Full Text of HB2614 102nd General Assembly
HB2614enr 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Home Equity Assurance Act is amended by | 5 | | changing 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 | 9 | | referendum under the provisions of this Act shall maintain a
| 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.
| 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
| 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
| 5 | | lower. The commissioners shall cause the amount to be
raised | 6 | | by 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
| 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.
| 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 | 21 | | at such times, that the maturity or date of
redemption at the | 22 | | option of the holder of such investment obligations shall
| 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.
| 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.
| 10 | | A governing commission, with no less than $4,000,000 in | 11 | | its guarantee
fund,
may, if authorized (i) by referendum duly | 12 | | adopted by a majority of the voters or (ii) by resolution of | 13 | | the governing commission upon approval by two-thirds of the | 14 | | commissioners,
establish a Low
Interest
Home Improvement Loan | 15 | | Program in accordance with and subject to procedures
| 16 | | established by a financial institution, as defined in the | 17 | | Illinois Banking Act.
Whenever
the question of creating a Low | 18 | | Interest Home Improvement Loan Program is
initiated by
| 19 | | resolution or ordinance of the corporate authorities of the | 20 | | municipality or by
a petition
signed by not less than 10% of | 21 | | the total number of registered voters of each
precinct in
the | 22 | | territory, the registered voters of which are eligible to sign | 23 | | the
petition, it shall be the
duty of the election authority | 24 | | having jurisdiction over the municipality to
submit the
| 25 | | question of creating the program to the electors of each | 26 | | precinct within the
territory at
the regular election |
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| 1 | | specified in the resolution, ordinance, or petition
initiating | 2 | | the
question. A petition initiating a question described in | 3 | | this subsection shall
be filed with
the election authority | 4 | | having jurisdiction over the municipality. The petition
shall | 5 | | be filed
and objections to the petition shall be made in the | 6 | | manner provided in the
Election Code.
A resolution, ordinance, | 7 | | or petition initiating a question described in this
subsection | 8 | | shall
specify the election at which the question is to be | 9 | | submitted. The referendum
on the
question shall be held in | 10 | | accordance with the Election Code. The question
shall be in | 11 | | substantially 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?"
| 16 | | The votes must be recorded as "Yes" or "No".
| 17 | | Whenever a majority of the voters on the public question | 18 | | approve the
creation of
the program as certified by the proper | 19 | | election authorities or a resolution of the governing | 20 | | commission is approved by a two-thirds majority, the | 21 | | commission
shall
establish the program and administer the | 22 | | program with funds collected under the
Guaranteed Home Equity
| 23 | | Program, 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 | 4 | | in its guarantee fund, may, if authorized by referendum duly | 5 | | adopted by a majority of the voters, establish a Foreclosure | 6 | | Prevention Loan Fund to provide low interest emergency loans | 7 | | to eligible applicants that may be forced into foreclosure | 8 | | proceedings. | 9 | | Whenever the question of creating a Foreclosure Prevention | 10 | | Loan Fund is initiated by resolution or ordinance of the | 11 | | corporate authorities of the municipality or by a petition | 12 | | signed by not less than 10% of the total number of registered | 13 | | voters of each precinct in the territory, the registered | 14 | | voters of which are eligible to sign the petition, it shall be | 15 | | the duty of the election authority having jurisdiction over | 16 | | the municipality to submit the question of creating the | 17 | | program to the electors of each precinct within the territory | 18 | | at the regular election specified in the resolution, | 19 | | ordinance, or petition initiating the question. A petition | 20 | | initiating a question described in this subsection shall be | 21 | | filed with the election authority having jurisdiction over the | 22 | | municipality. The petition shall be filed and objections to | 23 | | the petition shall be made in the manner provided in the | 24 | | Election Code. A resolution, ordinance, or petition initiating | 25 | | a question described in this subsection shall specify the | 26 | | election at which the question is to be submitted. The |
