99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4077
 
Introduced , by Rep. Jehan A. Gordon-Booth
 
SYNOPSIS AS INTRODUCED:



New Act

 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.



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A BILL FOR
 


HB4077LRB099 10153 MGM 30376 b



1 AN ACT concerning land banks.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 1. Short title. This Act may be cited as the Land 
5Bank Act.

6 Section 5. Legislative intent.
7 The General Assembly finds and declares that Illinois' 
8communities are important to the social and economic vitality 
9of the State. Whether urban, suburban, or rural, many 
10communities are struggling to cope with vacant, abandoned, and 
11tax-delinquent properties. Evidence demonstrates that a 
12persistently high rate of vacant lots and structures harms the 
13safety and economic strength of individual communities and 
14neighborhoods within the State of Illinois.
15 There is a crisis in many cities and their metropolitan 
16areas caused by disinvestment in real property and resulting in 
17a significant amount of vacant and abandoned property. This 
18condition of vacant and abandoned property represents lost 
19revenue to local governments and large costs ranging from 
20demolition, effects of safety hazards, and spreading 
21deterioration of neighborhoods, including resulting mortgage 
22foreclosures.
23 The need exists to strengthen and revitalize the economy of 
 
 
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1the State and its units of local government by solving the 
2problems of vacant and abandoned property in a coordinated 
3manner and to foster the development of such property and 
4promote economic growth. These problems may include multiple 
5taxing jurisdictions lacking common policies, ineffective 
6property inspection, code enforcement and property 
7rehabilitation support, lengthy or inadequate foreclosure 
8proceedings, and lack of coordination and resources to support 
9economic revitalization.
10 There is an overriding public need to confront the problems 
11caused by vacant, abandoned, and tax-delinquent properties 
12through the creation of new tools available to communities 
13throughout Illinois enabling them to turn vacant spaces into 
14vibrant places. Land banks are one of the tools that can be 
15used by communities to facilitate the return of vacant, 
16abandoned, and tax-delinquent properties to productive use.
17 The primary focus of land bank operations is the 
18acquisition of real property that is tax delinquent, tax 
19foreclosed, vacant, or abandoned, and the use of tools 
20authorized in this Act to eliminate the harms and liabilities 
21caused by such properties. A land bank must ensure that 
22communities affected by vacant land have substantial and 
23meaningful involvement in decisions relating to those 
24communities, with the community involvement directing the land 
25bank's governance, structure, and operations. The State 
26recognizes public health and safety as an integral part of 
 
 
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1neighborhood stabilization and development; therefore, a land 
2bank should promote development that improves health and access 
3to health care within all communities and neighborhoods.

4 Section 10. Definitions. As used in this Act, unless the 
5context clearly indicates otherwise:
6 "Board of directors" or "board" means the board of 
7directors of a land bank.

8 "Land bank" means a land bank established as not-for-profit 
9corporation and in accordance with the provisions of this Act 
10and under the General Not For Profit Corporation Act of 1986.

11 "Foreclosing governmental unit" shall mean "taxing 
12district" as defined in Section 1-150 of the Property Tax Code.

13 "Unit of local government" means a municipality, township, 
14or county.

15 "School district" means a school district as defined under 
16the School District Intergovernmental Cooperation Renewable 
17Energy Act.

18 "Real property" means lands, lands under water, structures 
19and any and all easements, air rights, franchises, and 
20incorporeal hereditaments and every estate and right therein, 
21legal and equitable, including terms for years and liens by way 
22of judgment, mortgage or otherwise, and any and all fixtures 
23and improvements located thereon.

24 "Brownfields site" or "brownfield" mean a parcel of real 
25property, or a portion of the parcel, that has actual or 
 
 
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1perceived contamination and an active potential for 
2redevelopment.


3 Section 12. Intergovernmental agreements. Any one or more 
4public agencies may contract with any one or more other public 
5agencies to perform any governmental service, activity, or 
6undertaking or to combine, transfer, or exercise any powers, 
7functions, privileges, or authority which any of the public 
8agencies entering into the contract is authorized by law to 
9perform, provided that such contract shall be approved by the 
10governing bodies of each party to the contract and except where 
11specifically and expressly prohibited by law. Such contract 
12shall set forth fully the purposes, powers, rights, objectives 
13and responsibilities of the contracting parties.

