Illinois 2023-2024 Regular Session

Illinois House Bill HB4921 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0737
2	1		HB4921 EnrolledLRB103 37586 AWJ 67712 b HB4921 Enrolled LRB103 37586 AWJ 67712 b
3	2		HB4921 Enrolled LRB103 37586 AWJ 67712 b
4		-	AN ACT concerning local government.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Home Equity Assurance Act is amended by
8		-	changing Section 11 as follows:
	3	+	1 AN ACT concerning local government.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Home Equity Assurance Act is amended by
	7	+	5 changing Section 11 as follows:
	8	+	6 (65 ILCS 95/11) (from Ch. 24, par. 1611)
	9	+	7 Sec. 11. Guarantee Fund.
	10	+	8 (a) Each governing commission and program created by
	11	+	9 referendum under the provisions of this Act shall maintain a
	12	+	10 guarantee fund for the purposes of paying the costs of
	13	+	11 administering the program and extending protection to members
	14	+	12 pursuant to the limitations and procedures set forth in this
	15	+	13 Act.
	16	+	14 (b) The guarantee fund shall be raised by means of an
	17	+	15 annual tax levied on all residential property within the
	18	+	16 territory of the program having at least one, but not more than
	19	+	17 6 dwelling units and classified by county ordinance as
	20	+	18 residential. The rate of this tax may be changed from year to
	21	+	19 year by majority vote of the governing commission but in no
	22	+	20 case shall it exceed a rate of .12% of the equalized assessed
	23	+	21 valuation of all property in the territory of the program
	24	+	22 having at least one, but not more than 6 dwelling units and
	25	+	23 classified by county ordinance as residential, or the maximum
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	34	+	1 tax rate approved by the voters of the territory at the
	35	+	2 referendum which created the program or, in the case of a
	36	+	3 merged program, the maximum tax rate approved by the voters at
	37	+	4 the referendum authorizing the merger, whichever rate is
	38	+	5 lower. The commissioners shall cause the amount to be raised
	39	+	6 by taxation in each year to be certified to the county clerk in
	40	+	7 the manner provided by law, and any tax so levied and certified
	41	+	8 shall be collected and enforced in the same manner and by the
	42	+	9 same officers as those taxes for the purposes of the county and
	43	+	10 city within which the territory of the commission is located.
	44	+	11 Any such tax, when collected, shall be paid over to the proper
	45	+	12 officer of the commission who is authorized to receive and
	46	+	13 receipt for such tax. The governing commission may issue tax
	47	+	14 anticipation warrants against the taxes to be assessed for the
	48	+	15 calendar year in which the program is created and for the first
	49	+	16 full calendar year after the creation of the program.
	50	+	17 (c) The moneys deposited in the guarantee fund shall, as
	51	+	18 nearly as practicable, be fully and continuously invested or
	52	+	19 reinvested by the governing commission in investment
	53	+	20 obligations which shall be in such amounts, and shall mature
	54	+	21 at such times, that the maturity or date of redemption at the
	55	+	22 option of the holder of such investment obligations shall
	56	+	23 coincide, as nearly as practicable, with the times at which
	57	+	24 monies will be required for the purposes of the program. For
	58	+	25 the purposes of this Section investment obligation shall mean
	59	+	26 direct general municipal, state, or federal obligations which
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	70	+	1 at the time are legal investments under the laws of this State
	71	+	2 and the payment of principal of and interest on which are
	72	+	3 unconditionally guaranteed by the governing body issuing them.
	73	+	4 (d) Except as permitted by this subsection and subsection
	74	+	5 (d-5), the guarantee fund shall be used solely and exclusively
	75	+	6 for the purpose of providing guarantees to members of the
	76	+	7 particular Guaranteed Home Equity Program and for reasonable
	77	+	8 salaries, expenses, bills, and fees incurred in administering
	78	+	9 the program, and shall be used for no other purpose.
