Full Text of SB1722 101st General Assembly
SB1722 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB1722 Introduced 2/15/2019, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Housing Development Act. Provides that an approved community-based organization that is a legal services provider may not use Foreclosure Prevention funds to provide legal representation or advice in a civil proceeding or court-sponsored mediation services. In the definition of "approved community-based organization", provides that a governmental agency is not an approved community-based organization (rather than "approved community-based organization" does not include a not-for-profit corporation or other entity or person that provides legal representation or advice in a civil proceeding or court-sponsored mediation services, or a governmental agency). Includes, in the definition of "approved foreclosure prevention outreach program", a program developed by an approved community-based organization that includes telephone contact with residents and a program to provide education about the options of a tenant living in a property undergoing foreclosure. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Housing Development Act is amended | 5 | | by changing Section 7.30 as follows: | 6 | | (20 ILCS 3805/7.30) | 7 | | Sec. 7.30. Foreclosure Prevention Program. | 8 | | (a) The Authority shall establish and administer a | 9 | | Foreclosure Prevention Program. The Authority shall use moneys | 10 | | in the Foreclosure Prevention Program Fund, and any other funds | 11 | | appropriated for this purpose, to make grants to (i) approved | 12 | | counseling agencies for approved housing counseling and (ii) | 13 | | approved community-based organizations for approved | 14 | | foreclosure prevention outreach programs. The Authority shall | 15 | | promulgate rules to implement this Program and may adopt | 16 | | emergency rules as soon as practicable to begin implementation | 17 | | of the Program. | 18 | | (b) Subject to
appropriation and the annual receipt of | 19 | | funds, the Authority shall make grants from the Foreclosure | 20 | | Prevention Program Fund derived from fees paid as specified in | 21 | | subsection (a) of Section 15-1504.1 of the Code of Civil | 22 | | Procedure as follows: | 23 | | (1) 25% of the moneys in the Fund shall be used to make |
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| 1 | | grants to approved counseling agencies that provide | 2 | | services in Illinois outside of the City of Chicago. Grants | 3 | | shall be based upon the number of foreclosures filed in an | 4 | | approved counseling agency's service area, the capacity of | 5 | | the agency to provide foreclosure counseling services, and | 6 | | any other factors that the Authority deems appropriate. | 7 | | (2) 25% of the moneys in the Fund shall be distributed | 8 | | to the City of Chicago to make grants to approved | 9 | | counseling agencies located within the City of Chicago for | 10 | | approved housing counseling or to support foreclosure | 11 | | prevention counseling programs administered by the City of | 12 | | Chicago. | 13 | | (3) 25% of the moneys in the Fund shall be used to make | 14 | | grants to approved community-based organizations located | 15 | | outside of the City of Chicago for approved foreclosure | 16 | | prevention outreach programs. | 17 | | (4) 25% of the moneys in the Fund shall be used to make | 18 | | grants to approved community-based organizations located | 19 | | within the City of Chicago for approved foreclosure | 20 | | prevention outreach programs, with priority given to | 21 | | programs that provide door-to-door outreach. | 22 | | (b-1) Subject to appropriation and the annual receipt of | 23 | | funds, the Authority shall make grants from the Foreclosure | 24 | | Prevention Program Graduated Fund derived from fees paid as | 25 | | specified in paragraph (1) of subsection (a-5) of Section | 26 | | 15-1504.1 of the Code of Civil Procedure, as follows: |
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| 1 | | (1) 30% shall be used to make grants for approved | 2 | | housing counseling in Cook County outside of the City of | 3 | | Chicago; | 4 | | (2) 25% shall be used to make grants for approved | 5 | | housing counseling in the City of Chicago; | 6 | | (3) 30% shall be used to make grants for approved | 7 | | housing counseling in DuPage, Kane, Lake, McHenry, and Will | 8 | | Counties; and | 9 | | (4) 15% shall be used to make grants for approved | 10 | | housing counseling in Illinois in counties other than Cook, | 11 | | DuPage, Kane, Lake, McHenry, and Will Counties provided | 12 | | that grants to provide approved housing counseling to | 13 | | borrowers residing within these counties shall be based, to | 14 | | the extent practicable, (i) proportionately on the amount | 15 | | of fees paid to the respective clerks of the courts within | 16 | | these counties and (ii) on any other factors that the | 17 | | Authority deems appropriate. | 18 | | The percentages set forth in this subsection (b-1) shall be | 19 | | calculated after deduction of reimbursable administrative | 20 | | expenses incurred by the Authority, but shall not be greater | 21 | | than 4% of the annual appropriated amount. | 22 | | An approved community-based organization that is a legal | 23 | | services provider may not use Foreclosure Prevention funds to | 24 | | provide legal representation or advice in a civil proceeding or | 25 | | court-sponsored mediation services. | 26 | | (b-5) As used in this Section: |
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| 1 | | "Approved community-based organization" means a | 2 | | not-for-profit entity that provides educational and financial | 3 | | information to residents of a community through in-person | 4 | | contact. A "Approved community-based organization" does not | 5 | | include a not-for-profit corporation or other entity or person | 6 | | that provides legal representation or advice in a civil | 7 | | proceeding or court-sponsored mediation services, or a | 8 | | governmental agency is not an approved community-based | 9 | | organization for purposes of the Program . | 10 | | "Approved foreclosure prevention outreach program" means a | 11 | | program developed by an approved community-based organization | 12 | | that includes in-person or telephone contact with residents to | 13 | | provide (i) pre-purchase and post-purchase home ownership | 14 | | counseling, (ii) education about the foreclosure process and | 15 | | the options of a mortgagor in a foreclosure proceeding or the | 16 | | options of a tenant living in a property undergoing | 17 | | foreclosure, or , and (iii) programs developed by an approved | 18 | | community-based organization in conjunction with a State or | 19 | | federally chartered financial institution. | 20 | | "Approved counseling agency" means a housing counseling | 21 | | agency approved by the U.S. Department of Housing and Urban | 22 | | Development. | 23 | | "Approved housing counseling" means in-person counseling | 24 | | provided by a counselor employed by an approved counseling | 25 | | agency to all borrowers, or documented telephone counseling | 26 | | where a hardship would be imposed on one or more borrowers. A |
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| 1 | | hardship shall exist in instances in which the borrower is | 2 | | confined to his or her home due to a medical condition, as | 3 | | verified in writing by a physician, advanced practice | 4 | | registered nurse, or physician assistant, or the borrower | 5 | | resides 50 miles or more from the nearest approved counseling | 6 | | agency. In instances of telephone counseling, the borrower must | 7 | | supply all necessary documents to the counselor at least 72 | 8 | | hours prior to the scheduled telephone counseling session. | 9 | | (c) (Blank).
| 10 | | (c-5) Where the jurisdiction of an approved counseling | 11 | | agency is included within more than one of the geographic areas | 12 | | set forth in this Section, the Authority may elect to fully | 13 | | fund the applicant from one of the relevant geographic areas. | 14 | | (Source: P.A. 99-581, eff. 1-1-17; 100-513, eff. 1-1-18 .)
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.
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