14 Section 15. Creation and existence.
15 (a) Any foreclosing governmental unit may create a land 
16bank by ordinance or resolution specifying the following:
17  (1) the name of the land bank;
18  (2) the number of members of the board of directors, 
19 which shall consist of an odd number of members, and shall 
20 be not less than 5 members nor more than 11 members;
21  (3) the individuals to serve as the initial members of 
22 the board of directors, and the length of terms for which 
23 they are to serve;
24  (4) the qualifications of members of the board under 
 
 
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1 subsection (d) of Section 20;
2  (5) the manner of selection or appointment, and terms 
3 of office of members of the board; 
4  (6) the articles of incorporation for the land bank, 
5 which shall be filed with the Secretary of State in 
6 accordance with the procedures set forth in this Act; and
7  (7) the land bank's website URL, which shall include: 
8 (i) an up-to-date inventory of property owned by the land 
9 bank; (ii) a record of all property conveyed by the land 
10 bank to other parties, including, but not limited to, the 
11 sale price for which the property was conveyed, the party 
12 to whom the property was conveyed, a summary of any terms 
13 and conditions of the conveyance, including the intended 
14 use the property, and whether the sales price was less than 
15 the fair market value; and (iii) the lank bank's policies, 
16 strategic plans, and annual performance reports; the land 
17 bank shall provide a mechanism through which individuals 
18 may request and receive ongoing notifications as to changes 
19 in the status of any property owned by the land bank.
20 (b) Two or more foreclosing governmental units may enter 
21into an intergovernmental agreement that creates a single land 
22bank to act on behalf of both foreclosing governmental units. 
23The intergovernmental agreement shall be authorized by and be 
24in accordance with the provisions of subsection (a) of this 
25Section. The agreement shall include provisions for 
26dissolution of the land bank.
 
 
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1 (c) Any foreclosing governmental units and any other unit 
2of local government may enter into an intergovernmental 
3agreement that creates a single land bank to act on behalf of 
4the foreclosing governmental unit and the unit of local 
5government. The intergovernmental agreement between the 
6foreclosing governmental unit and the unit of local government 
7shall be in accordance with the provisions of subsection (a) of 
8this Section. The agreement shall include provisions for 
9dissolution of the land bank.
10 (d) Except when a land bank is created under subsection (b) 
11or (c) of this Section, a county creating a land bank shall 
12have the power to acquire real property only in those portions 
13of the county located outside of the geographical boundaries of 
14any other land bank created by any other foreclosing 
15governmental unit located partially or wholly within the 
16county.
17 (e) A school district may participate in a land bank under 
18an intergovernmental agreement with the foreclosing 
19governmental unit that creates the land bank. Any such 
20intergovernmental agreement between a foreclosing governmental 
21unit and a school district shall specify the membership, if 
22any, of such school district on the board of directors of the 
23land bank and the actions of the land bank that are subject to 
24approval by the school district.
25 (f) Each land bank created under this Act shall be a 
26not-for-profit corporation, and shall have permanent and 
 
 
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1perpetual duration until terminated and dissolved in 
2accordance with the provisions of Section 60.
3 (g) The Auditor General shall have the authority to audit 
4any land bank under this Act.

5 Section 20. Board of directors.
6 (a) The initial size of the board shall be determined in 
7accordance with Section 15. Unless restricted by the actions or 
8agreements specified in Section 15, the provisions of this 
9Section shall apply.
10 The size of the board may be adjusted in accordance with 
11by-laws of the land bank.
12 (b) In the event that a land bank is created under an 
13intergovernmental agreement in accordance with Section 15, 
14such intergovernmental agreement shall meet the requirements 
15of subsection (a) of Section 15, provided that each foreclosing 
16governmental unit shall have at least one appointment to the 
17board.
18 (c) Any public officer shall be eligible to serve as a 
19board member and the acceptance of the appointment shall 
20neither terminate nor impair such public office. For purposes 
21of this Section, "public officer" shall mean a person who is 
22elected to an office representing a unit of local government. 
23Any employee or appointed officer of a unit of local government 
24shall be eligible to serve as a board member.
25 (d) Board members shall: (1) include individuals with 
 
 
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1expertise in relevant areas, including, but not limited to, 
2community planning, environmental health, public health, and 
3publicly accessible open space; (2) live or work within the 
4State; and (3) have particular knowledge of conditions and 
5needs in neighborhoods with significant rates of vacant, or 
6publicly-owned properties. One-fifth of the Board membership 
7shall be comprised of community residents or community members 
8from existing grassroots or community-based organizations. 
9These members shall have particular knowledge of conditions and 
10needs in communities with significant rates of vacant or 
11publicly-owned properties.
12 (e) The members of the board of directors shall select 
13annually from among themselves a chairman, vice-chairman, 
14treasurer, and such other officers as the board may determine, 
15and shall establish their duties as may be regulated by rules 
16adopted by the board.
17 (f) The board shall by rule establish requirements 
18concerning the attendance and participation of members in its 
19meetings, both regular and special. The rules may prescribe a 
20procedure whereby, if any member fails to comply with the 
21rules, that member may be disqualified and removed 
22automatically from office by a majority vote of the other 
23members of the board, and that member's position shall be 
24vacant as of the first day of the next calendar month. Any 
25person removed under the provisions of this subsection (f) 
26shall be ineligible for reappointment to the board, unless such 
 
