Substitute Senate Bill No. 283, Public Act No. 24-66, amends the Emergency Mortgage Assistance Program, effective October 1, 2024. The bill revises definitions, such as "Aggregate family income," which now excludes dependents declared for federal tax purposes, and redefines "Financial hardship due to circumstances beyond the homeowner's control," removing the condition that the homeowner's total debt service should not exceed sixty percent of aggregate family income at the time of hardship. It also clarifies "Residential real property" to include one-to-four family owner-occupied real estate. The application process for assistance is detailed, requiring full disclosure of assets and liabilities, with the authority making eligibility determinations within thirty days. During this period, no foreclosure judgments shall be entered, and assistance payments are limited to the homeowner's principal residence.

The bill modifies the form of emergency mortgage assistance payments, eliminating the monthly payment requirement and allowing for various payment methods, with a cap equivalent to sixty months of payments. It sets a maximum monthly payment limit based on area median income and requires the authority to pay the full amount due to the mortgagee upon receipt of the homeowner's payment. The bill also adjusts the homeowner's monthly payments during the assistance period, with the total housing expense not exceeding 45% of the homeowner's income, or maintaining the pre-hardship ratio, whichever is greater. The excess of assistance over the homeowner's payments is considered a loan, potentially requiring repayment with interest. The bill outlines the review process for financial circumstances, discontinuation of assistance, and consequences of non-payment, including foreclosure. It repeals and replaces section 8-265hh, detailing repayment agreement terms, including deferral and interest accrual conditions.

Statutes affected:
Raised Bill: 8-265cc, 8-265ff, 8-265hh, 8-265ii
BA Joint Favorable Substitute: 8-265cc, 8-265ff, 8-265hh, 8-265ii
File No. 161: 8-265cc, 8-265ff, 8-265hh, 8-265ii
Public Act No. 24-66: 8-265cc, 8-265ff, 8-265hh, 8-265ii