Full Text of HB6478 96th General Assembly
HB6478ham001 96TH GENERAL ASSEMBLY
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Rep. André M. Thapedi
Filed: 3/26/2010
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| AMENDMENT TO HOUSE BILL 6478
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| AMENDMENT NO. ______. Amend House Bill 6478 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 1. Short title. This amendatory Act may be | 5 |
| referred to as the Vacant Property Maintenance Law. | 6 |
| Section 5. Findings. The General Assembly finds that | 7 |
| additional action is needed to help prevent foreclosures and | 8 |
| revitalize the economy in the State of Illinois. Foreclosures | 9 |
| are leaving families homeless or in dire financial straits. | 10 |
| They are contributing to the number of vacant and abandoned | 11 |
| properties that threaten communities around the State because | 12 |
| those properties diminish property values, enable crime, and | 13 |
| create health hazards. Municipalities lack many of the tools | 14 |
| necessary to ensure adequate property maintenance of vacant | 15 |
| property. Municipalities are unable to recover the reasonable | 16 |
| costs of their property maintenance activity. |
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| Section 10. The Illinois Municipal Code is amended by | 2 |
| changing Sections 11-20-15 and 11-20-15.1 and by adding Section | 3 |
| 11-20-17 as follows: | 4 |
| (65 ILCS 5/11-20-15) | 5 |
| Sec. 11-20-15. Lien for removal costs. | 6 |
| (a) If the municipality incurs a removal cost under Section | 7 |
| 11-20-7, 11-20-8, 11-20-12, or 11-20-13 , or 11-20-17 with | 8 |
| respect to any underlying parcel, then that cost is a lien upon | 9 |
| that underlying parcel. This lien is superior to all other | 10 |
| liens and encumbrances, except tax liens and as otherwise | 11 |
| provided in subsection (c)
of this Section. | 12 |
| (b) To perfect a lien under this Section, the municipality | 13 |
| must, within one year after the removal cost is incurred, file | 14 |
| notice of lien in the office of the recorder in the county in | 15 |
| which the underlying parcel is located or, if the underlying | 16 |
| parcel is registered under the Torrens system, in the office of | 17 |
| the Registrar of Titles of that county. The notice must consist | 18 |
| of a sworn statement setting out: | 19 |
| (1) a description of the underlying parcel that | 20 |
| sufficiently identifies the parcel; | 21 |
| (2) the amount of the removal cost; and | 22 |
| (3) the date or dates when the removal cost was | 23 |
| incurred by the municipality. | 24 |
| If, for any one parcel, the municipality engaged in any |
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| removal activity on more than one occasion during the course of | 2 |
| one year, then the municipality may combine any or all of the | 3 |
| costs of each of those activities into a single notice of lien. | 4 |
| (c) A lien under this Section is not valid as to: (i) any | 5 |
| purchaser whose rights in and to the underlying parcel arose | 6 |
| after the removal activity but before the filing of the notice | 7 |
| of lien; or (ii) any mortgagee, judgment creditor, or other | 8 |
| lienor whose rights in and to the underlying parcel arose | 9 |
| before the filing of the notice of lien. | 10 |
| (d) The removal cost is not a lien on the underlying parcel | 11 |
| unless a notice is personally served on, or sent by certified | 12 |
| mail to, the person to whom was sent the tax bill for the | 13 |
| general taxes on the property for the taxable year immediately | 14 |
| preceding the removal activities. The notice must be delivered | 15 |
| or sent after the removal activities have been performed, and | 16 |
| it must: (i) state the substance of this Section and the | 17 |
| substance of any ordinance of the municipality implementing | 18 |
| this Section; (ii) identify the underlying parcel, by common | 19 |
| description; and (iii) describe the removal activity. | 20 |
| (e) A lien under this Section may be enforced by | 21 |
| proceedings to foreclose as in case of mortgages or mechanics' | 22 |
