65 ILCS 5/11-15.5-105 new
HB3693 - 36 - LRB102 13259 AWJ 18603 b
65 ILCS 5/11-15.5-110 new
65 ILCS 5/11-15.5-115 new
65 ILCS 5/11-15.5-120 new
65 ILCS 5/11-15.5-125 new
65 ILCS 5/11-15.5-130 new
65 ILCS 5/11-15.5-135 new
65 ILCS 5/11-15.5-140 new
65 ILCS 5/11-15.5-145 new
65 ILCS 5/11-15.5-150 new
65 ILCS 5/11-15.5-155 new
65 ILCS 5/11-15.5-160 new
65 ILCS 5/11-15.5-165 new
65 ILCS 5/11-15.5-170 new
65 ILCS 5/11-15.5-175 new
65 ILCS 5/11-15.5-180 new
65 ILCS 5/11-15.5-185 new
65 ILCS 5/11-15.5-190 new
65 ILCS 5/11-15.5-195 new
65 ILCS 5/11-15.5-200 new
65 ILCS 5/11-15.5-205 new
65 ILCS 5/11-15.5-210 new
65 ILCS 5/11-15.5-215 new
65 ILCS 5/11-15.5-220 new
65 ILCS 5/11-15.5-225 new
65 ILCS 5/11-15.5-230 new
65 ILCS 5/11-15.5-235 new
HB3693 - 37 - LRB102 13259 AWJ 18603 b