SB 3925

Select Language
  ×
The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein.
Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet.
The English language version is always the official and authoritative version of this website.
NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window.
  Choose Language
  English
  Afrikaans
  Albanian
  Arabic
  Armenian
  Azerbaijani
  Basque
  Bengali
  Bosnian
  Catalan
  Croatian
  Czech
  Danish
  Dutch
  Esperanto
  Estonian
  Filipino
  Finnish
  French
  Galician
  Georgian
  German
  Greek
  Gujarati
  Haitian Creole
  Hausa
  Hawaiian
  Hebrew
  Hindi
  Hungarian
  Icelandic
  Indonesian
  Interlingua
  Interlingue
  Inuktitut
  Irish
  Italian
  Japanese
  Javanese
  Kannada
  Khmer
  Korean
  Latin
  Latvian
  Lithuanian
  Luxembourgish
  Macedonian
  Malagasy
  Malayalam
  Maltese
  Maori
  Marathi
  Myanmar
  Nepali
  Norwegian
  Odia
  Pashto
  Punjabi
  Romanian
  Russian
  Samoan
  Sango
  Sanskrit
  Sardinian
  Sindhi
  Sinhala
  Slovak
  Slovenian
  Somali
  Southern Sotho
  Spanish
  Sundanese
  Swahili
  Swedish
  Tamil
  Telugu
  Thai
  Tigrinya
  Tonga
  Turkish
  Ukrainian
  Urdu
  Vietnamese
  Welsh
  Xhosa
  Yiddish
  Yoruba
  Zulu
  Powered by Translate
  Close
Illinois General Assembly
Top Navigation Bar
  Translate
  Learn
  Select General Assembly
  Search the 104th General Assembly
  Enter search terms for legislation, members, committees, or schedules.
  ILGA.GOV
Mobile Top Bar
  Search the 104th General Assembly
  Enter keywords to search the Illinois General Assembly website.
Full Text of SB3925
Home
Legislation
Full Text
	SB3925 - 104th General Assembly
		Bill Status
		Full Text
		Votes
		Witness Slips
	Select Menu
	Bill Status
	Full Text
	Votes
	Witness Slips
	Printer Friendly Version
			Introduced
			Engrossed
			Enrolled
			Public Act
		Printer Friendly Version
		Introduced
		Engrossed
		Enrolled
		Public Act
			 Open PDF
		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,
3represented in the General Assembly:
4    Section 5. The Home Equity Assurance Act is amended by
5changing 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
9referendum under the provisions of this Act shall maintain a
10guarantee fund for the purposes of paying the costs of
11administering the program and extending protection to members
12pursuant to the limitations and procedures set forth in this
13Act.
14    (b) The guarantee fund shall be raised by means of an
15annual tax levied on all residential property within the
16territory of the program having at least one, but not more than
176 dwelling units and classified by county ordinance as
18residential. The rate of this tax may be changed from year to
19year by majority vote of the governing commission but in no
20case shall it exceed a rate of .12% of the equalized assessed
21valuation of all property in the territory of the program
22having at least one, but not more than 6 dwelling units and
23classified by county ordinance as residential, or the maximum
		SB3925 Enrolled	- 2 -	LRB104 20718 RTM 34219 b
1tax rate approved by the voters of the territory at the
2referendum which created the program or, in the case of a
3merged program, the maximum tax rate approved by the voters at
4the referendum authorizing the merger, whichever rate is
5lower. The commissioners shall cause the amount to be raised
6by taxation in each year to be certified to the county clerk in
7the manner provided by law, and any tax so levied and certified
8shall be collected and enforced in the same manner and by the
9same officers as those taxes for the purposes of the county and
10city within which the territory of the commission is located.
11Any such tax, when collected, shall be paid over to the proper
12officer of the commission who is authorized to receive and
13receipt for such tax. The governing commission may issue tax
14anticipation warrants against the taxes to be assessed for the
15calendar year in which the program is created and for the first
16full calendar year after the creation of the program.
