Support Foreclosure-Related Legislation in Springfield

The Housing Committee of the Illinois House of Representatives is meeting tomorrow to vote on four pieces of legislation to positively address the foreclosure crisis. All the bills are being strongly opposed by the Illinois Bankers Association and other interest groups representing financial institutions. We’re hoping to add your organization to their list of supporters. Here’s a summary of the bills.

Three of the bills were developed by BPI, in collaboration with many community organizations, service providers, and municipalities, as a package with two primary goals:

• Support and expand efforts to help at-risk homeowners save their homes.
• Help stabilize neighborhoods that have been hit hard by foreclosure.

HB 1810: Generate Funding to Help People Save Their Homes

This legislation would impose a $500 fee, usually paid by the bank, at the time of sale of foreclosed homes. The funds would be used to support foreclosure prevention activities like borrower outreach, housing counseling, free legal assistance, and court-based mediation.

HB 1109: Give Local Governments Tools to Stabilize Neighborhoods and Get Abandoned Property Into Responsible Hands Faster

This legislation would help stabilize neighborhoods by authorizing local governments to enact ordinances that hold financial institutions responsible for maintaining and securing vacant properties. All too often, property owners leave before foreclosure is completed (sometimes even before it is initiated), and municipalities have nowhere to turn to keep these properties clean and safe. The legislation would also provide clear standards that would permit “fast track” foreclosure for abandoned properties, speeding up the turnaround for abandoned properties.

HB 1108: Put Vacant Properties Back Into Productive Use

This legislation would help interested municipalities return vacant and abandoned properties to productive use by authorizing them to create land banks and by giving land banks useful new tools. These land banks can hold properties at a time when there is no private market interest, ensure that they are well maintained, and package them to promote economic development and community revitalization.

If you have any questions, please contact Robbie Silverman at 312-759-8251 or rsilverman@bpichicago.org.

Support HB 1574: Protect Innocent Renters From Losing Security Deposits Because Of Foreclosure

The fourth bill was developed by the Sargent Shriver National Center on Poverty Law and Housing Action Illinois.

Under Illinois law, when ownership of a rental property changes, any new owner becomes responsible for the tenants’ security deposit – except when that new owner is the bank after foreclosure.

Tenants living in foreclosed properties deserve the same right to collect their security deposit from their current landlord, just like any other tenant – even if that landlord is the bank. Indeed, the City of Chicago passed an ordinance in 2010 that made banks, like any other owner, responsible for security deposits. But renters living outside of Chicago remain unprotected. HB 1574 will:

• Eliminate the exception in the Security Deposit Return Act for lien holders.
• Put banks in the position of any other landlord and make them responsible for security deposits.

We need your support to pass these bills!

If you would like to support this package of foreclosure-related legislation, there are three ways you can help:

1) Add your organization to the list of supporters: Sign on as a supporter of these pieces of legislation by replying to this email confirming your support and letting us know how you would like your organization to be listed.

2) Authorize us to sign a slip in support of this legislation on your organization’s behalf during various legislative hearings in Springfield. To do this, reply to this email with your name, your organization’s name, and your organization’s address, and note that we may slip in support on your organization’s behalf.

3) Call your state representative in Springfield and voice your support for the bills. We particularly need calls to the Housing Committee members:

• Karen Yarbrough
• Esther Golar
• David Leitch
• La Shawn Ford
• Connie Howard
• Renée Kosel
• Camille Lilly
• Deborah Mell
• JoAnn Osmond
• Tim Schmitz
• Ron Stephens
• Art Turner, Jr.
• Jim Watson

You can get more information on the legislation and the phone numbers for legislators at www.ilga.gov.

For more information contact Bob Palmer, Housing Action Illinois, 312-939-6074 x. 206 or bob@housingactionil.org.

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