Rep. Will Guzzardi

Filed: 3/15/2021

 

 


 

 


 
10200HB2614ham001LRB102 16892 AWJ 23286 a

1
AMENDMENT TO HOUSE BILL 2614

2    AMENDMENT NO. ______. Amend House Bill 2614 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Home Equity Assurance Act is amended by
5changing Section 11 as follows:
 
6    (65 ILCS 95/11)  (from Ch. 24, par. 1611)
7    Sec. 11. Guarantee Fund.
8    (a) Each governing commission and program created by
9referendum under the provisions of this Act shall maintain a
10guarantee fund for the purposes of paying the costs of
11administering the program and extending protection to members
12pursuant to the limitations and procedures set forth in this
13Act.
14    (b) The guarantee fund shall be raised by means of an
15annual tax levied on all residential property within the
16territory of the program having at least one, but not more than

 

 

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16 dwelling units and classified by county ordinance as
2residential. The rate of this tax may be changed from year to
3year by majority vote of the governing commission but in no
4case shall it exceed a rate of .12% of the equalized assessed
5valuation of all property in the territory of the program
6having at least one, but not more than 6 dwelling units and
7classified by county ordinance as residential, or the maximum
8tax rate approved by the voters of the territory at the
9referendum which created the program or, in the case of a
10merged program, the maximum tax rate approved by the voters at
11the referendum authorizing the merger, whichever rate is
12lower. The commissioners shall cause the amount to be raised
13by taxation in each year to be certified to the county clerk in
14the manner provided by law, and any tax so levied and certified
15shall be collected and enforced in the same manner and by the
16same officers as those taxes for the purposes of the county and
17city within which the territory of the commission is located.
18Any such tax, when collected, shall be paid over to the proper
19officer of the commission who is authorized to receive and
20receipt for such tax. The governing commission may issue tax
21anticipation warrants against the taxes to be assessed for the
22calendar year in which the program is created and for the first
23full calendar year after the creation of the program.
24    (c) The moneys deposited in the guarantee fund shall, as
25nearly as practicable, be fully and continuously invested or
26reinvested by the governing commission in investment

 

 

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1obligations which shall be in such amounts, and shall mature
2at such times, that the maturity or date of redemption at the
3option of the holder of such investment obligations shall
4coincide, as nearly as practicable, with the times at which
5monies will be required for the purposes of the program. For
6the purposes of this Section investment obligation shall mean
7direct general municipal, state, or federal obligations which
8at the time are legal investments under the laws of this State
9and the payment of principal of and interest on which are
10unconditionally guaranteed by the governing body issuing them.
11    (d) Except as permitted by this subsection and subsection
12(d-5), the guarantee fund shall be used solely and exclusively
13for the purpose of providing guarantees to members of the
14particular Guaranteed Home Equity Program and for reasonable
15salaries, expenses, bills, and fees incurred in administering
16the program, and shall be used for no other purpose.
17    A governing commission, with no less than $4,000,000 in
18its guarantee fund, may, if authorized (i) by referendum duly
19adopted by a majority of the voters or (ii) by resolution of
20the governing commission upon approval by two-thirds of the
21commissioners, establish a Low Interest Home Improvement Loan
22Program in accordance with and subject to procedures
23established by a financial institution, as defined in the
24Illinois Banking Act. Whenever the question of creating a Low
25Interest Home Improvement Loan Program is initiated by
26resolution or ordinance of the corporate authorities of the

 

 

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1municipality or by a petition signed by not less than 10% of
2the total number of registered voters of each precinct in the
3territory, the registered voters of which are eligible to sign
4the petition, it shall be the duty of the election authority
5having jurisdiction over the municipality to submit the
6question of creating the program to the electors of each
7precinct within the territory at the regular election
8specified in the resolution, ordinance, or petition initiating
9the question. A petition initiating a question described in
10this subsection shall be filed with the election authority
11having jurisdiction over the municipality. The petition shall
12be filed and objections to the petition shall be made in the
13manner provided in the Election Code. A resolution, ordinance,
14or petition initiating a question described in this subsection
15shall specify the election at which the question is to be
16submitted. The referendum on the question shall be held in
17accordance with the Election Code. The question shall be in
18substantially the following form:
19        "Shall the (name of the home equity program) implement
20    a Low Interest Home Improvement Loan Program with money
21    from the guarantee fund of the established guaranteed home
22    equity program?"
23The votes must be recorded as "Yes" or "No".
24    Whenever a majority of the voters on the public question
25approve the creation of the program as certified by the proper
26election authorities or a resolution of the governing

 

 

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

 

 

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

 

 

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

 

 