17    (c) The moneys deposited in the guarantee fund shall, as
18nearly as practicable, be fully and continuously invested or
19reinvested by the governing commission in investment
20obligations which shall be in such amounts, and shall mature
21at such times, that the maturity or date of redemption at the
22option of the holder of such investment obligations shall
23coincide, as nearly as practicable, with the times at which
24monies will be required for the purposes of the program. For
25the purposes of this Section investment obligation shall mean
26direct general municipal, state, or federal obligations which
		SB3925 Enrolled	- 3 -	LRB104 20718 RTM 34219 b
1at the time are legal investments under the laws of this State
2and the payment of principal of and interest on which are
3unconditionally 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
6for the purpose of providing guarantees to members of the
7particular Guaranteed Home Equity Program and for reasonable
8salaries, expenses, bills, and fees incurred in administering
9the program, and shall be used for no other purpose.
10    A governing commission, with no less than $4,000,000 in
11its guarantee fund, may, if authorized (i) by referendum duly
12adopted by a majority of the voters or (ii) by resolution of
13the governing commission upon approval by two-thirds of the
14commissioners, establish a Low Interest Home Improvement Loan
15Program in accordance with and subject to procedures
16established by a financial institution, as defined in the
17Illinois Banking Act. Whenever the question of creating a Low
18Interest Home Improvement Loan Program is initiated by
19resolution or ordinance of the corporate authorities of the
20municipality or by a petition signed by not less than 10% of
21the total number of registered voters of each precinct in the
22territory, the registered voters of which are eligible to sign
23the petition, it shall be the duty of the election authority
24having jurisdiction over the municipality to submit the
25question of creating the program to the electors of each
26precinct within the territory at the regular election
		SB3925 Enrolled	- 4 -	LRB104 20718 RTM 34219 b
1specified in the resolution, ordinance, or petition initiating
2the question. A petition initiating a question described in
3this subsection shall be filed with the election authority
4having jurisdiction over the municipality. The petition shall
5be filed and objections to the petition shall be made in the
6manner provided in the Election Code. A resolution, ordinance,
7or petition initiating a question described in this subsection
8shall specify the election at which the question is to be
9submitted. The referendum on the question shall be held in
10accordance with the Election Code. The question shall be in
11substantially 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?"
16The votes must be recorded as "Yes" or "No".
17    Whenever a majority of the voters on the public question
18approve the creation of the program as certified by the proper
19election authorities or a resolution of the governing
20commission is approved by a two-thirds majority, the
21commission shall establish the program and administer the
22program with funds collected under the Guaranteed Home Equity
23Program, 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	- 5 -	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	- 6 -	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
10in its guarantee fund, may, if authorized by referendum duly
11adopted by a majority of the voters, establish a Foreclosure
12Prevention Loan Fund to provide low interest emergency loans
13to eligible applicants that may be forced into foreclosure
14proceedings.
15    Whenever the question of creating a Foreclosure Prevention
16Loan Fund is initiated by resolution or ordinance of the
17corporate authorities of the municipality or by a petition
18signed by not less than 10% of the total number of registered
19voters of each precinct in the territory, the registered
20voters of which are eligible to sign the petition, it shall be
21the duty of the election authority having jurisdiction over
22the municipality to submit the question of creating the
23program to the electors of each precinct within the territory
24at the regular election specified in the resolution,
25ordinance, or petition initiating the question. A petition
26initiating a question described in this subsection shall be
		SB3925 Enrolled	- 7 -	LRB104 20718 RTM 34219 b
1filed with the election authority having jurisdiction over the
2municipality. The petition shall be filed and objections to
3the petition shall be made in the manner provided in the
4Election Code. A resolution, ordinance, or petition initiating
5a question described in this subsection shall specify the
6election at which the question is to be submitted. The
7referendum on the question shall be held in accordance with
8the Election Code. The question shall be in substantially the
9following form:
10    "Shall the (name of the home equity program) implement a
11Foreclosure Prevention Loan Fund with money from the guarantee
12fund 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
15approve the creation of a Foreclosure Prevention Loan Fund as
16certified by the proper election authorities, the commission
17shall establish the program and administer the program with
18funds collected under the Guaranteed Home Equity Program,
19subject 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	- 8 -	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 
18provide a one-time per household direct relief payment in the 
19form of a rebate to a member who owns a residence that is 
20subject to flood damage. The governing commission may 
21establish a limit on the amount of rebates that may be issued 
22under this subsection. Members shall be required to submit 
23qualified receipts to the governing showing costs incurred as 
24a result of flood damage to receive a rebate under the rebate 
25program established under this subsection. The rebate shall 
26provide up to 50% reimbursement, but shall not exceed $1,000. 
