HB2614 EnrolledLRB102 16892 AWJ 22303 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Home Equity Assurance Act is amended by
5changing Section 11 as follows:
 
6    (65 ILCS 95/11)  (from Ch. 24, par. 1611)
7    Sec. 11. Guarantee Fund.
8    (a) Each governing commission and program created by
9referendum under the provisions of this Act shall maintain a
10guarantee fund for the purposes of paying the costs of
11administering the program and extending protection to members
12pursuant to the limitations and procedures set forth in this
13Act.
14    (b) The guarantee fund shall be raised by means of an
15annual tax levied on all residential property within the
16territory of the program having at least one, but not more than
176 dwelling units and classified by county ordinance as
18residential. The rate of this tax may be changed from year to
19year by majority vote of the governing commission but in no
20case shall it exceed a rate of .12% of the equalized assessed
21valuation of all property in the territory of the program
22having at least one, but not more than 6 dwelling units and
23classified by county ordinance as residential, or the maximum

 

 

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1tax rate approved by the voters of the territory at the
2referendum which created the program or, in the case of a
3merged program, the maximum tax rate approved by the voters at
4the referendum authorizing the merger, whichever rate is
5lower. The commissioners shall cause the amount to be raised
6by taxation in each year to be certified to the county clerk in
7the manner provided by law, and any tax so levied and certified
8shall be collected and enforced in the same manner and by the
9same officers as those taxes for the purposes of the county and
10city within which the territory of the commission is located.
11Any such tax, when collected, shall be paid over to the proper
12officer of the commission who is authorized to receive and
13receipt for such tax. The governing commission may issue tax
14anticipation warrants against the taxes to be assessed for the
15calendar year in which the program is created and for the first
16full calendar year after the creation of the program.
17    (c) The moneys deposited in the guarantee fund shall, as
18nearly as practicable, be fully and continuously invested or
19reinvested by the governing commission in investment
20obligations which shall be in such amounts, and shall mature
21at such times, that the maturity or date of redemption at the
22option of the holder of such investment obligations shall
23coincide, as nearly as practicable, with the times at which
24monies will be required for the purposes of the program. For
25the purposes of this Section investment obligation shall mean
26direct general municipal, state, or federal obligations which

 

 

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1at the time are legal investments under the laws of this State
2and the payment of principal of and interest on which are
3unconditionally guaranteed by the governing body issuing them.
4    (d) Except as permitted by this subsection and subsection
5(d-5), the guarantee fund shall be used solely and exclusively
6for the purpose of providing guarantees to members of the
7particular Guaranteed Home Equity Program and for reasonable
8salaries, expenses, bills, and fees incurred in administering
9the program, and shall be used for no other purpose.
10    A governing commission, with no less than $4,000,000 in
11its guarantee fund, may, if authorized (i) by referendum duly
12adopted by a majority of the voters or (ii) by resolution of
13the governing commission upon approval by two-thirds of the
14commissioners, establish a Low Interest Home Improvement Loan
15Program in accordance with and subject to procedures
16established by a financial institution, as defined in the
17Illinois Banking Act. Whenever the question of creating a Low
18Interest Home Improvement Loan Program is initiated by
19resolution or ordinance of the corporate authorities of the
20municipality or by a petition signed by not less than 10% of
21the total number of registered voters of each precinct in the
22territory, the registered voters of which are eligible to sign
23the petition, it shall be the duty of the election authority
24having jurisdiction over the municipality to submit the
25question of creating the program to the electors of each
26precinct within the territory at the regular election

 

 

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1specified in the resolution, ordinance, or petition initiating
2the question. A petition initiating a question described in
3this subsection shall be filed with the election authority
4having jurisdiction over the municipality. The petition shall
5be filed and objections to the petition shall be made in the
6manner provided in the Election Code. A resolution, ordinance,
7or petition initiating a question described in this subsection
8shall specify the election at which the question is to be
9submitted. The referendum on the question shall be held in
10accordance with the Election Code. The question shall be in
11substantially the following form:
12        "Shall the (name of the home equity program) implement
13    a Low Interest Home Improvement Loan Program with money
14    from the guarantee fund of the established guaranteed home
15    equity program?"
16The votes must be recorded as "Yes" or "No".
17    Whenever a majority of the voters on the public question
18approve the creation of the program as certified by the proper
19election authorities or a resolution of the governing
20commission is approved by a two-thirds majority, the
21commission shall establish the program and administer the
22program with funds collected under the Guaranteed Home Equity
23Program, subject to the following conditions:
24        (1) At any given time, the cumulative total of all
25    loans and loan guarantees (if applicable) issued under
26    this program may not reduce the balance of the guarantee

