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1 | | territory of the program having at
least one, but not more than |
2 | | 6 dwelling units and classified by county
ordinance as |
3 | | residential. The rate of this tax may be changed from year to
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4 | | year by majority vote of the governing commission but in no |
5 | | case shall it
exceed a rate of .12% of the equalized assessed |
6 | | valuation of all property
in the territory of the program |
7 | | having at least one, but not
more than 6 dwelling units and |
8 | | classified by county ordinance as
residential, or the maximum |
9 | | tax rate approved by the voters of the
territory at the |
10 | | referendum which created the program
or, in the case of a |
11 | | merged program, the maximum tax rate approved by
the voters at |
12 | | the referendum authorizing the merger, whichever rate is
lower. |
13 | | The commissioners shall cause the amount to be
raised by |
14 | | taxation in each year to be certified to the county clerk in |
15 | | the
manner provided by law, and any tax so levied and certified |
16 | | shall be
collected and enforced in the same manner and by the |
17 | | same officers as those
taxes for the purposes of the county and |
18 | | city within which the territory of
the commission is located. |
19 | | Any such tax, when collected, shall be paid
over to the proper |
20 | | officer of the commission who is authorized to receive
and |
21 | | receipt for such tax. The governing commission may issue tax
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22 | | anticipation warrants against the taxes to be assessed for the |
23 | | calendar
year in which the program is created and for the first |
24 | | full calendar year
after the creation of the program.
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25 | | (c) The moneys deposited in the guarantee fund shall, as |
26 | | nearly as
practicable, be fully and continuously invested or |
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1 | | reinvested by the
governing commission in investment |
2 | | obligations which shall be in such
amounts, and shall mature at |
3 | | such times, that the maturity or date of
redemption at the |
4 | | option of the holder of such investment obligations shall
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5 | | coincide, as nearly as practicable, with the times at which |
6 | | monies will be
required for the purposes of the program. For |
7 | | the purposes of this
Section investment obligation shall mean |
8 | | direct general municipal, state,
or federal obligations which |
9 | | at the time are legal investments under the
laws of this State |
10 | | and the payment of principal of and interest on which
are |
11 | | unconditionally guaranteed by the governing body issuing them.
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12 | | (d) Except as permitted by this subsection and subsection |
13 | | (d-5),
the guarantee fund shall be used solely and exclusively |
14 | | for the
purpose of providing guarantees to members of the |
15 | | particular Guaranteed
Home Equity Program and for reasonable |
16 | | salaries, expenses, bills,
and fees incurred in administering |
17 | | the program, and shall be used for no other
purpose.
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18 | | A governing commission, with no less than $4,000,000 in its |
19 | | guarantee
fund,
may, if authorized by referendum duly adopted |
20 | | by a majority of the voters,
establish a Low
Interest
Home |
21 | | Improvement Loan Program in accordance with and subject to |
22 | | procedures
established by a financial institution, as defined |
23 | | in the Illinois Banking Act.
Whenever
the question of creating |
24 | | a Low Interest Home Improvement Loan Program is
initiated by
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25 | | resolution or ordinance of the corporate authorities of the |
26 | | municipality or by
a petition
signed by not less than 10% of |
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1 | | the total number of registered voters of each
precinct in
the |
2 | | territory, the registered voters of which are eligible to sign |
3 | | the
petition, it shall be the
duty of the election authority |
4 | | having jurisdiction over the municipality to
submit the
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5 | | question of creating the program to the electors of each |
6 | | precinct within the
territory at
the regular election specified |
7 | | in the resolution, ordinance, or petition
initiating the
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8 | | question. A petition initiating a question described in this |
9 | | subsection shall
be filed with
the election authority having |
10 | | jurisdiction over the municipality. The petition
shall be filed
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11 | | and objections to the petition shall be made in the manner |
12 | | provided in the
Election Code.
A resolution, ordinance, or |
13 | | petition initiating a question described in this
subsection |
14 | | shall
specify the election at which the question is to be |
15 | | submitted. The referendum
on the
question shall be held in |
16 | | accordance with the Election Code. The question
shall be in |
17 | | substantially the
following form:
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18 | | "Shall the (name of the home equity program) implement |
19 | | a Low Interest Home
Improvement Loan Program with money |
20 | | from the guarantee fund of the established
guaranteed home |
21 | | equity program?"
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22 | | The votes must be recorded as "Yes" or "No".
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23 | | Whenever a majority of the voters on the public question |
24 | | approve the
creation of
the program as certified by the proper |
25 | | election authorities, the commission
shall
establish the |
26 | | program and administer the program with funds collected under |
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1 | | the
Guaranteed Home Equity
Program, subject to the following |
2 | | conditions:
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3 | | (1) At any given time, the cumulative total of all |
4 | | loans and loan
guarantees
(if applicable) issued under this |
5 | | program may not reduce the balance of the
guarantee
fund to |
6 | | less than $3,000,000.
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7 | | (2) Only eligible applicants may apply for a
loan.
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8 | | (3) The loan must be used for the repair, maintenance, |
9 | | remodeling,
alteration, or improvement of a guaranteed |
10 | | residence. This condition is intended to include the repair |
11 | | or maintenance of a guaranteed residence's water and sewer |
12 | | pipes and repair of a guaranteed residence, including but |
13 | | not limited to basement repairs, following flooding damage |
14 | | to the property. This condition is not
intended to exclude |
15 | | the repair, maintenance, remodeling, alteration, or
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16 | | improvement of a guaranteed residence's landscape. This |
17 | | condition is intended
to exclude the demolition of a |
18 | | current residence. This condition is also
intended to |
19 | | exclude
the construction of a new residence.
