Bill
SB 3925
The bill creates a flood rebate up to 50% of eligible flood costs (max $1,000) for Northwest Home Equity homes and funds it via a capped property tax and guarantee fund.
Title: HOME EQUITY-FLOOD REBATE
Jurisdiction: Illinois
Introduced: February 6, 2026
Sponsor: Sen. Mike Porfirio
Co-sponsors: Sen. Celina Villanueva, Sen. Javier L. Cervantes
Status: Passed Third Reading (April 16, 2026)
Effective context: Amends the Home Equity Assurance Act (65 ILCS 95/11)
Purpose and Intent
- Create a flood damage relief mechanism for homeowners within the Northwest Home Equity Assurance Program area.
- Establish a one-time per-household rebate to help offset flood-related costs for a residence subject to flood damage.
- Provide a framework for financing and administering multiple programs within the broader guaranteed home equity system, including potential loans and disaster-related rebates.
Key Provisions
1) Flood Rebate Program (d-7)
- Establishment: The governing commission may implement a one-time per-household rebate program.
- Eligibility: Members (homeowners) owning a residence that has experienced flood damage can receive rebates after submitting qualified receipts showing flood-related costs.
- Rebate details: Rebate covers up to 50% of eligible flood-related costs, with a maximum rebate of $1,000 per household.
- Duration: The rebate program lasts 3 years unless renewed or reapproved by the governing commission.
2) Guarantee Fund and Financing (Sections (a)–(e))
- Guarantee Fund Purpose: To pay program administration costs and extend program protections to members.
- Funding Source: An annual residential property tax within the program territory, applicable to properties with 1–6 residential units (as classified by county ordinance).
- Tax Rate: May be adjusted annually by the governing commission but cannot exceed 0.12% of equalized assessed value (EAV) of eligible property or the voters’ approved maximum tax rate, whichever is lower.
- Tax Administration: Tax collected similarly to county/city taxes and paid to the commission. Tax anticipation warrants may be issued for the current and following year.
3) Investment and Management (Section (c))
- Funds in the guarantee fund must be invested to align with cash flow needs of the program, with investments in obligations guaranteed by government entities or supported by their backing.
4) Uses of the Guarantee Fund (Section (d))
- Primary use: Guarantee fund finances program operations and guarantees for members, plus reasonable admin expenses.
- Minimum fund level: The program can be authorized to use funds for additional low-interest loan programs (e.g., Low Interest Home Improvement Loan Program) once the fund balance reaches at least $4,000,000, subject to voter referendum or governing commission approval with two-thirds consent.
5) Optional Loan and Related Programs (d-d, d-5, d-7, d-10)
- Low Interest Home Improvement Loan Program: May be created if authorized and funded, with criteria set by the commission; secured by collateral; below-market rates; potential application fees; loans can fund repairs and improvements to a guaranteed residence (including flood-related repairs), but not new construction or demolition.
- Foreclosure Prevention Loan Fund: May be created with similar processes and funding limits; loans are to prevent foreclosure, secured as a second lien, and below-market rate.
- Delinquent Tax Repayment Loan Fund: May be created to assist with delinquent property taxes or imminent delinquency; loans secured to the treasurer’s amount due; may require housing counseling; potential application fee.
6) Safeguards and Oversight (Section (e)–(e-1))
- Fund management: Guarantee fund must be maintained and expended solely for program purposes; no commingling with other funds.
- Conflict of interest: No commissioner or their close family members may receive financial benefit from the guarantee fund (with specified exceptions for approved salaries and expenses).
7) Accountability (Section (f))
- Independent audit: Annual audit of the guarantee fund and program management; results publicly available (e.g., at a local library or governing commission office).
Impact and Affected Parties
Affected Parties:
Potential Impacts:
Procedural and Timeline Aspects
Notes
- The bill primarily amends the Home Equity Assurance Act to add flood-relief rebates and to formalize broader loan options and governance safeguards within the guarantee fund framework.
- As introduced, the bill references an existing Northwest Home Equity Assurance Program area and governance structure, with consolidated requirements for financing and administration.
Compiled from official sources — confirm details with the bill’s official record.
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