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Full Text of SB3925

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SB3925 - 104th General Assembly

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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
.)

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