	79	+	10 A governing commission, with no less than $4,000,000 in
	80	+	11 its guarantee fund, may, if authorized (i) by referendum duly
	81	+	12 adopted by a majority of the voters or (ii) by resolution of
	82	+	13 the governing commission upon approval by two-thirds of the
	83	+	14 commissioners, establish a Low Interest Home Improvement Loan
	84	+	15 Program in accordance with and subject to procedures
	85	+	16 established by a financial institution, as defined in the
	86	+	17 Illinois Banking Act. Whenever the question of creating a Low
	87	+	18 Interest Home Improvement Loan Program is initiated by
	88	+	19 resolution or ordinance of the corporate authorities of the
	89	+	20 municipality or by a petition signed by not less than 10% of
	90	+	21 the total number of registered voters of each precinct in the
	91	+	22 territory, the registered voters of which are eligible to sign
	92	+	23 the petition, it shall be the duty of the election authority
	93	+	24 having jurisdiction over the municipality to submit the
	94	+	25 question of creating the program to the electors of each
	95	+	26 precinct within the territory at the regular election
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	106	+	1 specified in the resolution, ordinance, or petition initiating
	107	+	2 the question. A petition initiating a question described in
	108	+	3 this subsection shall be filed with the election authority
	109	+	4 having jurisdiction over the municipality. The petition shall
	110	+	5 be filed and objections to the petition shall be made in the
	111	+	6 manner provided in the Election Code. A resolution, ordinance,
	112	+	7 or petition initiating a question described in this subsection
	113	+	8 shall specify the election at which the question is to be
	114	+	9 submitted. The referendum on the question shall be held in
	115	+	10 accordance with the Election Code. The question shall be in
	116	+	11 substantially the following form:
	117	+	12 "Shall the (name of the home equity program) implement
	118	+	13 a Low Interest Home Improvement Loan Program with money
	119	+	14 from the guarantee fund of the established guaranteed home
	120	+	15 equity program?"
	121	+	16 The votes must be recorded as "Yes" or "No".
	122	+	17 Whenever a majority of the voters on the public question
	123	+	18 approve the creation of the program as certified by the proper
	124	+	19 election authorities or a resolution of the governing
	125	+	20 commission is approved by a two-thirds majority, the
	126	+	21 commission shall establish the program and administer the
	127	+	22 program with funds collected under the Guaranteed Home Equity
	128	+	23 Program, subject to the following conditions:
	129	+	24 (1) At any given time, the cumulative total of all
	130	+	25 loans and loan guarantees (if applicable) issued under
	131	+	26 this program may not reduce the balance of the guarantee
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	142	+	1 fund to less than $3,000,000.
	143	+	2 (2) Only eligible applicants may apply for a loan.
	144	+	3 (3) The loan must be used for the repair, maintenance,
	145	+	4 remodeling, alteration, or improvement of a guaranteed
	146	+	5 residence. This condition is intended to include the
	147	+	6 repair or maintenance of a guaranteed residence's water
	148	+	7 and sewer pipes and repair of a guaranteed residence,
	149	+	8 including, but not limited to, basement repairs, following
	150	+	9 flooding damage or other natural disaster damage to the
	151	+	10 property. This condition is not intended to exclude the
	152	+	11 repair, maintenance, remodeling, alteration, or
	153	+	12 improvement of a guaranteed residence's landscape. This
	154	+	13 condition is intended to exclude the demolition of a
	155	+	14 current residence. This condition is also intended to
	156	+	15 exclude the construction of a new residence.
	157	+	16 (4) An eligible applicant may not borrow more than the
	158	+	17 amount of equity value in his or her residence.
	159	+	18 (5) A commission must ensure that loans issued are
	160	+	19 secured with collateral that is at least equal to the
	161	+	20 amount of the loan or loan guarantee.
	162	+	21 (6) A commission shall charge an interest rate which
	163	+	22 it determines to be below the market rate of interest
	164	+	23 generally available to the applicant.
	165	+	24 (7) A commission may, by resolution, establish other
	166	+	25 administrative rules and procedures as are necessary to
	167	+	26 implement this program including, but not limited to, loan
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	178	+	1 dollar amounts and terms. A commission may also impose on
	179	+	2 loan applicants a one-time application fee for the purpose
	180	+	3 of defraying the costs of administering the program.
	181	+	4 (8) A commission may use loan funds to issue a grant or
	182	+	5 rebate for repairs, maintenance, remodeling, alteration,
	183	+	6 or improvement of a guaranteed residence for purposes of
	184	+	7 preventing or repairing damage as a result of a natural
	185	+	8 disaster, including, but not limited to, flooding.
