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90_SB1203ham001
LRB9006856PTbdam01
1 AMENDMENT TO SENATE BILL 1203
2 AMENDMENT NO. . Amend Senate Bill 1203 on page 1, by
3 replacing line 1 with the following:
4 "AN ACT concerning property improvements."; and
5 on page 4, below line 3, by inserting the following:
6 "Section 10. The Home Equity Assurance Act is amended by
7 changing Section 11 as follows:
8 (65 ILCS 95/11) (from Ch. 24, par. 1611)
9 Sec. 11. Guarantee Fund.
10 (a) Each governing commission and program created by
11 referendum under the provisions of this Act shall maintain a
12 guarantee fund for the purposes of paying the costs of
13 administering the program and extending protection to members
14 pursuant to the limitations and procedures set forth in this
15 Act.
16 (b) The guarantee fund shall be raised by means of an
17 annual tax levied on all residential property within the
18 territory of the program having at least one, but not more
19 than 6 dwelling units and classified by county ordinance as
20 residential. The rate of this tax may be changed from year
21 to year by majority vote of the governing commission but in
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1 no case shall it exceed a rate of .12% of the equalized
2 assessed valuation of all property in the territory of the
3 program having at least one, but not more than 6 dwelling
4 units and classified by county ordinance as residential, or
5 the maximum tax rate approved by the voters of the territory
6 at the referendum which created the program or, in the case
7 of a merged program, the maximum tax rate approved by the
8 voters at the referendum authorizing the merger, whichever
9 rate is lower. The commissioners shall cause the amount to
10 be raised by taxation in each year to be certified to the
11 county clerk in the manner provided by law, and any tax so
12 levied and certified shall be collected and enforced in the
13 same manner and by the same officers as those taxes for the
14 purposes of the county and city within which the territory of
15 the commission is located. Any such tax, when collected,
16 shall be paid over to the proper officer of the commission
17 who is authorized to receive and receipt for such tax. The
18 governing commission may issue tax anticipation warrants
19 against the taxes to be assessed for the calendar year in
20 which the program is created and for the first full calendar
21 year after the creation of the program.
22 (c) The moneys deposited in the guarantee fund shall, as
23 nearly as practicable, be fully and continuously invested or
24 reinvested by the governing commission in investment
25 obligations which shall be in such amounts, and shall mature
26 at such times, that the maturity or date of redemption at the
27 option of the holder of such investment obligations shall
28 coincide, as nearly as practicable, with the times at which
29 monies will be required for the purposes of the program. For
30 the purposes of this Section investment obligation shall mean
31 direct general municipal, state, or federal obligations which
32 at the time are legal investments under the laws of this
33 State and the payment of principal of and interest on which
34 are unconditionally guaranteed by the governing body issuing
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1 them.
2 (d) Except as permitted by this subsection, the
3 guarantee fund shall be used solely and exclusively for the
4 purpose of providing guarantees to members of the particular
5 Guaranteed Home Equity Program and for reasonable salaries,
6 expenses, bills, and fees incurred in administering the
7 program, and shall be used for no other purpose.
8 The Commission may by resolution establish a Low Interest
9 Home Improvement Loan Program, to be administered with funds
10 collected under the Guaranteed Home Equity Program, subject
11 to the following conditions:
12 (1) At any given time, the cumulative total of all
13 loans and loan guarantees (if applicable) issued under
14 this program may not exceed one-half of the aggregate
15 balance of the taxes collected under the Guaranteed Home
16 Equity Program.
17 (2) Only eligible applicants, may apply for a loan.
18 (3) The loan must be used for the repair,
19 maintenance, remodeling, alteration, or improvement of a
20 guaranteed residence. This condition is not intended to
21 exclude the repair, maintenance, remodeling, alteration,
22 or improvement of a guaranteed residence's landscape.
23 This condition is intended to exclude the demolition of a
24 current residence. This condition is also intended to
25 exclude the construction of a new residence.
26 (4) An eligible applicant may borrow up to the
27 guaranteed value of his or her residence, and may
28 participate in the loan program more than once, as long
29 as the total amount which the individual owes does not
30 exceed the guaranteed value of his or her residence.
31 (5) The Commission must ensure that loans issued
32 are secured with collateral that is at least equal to the
33 amount of the loan or loan guarantee.
34 (6) The Commission shall charge an interest rate
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1 which it determines to be below the market rate of
2 interest generally available to the applicant.
3 (7) The Commission may, by resolution, establish
4 other administrative rules and procedures as are
5 necessary to implement this program. The Commission may
6 also impose on loan applicants a one-time application fee
7 for the purpose of defraying the costs of administering
8 the program.
9 (e) The guarantee fund shall be maintained, invested,
10 and expended exclusively by the governing commission of the
11 program for whose purposes it was created. Under no
12 circumstance shall the guarantee fund be used by any person
13 or persons, governmental body, or public or private agency or
14 concern other than the governing commission of the program
15 for whose purposes it was created. Under no circumstances
16 shall the guarantee fund be commingled with other funds or
17 investments.
18 (e-1) No commissioner or family member of a
19 commissioner, or employee or family member of an employee,
20 may receive any financial benefit, either directly or
21 indirectly, from the guarantee fund. Nothing in this
22 subsection (e-1) shall be construed to prohibit payment of
23 expenses to a commissioner in accordance with Section 4 or
24 payment of salaries or expenses to an employee in accordance
25 with this Section.
26 As used in this subsection (e-1), "family member" means a
27 spouse, child, stepchild, parent, brother, or sister of a
28 commissioner or a child, stepchild, parent, brother, or
29 sister of a commissioner's spouse.
30 (f) An independent audit of the guarantee fund and the
31 management of the program shall be conducted annually and
32 made available to the public through any office of the
33 governing commission or a public facility such as a local
34 public library located within the territory of the program.
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1 (Source: P.A. 88-439.)".