 
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1reappointment is confirmed unanimously by the board.
2 (g) A vacancy on the board shall be filled in the same 
3manner as the original appointment.
4 (h) Board members shall serve without compensation, shall 
5have the power to organize and reorganize the executive, 
6administrative, clerical, and other departments of the land 
7bank, and to fix the duties, powers, and compensation of all 
8employees, agents, and consultants of the land bank. The board 
9may reimburse any member for reasonable expenses actually 
10incurred in the performance of duties on behalf of the land 
11bank.
12 (i) The board shall meet in regular session according to a 
13schedule adopted by the board, and also shall meet in special 
14session as convened by the chairman or upon written notice 
15signed by a majority of the members.
16 (j) A majority of the members of the board, not including 
17vacancies, shall constitute a quorum for the conduct of 
18business. All actions of the board shall be approved by the 
19affirmative vote of a majority of the members of that board 
20present and voting, provided, however, that no action of the 
21board shall be authorized on the following matters, unless 
22approved by a majority of the total board membership:
23  (1) adoption of by-laws and other rules and regulations 
24 for conduct of the land bank's business;
25  (2) hiring or firing of any employee or contractor of 
26 the land bank; this function may, by majority vote of the 
 
 
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1 total board membership, be delegated to a specified officer 
2 or committee of the land bank, under such terms and 
3 conditions, and to the extent, that the board may specify; 
4  (3) the incurring of debt;
5  (4) adoption or amendment of the annual budget; and
6  (5) sale, lease, encumbrance, or alienation of real 
7 property, improvements, or personal property.
8 (k) Members of a board shall not be liable personally on 
9the bonds or other obligations of the land bank, and the rights 
10of creditors shall be solely against such land bank.
11 (l) Members of the board shall not be permitted to vote by 
12proxy. Any member may request a recorded vote on any resolution 
13or action of the land bank.

14 Section 25. Staff. A land bank may employ a secretary, an 
15executive director, its own counsel and legal staff, and such 
16technical experts, and such other agents and employees, 
17permanent or temporary, as it may require, and may determine 
18the qualifications and fix the compensation and benefits of 
19such persons. A land bank may also enter into contracts and 
20agreements with units of local government for staffing services 
21to be provided to the land bank by units of local government or 
22agencies or departments thereof, or for a land bank to provide 
23such staffing services to units of local government or agencies 
24or departments thereof.

 
 
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1 Section 30. Powers and responsibilities.
2 (a) A land bank shall be incorporated as a not-for-profit 
3corporation under Illinois law. The land bank's powers shall 
4include all powers necessary to carry out and effectuate the 
5purposes and provisions of this Act, provided there is 
6meaningful community involvement regarding decisions that 
7impact those communities. The land bank shall have the 
8following powers, in addition to those otherwise granted:

9  (1) to adopt, amend, and repeal bylaws for the 
10 regulation of its affairs and the conduct of its business;

11  (2) to sue and be sued in its own name and plead and be 
12 impleaded in all civil actions, including, but not limited 
13 to, actions to clear title to property of the land bank;

14  (3) to adopt a seal and to alter the same at pleasure;

15  (4) to make contracts, give guarantees and incur 
16 liabilities, borrow money at such rates of interest as the 
17 land bank may determine;

18  (5) to issue negotiable revenue bonds and notes 
19 according to the provisions of this Act;

20  (6) to procure insurance or guarantees from the State 
21 or federal government of the payments of any debts or 
22 portion of debt incurred by the land bank, and to pay 
23 premiums in connection with such insurance;

24  (7) to enter into contracts and other instruments 
25 necessary to the performance of its duties and the exercise 
26 of its powers;

 
 
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1  (8) to enter into contracts and other instruments 
2 necessary to the performance of functions by the land bank 
3 on behalf of units of local government or agencies or 
4 departments of units of local government, or the 
5 performance by units of local government or agencies or 
6 departments of units of local government of functions on 
7 behalf of the land bank;

8  (9) to make and execute contracts and other instruments 
9 necessary to the exercise of the powers of the land bank; 
10 and any contract or instrument when signed by the chairman 
11 or vice-chairman of the land bank, or by an authorized use 
12 of their facsimile signatures, and by the secretary or 
13 assistant secretary, or, treasurer or assistant treasurer 
14 of the land bank, or by an authorized use of their 
15 facsimile signatures, shall be held to have been properly 
16 executed for and on its behalf;

17  (10) to procure insurance against losses in connection 
18 with the real property, assets, or activities of the land 
19 bank;

20  (11) to invest money of the land bank, at the 
21 discretion of the board of directors, in instruments, 
22 obligations, securities, or property determined proper by 
23 the board of directors, and name and use depositories for 
24 its money;

25  (12) to enter into contracts for the management of, the 
26 collection of rent from, or the sale of real property of 
 
 
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1 the land bank;

2  (13) to design, develop, construct, demolish, 
3 reconstruct, rehabilitate, renovate, relocate, and 
4 otherwise improve real property or rights or interests in 
5 real property;

6  (14) to fix, charge, and collect rents, fees, and 
7 charges for the use of real property of the land bank and 
8 for services provided by the land bank;

9  (15) to grant or acquire a license, easement, lease (as 
10 lessor or as lessee), or option with respect to real 
11 property of the land bank;

12  (16) to enter into partnership, joint ventures, and 
13 other collaborative relationships with units of local 
14 government and other public and private entities for the 
15 ownership, management, development, and disposition of 
16 real property;

17  (17) to inventory vacant, abandoned and tax foreclosed 
18 properties;

19  (18) to develop a redevelopment plan to be approved by 
20 the foreclosing governmental unit or units;

21  (19) to be subject to building codes and zoning laws of 
22 the corresponding unit of local government; and

23  (20) to enter in agreements with a foreclosing 
24 governmental unit for the distribution of revenues to the 
25 foreclosing governmental unit and school district.

