91st General Assembly
Summary of HB4324
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House Sponsors:
HAMOS-BURKE-BOST-MCCARTHY-HOEFT, MULLIGAN, SCOTT, SILVA, 
   DAVIS,MONIQUE, JONES,LOU, HOWARD, KENNER, SHARP, 
   OSTERMAN AND LANG.

Short description: 
HOMEOWNER MORTGAGE ASSISSTANCE                                             

Synopsis of Bill as introduced:
        Amends  the  Illinois  Housing  Development  Act.   Creates   the      
   Homeowner's  Emergency Mortgage Assistance Program.  Provides that the      
   Illinois Housing Authority or not-for-profit  corporations  designated      
   by  the  Authority  may  make  payments on mortgages for single-family      
   residences  under  certain  circumstances.   Provides  that   when   a      
   mortgagor  applies  for  assistance from the Authority or a designated      
   agency, the mortgagee may not accelerate the maturity of a mortgage or      
   commence or continue foreclosure and other  legal  proceedings.   Sets      
   the requirements for the application for mortgage assistance. Requires      
   a  mortgagor  to  make monthly payments to the Authority or designated      
   agency when receiving mortgage assistance.  Provides for the repayment      
   of mortgage assistance by the mortgagor.  Effective immediately.            
        HOUSE AMENDMENT NO. 1.                                                 
        Further amends the Illinois  Housing  Development  Act.  Provides      
   that  a person is eligible for assistance when, among other things, at      
   least  one  full  monthly  installment  (instead  of  2  full  monthly      
   installments) is unpaid after the application of partial  payments  to      
   the  account.  Deletes  a  provision  that  a  person  is eligible for      
   assistance when that person is unable to make full  mortgage  payments      
   before  the  expiration  of a 60-day period beginning on the date that      
   the mortgagee sent notice to the mortgagor  of  intent  to  foreclose.      
   Deletes  provisions  prohibiting a mortgagee from taking certain legal      
   actions during  the  30-day  period  after  notice  is  sent  to  the       
   mortgagor,  during  the 30 day period after an initial meeting between      
   the mortgagor and an agency, during the period in which an application      
   for assistance is pending, or if  payments  toward  the  mortgage  are      
   being  made  through  the  Homeowner's  Emergency  Mortgage Assistance      
   Program. Deletes provisions concerning the requirements for the notice      
   of legal action. Provides that a mortgagee must include in  the  first      
   delinquency  notice a statement that the mortgagor may be eligible for      
   the Homeowner's Emergency Mortgage Assistance  Program  by  calling  a      
   toll-free  number.   Requires  the  Chairman  of  the Illinois Housing      
   Development Authority  to  administer  the  toll-free  number  and  to      
   provide referrals to  designated agencies.  Allows a person to request      
   assistance from a designated agency or from any other agency providing      
   financial  counseling  assistance.  Provides  that this amendatory Act      
   shall not be construed to impair the  legal  right  of  mortgagees  to      
   enforce contracts or mortgage agreements.  Makes other changes.             
          STATE MANDATES NOTE, H-AM 1                                          
          (Dept. of Commerce and Community Affairs)                            
          HB 4324 does not meet the definition of a State mandate under        
          the State Mandates Act.                                              
          HOUSING AFFORDABILITY NOTE, H-AM 1 (Housing Development Auth.)       
          There will be no fiscal effect on constructing, purchasing,          
          owning, or selling a single family residence due to this             
          legislation.                                                         
          FISCAL NOTE (Housing Development Authority)                          
          The long range fiscal effect on IHDA is unknown. Data from a         
          similar program in Pennsylvania indicate that since 1984 there       
          have been 88,450 applications and 25,792 mortgage assistance         
          loans with a total appropriation (excluding general and admin-       
          istrative costs) of $177.45 million. The program's staff has         
          grown from 7 to 37 with an annual administrative budget of $3        
          million, including $1 million for local housing counseling           
          agencies. Loan collections exceeded disbursements for the            
          first time in FY 99 although general and administrative costs        
          were funded with repayments. As a result, additional general         
          revenue funds were not appropriated to the agency last fiscal        
          year. Pennsylvania has disbursed loans totaling $272.7 million       
          and written off approximately $48.7 million.                         
          FISCAL NOTE, H-AM 1 (Housing Development Authority)                  
          Same as previous fiscal note.                                        
 
Last action on Bill: SESSION SINE DIE

   Last action date: 01-01-09

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   1     SENATE -   0


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