Section 302.101  Authority

 

This Part implements Section 3206 [Homeowner Assistance Fund] of the American Rescue Plan Act of 2021, Pub. L. 117-2 enacted in March 2021 and is authorized by Section 7.19 of the Illinois Housing Development Act [20 ILCS 3805/7.19].

 

Section 302.102  Purpose and Objectives

 

The purpose of the Homeowner Assistance Fund programs is to use moneys to provide assistance to eligible homeowners to mitigate financial hardships associated with the COVID-19 pandemic by preventing homeowner mortgage delinquencies, defaults, foreclosures, loss of utilities or home energy services, and displacement; and to provide housing stability services.

 

Section 302.103  Definitions

 

The following definitions apply to terms used in this Part:

 

“American Rescue Plan Act”:  The American Rescue Plan Act of 2021, P.L. 117-2 (March 11, 2021).

 

“Annual Income”:  The definition established by the U.S. Department of Housing and Urban Development in 24 CFR 5.609.

 

“Applicant” or “program applicant”:  Any Homeowner that has submitted an application, individually or jointly, to receive HAF funds.

 

“Area Median Income”:  The area median income, adjusted for household size, as established by the U.S. Department of Housing and Urban Development.

 

“Authority”:  The Illinois Housing Development Authority.

 

“Coverage Period”:  The portion of a HAF program Eligibility Period applicable to an Eligible Homeowner.

 

“COVID-19”:  Coronavirus Disease 2019, as referenced in the State Gubernatorial Disaster Proclamations.

 

“DIA”:  An area of the State disproportionately impacted, based primarily on positive COVID-19 cases per capita and demographic calculations performed by the Department of Commerce and Economic Opportunity and the Governor’s Office of Management and Budget.  DIAs are captured via zip code.

 

“Eligible Homeowner”:  A Homeowner receiving or approved to receive HAF grant funds through an Eligible Servicer.

 

“Eligible Servicer”:  A mortgage lender/servicer, manufactured/mobile home lender/park (lot fees), county treasurer or local taxing authority, condominium/co-op/homeowners’ association that is due payments from an Eligible Homeowner.

 

“Eligibility Period”:  An Eligible Homeowner may receive up to the Maximum Grant Amount in HAF assistance for a hardship that occurred after January 21, 2020 as a result of COVID-19 and ending on the date that funds are first disbursed (plus an additional three months in prospective monthly payments if necessary to ensure housing stability, subject to the availability of funds and so long as any additional payments do not result in exceeding the Maximum Grant Amount).

 

“Eligible Uses”: As identified in Section 302.202 hereof, and as may be expanded or supplemented in future HAF programs permitted to be established by the Authority.

 

“HAF Grant”:  A grant funded by American Rescue Plan Act for Eligible Homeowners.

 

“HAF”:  Homeowner Assistance Fund as established by the American Rescue Plan Act.

 

“Home”:  A single family attached or detached property, a one to four unit property where the owner is living as their primary residence, a manufactured home permanently affixed to real property and taxed as real estate, a mobile home permanently placed on a lot in a mobile home park/lot, a condominium unit, or a cooperative apartment.

 

“Homeowner”:  a natural person (not LLP, LP, LLC or similar structure) or a living trust or other similar ownership structure created for estate planning purposes; so long as the Home is occupied as the natural person’s primary residence.

 

“Housing Stability Service” or “HSS”:  Case management and other services related to the COVID-19 outbreak, which services do not have to be related to the COVID-19 outbreak, as defined by the Secretary, including those that enable eligible households to maintain or obtain housing. Such services may include, but are not limited to, delinquency, default, foreclosure, post-foreclosure eviction of a homeowner or the loss of utility or home energy services, housing counseling, fair housing counseling, case management related to housing stability, housing related services for survivors of domestic abuse or human trafficking, legal services or attorney’s fees related to eviction or foreclosure proceedings and maintaining housing stability, and specialized services for individuals with disabilities or seniors that supports their ability to access or maintain housing, subject to the terms of the agreement executed by the HSS Provider and the Authority.

