97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1370

 

Introduced 2/8/2011, by Sen. Martin A. Sandoval

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 3805/7.32 new
735 ILCS 5/15-1504.2 new
30 ILCS 105/5.786 new

    Amends the Illinois Housing Development Act. Creates the Neighborhood Stabilization Program. Provides that the Illinois Housing Development Authority shall establish and administer the Program and use moneys in the Neighborhood Stabilization Program Fund, and any other funds appropriated for this purpose, to make grants to non-profit organizations that serve communities with high rates of residential foreclosures. Provides that the Authority shall promulgate rules, including emergency rules. Provides that subject to appropriation, the Authority shall make grants from the Neighborhood Stabilization Program Fund to approved non-profit organizations that serve communities with high rates of residential foreclosures. Defines terms. Amends the Code of Civil Procedure. Provides that for uninhabited residential real estate in foreclosure, from the time of the filing of a foreclosure complaint until the plaintiff no longer has any interest in the property, the plaintiff shall pay to the circuit clerk a fee of $1000 per month for each month that the residential real estate is not inhabited until the property is sold to a bona fide buyer who will either inhabit the premises or lease the property to a tenant for inhabitation within 90 days after the closing. Provides that fees collected shall be deposited into the Neighborhood Stabilization Fund, a special fund created in the State treasury. The clerk shall remit the fees to the State Treasurer as follows: 98% to the State Treasurer for deposit into the Neighborhood Stabilization Fund Program Fund; and 2% to the circuit clerk for administrative expenses related to this program. Provides that annually, the circuit clerk shall submit to the Authority a report of the funds collected and remitted. Amends the State Finance Act. Creates the Neighborhood Stabilization Fund. Effective immediately.


LRB097 06241 AJO 46316 b

 

 

A BILL FOR

 

SB1370LRB097 06241 AJO 46316 b

1    AN ACT concerning foreclosure.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Housing Development Act is amended
5by adding Section 7.32 as follows:
 
6    (20 ILCS 3805/7.32 new)
7    Sec. 7.32. Neighborhood Stabilization Program.
8    (a) The Authority shall establish and administer a
9Neighborhood Stabilization Program. Subject to appropriation,
10the Authority shall use moneys in the Neighborhood
11Stabilization Program Fund, and any other funds appropriated
12for this purpose, to make grants to approved non-profit
13organizations that serve communities with high rates of
14residential foreclosures. The Authority shall promulgate rules
15to implement this program and may adopt emergency rules as soon
16as practicable to begin implementation of the program.
17    As used in this Section: "Approved non-profit
18organization" means a not-for-profit entity that provides
19educational and financial information to residents of a
20community with high rates of foreclosure through in-person
21contact. "Approved non-profit organization" does not include a
22not-for-profit corporation or other entity or person that
23provides legal representation or advice in a civil proceeding

 

 

SB1370- 2 -LRB097 06241 AJO 46316 b

1or court-sponsored mediation services, or a governmental
2agency. "Approved non-profit organization that serves
3communities with high rates of residential foreclosures" means
4by an approved non-profit organization that provides in-person
5contact with residents in communities with high rates of
6residential foreclosures to provide (i) home foreclosure
7counseling, and (ii) education about the foreclosure process
8and the options of a mortgagor in a foreclosure proceeding.
 
9    Section 10. The Code of Civil Procedure is amended by
10adding Section 15-1504.2 as follows:
 
11    (735 ILCS 5/15-1504.2 new)
12    Sec. 15-1504.2. Fee for uninhabited residential real
13estate in foreclosure.
14    (a) With respect to residential real estate, from the time
15of the filing of a foreclosure complaint until the plaintiff no
16longer has any interest in the property, the plaintiff shall
17pay to the clerk of the court in which the foreclosure
18complaint is filed a fee of $1000 per month for each month, or
19fraction thereof, that the residential real estate is in
20foreclosure and is not inhabited or has not been purchased by a
21bona fide buyer who will either inhabit the premises or lease
22the property to a tenant for inhabitation within 90 days after
23the closing on the purchase of the property. Fees collected
24under this Section shall be deposited into the Neighborhood

 

 

SB1370- 3 -LRB097 06241 AJO 46316 b

1Stabilization Fund, a special fund created in the State
2treasury. The clerk shall remit the fee to the State Treasurer
3as provided in this Section. The funds in the Neighborhood
4Stabilization Fund are to be expended for the purposes set
5forth in Section 7.32 of the Illinois Housing Development Act.
6All fees paid by plaintiffs to the clerk of the court as
7provided in this Section shall be disbursed within 60 days
8after receipt by the clerk of the court as follows: (i) 98% to
9the State Treasurer for deposit into the Neighborhood
10Stabilization Fund Program Fund, and (ii) 2% to the clerk of
11the court for administrative expenses related to
12implementation of this Section.
13    (b) Not later than March 1 of each year, the clerk of the
14court shall submit to the Illinois Housing Development
15Authority a report of the funds collected and remitted pursuant
16to this Section during the preceding year.
 
17    Section 15. The State Finance Act is amended by adding
18Section 5.786 as follows:
 
19    (30 ILCS 105/5.786 new)
20    Sec. 5.786. The Neighborhood Stabilization Fund.
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.