(65 ILCS 95/8)
(from Ch. 24, par. 1608)
Procedures for obtaining benefits.
(a) In order to be eligible
for payment under a program created pursuant to this Act, a member must
follow the program guidelines adopted by the governing commission as well
as the procedures set forth in this Section.
(b) A member must file a "Notice of Intent to Sell" with the governing
commission in accordance with program guidelines if and when the member
intends to place the guaranteed residence on the market for sale. Upon
receipt of a "Notice of Intent to Sell", the governing commission shall
provide the member with a copy of this Section and a written description of
the rights and responsibilities of both the member and the governing
commission and the procedures for obtaining benefits; provided, however,
that such information provided by the governing commission shall not
restrict or advise the member with respect to the selection of a real
estate broker or agent. The information shall be delivered to the member
either in person or by registered mail. A member is not eligible to file
"Notice of Intent to Sell" until 5 years after the member's registration date.
(c) A member is required to offer the guaranteed residence
for sale according to the program guidelines, including the
utilization of complete and proper methods for listing residential
property, listing the guaranteed residence at a price which reasonably can
be expected to attract buyers, and providing reasonable
access for potential buyers to see the guaranteed residence.
(d) A member shall list the guaranteed residence in accordance with
program guidelines with a real estate broker of the member's choice, for up
to 90 days following the date on which the member listed the residence.
(e) Within 60 days of receipt of a "Notice of Intent to Sell", the
governing commission shall have the guaranteed residence
inspected by a program appraiser, at the governing commission's expense,
in order to determine if the guaranteed residence is in substantially the
same condition as described by the program appraisal attached to the
certificate of participation. If the guaranteed residence fails to meet
this standard, the following procedures shall be followed:
(1) The program appraiser shall determine the
percentage depreciation of the guaranteed residence due to failure to maintain the premises or due to physical perils or other causes not covered by the program.
(2) This percentage figure shall be multiplied by the
guaranteed value to determine the dollar depreciation.
(3) This dollar depreciation shall be subtracted from
the guaranteed value to derive a lower guaranteed value to be used for the purpose of determining the amount of payment under the program.
(f) A member shall make the guaranteed residence available to a program
appraiser within a reasonable time within this 60 day period after receipt
of notice from the commission that an inspection under paragraph (e) of
this Section is required, or the member's coverage under the program shall
be null, void and of no further effect, and the member's registration fee
shall be forfeited.
(g) Ninety days after listing the guaranteed residence, a member shall be
eligible to file a "Notice of Intent to Claim" with the governing commission,
in accordance with guidelines established by the governing commission,
attesting to the fact that the member has followed program guidelines in
offering the guaranteed residence for sale, that the member is unable to
obtain an offer for purchase of the guaranteed residence for at least its
guaranteed value, and that the member intends to file a claim against the
program. Such notice shall include verifiable evidence of placement of the
guaranteed residence on the market, the dates such placement took place,
and shall list all reasonable offers to buy the property. Verifiable
evidence may include a copy of advertisements for sale, a contract with a
licensed real estate broker, or other evidence satisfactory to a majority
of the governing commission.
(h) Upon receipt of the "Notice of Intent to Claim", the governing
commission has 60 days during which it shall require the member to list the
guaranteed residence at a price that the governing commission deems
reasonable with a real estate broker of the member's choosing. The real
estate broker chosen by the member shall advertise the guaranteed residence
throughout the municipality which encompasses the territory of the program.
(i) During the 60 day period described in paragraph (h) of this Section,
the member shall forward to the governing commission all offers of purchase
by either personal delivery or registered mail.
If the member receives an offer of purchase which can reasonably be
expected to be consummated if accepted and whose gross selling value is
greater than the guaranteed value of the guaranteed residence, then no
benefits may be claimed under the program. If the member receives an
offer to purchase at a gross selling value that is less than the guaranteed
value, a majority of the Commission must determine if it is a bona fide offer. If the governing commission determines the offer is not bona fide, the offer shall be deemed rejected by the governing commission. The member shall have a right to request arbitration. If the offer is deemed bona fide, the governing commission shall, within 7 working days of the receipt
of such offer, either:
(1) approve the offer, in which case the governing
commission shall authorize the payment of the amount afforded under this Act upon receipt of verifiable evidence of the sale of the guaranteed residence subject to the following conditions: (i) sales involving eminent domain shall be covered as set forth in paragraph (l) of this Section; (ii) sales subsequent to an insured property and casualty loss shall be guaranteed for the guaranteed value as determined according to paragraph (e) of this Section; (iii) contract sales shall be guaranteed as determined by the guaranteed value in paragraph (e) of this Section, however proceeds payable from the program shall be disbursed in equal annual installments over the life of the contract; or
(2) reject the offer, in which case the member shall
continue showing the guaranteed residence until the termination of the 60 day period.
Any offer that the governing commission deems not to be a bona fide
offer shall be rejected by the governing commission.
Unless the member and the governing commission otherwise agree, the
governing commission's failure to act upon an offer within 7 working days
shall be deemed to be a rejection of the offer.
If the member does not receive a bona fide offer within the 60 day period described in subsection (h), the Commission may order an appraisal, at the governing commission expense, of the property to determine the current fair market value. If the current fair market value is below the guaranteed value, the Commission may require the member to list the guaranteed residence at the fair market value price with a real estate broker of the member's choosing. If the member does not receive a bona fide offer within 90 days thereafter, the member may further reduce the price with the consent of the Commission. Every 90 days thereafter, the member may request, and the Commission may consent to, a reduced listing price.
(j) No guarantee is afforded by the program unless the member has accepted a bona fide offer and the sale of the guaranteed property has closed, and until 60 days after a member
files a "Notice of Intent to Claim". The governing commission
shall be required to make payments to a member only upon receipt of
verifiable evidence of the actual sale of the guaranteed residence in
accordance with the terms agreed upon between the member and the governing
commission at the time the governing commission authorized payment. If a
member rejects an offer for purchase which has been submitted to and
approved by the governing commission, the governing commission or program
shall not be liable for any future guarantee payment larger than that
authorized for this proposed sale.
(k) Except as otherwise provided in this Act, payments under the program
as provided in Section 7 of this Act shall not be made until the sale of
the guaranteed residence has closed and title has passed or the beneficial
interest has been transferred.
(l) When a guaranteed residence is to be acquired through the use of
eminent domain by a condemning body, the following procedures shall apply:
(1) If the member rejects an offer from the
condemning body equal to or greater than the guaranteed value, then no benefits may be claimed under the program.
(2) If the condemning body offers less than the
guaranteed value, the governing commission may either: (i) pay 100% of the difference between the guaranteed value and the offered price if the member agrees to sell at the offered price; or (ii) advise the member that the offer is inadequate and should be refused. If the member refuses the offer and the final court determination of the value of the property is less than the guaranteed value, then the program shall pay 100% of the difference between the judgment and the guaranteed value.
(Source: P.A. 95-1047, eff. 4-6-09.)