26 (b) The land bank shall create a strategic plan every 3 
 
 
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1years that sets forth the goals of the land bank. The plan 
2shall also describe how the goals will be tracked and include 
3action items necessary to achieve each goal. On an annual 
4basis, the land bank shall prepare a performance report that 
5includes, at a minimum, the following items: (i) a list of all 
6properties acquired by the land bank; (ii) a list of all 
7properties conveyed by the land bank that includes the price, 
8name of the buyer, proposed use, a summary of any special terms 
9and conditions of the conveyance, and whether the sale price 
10was less than fair market value; and (iii) an analysis 
11demonstrating the land bank's yearly progress towards 
12fulfilling the goals set forth in the strategic plan, and if 
13achievement or reasonable progress toward such goals is not 
14achieved, a revised plan to be executed during the following 
15year.
16 (c) A land bank shall neither possess nor exercise the 
17power of eminent domain.

18 Section 35. Acquisition of property.
19 (a) The real property of a land bank and its income and 
20operations are exempt from all taxation by the State of 
21Illinois and by any of its political subdivisions.

22 (b) The land bank may acquire real property or interests in 
23real property by gift, devise, transfer, exchange, 
24foreclosure, purchase, or otherwise on terms and conditions and 
25in a manner the land bank considers proper.

 
 
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1 (c) The land bank may acquire real property by purchase 
2contracts, lease purchase agreements, installment sales 
3contracts, and land contracts and may accept transfers from 
4units of local government upon such terms and conditions as 
5agreed to by the land bank and the unit of local government. 
6Notwithstanding any other law to the contrary, any unit of 
7local government may transfer to the land bank real property 
8and interests in real property of the unit of local government 
9on such terms and conditions and according to such procedures 
10as determined by the unit of local government.

11 (d) The land bank shall maintain all of its real property 
12in accordance with the laws and ordinances of the jurisdiction 
13in which the real property is located.

14 (e) The land bank shall not own or hold real property 
15located outside the jurisdictional boundaries of the 
16foreclosing governmental unit or units which created the land 
17bank; provided, however, that a land bank may be granted 
18authority under an intergovernmental agreement with another 
19unit of local government to manage and maintain real property 
20located within the jurisdiction of such other unit of local 
21government.

22 (f) Notwithstanding any other provision of law to the 
23contrary, any unit of local government may convey to a land 
24bank real property and interests in real property on such terms 
25and conditions, form and substance of consideration, and 
26procedures, all as determined by the transferring unit of local 
 
 
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1government in its discretion.

2 (g) The acquisition of real property by a land bank under 
3this Act, from entities other than political subdivisions, 
4shall be limited to real property that is tax-delinquent, 
5tax-foreclosed, vacant or abandoned; provided, however, that a 
6land bank shall have authority to enter into agreements to 
7purchase other real property consistent with an approved 
8redevelopment plan.

9 (h) The land bank shall maintain and make available for 
10public inspection a complete inventory of all property received 
11by the land bank. Such inventory shall include: the location of 
12the parcel; the purchase price, if any, for each parcel 
13received; the current value assigned to the property for 
14purposes of real property taxation; the amount, if any, owed to 
15the locality for real property taxation; the identity of the 
16transferor; and any conditions or restrictions applicable to 
17the property.

18 (i) All parcels received by the land bank shall be listed 
19on the received inventory established under subsection (h) of 
20this Section within one week of acquisition and shall remain in 
21such inventory for one week prior to disposition.

22 (j) Failure to comply with the requirements in subsections 
23(h) and (i) of this Section with regard to any particular 
24parcel shall cause such acquisition by the land bank to be null 
25and void.

 
 
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1 Section 40. Disposition of property.
2 (a) The land bank shall hold in its own name all real 
3property acquired by the land bank irrespective of the identity 
4of the transferor of such property.

5 (b) The land bank shall maintain and make available for 
6public inspection a complete inventory of all real property 
7dispositions by the land bank. The inventory shall include a 
8complete copy of the sales contract, including all terms and 
9conditions, including, but not limited to, any form of 
10compensation received by the land bank or any other party that 
11is not included within the sale price.

12 (c) The land bank shall determine and set forth in policies 
13and procedures of the board of directors, the general terms and 
14conditions for consideration to be received by the land bank 
15for the transfer of real property and interests in real 
16property, which consideration may take the form of monetary 
17payments and secured financial obligations, covenants and 
18conditions related to the present and future use of the 
19property, contractual commitments of the transferee, and any 
20other forms of consideration as are consistent with State and 
21local law.

