(a) As used in this section:
"Assessed value" means the market value set for real estate tax purposes, as determined by the Office of the Cook County Assessor or the Cook County Board of Tax Appeals, or its successor the Cook County Board of Review, multiplied by the level of assessment for Class 2 property as defined in the Cook County Real Property Assessment Classification Ordinance;
"Class 2 property" mean Class 2 property as defined in the Cook County Real Property Assessment Classification Ordinance and located in the City of Chicago;
"Executive director" means the Executive Director of the Chicago Tax Assistance Center within the Office of Budget and Management;
"Extension loan" has the meaning given such term in paragraph (c) herein;
"Homeowner" means an individual who: (i) is the owner of record of or has a legal or equitable interest, except for a leasehold interest, in Class 2 property that is used by the individual as the individual's principal place of residence; and (ii) is liable for paying the real estate taxes on the property. For purposes of the definition of "homeowner", an equitable interest shall include a beneficial interest in property that is held in an Illinois land trust;
"Household" means the homeowner, the spouse of the homeowner and all persons using the residence of the homeowner as their principal place of residence;
"Household income" means the combined income of the members of a household for the calendar year preceding the date that the application for the homeowner assistance program is filed with the executive director;
"Initial loan" means the first loan received by the homeowner pursuant to this section with respect to increases in the homeowner's real estate tax liability attributable to a given qualifying triennial;
"Longtime homeowner exemption program" means the program administered by the Office of the Cook County Assessor pursuant to the Cook County Longtime Homeowner Property Tax Assessment Exemption Ordinance;
"Qualifying triennial" means any triennial assessment by the Office of the Cook County Assessor, pursuant to which the assessed value of the homeowner's residence increases more than one and one-quarter times the median increase in assessed value for Class 2 property in the city; and
"Real estate taxes" means the taxes on real property for which the taxpayer is liable under the Property Tax Code, 35 ILCS 200/1-1 et seq.
(b) The executive director is authorized to establish and administer a homeowner assistance program for the purpose of providing tax relief to homeowners with limited incomes whose properties' assessed values have significantly risen, or whose properties may be lost because of a tax sale or tax lien foreclosure. Under the homeowner assistance program, a homeowner who meets the program's eligibility requirements for an initial loan shall be eligible for an initial loan from the city in an amount not to exceed the portion of the homeowner's liability for real estate taxes for his or her principal place of residence which is attributable to the amount of increase of the assessed value of the residence as a result of the most recent assessment which is more than the median increase in assessed value for Class 2 property in the city in the most recent assessment; provided that the amount of the loan offered to an eligible homeowner shall not be less than $500 nor more than $4,000. Repayment of the initial loan, plus interest at a rate to be determined by the city comptroller, but in no event to exceed six percent simple interest per year, must be made by the homeowner prior to or at the time of the sale or transfer of ownership of the residence. The rate of interest on the initial loan shall be determined by the city comptroller in order to benefit and advance the purposes of the homeowner assistance program. A homeowner shall be eligible for an initial loan under the program if he or she meets the following criteria:
(i) the assessed value of the homeowner's residence has increased as a result of the most recent assessment more than one and one-quarter times the median increase in assessed value for Class 2 property in the city in the most recent assessment, or the executive director determines that the homeowner is in imminent danger of losing his or her home as the result of a tax sale or tax lien foreclosure under the Property Tax Code;
(ii) the applicant became the homeowner prior to January 1st of the calendar year immediately preceding the qualifying triennial for such initial loan or, if there is no qualifying triennial, the applicant has owned the home for at least two years prior to the date the application is filed;
(iii) the homeowner's household income does not exceed 80 percent of the Chicago area median family income as calculated by the United States Department of Housing and Urban Development; and
(iv) the homeowner does not qualify for the longtime homeowner exemption program.
A homeowner who receives an initial loan and subsequently qualifies for the longtime homeowner exemption program is eligible for extension loans but is not eligible for additional initial loans. Prior to qualifying for the longtime homeowner exemption program, a homeowner may receive multiple initial loans provided that a homeowner may not receive more than one initial loan for any given qualifying triennial.
(c) A homeowner must file an application to participate in the program with the Chicago Tax Assistance Center within the Office of Budget and Management. The application for an initial loan shall be on a form prescribed by the executive director and shall include evidence of the homeowner's income, evidence that the applicant became the homeowner prior to January 1st of the calendar year immediately preceding the qualifying triennial for such initial loan or otherwise has owned the home for the required period of time, evidence that the homeowner does not qualify for the longtime homeowner exemption program, and, if the loan is based upon a qualifying triennial, certification from the Office of the Cook County Assessor that the assessed value of the homeowner's residence has increased as a result of the most recent assessment more than one and one-quarter times the median increase in assessed value for Class 2 property in the city in the most recent assessment. If the executive director determines that a homeowner is eligible for the program, the homeowner shall be eligible to receive an initial loan and to apply for and receive additional loans on an annual basis (each such loan, an "extension loan"), with each extension loan in an amount equal to the amount of the applicable initial loan, for as long as the homeowner applies for and receives extension loans each year without interruption. Repayment of each extension loan, plus interest at a rate to be determined by the city comptroller, but in no event to exceed six percent simple interest per year, must be made by the homeowner prior to or at the time of the sale or transfer or ownership of the residence. The rate of interest on each extension loan shall be determined by the city comptroller in order to benefit and advance the purposes of the homeowner assistance program.
(d) As a condition of any loan, the executive director may require that the homeowner agree to a lien on the title to the homeowner's residence in favor of the city.
(e) The provisions of Section 2-156-110 of this Code shall not apply to city employees with respect to their participation in the homeowner assistance program created pursuant to this section.
(f) The executive director shall have authority to expend legally available funds for the implementation of this section. However, the program created pursuant to this section shall be suspended at any time that no funds are legally available for the program. The executive director shall additionally have authority to enter into intergovernmental agreements and all other agreements and/or documents necessary to implement this section, to promulgate rules and regulations necessary to implement this section and to prescribe application forms and other forms necessary to elicit relevant information concerning participants in the homeowner assistance program.
(g) Loans received by homeowners under the program prior to the effective date of the amendatory ordinance that added to this section the terms initial loan and extension loan (such loans being referred to herein as "prior loans") shall be recharacterized as initial loans or extension loans for purposes of such homeowners' ongoing participation in the program. A prior loan shall be recharacterized as an initial loan if it was the first loan received by a homeowner with respect to increases in the homeowner's real estate tax liability attributable to a given triennial assessment by the Office of the Cook County Assessor. Prior loans that are not recharacterized as initial loans shall be recharacterized as extension loans. For homeowners with prior loans, the requirement set forth in paragraph (c) hereof that extension loans be applied for and received each year without interruption shall commence in 2002.
(Added Coun. J. 7-29-98, p. 74787; Amend Coun. J. 9-1-99, p. 10119, § 1; Amend Coun. J. 7-25-01, p. 64952, § 1; Amend Coun. J. 11-6-02, p. 95856, § 1)
Editor's note – Coun. J. 11-6-02, p. 95856, § 1, amended the Code by renumbering former § 2-44-080 as § 2-32-630; however, because that section already existed, this section has been renumbered as § 2-32-625 at the discretion of the editor.