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Public Act 103-0737
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| HB4921 Enrolled | LRB103 37586 AWJ 67712 b |
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AN ACT concerning local government.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Home Equity Assurance Act is amended by |
changing Section 11 as follows:
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(65 ILCS 95/11) (from Ch. 24, par. 1611) |
Sec. 11. Guarantee Fund. |
(a) Each governing commission and program created by |
referendum under the provisions of this Act shall maintain a |
guarantee fund for the purposes of paying the costs of |
administering the program and extending protection to members |
pursuant to the limitations and procedures set forth in this |
Act. |
(b) The guarantee fund shall be raised by means of an |
annual tax levied on all residential property within the |
territory of the program having at least one, but not more than |
6 dwelling units and classified by county ordinance as |
residential. The rate of this tax may be changed from year to |
year by majority vote of the governing commission but in no |
case shall it exceed a rate of .12% of the equalized assessed |
valuation of all property in the territory of the program |
having at least one, but not more than 6 dwelling units and |
classified by county ordinance as residential, or the maximum |
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tax rate approved by the voters of the territory at the |
referendum which created the program or, in the case of a |
merged program, the maximum tax rate approved by the voters at |
the referendum authorizing the merger, whichever rate is |
lower. The commissioners shall cause the amount to be raised |
by taxation in each year to be certified to the county clerk in |
the manner provided by law, and any tax so levied and certified |
shall be collected and enforced in the same manner and by the |
same officers as those taxes for the purposes of the county and |
city within which the territory of the commission is located. |
Any such tax, when collected, shall be paid over to the proper |
officer of the commission who is authorized to receive and |
receipt for such tax. The governing commission may issue tax |
anticipation warrants against the taxes to be assessed for the |
calendar year in which the program is created and for the first |
full calendar year after the creation of the program. |
(c) The moneys deposited in the guarantee fund shall, as |
nearly as practicable, be fully and continuously invested or |
reinvested by the governing commission in investment |
obligations which shall be in such amounts, and shall mature |
at such times, that the maturity or date of redemption at the |
option of the holder of such investment obligations shall |
coincide, as nearly as practicable, with the times at which |
monies will be required for the purposes of the program. For |
the purposes of this Section investment obligation shall mean |
direct general municipal, state, or federal obligations which |
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at the time are legal investments under the laws of this State |
and the payment of principal of and interest on which are |
unconditionally guaranteed by the governing body issuing them. |
(d) Except as permitted by this subsection and subsection |
(d-5), the guarantee fund shall be used solely and exclusively |
for the purpose of providing guarantees to members of the |
particular Guaranteed Home Equity Program and for reasonable |
salaries, expenses, bills, and fees incurred in administering |
the program, and shall be used for no other purpose. |
A governing commission, with no less than $4,000,000 in |
its guarantee fund, may, if authorized (i) by referendum duly |
adopted by a majority of the voters or (ii) by resolution of |
the governing commission upon approval by two-thirds of the |
commissioners, establish a Low Interest Home Improvement Loan |
Program in accordance with and subject to procedures |
established by a financial institution, as defined in the |
Illinois Banking Act. Whenever the question of creating a Low |
Interest Home Improvement Loan Program is initiated by |
resolution or ordinance of the corporate authorities of the |
municipality or by a petition signed by not less than 10% of |
the total number of registered voters of each precinct in the |
territory, the registered voters of which are eligible to sign |
the petition, it shall be the duty of the election authority |
having jurisdiction over the municipality to submit the |
question of creating the program to the electors of each |
precinct within the territory at the regular election |
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specified in the resolution, ordinance, or petition initiating |
the question. A petition initiating a question described in |
this subsection shall be filed with the election authority |
having jurisdiction over the municipality. The petition shall |
be filed and objections to the petition shall be made in the |
manner provided in the Election Code. A resolution, ordinance, |
or petition initiating a question described in this subsection |
shall specify the election at which the question is to be |
submitted. The referendum on the question shall be held in |
accordance with the Election Code. The question shall be in |
substantially the following form: |
"Shall the (name of the home equity program) implement |
