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Staff reads statute: RDAs must add language allowing funds to pay tax liens
Summary
An agency official read a recent state statutory change requiring participation agreements executed after May 7, 2025 to allow a county or agency to use participant-directed funds to pay tax liens; agreements created earlier should be amended as soon as practical.
An agency official told the Kane County Redevelopment Agency on May 26 that recent state legislation requires participation agreements entered after May 7, 2025 to include a provision authorizing the agency or county to use funds that would otherwise go to a participant to pay off property-tax liens.
Reading the language aloud, the official said: "Beginning on 05/07/2025, any participation agreement shall include a provision authorizing the agency directly or through the county to use funding that would otherwise be provided to the participant to pay off the tax lien." The official added that for RDAs created before that date, the agreements "shall, as soon as practical, amend the agreement to include such provision." The board discussed whether the RDA is obligated to release funds while delinquent taxes exist and staff said the agency can withhold funds under current contract provisions.
Board members asked staff to coordinate next steps and to prepare suggested amendment language so future participation agreements and older ones comply with the statute.
