Bill Text: IL HB2360 | 2009-2010 | 96th General Assembly | Enrolled
Bill Title: Creates the Illinois Homeowner's Emergency Assistance Program Act. Contains provisions concerning the powers and duties of the Illinois Housing Development Authority with respect to the Act, the eligibility of a homeowner for assistance under the Act, the assistance payments for eligible homeowners, and funding for the program. Provides that the Act is repealed on January 1, 2011. Effective immediately.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Passed) 2010-06-10 - Public Act . . . . . . . . . 96-0921 [HB2360 Detail]
Download: Illinois-2009-HB2360-Enrolled.html
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1 | AN ACT concerning regulation.
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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 | ||||||
5 | Illinois Homeowner's Emergency Assistance Program Act.
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6 | Section 5. Illinois Housing Development Authority; powers; | ||||||
7 | duties. | ||||||
8 | (a) The Illinois Housing Development Authority shall have | ||||||
9 | the power to issue grants to residents of Illinois who are | ||||||
10 | eligible for assistance as described in this Act. | ||||||
11 | (b) The Authority shall implement and administer the | ||||||
12 | program established by this Act. | ||||||
13 | (c) The Authority shall ensure that a homeowner receiving | ||||||
14 | assistance under this Act has received counseling from a | ||||||
15 | HUD-certified housing counseling agency.
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16 | Section 10. Definitions. For purposes of this Act: | ||||||
17 | "Authority" means the Illinois Housing Development | ||||||
18 | Authority. | ||||||
19 | "Counseling" means in-person counseling provided by a | ||||||
20 | counselor employed by a HUD-certified housing counseling | ||||||
21 | agency or, where a hardship would be imposed on a homeowner, | ||||||
22 | documented telephone counseling. A hardship exists if the |
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1 | homeowner is confined to his or her home due to a medical | ||||||
2 | condition, as verified in writing by a physician, or the | ||||||
3 | homeowner resides 50 miles or more from the nearest | ||||||
4 | participating HUD-certified housing counseling agency. In | ||||||
5 | instances of telephone counseling, the homeowner must supply | ||||||
6 | any necessary documents to the counselor at least 72 hours | ||||||
7 | prior to the scheduled telephone counseling session. | ||||||
8 | "Counselor" means a counselor employed by a HUD-certified | ||||||
9 | housing counseling agency. | ||||||
10 | "Lender" means that term as it is defined in Section 1-4 of | ||||||
11 | the Residential Mortgage License Act of 1987. | ||||||
12 | "Good faith" means honesty in fact in the conduct or | ||||||
13 | transaction concerned.
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14 | Section 15. Eligibility for assistance. | ||||||
15 | (a) No assistance may be given to a homeowner pursuant to | ||||||
16 | this Act unless: | ||||||
17 | (1) The property securing the mortgage is the | ||||||
18 | homeowner's primary residence. | ||||||
19 | (2) The homeowner is a resident of this State and his | ||||||
20 | or her property is being foreclosed due to failure to make | ||||||
21 | mortgage payments. | ||||||
22 | (3) The lender agrees to halt foreclosure proceedings | ||||||
23 | upon written notification by the Authority that a homeowner | ||||||
24 | has been approved for assistance. | ||||||
25 | (4) The homeowner's household income is less than 120% |
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1 | of area median income determined by the U.S. Department of | ||||||
2 | Housing and Urban Development. | ||||||
3 | (5) The mortgage lender agrees to renegotiate in good | ||||||
4 | faith the terms of the mortgage being foreclosed upon | ||||||
5 | written notification that the homeowner has been approved | ||||||
6 | by the Authority. | ||||||
7 | (6) The homeowner has attended a counseling session | ||||||
8 | that was provided by a HUD-certified housing counseling | ||||||
9 | agency. | ||||||
10 | (7) The borrower is a resident of this State. | ||||||
11 | (8) The homeowner agrees to defend and indemnify and | ||||||
12 | hold harmless the Authority from and against any and all | ||||||
13 | damages arising out of the Authority's payment on behalf of | ||||||
14 | the borrower. | ||||||
15 | (9) The lender agrees to defend and indemnify and hold | ||||||
16 | harmless the Authority from and against any and all damages | ||||||
17 | arising out of the Authority's payment on behalf of the | ||||||
18 | borrower. | ||||||
19 | (b) Upon a determination that the conditions of eligibility | ||||||
20 | described in this Act have been met, and funds for assistance | ||||||
21 | are available, the homeowner shall become eligible for the | ||||||
22 | assistance described in Section 20 of this Act.
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23 | Section 20. Assistance payments. | ||||||
24 | (a) If the Authority determines that a homeowner is | ||||||
25 | eligible for assistance under this program, the Authority shall |
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1 | pay directly to each lender payments on behalf of the homeowner | ||||||
2 | seeking assistance under the program. This amount shall | ||||||
3 | include, but not be limited to, delinquencies of principal, | ||||||
4 | interest, taxes, assessments, ground rents, hazard insurance, | ||||||
5 | mortgage insurance, and credit insurance premiums. | ||||||
6 | (b) An eligible applicant may not receive a grant in excess | ||||||
7 | of $6,000, or the sum of 3 monthly mortgage payments on the | ||||||
8 | property, whichever is less. | ||||||
9 | (c) Grants made under this Act may only be used to satisfy | ||||||
10 | mortgage financing with a first lien position.
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11 | Section 25. Program funding. | ||||||
12 | (a) The Authority shall use only funds specifically | ||||||
13 | appropriated by the General Assembly for the purposes of this | ||||||
14 | Act to make payments to lenders, to provide reimbursement to | ||||||
15 | HUD-certified housing counseling agencies for costs incurred | ||||||
16 | in assisting borrowers, and to reimburse the Authority for | ||||||
17 | administration of the program. Assistance under this Act shall | ||||||
18 | not be available at any time the Authority does not have funds | ||||||
19 | currently available to approve applications for emergency | ||||||
20 | mortgage assistance. | ||||||
21 | (b) This Act is subject to appropriation; however, at no | ||||||
22 | time shall the cumulative amount of grants issued under this | ||||||
23 | program exceed $3,000,000 in a calendar year.
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24 | Section 30. Repealer. This Act is repealed on January 1, |
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1 | 2011.
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2 | Section 99. Effective date. This Act takes effect upon | ||||||
3 | becoming law.
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