Signed by Governor Pat Quinn

Vote Smart's Synopsis:

Vote to pass a bill that establishes the Foreclosure Prevention Program, establishes the Abandoned Residential Property Relief Program, and extends the "Homeowner Protection Act" (735 ILCS 5/15-1502.5).

Highlights:

-Establishes the Foreclosure Prevention Program to make grants to counseling agencies for housing counseling and to community-based organizations for foreclosure prevention outreach programs, and specifies that funds from the Foreclosure Prevention Program Fund shall be used to finance the program as follows (Sec. 5):

-25 percent of the funds shall be used to make grants to counseling agencies that provide services in Illinois outside of Chicago; -25 percent of the funds shall be distributed to the city of Chicago to make grants to counseling agencies located within Chicago; -25 percent of the funds shall be used to make grants to community-based organizations located outside of Chicago; and -25 percent of the funds shall be used to make grants to community-based organizations located within Chicago.

-Establishes the Abandoned Residential Property Municipality Relief Program to make grants to municipalities to assist with removal costs and securing or enclosing costs , and specifies that funds from the Abandoned Residential Property Municipality Relief Fund shall be used to finance the program as follows (Sec. 5):

-75 percent shall be distributed to municipalities other than Chicago; and -25 percent shall be distributed to the city of Chicago.

-Imposes a fee for plaintiffs filing residential real estate foreclosure complaints in an amount of $50, the proceeds of which shall be deposited into the Foreclosure Prevention Counseling Program Fund (Sec. 15). -Imposes a fee for purchasers of foreclosed residential real estate via judicial sales, excluding mortgagees, at a rate of $1 for each $1,000 or fraction thereof of the amount paid, but not to exceed $300, the proceeds of which shall be deposited into the Abandoned Residential Property Municipality Relief Fund (Sec. 15). -Extends the "Homeowner Protection Act" (735 ILCS 5/15-1502.5) so that it expires on July 1, 2013 rather than April 6, 2011 (Sec. 15). -The text of this bill was replaced by a substitute amendment sponsored by Rep. Joseph Lyons.

Full Bill Text