Full Text of HB1227 100th General Assembly
HB1227ham002 100TH GENERAL ASSEMBLY | Rep. Christian L. Mitchell Filed: 7/1/2017
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| 1 | | AMENDMENT TO HOUSE BILL 1227
| 2 | | AMENDMENT NO. ______. Amend House Bill 1227 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The State Finance Act is amended by adding | 5 | | Sections 5.878 and 6z-102 as follows: | 6 | | (30 ILCS 105/5.878 new) | 7 | | Sec. 5.878. The Illinois Community Stabilization Program | 8 | | Revolving Fund. | 9 | | (30 ILCS 105/6z-102 new) | 10 | | Sec. 6z-102. The Illinois Community Stabilization Program | 11 | | Revolving Fund; creation. The Illinois Community Stabilization | 12 | | Program Revolving Fund is created as a special fund in the | 13 | | State treasury. Moneys in the Fund shall be used by the | 14 | | Illinois Housing Development Authority, subject to | 15 | | appropriation, for the purpose of making zero-interest loans to |
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| 1 | | municipalities that operate home equity programs within their | 2 | | boundaries. Loan funds shall be used for the purpose of | 3 | | operating those programs. The Fund shall consist of any moneys | 4 | | transferred or appropriated into the Fund, as well as all | 5 | | repayments of loans made under the program. All interest earned | 6 | | on moneys in the Fund shall be deposited into the Fund. | 7 | | Section 10. The State Revenue Sharing Act is amended by | 8 | | changing Section 3 as follows:
| 9 | | (30 ILCS 115/3) (from Ch. 85, par. 613)
| 10 | | Sec. 3. Use of Fund. | 11 | | (a) The amounts allocated and paid to the municipalities
| 12 | | and counties of this State pursuant to the provisions of this | 13 | | Act shall be
used solely for the general welfare of the people | 14 | | of the State of Illinois,
including financial assistance to | 15 | | school districts, any part of which lie
within the municipality | 16 | | or county, through unrestricted block grants for
school | 17 | | purposes carried out within the municipality or county making | 18 | | the
grant, and also including, but not limited to, mental | 19 | | health programs,
wastewater projects, road and bridge | 20 | | construction and repair and social
service programs. | 21 | | (b) A municipality may use up to 2% of the net revenue of | 22 | | their Local Government Distributive Fund portion to fund home | 23 | | equity programs within the municipality's boundaries.
| 24 | | (Source: P.A. 86-18.)
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| 1 | | Section 15. The Home Equity Assurance Act is amended by | 2 | | changing Sections 2, 3, 4, 4.2, 11, and 20 as follows:
| 3 | | (65 ILCS 95/2) (from Ch. 24, par. 1602)
| 4 | | Sec. 2. Purpose. The purpose of a Home Equity Program and
| 5 | | commission created under the provisions of this Act by the | 6 | | voters of a
territory within a municipality with a population | 7 | | of more than 1,000,000
or an eligible municipality shall be to | 8 | | guarantee that the
value of the property of each member of the | 9 | | program shall not fall below its
fair market value established | 10 | | at the time the member registers in a
program, provided that | 11 | | the member remains in the program for at least 5
years, keeps | 12 | | the property well maintained, continuously occupies the
| 13 | | property as his or her principal residence, or a family member | 14 | | continuously
occupies the property as a principal residence, | 15 | | and
adheres to the guidelines of a program. By providing such a | 16 | | guarantee, a
program is intended to provide relief only from | 17 | | specifically local adverse
housing market conditions within | 18 | | the territory of the program as they may
differ from | 19 | | municipal-wide, regional, or national housing conditions. A
| 20 | | program is not intended to provide relief from physical perils | 21 | | such as
natural disasters or acts of God or from depreciation | 22 | | due to failure to
maintain a residence. Furthermore, a program | 23 | | is not intended to provide,
serve as, or replace homeowner's | 24 | | insurance or other conventional forms of insurance.
