SB3925: HOME EQUITY-FLOOD REBATE

SB3925 Enrolled LRB104 20718 RTM 34219 b 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 SB3925 Enrolled - 2 - LRB104 20718 RTM 34219 b 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 SB3925 Enrolled - 3 - LRB104 20718 RTM 34219 b 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 SB3925 Enrolled - 4 - LRB104 20718 RTM 34219 b 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 SB3925 Enrolled - 5 - LRB104 20718 RTM 34219 b 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 or other natural disaster damage to the 10 property. This condition is not intended to exclude the 11 repair, maintenance, remodeling, alteration, or 12 improvement of a guaranteed residence's landscape. This 13 condition is intended to exclude the demolition of a 14 current residence. This condition is also intended to 15 exclude the construction of a new residence. 16 (4) An eligible applicant may not borrow more than the 17 amount of equity value in his or her residence. 18 (5) A commission must ensure that loans issued are 19 secured with collateral that is at least equal to the 20 amount of the loan or loan guarantee. 21 (6) A commission shall charge an interest rate which 22 it determines to be below the market rate of interest 23 generally available to the applicant. 24 (7) A commission may, by resolution, establish other 25 administrative rules and procedures as are necessary to 26 implement this program including, but not limited to, loan SB3925 Enrolled - 6 - LRB104 20718 RTM 34219 b 1 dollar amounts and terms. A commission may also impose on 2 loan applicants a one-time application fee for the purpose 3 of defraying the costs of administering the program. 4 (8) A commission may use loan funds to issue a grant or 5 rebate for repairs, maintenance, remodeling, alteration, 6 or improvement of a guaranteed residence for purposes of 7 preventing or repairing damage as a result of a natural 8 disaster, including, but not limited to, flooding. 9 (d-5) A governing commission, with no less than $4,000,000 10 in its guarantee fund, may, if authorized by referendum duly 11 adopted by a majority of the voters, establish a Foreclosure 12 Prevention Loan Fund to provide low interest emergency loans 13 to eligible applicants that may be forced into foreclosure 14 proceedings. 15 Whenever the question of creating a Foreclosure Prevention 16 Loan Fund is initiated by resolution or ordinance of the 17 corporate authorities of the municipality or by a petition 18 signed by not less than 10% of the total number of registered 19 voters of each precinct in the territory, the registered 20 voters of which are eligible to sign the petition, it shall be 21 the duty of the election authority having jurisdiction over 22 the municipality to submit the question of creating the 23 program to the electors of each precinct within the territory 24 at the regular election specified in the resolution, 25 ordinance, or petition initiating the question. A petition 26 initiating a question described in this subsection shall be SB3925 Enrolled - 7 - LRB104 20718 RTM 34219 b 1 filed with the election authority having jurisdiction over the 2 municipality. The petition shall be filed and objections to 3 the petition shall be made in the manner provided in the 4 Election Code. A resolution, ordinance, or petition initiating 5 a question described in this subsection shall specify the 6 election at which the question is to be submitted. The 7 referendum on the question shall be held in accordance with 8 the Election Code. The question shall be in substantially the 9 following form: 10 "Shall the (name of the home equity program) implement a 11 Foreclosure Prevention Loan Fund with money from the guarantee 12 fund of the established guaranteed home equity program?" 13 The votes must be recorded as "Yes" or "No". 14 Whenever a majority of the voters on the public question 15 approve the creation of a Foreclosure Prevention Loan Fund as 16 certified by the proper election authorities, the commission 17 shall establish the program and administer the program with 18 funds collected under the Guaranteed Home Equity Program, 19 subject to the following conditions: 20 (1) At any given time, the cumulative total of all 21 loans and loan guarantees (if applicable) issued under 22 this program may not exceed $3,000,000. 23 (2) Only eligible applicants may apply for a loan. The 24 Commission may establish, by resolution, additional 25 criteria for eligibility. 26 (3) The loan must be used to assist with preventing SB3925 Enrolled - 8 - LRB104 20718 RTM 34219 b 1 foreclosure proceedings. 2 (4) An eligible applicant may not borrow more than the 3 amount of equity value in his or her residence. 4 (5) A commission must ensure that loans issued are 5 secured as a second lien on the property. 6 (6) A commission shall charge an interest rate which 7 it determines to be below the market rate of interest 8 generally available to the applicant. 9 (7) A commission may, by resolution, establish other 10 administrative rules and procedures as are necessary to 11 implement this program including, but not limited to, 12 eligibility requirements for eligible applicants, loan 13 dollar amounts, and loan terms. 14 (8) A commission may also impose on loan applicants a 15 one-time application fee for the purpose of defraying the 16 costs of administering the program. 