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Public Act 103-0737 Public Act 0737 103RD GENERAL ASSEMBLY | Public Act 103-0737 | HB4921 Enrolled | LRB103 37586 AWJ 67712 b |
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| AN ACT concerning local government. | Be it enacted by the People of the State of Illinois, | represented in the General Assembly: | Section 5. The Home Equity Assurance Act is amended by | changing Section 11 as follows: | (65 ILCS 95/11) (from Ch. 24, par. 1611) | Sec. 11. Guarantee Fund. | (a) Each governing commission and program created by | referendum under the provisions of this Act shall maintain a | guarantee fund for the purposes of paying the costs of | administering the program and extending protection to members | pursuant to the limitations and procedures set forth in this | Act. | (b) The guarantee fund shall be raised by means of an | annual tax levied on all residential property within the | territory of the program having at least one, but not more than | 6 dwelling units and classified by county ordinance as | residential. The rate of this tax may be changed from year to | year by majority vote of the governing commission but in no | case shall it exceed a rate of .12% of the equalized assessed | valuation of all property in the territory of the program | having at least one, but not more than 6 dwelling units and | classified by county ordinance as residential, or the maximum |
| tax rate approved by the voters of the territory at the | referendum which created the program or, in the case of a | merged program, the maximum tax rate approved by the voters at | the referendum authorizing the merger, whichever rate is | lower. The commissioners shall cause the amount to be raised | by taxation in each year to be certified to the county clerk in | the manner provided by law, and any tax so levied and certified | shall be collected and enforced in the same manner and by the | same officers as those taxes for the purposes of the county and | city within which the territory of the commission is located. | Any such tax, when collected, shall be paid over to the proper | officer of the commission who is authorized to receive and | receipt for such tax. The governing commission may issue tax | anticipation warrants against the taxes to be assessed for the | calendar year in which the program is created and for the first | full calendar year after the creation of the program. | (c) The moneys deposited in the guarantee fund shall, as | nearly as practicable, be fully and continuously invested or | reinvested by the governing commission in investment | obligations which shall be in such amounts, and shall mature | at such times, that the maturity or date of redemption at the | option of the holder of such investment obligations shall | coincide, as nearly as practicable, with the times at which | monies will be required for the purposes of the program. For | the purposes of this Section investment obligation shall mean | direct general municipal, state, or federal obligations which |
| at the time are legal investments under the laws of this State | and the payment of principal of and interest on which are | unconditionally guaranteed by the governing body issuing them. | (d) Except as permitted by this subsection and subsection | (d-5), the guarantee fund shall be used solely and exclusively | for the purpose of providing guarantees to members of the | particular Guaranteed Home Equity Program and for reasonable | salaries, expenses, bills, and fees incurred in administering | the program, and shall be used for no other purpose. | A governing commission, with no less than $4,000,000 in | its guarantee fund, may, if authorized (i) by referendum duly | adopted by a majority of the voters or (ii) by resolution of | the governing commission upon approval by two-thirds of the | commissioners, establish a Low Interest Home Improvement Loan | Program in accordance with and subject to procedures | established by a financial institution, as defined in the | Illinois Banking Act. Whenever the question of creating a Low | Interest Home Improvement Loan Program is initiated by | resolution or ordinance of the corporate authorities of the | municipality or by a petition signed by not less than 10% of | the total number of registered voters of each precinct in the | territory, the registered voters of which are eligible to sign | the petition, it shall be the duty of the election authority | having jurisdiction over the municipality to submit the | question of creating the program to the electors of each | precinct within the territory at the regular election |
| specified in the resolution, ordinance, or petition initiating | the question. A petition initiating a question described in | this subsection shall be filed with the election authority | having jurisdiction over the municipality. The petition shall | be filed and objections to the petition shall be made in the | manner provided in the Election Code. A resolution, ordinance, | or petition initiating a question described in this subsection | shall specify the election at which the question is to be | submitted. The referendum on the question shall be held in | accordance with the Election Code. The question shall be in | substantially the following form: | "Shall the (name of the home equity program) implement | a Low Interest Home Improvement Loan Program with money | from the guarantee fund of the established guaranteed home | equity program?" | The votes must be recorded as "Yes" or "No". | Whenever a majority of the voters on the public question | approve the creation of the program as certified by the proper | election authorities or a resolution of the governing | commission is approved by a two-thirds majority, the | commission shall establish the program and administer the | program with funds collected under the Guaranteed Home Equity | Program, subject to the following conditions: | (1) At any given time, the cumulative total of all | loans and loan guarantees (if applicable) issued under | this program may not reduce the balance of the guarantee |
