Illinois General Assembly - Full Text of HB3863
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Full Text of HB3863  96th General Assembly

HB3863ham001 96TH GENERAL ASSEMBLY

Rep. William D. Burns

Filed: 4/1/2009

 

 


 

 


 
09600HB3863ham001 LRB096 08541 AJO 25027 a

1
AMENDMENT TO HOUSE BILL 3863

2     AMENDMENT NO. ______. Amend House Bill 3863 on page 1, line
3 5, by deleting "15-1504.5, 15-1508,"; and
 
4 on page 1, line 6, by changing "15-1504.6, and 15-1508.5" to
5 "15-1202.5 and 15-1508.5"; and
 
6 by replacing lines 8 through 21 of page 1, all of pages 2
7 through 5, and lines 1 through 11 of page 6 with the following:
 
8     "(735 ILCS 5/15-1202.5 new)
9     Sec. 15-1202.5. Dwelling Unit. "Dwelling unit" means a room
10 or suite of rooms providing complete, independent living
11 facilities for at least one person, including permanent
12 provisions for sanitation, cooking, eating, sleeping, and
13 other activities routinely associated with daily life."; and
 
14 on page 6, by replacing lines 15 through 20 with the following:

 

 

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1     "(a) The holder of the certificate of sale or deed issued
2 pursuant to that certificate or, if no certificate or deed was
3 issued, the purchaser, shall:
4         (1) following the judicial sale under Section 15-1507,
5     but not later than 14 days after the confirmation of sale
6     under Section 15-1508, make a good faith effort to
7     ascertain the identities and addresses of all occupants of
8     dwelling units of the mortgaged real estate; and
9          (2) following the order confirming sale under Section
10     15-1508, but not later than 21 days after the order
11     confirming sale, notify all known occupants of dwelling
12     units of the mortgaged real estate that he or she has
13     acquired the mortgaged real estate, including any
14     occupants identified as a result of the good faith effort
15     required under this subsection. The holder or purchaser is
16     not required to provide the notice required by this Section
17     to a mortgagor or party against whom an order of possession
18     has been entered authorizing the removal of the mortgagor
19     or party pursuant to Section 15-1508(g)."; and
 
20 on page 6, line 21, by inserting "(2)" after "(a)"; and
 
21 on page 6, by replacing lines 23 through 25 with the following:
22         "(1) identify the occupant being served by name;
23         (2) inform the occupant that the mortgaged real estate
24     is the subject of a foreclosure action and that control of

 

 

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1     the mortgaged real estate has changed;"; and
 
2 on page 7, line 1, by replacing "(2)" with "(3)"; and
 
3 on page 7, lines 2 and 3, by deleting "to whom the occupants
4 should pay rent and"; and
 
5 on page 7, by replacing lines 6 through 19 with the following:
6         "(4) include the following language, or language that
7     is substantially similar: "This is NOT a notice to vacate
8     the premises. You will receive additional notice if your
9     lease or rental agreement is being terminated. You may wish
10     to contact a lawyer or your local legal aid or housing
11     counseling agency to discuss any rights that you may
12     have."; and"; and
 
13 on page 7, line 23, by inserting "(2)" after "(a)"; and
 
14 on page 7, line 24, by inserting "known" before "occupant"; and
 
15 on page 7, line 25, by inserting "who is" after "older,"; and
 
16 on page 8, by replacing lines 1 through 13 with the following:
17 "the notice to the known occupant by first-class mail,
18 addressed to the occupant by name.
19     (d) In the event that the holder or purchaser ascertains

 

 

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1 the identity and address of an occupant of a dwelling unit of
2 the mortgaged real estate more than 14 days after the
3 confirmation of sale under Section 15-1508, the holder or
4 purchaser shall provide the notice required by subsection
5 (a)(2) within 7 days of ascertaining the identity and address
6 of the occupant.
7     (e)(i) A holder or purchaser who fails to comply with
8 subsections (a), (b), (c), and (d) may not collect any rent due
9 and owing from a known occupant, or terminate a known
10 occupant's tenancy for non-payment of such rent, until the
11 holder or purchaser has served the notice described in
12 subsection (a)(2) of this Section 15-1508.5 upon the occupant.
13 The provisions of this subsection shall be the exclusive remedy
14 for the failure of a holder or purchaser to provide notice
15 under this Section.
16     (ii) An occupant who previously paid rent for the current
17 rental period to the mortgagor, or other entity with the
18 authority to operate, manage, and conserve the mortgaged real
19 estate at the time of payment, shall not be held liable for
20 that rent by the holder or purchaser, and the occupant's
21 tenancy shall not be terminated for non-payment of rent for
22 that rental period.
23     (f) Following the confirmation of sale, a holder or
24 purchaser may request, in writing, a copy of the lease or
25 rental agreement of an occupant who has been served the notice
26 prescribed in subsection (a)(2) of this Section, or the notice