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| 1 | | (Source: P.A. 85-1044.)
| 2 | | (65 ILCS 95/3) (from Ch. 24, par. 1603)
| 3 | | Sec. 3. Definitions. For the purposes of this Act:
| 4 | | (a) "Bona fide offer" means an offer made in good faith and | 5 | | for a
valuable consideration to purchase a qualified residence | 6 | | at a price that in the opinion of the governing commission is | 7 | | reasonable given current market conditions.
| 8 | | (b) "Certificate of participation" means the duly | 9 | | notarized document of
membership in a program, signed by the | 10 | | qualified applicant and by an
authorized representative of the | 11 | | governing commission, which specifies the
location and | 12 | | description of the guaranteed residence, its guaranteed value,
| 13 | | the registration date, and which has attached a program | 14 | | appraisal for
the guaranteed residence.
| 15 | | (c) "Community organization" means a not-for-profit | 16 | | organization which
has been registered with this State for at | 17 | | least 5 years as a
not-for-profit organization, which qualifies | 18 | | for tax exempt status
under Section 501 (c) (3) or 501
(c) (4) | 19 | | of the United States Internal Revenue Code of 1986, as now or
| 20 | | hereafter amended, which continuously maintains an office or | 21 | | business
location within the territory of a program together | 22 | | with a current listed
telephone number, and whose members | 23 | | reside within the territory of a program.
| 24 | | (d) "Eligible applicant" means a natural person who is the | 25 | | owner of a
qualified residence within the territory of a |
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| 1 | | program who continuously
occupies or has a family member who | 2 | | occupies such qualified residence as
the principal place of | 3 | | residence.
| 4 | | (d-5) "Eligible municipality" means a municipality with | 5 | | 1,000,000 or fewer inhabitants that has (i) an annual average | 6 | | unemployment rate of at least 120% of the State's annual | 7 | | average unemployment rate for the most recent calendar year or | 8 | | the most recent fiscal year as reported by the Department of | 9 | | Employment Security, (ii) a poverty rate of at least 20% | 10 | | according to the latest federal decennial census, or (iii) a | 11 | | census tract crime rate higher than the State average. | 12 | | (e) "Family member" means a spouse, child, stepchild, | 13 | | parent,
grandparent, brother, sister, or any such relations of | 14 | | the
spouse of the member.
| 15 | | (f) "Governing commission" means the 9 member (or 18 member | 16 | | in the
case of a merged program) governing body which is | 17 | | authorized by voter
approval of the creation of a home equity | 18 | | program (or merger of programs) as
provided in this Act and | 19 | | which is appointed by the mayor of the
municipality in which | 20 | | the program has been approved with the approval of
the city | 21 | | council, 7 (or 14 in the case of a merged program) of whom | 22 | | shall be
appointed from a list or lists of nominees submitted | 23 | | by a community
organization or community organizations as | 24 | | defined in this Act.
| 25 | | (g) "Gross selling value" means the total consideration to | 26 | | be paid for
the purchase of a guaranteed residence, and shall |
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| 1 | | include
any amount that the buyer or prospective buyer agrees | 2 | | to assume on behalf
of a member, including broker commissions, | 3 | | points, legal fees,
personal financing, or other items of value | 4 | | involved in the sale.
| 5 | | (h) "Guarantee fund" means the funds collected under the | 6 | | provisions of
this Act for the purpose of guaranteeing the | 7 | | property values of members
within the territory of a program.
| 8 | | (i) "Guaranteed residence" means a qualified residence for | 9 | | which a
certificate of participation has been issued, which is | 10 | | occupied
continuously as the place of legal residence by the | 11 | | member or a family
member, which is described in the | 12 | | certificate of participation, and which
is entitled to coverage | 13 | | under this Act.
| 14 | | (j) "Guaranteed value" means the appraised valuation based | 15 | | upon a
standard of current fair market value as of the | 16 | | registration date on the
qualified residence as determined by a | 17 | | program appraiser pursuant to
accepted professional appraisal | 18 | | standards and which is authorized by the
commission for the | 19 | | registration date. The guaranteed value shall be used
solely by | 20 | | the commission for the purpose of administering the program and
| 21 | | shall remain confidential.
