Law would allow loans for overdue taxes – Nadig Newspapers
by JASON MEREL
As the county treasurer braces for the first property tax sale overdue in over 2 years, legislation signed by Governor JB Pritzker would lay the groundwork to eventually help some homeowners get low-rate loans. interest in avoiding it in the future.
House Bill 2614, sponsored by State Representative Eva Dina Delgado (D-3) and State Senator Cristina Pacione-Zayas (D-20), would authorize home equity programs established under the Illinois Equity Insurance Act to provide low or no interest. loans to homeowners for overdue property tax payments.
“We must use all the tools at our disposal to help homeowners who are at risk of default, especially in light of a historically difficult year that has affected everyone’s finances,” Pacione-Zayas said in a press release. . “With this law, homeowners on the northwest side will get the extra help they need to pay their property taxes.”
The bill allows a government commission with at least $ 4,000,000 in its guarantee fund to establish a “overdue tax loan fund” to provide low-rate emergency loans. of interest to eligible applicants. A governance commission that wants to establish the fund may do so by referendum approved by a majority of voters or by a resolution of the governance commissioners with two-thirds approval.
One amendment to the bill includes the Northwest Home Equity Insurance Program. The program would have the power to create a new type of loan assistance to help prevent homeowners from becoming delinquent on property tax payments. The assistance loan will be modeled on existing loans for home improvement and foreclosure prevention, according to Pacione-Zayas.
“Homeowners now have the option of getting a zero percent loan instead of a predatory high-interest loan to help save their homes,” said Ernie Lukasik, organizer for the Northwest Side Housing Center. “It gives us additional tools to fight displacement. We need to cultivate as many new tools as possible to keep residents in their homes.
“Lawmakers have worked really hard to get this passed and I think it’s a great addition to what we do and the neighborhoods we serve,” said NHEAP Executive Director Ivy Ellis.
Ellis said there were a few details to work out, including board membership and identifying a participating bank, as the program subsidizes interest on loans rather than creating loans.
“We are in talks and our board is very anxious to see where this will lead,” she said. “We are moving forward and hopefully we can launch this in the first or second quarter of 2022.”
The county tax sale will take place on November 9. The bill will come into force on January 1.