22 (d) The land bank may convey, exchange, sell, transfer, 
23lease as lessor, grant, release, demise, or pledge any and all 
24interests in, upon, or to real property of the land bank.

25 (e) Upon creating a land bank, any foreclosing governmental 
26unit shall determine, in consultation with the impacted 
 
 
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1community, how the real property conveyed by the land bank will 
2be used, selecting one or more of the following uses:

3  (1) neighborhood health clinics and centers, 
4 hospitals, or urgent care clinics;

5  (2) services and enrichment facilities, such as senior 
6 and community centers;

7  (3) community open space, green-space, or wildlife 
8 conservation areas; or

9  (4) urban agriculture, such as community gardens and 
10 composting sites.

11 (f) The land bank may offer properties at less than fair 
12market value where the land bank finds that the proposed use 
13would create beneficial community impact, such as: community 
14facilities that provide needed services to residents; 
15community open space; and any other specified uses established 
16under subsection (e). The land bank shall allow applications 
17for less than fair market value, including nominal disposition, 
18for any property owned by the land bank. In calculating a 
19reduced sales price, the land bank shall consider the benefit 
20provided by the proposed use and, if applicable, the amount of 
21discount needed to make the project both initially financially 
22feasible and continually sustainable.
23 (g) A foreclosing governmental unit may require that any 
24particular form of disposition of real property, or any 
25disposition of real property located within specified 
26jurisdictions, be subject to voting and approval requirements 
 
 
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1of the board of directors. Except and unless restricted or 
2constrained in this manner, the board of directors may delegate 
3to officers and employees the authority to enter into and 
4execute agreements, instruments of conveyance, and all other 
5related documents pertaining to the conveyance of real property 
6by the land bank.

7 (h) All property dispositions shall be listed on the 
8property disposition inventory established under subsection 
9(b) of this Section within one week of disposition. Such 
10records shall remain available for public inspection in the 
11property disposition inventory indefinitely.

12 (i) Failure to comply with the requirements of subsection 
13(h) of this Section shall subject the land bank to a civil 
14penalty of $100 per violation up to a maximum of $10,000 for 
15each parcel, recoverable in an action brought by the Attorney 
16General or State's Attorney. The Attorney General or State's 
17Attorney may also seek rescission of the real property 
18transaction.

19 Section 45. Financing of land bank operations.
20 (a) A land bank may receive funding through grants and 
21loans from the foreclosing governmental unit or units which 
22created the land bank, from other units of local government, 
23from the State, from the federal government, and from other 
24public and private sources.

25 (b) A land bank may receive and retain payments for 
 
 
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1services rendered, for rents and leasehold payments received, 
2for consideration for disposition of real and personal 
3property, for proceeds of insurance coverage for losses 
4incurred, for income from investments, and for any other asset 
5and activity lawfully permitted to a land bank under this Act.

6 (c) Upon the adoption of an ordinance or resolution by unit 
7of local government, school district, or any taxing district, 
850% of the real property taxes collected on any specific parcel 
9of real property identified by such unit of local government, 
10school district, or any taxing jurisdiction may be remitted to 
11the land bank in accordance with procedures established by 
12rules adopted by the Department of Revenue. Such allocation of 
13real property tax revenues shall begin with the first taxable 
14year following the date of conveyance and shall continue for a 
15period of 5 years.

16 Section 50. Bonds.
17 (a) Any foreclosing governmental unit or school district 
18which receives funds from
the Department of Revenue, including 
19without limitation funds received
pursuant to Sections 8-11-1, 
208-11-1.4 or 8-11-5 of the Illinois Municipal
Code, the Home 
21Rule County Retailers' Occupation Tax Act or the Home Rule

22County Service Occupation Tax Act, Section 5.01 of the Local 
23Mass Transit
District Act, Sections 2 or 12 of "An Act in 
24relation to State revenue
sharing with local governmental 
25entities", approved July 31, 1969, from the
Department of 
 
 
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1Transportation pursuant to Section 8 of the Motor Fuel Tax
Law, 
2or from the State Superintendent of Education (directly or 
3indirectly
through regional superintendents of schools) 
4pursuant to Article 18 of The
School Code, or any foreclosing 
5governmental unit or school district which receives other funds

6which are at any time in the custody of the State Treasurer, 
7the State
Comptroller, the Department of Revenue, the 
8Department of Transportation or
the State Superintendent of 
9Education may, by appropriate proceedings,
pledge to a land 
10bank which it has created by ordinance or resolution, or with 
11which it has an intergovernmental agreement, any or all of such 
12receipts
to the extent that such receipts are necessary to 
13provide revenues to pay
the principal of, premium, if any, and 
14interest on, and other fees related
to, or to secure, any bonds 
15issued by the land bank. Any pledge of such receipts
(or any 
16portion thereof) shall constitute a first and prior lien 
17thereon
and shall be binding from the time the pledge is made.
18 (b) Upon receipt of a certified copy of proceedings under 
19subsection (a) by the State Treasurer, the State Comptroller, 
20the Department
of Revenue, the Department of Transportation or 
21the State Superintendent of
Education, as the case may be, such 
22Department or State Superintendent
shall direct the State 
23Comptroller and State Treasurer to pay to, or on
behalf of, the 
24land bank or such other entity (including, without
limitation, 
25any trustee) all or such portion of the pledged receipts from