| 22 | | (k) "Member" means the owner of a guaranteed residence.
| 23 | | (l) "Owner" means a natural person who is the legal
| 24 | | titleholder or who is the
beneficiary of a trust which is the | 25 | | legal titleholder.
| 26 | | (m) "Physical perils" means physical occurrences such as, |
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| 1 | | but not limited
to, fire, windstorm, hail, nuclear explosion or | 2 | | seepage, war,
insurrection, wear and tear, cracking, settling, | 3 | | vermin,
rodents, insects, vandalism, pollution or | 4 | | contamination, and all such
related occurrences or acts of God.
| 5 | | (n) "Program" means the guaranteed home equity program | 6 | | governed by a
specific home equity commission.
| 7 | | (o) "Program appraisal" means a real estate appraisal | 8 | | conducted by a
program appraiser for the purpose of | 9 | | establishing the guaranteed value of a
qualified residence | 10 | | under a program and providing a general description of
the | 11 | | qualified residence. The program appraisal shall be used solely | 12 | | by the
governing commission for the purpose of administering | 13 | | the program and shall
remain confidential.
| 14 | | (p) "Program appraiser" means a real estate appraiser who | 15 | | meets the
professional standards established by the American | 16 | | Institute of Real
Estate Appraisers (AIREA), the National | 17 | | Association of Independent Fee
Appraisers (NAIFA), the | 18 | | National Society of Real Estate Appraisers (NSREA)
or the | 19 | | American Society of Appraisers (ASA) and
whose name is | 20 | | submitted to the governing
commission by the appraiser to | 21 | | conduct program appraisals
under the provisions of a program.
| 22 | | (q) "Program guidelines" means those policies, rules, | 23 | | regulations, and
bylaws established from time to time by the | 24 | | governing commission to
explain, clarify, or modify the program | 25 | | in order to fulfill its goals
and objectives.
| 26 | | (r) "Qualified residence" means a building: (1) located in |
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| 1 | | the
territory of a program having at least one, but not more | 2 | | than 6, dwelling
units; (2) classified by county ordinance as | 3 | | residential and assessed for
property tax purposes; and (3) | 4 | | with at least one dwelling unit continuously
occupied as the | 5 | | principal legal residence of a member or family member.
| 6 | | (s) "Registration date" means the date of receipt by the | 7 | | governing
commission of the registration fee and a completed
| 8 | | application of a qualified applicant for participation in a | 9 | | program.
| 10 | | (t) "Registration fee" means the fee which is established
| 11 | | by the governing commission to defray the cost of a program | 12 | | appraisal on a
qualified residence.
| 13 | | (Source: P.A. 95-1047, eff. 4-6-09.)
| 14 | | (65 ILCS 95/4) (from Ch. 24, par. 1604)
| 15 | | Sec. 4. Creation of Commission. | 16 | | (a) Whenever in a municipality with
more than 1,000,000 | 17 | | inhabitants or an eligible municipality , the question of | 18 | | creating a home equity
program within a contiguous territory | 19 | | included entirely within
the municipality is initiated by | 20 | | resolution or ordinance
of the corporate authorities of the | 21 | | municipality or by a petition
signed by not less than 10% of | 22 | | the total number of registered voters of
each precinct in the | 23 | | territory, the registered voters of
which are eligible to sign | 24 | | the petition, it shall be
the duty of the election authority | 25 | | having jurisdiction over such
municipality to submit the |
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| 1 | | question of creating a home equity program to
the electors of | 2 | | each precinct within
the territory at the regular election | 3 | | specified in the resolution,
ordinance or petition initiating | 4 | | the question. If the question is
initiated by petition and if | 5 | | the requisite number of signatures is not
obtained in any | 6 | | precinct included within the territory described in the
| 7 | | petition, then the petition shall be valid as to the territory | 8 | | encompassed by those
precincts for which the requisite number | 9 | | of signatures is obtained and any
such precinct for which the | 10 | | requisite number of signatures is not obtained
shall be | 11 | | excluded from the territory. A petition initiating a
question | 12 | | described in this Section shall be filed with the election
| 13 | | authority having jurisdiction over the municipality. The | 14 | | petition
shall be filed and objections thereto shall be made in | 15 | | the manner provided
in the general election law. A resolution, | 16 | | ordinance, or petition
initiating a question described in this | 17 | | Section shall specify the election
at which the question is to | 18 | | be submitted. The referendum on such question
shall be held in | 19 | | accordance with general election law. Such
question, and the | 20 | | resolution, ordinance, or petition initiating the
question, | 21 | | shall include a description of the territory, the name of the
| 22 | | proposed home equity program, and the maximum rate at which the | 23 | | home
equity program shall be able to levy a property tax. All
| 24 | | of that area within the geographic boundaries of the territory | 25 | | described in
such question shall be included in the program, | 26 | | and no area outside the
geographic boundaries of the territory |
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| 1 | | described in such question shall be
included in the program. If | 2 | | the election authority determines that the
description cannot | 3 | | be included within the space limitations of the ballot,
the | 4 | | election authority shall prepare large printed copies of a | 5 | | notice of
the question, which shall be prominently displayed in | 6 | | the polling place of
each precinct in which the question is to | 7 | | be submitted.