 

“HSS Education and Intake”:  (a) Conduct regularly scheduled webinars for program applicants on next steps after application is submitted; what will occur if they are approved; what will occur if they are not eligible; an overview of loss mitigation; an overview of the foreclosure process; and connection to pro bono legal and mediation resources. (b) Assist homeowners that may need help with the program application virtually, over the phone, or in-person.  (c) Follow up with clients post application should they need case management or referral services.

 

“HSS Equipment”:  Costs incurred to bolster the organization’s mobile and technology network in order to perform the services, i.e. the purchase of computer workstations, laptops, tablets, headsets related to performance of services by the HSS.

 

“HSS Marketing and Outreach”:  Perform outreach services and disseminate information about the HAF program throughout the applicant’s coverage area.

 

“HSS Provider”:  A recipient of funds from the Authority to provide HSS.

 

“HSS Sub-Award”:  An award of funds from the Authority to an HSS Provider.

 

“GATA”:  The Grant Accountability and Transparency Act [30 ILCS 708].

 

“GATU”:  The Grant Accountability and Transparency Unit within the Illinois Governor's Office of Management and Budget.

 

“Guidance”:  Guidance, including, but not limited to, “frequently asked questions” released by the U.S. Department of the Treasury or the Secretary in connection with the American Rescue Plan Act.

 

“Maximum Grant Amount”:  Up to $60,000 per Eligible Homeowner household.

 

“Secretary”:  The Secretary of the U.S. Department of the Treasury.

 

“Socially Disadvantaged individuals”: individuals are those whose ability to purchase or own a home has been impaired due to diminished access to credit on reasonable terms as compared to others in comparable economic circumstances, based on disparities in homeownership rates in the Authority’s jurisdiction as documented by the U.S. Census. The impairment must stem from circumstances beyond their control. Indicators of impairment under this definition may include being a (1) member of a group that has been subjected to racial or ethnic prejudice or cultural bias within American society, (2) resident of a majority-minority Census tract; (3) individual with limited English proficiency; (4) resident of a U.S. territory, Indian reservation, or Hawaiian Home Land, or (5) individual who lives in a persistent-poverty county, meaning any county that has had 20% or more of its population living in poverty over the past 30 years as measured by the three most recent decennial censuses. In addition, an individual may be determined to be a socially disadvantaged individual in accordance with a process developed by the Authority for determining whether a homeowner is a socially disadvantaged individual in accordance with applicable law, which may reasonably rely on self-attestations

 

(Source:  Amended at 47 Ill. Reg. 5362, effective March 28, 2023)

 

Section 302.104  Compliance with Federal and State Law

 

Notwithstanding anything in this Part to the contrary, this Part shall be construed in conformity and compliance with applicable law, including but not limited to the Uniform Guidance.

 

Section 302.105  Applications, Forms and Procedures

 

a)         The Authority may prepare, use, prescribe, supplement and amend forms, including application forms as may be necessary to implement any HAF program.

 

b)         The Authority may accept applications for any HAF program in one or more rounds of funding.

 

c)         Nothing in this Part shall be construed as precluding the Authority from capping or setting a limit on the amount of HAF program payments made on behalf of any single Eligible Homeowner.

 

Section 302.106  Fees and Charges

 

The Authority will not charge an application fee for any HAF Grants.

 

Section 302.107  Authority Administrative Expenses

 

The Authority is entitled to administrative expenses incurred with respect to the administration of HAF funds. An amount not to exceed 15 percent of the total HAF allocation to the Authority may be used for administrative costs attributable to providing financial assistance and housing stability services to Eligible Homeowners.

 

Section 302.108  Amendment

 

This Part may be supplemented, amended or repealed by the Authority from time to time and in a manner consistent with the Illinois Administrative Procedure Act [5 ILCS 100], this Part and other applicable laws.  This Part does not constitute or create any contractual rights.

 

Section 302.109  Severability

 

If any clause, sentence, paragraph, subsection, Section or Subpart of this Part is adjudged by any court of competent jurisdiction to be invalid, that judgment shall not affect, impair or invalidate the remainder of this Part, but shall be confined in its operation to the clause, sentence, paragraph, subsection, Section or Subpart to which the judgment is rendered.