 

 

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1 prescribed in subsection (a-5)(2) of Section 15-1703. An
2 occupant who has received a request shall provide the holder or
3 purchaser with a copy of any lease or rental agreement, or make
4 such lease or rental agreement available for duplication to the
5 holder or purchaser, within 14 days of receiving the request.
6 In the event that there is no written lease or rental
7 agreement, or if the occupant cannot produce such agreement,
8 the occupant may provide a statement, verbally or in writing,
9 about the terms of his or her possession of the unit, including
10 the term of the tenancy, the amount of periodic rental
11 payments, if any, and when rent is due. An occupant shall not
12 unreasonably withhold information requested by a holder or
13 purchaser under this subsection. A holder or purchaser shall
14 include the following in a request under this subsection: (1)
15 the specific information or documentation requested; (2) a
16 mailing address, an electronic mail address if available, and a
17 telephone number for responses to the request; (3) that the
18 occupant shall respond within 14 days of receiving the request.
19 The request under this subsection shall be served in the same
20 manner described in subsection (c) of this Section, and may be
21 served concurrently with the notice required under subsection
22 (a)(2) of this Section. An occupant's failure to comply with
23 the requirements of this subsection shall create the rebuttable
24 presumption, in a proceeding under Section 15-1701(h)(1), that
25 the term of the occupant's current leasehold interest is not
26 more than 30 days.

 

 

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1     (g) Within 14 days of the confirmation of sale under
2 Section 15-1508, the holder or purchaser shall post a written
3 notice on the primary entrance of each dwelling unit subject to
4 the foreclosure action. This notice shall:
5         (1) inform the occupant that the dwelling unit is the
6     subject of a foreclosure action and that control of the
7     mortgaged real estate has changed;
8         (2) include the following language: "This is NOT a
9     notice to vacate the premises."
10         (3) provide the name, address, and telephone number of
11     the individual or entity whom occupants may contact with
12     concerns about the mortgaged real estate or to request
13     repairs of the property;
14     (h) In the event that the holder or purchaser is a
15 mortgagee in possession of the mortgaged real estate pursuant
16 to Section 15-1703 at the time of the confirmation of sale and
17 has complied with requirements of subsection (a-5) of Section
18 15-1703, the holder or purchaser is excused from the
19 requirements of subsections (a) and (g) of this Section
20 15-1508.5."; and
 
21 by replacing lines 17 through 26 of page 11 and lines 1 through
22 4 of page 12 with the following:
23 "the order confirming the sale is entered. Following the
24 confirmation of sale and until the right of possession of an
25 occupant of a dwelling unit of the mortgaged real estate has

 

 

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1 been terminated, the holder or purchaser shall: (i) maintain
2 any essential utility services that had been the obligation of
3 the mortgagor, receiver, or mortgagee in possession prior to
4 the order confirming sale; (ii) maintain the mortgaged real
5 estate in the same physical condition as had been the
6 obligation of the mortgagor, receiver, or mortgagee in
7 possession prior to the confirmation of sale; and (iii)
8 maintain the mortgaged real estate in compliance with the
9 requirements of State and local law. Nothing in this subsection
10 shall prohibit the holder or purchaser and an occupant from
11 entering into a new lease agreement that changes their
12 respective utility obligations."; and
 
13 on page 14, by replacing lines 11 through 17 with the
14 following:
15         "(4) In a case of foreclosure where the occupant tenant
16     is current on his or her rent, or where timely written
17     notice of to whom and where the rent is to be paid has not
18     been provided to the occupant tenant, or where the occupant
19     tenant has made good-faith efforts to make rental payments
20     in order to keep current, any order of possession must
21     allow the occupant tenant to retain possession of"; and
 
22 by replacing lines 21 through 26 of page 14 and line 1 of page
23 15 with the following:
24         "the occupant, or through the duration of his or her

 

 

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1     lease, whichever is shorter, but in no event less than 30
2     days after entry of the order of possession. A mortgagee in
3     possession, receiver, or holder of a certificate of sale or
4     deed, or purchaser at the judicial sale who asserts that
5     the occupant is not current in rent at the time the
6     supplemental petition is filed shall attach an affidavit to
7     that effect to the supplemental petition. If the occupant
8     the tenant, or (ii) through the duration of his or her
9     lease, whichever is shorter. If the tenant has been given
10     timely written notice of to whom and where the rent is to
11     be paid, this item (4) shall only apply if the occupant
12     tenant continues to pay his or her rent in full during the
13     120-day period or has made good-faith efforts to pay the
14     rent in full during that period. No
15     mortgagee-in-possession,"; and
 
