Full Text of HB2360 96th General Assembly
HB2360enr 96TH GENERAL ASSEMBLY
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the | 5 |
| Illinois Homeowner's Emergency Assistance Program Act. | 6 |
| Section 5. Illinois Housing Development Authority; powers; | 7 |
| duties. | 8 |
| (a) The Illinois Housing Development Authority shall have | 9 |
| the power to issue grants to residents of Illinois who are | 10 |
| eligible for assistance as described in this Act. | 11 |
| (b) The Authority shall implement and administer the | 12 |
| program established by this Act. | 13 |
| (c) The Authority shall ensure that a homeowner receiving | 14 |
| assistance under this Act has received counseling from a | 15 |
| HUD-certified housing counseling agency. | 16 |
| Section 10. Definitions. For purposes of this Act: | 17 |
| "Authority" means the Illinois Housing Development | 18 |
| Authority. | 19 |
| "Counseling" means in-person counseling provided by a | 20 |
| counselor employed by a HUD-certified housing counseling | 21 |
| agency or, where a hardship would be imposed on a homeowner, | 22 |
| documented telephone counseling. A hardship exists if the |
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| homeowner is confined to his or her home due to a medical | 2 |
| condition, as verified in writing by a physician, or the | 3 |
| homeowner resides 50 miles or more from the nearest | 4 |
| participating HUD-certified housing counseling agency. In | 5 |
| instances of telephone counseling, the homeowner must supply | 6 |
| any necessary documents to the counselor at least 72 hours | 7 |
| prior to the scheduled telephone counseling session. | 8 |
| "Counselor" means a counselor employed by a HUD-certified | 9 |
| housing counseling agency. | 10 |
| "Lender" means that term as it is defined in Section 1-4 of | 11 |
| the Residential Mortgage License Act of 1987. | 12 |
| "Good faith" means honesty in fact in the conduct or | 13 |
| transaction concerned. | 14 |
| Section 15. Eligibility for assistance. | 15 |
| (a) No assistance may be given to a homeowner pursuant to | 16 |
| this Act unless: | 17 |
| (1) The property securing the mortgage is the | 18 |
| homeowner's primary residence. | 19 |
| (2) The homeowner is a resident of this State and his | 20 |
| or her property is being foreclosed due to failure to make | 21 |
| mortgage payments. | 22 |
| (3) The lender agrees to halt foreclosure proceedings | 23 |
| upon written notification by the Authority that a homeowner | 24 |
| has been approved for assistance. | 25 |
| (4) The homeowner's household income is less than 120% |
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| of area median income determined by the U.S. Department of | 2 |
| Housing and Urban Development. | 3 |
| (5) The mortgage lender agrees to renegotiate in good | 4 |
| faith the terms of the mortgage being foreclosed upon | 5 |
| written notification that the homeowner has been approved | 6 |
| by the Authority. | 7 |
| (6) The homeowner has attended a counseling session | 8 |
| that was provided by a HUD-certified housing counseling | 9 |
| agency. | 10 |
| (7) The borrower is a resident of this State. | 11 |
| (8) The homeowner agrees to defend and indemnify and | 12 |
| hold harmless the Authority from and against any and all | 13 |
| damages arising out of the Authority's payment on behalf of | 14 |
| the borrower. | 15 |
| (9) The lender agrees to defend and indemnify and hold | 16 |
| harmless the Authority from and against any and all damages | 17 |
| arising out of the Authority's payment on behalf of the | 18 |
| borrower. | 19 |
| (b) Upon a determination that the conditions of eligibility | 20 |
| described in this Act have been met, and funds for assistance | 21 |
| are available, the homeowner shall become eligible for the | 22 |
| assistance described in Section 20 of this Act. | 23 |
| Section 20. Assistance payments. | 24 |
| (a) If the Authority determines that a homeowner is | 25 |
| eligible for assistance under this program, the Authority shall |
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| pay directly to each lender payments on behalf of the homeowner | 2 |
| seeking assistance under the program. This amount shall | 3 |
| include, but not be limited to, delinquencies of principal, | 4 |
| interest, taxes, assessments, ground rents, hazard insurance, | 5 |
| mortgage insurance, and credit insurance premiums. | 6 |
| (b) An eligible applicant may not receive a grant in excess | 7 |
| of $6,000, or the sum of 3 monthly mortgage payments on the | 8 |
| property, whichever is less. | 9 |
| (c) Grants made under this Act may only be used to satisfy | 10 |
| mortgage financing with a first lien position. | 11 |
| Section 25. Program funding. | 12 |
| (a) The Authority shall use only funds specifically | 13 |
| appropriated by the General Assembly for the purposes of this | 14 |
| Act to make payments to lenders, to provide reimbursement to | 15 |
| HUD-certified housing counseling agencies for costs incurred | 16 |
| in assisting borrowers, and to reimburse the Authority for | 17 |
| administration of the program. Assistance under this Act shall | 18 |
| not be available at any time the Authority does not have funds | 19 |
| currently available to approve applications for emergency | 20 |
| mortgage assistance. | 21 |
| (b) This Act is subject to appropriation; however, at no | 22 |
| time shall the cumulative amount of grants issued under this | 23 |
| program exceed $3,000,000 in a calendar year. | 24 |
| Section 30. Repealer. This Act is repealed on January 1, |
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| 2011.
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| Section 99. Effective date. This Act takes effect upon | 3 |
| becoming law.
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