| 8 | | Notwithstanding any other provision of law, on and after | 9 | | the effective date of this amendatory Act of the 100th General | 10 | | Assembly, a home equity program may also be created in an | 11 | | eligible municipality. | 12 | | (b) Whenever a majority of the voters on such public | 13 | | question approve the
creation of a home equity program as | 14 | | certified by the proper election
authorities, the mayor of the | 15 | | municipality shall appoint, with the consent
of the corporate | 16 | | authorities, 9 individuals, to be known as commissioners,
to | 17 | | serve as the governing body of the home equity program. The | 18 | | mayor
shall choose 7 of the 9 individuals to be appointed to | 19 | | the governing
commission from nominees submitted by a community | 20 | | organization or community
organizations as defined in this Act. | 21 | | A community organization may
recommend up to 20 individuals to | 22 | | serve on a governing commission.
| 23 | | No fewer than 5 commissioners serving at any one time shall | 24 | | reside
within the territory of the program.
| 25 | | Upon creation of a governing commission, the terms of the | 26 | | initial
commissioners shall be as follows: 3 shall serve
for |
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| 1 | | one year, 3 shall serve for 2 years, and 3 shall serve for 3
| 2 | | years and until a successor is appointed and qualified. All
| 3 | | succeeding terms shall be for 3 years, or until a successor is | 4 | | appointed
or qualified.
Commissioners shall serve without | 5 | | compensation except for reimbursement for
reasonable expenses | 6 | | incurred in the performance of duties as a
commissioner. A | 7 | | vacancy in the office of a member of a commission shall be
| 8 | | filled in like manner as an original appointment.
| 9 | | All proceedings and meetings of the governing commission | 10 | | shall be
conducted in accordance with the provisions of the | 11 | | Open Meetings Act,
as now or hereafter amended.
| 12 | | (Source: P.A. 93-709, eff. 7-9-04.)