a Low Interest Home Improvement Loan Program with money |
from the guarantee fund of the established guaranteed home |
equity program?" |
The votes must be recorded as "Yes" or "No". |
Whenever a majority of the voters on the public question |
approve the creation of the program as certified by the proper |
election authorities or a resolution of the governing |
commission is approved by a two-thirds majority, the |
commission shall establish the program and administer the |
program with funds collected under the Guaranteed Home Equity |
Program, subject to the following conditions: |
(1) At any given time, the cumulative total of all |
loans and loan guarantees (if applicable) issued under |
this program may not reduce the balance of the guarantee |
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fund to less than $3,000,000. |
(2) Only eligible applicants may apply for a loan. |
(3) The loan must be used for the repair, maintenance, |
remodeling, alteration, or improvement of a guaranteed |
residence. This condition is intended to include the |
repair or maintenance of a guaranteed residence's water |
and sewer pipes and repair of a guaranteed residence, |
including, but not limited to, basement repairs, following |
flooding damage or other natural disaster damage to the |
property. This condition is not intended to exclude the |
repair, maintenance, remodeling, alteration, or |
improvement of a guaranteed residence's landscape. This |
condition is intended to exclude the demolition of a |
current residence. This condition is also intended to |
exclude the construction of a new residence. |
(4) An eligible applicant may not borrow more than the |
amount of equity value in his or her residence. |
(5) A commission must ensure that loans issued are |
secured with collateral that is at least equal to the |
amount of the loan or loan guarantee. |
(6) A commission shall charge an interest rate which |
it determines to be below the market rate of interest |
generally available to the applicant. |
(7) A commission may, by resolution, establish other |
administrative rules and procedures as are necessary to |
implement this program including, but not limited to, loan |
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dollar amounts and terms. A commission may also impose on |
loan applicants a one-time application fee for the purpose |
of defraying the costs of administering the program. |
(8) A commission may use loan funds to issue a grant or |
rebate for repairs, maintenance, remodeling, alteration, |
or improvement of a guaranteed residence for purposes of |
preventing or repairing damage as a result of a natural |
disaster, including, but not limited to, flooding. |
(d-5) A governing commission, with no less than $4,000,000 |
in its guarantee fund, may, if authorized by referendum duly |
adopted by a majority of the voters, establish a Foreclosure |
Prevention Loan Fund to provide low interest emergency loans |
to eligible applicants that may be forced into foreclosure |
proceedings. |
Whenever the question of creating a Foreclosure Prevention |
Loan Fund is initiated by resolution or ordinance of the |
corporate authorities of the municipality or by a petition |
signed by not less than 10% of the total number of registered |
voters of each precinct in the territory, the registered |
voters of which are eligible to sign the petition, it shall be |
the duty of the election authority having jurisdiction over |
the municipality to submit the question of creating the |
program to the electors of each precinct within the territory |
at the regular election specified in the resolution, |
ordinance, or petition initiating the question. A petition |
initiating a question described in this subsection shall be |
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filed with the election authority having jurisdiction over the |
municipality. The petition shall be filed and objections to |
the petition shall be made in the manner provided in the |
Election Code. A resolution, ordinance, or petition initiating |
a question described in this subsection shall specify the |
election at which the question is to be submitted. The |
referendum on the question shall be held in accordance with |
the Election Code. The question shall be in substantially the |
following form: |
"Shall the (name of the home equity program) implement a |
Foreclosure Prevention Loan Fund with money from the guarantee |
fund of the established guaranteed home equity program?" |
The votes must be recorded as "Yes" or "No". |
Whenever a majority of the voters on the public question |
approve the creation of a Foreclosure Prevention Loan Fund as |
certified by the proper election authorities, the commission |
shall establish the program and administer the program with |
funds collected under the Guaranteed Home Equity Program, |
subject to the following conditions: |
(1) At any given time, the cumulative total of all |
loans and loan guarantees (if applicable) issued under |
this program may not exceed $3,000,000. |
(2) Only eligible applicants may apply for a loan. The |
Commission may establish, by resolution, additional |
criteria for eligibility. |
(3) The loan must be used to assist with preventing |
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foreclosure proceedings. |
(4) An eligible applicant may not borrow more than the |
amount of equity value in his or her residence. |
(5) A commission must ensure that loans issued are |
secured as a second lien on the property. |