 

 

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1    fund to less than $3,000,000.
2        (2) Only eligible applicants may apply for a loan.
3        (3) The loan must be used for the repair, maintenance,
4    remodeling, alteration, or improvement of a guaranteed
5    residence. This condition is intended to include the
6    repair or maintenance of a guaranteed residence's water
7    and sewer pipes and repair of a guaranteed residence,
8    including but not limited to basement repairs, following
9    flooding damage to the property. This condition is not
10    intended to exclude the repair, maintenance, remodeling,
11    alteration, or improvement of a guaranteed residence's
12    landscape. This condition is intended to exclude the
13    demolition of a current residence. This condition is also
14    intended to exclude the construction of a new residence.
15        (4) An eligible applicant may not borrow more than the
16    amount of equity value in his or her residence.
17        (5) A commission must ensure that loans issued are
18    secured with collateral that is at least equal to the
19    amount of the loan or loan guarantee.
20        (6) A commission shall charge an interest rate which
21    it determines to be below the market rate of interest
22    generally available to the applicant.
23        (7) A commission may, by resolution, establish other
24    administrative rules and procedures as are necessary to
25    implement this program including, but not limited to, loan
26    dollar amounts and terms. A commission may also impose on

 

 

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1    loan applicants a one-time application fee for the purpose
2    of defraying the costs of administering the program.
3    (d-5) A governing commission, with no less than $4,000,000
4in its guarantee fund, may, if authorized by referendum duly
5adopted by a majority of the voters, establish a Foreclosure
6Prevention Loan Fund to provide low interest emergency loans
7to eligible applicants that may be forced into foreclosure
8proceedings.
9    Whenever the question of creating a Foreclosure Prevention
10Loan Fund is initiated by resolution or ordinance of the
11corporate authorities of the municipality or by a petition
12signed by not less than 10% of the total number of registered
13voters of each precinct in the territory, the registered
14voters of which are eligible to sign the petition, it shall be
15the duty of the election authority having jurisdiction over
16the municipality to submit the question of creating the
17program to the electors of each precinct within the territory
18at the regular election specified in the resolution,
19ordinance, or petition initiating the question. A petition
20initiating a question described in this subsection shall be
21filed with the election authority having jurisdiction over the
22municipality. The petition shall be filed and objections to
23the petition shall be made in the manner provided in the
24Election Code. A resolution, ordinance, or petition initiating
25a question described in this subsection shall specify the
26election at which the question is to be submitted. The

 

 

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1referendum on the question shall be held in accordance with
2the Election Code. The question shall be in substantially the
3following form:
4    "Shall the (name of the home equity program) implement a
5Foreclosure Prevention Loan Fund with money from the guarantee
6fund of the established guaranteed home equity program?"
7    The votes must be recorded as "Yes" or "No".
8    Whenever a majority of the voters on the public question
9approve the creation of a Foreclosure Prevention Loan Fund as
10certified by the proper election authorities, the commission
11shall establish the program and administer the program with
12funds collected under the Guaranteed Home Equity Program,
13subject to the following conditions:
14        (1) At any given time, the cumulative total of all
15    loans and loan guarantees (if applicable) issued under
16    this program may not exceed $3,000,000.
17        (2) Only eligible applicants may apply for a loan. The
18    Commission may establish, by resolution, additional
19    criteria for eligibility.
20        (3) The loan must be used to assist with preventing
21    foreclosure proceedings.
22        (4) An eligible applicant may not borrow more than the
23    amount of equity value in his or her residence.
24        (5) A commission must ensure that loans issued are
25    secured as a second lien on the property.
26        (6) A commission shall charge an interest rate which

 

 

