Bill Text: IL HB4562 | 2009-2010 | 96th General Assembly | Introduced
Bill Title: Creates the Tax Credit Advantage Loan Program Act. Provides that the Illinois Housing Development Authority may, in cooperation with eligible lenders, establish a program to make tax credit advantage loans, secured by a second mortgage, available to qualified home buyers for qualified home purchases. Limits loans under this program to no more than $4,800 or 6% of the contract purchase price of the home, whichever is less. Provides that if a tax credit advantage loan is repaid on or before June 30, 2010, then it shall not accrue interest. Provides that if a tax credit advantage loan is not repaid by that date, then it shall bear interest at a rate that is one-half of a percentage point higher than the interest rate of the first mortgage. Grants the Authority emergency rulemaking powers. Defines "Authority", "eligible lender", "I-LOAN program", "qualified home buyer", "qualified home purchase", and "tax credit advantage loan". Effective immediately.
Spectrum: Partisan Bill (Republican 19-0)
Status: (Introduced - Dead) 2009-05-18 - Added Co-Sponsor Rep. Renée Kosel [HB4562 Detail]
Download: Illinois-2009-HB4562-Introduced.html
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1 | AN ACT to create the Tax Credit Advantage Loan Program.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the Tax | ||||||||||||||||||||||||
5 | Credit Advantage Loan Program Act.
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6 | Section 5. Legislative findings. The General Assembly | ||||||||||||||||||||||||
7 | finds that it is in the interest of the State to enable | ||||||||||||||||||||||||
8 | first-time home buyers in need of closing and down payment | ||||||||||||||||||||||||
9 | assistance to borrow funds on a short-term basis in | ||||||||||||||||||||||||
10 | anticipation of receiving their federal 2009 First-Time Home | ||||||||||||||||||||||||
11 | Buyer Credit.
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12 | Section 10. Definitions. As used in this Act: | ||||||||||||||||||||||||
13 | "Authority" means the Illinois Housing Development | ||||||||||||||||||||||||
14 | Authority.
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15 | "Eligible lender" means a lending institution that the | ||||||||||||||||||||||||
16 | Authority has authorized to participate in the Tax Credit | ||||||||||||||||||||||||
17 | Advantage Loan Program and that participates, as of the | ||||||||||||||||||||||||
18 | effective date of this Act, in the I-LOAN Program.
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19 | "I-LOAN program" means the mortgage revenue bond program | ||||||||||||||||||||||||
20 | administered by the Authority.
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21 | "Qualified home buyer" means a person who the Authority has | ||||||||||||||||||||||||
22 | determined to be eligible to receive the federal First-Time |
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1 | Home Buyer Credit in 2009.
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2 | "Qualified home purchase" means a home purchase that closes | ||||||
3 | on or after the effective date of this Act but before December | ||||||
4 | 1, 2009.
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5 | "Tax credit advantage loan" means a short-term loan made | ||||||
6 | under this Act in exchange for a second mortgage to a qualified | ||||||
7 | home buyer during a qualified home purchase.
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8 | Section 15. Tax Credit Advantage Loan Program. | ||||||
9 | (a) The Authority may, in cooperation with eligible | ||||||
10 | lenders, establish a program to make tax credit advantage loans | ||||||
11 | available to qualified home buyers for qualified home | ||||||
12 | purchases. Tax credit advantage loans may be made for no more | ||||||
13 | than $4,800 or 6% of the contract purchase price of the home, | ||||||
14 | whichever is less. Tax credit advantage loans repaid on or | ||||||
15 | before June 30, 2010 shall not accrue interest. However, tax | ||||||
16 | credit advantage loans not repaid by that date shall, on and | ||||||
17 | after July 1, 2010, bear interest at a rate that is one-half of | ||||||
18 | a percentage point higher than the interest rate of the loan | ||||||
19 | secured by the first mortgage.
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20 | (b) The Authority shall charge an origination fee of $300, | ||||||
21 | which shall be bundled into the second mortgage, to each | ||||||
22 | qualified home buyer who receives a tax credit advantage loan. | ||||||
23 | Eligible lenders may charge a loan processing fee of $75 to | ||||||
24 | each qualified home buyer who receives a tax credit advantage | ||||||
25 | loan.
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1 | (c) Underwriting for tax credit advantage loan financing | ||||||
2 | shall be carried out by the eligible lender and shall be | ||||||
3 | bundled into the underwriting for the first mortgage. | ||||||
4 | (d) The Authority may provide for crediting the amount of | ||||||
5 | the origination fee to the borrower if the tax credit advantage | ||||||
6 | loan is repaid on or before June 30, 2010.
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7 | Section 95. Rulemaking. To expedite the implementation of | ||||||
8 | this Act, the Authority may adopt emergency rules as authorized | ||||||
9 | under Section 5-45 of the Illinois Administrative Procedure | ||||||
10 | Act.
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11 | Section 99. Effective date. This Act takes effect upon | ||||||
12 | becoming law.
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