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20 | | (4) An eligible applicant may not borrow more than the |
21 | | amount of equity
value in his or her residence.
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22 | | (5) A commission must ensure that loans issued are |
23 | | secured with
collateral that is at least equal to the |
24 | | amount of the loan or loan guarantee.
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25 | | (6) A commission shall charge an interest rate which it |
26 | | determines to be
below the market rate of interest |
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1 | | generally available to the applicant.
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2 | | (7) A commission may, by resolution, establish other |
3 | | administrative
rules and procedures as are necessary to |
4 | | implement this program including, but
not limited to, loan |
5 | | dollar amounts and terms. A commission may also impose
on |
6 | | loan applicants a one-time application fee for the purpose |
7 | | of defraying the
costs of administering the program.
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8 | | (d-5) A governing commission, with no less than $4,000,000 |
9 | | in its guarantee fund, may, if authorized by referendum duly |
10 | | adopted by a majority of the voters, establish a Foreclosure |
11 | | Prevention Loan Fund to provide low interest emergency loans to |
12 | | eligible applicants that may be forced into foreclosure |
13 | | proceedings. |
14 | | Whenever the question of creating a Foreclosure Prevention |
15 | | Loan Fund is initiated by resolution or ordinance of the |
16 | | corporate authorities of the municipality or by a petition |
17 | | signed by not less than 10% of the total number of registered |
18 | | voters of each precinct in the territory, the registered voters |
19 | | of which are eligible to sign the petition, it shall be the |
20 | | duty of the election authority having jurisdiction over the |
21 | | municipality to submit the question of creating the program to |
22 | | the electors of each precinct within the territory at the |
23 | | regular election specified in the resolution, ordinance, or |
24 | | petition initiating the question. A petition initiating a |
25 | | question described in this subsection shall be filed with the |
26 | | election authority having jurisdiction over the municipality. |
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1 | | The petition shall be filed and objections to the petition |
2 | | shall be made in the manner provided in the Election Code. A |
3 | | resolution, ordinance, or petition initiating a question |
4 | | described in this subsection shall specify the election at |
5 | | which the question is to be submitted. The referendum on the |
6 | | question shall be held in accordance with the Election Code. |
7 | | The question shall be in substantially the following form: |
8 | | "Shall the (name of the home equity program) implement a |
9 | | Foreclosure Prevention Loan Fund with money from the guarantee |
10 | | fund of the established guaranteed home equity program?" |
11 | | The votes must be recorded as "Yes" or "No". |
12 | | Whenever a majority of the voters on the public question |
13 | | approve the creation of a Foreclosure Prevention Loan Fund as |
14 | | certified by the proper election authorities, the commission |
15 | | shall establish the program and administer the program with |
16 | | funds collected under the Guaranteed Home Equity Program, |
17 | | subject to the following conditions: |
18 | | (1) At any given time, the cumulative total of all |
19 | | loans and loan guarantees (if applicable) issued under this |
20 | | program may not exceed $3,000,000. |
21 | | (2) Only eligible applicants may apply for a loan. The |
22 | | Commission may establish, by resolution, additional |
23 | | criteria for eligibility. |
24 | | (3) The loan must be used to assist with preventing |
25 | | foreclosure proceedings. |
26 | | (4) An eligible applicant may not borrow more than the |
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1 | | amount of equity value in his or her residence. |
2 | | (5) A commission must ensure that loans issued are |
3 | | secured as a second lien on the property. |
4 | | (6) A commission shall charge an interest rate which it |
5 | | determines to be below the market rate of interest |
6 | | generally available to the applicant. |
7 | | (7) A commission may, by resolution, establish other |
8 | | administrative rules and procedures as are necessary to |
9 | | implement this program including, but not limited to, |
10 | | eligibility requirements for eligible applicants, loan |
11 | | dollar amounts, and loan terms. |
12 | | (8) A commission may also impose on loan applicants a |
13 | | one-time application fee for the purpose of defraying the |
14 | | costs of administering the program. |
15 | | (e) The guarantee fund shall be maintained, invested, and |
16 | | expended
exclusively by the governing commission of the program |
17 | | for whose purposes
it was created. Under no circumstance shall |
18 | | the guarantee fund be used by
any person or persons, |
19 | | governmental body, or public or private agency or
concern other |
20 | | than the governing commission of the program for whose
purposes |
21 | | it was created. Under no circumstances shall the guarantee fund |
22 | | be
commingled with other funds or investments.
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23 | | (e-1) No commissioner or family member of a commissioner, |
24 | | or employee or
family member of an employee, may receive any
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25 | | financial benefit, either directly or indirectly, from the |
26 | | guarantee fund.
Nothing in this subsection (e-1) shall be |
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1 | | construed to prohibit payment of
expenses to a commissioner in |
2 | | accordance with Section 4 or payment of salaries
or expenses to |
3 | | an employee in accordance with this Section.
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4 | | As used in this subsection (e-1), "family member" means a |
5 | | spouse, child,
stepchild, parent, brother, or sister of a |
6 | | commissioner or a child, stepchild,
parent, brother, or sister |
7 | | of a commissioner's spouse.
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8 | | (f) An independent audit of the guarantee fund and the |
9 | | management of the
program shall be conducted annually and made |
10 | | available to the public
through any office of the governing |
11 | | commission or a public facility such as
a local public library |
12 | | located within the territory of the program.
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13 | | (Source: P.A. 95-691, eff. 6-1-08 .)".
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