Illinois General Assembly - Bill Status for HB5788

Amends the Illinois Housing Development Act. Provides that the Illinois Housing Development Authority shall establish and administer a foreclosure prevention counseling program and shall use moneys in the Foreclosure Prevention Counseling Fund and funds appropriated for that purpose to make grants to HUD-certified counseling agencies for home-ownership education and foreclosure prevention counseling. Amends the State Finance Act. Creates the Foreclosure Prevention Counseling Fund and provides for allocation of moneys in the Fund. Provides for the payment of license fees of $3,700 annually, including the foreclosure prevention surcharge (instead of $2,700 annually). Amends the Residential Mortgage License Act of 1987. Provides that an application for a license or a license renewal on or after July 1, 2008, shall include payment of a foreclosure prevention surcharge of $1,000. Provides that the surcharge proceeds shall be deposited into the Foreclosure Prevention Counseling Fund. Effective immediately.

Further amends the Illinois Housing Development Act, State Finance Act, and Residential Mortgage License Act of 1987 by adding provisions that provide that neither the Governor nor any agency or agency head under the jurisdiction of the Governor has any rulemaking authority under the amendatory Act, but that the Governor may suggest rules by filing them with the General Assembly and requesting that the General Assembly authorize such rulemaking by law, enact the suggested rules into law, or take other appropriate action in the General Assembly's discretion.

Provides that provisions concerning foreclosure prevention counseling program shall be repealed 3 years after the effective date of the amendatory Act. Provides that provisions concerning the Foreclosure Prevention Counseling Fund shall be repealed 3 years after the effective date of the amendatory Act. Provides that the payment of investigation and application fees, the total of which shall be in an amount equal to $3,000 (rather than $2,700), including the foreclosure prevention surcharge provided for in specified provisions; however, 3 years after the effective date of the amendatory Act of the 95th General Assembly, the total shall be in an amount equal to $2,700 annually. Provides that any application for issuance or renewal of a license for a period beginning on or after July 1, 2008, shall include payment of a foreclosure surcharge in the amount of $300. Provides that specified provisions concerning an application for issuance or renewal of a license shall be inoperative 3 years after the effective date of the amendatory Act.

Further amends the State Finance Act. Replaces new Section with provisions substantially similar to those in the bill, as amended, except for the following changes: (1) The Foreclosure Prevention Counseling Fund shall consist of all moneys deposited, transferred, or appropriated into the Fund from any legal source. (2) Subject to appropriations, the Illinois Housing Development Authority shall use the Fund in the following manner: 75% of the moneys shall be used for grants to HUD-certified counseling agencies outside Chicago for foreclosure counseling and 25% of the moneys shall be distributed to the City of Chicago to make grants to support pre-purchase and post-purchase home-ownership education and foreclosure prevention counseling. Provides that notwithstanding any other contrary law, the Fund is not subject to sweeps, administrative charges, charge-backs, or any other budgetary maneuver that would transfer any moneys in the Fund to another State fund.

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