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1 | | AN ACT concerning local government.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Home Equity Assurance Act is amended by |
5 | | changing Section 11 as follows:
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6 | | (65 ILCS 95/11) (from Ch. 24, par. 1611)
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7 | | Sec. 11. Guarantee Fund.
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8 | | (a) Each governing commission and program
created by |
9 | | referendum under the provisions of this Act shall maintain a
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10 | | guarantee fund for the purposes of paying the costs of |
11 | | administering the
program and extending protection to members |
12 | | pursuant to the limitations and
procedures set forth in this |
13 | | Act.
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14 | | (b) The guarantee fund shall be raised by means of an |
15 | | annual tax levied
on all residential property within the |
16 | | territory of the program having at
least one, but not more than |
17 | | 6 dwelling units and classified by county
ordinance as |
18 | | residential. The rate of this tax may be changed from year to
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19 | | year by majority vote of the governing commission but in no |
20 | | case shall it
exceed a rate of .12% of the equalized assessed |
21 | | valuation of all property
in the territory of the program |
22 | | having at least one, but not
more than 6 dwelling units and |
23 | | classified by county ordinance as
residential, or the maximum |
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1 | | tax rate approved by the voters of the
territory at the |
2 | | referendum which created the program
or, in the case of a |
3 | | merged program, the maximum tax rate approved by
the voters at |
4 | | the referendum authorizing the merger, whichever rate is
lower. |
5 | | The commissioners shall cause the amount to be
raised by |
6 | | taxation in each year to be certified to the county clerk in |
7 | | the
manner provided by law, and any tax so levied and certified |
8 | | shall be
collected and enforced in the same manner and by the |
9 | | same officers as those
taxes for the purposes of the county and |
10 | | city within which the territory of
the commission is located. |
11 | | Any such tax, when collected, shall be paid
over to the proper |
12 | | officer of the commission who is authorized to receive
and |
13 | | receipt for such tax. The governing commission may issue tax
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14 | | anticipation warrants against the taxes to be assessed for the |
15 | | calendar
year in which the program is created and for the first |
16 | | full calendar year
after the creation of the program.
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17 | | (c) The moneys deposited in the guarantee fund shall, as |
18 | | nearly as
practicable, be fully and continuously invested or |
19 | | reinvested by the
governing commission in investment |
20 | | obligations which shall be in such
amounts, and shall mature at |
21 | | such times, that the maturity or date of
redemption at the |
22 | | option of the holder of such investment obligations shall
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23 | | coincide, as nearly as practicable, with the times at which |
24 | | monies will be
required for the purposes of the program. For |
25 | | the purposes of this
Section investment obligation shall mean |
26 | | direct general municipal, state,
or federal obligations which |
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1 | | at the time are legal investments under the
laws of this State |
2 | | and the payment of principal of and interest on which
are |
3 | | unconditionally guaranteed by the governing body issuing them.
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4 | | (d) Except as permitted by this subsection and subsection |
5 | | (d-5),
the guarantee fund shall be used solely and exclusively |
6 | | for the
purpose of providing guarantees to members of the |
7 | | particular Guaranteed
Home Equity Program and for reasonable |
8 | | salaries, expenses, bills,
and fees incurred in administering |
9 | | the program, and shall be used for no other
purpose.
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10 | | A governing commission, with no less than $4,000,000 in its |
11 | | guarantee
fund,
may, if authorized by referendum duly adopted |
12 | | by a majority of the voters,
establish a Low
Interest
Home |
13 | | Improvement Loan Program in accordance with and subject to |
14 | | procedures
established by a financial institution, as defined |
15 | | in the Illinois Banking Act.
Whenever
the question of creating |
16 | | a Low Interest Home Improvement Loan Program is
initiated by
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17 | | resolution or ordinance of the corporate authorities of the |
18 | | municipality or by
a petition
signed by not less than 10% of |
19 | | the total number of registered voters of each
precinct in
the |
20 | | territory, the registered voters of which are eligible to sign |
21 | | the
petition, it shall be the
duty of the election authority |
22 | | having jurisdiction over the municipality to
submit the
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23 | | question of creating the program to the electors of each |
24 | | precinct within the
territory at
the regular election specified |
25 | | in the resolution, ordinance, or petition
initiating the
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26 | | question. A petition initiating a question described in this |
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1 | | subsection shall
be filed with
the election authority having |
2 | | jurisdiction over the municipality. The petition
shall be filed
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3 | | and objections to the petition shall be made in the manner |
4 | | provided in the
Election Code.
A resolution, ordinance, or |
5 | | petition initiating a question described in this
subsection |
6 | | shall
specify the election at which the question is to be |
7 | | submitted. The referendum
on the
question shall be held in |
8 | | accordance with the Election Code. The question
shall be in |
9 | | substantially the
following form:
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10 | | "Shall the (name of the home equity program) implement |
11 | | a Low Interest Home
Improvement Loan Program with money |
12 | | from the guarantee fund of the established
guaranteed home |
13 | | equity program?"
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14 | | The votes must be recorded as "Yes" or "No".
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15 | | Whenever a majority of the voters on the public question |
16 | | approve the
creation of
the program as certified by the proper |
17 | | election authorities, the commission
shall
establish the |
18 | | program and administer the program with funds collected under |
19 | | the
Guaranteed Home Equity
Program, subject to the following |
20 | | conditions:
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21 | | (1) At any given time, the cumulative total of all |
22 | | loans and loan
guarantees
(if applicable) issued under this |
23 | | program may not reduce the balance of the
guarantee
fund to |
24 | | less than $3,000,000.
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25 | | (2) Only eligible applicants may apply for a
loan.