26the Department of Revenue, or the Department of Transportation 
 
 
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1or the State
Superintendent of Education (directly or 
2indirectly through regional
superintendents of schools), as 
3the case may be, sufficient to pay the
principal of and 
4premium, if any, and interest on, and other fees related
to, 
5the local governmental securities for which the pledge was 
6made. The proceedings shall constitute
authorization for a 
7directive to the State Comptroller to cause orders
to be drawn 
8and to the State Treasurer to pay in accordance with the 
9directive. To the extent that the land bank or its designee 
10notifies the
Department of Revenue, the Department of 
11Transportation or the
State Superintendent of Education, as the 
12case may be, that the foreclosing governmental unit or school 
13district has previously paid to the land bank or its designee 
14the
amount of any principal,
premium, interest and fees payable 
15from such pledged receipts, the State
Comptroller shall cause 
16orders to be drawn and the State Treasurer shall
pay such 
17pledged receipts to the foreclosing governmental unit or school 
18district as if they were
not pledged receipts. To the extent 
19that such receipts are pledged and
paid to the land bank or 
20such other entity, any taxes which have been
levied or fees or 
21charges assessed pursuant to law on account of the
issuance of 
22such bonds issued by the land bank shall be paid to the 
23foreclosing governmental unit or school district and may be 
24used for the purposes which the pledged receipts would have 
25been used.
26 (c) Any such foreclosing governmental unit or school 
 
 
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1district may, by such proceedings, direct that
such pledged 
2receipts payable to such foreclosing governmental unit or 
3school district be paid to
the land bank or such other entity 
4(including without limitation any
trustee) upon a default in 
5the payment of any principal of, premium, if
any, or interest 
6on, or fees relating to, any of the bonds issued by the land 
7bank which have been sold or
delivered to the land bank or its 
8designee or any of the bonds issued by the land bank which have 
9been sold or delivered to the land bank or its
designee and 
10which are secured by such lease rental payments. If such
local 
11governmental security is in default as to the payment of 
12principal
thereof, premium, if any, or interest thereon, or 
13fees relating thereto, to the
extent that the State Treasurer, 
14the State Comptroller, the Department of
Revenue, the 
15Department of Transportation or the State Superintendent of

16Education (directly or indirectly through regional 
17superintendents of
schools) shall be the custodian at any time 
18of any other available funds or
moneys pledged to the payment 
19of such bonds issued by the land bank under this Section
and 
20due or payable to such a foreclosing governmental unit or 
21school district at any time
subsequent to written notice to the 
22State Comptroller and State Treasurer
from the land bank or any 
23entity acting on behalf of the land bank (including, without 
24limitation, any trustee) to the effect that such foreclosing 
25governmental unit or school district has not paid or is in 
26default as to payment of the
principal of, premium, if any, or 
 
 
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1interest on, or fees relating to, any
local government security 
2sold or delivered to the land bank or any such
entity 
3(including, without limitation, any trustee) or has not paid or 
4is in
default as to the payment of such lease rental payments 
5securing the
payment of the principal of, premiums, if any, or 
6interest on, or other
fees relating to, any local government 
7security sold or delivered to the
land bank or such other 
8entity (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 
 
 
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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 
5securities of the
land bank or its designee, the foreclosing 
6governmental unit or school district which issued such local

7government securities shall be deemed to have agreed that upon 
8its failure
to pay interest or premium, if any, on, or 
9principal of, or fees relating
to, the local government 
10securities sold or delivered to the land bank or
any entity 
11acting on behalf of the land bank (including, without 
12limitation,
any trustee) when payable, all statutory defenses 
13to nonpayment are thereby
waived. Upon a default in the payment 
14of principal of or interest on any
bonds issued by the land 
15bank and sold by the land bank or its designee,
and upon demand 
16on the foreclosing governmental unit or school district for 
17payment, if the bonds issued by the land bank are payable from 
18property taxes and funds are not
legally available in the 
19treasury of the foreclosing governmental unit or school 
20district to make
payment, an action in mandamus for the levy of 
21a tax by the foreclosing governmental unit or school district 
22to pay the principal of or interest on the bonds issued by the 
23land bank shall lie, and the land bank or such entity shall be 
24constituted
a holder or owner of the bonds issued by the land 
25bank as being in default.
Upon the occurrence of any failure or 
26default with respect to any bonds issued by the land bank, the 
 