| fund to less than $3,000,000. | (2) Only eligible applicants may apply for a loan. | (3) The loan must be used for the repair, maintenance, | remodeling, alteration, or improvement of a guaranteed | residence. This condition is intended to include the | repair or maintenance of a guaranteed residence's water | and sewer pipes and repair of a guaranteed residence, | including , but not limited to , basement repairs, following | flooding damage or other natural disaster damage to the | property. This condition is not intended to exclude the | repair, maintenance, remodeling, alteration, or | improvement of a guaranteed residence's landscape. This | condition is intended to exclude the demolition of a | current residence. This condition is also intended to | exclude the construction of a new residence. | (4) An eligible applicant may not borrow more than the | amount of equity value in his or her residence. | (5) A commission must ensure that loans issued are | secured with collateral that is at least equal to the | amount of the loan or loan guarantee. | (6) A commission shall charge an interest rate which | it determines to be below the market rate of interest | generally available to the applicant. | (7) A commission may, by resolution, establish other | administrative rules and procedures as are necessary to | implement this program including, but not limited to, loan |
| dollar amounts and terms. A commission may also impose on | loan applicants a one-time application fee for the purpose | of defraying the costs of administering the program. | (8) A commission may use loan funds to issue a grant or | rebate for repairs, maintenance, remodeling, alteration, | or improvement of a guaranteed residence for purposes of | preventing or repairing damage as a result of a natural | disaster, including, but not limited to, flooding. | (d-5) A governing commission, with no less than $4,000,000 | in its guarantee fund, may, if authorized by referendum duly | adopted by a majority of the voters, establish a Foreclosure | Prevention Loan Fund to provide low interest emergency loans | to eligible applicants that may be forced into foreclosure | proceedings. | Whenever the question of creating a Foreclosure Prevention | Loan Fund is initiated by resolution or ordinance of the | corporate authorities of the municipality or by a petition | signed by not less than 10% of the total number of registered | voters of each precinct in the territory, the registered | voters of which are eligible to sign the petition, it shall be | the duty of the election authority having jurisdiction over | the municipality to submit the question of creating the | program to the electors of each precinct within the territory | at the regular election specified in the resolution, | ordinance, or petition initiating the question. A petition | initiating a question described in this subsection shall be |
| filed with the election authority having jurisdiction over the | municipality. The petition shall be filed and objections to | the petition shall be made in the manner provided in the | Election Code. A resolution, ordinance, or petition initiating | a question described in this subsection shall specify the | election at which the question is to be submitted. The | referendum on the question shall be held in accordance with | the Election Code. The question shall be in substantially the | following form: | "Shall the (name of the home equity program) implement a | Foreclosure Prevention Loan Fund with money from the guarantee | fund of the established guaranteed home equity program?" | The votes must be recorded as "Yes" or "No". | Whenever a majority of the voters on the public question | approve the creation of a Foreclosure Prevention Loan Fund as | certified by the proper election authorities, the commission | shall establish the program and administer the program with | funds collected under the Guaranteed Home Equity Program, | subject to the following conditions: | (1) At any given time, the cumulative total of all | loans and loan guarantees (if applicable) issued under | this program may not exceed $3,000,000. | (2) Only eligible applicants may apply for a loan. The | Commission may establish, by resolution, additional | criteria for eligibility. | (3) The loan must be used to assist with preventing |
