Bill Text: IL SB0773 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB0773 Detail]

Download: Illinois-2013-SB0773-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB0773 Introduced 1/24/2013, by Sen. John J. Cullerton 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
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AN ACT concerning housing.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Housing Development and Construction Act is
amended by changing Section 5 as follows:
(310 ILCS 20/5) (from Ch. 67 1/2, par. 57)
Sec. 5. Any grants paid hereunder to a housing authority
shall be deposited in a separate fund and and, subject to the
approval of the Department of Commerce and Economic
Opportunity, may be used for any or all of the following
purposes as the needs of the community may require: the
acquisition of land by purchase, gift or condemnation and the
improvement thereof, the purchase and installation of
temporary housing facilities, the construction of housing
units for rent or sale to veterans, the families of deceased
servicemen, and for persons and families who by reason of
overcrowded housing conditions or displacement by eviction,
fires or other calamities, or slum clearance or other private
or public project involving relocation, are in urgent need of
safe and sanitary housing, the making of grants in connection
with the sale or lease of real property as provided in the
following paragraph of this section, and for any and all
purposes authorized by the "Housing Authorities Act," approved

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March 19, 1934, as amended, including administrative expenses
of the housing authorities in relation to the aforesaid
objectives, to the extent and for the purposes authorized and
approved by the Department of Commerce and Economic
Opportunity. Each housing authority is vested with power to
exercise the right of eminent domain for the purposes
authorized by this Act. Condemnation proceedings instituted by
any such authority shall be in all respects in the manner
provided for the exercise of the right of eminent domain under
the Eminent Domain Act.
In addition to the foregoing, and for the purpose of
facilitating the development and construction of housing,
housing authorities may, with the approval of the Department of
Commerce and Economic Opportunity, enter into contracts and
agreements for the sale or lease of real property acquired by
the Authority through the use of the grant hereunder, and may
sell or lease such property to (1) housing corporations
operating under "An Act in relation to housing," approved July
12, 1933, as amended; (2) neighborhood redevelopment
corporations operating under the "Neighborhood Redevelopment
Corporation Law," approved July 9, 1941; (3) insurance
companies operating under Article VIII of the Illinois
Insurance Code; (4) non-profit corporations organized for the
purpose of constructing, managing and operating housing
projects and the improvement of housing conditions, including
the sale or rental of housing units to persons in need thereof;

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or (5) to any other individual, association or corporation,
including bona fide housing cooperatives, desiring to engage in
a development or redevelopment project. The term "corporation"
as used in this section, means a corporation organized under
the laws of this or any other state of the United States, or of
any country, which may legally make investments in this State
of the character herein prescribed, including foreign and alien
insurance companies as defined in Section 2 of the "Illinois
Insurance Code." No sale or lease shall be made hereunder to
any of the aforesaid corporations, associations or individuals
unless a plan approved by the Authority has been presented by
the purchaser or lessee for the development or redevelopment of
such property, together with a bond, with satisfactory
sureties, of not less than 10% of the cost of such development
or redevelopment, conditioned upon the completion of such
development or redevelopment; provided that the requirement of
the bond may be waived by the Department of Commerce and
Economic Opportunity if it is satisfied of the financial
ability of the purchaser or lessee to complete such development
or redevelopment in accordance with the presented plan. To
further assure that the real property so sold or leased shall
be used in accordance with the plan, the Department of Commerce
and Economic Opportunity may require the purchaser or lessee to
execute in writing such undertakings as the Department deems
necessary to obligate such purchaser or lessee (1) to use the
property for the purposes presented in the plan; (2) to

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commence and complete the building of the improvements
designated in the plan within the periods of time that the
Department of Commerce and Economic Opportunity fixes as
reasonable, and (3) to comply with such other conditions as are
necessary to carry out the purposes of this Act. Any such
property may be sold pursuant to this section for any legal
consideration in an amount to be approved by the Department of
Commerce and Economic Opportunity. Subject to the approval of
the Department of Commerce and Economic Opportunity, a housing
authority may pay to any non-profit corporation of the
character described in this section from grants made available
from state funds, such sum of money which, when added to the
value of the land so sold or leased to such non-profit
corporation and the value of other assets of such non-profit
corporation available for use in the project, will enable such
non-profit corporation to obtain Federal Housing
Administration insured construction mortgages. Any such
authority may also sell, transfer, convey or assign to any such
non-profit corporation any personal property, including
building materials and supplies, as it deems necessary to
facilitate the completion of the development or redevelopment
by such non-profit corporation.
If the area of operation of a housing authority includes a
city, village or incorporated town having a population in
excess of 500,000, as determined by the last preceding Federal
Census, no real property or interest in real property shall be

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acquired in such municipality by the housing authority until
such time as the housing authority has advised the governing
body of such municipality of the description of the real
property, or interest therein, proposed to be acquired, and the
governing body of the municipality has approved the acquisition
thereof by the housing authority.
(Source: P.A. 94-793, eff. 5-19-06; 94-1055, eff. 1-1-07.)