Public Act 096-0921
 		





HB2360 Enrolled
LRB096 09284 MJR 19438 b






    AN ACT concerning regulation.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:



 
    Section 1. Short title. This Act may be cited as the 
Illinois Homeowner's Emergency Assistance Program Act.
 
    Section 5. Illinois Housing Development Authority; powers; 
duties. 
    (a) The Illinois Housing Development Authority shall have 
the power to issue grants to residents of Illinois  who are 
eligible for assistance as described in this Act.
    (b) The Authority shall implement and administer the 
program established by this Act.
    (c) The Authority shall ensure that a homeowner receiving 
assistance under this Act has received counseling from a 
HUD-certified housing counseling agency.
 
    Section 10. Definitions. For purposes of this Act:
    "Authority" means the Illinois Housing Development 
Authority.
    "Counseling" means in-person counseling provided by a 
counselor employed by a HUD-certified housing counseling 
agency or, where a hardship would be imposed on a homeowner, 
documented telephone counseling. A hardship exists if the 
homeowner is confined to his or her home due to a medical 
condition, as verified in writing by a physician, or the 
homeowner resides 50 miles or more from the nearest 
participating HUD-certified housing counseling agency. In 
instances of telephone counseling, the homeowner must supply 
any necessary documents to the counselor at least 72 hours 
prior to the scheduled telephone counseling session.
    "Counselor" means a counselor employed by a HUD-certified 
housing counseling agency.
    "Lender" means that term as it is defined in Section 1-4 of 
the Residential Mortgage License Act of 1987. 
    "Good faith" means honesty in fact in the conduct or 
transaction concerned.
 
    Section 15. Eligibility for assistance. 
    (a) No assistance may be given to a homeowner pursuant to 
this Act unless:
        (1) The property securing the mortgage is the 
    homeowner's primary residence.
        (2) The homeowner is a resident of this State and his 
    or her property is being foreclosed due to failure to make 
    mortgage payments.
        (3) The lender agrees to halt foreclosure proceedings 
    upon written notification by the Authority that a homeowner 
    has been approved for assistance.
        (4) The homeowner's household income is less than 120% 
    of area median income determined by the U.S. Department of 
    Housing and Urban Development.
        (5) The mortgage lender agrees to renegotiate in good 
    faith the terms of the mortgage being foreclosed upon  
    written notification that the homeowner has been approved 
    by the Authority.
        (6) The homeowner has attended a counseling session 
    that was provided by a HUD-certified housing counseling 
    agency.
        (7) The borrower is a resident of this State.
        (8) The homeowner agrees to defend and indemnify and 
    hold harmless the Authority from and against any and all 
    damages arising out of the Authority's payment on behalf of 
    the borrower.
        (9) The lender agrees to defend and indemnify and hold 
    harmless the Authority from and against any and all damages 
    arising out of the Authority's payment on behalf of the 
    borrower.
    (b) Upon a determination that the conditions of eligibility 
described in this Act have been met, and funds for assistance 
are available, the homeowner shall become eligible for the 
assistance described in Section 20 of this Act.
 
    Section 20. Assistance payments. 
    (a) If the Authority determines that a homeowner is 
eligible for assistance under this program, the Authority shall 
pay directly to each lender payments on behalf of the homeowner 
seeking assistance under the program. This amount shall 
include, but not be limited to, delinquencies of principal, 
interest, taxes, assessments, ground rents, hazard insurance, 
mortgage insurance, and credit insurance premiums.
    (b) An eligible applicant may not receive a grant in excess 
of $6,000, or the sum of 3 monthly mortgage payments on the 
property, whichever is less.
    (c) Grants made under this Act may only be used to satisfy 
mortgage financing with a first lien position.
 
    Section 25. Program funding.  
    (a) The Authority shall use only funds specifically 
appropriated by the General Assembly for the purposes of this 
Act to make payments to lenders, to provide reimbursement to 
HUD-certified housing counseling agencies for costs incurred 
in assisting borrowers, and to reimburse the Authority for 
administration of the program. Assistance under this Act shall 
not be available at any time the Authority does not have funds 
currently available to approve applications for emergency 
mortgage assistance.
    (b) This Act is subject to appropriation; however, at no 
time shall the cumulative amount of grants issued under this 
program exceed $3,000,000 in a calendar year.
 
    Section 30. Repealer.  This Act is repealed on January 1, 
2011.
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.