COMPLIANCE WITH CHILD SUPPORT ORDERS

Municipal Code of Chicago tit. 5, ch. 5-24

in effect

Municipal Code of Chicago § 5-24-010 Definitions.

5-24-010 Definitions. For purposes of this section, the following words and phrases shall have the following meanings: "Applicant" means any person who is seeking to enter into a loan agreement with the city to receive city funds. "Borrower" means any person who receives city funds pursuant to a loan agreement. "Child support withholding notice" means any income withholding notice which, pursuant to the applicable governing law, directs the payor (i) to withhold a dollar amount equal to the order of child support, and/or (ii) to withhold a dollar amount equal to or towards paying off any unpaid child support obligations, and/or (iii) to enroll a child as a beneficiary of a health insurance plan and withhold or cause to be withheld any required premiums, and also includes any order issued by the Circuit Court of Cook County (or, upon the discretion of the commissioner, another Illinois court of competent jurisdiction) which similarly directs the payor. "Commissioner" means the Commissioner of Planning and Development or the Commissioner of Housing, as applicable, and their respective designees. "Court-ordered child support arrearage" means that the Circuit Court of Cook County has issued an order declaring the respondent in arrearage on his or her child support obligations in a specific amount as of the date of that order or, upon the discretion of the commissioner, may mean that another Illinois court of competent jurisdiction has issued such an order. "Substantial Owner" means any person who owns or holds a ten percent or more percentage of interest in any borrower or applicant, with ownership to be defined in accordance with the disclosure requirements for city contractors, as set forth in the provisions of Section 2-154-010, including those shareholders, partners, beneficiaries and principals more specifically described therein; except that where the bidder, potential contractor or contractor is an individual or sole proprietorship, substantial owner means that individual or sole proprietorship. (Added Coun. J. 2-7-96, p. 15393; Amend Coun. J. 7-29-98, p. 75051, § 6; Amend Coun. J. 11-19-08, p. 47220, Art. VIII, § 1; Amend Coun. J. 11-17-10, p. 106597, Art. IX, § 5; Amend Coun. J. 11-8-12, p. 38872, § 139; Amend Coun. J. 11-26-13, p. 67481, Art. I, § 17; Amend Coun. J. 11-14-18, p. 90308, Art. I, § 36)

Municipal Code of Chicago § 5-24-020 Requirement of compliance with child support orders by city borrowers.

5-24-020 Requirement of compliance with child support orders by city borrowers. (a) Every applicant shall be required to submit with its loan application an affidavit disclosing (1) any delinquencies of any of its substantial owners on a court-ordered child support arrearage and, (2) if any exist, whether the substantial owner has entered into a court-approved agreement for the payment of all child support owed and is in compliance with such agreement, and (3) whether the applicant is in compliance with any child support withholding notices naming it as the payor. (b) No loan may be given to any applicant where the affidavit discloses, or the city otherwise finds, that a substantial owner is delinquent on a court-ordered child support arrearage unless, prior to closing, the applicant provides the city with sufficient evidence of the following: (1) the substantial owner has paid to the obligee all child support then due under the court order, as evidenced by a certified court order or official clerk's records that no support is due and owing; or (2) the substantial owner has entered into a court-approved agreement for the payment of all child support owed and is in compliance with such agreement. (c) No loan may be given to any applicant where the affidavit discloses, or the city otherwise finds, that the applicant is not complying with a child support withholding notice unless, prior to closing, the applicant provides the city with evidence of compliance, by means of canceled checks paid to the obligee, official clerk's records that payments were received on behalf of the obligee, or other competent evidence. (d) Once a loan is made, every borrower must comply with all child support withholding notices that are served upon it. Failure to comply with such an order, after notice from the city of such noncompliance and a 30-day opportunity to cure, shall be an event of default. (Added Coun. J. 2-7-96, p. 15393; Amend Coun. J. 7-29-98, p. 75051, § 7; Amend Coun. J. 11-8-12, p. 38872, § 140)

Municipal Code of Chicago § 5-24-030 Commissioner's authority.

5-24-030 Commissioner's authority. The commissioner is hereby authorized to do the following: (1) investigate the child support payment records of any substantial owner to determine court-ordered child support arrearage; (2) investigate all applicants' and borrowers' compliance with child support withholding notices; (3) provide information on substantial owners, applicants and borrowers to the appropriate Cook County and State of Illinois governmental entities, to the extent allowed by law, to assist those offices in enforcement of child support obligation; (4) provide the names and business addresses of substantial owners, applicants and borrowers to persons seeking to enforce court-ordered child support arrearages and child support withholding notices and their legal representatives, to the extent allowed by law, on the condition that such information be used solely for the purpose of assisting in child support enforcement; provided that the names and identifying information of persons seeking to enforce child support orders shall be deemed confidential; (5) to promulgate regulations relating to the operation of this section; (Added Coun. J. 2-7-96, p. 15393; Amend Coun. J. 7-29-98, p. 75051, § 8)

Municipal Code of Chicago § 5-24-040 Ineligibility.

5-24-040 Ineligibility. If the commissioner determines that (i) a borrower, or a substantial owner thereof, has made a misrepresentation to the city regarding compliance with child support orders, or (ii) a borrower on more than one occasion has failed to comply with child support withholding notices, after receiving notice of noncompliance from the city, the commissioner shall notify that borrower that the borrower, and the substantial owner thereof, shall be barred from receiving any additional city loans or grants for a period of three years. The borrower shall have the opportunity to seek reconsideration of such ineligibility by submitting to the city sufficient written evidence that (1) the noncomplying substantial owner is no longer affiliated in any way with the borrower; or (2) the formerly noncomplying substantial owner no longer has any outstanding child support arrearages, as evidenced by a certified court order or official clerk's records that no support is due and owing; provided that, where the ineligibility is based on a misrepresentation, such payment in full shall not be reason to suspend ineligibility unless the commissioner also determines that such misrepresentation was inadvertent; or (3) the substantial owner was not an obligor under a court- ordered child support arrearage at the time of the alleged misrepresentation. (Added Coun. J. 2-7-96, p. 15393; Amend Coun. J. 7-29-98, p. 75051, § 9)

Municipal Code of Chicago § 5-24-050 Inapplicability.

5-24-050 Inapplicability. (a) Notwithstanding anything in Section 5-24-020 or 5-24-040 to the contrary, the commissioner shall have the authority to make a city loan, or to suspend the ineligibility of a borrower, upon making a written determination, setting forth the reasons for the decision, based upon the following grounds: (1) That the public health, safety or welfare of the city requires making the particular loan and that the city is unable to achieve comparable results from any other source; or (2) That the category of loan is a type unsuitable for application of the provisions of this section, based on (i) the emergency nature of the loan or (ii) the fact that denying such loan would cause greater harm to the public health, safety and welfare than to the borrower or substantial owner. (b) The provisions of this section shall apply only where not otherwise prohibited by federal, state or local law. (Added Coun. J. 2-7-96, p. 15393)

Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2639706Fetched: 10/24/2026