HB 188 -- Guaranteed Home Equity Program

Sponsor:  Stokan

The main provisions of this bill address the establishment of
the guaranteed home equity program in the City of St. Louis, St.
Louis County, and municipalities in St. Louis County with a
population more than 500 and less than 300,000 inhabitants.  The
program is funded by a guaranteed fund which is financed by a
property tax levy authorized at a rate not to exceed .15% on all
real property (including condominiums) within a program area.

The bill also:

(1)  Authorizes St. Louis, St. Louis County and municipalities
within St. Louis County with more than 500 but less than 300,000
inhabitants to submit the question of creating a home equity
program to the voters;

(2)  Establishes a 9 member commission, appointed by the
governing body of St. Louis, St. Louis County, or a municipality
located within St. Louis County, which will administer the home
equity program and specifies the duties and functions of the
commission. An advisory board may also be appointed by a mayor
of a municipality within St. Louis County;

(3)  Provides procedures for merging two existing and contiguous
home equity programs which will not prohibit the joint
administration of programs or contractual arrangements to
administer separate programs;

(4)  Establishes membership qualifications and application
procedures for the guaranteed home equity program.  Members must
own a qualified residence within the program area and
continuously occupy the residence or have a family member occupy
the residence to qualify.  An application and registration fee
are required.  Upon receipt of the application and fee, the
residence is appraised to determine its guaranteed value.  If
approved, a certificate of participation is issued;

(5)  Provides payment benefits for members of the program.  A
member is guaranteed 100% of the difference between the
guaranteed value and the gross selling value if the guaranteed
value is greater.  The payment applies to sales 3 or more years
after the date of certification.  To be eligible to receive a
payment, a member must file a notice of intent to sell with the
commission and must offer the residence for sale and provide
other sales documentation as established under program
guidelines;

(6)  Explains other guidelines for the administration of the
governing commission and the program.  Guidelines for a lack of
sufficient funds in the guaranteed fund, withdrawal of a member
from the program, the liability of commission members, auditing
of the guaranteed fund and program, and the termination of the
guaranteed home equity program are addressed.

Any violation of the provisions of this bill is a class A
misdemeanor and subject to a fine as provided by law.