SB1979 Engrossed

LRB095 18777 MJR 44900 b






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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 
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Illinois Homeowner's Emergency Assistance Program Act.
 
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    Section 5. Illinois Housing Development Authority; powers; 
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duties. 
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    (a) The Illinois Housing Development Authority shall have 
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the power to issue grants to residents of Illinois eligible for 
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assistance described in this Act.
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    (b) The Authority shall implement and administer the 
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program established by this Act.
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    (c) The Authority shall adopt all rules necessary for the 
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implementation and administration of this Act.
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    (d) The Authority shall provide a representative of the 
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Authority to assist the homeowner with any renegotiations under 
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this Act.
 
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    Section 10. Definitions. For purposes of this Act:
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    "Authority" means the Illinois Housing Development 
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Authority.
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    "Lender" means a natural or artificial person who 
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transfers, deals in, offers, or makes a home loan. "Lender" 
 


 






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includes, but is not limited to, creditors and brokers that 
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transfer, deal in, offer, or make home loans.
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    "Good faith" means honesty in fact in the conduct or 
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transaction concerned.
 
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    Section 15. Eligibility for assistance. 
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    (a) No assistance may be given to a person pursuant to this 
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Act unless:
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        (1) The property securing the mortgage is residential 
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    real estate.
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        (2) The person is a resident of this State and his or 
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    her property is being foreclosed due to failure to make 
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    mortgage payments.
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        (3) The lender agrees to halt foreclosure proceedings 
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    once payment under this Act is made by the State.
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        (4) The mortgage lender agrees to renegotiate in good 
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    faith the terms of the mortgage being foreclosed once 
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    payment under this Act is made by the State.
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        (5) A representative of the Authority shall assist the 
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    homeowner during the renegotiation process with the 
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    lender.
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    (b) Upon a determination that the conditions of eligibility 
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described in this Act have been met, and funds for assistance 
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are available, the homeowner shall become eligible for the 
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assistance described in Section 20 of this Act.
 
 


 






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    Section 20. Assistance payments. 
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    (a) If the Authority determines that a person is eligible 
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for assistance under this program, the Authority shall pay 
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directly to each lender payments on behalf of the person 
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seeking assistance under the program. This amount shall 
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include, but not be limited to, delinquencies of principal, 
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interest, taxes, assessments, ground rents, hazard insurance, 
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mortgage insurance, and credit insurance premiums.
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    (b) An eligible applicant may not receive a grant in excess 
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of $6,000, or the sum of 3 monthly mortgage payments on the 
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property, whichever is less.
 
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    Section 25. Program funding.  
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    (a) The Authority shall use only funds specifically 
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appropriated by the General Assembly for the purposes of this 
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Act. Assistance under this Act shall not be available at any 
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time the Authority does not have funds currently available to 
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approve applications for emergency mortgage assistance.
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    (b) This Act is subject to appropriation; however, at no 
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time shall the cumulative amount of grants issued under this 
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program exceed $3,000,000 in a calendar year.
 
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    Section 30. Repealer.  This Act is repealed on January 1, 
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2010.
 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.