Public Act 096-0921
HB2360 Enrolled LRB096 09284 MJR 19438 b

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

Effective Date: 06/10/2010