2023 Illinois Compiled Statutes › Chapter 310 - HOUSING › 310 ILCS 115/ - Teacher Homebuyer Assistance Act.

(310 ILCS 115/1)
Sec. 1. Short title.   This Act may be cited as the Teacher
Homebuyer Assistance Act.
(Source: P.A. 95-449, eff. 8-27-07.)
(310 ILCS 115/5)
Sec. 5. Legislative findings and declarations.  The General
Assembly finds and declares all of the following:
(1) Attracting and retaining fully qualified teachers     is of paramount importance in ensuring that pupils have fair access to a quality education and a fair chance to succeed academically.  This is especially critical for schools that have the greatest number and percentage of pupils with the most acute educational needs, who predictably may score lowest on academic achievement examinations.
(2) A high priority should be placed on attracting     and retaining quality teaching professionals who have demonstrated exemplary teaching ability, who serve in hard-to-staff schools, and who live in high-cost areas.
(3) Teachers face housing problems that exacerbate     school districts' efforts to attract and retain qualified teachers.  Many cannot afford to live in the communities in which they teach, making it difficult for them to become active members of their school's community.  Providing opportunities for teachers to participate in after-school activities, from tutoring to coaching, benefits the children and community in which the teacher is employed.
(Source: P.A. 95-449, eff. 8-27-07.)
(310 ILCS 115/10)
Sec. 10. Definitions.   In this Act:
"Authority" means the Illinois Housing Development Authority.
"Hard-to-staff position" means a teaching category (such as special education, mathematics, or science) in which statewide data compiled by the State Board of Education indicates a multi-year pattern of substantial teacher shortage or that has been identified as a critical need by the school board.
"Hard-to-staff school" means an elementary or secondary school that ranks in the upper third of schools in this State in the number of teachers who leave their positions. The State Board of Education shall rank schools for this purpose based on mobility and teacher attrition over a 5-year average.
"Teacher" means a person who is currently employed as a
full-time teacher in a hard-to-staff  school or a hard-to-staff position  and who is
certified in this State in the subject field or grade level for which
the teacher is employed.
"Termination of employment" means that for whatever reason,
the borrower is no longer a teacher at any time during the first 5 years
immediately following the date of recordation of the subordinate
mortgage loan deed of trust.  However, it shall not be considered
termination of employment if the borrower is still employed at the
same school at the time of recordation of the subordinate mortgage
loan, but the school is no longer considered a hard-to-staff school or the position in which the teacher is employed is no longer considered a hard-to-staff  position or if the borrower accepts a teaching position at
another public school and his or her departure from the hard-to-staff school was involuntary.  The Authority may
establish guidelines for consideration of hardship cases in which it
may waive this 5-year continuous employment requirement.
(Source: P.A. 95-449, eff. 8-27-07.)
(310 ILCS 115/15)
Sec. 15. Teacher homebuyer assistance program.
(a) Subject to appropriation, the Authority shall establish and administer a teacher homebuyer
assistance
program and allocate funds in accordance with this Act.  The purpose of
this program is to provide down payment assistance to teachers for
purchasing residences within the jurisdiction in which they are
employed.
(b) The maximum down payment assistance to a teacher under
this Act shall be determined by the median home price in the school
district where the teacher is employed, as follows:
(1) Any teacher employed in a school district with a     median home price over $300,000 is eligible for maximum down payment assistance of $20,000.
(2) Any teacher employed in a school district with a     median home price from $150,000 to $300,000, inclusive, is eligible for maximum down payment assistance of $15,000.
(3) Any teacher employed in a school district with a     median home price below $150,000 is eligible for maximum down payment assistance of $10,000.
(c) Assistance under this Act shall be in the form of a
deferred payment, low-interest subordinate mortgage loan with a term
not longer than the term of the first mortgage loan.  Interest on
this subordinate mortgage loan shall accrue at a rate of up to 5% per
annum.
(d) The borrower's obligation to repay the loan shall be evidenced
by a lien consisting of a deed of trust, subordinate in priority to
the borrower's first mortgage loan financing required to purchase the
property.  If the borrower has continuously been a teacher for the 5-year
period immediately following the date of recordation of the
subordinate mortgage loan deed of trust and there has been no
termination of employment, then repayment of the subordinate mortgage
loan shall be forgiven and considered a grant so long as the borrower
produces employment records, to the Authority's satisfaction, that the
borrower has continuously been a teacher during that 5-year period.
(e) Repayment of the principal and accrued interest is due
and payable at the earlier of the following events:
(1) sale of the residence;
(2) the borrower's failure to continuously occupy the     residence in accordance with paragraph (3) of Section 20 of this Act; or
(3) satisfaction of the first mortgage loan.
In no event shall this loan be assumable.
(f) In the event of termination of employment by the borrower
within the first 5 years following recordation of the subordinate
mortgage loan deed of trust, the borrower shall be obligated to repay
to the Authority, in addition to other amounts due on the loan, the pro
rata amount of principal and accrued interest on the loan that
directly relates to the period of time within that 5-year period
in which the borrower was not a teacher.  In order to qualify for any pro
rata forgiveness of repayment of the loan, the borrower shall produce
employment records to the Authority's satisfaction that the borrower was
a teacher for the period in which the pro rata forgiveness of loan is
sought.  If the borrower produces evidence acceptable to the Authority
that the borrower has satisfied all of the requirements specified in this
Section to qualify for forgiveness of the loan in total, the Authority must
execute any documents that may be necessary so that the borrower may
clear title.
(Source: P.A. 95-449, eff. 8-27-07.)
(310 ILCS 115/20)
Sec. 20. Qualifying for loan.   In order to qualify for a loan
under this Act,
all of the following
criteria must be met:
(1) The borrower must qualify as a teacher.
(2) The borrower's gross household income must not     exceed 125% of the area median income, as defined by the U.S. Department of Housing and Urban Development.
(3) The residence financed under this Act must be     continuously occupied by the borrower as his or her principal residence for at least 5 years following the recordation of the deed of trust securing the subordinate mortgage loan.  If the borrower fails to meet this condition, the principal and accrued interest of the loan is immediately due and payable.
(4) The residence being financed must be a     single-family residence, condominium, or manufactured home located within the boundaries of the school district that employs the borrower.
(Source: P.A. 95-449, eff. 8-27-07.)
(310 ILCS 115/25)
Sec. 25. Rules.   The State Board of Education and the
Authority may adopt any rules necessary to carry out their
responsibilities under this Act.
(Source: P.A. 95-449, eff. 8-27-07.)
(310 ILCS 115/99)
Sec. 99. Effective date. This Act takes effect upon becoming law.
(Source: P.A. 95-449, eff. 8-27-07.)