 
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1land bank or such entity may thereupon avail itself of all 
2remedies, rights and
provisions of law applicable in the 
3circumstances, and the failure to
exercise or exert any rights 
4or remedies within a time or period provided
by law may not be 
5raised as a defense by the foreclosing governmental unit or 
6school district.
7 (e) The issuance of bonds under this Section is deemed an 
8essential public and governmental purpose.
Interest on the 
9bonds issued
under this Section after the effective date of 
10this Act is
exempt from taxation within this State. For 
11purposes of Section 250 of the Illinois Income Tax Act, the 
12exemption of
the interest from bonds granted under this Section 
13shall terminate after all of
the bonds have been paid.
The 
14amount of such income that shall be added and then subtracted 
15on the
Illinois income tax return of a taxpayer, pursuant to 
16Section 203 of the
Illinois Income Tax Act, from federal 
17adjusted gross income or federal taxable
income in computing 
18Illinois base income shall be the interest net of any bond

19premium amortization.

20 Section 55. Public records and public meetings.
21 (a) The board shall cause minutes and a record to be kept 
22of all its proceedings. Except as otherwise provided in this 
23Section, the land bank shall be subject to the Open Meetings 
24Act and the Freedom of Information Act.

25 (b) The board of the land bank shall hold quarterly public 
 
 
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1meetings, shall make each meeting's agenda available on the 
2land bank's website at least 10 days in advance of each 
3meeting, and shall allow for public comment on matters under 
4deliberation at each such public meeting. Provided, however, 
5the quarterly requirement shall not preclude the board of the 
6land bank from holding public meetings as often as it deems 
7necessary.
8 (c) A land bank shall hold a public hearing prior to 
9financing or issuance of bonds. The land bank shall schedule 
10and hold a public hearing and solicit public comment. After the 
11conclusion of the public hearing and comments, the land bank 
12shall consider the results of the public hearing and comments 
13with respect to the proposed actions. This consideration by the 
14land bank shall include the accommodation of the public 
15interest with respect to such actions. If an accommodation is 
16deemed in the best interest of the community proposed actions 
17shall include that accommodation.

18 (d) In addition to any other report required by this Act, 
19the land bank, through its chairperson, shall annually deliver, 
20in oral and written form, a report to the units of local 
21government in which the land bank is located. This report shall 
22be presented by March 15 of each year to the governing body or 
23board of the units of local government. The report shall 
24describe in detail the projects undertaken by the land bank 
25during the past year, the moneys expended by the land bank 
26during the past year, and the administrative activities of the 
 
 
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1land bank during the past year. At the conclusion of the 
2report, the chairperson of the land bank shall be prepared to 
3answer the questions of the units of local government with 
4respect to the projects undertaken by the authority during the 
5past year, the moneys expended by the unit of local government 
6during the past year, and the administrative activities of the 
7units of local government during the past year.

8 Section 60. Dissolution of land bank. A land bank may be 
9dissolved as a not-for-profit corporation 60 calendar days 
10after an affirmative resolution approved by two-thirds of the 
11membership of the board of directors. Sixty calendar days 
12advance written notice of consideration of a resolution of 
13dissolution shall be given to the foreclosing governmental unit 
14or units that created the land bank, shall be published in a 
15local newspaper of general circulation, and shall be sent 
16certified mail to the trustee of any outstanding bonds of the 
17land bank. Upon dissolution of the land bank, all real 
18property, personal property, and other assets of the land bank 
19shall become the assets of the foreclosing governmental unit or 
20units that created the land bank. In the event that 2 or more 
21foreclosing governmental units create a land bank in accordance 
22with Section 15, the withdrawal of one or more foreclosing 
23governmental units shall not result in the dissolution of the 
24land bank unless the intergovernmental agreement so provides 
25and there is no foreclosing governmental unit that desires to 
 
 
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1continue the existence of the land bank.

2 Section 65. Conflicts of interest. No member of the board 
3or employee of a land bank shall acquire any interest, direct 
4or indirect, in real property of the land bank, in any real 
5property to be acquired by the land bank, or in any real 
6property to be acquired from the land bank. No member of the 
7board or employee of a land bank shall have any interest, 
8direct or indirect, in any contract or proposed contract for 
9materials or services to be furnished or used by a land bank. 
10The board may adopt supplemental regulations addressing 
11potential conflicts of interest and ethical guidelines for 
12members of the board and land bank employees.

13 Section 70. Construction. The provisions of this Act shall 
14be construed liberally to effectuate the legislative intent and 
15the purposes as complete and independent authorization for the 
16performance of each and every act authorized by this Act, and 
17all powers granted shall be broadly interpreted to effectuate 
18the intent and purposes and not as a limitation of powers. 
19Except as otherwise expressly set forth in this Act, in the 
20exercise of its powers and duties under this Act and its powers 
21relating to property held by the land bank, the land bank shall 
22have complete control as fully and completely as if it 
23represented a private property owner and shall not be subject 
24to restrictions imposed by the charter, ordinances, or 
 
 
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1resolutions of a unit of local government.