16 by replacing lines 8 through 26 of page 15 and lines 1 and 2 of
17 page 16 with the following:
18 "has been properly served upon the occupant tenant."; and
 
19 by replacing lines 10 through 26 of page 17 and line 1 of page
20 18 with the following:
21         "(1) Within 14 days of taking possession of the
22     mortgaged real estate, the mortgagee in possession shall
23     make a good faith effort to ascertain the identities and
24     addresses of all occupants of dwelling units of the

 

 

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1     mortgaged real estate.
2         (2) Within 21 days of taking possession of the
3     mortgaged real estate, the mortgagee in possession shall
4     notify all known occupants of dwelling units of the
5     mortgaged real estate, including any occupants identified
6     as a result of the good faith effort required under this
7     subsection, that he or she has taken possession of the
8     mortgaged real estate. The notice shall be in writing and
9     shall:
10             (i) identify the occupant being served by name;
11             (ii) inform the occupant that the mortgaged real
12         estate is the subject of a foreclosure action and that
13         control of the mortgaged real estate has changed;
14             (iii) provide the name, address, and telephone
15         number of the individual or entity whom occupants may
16         contact with concerns about the mortgaged real estate
17         or to request repairs of that property;
18             (iv) include the following language, or language
19         that is substantially similar:
20             "This is NOT a notice to vacate the premises. You
21         will receive additional notice if your lease or rental
22         agreement is being terminated. You may wish to contact
23         a lawyer or your local legal aid or housing counseling
24         agency to discuss any rights that you may have.""; and
 
25 on page 18, line 2, by replacing "(iv)" with "(v)"; and
 

 

 

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1 on page 18, line 4, by replacing "(2)" with "(3)"; and
 
2 on page 18, line 4, by replacing "item (1)" with "item (2)";
3 and
 
4 on page 18, line 6, by inserting "known" before "occupant"; and
 
5 on page 18, line 7, by inserting "who is" after "older,"; and
 
6 on page 18, by replacing lines 9 through 23 with the following:
7     "notice to the known occupant by first-class mail,
8     addressed to the occupant by name.
9         (4) In the event that a mortgagee in possession
10     ascertains the identity and address of an occupant of a
11     dwelling unit of the mortgaged real estate more than 14
12     days after taking possession of the mortgaged real estate,
13     the mortgagee in possession shall provide the notice
14     required by subsection (a-5)(2) within 7 days of
15     ascertaining the identity and address of the occupant.
16         (5)(i) A mortgagee in possession who fails to comply
17     with items (2), (3), and (4) of this subsection (a-5) may
18     not collect any rent due and owing from a known occupant,
19     or terminate a known occupant's tenancy for non-payment of
20     such rent, until the mortgagee in possession has served the
21     notice described in item (2) of this subsection (a-5) upon

 

 

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1     the occupant. The provisions of this subsection shall be
2     the exclusive remedy for the failure of a mortgagee in
3     possession to provide notice under this Section.
4         (ii) An occupant who previously paid rent for the
5     current rental period to the mortgagor, or other entity
6     with the authority to operate, manage, and conserve the
7     mortgaged real estate at the time of payment, shall not be
8     held liable for that rent by the mortgagee in possession,
9     and the occupant's tenancy shall not be terminated for
10     non-payment of rent for that rental period.
11         (6) Within 14 days of the order allowing the mortgagee
12     to take possession of the mortgaged real estate, the
13     mortgagee in possession shall post a written notice on the
14     primary entrance of each dwelling unit subject to the
15     foreclosure action that informs the occupants that the
16     mortgagee in possession is now operating and managing the
17     mortgaged real estate. This written notice shall: (i)
18     inform the occupant that the dwelling unit is the subject
19     of a foreclosure action and that control of the mortgaged
20     real estate has changed; (ii) include the following
21     language: "This is NOT a notice to vacate the premises";
22     and (iii) provide the name, address, and telephone number
23     of the individual or entity whom occupants may contact with
24     concerns about the mortgaged real estate or to request
25     repairs of the property."; and
 

 

 

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1 on page 21, by replacing lines 10 through 13 with the
2 following:
3          "(3) shall: (i) maintain any essential utility
4     services that had been the obligation of the mortgagor
5     prior to an order appointing a receiver or allowing the
6     mortgagee to take possession of the mortgaged real estate;
7     (ii) maintain the mortgaged real estate in the same
8     physical condition as had been the obligation of the
9     mortgagor prior to an order appointing a receiver or
10     allowing the mortgagee to take possession of the mortgaged
11     real estate; and (iii) maintain the mortgaged real estate
12     in compliance with the requirements of State and local
13     law;"; and
 
