96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB1271


 
Introduced 2/18/2009, by Rep. Jack D. Franks
 
SYNOPSIS AS INTRODUCED:








  



310 ILCS 20/5
 from Ch. 67 1/2, par. 57








 Amends the Housing Development and Construction Act. Makes a technical change in a Section
concerning
the purposes for which grants to housing authorities may be used.
















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A BILL FOR









 











HB1271

LRB096 10181 DRJ 20349 b






1
 AN ACT concerning housing.


2
 Be it enacted by the People of the State of Illinois, 
3
represented in the General Assembly: 


4
 Section 5. The Housing Development and Construction Act is 
5
amended by changing Section 5 as follows:




6
 (310 ILCS 20/5) (from Ch. 67 1/2, par. 57)



7
 Sec. 5. Any grants paid hereunder to a housing authority 
8
shall be
deposited in a separate fund and
and, subject to the 
9
approval of the
Department of Commerce and Economic 
10
Opportunity, may be used for any or all of
the following 
11
purposes as the needs of the community may require: the

12
acquisition of land by purchase, gift or condemnation and the

13
improvement thereof, the purchase and installation of 
14
temporary housing
facilities, the construction of housing 
15
units for rent or sale to
veterans, the families of deceased 
16
servicemen, and for persons and
families who by reason of 
17
overcrowded housing conditions or displacement
by eviction, 
18
fires or other calamities, or slum clearance or other
private 
19
or public project involving relocation, are in urgent need of

20
safe and sanitary housing, the making of grants in connection 
21
with the
sale or lease of real property as provided in the 
22
following paragraph of
this section, and for any and all 
23
purposes authorized by the "Housing
Authorities Act," approved 
 


 






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1
March 19, 1934, as amended, including
administrative expenses 
2
of the housing authorities in relation to the
aforesaid 
3
objectives, to the extent and for the purposes
authorized and

4
approved by the Department of Commerce and Economic 
5
Opportunity. Each housing
authority is vested with power to 
6
exercise the right of eminent domain
for the purposes 
7
authorized by this Act. Condemnation proceedings
instituted by 
8
any such authority shall be in all respects in the manner

9
provided for the exercise of the right of
eminent domain under 
10
the Eminent Domain Act.
11
 In addition to the foregoing, and for the purpose of 
12
facilitating the
development and construction of housing, 
13
housing authorities may, with
the approval of the Department of 
14
Commerce and Economic Opportunity, enter into
contracts and 
15
agreements for the sale or lease of real property acquired
by 
16
the Authority through the use of the grant hereunder, and may 
17
sell or
lease such property to (1) housing corporations 
18
operating under "An Act
in relation to housing," approved July 
19
12, 1933, as amended; (2)
neighborhood redevelopment 
20
corporations operating under the
"Neighborhood Redevelopment 
21
Corporation Law," approved July 9, 1941; (3)
insurance 
22
companies operating under Article VIII of the Illinois

23
Insurance Code; (4) non-profit
corporations organized for the 
24
purpose of constructing, managing and
operating housing 
25
projects and the improvement of housing conditions,
including 
26
the sale or rental of housing units to persons in need
thereof; 
 


 






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1
or (5) to any other individual, association or corporation,

2
including bona fide housing cooperatives, desiring to engage in 
3
a
development or redevelopment project. The term "corporation" 
4
as used in
this section, means a corporation organized under 
5
the laws of this or
any other state of the United States, or of 
6
any country, which may
legally make investments in this State 
7
of the character herein
prescribed, including foreign and alien 
8
insurance companies as defined
in Section 2 of the "Illinois 
9
Insurance Code." No sale or lease shall be
made hereunder to 
10
any of the aforesaid corporations,
associations or
individuals 
11
unless a plan approved by the Authority has been presented
by 
12
the purchaser or lessee for the development or redevelopment of 
13
such
property, together with a bond, with satisfactory 
14
sureties, of not less
than 10% of the cost of such development 
15
or redevelopment, conditioned
upon the completion of such 
16
development or redevelopment; provided that
the requirement of 
17
the bond may be waived by the Department of Commerce
and 
18
Economic Opportunity if it is satisfied of the
financial 
19
ability of the
purchaser or lessee to complete such development 
20
or redevelopment in
accordance with the presented plan. To 
21
further assure that the real
property so sold or leased shall 
22
be used in accordance with the plan,
the Department of Commerce 
23
and Economic Opportunity may require the purchaser or
lessee to 
24
execute in writing such undertakings as the Department deems

25
necessary to obligate such purchaser or lessee (1) to use the 
26
property
for the purposes presented in the plan; (2) to 
 


 






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1
commence and complete the
building of the improvements 
2
designated in the plan within the periods
of time that the 
3
Department of Commerce and Economic Opportunity fixes as

4
reasonable, and (3) to comply with such other conditions as are

5
necessary to carry out the purposes of this Act. Any such 
6
property may
be sold pursuant to this section for any legal 
7
consideration in an
amount to be approved by the Department of 
8
Commerce and Economic Opportunity.
Subject to the approval of 
9
the Department of Commerce and Economic Opportunity,
a housing 
10
authority may pay to any non-profit corporation of the

11
character described in this section from grants made available 
12
from
state funds, such sum of money which, when added to the 
13
value of the
land so sold or leased to such non-profit 
14
corporation and the value of
other assets of such non-profit 
15
corporation available for use in the
project, will enable such 
16
non-profit corporation to obtain Federal
Housing 
17
Administration insured construction mortgages. Any such

18
authority may also sell, transfer, convey or assign to any such

19
non-profit corporation any personal property, including 
20
building
materials and supplies, as it deems necessary to 
21
facilitate the
completion of the development or redevelopment 
22
by such non-profit
corporation.

23
 If the area of operation of a housing authority includes a 
24
city,
village or incorporated town having a population in 
25
excess of 500,000,
as determined by the last preceding Federal 
26
Census, no real property or
interest in real property shall be 
 


 






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1
acquired in such municipality by the
housing authority until 
2
such time as the housing authority has advised
the governing 
3
body of such municipality of the description of the real

4
property, or interest therein, proposed to be acquired, and the

5
governing body of the municipality has approved the acquisition 
6
thereof
by the housing authority.

7
(Source: P.A. 94-793, eff. 5-19-06; 94-1055, eff. 1-1-07.)