2 Section 75. Delinquent property tax enforcement. Units of 
3local government may enter into contracts to sell some or all 
4of the delinquent tax liens held by the unit of local 
5government to a land bank, subject to the following conditions:

6 (a) The consideration to be paid may be more or less than 
7the face amount of the tax liens sold.

8 (b) Property owners shall be given advance notice of such 
9sale in the same form and manner as is provided by Section 
1021-135 of the Property Tax Code. Failure to provide such notice 
11or the failure of the addressee to receive the same shall not 
12in any way affect the validity of any sale of a tax lien or tax 
13liens or the validity of the taxes or interest prescribed by 
14law.

15 (c) The unit of local government shall set the terms and 
16conditions of the contract of sale.

17 (d) Thirty days before the commencement of any foreclosure 
18action, the land bank must provide to the unit of local 
19government a list of liens to be foreclosed. The unit of local 
20government may, at its sole option and discretion, repurchase a 
21lien or liens on the foreclosure list from the land bank. The 
22repurchase price shall be the amount of the lien or liens plus 
23any accrued interest and collection fees incurred by the land 
24bank. The land bank shall provide the foreclosure list to the 
25unit of local government, along with the applicable repurchase 
 
 
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1price of each lien, by certified mail, and the unit of local 
2government shall have 30 days from receipt to notify the land 
3bank of its option to purchase one or more of the liens. If the 
4unit of local government opts to purchase the lien, it shall 
5provide payment within 30 days of receipt of the repurchase 
6price of said lien or liens. If the unit of local government 
7shall fail to opt to repurchase the lien or liens the land bank 
8shall have the right to commence a foreclosure action 
9immediately.

10 (e) The sale of a tax lien under this Act shall not shorten 
11the otherwise applicable redemption period or change the 
12otherwise applicable interest rate.

13 (f) After sale, the purchaser shall comply with the 
14provisions for notice of sale, redemption rights, notice of 
15expiration of period of redemption, and issuance of deed in 
16accordance with Article 22 of the Property Tax Code.

17 (g) The provisions of Section 21-72 of the Property Tax 
18Code shall apply so far as is practicable to a contract for the 
19sale of tax liens under this Act.

20 (h) If the court orders a public sale under Article 21 of 
21Division 3.5 of the Property Tax Code, and the purchaser of the 
22property is the land bank, then the form, substance, and timing 
23of the land bank's payment of the sales price may be according 
24to such agreement as is mutually acceptable to the plaintiff 
25and the land bank. The obligation of the land bank to perform 
26in accordance with such agreement shall be deemed to be in full 
 
 
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1satisfaction of the tax claim which was the basis for the 
2judgment.

3 (i) Notwithstanding any other provision of law to the 
4contrary, in the event that no unit of local government elects 
5to tender a bid at a judicially ordered sale under the 
6provisions of Article 21 of Division 3.5 of the Property Tax 
7Code, the land bank may tender a bid at such sale in an amount 
8equal to the total amount of all municipal claims and liens 
9which were the basis for the judgment. In the event of such 
10tender by the land bank the property shall be deemed sold to 
11the land bank regardless of any bids by any other third 
12parties. The bid of the land bank shall be paid as to its form, 
13substance, and timing according to such agreement as is 
14mutually acceptable to the plaintiff and the land bank. The 
15obligation of the land bank to perform in accordance with such 
16agreement shall be deemed to be in full satisfaction of the 
17municipal claim which was the basis for the judgment. The land 
18bank, as purchaser at such sale, shall take and forever 
19thereafter have, an absolute title to the property sold, free 
20and discharged of all tax and municipal claims, liens, 
21mortgages, charges, and estates of any kind. The deed to the 
22land bank shall be executed, acknowledged, and delivered within 
2330 days of the sale.

24 Section 80. Contracts.
25 (a) The land bank may, in its discretion, assign contracts 
 
 
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1for supervision and coordination to the successful bidder for 
2any subdivision of work for which the land bank receives bids. 
3Any construction, demolition, renovation, and reconstruction 
4contract awarded by the land bank shall contain any other terms 
5and conditions as the land bank may deem desirable.

6 (b) The land bank should award contracts, whenever possible 
7under subsection (c) of this Section, to locally-owned and 
8staffed, or minority-owned construction, demolition, 
9renovation, and reconstruction companies, in order maximize 
10the employment of community residents.

11 (c) The land bank shall not award any construction, 
12demolition, renovation, and reconstruction contract greater 
13than $10,000 except to the lowest bidder who, in the opinion of 
14the land bank, is qualified to perform the work required and 
15who is responsible and reliable. The land bank may, however, 
16reject any or all bids or waive any informality in a bid if it 
17believes that the public interest will be promoted by that 
18rejection of the bid. The land bank may reject any bid, if, in 
19its judgment, the business and technical organization, plant, 
20resources, financial standing, or experience of the bidder 
21justifies such rejection in view of the work to be performed.

22 Section 85. Existing land banks. This Act shall not apply 
23to any land bank in existence before the effective date of this 
24Act.