093_SB0208eng

 
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 1        AN ACT concerning teachers.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 1.  Short title.  This Act may be  cited  as  the
 5    Teacher Homebuyer Assistance Act.

 6        Section  5.   Legislative findings and declarations.  The
 7    General Assembly finds and declares all of the following:
 8             (1)  Attracting  and   retaining   fully   qualified
 9        teachers  is  of  paramount  importance  in ensuring that
10        pupils have fair access to a quality education and a fair
11        chance  to  succeed  academically.   This  is  especially
12        critical for schools that have the  greatest  number  and
13        percentage  of  pupils  with  the  most acute educational
14        needs, who  predictably  may  score  lowest  on  academic
15        achievement examinations.
16             (2)  A  high priority should be placed on attracting
17        and retaining quality  teaching  professionals  who  have
18        demonstrated  exemplary  teaching  ability,  who serve in
19        hard-to-staff schools, and who live in high-cost areas.
20             (3)  Teachers face housing problems that  exacerbate
21        school districts' efforts to attract and retain qualified
22        teachers.   Many cannot afford to live in the communities
23        in which they teach, making  it  difficult  for  them  to
24        become   active  members  of  their  school's  community.
25        Providing opportunities for teachers  to  participate  in
26        after-school   activities,  from  tutoring  to  coaching,
27        benefits the children and community in which the  teacher
28        is employed.
29             (4)  Over  the next 3 years it is estimated that 40%
30        of the State's teachers will be eligible for  retirement.
31        New  teachers  will need to be hired and retained to meet
 
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 1        the demand generated by increasing student enrollment  in
 2        Illinois' public schools.

 3        Section 10.  Definitions.  In this Act:
 4        "Authority"   means   the  Illinois  Housing  Development
 5    Authority.
 6        "Low-performing challenge school" means a  public  school
 7    that  does not meet State goals, as defined and designated by
 8    the State Board of Education.
 9        "Teacher" means a person who is currently employed  as  a
10    full-time  teacher  in  a low-performing challenge school and
11    who is certified in this State in the subject field or  grade
12    level for which the teacher is employed.
13        "Termination  of  employment"  means  that  for  whatever
14    reason,  the  borrower  is  no  longer  a teacher at any time
15    during the first 5 years immediately following  the  date  of
16    recordation  of  the subordinate mortgage loan deed of trust.
17    However, it shall not be considered termination of employment
18    if the borrower is still employed at the same school  at  the
19    time of recordation of the subordinate mortgage loan, but the
20    school  is  no  longer  considered a low performing challenge
21    school or if the borrower  accepts  a  teaching  position  at
22    another  public  school  and  his  or  her departure from the
23    low-performing  challenge  school   was   involuntary.    The
24    Authority  may  establish  guidelines  for  consideration  of
25    hardship  cases  in which it may waive this 5-year continuous
26    employment requirement.

27        Section 15.  Teacher homebuyer assistance program.
28        (a)  The  Authority  shall  establish  and  administer  a
29    teacher homebuyer assistance program and  allocate  funds  in
30    accordance  with this Act.  The purpose of this program is to
31    provide down payment assistance to  teachers  for  purchasing
32    residences   within   the  jurisdiction  in  which  they  are
 
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 1    employed.
 2        (b)  The maximum down payment  assistance  to  a  teacher
 3    under  this  Act shall be determined by the median home price
 4    in the school district where  the  teacher  is  employed,  as
 5    follows:
 6             (1)  Any  teacher employed in a school district with
 7        a median home price over $300,000 is eligible for maximum
 8        down payment assistance of $20,000.
 9             (2)  Any teacher employed in a school district  with
10        a median home price from $150,000 to $300,000, inclusive,
11        is  eligible  for  maximum  down  payment  assistance  of
12        $15,000.
13             (3)  Any  teacher employed in a school district with
14        a median  home  price  below  $150,000  is  eligible  for
15        maximum down payment assistance of $10,000.
16        (c)  Assistance  under this Act shall be in the form of a
17    deferred payment, low-interest subordinate mortgage loan with
18    a term not longer than the term of the first  mortgage  loan.
19    Interest  on this subordinate mortgage loan shall accrue at a
20    rate of up to 5% per annum.
21        (d)  The borrower's obligation to repay the loan shall be
22    evidenced  by  a  lien  consisting  of  a  deed   of   trust,
23    subordinate in priority to the borrower's first mortgage loan
24    financing required to purchase the property.  If the borrower
25    has  continuously  been  a  teacher  for  the  5-year  period
26    immediately   following   the  date  of  recordation  of  the
27    subordinate mortgage loan deed of trust and there has been no
28    termination of employment, then repayment of the  subordinate
29    mortgage  loan  shall  be  forgiven and considered a grant so
30    long as the borrower  produces  employment  records,  to  the
31    Authority's  satisfaction, that the borrower has continuously
32    been a teacher during that 5-year period.
33        (e)  Repayment of the principal and accrued  interest  is
34    due and payable at the earlier of the following events:
 
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 1             (1)  sale of the residence;
 2             (2)  the  borrower's  failure to continuously occupy
 3        the residence in accordance with paragraph (3) of Section
 4        20 of this Act; or
 5             (3)  satisfaction of the first mortgage loan.
 6    In no event shall this loan be assumable.
 7        (f)  In the event of termination  of  employment  by  the
 8    borrower  within  the  first 5 years following recordation of
 9    the subordinate mortgage loan deed  of  trust,  the  borrower
10    shall  be obligated to repay to the Authority, in addition to
11    other amounts due  on  the  loan,  the  pro  rata  amount  of
12    principal  and  accrued  interest  on  the loan that directly
13    relates to the period of time within that  5-year  period  in
14    which  the  borrower  was not a teacher.  In order to qualify
15    for any pro rata forgiveness of repayment of  the  loan,  the
16    borrower  shall produce employment records to the Authority's
17    satisfaction that the borrower was a teacher for  the  period
18    in  which the pro rata forgiveness of loan is sought.  If the
19    borrower produces evidence acceptable to the  Authority  that
20    the  borrower has satisfied all of the requirements specified
21    in this Section to qualify for forgiveness  of  the  loan  in
22    total,  the  Authority must execute any documents that may be
23    necessary so that the borrower may clear title.

24        Section 20.  Qualifying for loan.  In  order  to  qualify
25    for a loan under this Act, all of the following criteria must
26    be met:
27             (1)  The borrower must qualify as a teacher.
28             (2)  The borrower's household income must not exceed
29        that  specified  in Section 143 of Title 26 of the United
30        States Code.
31             (3)  The residence financed under this Act  must  be
32        continuously  occupied  by  the  borrower  as  his or her
33        principal residence for at least 5  years  following  the
 
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 1        recordation of the deed of trust securing the subordinate
 2        mortgage  loan.   If  the  borrower  fails  to  meet this
 3        condition, the principal and accrued interest of the loan
 4        is immediately due and payable.
 5             (4)  The  residence  being  financed   must   be   a
 6        single-family  residence,  condominium,  or  manufactured
 7        home located within the boundaries of the school district
 8        that employs the borrower.

 9        Section 25.  Rules.  The State Board of Education and the
10    Authority  may  adopt  any rules necessary to carry out their
11    responsibilities under this Act.