 

Section 302.110  Non-Discrimination

 

a)         Unless necessary to comply with applicable federal or State law, the Authority shall not require any type of documentation relating to any household member's immigration status.

 

b)         Eligible Homeowners, Eligible Servicers and HSS Providers shall comply with the applicable provisions of the Illinois Human Rights Act [775 ILCS 5] and the regulations promulgated under that Act, the federal Fair Housing Act (42 U.S.C. 3601), Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), the Illinois Environmental Barriers Act [410 ILCS 25], the Illinois Accessibility Code (71 Ill. Adm. Code 400), and all other applicable State and federal law concerning discrimination and fair housing.

 

Section 302.111  Record Retention

 

Eligible Homeowners, Eligible Servicers and HSS Providers shall maintain copies of any records in their possession in connection with HAF for at least five years from the date of the grant.

 

Section 302.112  Monitoring

 

The Authority has the right to monitor all records of Eligible Homeowners, Eligible Servicers and HSS Providers relating to an award of funds under any HAF Program.  Eligible Homeowners, Eligible Servicers and HSS Providers shall make all records relating to any HAF program available for inspection by the Authority upon the Authority's request.

 

Section 302.113  Federal Legislation

 

Notwithstanding anything in this Part to the contrary, this Part shall be construed in conformity and compliance with the American Rescue Plan Act.  To the extent that this Part conflicts with federal law, federal law shall control and prevail.

 

Section 302.114  GATU

 

Unless different provisions are required by law or an exception is granted by GATU:

 

a)         HAF payments are considered to be federal financial assistance subject to the Single Audit Act (31 U.S.C. 7501-7507) and the related provisions of the Uniform Guidance, 2 CFR 200.303 regarding internal controls, 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements.

 

b)         HAF payments are subject to the following requirements in the Uniform Guidance (2 CFR 200): 2 CFR 200.303 regarding internal controls, 2 CFR 200.330 through 200.332 regarding subrecipient monitoring and management, and subpart F regarding audit requirements.

 

c)         The CFDA number assigned to the HAF is 21.027.

 

d)         HAF payments to subrecipients, including HSS Providers, count toward the threshold of the Single Audit Act and 2 CFR 200, subpart F re: audit requirements. Subrecipients are subject to a single audit or program specific audit pursuant to 2 CFR 200.501(a) when the subrecipients spend $750,000 or more in federal awards during their fiscal year.

 

e)         Amounts paid from the HAF are subject to the restrictions outlined in the Guidance and set forth in the American Rescue Plan Act.

 

Section 302.115  Accessibility and Transparency

 

a)         The Authority shall make publicly accessible by publishing on its website any important information, including, but not limited to, the following:

 

1)         application forms;

 

2)         the program eligibility requirements as set out in Section 302.201;

 

3)         the Authority’s procedures and processes for administering the applicable program as set out in Section 302.204;

 

4)         the Authority’s procedures and communication methods for notifying program applicants of defective or deficient applications due to incompletion, errors, missing information, or any other impediment as set out in Section 302.205; and

 

5)         the Authority’s procedures and methods for applicants to remedy defective or deficient applications due to incompletion, errors, missing information, or any other impediment as set out in Section 302.205.

 

b)         The Authority shall ensure that important program information, including the application and all marketing materials, is language accessible by publishing to its website the same in both English and Spanish. To the extent administratively feasible, the Authority will make efforts to provide certain program information, such as frequently asked questions and responses, in other languages.

 

Section 302.116  Required Notifications and Correspondence

 

The Authority shall ensure it communicates clearly with an applicant about the application determination process, including acceptance, status of a pending application, and any reason for denying an application.

 

a)         The Authority shall provide notice to an applicant upon finding that a submitted application is defective or should otherwise be considered ineligible, denied, or rejected.

 

b)         The notice from the Authority shall explain the reason why an applicant's submitted application is defective or should otherwise be considered ineligible, denied, or rejected.

 

c)         The notice shall contain the necessary information, process, accepted method, and deadline for the applicant to remedy any defective or deficient application as set out in Section 302.205, provided that remedy is possible.