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26 | | (3) The loan must be used for the repair, maintenance, |
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1 | | remodeling,
alteration, or improvement of a guaranteed |
2 | | residence. This condition is intended to include the repair |
3 | | or maintenance of a guaranteed residence's water and sewer |
4 | | pipes and repair of a guaranteed residence, including but |
5 | | not limited to basement repairs, following flooding damage |
6 | | to the property. This condition is not
intended to exclude |
7 | | the repair, maintenance, remodeling, alteration, or
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8 | | improvement of a guaranteed residence's landscape. This |
9 | | condition is intended
to exclude the demolition of a |
10 | | current residence. This condition is also
intended to |
11 | | exclude
the construction of a new residence.
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12 | | (4) An eligible applicant may not borrow more than the |
13 | | amount of equity
value in his or her residence.
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14 | | (5) A commission must ensure that loans issued are |
15 | | secured with
collateral that is at least equal to the |
16 | | amount of the loan or loan guarantee.
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17 | | (6) A commission shall charge an interest rate which it |
18 | | determines to be
below the market rate of interest |
19 | | generally available to the applicant.
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20 | | (7) A commission may, by resolution, establish other |
21 | | administrative
rules and procedures as are necessary to |
22 | | implement this program including, but
not limited to, loan |
23 | | dollar amounts and terms. A commission may also impose
on |
24 | | loan applicants a one-time application fee for the purpose |
25 | | of defraying the
costs of administering the program.
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26 | | (d-5) A governing commission, with no less than $4,000,000 |
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1 | | in its guarantee fund, may, if authorized by referendum duly |
2 | | adopted by a majority of the voters, establish a Foreclosure |
3 | | Prevention Loan Fund to provide low interest emergency loans to |
4 | | eligible applicants that may be forced into foreclosure |
5 | | proceedings. |
6 | | Whenever the question of creating a Foreclosure Prevention |
7 | | Loan Fund is initiated by resolution or ordinance of the |
8 | | corporate authorities of the municipality or by a petition |
9 | | signed by not less than 10% of the total number of registered |
10 | | voters of each precinct in the territory, the registered voters |
11 | | of which are eligible to sign the petition, it shall be the |
12 | | duty of the election authority having jurisdiction over the |
13 | | municipality to submit the question of creating the program to |
14 | | the electors of each precinct within the territory at the |
15 | | regular election specified in the resolution, ordinance, or |
16 | | petition initiating the question. A petition initiating a |
17 | | question described in this subsection shall be filed with the |
18 | | election authority having jurisdiction over the municipality. |
19 | | The petition shall be filed and objections to the petition |
20 | | shall be made in the manner provided in the Election Code. A |
21 | | resolution, ordinance, or petition initiating a question |
22 | | described in this subsection shall specify the election at |
23 | | which the question is to be submitted. The referendum on the |
24 | | question shall be held in accordance with the Election Code. |
25 | | The question shall be in substantially the following form: |
26 | | "Shall the (name of the home equity program) implement a |
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1 | | Foreclosure Prevention Loan Fund with money from the guarantee |
2 | | fund of the established guaranteed home equity program?" |
3 | | The votes must be recorded as "Yes" or "No". |
4 | | Whenever a majority of the voters on the public question |
5 | | approve the creation of a Foreclosure Prevention Loan Fund as |
6 | | certified by the proper election authorities, the commission |
7 | | shall establish the program and administer the program with |
8 | | funds collected under the Guaranteed Home Equity Program, |
9 | | subject to the following conditions: |
10 | | (1) At any given time, the cumulative total of all |
11 | | loans and loan guarantees (if applicable) issued under this |
12 | | program may not exceed $3,000,000. |
13 | | (2) Only eligible applicants may apply for a loan. The |
14 | | Commission may establish, by resolution, additional |
15 | | criteria for eligibility. |
16 | | (3) The loan must be used to assist with preventing |
17 | | foreclosure proceedings. |
18 | | (4) An eligible applicant may not borrow more than the |
19 | | amount of equity value in his or her residence. |
20 | | (5) A commission must ensure that loans issued are |
21 | | secured as a second lien on the property. |
22 | | (6) A commission shall charge an interest rate which it |
23 | | determines to be below the market rate of interest |
24 | | generally available to the applicant. |
25 | | (7) A commission may, by resolution, establish other |
26 | | administrative rules and procedures as are necessary to |
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1 | | implement this program including, but not limited to, |
2 | | eligibility requirements for eligible applicants, loan |
3 | | dollar amounts, and loan terms. |
4 | | (8) A commission may also impose on loan applicants a |
5 | | one-time application fee for the purpose of defraying the |
6 | | costs of administering the program. |
7 | | (e) The guarantee fund shall be maintained, invested, and |
8 | | expended
exclusively by the governing commission of the program |
9 | | for whose purposes
it was created. Under no circumstance shall |
10 | | the guarantee fund be used by
any person or persons, |
11 | | governmental body, or public or private agency or
concern other |
12 | | than the governing commission of the program for whose
purposes |
13 | | it was created. Under no circumstances shall the guarantee fund |
14 | | be
commingled with other funds or investments.
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15 | | (e-1) No commissioner or family member of a commissioner, |
16 | | or employee or
family member of an employee, may receive any
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17 | | financial benefit, either directly or indirectly, from the |
18 | | guarantee fund.
Nothing in this subsection (e-1) shall be |
19 | | construed to prohibit payment of
expenses to a commissioner in |
20 | | accordance with Section 4 or payment of salaries
or expenses to |
21 | | an employee in accordance with this Section.
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22 | | As used in this subsection (e-1), "family member" means a |
23 | | spouse, child,
stepchild, parent, brother, or sister of a |
24 | | commissioner or a child, stepchild,
parent, brother, or sister |
25 | | of a commissioner's spouse.
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26 | | (f) An independent audit of the guarantee fund and the |