Housing Action Illinois 2010 State Policy Agenda

RESOLIVNG THE STATE BUDGET CRISIS

Support Progressive Fiscal Reform

Support progressive fiscal reform to address Illinois’ structural budget deficit and restore cuts to housing-related human service programs. As of the beginning of 2010, Illinois is delinquent in paying more than $5 billion it owes to private sector providers of human and health-care services and others. Going into fiscal year 2011, Illinois is facing a $13 billion budget deficit and another year of cuts to human service programs.

Overall total state and local tax burden as a percentage of income in Illinois ranks 41st in the country. This tax burden figure includes every tax and fee charged by any unit of state or local government in Illinois, versus those charged by every unit of state or local government in every other state.  Housing Action Illinois will work with Responsible Budget Coalition to organize support for progressive fiscal reform in targeted legislative districts.

Restore State Funding for the Homeless Prevention Program

The program provides financial assistance to prevent individuals and families from becoming homeless and help those who are experiencing homelessness to be quickly re-housed and stabilized. For fiscal year 2010 funding was reduced to $2.4 million from $11 million in the previous fiscal year, a 78% cut.  While the federal Homeless Prevention and Rapid Rehousing Program (HPRP) stimulus funds has very similar allowable uses, we need to restore state funding to insure that resources are available when HPRP funds are exhausted.

Emergency Food and Shelter Funding/Rebranding of Program

Restore prior year budget cuts for the Emergency Food and Shelter Program.  The program provides overnight shelters, transitional housing and supportive services. Funding for fiscal year 2010 is $9.1 million.  Funding in fiscal year 2003 was $9.7 million. We will also request the renaming of the “Emergency Food & Shelter” line item to “Emergency and Transitional Housing.” This proposed name more fully captures the role of overnight shelters and transitional housing programs in the long-term process of rehousing individuals and families.

ADDRSSING THE FORECLOSURE CRISIS

House Bill 5735: Amend State Foreclosure to Promote Loss Mitigation Compliance

Loss Mitigation laws, such as the federal Home Affordable Modification Program (HAMP), provide homeowners an opportunity to refinance into more affordable monthly payments (loan modification) or provide mortgagors and mortgagees with foreclosure alternatives.  But servicers are not fulfilling their duties under these programs.  

Our proposed amendments to Illinois Mortgage Foreclosure Law would require that foreclosure complaints state whether loss mitigation requirements apply to the mortgage and how the lender is complying with those requirements; requires judicial findings about compliance with applicable loss mitigation programs as a part of a foreclosure judgment; and allow foreclosure judges to reject the foreclosure sale if it finds that the lender has not complied with applicable loss mitigation laws.

Cook County Mediation Program Design

The Cook County Board has appropriated $3.5 million for the creation of a countywide foreclosure mediation program for borrowers and servicers to be implemented in 2010.  We will work as part of the Chancery’s Court Mediation and Housing Counseling Subcommittee and other key stakeholders to design and implement the program.

Promote Servicer Accountability

This initiative is designed to track individual loan modification cases opened by nonprofit housing counseling agencies in order to evaluate how successful loan servicers are in carrying out their loss mitigation procedures and how likely they are to work with a HUD-certified housing counseling agency.  Through a combination of interviews, reports, and public meetings, we will administer a program that will analyze the success rate of practiced loss mitigation strategies, create communication and accountability systems between housing counseling agencies and loan servicers, and develop appropriate public policy responses.

PROMOTE FAIR HOUSING AND HOUSING OPPORTUNITIES

House Bill 5163: Promote Fair Housing for Seniors in Assisted Living

The Illinois Assisted Living and Shared Housing Act (IAL/SHA) is inconsistent with the Federal Fair Housing Act (FHA) and the Illinois Human Rights Act (IHRA), allowing Illinois seniors to face discrimination and denial of needed services and housing because of race or disability. The proposed amendments amend the provisions of the IAL/SHA that govern the licensing, construction and operating standards of an Assisted Living establishment to reinforce that senior housing providers must comply with the FHA and the IHRA.

House Bill 5523: Affirmative Defense from Eviction for Survivors of Sexual Violence

Amend to the Forcible Entry and Detainer Act to provide an affirmative defense from eviction from rental housing predicated on the tenant’s, lessee’s, or household member’s status as a victim of domestic violence, dating violence, stalking, or sexual violence. The law will expressly permit the landlord to still pursue an eviction against a tenant if that tenant was the perpetrator of the violence.

House Bill 5125 and Senate Bill 3497: Not-for-profit Rental of Condominiums and Townhouses

We will reintroduce legislation to protect the ability of not-for-profit organizations with federal tax-exempt charitable status to rent condominiums and/or townhouses that they own in order to provide affordable housing.

Additional information on our state leglslative inititiaitves can be found at http://www.ilga.gov.