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1        (3) The loan must be used to assist with preventing
2    foreclosure proceedings.
3        (4) An eligible applicant may not borrow more than the
4    amount of equity value in his or her residence.
5        (5) A commission must ensure that loans issued are
6    secured as a second lien on the property.
7        (6) A commission shall charge an interest rate which
8    it determines to be below the market rate of interest
9    generally available to the applicant.
10        (7) A commission may, by resolution, establish other
11    administrative rules and procedures as are necessary to
12    implement this program including, but not limited to,
13    eligibility requirements for eligible applicants, loan
14    dollar amounts, and loan terms.
15        (8) A commission may also impose on loan applicants a
16    one-time application fee for the purpose of defraying the
17    costs of administering the program.
18    (d-10) A governing commission, with no less than
19$4,000,000 in its guarantee fund, may, if authorized (i) by
20referendum approved by a majority of the voters or (ii) by
21resolution of the governing commission upon approval by
22two-thirds of the commissioners, establish a Delinquent Tax
23Repayment Loan Fund to provide low-interest emergency loans to
24eligible applicants.
25    If the question of creating a Delinquent Tax Repayment
26Loan Fund is initiated by resolution or ordinance of the

 

 

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1corporate authorities of the municipality or by a petition
2signed by not less than 10% of the total number of registered
3voters of each precinct in the territory, the registered
4voters of which are eligible to sign the petition, it shall be
5the duty of the election authority having jurisdiction over
6the municipality to submit the question of creating the
7program to the electors of each precinct within the territory
8at the regular election specified in the resolution,
9ordinance, or petition initiating the question. A resolution,
10ordinance, or petition initiating a question described in this
11subsection shall be filed with the election authority having
12jurisdiction over the municipality. The resolution, ordinance,
13or petition shall be filed and objections to the resolution,
14ordinance, or petition shall be made in the manner provided in
15the Election Code. A resolution, ordinance, or petition
16initiating a question described in this subsection shall
17specify the election at which the question is to be submitted.
18The referendum on the question shall be held in accordance
19with the Election Code. The question shall be in substantially
20the following form:
21        "Shall the (name of the home equity program) implement
22    a Delinquent Tax Repayment Loan Fund with money from the
23    guarantee fund of the established guaranteed home equity
24    program?"
25        The votes must be recorded as "Yes" or "No".
26    If a majority of the voters on the question approve the

 

 

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1creation of a Delinquent Tax Repayment Loan Fund as certified
2by the proper election authorities or two-thirds of the
3commissioners, by resolution, approve the creation of a
4Delinquent Tax Repayment Loan Fund, the commission shall
5establish the program and administer the program with funds
6collected under the program, subject to the following
7conditions:
8        (1) At any given time, the cumulative total of all
9    loans and loan guarantees (if applicable) issued under
10    this program may not exceed $3,000,000.
11        (2) Only eligible applicants may apply for a loan. The
12    Commission may establish, by resolution, additional
13    criteria for eligibility.
14        (3) The loan must be used to assist with repayment of
15    delinquent property taxes and for those facing imminent
16    delinquency.
17        (4) An eligible applicant may not borrow more than the
18    amount due to the treasurer's office.
19        (5) A commission shall charge an interest rate which
20    it determines to be below the market rate of interest
21    generally available to the applicant.
22        (6) A commission may, by resolution, establish other
23    administrative rules and procedures as are necessary to
24    implement this program including, but not limited to,
25    eligibility requirements for eligible applicants, loan
26    dollar amounts, and loan terms.

 

 

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1        (7) Where practicable, it shall be required that a
2    borrower obtain free housing counseling services prior to
3    applying to this tax program for the purpose of assisting
4    with budgeting and providing a recommendation as to
5    whether this client is suited for this program.
6        (8) A commission may also impose on loan applicants a
7    one-time application fee for the purpose of defraying the
8    costs of administering the program.
9    (e) The guarantee fund shall be maintained, invested, and
10expended exclusively by the governing commission of the
11program for whose purposes it was created. Under no
12circumstance shall the guarantee fund be used by any person or
13persons, governmental body, or public or private agency or
14concern other than the governing commission of the program for
15whose purposes it was created. Under no circumstances shall
16the guarantee fund be commingled with other funds or
17investments.
18    (e-1) No commissioner or family member of a commissioner,
19or employee or family member of an employee, may receive any
20financial benefit, either directly or indirectly, from the
21guarantee fund. Nothing in this subsection (e-1) shall be
22construed to prohibit payment of expenses to a commissioner in
23accordance with Section 4 or payment of salaries or expenses
24to an employee in accordance with this Section.
25    As used in this subsection (e-1), "family member" means a
26spouse, child, stepchild, parent, brother, or sister of a

 

 

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1commissioner or a child, stepchild, parent, brother, or sister
2of a commissioner's spouse.
3    (f) An independent audit of the guarantee fund and the
4management of the program shall be conducted annually and made
5available to the public through any office of the governing
6commission or a public facility such as a local public library
7located within the territory of the program.
8(Source: P.A. 98-1160, eff. 6-1-15; 99-37, eff. 1-1-16.)".