| 13 | | (65 ILCS 95/4.2) (from Ch. 24, par. 1604.2)
| 14 | | Sec. 4.2. Merger of Programs. | 15 | | (a) Whenever in a municipality with
more than 1,000,000 | 16 | | inhabitants or an eligible municipality , the question of | 17 | | merging 2 existing and
contiguous home equity programs within | 18 | | the municipality is initiated by
resolution or ordinance of the | 19 | | governing commissions of both programs
proposed to be merged or | 20 | | by a petition signed by not less than 10% of the
total number | 21 | | of registered voters of each program proposed to be merged,
the | 22 | | registered voters of which are eligible to sign the petition, | 23 | | it shall
be the duty of the election authority having | 24 | | jurisdiction over such
municipality to submit the question of | 25 | | merging the programs to the electors
of each program at the |
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| 1 | | regular election specified in the resolution,
ordinance or | 2 | | petition initiating the question. A petition initiating a
| 3 | | question described in this Section shall be filed with the | 4 | | election
authority having jurisdiction over the municipality. | 5 | | The petition
shall be filed and objections thereto shall be | 6 | | made in the manner provided
in the general election law. A | 7 | | resolution, ordinance, or petition
initiating a question | 8 | | described in this Section shall specify the election
at which | 9 | | the question is to be submitted. The referendum on such | 10 | | question
shall be held in accordance with general election law. | 11 | | Such question, and
the resolution, ordinance, or petition | 12 | | initiating the question, shall
include a description of the | 13 | | territory of the 2 programs, the name of the
proposed merged | 14 | | home equity program, and the maximum rate at which the
merged | 15 | | home equity program shall be able to levy a property tax. All | 16 | | of
that area within the geographic boundaries of the territory | 17 | | of the 2
programs described in such question shall be included | 18 | | in the merged
program, and no area outside the geographic | 19 | | boundaries of the territory of
the 2 programs described in such | 20 | | question shall be included in the merged
program. If the | 21 | | election authority determines that the description cannot
be | 22 | | included within the space limitations of the ballot, the | 23 | | election
authority shall prepare large printed copies of a | 24 | | notice of the question,
which shall be prominently displayed in | 25 | | the polling place of each precinct
in which the question is to | 26 | | be submitted.
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| 1 | | (b) Whenever a majority of the voters on such public | 2 | | question in each
existing program approve the merger of home | 3 | | equity programs as certified by
the proper election | 4 | | authorities, the 9 commissioners of each of the merged
programs | 5 | | shall serve as the 18 member governing body of the merged home | 6 | | equity program.
| 7 | | No fewer than 10 commissioners serving at any one time | 8 | | shall reside
within the territory of the merged program.
| 9 | | Upon creation of a merged program, a commissioner shall | 10 | | serve for the
term for which he or she was appointed and until | 11 | | a successor is appointed
and qualified. All succeeding terms | 12 | | shall be for 3 years, or until a
successor is appointed and | 13 | | qualified, and no commissioner may serve more
than 2 | 14 | | consecutive terms. Commissioners shall serve without | 15 | | compensation
except for reimbursement for reasonable expenses | 16 | | incurred in the
performance of duties as a commissioner. A | 17 | | vacancy in the office of a
member of the commission shall be | 18 | | filled in like manner as an original appointment.
| 19 | | All proceedings and meetings of the governing commission | 20 | | shall be
conducted in accordance with the provisions of the | 21 | | Open Meetings Act,
as now or hereafter amended.
| 22 | | Upon creation of a merged program, the members of each of | 23 | | the 2 programs
merged into the merged program shall be members | 24 | | of the merged program, the
guarantee funds of each shall be | 25 | | merged, and they shall be operated as a
single program.
| 26 | | (Source: P.A. 86-684.)
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| 1 | | (65 ILCS 95/11) (from Ch. 24, par. 1611)
| 2 | | Sec. 11. Guarantee Fund.
| 3 | | (a) Each governing commission and program
created by | 4 | | referendum under the provisions of this Act shall maintain a
| 5 | | guarantee fund for the purposes of paying the costs of | 6 | | administering the
program and extending protection to members | 7 | | pursuant to the limitations and
procedures set forth in this | 8 | | Act.