17 (d-7) A governing commission may establish a program to 18 provide a one-time per household direct relief payment in the 19 form of a rebate to a member who owns a residence that is 20 subject to flood damage. The governing commission may 21 establish a limit on the amount of rebates that may be issued 22 under this subsection. Members shall be required to submit 23 qualified receipts to the governing showing costs incurred as 24 a result of flood damage to receive a rebate under the rebate 25 program established under this subsection. The rebate shall 26 provide up to 50% reimbursement, but shall not exceed $1,000. SB3925 Enrolled - 9 - LRB104 20718 RTM 34219 b 1 The rebate program shall last for 3 years unless reapproved by 2 the governing commission. 3 (d-10) The Northwest Home Equity Assurance Program may, if 4 authorized (i) by referendum approved by a majority of the 5 voters or (ii) by resolution of the governing commission upon 6 approval by two-thirds of the commissioners, establish a 7 Delinquent Tax Repayment Loan Fund to provide low-interest 8 emergency loans to eligible applicants. 9 If the question of creating a Delinquent Tax Repayment 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 resolution, 20 ordinance, or petition initiating a question described in this 21 subsection shall be filed with the election authority having 22 jurisdiction over the municipality. The resolution, ordinance, 23 or petition shall be filed and objections to the resolution, 24 ordinance, or petition shall be made in the manner provided in 25 the Election Code. A resolution, ordinance, or petition 26 initiating a question described in this subsection shall SB3925 Enrolled - 10 - LRB104 20718 RTM 34219 b 1 specify the election at which the question is to be submitted. 2 The referendum on the question shall be held in accordance 3 with the Election Code. The question shall be in substantially 4 the following form: 5 "Shall the (name of the home equity program) implement 6 a Delinquent Tax Repayment Loan Fund with money from the 7 guarantee fund of the Northwest Home Equity Assurance 8 Program?" 9 The votes must be recorded as "Yes" or "No". 10 If a majority of the voters on the question approve the 11 creation of a Delinquent Tax Repayment Loan Fund as certified 12 by the proper election authorities or two-thirds of the 13 commissioners, by resolution, approve the creation of a 14 Delinquent Tax Repayment Loan Fund, the commission shall 15 establish the program and administer the program with funds 16 collected under the program, subject to the following 17 conditions: 18 (1) At any given time, the cumulative total of all 19 loans and loan guarantees (if applicable) issued under 20 this 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 repayment of 25 delinquent property taxes and for those facing imminent 26 delinquency. SB3925 Enrolled - 11 - LRB104 20718 RTM 34219 b 1 (4) An eligible applicant may not borrow more than the 2 amount due to the treasurer's office. 3 (5) A commission shall charge an interest rate which 4 it determines to be below the market rate of interest 5 generally available to the applicant. 6 (6) A commission may, by resolution, establish other 7 administrative rules and procedures as are necessary to 8 implement this program including, but not limited to, 9 eligibility requirements for eligible applicants, loan 10 dollar amounts, and loan terms. 11 (7) Where practicable, it shall be required that a 12 borrower obtain free housing counseling services prior to 13 applying to this tax program for the purpose of assisting 14 with budgeting and providing a recommendation as to 15 whether this client is suited for this program. 16 (8) A commission may also impose on loan applicants a 17 one-time application fee for the purpose of defraying the 18 costs of administering the program. 19 (e) The guarantee fund shall be maintained, invested, and 20 expended exclusively by the governing commission of the 21 program for whose purposes it was created. Under no 22 circumstance shall the guarantee fund be used by any person or 23 persons, governmental body, or public or private agency or 24 concern other than the governing commission of the program for 25 whose purposes it was created. Under no circumstances shall 26 the guarantee fund be commingled with other funds or SB3925 Enrolled - 12 - LRB104 20718 RTM 34219 b 1 investments. 2 (e-1) No commissioner or family member of a commissioner, 3 or employee or family member of an employee, may receive any 4 financial benefit, either directly or indirectly, from the 5 guarantee fund. Nothing in this subsection (e-1) shall be 6 construed to prohibit payment of expenses to a commissioner in 7 accordance with Section 4 or payment of salaries or expenses 8 to an employee in accordance with this Section. 9 As used in this subsection (e-1), "family member" means a 10 spouse, child, stepchild, parent, brother, or sister of a 11 commissioner or a child, stepchild, parent, brother, or sister 12 of a commissioner's spouse. 13 (f) An independent audit of the guarantee fund and the 14 management of the program shall be conducted annually and made 15 available to the public through any office of the governing 16 commission or a public facility such as a local public library 17 located within the territory of the program. 18 (Source: P.A. 102-599, eff. 1-1-22; 103-737, eff. 1-1-25 .)