(6) A commission shall charge an interest rate which |
it determines to be below the market rate of interest |
generally available to the applicant. |
(7) A commission may, by resolution, establish other |
administrative rules and procedures as are necessary to |
implement this program including, but not limited to, |
eligibility requirements for eligible applicants, loan |
dollar amounts, and loan terms. |
(8) A commission may also impose on loan applicants a |
one-time application fee for the purpose of defraying the |
costs of administering the program. |
(d-10) The Northwest Home Equity Assurance Program may, if |
authorized (i) by referendum approved by a majority of the |
voters or (ii) by resolution of the governing commission upon |
approval by two-thirds of the commissioners, establish a |
Delinquent Tax Repayment Loan Fund to provide low-interest |
emergency loans to eligible applicants. |
If the question of creating a Delinquent Tax Repayment |
Loan Fund is initiated by resolution or ordinance of the |
corporate authorities of the municipality or by a petition |
signed by not less than 10% of the total number of registered |
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voters of each precinct in the territory, the registered |
voters of which are eligible to sign the petition, it shall be |
the duty of the election authority having jurisdiction over |
the municipality to submit the question of creating the |
program to the electors of each precinct within the territory |
at the regular election specified in the resolution, |
ordinance, or petition initiating the question. A resolution, |
ordinance, or petition initiating a question described in this |
subsection shall be filed with the election authority having |
jurisdiction over the municipality. The resolution, ordinance, |
or petition shall be filed and objections to the resolution, |
ordinance, or petition shall be made in the manner provided in |
the Election Code. A resolution, ordinance, or petition |
initiating a question described in this subsection shall |
specify the election at which the question is to be submitted. |
The referendum on the question shall be held in accordance |
with the Election Code. The question shall be in substantially |
the following form: |
"Shall the (name of the home equity program) implement |
a Delinquent Tax Repayment Loan Fund with money from the |
guarantee fund of the Northwest Home Equity Assurance |
Program?" |
The votes must be recorded as "Yes" or "No". |
If a majority of the voters on the question approve the |
creation of a Delinquent Tax Repayment Loan Fund as certified |
by the proper election authorities or two-thirds of the |
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commissioners, by resolution, approve the creation of a |
Delinquent Tax Repayment Loan Fund, the commission shall |
establish the program and administer the program with funds |
collected under the program, subject to the following |
conditions: |
(1) At any given time, the cumulative total of all |
loans and loan guarantees (if applicable) issued under |
this program may not exceed $3,000,000. |
(2) Only eligible applicants may apply for a loan. The |
commission may establish, by resolution, additional |
criteria for eligibility. |
(3) The loan must be used to assist with repayment of |
delinquent property taxes and for those facing imminent |
delinquency. |
(4) An eligible applicant may not borrow more than the |
amount due to the treasurer's office. |
(5) A commission shall charge an interest rate which |
it determines to be below the market rate of interest |
generally available to the applicant. |
(6) A commission may, by resolution, establish other |
administrative rules and procedures as are necessary to |
implement this program including, but not limited to, |
eligibility requirements for eligible applicants, loan |
dollar amounts, and loan terms. |
(7) Where practicable, it shall be required that a |
borrower obtain free housing counseling services prior to |
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applying to this tax program for the purpose of assisting |
with budgeting and providing a recommendation as to |
whether this client is suited for this program. |
(8) A commission may also impose on loan applicants a |
one-time application fee for the purpose of defraying the |
costs of administering the program. |
(e) The guarantee fund shall be maintained, invested, and |
expended exclusively by the governing commission of the |
program for whose purposes it was created. Under no |
circumstance shall the guarantee fund be used by any person or |
persons, governmental body, or public or private agency or |
concern other than the governing commission of the program for |
whose purposes it was created. Under no circumstances shall |
the guarantee fund be commingled with other funds or |
investments. |
(e-1) No commissioner or family member of a commissioner, |
or employee or family member of an employee, may receive any |
financial benefit, either directly or indirectly, from the |
guarantee fund. Nothing in this subsection (e-1) shall be |
construed to prohibit payment of expenses to a commissioner in |
accordance with Section 4 or payment of salaries or expenses |
to an employee in accordance with this Section. |
As used in this subsection (e-1), "family member" means a |
spouse, child, stepchild, parent, brother, or sister of a |
commissioner or a child, stepchild, parent, brother, or sister |
of a commissioner's spouse. |