SB1680 Summary

• Amends the Home Equity Assurance Act to clarify that home improvement loans can be used for water and sewer pipe repair and flood damage repairs to guaranteed residences, in addition to other maintenance and improvement work.

• Authorizes governing commissions with at least $4,000,000 in their guarantee fund to establish a Low Interest Home Improvement Loan Program and a Foreclosure Prevention Loan Fund, each subject to voter approval by referendum.

• Limits the Low Interest Home Improvement Loan Program so cumulative loans cannot reduce the guarantee fund below $3,000,000, and caps the Foreclosure Prevention Loan Fund at $3,000,000 in total outstanding loans.

• Requires loans under both programs to be secured by collateral, limited to the equity value of the residence, and charged at below-market interest rates as determined by the commission.

• Prohibits commissioners, employees, and their family members from receiving any financial benefits from the guarantee fund, and requires annual independent audits of the guarantee fund made available to the public.