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1    it determines to be below the market rate of interest
2    generally available to the applicant.
3        (7) A commission may, by resolution, establish other
4    administrative rules and procedures as are necessary to
5    implement this program including, but not limited to,
6    eligibility requirements for eligible applicants, loan
7    dollar amounts, and loan terms.
8        (8) A commission may also impose on loan applicants a
9    one-time application fee for the purpose of defraying the
10    costs of administering the program.
11    (d-10) The Northwest Home Equity Assurance Program may, if
12authorized (i) by referendum approved by a majority of the
13voters or (ii) by resolution of the governing commission upon
14approval by two-thirds of the commissioners, establish a
15Delinquent Tax Repayment Loan Fund to provide low-interest
16emergency loans to eligible applicants.
17    If the question of creating a Delinquent Tax Repayment
18Loan Fund is initiated by resolution or ordinance of the
19corporate authorities of the municipality or by a petition
20signed by not less than 10% of the total number of registered
21voters of each precinct in the territory, the registered
22voters of which are eligible to sign the petition, it shall be
23the duty of the election authority having jurisdiction over
24the municipality to submit the question of creating the
25program to the electors of each precinct within the territory
26at the regular election specified in the resolution,

 

 

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1ordinance, or petition initiating the question. A resolution,
2ordinance, or petition initiating a question described in this
3subsection shall be filed with the election authority having
4jurisdiction over the municipality. The resolution, ordinance,
5or petition shall be filed and objections to the resolution,
6ordinance, or petition shall be made in the manner provided in
7the Election Code. A resolution, ordinance, or petition
8initiating a question described in this subsection shall
9specify the election at which the question is to be submitted.
10The referendum on the question shall be held in accordance
11with the Election Code. The question shall be in substantially
12the following form:
13        "Shall the (name of the home equity program) implement
14    a Delinquent Tax Repayment Loan Fund with money from the
15    guarantee fund of the Northwest Home Equity Assurance
16    Program?"
17        The votes must be recorded as "Yes" or "No".
18    If a majority of the voters on the question approve the
19creation of a Delinquent Tax Repayment Loan Fund as certified
20by the proper election authorities or two-thirds of the
21commissioners, by resolution, approve the creation of a
22Delinquent Tax Repayment Loan Fund, the commission shall
23establish the program and administer the program with funds
24collected under the program, subject to the following
25conditions:
26        (1) At any given time, the cumulative total of all

 

 

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1    loans and loan guarantees (if applicable) issued under
2    this program may not exceed $3,000,000.
3        (2) Only eligible applicants may apply for a loan. The
4    Commission may establish, by resolution, additional
5    criteria for eligibility.
6        (3) The loan must be used to assist with repayment of
7    delinquent property taxes and for those facing imminent
8    delinquency.
9        (4) An eligible applicant may not borrow more than the
10    amount due to the treasurer's office.
11        (5) A commission shall charge an interest rate which
12    it determines to be below the market rate of interest
13    generally available to the applicant.
14        (6) A commission may, by resolution, establish other
15    administrative rules and procedures as are necessary to
16    implement this program including, but not limited to,
17    eligibility requirements for eligible applicants, loan
18    dollar amounts, and loan terms.
19        (7) Where practicable, it shall be required that a
20    borrower obtain free housing counseling services prior to
21    applying to this tax program for the purpose of assisting
22    with budgeting and providing a recommendation as to
23    whether this client is suited for this program.
24        (8) A commission may also impose on loan applicants a
25    one-time application fee for the purpose of defraying the
26    costs of administering the program.

 

 

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1    (e) The guarantee fund shall be maintained, invested, and
2expended exclusively by the governing commission of the
3program for whose purposes it was created. Under no
4circumstance shall the guarantee fund be used by any person or
5persons, governmental body, or public or private agency or
6concern other than the governing commission of the program for
7whose purposes it was created. Under no circumstances shall
8the guarantee fund be commingled with other funds or
9investments.
10    (e-1) No commissioner or family member of a commissioner,
11or employee or family member of an employee, may receive any
12financial benefit, either directly or indirectly, from the
13guarantee fund. Nothing in this subsection (e-1) shall be
14construed to prohibit payment of expenses to a commissioner in
15accordance with Section 4 or payment of salaries or expenses
16to an employee in accordance with this Section.
17    As used in this subsection (e-1), "family member" means a
18spouse, child, stepchild, parent, brother, or sister of a
19commissioner or a child, stepchild, parent, brother, or sister
20of a commissioner's spouse.
21    (f) An independent audit of the guarantee fund and the
22management of the program shall be conducted annually and made
23available to the public through any office of the governing
24commission or a public facility such as a local public library
25located within the territory of the program.
26(Source: P.A. 98-1160, eff. 6-1-15; 99-37, eff. 1-1-16.)