Bill Text: IL HB4921 | 2023-2024 | 103rd General Assembly | Engrossed

---

Bill Title: Amends the Home Equity Assurance Act. In provisions authoring a governing commission with no less than $4,000,000 in its guarantee fund to establish a Low Interest Home Improvement Loan Program, provides that the loan may be used for 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 (rather than following flooding damage to the property). Provides that 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.

Spectrum: Moderate Partisan Bill (Democrat 9-1)

Status: (Engrossed) 2024-04-24 - Assigned to Judiciary [HB4921 Detail]

Download: Illinois-2023-HB4921-Engrossed.html

---

HB4921 Engrossed LRB103 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

HB4921 Engrossed - 2 - LRB103 37586 AWJ 67712 b
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

HB4921 Engrossed - 3 - LRB103 37586 AWJ 67712 b
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

HB4921 Engrossed - 4 - LRB103 37586 AWJ 67712 b
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

HB4921 Engrossed - 5 - LRB103 37586 AWJ 67712 b
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

HB4921 Engrossed - 6 - LRB103 37586 AWJ 67712 b
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

HB4921 Engrossed - 7 - LRB103 37586 AWJ 67712 b
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

HB4921 Engrossed - 8 - LRB103 37586 AWJ 67712 b
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

HB4921 Engrossed - 9 - LRB103 37586 AWJ 67712 b
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

HB4921 Engrossed - 10 - LRB103 37586 AWJ 67712 b
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

HB4921 Engrossed - 11 - LRB103 37586 AWJ 67712 b
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.

HB4921 Engrossed - 12 - LRB103 37586 AWJ 67712 b