| 9 | | (b) The guarantee fund shall be raised by means of an | 10 | | annual tax levied
on all residential property within the | 11 | | territory of the program having at
least one, but not more than | 12 | | 6 dwelling units and classified by county
ordinance as | 13 | | residential. The rate of this tax may be changed from year to
| 14 | | year by majority vote of the governing commission but in no | 15 | | case shall it
exceed a rate of 0.155% in an eligible | 16 | | municipality or 0.12% in a municipality with a population of | 17 | | more than 1,000,000 .12% of the equalized assessed valuation of | 18 | | all property
in the territory of the program having at least | 19 | | one, but not
more than 6 dwelling units and classified by | 20 | | county ordinance as
residential, or the maximum tax rate | 21 | | approved by the voters of the
territory at the referendum which | 22 | | created the program
or, in the case of a merged program, the | 23 | | maximum tax rate approved by
the voters at the referendum | 24 | | authorizing the merger, whichever rate is
lower. The | 25 | | commissioners shall cause the amount to be
raised by taxation |
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| 1 | | in each year to be certified to the county clerk in the
manner | 2 | | provided by law, and any tax so levied and certified shall be
| 3 | | collected and enforced in the same manner and by the same | 4 | | officers as those
taxes for the purposes of the county and city | 5 | | within which the territory of
the commission is located. Any | 6 | | such tax, when collected, shall be paid
over to the proper | 7 | | officer of the commission who is authorized to receive
and | 8 | | receipt for such tax. The governing commission may issue tax
| 9 | | anticipation warrants against the taxes to be assessed for the | 10 | | calendar
year in which the program is created and for the first | 11 | | full calendar year
after the creation of the program.
| 12 | | (c) The moneys deposited in the guarantee fund shall, as | 13 | | nearly as
practicable, be fully and continuously invested or | 14 | | reinvested by the
governing commission in investment | 15 | | obligations which shall be in such
amounts, and shall mature at | 16 | | such times, that the maturity or date of
redemption at the | 17 | | option of the holder of such investment obligations shall
| 18 | | coincide, as nearly as practicable, with the times at which | 19 | | monies will be
required for the purposes of the program. For | 20 | | the purposes of this
Section investment obligation shall mean | 21 | | direct general municipal, state,
or federal obligations which | 22 | | at the time are legal investments under the
laws of this State | 23 | | and the payment of principal of and interest on which
are | 24 | | unconditionally guaranteed by the governing body issuing them.
| 25 | | (d) Except as permitted by this subsection and subsection | 26 | | (d-5),
the guarantee fund shall be used solely and exclusively |
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| 1 | | for the
purpose of providing guarantees to members of the | 2 | | particular Guaranteed
Home Equity Program and for reasonable | 3 | | salaries, expenses, bills,
and fees incurred in administering | 4 | | the program, and shall be used for no other
purpose.
| 5 | | An eligible municipality with a home equity program shall | 6 | | have no less than $1,000,000 in its guarantee fund. A governing | 7 | | commission, with no less than $1,000,000 if located in an | 8 | | eligible municipality or $4,000,000 if located in a | 9 | | municipality with a population of more than 1,000,000 in its | 10 | | guarantee
fund,
may, if authorized (i) by referendum duly | 11 | | adopted by a majority of the voters or (ii) by resolution of | 12 | | the governing commission upon approval by two-thirds of the | 13 | | commissioners,
establish a Low
Interest
Home Improvement Loan | 14 | | Program in accordance with and subject to procedures
| 15 | | established by a financial institution, as defined in the | 16 | | Illinois Banking Act.
Whenever
the question of creating a Low | 17 | | Interest Home Improvement Loan Program is
initiated by
| 18 | | resolution or ordinance of the corporate authorities of the | 19 | | municipality or by
a petition
signed by not less than 10% of | 20 | | the total number of registered voters of each
precinct in
the | 21 | | territory, the registered voters of which are eligible to sign | 22 | | the
petition, it shall be the
duty of the election authority | 23 | | having jurisdiction over the municipality to
submit the
| 24 | | question of creating the program to the electors of each | 25 | | precinct within the
territory at
the regular election specified | 26 | | in the resolution, ordinance, or petition
initiating the
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| 1 | | question. A petition initiating a question described in this | 2 | | subsection shall
be filed with
the election authority having | 3 | | jurisdiction over the municipality. The petition
shall be filed
| 4 | | and objections to the petition shall be made in the manner | 5 | | provided in the
Election Code.
