HB2346: Municipal Land Bank Authority

• Creates Division 15.5 in the Illinois Municipal Code allowing municipalities to establish land bank authorities as municipal agencies to acquire, manage, and dispose of vacant, abandoned, and tax-delinquent properties to promote economic development and community stabilization.

• Establishes a 12-member board of directors appointed by the mayor (subject to city council approval) including the mayor as ex officio member, 2 city council members, and representatives from economic development, banking, real estate, housing, commercial development, legal, and community sectors.

• Grants land banks broad powers to acquire property through purchase, foreclosure, tax sales, and donation; hold title in the municipality's name; discharge property taxes; borrow funds with city council approval; and dispose of property on fair and reasonable terms for public purposes.

• Provides the municipality shall defend and indemnify board members and employees from claims arising from their official duties, except for willful/wanton conduct, acts outside the land bank's authority, unauthorized settlements, or criminal proceedings.

• Requires annual audited financial statements, budgets submitted to the city council for approval, and annual reports to the mayor and city council detailing operations and financial status within 6 months of fiscal year end.