	186	+	9 (d-5) A governing commission, with no less than $4,000,000
	187	+	10 in its guarantee fund, may, if authorized by referendum duly
	188	+	11 adopted by a majority of the voters, establish a Foreclosure
	189	+	12 Prevention Loan Fund to provide low interest emergency loans
	190	+	13 to eligible applicants that may be forced into foreclosure
	191	+	14 proceedings.
	192	+	15 Whenever the question of creating a Foreclosure Prevention
	193	+	16 Loan Fund is initiated by resolution or ordinance of the
	194	+	17 corporate authorities of the municipality or by a petition
	195	+	18 signed by not less than 10% of the total number of registered
	196	+	19 voters of each precinct in the territory, the registered
	197	+	20 voters of which are eligible to sign the petition, it shall be
	198	+	21 the duty of the election authority having jurisdiction over
	199	+	22 the municipality to submit the question of creating the
	200	+	23 program to the electors of each precinct within the territory
	201	+	24 at the regular election specified in the resolution,
	202	+	25 ordinance, or petition initiating the question. A petition
	203	+	26 initiating a question described in this subsection shall be
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	214	+	1 filed with the election authority having jurisdiction over the
	215	+	2 municipality. The petition shall be filed and objections to
	216	+	3 the petition shall be made in the manner provided in the
	217	+	4 Election Code. A resolution, ordinance, or petition initiating
	218	+	5 a question described in this subsection shall specify the
	219	+	6 election at which the question is to be submitted. The
	220	+	7 referendum on the question shall be held in accordance with
	221	+	8 the Election Code. The question shall be in substantially the
	222	+	9 following form:
	223	+	10 "Shall the (name of the home equity program) implement a
	224	+	11 Foreclosure Prevention Loan Fund with money from the guarantee
	225	+	12 fund of the established guaranteed home equity program?"
	226	+	13 The votes must be recorded as "Yes" or "No".
	227	+	14 Whenever a majority of the voters on the public question
	228	+	15 approve the creation of a Foreclosure Prevention Loan Fund as
	229	+	16 certified by the proper election authorities, the commission
	230	+	17 shall establish the program and administer the program with
	231	+	18 funds collected under the Guaranteed Home Equity Program,
	232	+	19 subject to the following conditions:
	233	+	20 (1) At any given time, the cumulative total of all
	234	+	21 loans and loan guarantees (if applicable) issued under
	235	+	22 this program may not exceed $3,000,000.
	236	+	23 (2) Only eligible applicants may apply for a loan. The
	237	+	24 Commission may establish, by resolution, additional
	238	+	25 criteria for eligibility.
	239	+	26 (3) The loan must be used to assist with preventing
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	250	+	1 foreclosure proceedings.
	251	+	2 (4) An eligible applicant may not borrow more than the
	252	+	3 amount of equity value in his or her residence.
	253	+	4 (5) A commission must ensure that loans issued are
	254	+	5 secured as a second lien on the property.
	255	+	6 (6) A commission shall charge an interest rate which
	256	+	7 it determines to be below the market rate of interest
	257	+	8 generally available to the applicant.
	258	+	9 (7) A commission may, by resolution, establish other
	259	+	10 administrative rules and procedures as are necessary to
	260	+	11 implement this program including, but not limited to,
	261	+	12 eligibility requirements for eligible applicants, loan
	262	+	13 dollar amounts, and loan terms.
	263	+	14 (8) A commission may also impose on loan applicants a
	264	+	15 one-time application fee for the purpose of defraying the
	265	+	16 costs of administering the program.
	266	+	17 (d-10) The Northwest Home Equity Assurance Program may, if
	267	+	18 authorized (i) by referendum approved by a majority of the
	268	+	19 voters or (ii) by resolution of the governing commission upon
	269	+	20 approval by two-thirds of the commissioners, establish a
	270	+	21 Delinquent Tax Repayment Loan Fund to provide low-interest
	271	+	22 emergency loans to eligible applicants.