14 by replacing lines 14 through 26 of page 23 and lines 1 through
15 3 of page 24 with the following:
16         "(1) Within 14 days of appointment, the receiver shall
17     make a good faith effort to ascertain the identities and
18     addresses of the mortgaged real estate.
19         (2) Within 21 days of appointment, the receiver shall
20     notify all occupants of dwelling units of the mortgaged
21     real estate that he or she has been appointed receiver of
22     the mortgaged real estate, including any occupants
23     identified as a result of the good faith effort under this
24     subsection. Such notice shall be in writing and shall:
25             (i) identify the occupant being served by name;

 

 

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1             (ii) inform the occupant that the mortgaged real
2         estate is the subject of a foreclosure action and that
3         control of the mortgaged real estate has changed;
4             (iii) provide the name, address, and telephone
5         number of the individual or entity whom occupants may
6         contact with concerns about the mortgaged real estate
7         or to request repairs of that property;
8             (iv) include the following language, or language
9         that is substantially similar:
10             "This is NOT a notice to vacate the premises. You
11         will receive additional notice if your lease or rental
12         agreement is being terminated. You may wish to contact
13         a lawyer or your local legal aid or housing counseling
14         agency to discuss any rights that you may have.""; and
 
15 on page 24, line 4, by replacing "(iv)" with "(v)"; and
 
16 on page 24, line 6, by replacing "(2)" with "(3)"; and
 
17 on page 24, line 6, by replacing "item (1)" with "item (2)";
18 and
 
19 on page 24, line 8, by inserting "known" before "occupant"; and
 
20 on page 24, by replacing lines 12 through 25 with the
21 following:

 

 

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1     "known occupant by first-class mail, addressed to the
2     occupant by name.
3         (4) In the event that a receiver ascertains the
4     identity and address of an occupant of a dwelling unit of
5     the mortgaged real estate more than 14 days after
6     appointment, the receiver shall provide the notice
7     required by part (2) of this subsection (f) within 7 days
8     of ascertaining the identity and address of the occupant.
9         (5)(i) A receiver who fails to comply with items (2),
10     (3), and (4) of this subsection (f) may not collect any
11     rent due and owing from a known occupant, or terminate a
12     known occupant's tenancy for non-payment of such rent,
13     until the receiver has served the notice described in item
14     (2) of this subsection (f) upon the occupant. The
15     provisions of this subsection shall be the exclusive remedy
16     for the failure of a receiver to provide notice under this
17     Section.
18         (ii) An occupant who previously paid rent for the
19     current rental period to the mortgagor, or other entity
20     with the authority to operate, manage, and conserve the
21     mortgaged real estate at the time of payment, shall not be
22     held liable for that rent by the receiver, and the
23     occupant's tenancy shall not be terminated for non-payment
24     of rent for that rental period.
25         (6) Within 14 days of appointment, the receiver shall
26     post a written notice on the primary entrance of all

 

 

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1     dwelling units subject to the foreclosure action that
2     informs occupants that the receiver has been appointed to
3     operate and manage the property. This written notice shall:
4     (i) inform the occupant that the dwelling unit is the
5     subject of a foreclosure action and that control of the
6     mortgaged real estate has changed; (ii) include the
7     following language: "This is NOT a notice to vacate the
8     premises"; and (iii) provide the name, address, and
9     telephone number of the individual or entity whom occupants
10     may contact with concerns about the mortgaged real estate
11     or to request repairs of the property."; and
 
12 on page 25, line 1, by deleting "or mortgagee in possession";
13 and
 
14 on page 25, line 5, by deleting "or mortgagee in possession";
15 and
 
16 on page 25, line 6, by inserting after "leave of court" the
17 following:
18 "or an agreement with the occupant about the increased rent";
19 and
 
20 on page 25, line 7, by deleting "or mortgagee in possession";
21 and
 

 

 

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1 by replacing line 26 of page 25 and line 1 of page 26 with the
2 following:
 
3     "Section 98. In a foreclosure action filed on or before the
4 effective date of this Act, a holder or purchaser, receiver, or
5 mortgagee in possession required to serve notice or otherwise
6 comply with Section 15-1508.5, Section 15-1703(a-5), and
7 Section 15-1704(f) shall have an additional 60 days to comply
8 with the provisions of this Act.
 
9     Section 99. Effective date. This Act takes effect 90 days
10 after becoming law.".