 

d)         All notice and correspondence required to be provided by the Authority shall be given promptly and without unnecessary delay to any applicant.

 

Section 302.117  Recapture

 

HAF Grants, including HSS grants, are subject to recapture in the event of default, such as fraud on behalf of an Eligible Homeowner, Eligible Servicer or HSS Provider, failure to comply with this Part or any other applicable law or regulation.

SUBPART B: BORROWER ELIGIBILITY REQUIREMENTS

 

Section 302.201  Borrower Eligibility/Prioritization

 

a)         To be eligible for assistance under HAF program, Eligible Homeowners must have annual income equal to or less than 150% of the Area Median Income. The Authority plans to use HUD’s definition of “annual income” in 24 CFR 5.609 or use adjusted gross income as defined for purposes of reporting on Internal Revenue Service (IRS) Form 1040 series for individual federal annual income tax purposes, as applicable and as permitted by the U.S. Department of the Treasury.

 

b)         Not less than 60% of HAF funds available to the Authority will be used for qualified expenses that assist Eligible Homeowners having incomes equal to or less than 100% of the Area Median Income or equal to or less than 100% of the median income for the United States, whichever is greater. Any amount not made available to Eligible Homeowners that meet this income-targeting requirement must be prioritized for assistance to Socially Disadvantaged individuals, with funds remaining after such prioritization being made available for other Eligible Homeowners.

 

c)         For an applicant to be eligible to receive a HAF Grant, the Homeowner must qualify as an Eligible Homeowner.

 

d)         The Authority shall not disqualify an otherwise Eligible Homeowner from any HAF Program funding based on previous application for or receipt of other similar federal assistance for periods that are different than the Eligibility Period.

 

Section 302.202  Eligible Uses

 

The Authority will establish a system that provides assistance to Eligible Homeowners that may include any or all of the following Eligible Uses:

 

a)         mortgage payment assistance;

 

b)         financial assistance to allow a homeowner to reinstate a mortgage or to pay other housing-related costs related to a period of forbearance, delinquency, or default;

 

c)         mortgage principal reduction, including with respect to a second mortgage provided by a nonprofit or government entity;

 

d)         facilitating mortgage interest rate reductions;

 

e)         payment assistance for:

 

1)         homeowner’s utilities, including electric, gas, home energy (including firewood and home heating oil), water, and wastewater;

 

2)         homeowner’s internet service, including broadband internet access service;

 

3)         homeowner’s insurance, flood insurance, and mortgage insurance;

 

4)         homeowner’s association fees or liens, condominium association fees, or common charges, and similar costs payable under a unit occupancy agreement by a resident member/shareholder in a cooperative housing development; and

 

5)         down payment assistance loans provided by nonprofit or government entities;

 

f)         payment assistance for delinquent property taxes to prevent homeowner tax foreclosures;

 

g)         measures to prevent homeowner displacement, such as home repairs to maintain the habitability of a home, including the reasonable addition of habitable space to alleviate overcrowding, or assistance to enable households to receive clear title to their properties;

 

h)         counseling or educational efforts by housing counseling agencies approved by HUD or a tribal government, or legal services, targeted to households eligible to be served with funding from the HAF related to foreclosure prevention or displacement, in an aggregate amount up to 5% of the funding from the HAF received by the Authority;

 

i)          reimbursement of funds expended the Authority during the Eligibility Period beginning on January 21, 2020, and ending on the date that the first funds are disbursed by the Authority under the HAF, for a qualified expense (other than any qualified expense paid directly or indirectly by another federal funding source, or any qualified expenses described in subsections (f), (g), (h), or (j)); and

 

j)          planning, community engagement, needs assessment, and administrative expenses related to the Authority’s disbursement of HAF funds for qualified expenses, in an aggregate amount not to exceed 15% of the funding from the HAF received by the Authority.

 

Section 302.203  Maximum Grant Amount

 

Disbursements to Eligible Servicers may include up to three prospective monthly payments if funds are available and the total funding amount does not exceed Maximum Grant Amount.