| liens. An action to foreclose a lien under this Section must be | 23 |
| commenced within 2 years after the date of filing notice of | 24 |
| lien. | 25 |
| (f) Any person who performs a removal activity by the | 26 |
| authority of the municipality may, in his or her own name, file |
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| a lien and foreclose on that lien in the same manner as a | 2 |
| municipality under this Section. | 3 |
| (g) A failure to file a foreclosure action does not, in any | 4 |
| way, affect the validity of the lien against the underlying | 5 |
| parcel. | 6 |
| (h) Upon payment of the lien cost by the owner of the | 7 |
| underlying parcel after notice of lien has been filed, the | 8 |
| municipality (or its agent under subsection (f)) shall release | 9 |
| the lien, and the release may be filed of record by the owner | 10 |
| at his or her sole expense as in the case of filing notice of | 11 |
| lien. | 12 |
| (i) For the purposes of this Section: | 13 |
| "Lien cost" means the removal cost and the filing costs for | 14 |
| any notice of lien under subsection (b). | 15 |
| "Removal activity" means any activity for which a removal | 16 |
| cost was incurred. | 17 |
| "Removal cost" means a removal cost as defined under | 18 |
| Section 11-20-7, 11-20-8, 11-20-12, or 11-20-13. | 19 |
| "Underlying parcel" means a parcel of private property upon | 20 |
| which a removal activity was performed. | 21 |
| "Year" means a 365-day period. | 22 |
| (j) This Section applies only to liens filed after August | 23 |
| 14, 2009 (the effective date of Public Act 96-462). | 24 |
| (k) This Section shall not apply to a lien filed pursuant | 25 |
| to Section 11-20-15.1. | 26 |
| (Source: P.A. 96-462, eff. 8-14-09; 96-856, eff. 3-1-10.) |
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| (65 ILCS 5/11-20-15.1) | 2 |
| Sec. 11-20-15.1. Lien for costs of removal, securing, and | 3 |
| enclosing on abandoned residential property. | 4 |
| (a) If the municipality elects to incur a removal cost | 5 |
| pursuant to subsection (d) of Section 11-20-7, subsection (d) | 6 |
| of Section 11-20-8, subsection (d) of Section 11-20-12, or | 7 |
| subsection (e) of Section 11-20-13, or subsection (j) of | 8 |
| Section 11-20-17 or a securing or enclosing cost pursuant to | 9 |
| Section 11-31-1.01 with respect to an abandoned residential | 10 |
| property, then that cost is a lien upon the underlying parcel | 11 |
| of that abandoned residential property. This lien is superior | 12 |
| to all other liens and encumbrances, except tax liens and as | 13 |
| otherwise provided in this Section. | 14 |
| (b) To perfect a lien under this Section, the municipality | 15 |
| must, within one year after the cost is incurred for the | 16 |
| activity, file notice of the lien in the office of the recorder | 17 |
| in the county in which the abandoned residential property is | 18 |
| located or, if the abandoned residential property is registered | 19 |
| under the Torrens system, in the office of the Registrar of | 20 |
| Titles of that county, a sworn statement setting out: | 21 |
| (1) a description of the abandoned residential | 22 |
| property that sufficiently identifies the parcel; | 23 |
| (2) the amount of the cost of the activity; | 24 |
| (3) the date or dates when the cost for the activity | 25 |
| was incurred by the municipality; and |
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| (4) a statement that the lien has been filed pursuant | 2 |
| to subsection (d) of Section 11-20-7, subsection (d) of | 3 |
| Section 11-20-8, subsection (d) of Section 11-20-12, | 4 |
| subsection (e) of Section 11-20-13, subsection (j) of | 5 |
| Section 11-20-17, or Section 11-31-1.01, as applicable. | 6 |
| If, for any abandoned residential property, the | 7 |
| municipality engaged in any activity on more than one occasion | 8 |
| during the course of one year, then the municipality may | 9 |
| combine any or all of the costs of each of those activities | 10 |
| into a single notice of lien. | 11 |
| (c) To enforce a lien pursuant to this Section, the | 12 |
| municipality must maintain contemporaneous records that | 13 |
| include, at a minimum: (i) a dated statement of finding by the | 14 |
