HB3193 Summary

• Amends the Home Equity Assurance Act to allow governing commissions with at least $4,000,000 in guarantee funds to establish a Low Interest Home Improvement Loan Program through either voter referendum or two-thirds commission approval (previously referendum-only).

• Expands eligible uses for home improvement loans to include repair and maintenance of water and sewer pipes and basement repairs following flood damage, while continuing to exclude demolition and new construction.

• Authorizes establishment of a Foreclosure Prevention Loan Fund (capped at $3,000,000 in total outstanding loans) to provide low-interest emergency loans to homeowners at risk of foreclosure, funded by guarantee fund reserves.

• Requires commissions to maintain at least $3,000,000 in guarantee fund balance when issuing low-interest home improvement loans and establishes collateral requirements and below-market interest rate standards for both loan programs.

• Mandates annual independent audits of guarantee funds and program management, made available to the public through commission offices or local public libraries.