| foreclosure proceedings. | (4) An eligible applicant may not borrow more than the | amount of equity value in his or her residence. | (5) A commission must ensure that loans issued are | secured as a second lien on the property. | (6) A commission shall charge an interest rate which | it determines to be below the market rate of interest | generally available to the applicant. | (7) A commission may, by resolution, establish other | administrative rules and procedures as are necessary to | implement this program including, but not limited to, | eligibility requirements for eligible applicants, loan | dollar amounts, and loan terms. | (8) A commission may also impose on loan applicants a | one-time application fee for the purpose of defraying the | costs of administering the program. | (d-10) The Northwest Home Equity Assurance Program may, if | authorized (i) by referendum approved by a majority of the | voters or (ii) by resolution of the governing commission upon | approval by two-thirds of the commissioners, establish a | Delinquent Tax Repayment Loan Fund to provide low-interest | emergency loans to eligible applicants. | If the question of creating a Delinquent Tax Repayment | Loan Fund is initiated by resolution or ordinance of the | corporate authorities of the municipality or by a petition | signed by not less than 10% of the total number of registered |
| voters of each precinct in the territory, the registered | voters of which are eligible to sign the petition, it shall be | the duty of the election authority having jurisdiction over | the municipality to submit the question of creating the | program to the electors of each precinct within the territory | at the regular election specified in the resolution, | ordinance, or petition initiating the question. A resolution, | ordinance, or petition initiating a question described in this | subsection shall be filed with the election authority having | jurisdiction over the municipality. The resolution, ordinance, | or petition shall be filed and objections to the resolution, | ordinance, or petition shall be made in the manner provided in | the Election Code. A resolution, ordinance, or petition | initiating a question described in this subsection shall | specify the election at which the question is to be submitted. | The referendum on the question shall be held in accordance | with the Election Code. The question shall be in substantially | the following form: | "Shall the (name of the home equity program) implement | a Delinquent Tax Repayment Loan Fund with money from the | guarantee fund of the Northwest Home Equity Assurance | Program?" | The votes must be recorded as "Yes" or "No". | If a majority of the voters on the question approve the | creation of a Delinquent Tax Repayment Loan Fund as certified | by the proper election authorities or two-thirds of the |
| commissioners, by resolution, approve the creation of a | Delinquent Tax Repayment Loan Fund, the commission shall | establish the program and administer the program with funds | collected under the program, subject to the following | conditions: | (1) At any given time, the cumulative total of all | loans and loan guarantees (if applicable) issued under | this program may not exceed $3,000,000. | (2) Only eligible applicants may apply for a loan. The | commission may establish, by resolution, additional | criteria for eligibility. | (3) The loan must be used to assist with repayment of | delinquent property taxes and for those facing imminent | delinquency. | (4) An eligible applicant may not borrow more than the | amount due to the treasurer's office. | (5) A commission shall charge an interest rate which | it determines to be below the market rate of interest | generally available to the applicant. | (6) A commission may, by resolution, establish other | administrative rules and procedures as are necessary to | implement this program including, but not limited to, | eligibility requirements for eligible applicants, loan | dollar amounts, and loan terms. | (7) Where practicable, it shall be required that a | borrower obtain free housing counseling services prior to |
| applying to this tax program for the purpose of assisting | with budgeting and providing a recommendation as to | whether this client is suited for this program. | (8) A commission may also impose on loan applicants a | one-time application fee for the purpose of defraying the | costs of administering the program. | (e) The guarantee fund shall be maintained, invested, and | expended exclusively by the governing commission of the | program for whose purposes it was created. Under no | circumstance shall the guarantee fund be used by any person or | persons, governmental body, or public or private agency or | concern other than the governing commission of the program for | whose purposes it was created. Under no circumstances shall | the guarantee fund be commingled with other funds or | investments. | (e-1) No commissioner or family member of a commissioner, | or employee or family member of an employee, may receive any | financial benefit, either directly or indirectly, from the | guarantee fund. Nothing in this subsection (e-1) shall be | construed to prohibit payment of expenses to a commissioner in | accordance with Section 4 or payment of salaries or expenses | to an employee in accordance with this Section. | As used in this subsection (e-1), "family member" means a | spouse, child, stepchild, parent, brother, or sister of a | commissioner or a child, stepchild, parent, brother, or sister | of a commissioner's spouse. |
| (f) An independent audit of the guarantee fund and the | management of the program shall be conducted annually and made | available to the public through any office of the governing | commission or a public facility such as a local public library | located within the territory of the program. | (Source: P.A. 102-599, eff. 1-1-22 .) |
Effective Date: 1/1/2025
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