HB4154 102ND GENERAL ASSEMBLY

LRB102 20059 LNS 28902 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4154

Introduced 10/19/2021, by Rep. La Shawn K. Ford and Michelle Mussman

SYNOPSIS AS INTRODUCED:

735 ILCS 5/Art. XV Pt. 18 heading new
735 ILCS 5/15-1801 new

Amends the Code of Civil Procedure. Allows the Illinois Housing Development Authority to issue a one-time loan of up to $25,000 to pay delinquent escrow payments or property tax payments in forbearance accrued between March 17, 2021 through September 30, 2021 for homeowners who participated in the federal COVID-19 mortgage forbearance program under the Coronavirus Aid, Relief, and Economic Security Act. Allows a homeowner to apply to for the loan if the homeowner: has participated in the federal COVID-19 mortgage forbearance program; is delinquent in escrow payments or property tax payments to the mortgage lender; and has enrolled in or has the ability to enroll in a remediation process with the homeowner's mortgage servicer to bring the mortgage out of forbearance. Requires the Illinois Housing Development Authority to: determine the amount to be issued to the homeowner based on the application submitted by the homeowner; place a lien on the property for which the homeowner is delinquent on payments; and forgive the loan after 3 years if the homeowner is not in arrears on the loan. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Code of Civil Procedure is amended by adding Part 18 to Article XV as follows:

(735 ILCS 5/Art. XV Pt. 18 heading new)

Part 18. COVID-19 Mortgage Forbearance Program Loan

(735 ILCS 5/15-1801 new)

Sec. 15-1801. Federal COVID-19 mortgage forbearance program loan.

(a) The Illinois Housing Development Authority may issue a one-time loan of up to $25,000 to pay delinquent escrow payments or property tax payments in forbearance accrued between March 17, 2021 through September 30, 2021 for homeowners who participated in the federal COVID-19 mortgage forbearance program under the Coronavirus Aid, Relief, and Economic Security Act.

(b) A homeowner may apply to the Illinois Housing Development Authority for a loan only if the homeowner:

(1) has participated in the federal COVID-19 mortgage forbearance program under the Coronavirus Aid, Relief, and Economic Security Act;

(2) is delinquent in escrow payments or property tax payments to the mortgage lender; and

(3) has enrolled in or has the ability to enroll in a remediation process with the homeowner's mortgage servicer to bring the mortgage out of forbearance.

(c) The Illinois Housing Development Authority shall determine the amount to be issued to the homeowner based on the application submitted by the homeowner. The amount shall be made payable to (i) the mortgagee or homeowner and (ii) either the mortgage servicer or the county in which the homeowner resides.

(d) The Illinois Housing Development Authority shall place a lien on the property for which the homeowner is delinquent on payments.

(e) The amount due on the loan shall decrease in a simple percentage calculation.

(f) The Illinois Housing Development Authority shall forgive the loan after 3 years if the homeowner is not in arrears on the loan.

(g) The money for the loan shall come from federal Coronavirus Relief Fund moneys made available for the loan program.

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