A resolution, ordinance, or | 6 | | petition initiating a question described in this
subsection | 7 | | shall
specify the election at which the question is to be | 8 | | submitted. The referendum
on the
question shall be held in | 9 | | accordance with the Election Code. The question
shall be in | 10 | | substantially the
following form:
| 11 | | "Shall the (name of the home equity program) implement | 12 | | a Low Interest Home
Improvement Loan Program with money | 13 | | from the guarantee fund of the established
guaranteed home | 14 | | equity program?"
| 15 | | The votes must be recorded as "Yes" or "No".
| 16 | | Whenever a majority of the voters on the public question | 17 | | approve the
creation of
the program as certified by the proper | 18 | | election authorities or a resolution of the governing | 19 | | commission is approved by a two-thirds majority, the commission
| 20 | | shall
establish the program and administer the program with | 21 | | funds collected under the
Guaranteed Home Equity
Program, | 22 | | subject to the following conditions:
| 23 | | (1) At any given time, the cumulative total of all | 24 | | loans and loan
guarantees
(if applicable) issued under this | 25 | | program may not reduce the balance of the
guarantee
fund to | 26 | | less than $3,000,000.
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| 1 | | (2) Only eligible applicants may apply for a
loan.
| 2 | | (3) The loan must be used for the repair, maintenance, | 3 | | remodeling,
alteration, or improvement of a guaranteed | 4 | | residence. This condition is intended to include the repair | 5 | | or maintenance of a guaranteed residence's water and sewer | 6 | | pipes and repair of a guaranteed residence, including but | 7 | | not limited to basement repairs, following flooding damage | 8 | | to the property. This condition is not
intended to exclude | 9 | | the repair, maintenance, remodeling, alteration, or
| 10 | | improvement of a guaranteed residence's landscape. This | 11 | | condition is intended
to exclude the demolition of a | 12 | | current residence. This condition is also
intended to | 13 | | exclude
the construction of a new residence.
| 14 | | (4) An eligible applicant may not borrow more than the | 15 | | amount of equity
value in his or her residence.
| 16 | | (5) A commission must ensure that loans issued are | 17 | | secured with
collateral that is at least equal to the | 18 | | amount of the loan or loan guarantee.
| 19 | | (6) A commission shall charge an interest rate which it | 20 | | determines to be
below the market rate of interest | 21 | | generally available to the applicant.
| 22 | | (7) 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, loan | 25 | | dollar amounts and terms. A commission may also impose
on | 26 | | loan applicants a one-time application fee for the purpose |
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| 1 | | of defraying the
costs of administering the program.
| 2 | | (d-5) A governing commission, with no less than $4,000,000 | 3 | | in its guarantee fund, may, if authorized by referendum duly | 4 | | adopted by a majority of the voters, establish a Foreclosure | 5 | | Prevention Loan Fund to provide low interest emergency loans to | 6 | | eligible applicants that may be forced into foreclosure | 7 | | proceedings. | 8 | | Whenever the question of creating a Foreclosure Prevention | 9 | | Loan Fund is initiated by resolution or ordinance of the | 10 | | corporate authorities of the municipality or by a petition | 11 | | signed by not less than 10% of the total number of registered | 12 | | voters of each precinct in the territory, the registered voters | 13 | | of which are eligible to sign the petition, it shall be the | 14 | | duty of the election authority having jurisdiction over the | 15 | | municipality to submit the question of creating the program to | 16 | | the electors of each precinct within the territory at the | 17 | | regular election specified in the resolution, ordinance, or | 18 | | petition initiating the question. A petition initiating a | 19 | | question described in this subsection shall be filed with the | 20 | | election authority having jurisdiction over the municipality. | 21 | | The petition shall be filed and objections to the petition | 22 | | shall be made in the manner provided in the Election Code. A | 23 | | resolution, ordinance, or petition initiating a question | 24 | | described in this subsection shall specify the election at | 25 | | which the question is to be submitted. The referendum on the | 26 | | question shall be held in accordance with the Election Code. |