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| 1 | | referendum on the question shall be held in accordance with | 2 | | the Election Code. The question shall be in substantially the | 3 | | following form: | 4 | | "Shall the (name of the home equity program) implement a | 5 | | Foreclosure Prevention Loan Fund with money from the guarantee | 6 | | fund 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 | 9 | | approve the creation of a Foreclosure Prevention Loan Fund as | 10 | | certified by the proper election authorities, the commission | 11 | | shall establish the program and administer the program with | 12 | | funds collected under the Guaranteed Home Equity Program, | 13 | | subject 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 | 12 | | authorized (i) by referendum approved by a majority of the | 13 | | voters or (ii) by resolution of the governing commission upon | 14 | | approval by two-thirds of the commissioners, establish a | 15 | | Delinquent Tax Repayment Loan Fund to provide low-interest | 16 | | emergency loans to eligible applicants. | 17 | | If the question of creating a Delinquent Tax Repayment | 18 | | Loan Fund is initiated by resolution or ordinance of the | 19 | | corporate authorities of the municipality or by a petition | 20 | | signed by not less than 10% of the total number of registered | 21 | | voters of each precinct in the territory, the registered | 22 | | voters of which are eligible to sign the petition, it shall be | 23 | | the duty of the election authority having jurisdiction over | 24 | | the municipality to submit the question of creating the | 25 | | program to the electors of each precinct within the territory | 26 | | at the regular election specified in the resolution, |
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| 1 | | ordinance, or petition initiating the question. A resolution, | 2 | | ordinance, or petition initiating a question described in this | 3 | | subsection shall be filed with the election authority having | 4 | | jurisdiction over the municipality. The resolution, ordinance, | 5 | | or petition shall be filed and objections to the resolution, | 6 | | ordinance, or petition shall be made in the manner provided in | 7 | | the Election Code. A resolution, ordinance, or petition | 8 | | initiating a question described in this subsection shall | 9 | | specify the election at which the question is to be submitted. | 10 | | The referendum on the question shall be held in accordance | 11 | | with the Election Code. The question shall be in substantially | 12 | | the 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 | 19 | | creation of a Delinquent Tax Repayment Loan Fund as certified | 20 | | by the proper election authorities or two-thirds of the | 21 | | commissioners, by resolution, approve the creation of a | 22 | | Delinquent Tax Repayment Loan Fund, the commission shall | 23 | | establish the program and administer the program with funds | 24 | | collected under the program, subject to the following | 25 | | conditions: | 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 | 2 | | expended
exclusively by the governing commission of the | 3 | | program for whose purposes
it was created. Under no | 4 | | circumstance shall the guarantee fund be used by
any person or | 5 | | persons, governmental body, or public or private agency or
| 6 | | concern other than the governing commission of the program for | 7 | | whose
purposes it was created. Under no circumstances shall | 8 | | the guarantee fund be
commingled with other funds or | 9 | | investments.
| 10 | | (e-1) No commissioner or family member of a commissioner, | 11 | | or employee or
family member of an employee, may receive any
| 12 | | financial benefit, either directly or indirectly, from the | 13 | | guarantee fund.
Nothing in this subsection (e-1) shall be | 14 | | construed to prohibit payment of
expenses to a commissioner in | 15 | | accordance with Section 4 or payment of salaries
or expenses | 16 | | to an employee in accordance with this Section.
| 17 | | As used in this subsection (e-1), "family member" means a | 18 | | spouse, child,
stepchild, parent, brother, or sister of a | 19 | | commissioner or a child, stepchild,
parent, brother, or sister | 20 | | of a commissioner's spouse.
| 21 | | (f) An independent audit of the guarantee fund and the | 22 | | management of the
program shall be conducted annually and made | 23 | | available to the public
through any office of the governing | 24 | | commission or a public facility such as
a local public library | 25 | | located within the territory of the program.
| 26 | | (Source: P.A. 98-1160, eff. 6-1-15; 99-37, eff. 1-1-16 .)
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