Illinois General Assembly - Full Text of SB1680
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Full Text of SB1680  98th General Assembly

SB1680ham003 98TH GENERAL ASSEMBLY

Rep. Michael J. Madigan

Filed: 11/6/2014

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1680

2    AMENDMENT NO. ______. Amend Senate Bill 1680, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Home Equity Assurance Act is amended by
6changing Section 11 as follows:
 
7    (65 ILCS 95/11)  (from Ch. 24, par. 1611)
8    Sec. 11. Guarantee Fund.
9    (a) Each governing commission and program created by
10referendum under the provisions of this Act shall maintain a
11guarantee fund for the purposes of paying the costs of
12administering the program and extending protection to members
13pursuant to the limitations and procedures set forth in this
14Act.
15    (b) The guarantee fund shall be raised by means of an
16annual tax levied on all residential property within the

 

 

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1territory of the program having at least one, but not more than
26 dwelling units and classified by county ordinance as
3residential. The rate of this tax may be changed from year to
4year by majority vote of the governing commission but in no
5case shall it exceed a rate of .12% of the equalized assessed
6valuation of all property in the territory of the program
7having at least one, but not more than 6 dwelling units and
8classified by county ordinance as residential, or the maximum
9tax rate approved by the voters of the territory at the
10referendum which created the program or, in the case of a
11merged program, the maximum tax rate approved by the voters at
12the referendum authorizing the merger, whichever rate is lower.
13The commissioners shall cause the amount to be raised by
14taxation in each year to be certified to the county clerk in
15the manner provided by law, and any tax so levied and certified
16shall be collected and enforced in the same manner and by the
17same officers as those taxes for the purposes of the county and
18city within which the territory of the commission is located.
19Any such tax, when collected, shall be paid over to the proper
20officer of the commission who is authorized to receive and
21receipt for such tax. The governing commission may issue tax
22anticipation warrants against the taxes to be assessed for the
23calendar year in which the program is created and for the first
24full calendar year after the creation of the program.
25    (c) The moneys deposited in the guarantee fund shall, as
26nearly as practicable, be fully and continuously invested or

 

 

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1reinvested by the governing commission in investment
2obligations which shall be in such amounts, and shall mature at
3such times, that the maturity or date of redemption at the
4option of the holder of such investment obligations shall
5coincide, as nearly as practicable, with the times at which
6monies will be required for the purposes of the program. For
7the purposes of this Section investment obligation shall mean
8direct general municipal, state, or federal obligations which
9at the time are legal investments under the laws of this State
10and the payment of principal of and interest on which are
11unconditionally guaranteed by the governing body issuing them.
12    (d) Except as permitted by this subsection and subsection
13(d-5), the guarantee fund shall be used solely and exclusively
14for the purpose of providing guarantees to members of the
15particular Guaranteed Home Equity Program and for reasonable
16salaries, expenses, bills, and fees incurred in administering
17the program, and shall be used for no other purpose.
18    A governing commission, with no less than $4,000,000 in its
19guarantee fund, may, if authorized by referendum duly adopted
20by a majority of the voters, establish a Low Interest Home
21Improvement Loan Program in accordance with and subject to
22procedures established by a financial institution, as defined
23in the Illinois Banking Act. Whenever the question of creating
24a Low Interest Home Improvement Loan Program is initiated by
25resolution or ordinance of the corporate authorities of the
26municipality or by a petition signed by not less than 10% of

 

 

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1the total number of registered voters of each precinct in the
2territory, the registered voters of which are eligible to sign
3the petition, it shall be the duty of the election authority
4having jurisdiction over the municipality to submit the
5question of creating the program to the electors of each
6precinct within the territory at the regular election specified
7in the resolution, ordinance, or petition initiating the
8question. A petition initiating a question described in this
9subsection shall be filed with the election authority having
10jurisdiction over the municipality. The petition shall be filed
11and objections to the petition shall be made in the manner
12provided in the Election Code. A resolution, ordinance, or
13petition initiating a question described in this subsection
14shall specify the election at which the question is to be
15submitted. The referendum on the question shall be held in
16accordance with the Election Code. The question shall be in
17substantially the following form:
18        "Shall the (name of the home equity program) implement
19    a Low Interest Home Improvement Loan Program with money
20    from the guarantee fund of the established guaranteed home
21    equity program?"
22The votes must be recorded as "Yes" or "No".
23    Whenever a majority of the voters on the public question
24approve the creation of the program as certified by the proper
25election authorities, the commission shall establish the
26program and administer the program with funds collected under

 

 

