Public Act 103-0737
 
HB4921 EnrolledLRB103 37586 AWJ 67712 b

    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.)