	272	+	23 If the question of creating a Delinquent Tax Repayment
	273	+	24 Loan Fund is initiated by resolution or ordinance of the
	274	+	25 corporate authorities of the municipality or by a petition
	275	+	26 signed by not less than 10% of the total number of registered
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	286	+	1 voters of each precinct in the territory, the registered
	287	+	2 voters of which are eligible to sign the petition, it shall be
	288	+	3 the duty of the election authority having jurisdiction over
	289	+	4 the municipality to submit the question of creating the
	290	+	5 program to the electors of each precinct within the territory
	291	+	6 at the regular election specified in the resolution,
	292	+	7 ordinance, or petition initiating the question. A resolution,
	293	+	8 ordinance, or petition initiating a question described in this
	294	+	9 subsection shall be filed with the election authority having
	295	+	10 jurisdiction over the municipality. The resolution, ordinance,
	296	+	11 or petition shall be filed and objections to the resolution,
	297	+	12 ordinance, or petition shall be made in the manner provided in
	298	+	13 the Election Code. A resolution, ordinance, or petition
	299	+	14 initiating a question described in this subsection shall
	300	+	15 specify the election at which the question is to be submitted.
	301	+	16 The referendum on the question shall be held in accordance
	302	+	17 with the Election Code. The question shall be in substantially
	303	+	18 the following form:
	304	+	19 "Shall the (name of the home equity program) implement
	305	+	20 a Delinquent Tax Repayment Loan Fund with money from the
	306	+	21 guarantee fund of the Northwest Home Equity Assurance
	307	+	22 Program?"
	308	+	23 The votes must be recorded as "Yes" or "No".
	309	+	24 If a majority of the voters on the question approve the
	310	+	25 creation of a Delinquent Tax Repayment Loan Fund as certified
	311	+	26 by the proper election authorities or two-thirds of the
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	322	+	1 commissioners, by resolution, approve the creation of a
	323	+	2 Delinquent Tax Repayment Loan Fund, the commission shall
	324	+	3 establish the program and administer the program with funds
	325	+	4 collected under the program, subject to the following
	326	+	5 conditions:
	327	+	6 (1) At any given time, the cumulative total of all
	328	+	7 loans and loan guarantees (if applicable) issued under
	329	+	8 this program may not exceed $3,000,000.
	330	+	9 (2) Only eligible applicants may apply for a loan. The
	331	+	10 commission may establish, by resolution, additional
	332	+	11 criteria for eligibility.
	333	+	12 (3) The loan must be used to assist with repayment of
	334	+	13 delinquent property taxes and for those facing imminent
	335	+	14 delinquency.
	336	+	15 (4) An eligible applicant may not borrow more than the
	337	+	16 amount due to the treasurer's office.
	338	+	17 (5) A commission shall charge an interest rate which
	339	+	18 it determines to be below the market rate of interest
	340	+	19 generally available to the applicant.
	341	+	20 (6) A commission may, by resolution, establish other
	342	+	21 administrative rules and procedures as are necessary to
	343	+	22 implement this program including, but not limited to,
	344	+	23 eligibility requirements for eligible applicants, loan
	345	+	24 dollar amounts, and loan terms.
	346	+	25 (7) Where practicable, it shall be required that a
	347	+	26 borrower obtain free housing counseling services prior to
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	358	+	1 applying to this tax program for the purpose of assisting
	359	+	2 with budgeting and providing a recommendation as to
	360	+	3 whether this client is suited for this program.
	361	+	4 (8) A commission may also impose on loan applicants a
	362	+	5 one-time application fee for the purpose of defraying the
	363	+	6 costs of administering the program.
	364	+	7 (e) The guarantee fund shall be maintained, invested, and
	365	+	8 expended exclusively by the governing commission of the
	366	+	9 program for whose purposes it was created. Under no
	367	+	10 circumstance shall the guarantee fund be used by any person or
	368	+	11 persons, governmental body, or public or private agency or
	369	+	12 concern other than the governing commission of the program for
	370	+	13 whose purposes it was created. Under no circumstances shall
	371	+	14 the guarantee fund be commingled with other funds or
	372	+	15 investments.
	373	+	16 (e-1) No commissioner or family member of a commissioner,
	374	+	17 or employee or family member of an employee, may receive any
	375	+	18 financial benefit, either directly or indirectly, from the
	376	+	19 guarantee fund. Nothing in this subsection (e-1) shall be
	377	+	20 construed to prohibit payment of expenses to a commissioner in
	378	+	21 accordance with Section 4 or payment of salaries or expenses
	379	+	22 to an employee in accordance with this Section.
	380	+	23 As used in this subsection (e-1), "family member" means a
	381	+	24 spouse, child, stepchild, parent, brother, or sister of a
	382	+	25 commissioner or a child, stepchild, parent, brother, or sister
	383	+	26 of a commissioner's spouse.
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