Illinois Compiled Statutes
Chapter 765 - PROPERTY
765 ILCS 925/ - Notice of Prepayment of Federally Subsidized Mortgage Act.

(765 ILCS 925/1) (from Ch. 67 1/2, par. 901)
Sec. 1.

This Act shall be known and may be cited as the Notice of Prepayment of Federally Subsidized Mortgage Act.

(Source: P.A. 85-1438.)
 
(765 ILCS 925/2) (from Ch. 67 1/2, par. 902)
Sec. 2.

It is the purpose of this Act to preserve and retain to the
maximum extent practicable, as housing affordable to low and moderate income
families or persons, those privately owned dwelling units that were provided
for such purposes with federal assistance, to minimize the involuntary
displacement of tenants currently residing in such housing, to ensure that
the appropriate governmental authorities are given adequate notice to respond
to the potential problems created by conversions of subsidized rental units
to nonsubsidized rental units and to ensure that the subsidized rental unit
occupants are provided with information and assistance, in the event of conversions.

(Source: P.A. 85-1438.)
 
(765 ILCS 925/3) (from Ch. 67 1/2, par. 903)
Sec. 3.
As used in this Act:
(a) "IHDA" means the Illinois Housing
Development Authority.
(b) "FmHA" means the Farmers Home Administration or a local housing authority
administering an FmHA program.
(c) "HUD" means
the United States Department of Housing and Urban Development, or
the Federal Housing Administration or a local housing authority
administering a HUD program.
(d) "Owner" means the person, partnership, or corporation that is a party
to a contract with HUD or FmHA providing for a mortgage, mortgage assistance,
mortgage insurance, or rent subsidy; or any spouse, employee, agent, partner,
master lessee, business affiliate or associate, or successor in interest
of such person, partnership or corporation, that receives or demands rent
for the subsidized housing.
(e) "Prepayment of mortgage" means the prepayment of a mortgage, or loan
prior to maturity, that is:
(1) insured or held by HUD under Section 221(d)(3) of the National Housing
Act and assisted under Section 101 of the Housing and Urban Development
Act of 1965 or Section 8 of the United States Housing Act of 1937;
(2) insured or held by HUD and bears interest at a rate determined under
the proviso of Section 221(d)(3) of the National Housing Act;
(3) insured, assisted or held by HUD under Section 236 of the National Housing Act;
(4) insured or held by HUD under Section 514 or 515 of the Housing Act of 1949; or
(5) held by HUD and formerly insured under a program listed in this subsection (e).
(f) "Section 8 contract" means a contract with HUD or FmHA which provides
rent subsidies entered into pursuant to Section 8 of the United States Housing
Act of 1937 or the Section 8 Existing Housing Program (24 C.F.R. Part 882).
(g) "Subsidized housing" means any housing or unit of housing financed
by a loan or mortgage insured or held by HUD under a program listed in subsection
(e) of this Section, or subject to a Section 8 contract.
(h) "Unit of local government" means (1) the municipality within which
subsidized housing is located, or (2) if subsidized housing is not located
within the boundaries of any municipality, the county
in which the subsidized housing is located.

(Source: P.A. 85-1438.)
 
(765 ILCS 925/4) (from Ch. 67 1/2, par. 904)
Sec. 4.
(a) An owner of subsidized housing shall provide to the clerk
of the unit of local government and to IHDA notice of the earliest date upon
which he may exercise prepayment of mortgage. Such notice shall be delivered
at least 12 months prior to the date upon which the owner may prepay the mortgage.
The notice shall include the following information:
Such notice shall be available
to the public upon request.
(b) Twelve months prior to the date upon which an owner may exercise prepayment
of mortgage, the owner shall:
The owner shall provide a copy of the notice to all prospective tenants.
Such notices shall be on forms prescribed by IHDA.

(Source: P.A. 99-143, eff. 7-27-15.)
 
(765 ILCS 925/5) (from Ch. 67 1/2, par. 905)
Sec. 5.

An owner of subsidized housing shall provide to the clerk
of the unit of local government and IHDA notice of his intent to exercise
his prepayment of mortgage option at least 9 months prior to the date
of the intended prepayment of mortgage.
At least 9 months prior to the intended date of the prepayment of mortgage,
the owner shall post in a prominent location in the affected building and
shall deliver, either personally or by certified mail, a notice to all tenants
residing in the building. Such notice shall be provided in writing to all
prospective tenants during the notice period.
The notice to the unit of local government and IHDA and the notice to the
tenants shall be provided on forms prescribed by IHDA. These notices shall
be considered in effect for 15 months from the date received by the unit
of local government and IHDA. If prepayment does not occur within the 15
month period, a new 9 month notice will be required prior to prepayment of mortgage.

(Source: P.A. 85-1438.)
 
(765 ILCS 925/6) (from Ch. 67 1/2, par. 906)
Sec. 6.

Before executing any lease agreement, an owner of a building
receiving a Section 8 contract, of which IHDA is not the contract administrator, shall
notify all prospective tenants in writing
of the date of the expiration of the Section 8 contract. An
owner shall notify current tenants of the date of expiration of a Section
8 contract within 60 days of the effective date of this Act.

(Source: P.A. 85-1438.)
 
(765 ILCS 925/7) (from Ch. 67 1/2, par. 907)
Sec. 7.

An owner who fails to provide the notice to a tenant as required
under Sections 5 and 6 of this Act shall pay a penalty to the tenant
in the amount of
$1,000. An owner who fails to provide the notice to a unit of local government
as required under Section 5 of this Act shall pay a penalty to the unit of
local government
in the amount of $25,000.

(Source: P.A. 85-1438.)
 
(765 ILCS 925/8) (from Ch. 67 1/2, par. 908)
Sec. 8.

Owners of subsidized housing eligible for prepayment of mortgage
after the effective date of this Act but before July 1, 1990 shall give
notice as provided in Section 4 within 60 days after the effective date of this Act.

(Source: P.A. 85-1438.)

Structure Illinois Compiled Statutes