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1the Guaranteed Home Equity Program, subject to the following
2conditions:
3        (1) At any given time, the cumulative total of all
4    loans and loan guarantees (if applicable) issued under this
5    program may not reduce the balance of the guarantee fund to
6    less than $3,000,000.
7        (2) Only eligible applicants may apply for a loan.
8        (3) The loan must be used for the repair, maintenance,
9    remodeling, alteration, or improvement of a guaranteed
10    residence. This condition is intended to include the repair
11    or maintenance of a guaranteed residence's water and sewer
12    pipes and repair of a guaranteed residence, including but
13    not limited to basement repairs, following flooding damage
14    to the property. This condition is not intended to exclude
15    the repair, maintenance, remodeling, alteration, or
16    improvement of a guaranteed residence's landscape. This
17    condition is intended to exclude the demolition of a
18    current residence. This condition is also intended to
19    exclude the construction of a new residence.
20        (4) An eligible applicant may not borrow more than the
21    amount of equity value in his or her residence.
22        (5) A commission must ensure that loans issued are
23    secured with collateral that is at least equal to the
24    amount of the loan or loan guarantee.
25        (6) A commission shall charge an interest rate which it
26    determines to be below the market rate of interest

 

 

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1    generally available to the applicant.
2        (7) A commission may, by resolution, establish other
3    administrative rules and procedures as are necessary to
4    implement this program including, but not limited to, loan
5    dollar amounts and terms. A commission may also impose on
6    loan applicants a one-time application fee for the purpose
7    of defraying the costs of administering the program.
8    (d-5) A governing commission, with no less than $4,000,000
9in its guarantee fund, may, if authorized by referendum duly
10adopted by a majority of the voters, establish a Foreclosure
11Prevention Loan Fund to provide low interest emergency loans to
12eligible applicants that may be forced into foreclosure
13proceedings.
14    Whenever the question of creating a Foreclosure Prevention
15Loan Fund is initiated by resolution or ordinance of the
16corporate authorities of the municipality or by a petition
17signed by not less than 10% of the total number of registered
18voters of each precinct in the territory, the registered voters
19of which are eligible to sign the petition, it shall be the
20duty of the election authority having jurisdiction over the
21municipality to submit the question of creating the program to
22the electors of each precinct within the territory at the
23regular election specified in the resolution, ordinance, or
24petition initiating the question. A petition initiating a
25question described in this subsection shall be filed with the
26election authority having jurisdiction over the municipality.

 

 

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1The petition shall be filed and objections to the petition
2shall be made in the manner provided in the Election Code. A
3resolution, ordinance, or petition initiating a question
4described in this subsection shall specify the election at
5which the question is to be submitted. The referendum on the
6question shall be held in accordance with the Election Code.
7The question shall be in substantially the following form:
8    "Shall the (name of the home equity program) implement a
9Foreclosure Prevention Loan Fund with money from the guarantee
10fund of the established guaranteed home equity program?"
11    The votes must be recorded as "Yes" or "No".
12    Whenever a majority of the voters on the public question
13approve the creation of a Foreclosure Prevention Loan Fund as
14certified by the proper election authorities, the commission
15shall establish the program and administer the program with
16funds collected under the Guaranteed Home Equity Program,
17subject to the following conditions:
18        (1) At any given time, the cumulative total of all
19    loans and loan guarantees (if applicable) issued under this
20    program may not exceed $3,000,000.
21        (2) Only eligible applicants may apply for a loan. The
22    Commission may establish, by resolution, additional
23    criteria for eligibility.
24        (3) The loan must be used to assist with preventing
25    foreclosure proceedings.
26        (4) An eligible applicant may not borrow more than the

 

 

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1    amount of equity value in his or her residence.
2        (5) A commission must ensure that loans issued are
3    secured as a second lien on the property.
4        (6) A commission shall charge an interest rate which it
5    determines to be below the market rate of interest
6    generally available to the applicant.
7        (7) A commission may, by resolution, establish other
8    administrative rules and procedures as are necessary to
9    implement this program including, but not limited to,
10    eligibility requirements for eligible applicants, loan
11    dollar amounts, and loan terms.
12        (8) A commission may also impose on loan applicants a
13    one-time application fee for the purpose of defraying the
14    costs of administering the program.
15    (e) The guarantee fund shall be maintained, invested, and
16expended exclusively by the governing commission of the program
17for whose purposes it was created. Under no circumstance shall
18the guarantee fund be used by any person or persons,
19governmental body, or public or private agency or concern other
20than the governing commission of the program for whose purposes
21it was created. Under no circumstances shall the guarantee fund
22be commingled with other funds or investments.
23    (e-1) No commissioner or family member of a commissioner,
24or employee or family member of an employee, may receive any
25financial benefit, either directly or indirectly, from the
26guarantee fund. Nothing in this subsection (e-1) shall be

 

 

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1construed to prohibit payment of expenses to a commissioner in
2accordance with Section 4 or payment of salaries or expenses to
3an employee in accordance with this Section.
4    As used in this subsection (e-1), "family member" means a
5spouse, child, stepchild, parent, brother, or sister of a
6commissioner or a child, stepchild, parent, brother, or sister
7of a commissioner's spouse.
8    (f) An independent audit of the guarantee fund and the
9management of the program shall be conducted annually and made
10available to the public through any office of the governing
11commission or a public facility such as a local public library
12located within the territory of the program.
13(Source: P.A. 95-691, eff. 6-1-08.)".