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91_HB0943ham001
LRB9101953PTpkam
1 AMENDMENT TO HOUSE BILL 943
2 AMENDMENT NO. . Amend House Bill 943 on page 1, by
3 replacing the title with the following:
4 "AN ACT to amend the Home Equity Assurance Act by
5 changing Section 11."; and
6 and by replacing everything after the enacting clause with
7 the following:
8 "Section 5. The Home Equity Assurance Act is amended by
9 changing Section 11 as follows:
10 (65 ILCS 95/11) (from Ch. 24, par. 1611)
11 Sec. 11. Guarantee Fund.
12 (a) Each governing commission and program created by
13 referendum under the provisions of this Act shall maintain a
14 guarantee fund for the purposes of paying the costs of
15 administering the program and extending protection to members
16 pursuant to the limitations and procedures set forth in this
17 Act.
18 (b) The guarantee fund shall be raised by means of an
19 annual tax levied on all residential property within the
20 territory of the program having at least one, but not more
21 than 6 dwelling units and classified by county ordinance as
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1 residential. The rate of this tax may be changed from year
2 to year by majority vote of the governing commission but in
3 no case shall it exceed a rate of .12% of the equalized
4 assessed valuation of all property in the territory of the
5 program having at least one, but not more than 6 dwelling
6 units and classified by county ordinance as residential, or
7 the maximum tax rate approved by the voters of the territory
8 at the referendum which created the program or, in the case
9 of a merged program, the maximum tax rate approved by the
10 voters at the referendum authorizing the merger, whichever
11 rate is lower. The commissioners shall cause the amount to
12 be raised by taxation in each year to be certified to the
13 county clerk in the manner provided by law, and any tax so
14 levied and certified shall be collected and enforced in the
15 same manner and by the same officers as those taxes for the
16 purposes of the county and city within which the territory of
17 the commission is located. Any such tax, when collected,
18 shall be paid over to the proper officer of the commission
19 who is authorized to receive and receipt for such tax. The
20 governing commission may issue tax anticipation warrants
21 against the taxes to be assessed for the calendar year in
22 which the program is created and for the first full calendar
23 year after the creation of the program.
24 (c) The moneys deposited in the guarantee fund shall, as
25 nearly as practicable, be fully and continuously invested or
26 reinvested by the governing commission in investment
27 obligations which shall be in such amounts, and shall mature
28 at such times, that the maturity or date of redemption at the
29 option of the holder of such investment obligations shall
30 coincide, as nearly as practicable, with the times at which
31 monies will be required for the purposes of the program. For
32 the purposes of this Section investment obligation shall mean
33 direct general municipal, state, or federal obligations which
34 at the time are legal investments under the laws of this
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1 State and the payment of principal of and interest on which
2 are unconditionally guaranteed by the governing body issuing
3 them.
4 (d) Except as permitted by this subsection, the
5 guarantee fund shall be used solely and exclusively for the
6 purpose of providing guarantees to members of the particular
7 Guaranteed Home Equity Program and for reasonable salaries,
8 expenses, bills, and fees incurred in administering the
9 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 by resolution establish a Low Interest
12 Home Improvement Loan Program, to be administered with funds
13 collected under the Guaranteed Home Equity Program, subject
14 to the following conditions:
15 (1) At any given time, the cumulative total of all
16 loans and loan guarantees (if applicable) issued under
17 this program may not exceed one-quarter of the aggregate
18 balance of the taxes collected under the Guaranteed Home
19 Equity Program.
20 (2) Only eligible applicants may apply for a loan.
21 (3) The loan must be used for the repair,
22 maintenance, remodeling, alteration, or improvement of a
23 guaranteed residence. This condition is not intended to
24 exclude the repair, maintenance, remodeling, alteration,
25 or improvement of a guaranteed residence's landscape.
26 This condition is intended to exclude the demolition of a
27 current residence. This condition is also intended to
28 exclude the construction of a new residence.
29 (4) An eligible applicant may not borrow more than
30 the amount of equity value in his or her residence, but
31 may participate in the loan program more than once, as
32 long as the total amount that the individual owes does
33 not exceed the equity value of his or her residence.
34 (5) A commission must ensure that loans issued are
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1 secured with collateral that is at least equal to the
2 amount of the loan or loan guarantee.
3 (6) A commission shall charge an interest rate
4 which it determines to be below the market rate of
5 interest generally available to the applicant.
6 (7) A commission may, by resolution, establish
7 other administrative rules and procedures as are
8 necessary to implement this program including, but not
9 limited to, loan dollar amounts and terms. A commission
10 may also impose on loan applicants a one-time application
11 fee for the purpose of defraying the costs of
12 administering the program.
13 (e) The guarantee fund shall be maintained, invested,
14 and expended exclusively by the governing commission of the
15 program for whose purposes it was created. Under no
16 circumstance shall the guarantee fund be used by any person
17 or persons, governmental body, or public or private agency or
18 concern other than the governing commission of the program
19 for whose purposes it was created. Under no circumstances
20 shall the guarantee fund be commingled with other funds or
21 investments.
22 (e-1) No commissioner or family member of a
23 commissioner, or employee or family member of an employee,
24 may receive any financial benefit, either directly or
25 indirectly, from the guarantee fund. Nothing in this
26 subsection (e-1) shall be construed to prohibit payment of
27 expenses to a commissioner in accordance with Section 4 or
28 payment of salaries or expenses to an employee in accordance
29 with this Section.
30 As used in this subsection (e-1), "family member" means a
31 spouse, child, stepchild, parent, brother, or sister of a
32 commissioner or a child, stepchild, parent, brother, or
33 sister of a commissioner's spouse.
34 (f) An independent audit of the guarantee fund and the
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1 management of the program shall be conducted annually and
2 made available to the public through any office of the
3 governing commission or a public facility such as a local
4 public library located within the territory of the program.
5 (Source: P.A. 88-439.)".