Full Text of HB4562 96th General Assembly
HB4562 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB4562
Introduced 5/14/2009, by Rep. Darlene J. Senger SYNOPSIS AS INTRODUCED: |
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Creates the Tax Credit Advantage Loan Program Act. Provides that the Illinois Housing Development Authority may, in cooperation with eligible lenders, establish a program to make tax credit advantage loans, secured by a second mortgage, available to qualified home buyers for qualified home purchases. Limits loans under this program to no more than $4,800 or 6% of the contract purchase price of the home, whichever is less. Provides that if a tax credit advantage loan is repaid on or before June 30, 2010, then it shall not accrue interest. Provides that if a tax credit advantage loan is not repaid by that date, then it shall bear interest at a rate that is one-half of a percentage point higher than the interest rate of the first mortgage. Grants the Authority emergency rulemaking powers. Defines "Authority", "eligible lender", "I-LOAN program", "qualified home buyer", "qualified home purchase", and "tax credit advantage loan". Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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HB4562 |
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LRB096 12897 JDS 26757 b |
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| AN ACT to create the Tax Credit Advantage Loan Program.
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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 Tax | 5 |
| Credit Advantage Loan Program Act. | 6 |
| Section 5. Legislative findings. The General Assembly | 7 |
| finds that it is in the interest of the State to enable | 8 |
| first-time home buyers in need of closing and down payment | 9 |
| assistance to borrow funds on a short-term basis in | 10 |
| anticipation of receiving their federal 2009 First-Time Home | 11 |
| Buyer Credit. | 12 |
| Section 10. Definitions. As used in this Act: | 13 |
| "Authority" means the Illinois Housing Development | 14 |
| Authority.
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| "Eligible lender" means a lending institution that the | 16 |
| Authority has authorized to participate in the Tax Credit | 17 |
| Advantage Loan Program and that participates, as of the | 18 |
| effective date of this Act, in the I-LOAN Program.
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| "I-LOAN program" means the mortgage revenue bond program | 20 |
| administered by the Authority.
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| "Qualified home buyer" means a person who the Authority has | 22 |
| determined to be eligible to receive the federal First-Time |
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HB4562 |
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LRB096 12897 JDS 26757 b |
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| Home Buyer Credit in 2009.
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| "Qualified home purchase" means a home purchase that closes | 3 |
| on or after the effective date of this Act but before December | 4 |
| 1, 2009.
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| "Tax credit advantage loan" means a short-term loan made | 6 |
| under this Act in exchange for a second mortgage to a qualified | 7 |
| home buyer during a qualified home purchase.
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| Section 15. Tax Credit Advantage Loan Program. | 9 |
| (a) The Authority may, in cooperation with eligible | 10 |
| lenders, establish a program to make tax credit advantage loans | 11 |
| available to qualified home buyers for qualified home | 12 |
| purchases. Tax credit advantage loans may be made for no more | 13 |
| than $4,800 or 6% of the contract purchase price of the home, | 14 |
| whichever is less. Tax credit advantage loans repaid on or | 15 |
| before June 30, 2010 shall not accrue interest. However, tax | 16 |
| credit advantage loans not repaid by that date shall, on and | 17 |
| after July 1, 2010, bear interest at a rate that is one-half of | 18 |
| a percentage point higher than the interest rate of the loan | 19 |
| secured by the first mortgage.
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| (b) The Authority shall charge an origination fee of $300, | 21 |
| which shall be bundled into the second mortgage, to each | 22 |
| qualified home buyer who receives a tax credit advantage loan. | 23 |
| Eligible lenders may charge a loan processing fee of $75 to | 24 |
| each qualified home buyer who receives a tax credit advantage | 25 |
| loan.
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HB4562 |
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LRB096 12897 JDS 26757 b |
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| (c) Underwriting for tax credit advantage loan financing | 2 |
| shall be carried out by the eligible lender and shall be | 3 |
| bundled into the underwriting for the first mortgage. | 4 |
| (d) The Authority may provide for crediting the amount of | 5 |
| the origination fee to the borrower if the tax credit advantage | 6 |
| loan is repaid on or before June 30, 2010. | 7 |
| Section 95. Rulemaking. To expedite the implementation of | 8 |
| this Act, the Authority may adopt emergency rules as authorized | 9 |
| under Section 5-45 of the Illinois Administrative Procedure | 10 |
| Act.
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| Section 99. Effective date. This Act takes effect upon | 12 |
| becoming law.
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