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| 1 | | The question shall be in substantially the following form: | 2 | | "Shall the (name of the home equity program) implement a | 3 | | Foreclosure Prevention Loan Fund with money from the guarantee | 4 | | fund of the established guaranteed home equity program?" | 5 | | The votes must be recorded as "Yes" or "No". | 6 | | Whenever a majority of the voters on the public question | 7 | | approve the creation of a Foreclosure Prevention Loan Fund as | 8 | | certified by the proper election authorities, the commission | 9 | | shall establish the program and administer the program with | 10 | | funds collected under the Guaranteed Home Equity Program, | 11 | | subject to the following conditions: | 12 | | (1) At any given time, the cumulative total of all | 13 | | loans and loan guarantees (if applicable) issued under this | 14 | | program may not exceed $3,000,000. | 15 | | (2) Only eligible applicants may apply for a loan. The | 16 | | Commission may establish, by resolution, additional | 17 | | criteria for eligibility. | 18 | | (3) The loan must be used to assist with preventing | 19 | | foreclosure proceedings. | 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 as a second lien on the property. | 24 | | (6) A commission shall charge an interest rate which it | 25 | | determines to be below the market rate of interest | 26 | | generally available to the applicant. |
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| 1 | | (7) A commission may, by resolution, establish other | 2 | | administrative rules and procedures as are necessary to | 3 | | implement this program including, but not limited to, | 4 | | eligibility requirements for eligible applicants, loan | 5 | | dollar amounts, and loan terms. | 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 | 10 | | expended
exclusively by the governing commission of the program | 11 | | for whose purposes
it was created. Under no circumstance shall | 12 | | the guarantee fund be used by
any person or persons, | 13 | | governmental body, or public or private agency or
concern other | 14 | | than the governing commission of the program for whose
purposes | 15 | | it was created. Under no circumstances shall the guarantee fund | 16 | | be
commingled with other funds or investments.
| 17 | | (e-1) No commissioner or family member of a commissioner, | 18 | | or employee or
family member of an employee, may receive any
| 19 | | financial benefit, either directly or indirectly, from the | 20 | | guarantee fund.
Nothing in this subsection (e-1) shall be | 21 | | construed to prohibit payment of
expenses to a commissioner in | 22 | | accordance with Section 4 or payment of salaries
or expenses to | 23 | | an employee in accordance with this Section.
| 24 | | As used in this subsection (e-1), "family member" means a | 25 | | spouse, child,
stepchild, parent, brother, or sister of a | 26 | | commissioner or a child, stepchild,
parent, brother, or sister |
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| 1 | | of a commissioner's spouse.
| 2 | | (f) An independent audit of the guarantee fund and the | 3 | | management of the
program shall be conducted annually and made | 4 | | available to the public
through any office of the governing | 5 | | commission or a public facility such as
a local public library | 6 | | located within the territory of the program.
| 7 | | (Source: P.A. 98-1160, eff. 6-1-15; 99-37, eff. 1-1-16 .)
| 8 | | (65 ILCS 95/20) (from Ch. 24, par. 1620)
| 9 | | Sec. 20. Home Rule. | 10 | | (a) In compliance with Section 7 of "An Act to
revise the | 11 | | law in relation to the construction of the statutes", approved
| 12 | | March 5, 1874, as amended, it is declared to be the law of this | 13 | | State,
pursuant to paragraph (h) of Section 6 of Article VII of | 14 | | the Illinois
Constitution, that the authority or duty to | 15 | | establish or prohibit the
establishment of home equity programs | 16 | | in any municipality with more than
1,000,000 inhabitants, | 17 | | including home rule units, and the determination of
the terms | 18 | | of such programs are declared to be exclusive powers and
| 19 | | functions of the State which may not be exercised concurrently | 20 | | by any such
municipality. No municipality with more than | 21 | | 1,000,000 inhabitants,
including home rule units, shall | 22 | | establish or maintain a home equity
program other than as | 23 | | provided in this Act, and any such municipality shall
| 24 | | affirmatively establish and maintain a home equity program when | 25 | | required to
do so pursuant to this Act. |
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| 1 | | (b) A home rule eligible municipality may not establish or | 2 | | maintain a home equity program in a manner inconsistent with | 3 | | this Act. This subsection is a limitation under subsection (i) | 4 | | of Section 6 of Article VII of the Illinois Constitution on the | 5 | | concurrent exercise by home rule units of powers and functions | 6 | | exercised by the State.
| 7 | | (Source: P.A. 85-1044.)".
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