		SB3925 Enrolled	- 9 -	LRB104 20718 RTM 34219 b
1The rebate program shall last for 3 years unless reapproved by 
2the governing commission.
3    (d-10) The Northwest Home Equity Assurance Program may, if
4authorized (i) by referendum approved by a majority of the
5voters or (ii) by resolution of the governing commission upon
6approval by two-thirds of the commissioners, establish a
7Delinquent Tax Repayment Loan Fund to provide low-interest
8emergency loans to eligible applicants.
9    If the question of creating a Delinquent Tax Repayment
10Loan Fund is initiated by resolution or ordinance of the
11corporate authorities of the municipality or by a petition
12signed by not less than 10% of the total number of registered
13voters of each precinct in the territory, the registered
14voters of which are eligible to sign the petition, it shall be
15the duty of the election authority having jurisdiction over
16the municipality to submit the question of creating the
17program to the electors of each precinct within the territory
18at the regular election specified in the resolution,
19ordinance, or petition initiating the question. A resolution,
20ordinance, or petition initiating a question described in this
21subsection shall be filed with the election authority having
22jurisdiction over the municipality. The resolution, ordinance,
23or petition shall be filed and objections to the resolution,
24ordinance, or petition shall be made in the manner provided in
25the Election Code. A resolution, ordinance, or petition
26initiating a question described in this subsection shall
		SB3925 Enrolled	- 10 -	LRB104 20718 RTM 34219 b
1specify the election at which the question is to be submitted.
2The referendum on the question shall be held in accordance
3with the Election Code. The question shall be in substantially
4the 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
11creation of a Delinquent Tax Repayment Loan Fund as certified
12by the proper election authorities or two-thirds of the
13commissioners, by resolution, approve the creation of a
14Delinquent Tax Repayment Loan Fund, the commission shall
15establish the program and administer the program with funds
16collected under the program, subject to the following
17conditions:
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	- 11 -	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
20expended exclusively by the governing commission of the
21program for whose purposes it was created. Under no
22circumstance shall the guarantee fund be used by any person or
23persons, governmental body, or public or private agency or
24concern other than the governing commission of the program for
25whose purposes it was created. Under no circumstances shall
26the guarantee fund be commingled with other funds or
		SB3925 Enrolled	- 12 -	LRB104 20718 RTM 34219 b
1investments.
2    (e-1) No commissioner or family member of a commissioner,
3or employee or family member of an employee, may receive any
4financial benefit, either directly or indirectly, from the
5guarantee fund. Nothing in this subsection (e-1) shall be
6construed to prohibit payment of expenses to a commissioner in
7accordance with Section 4 or payment of salaries or expenses
8to an employee in accordance with this Section.
9    As used in this subsection (e-1), "family member" means a
10spouse, child, stepchild, parent, brother, or sister of a
11commissioner or a child, stepchild, parent, brother, or sister
12of a commissioner's spouse.
13    (f) An independent audit of the guarantee fund and the
14management of the program shall be conducted annually and made
15available to the public through any office of the governing
16commission or a public facility such as a local public library
17located within the territory of the program.
18(Source: P.A. 102-599, eff. 1-1-22; 103-737, eff. 1-1-25.)