 

Section 302.204  Administration of Program

 

The Authority will establish procedures to administer the HAF program, including application process and review that will include the following:

 

a)         applications will be taken via an online application platform; processing staff will review files for program eligibility through applicant attestations, applicant provided documents and servicer provided mortgage information;

 

b)         application controls and due diligence will include:

 

1)         verification of applicant attestations, review of application documentation to ensure eligibility, verification of data provided by Servicers and approval, denial or escalation of application files as appropriate; and

 

2)         review of application records and uploaded documents to validate compliance with the Authority’s procedures (as identified in this Part); and

 

c)         Authority staff will onboard Eligible Servicers, exchange Applicant mortgage or other relevant information, and initiate payments to Eligible Servicers.

 

Section 302.205  Procedures for Deficient Applications

 

The Authority will establish procedures to notify Applicants who submit defective or deficient applications that will include the following:

 

a)         Applicants will be notified via email of any information needed to complete an application or remedy a deficiency in their application;

 

b)         Applicants will be provided an initial cure period of 14 days and, if necessary, a second cure period of an additional 7 days;

 

c)         After being notified of a deficiency, Applicants will be able to go back into the online application portal to provide any missing information; and

 

d)         Upon final determination of approval or denial, Applicants will be notified via email.

SUBPART C: SERVICER REQUIREMENTS

 

Section 302.301 Foreclosure Moratorium

 

a)         Prior to receiving HAF Grants on behalf of an Eligible Homeowner, Eligible Servicers must agree they will forgo any right to commence or continue a foreclosure action, or other similar legal action, including but not limited to breach of contract, against an Eligible Homeowner, for non-payment of mortgage or other eligible fees, during the longer of:

 

1)         the Eligible Homeowner's program Eligibility Period; or

 

2)         the date of any foreclosure moratorium established by State or federal law. 

 

b)         This Section is not intended to limit an Eligible Servicer’s right to pursue action based on other legally permissible reasons unrelated to the payment of mortgage, fees or other financial charges.

 

Section 302.302  Distribution of Grants

 

a)         HAF Grants made by the Authority may cover all or any portion of the Eligibility Period.

 

b)         When making HAF Grant payments to an Eligible Servicer on behalf of an Eligible Homeowner, the Authority must include a statement indicating which Eligible Homeowner the grant payment is being made on behalf of.

 

c)         The Authority shall make reasonable efforts to obtain the cooperation of Eligible Servicers to accept HAF payments.

SUBPART D: HOUSING STABILITY SERVICES PROVIDERS

 

Section 302.401  Purpose

 

Subject to the terms of the agreement executed by the HSS Provider and the Authority, HSS Sub-Awards allocated to an HSS Provider are for the provision of HSS outreach and intake services, as described in this Part, and the purchase of HSS equipment.

 

Section 302.402  Request for Proposals/Applications

 

The Authority may issue one or more requests for proposals for applications for an HSS Sub-Award from prospective HSS Providers.

 

Section 302.403  HSS Provider Eligibility.

 

HSS Providers may be HUD approved counseling agencies, community or faith-based organizations, non-profit organizations, including legal assistance groups, and such other community organizations that specialize in housing or community outreach and engagement.

and such other organizations to the extent permitted by applicable law.

 

Section 302.404  Eligible Uses of an HSS Sub-Award

 

Funds from an HSS Sub-Award may be used for the following:

 

a)         HSS Marketing and Outreach;

 

b)         HSS Education and Intake; or

 

c)         HSS Equipment.

 

Section 302.405  Application Requirements

 

Each application for an HSS Sub-Award shall include the information required by the Authority to promote efficient program administration and quality of performance

 

Section 302.406  Distribution of HSS Provider Sub-Awards

 

Once approved for an HSS Sub-Award, HSS Providers will be eligible to receive an initial disbursement in an amount established by the Authority. An accounting of expenses will be required to demonstrate use of the HSS Sub-Awards provided in the initial disbursement. Additional HSS Sub-Awards disbursements will be made pursuant to the submission and approval of one or more reports required for compliance with Federal and State legislation and regulations, including without limitation the Uniform Guidance and any further Guidance.