| municipality that the property for which the work is to be | 15 |
| performed has become abandoned residential property, which | 16 |
| shall include (1) the date when the property was first known or | 17 |
| observed to be unoccupied by any lawful occupant or occupants, | 18 |
| (2) a description of the actions taken by the municipality to | 19 |
| contact the legal owner or owners of the property identified on | 20 |
| the recorded mortgage, or, if known, any agent of the owner or | 21 |
| owners, including the dates such actions were taken, and (3) a | 22 |
| statement that no contacts were made with the legal owner or | 23 |
| owners or their agents as a result of such actions, (ii) a | 24 |
| dated certification by an authorized official of the | 25 |
| municipality of the necessity and specific nature of the work | 26 |
| to be performed, (iii) a copy of the agreement with the person |
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| or entity performing the work that includes the legal name of | 2 |
| the person or entity, the rate or rates to be charged for | 3 |
| performing the work, and an estimate of the total cost of the | 4 |
| work to be performed, (iv) detailed invoices and payment | 5 |
| vouchers for all payments made by the municipality for such | 6 |
| work, and (v) a statement as to whether the work was engaged | 7 |
| through a competitive bidding process, and if so, a copy of all | 8 |
| proposals submitted by the bidders for such work. | 9 |
| (d) A lien under this Section shall be enforceable | 10 |
| exclusively at the hearing for confirmation of sale of the | 11 |
| abandoned residential property that is held pursuant to | 12 |
| subsection (b) of Section 15-1508 of the Code of Civil | 13 |
| Procedure and shall be limited to a claim of interest in the | 14 |
| proceeds of the sale and subject to the requirements of this | 15 |
| Section. Any mortgagee who holds a mortgage on the property, or | 16 |
| any beneficiary or trustee who holds a deed of trust on the | 17 |
| property, may contest the lien or the amount of the lien at any | 18 |
| time during the foreclosure proceeding upon motion and notice | 19 |
| in accordance with court rules applicable to motions generally. | 20 |
| Grounds for forfeiture of the lien or the superior status of | 21 |
| the lien granted by subsection (a) of this Section shall | 22 |
| include, but not be limited to, a finding by the court that: | 23 |
| (i) the municipality has not complied with subsection (b) or | 24 |
| (c) of this Section, (ii) the scope of the work was not | 25 |
| reasonable under the circumstances, (iii) the work exceeded the | 26 |
| authorization for the work to be performed under subsection (a) |
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| of Section 11-20-7, subsection (a) of Section 11-20-8, | 2 |
| subsection (a) of Section 11-20-12, subsection (a) of Section | 3 |
| 11-20-13, or subsection (a) of Section 11-31-1.01, as | 4 |
| applicable, or (iv) the cost of the services rendered or | 5 |
| materials provided was not commercially reasonable. Forfeiture | 6 |
| of the superior status of the lien otherwise granted by this | 7 |
| Section shall not constitute a forfeiture of the lien as a | 8 |
| subordinate lien. | 9 |
| (e) Upon payment of the amount of a lien filed under this | 10 |
| Section by the mortgagee, servicer, owner, or any other person, | 11 |
| the municipality shall release the lien, and the release may be | 12 |
| filed of record by the person making such payment at the | 13 |
| person's sole expense as in the case of filing notice of lien. | 14 |
| (f) Notwithstanding any other provision of this Section, a | 15 |
| municipality may not file a lien pursuant to this Section for | 16 |
| activities performed pursuant to Section 11-20-7, Section | 17 |
| 11-20-8, Section 11-20-12, Section 11-20-13, or Section | 18 |
| 11-31-1.01, if: (i) the mortgagee or servicer of the abandoned | 19 |
| residential property has provided notice to the municipality | 20 |
| that the mortgagee or servicer has performed or will perform | 21 |
| the remedial actions specified in the notice that the | 22 |
| municipality otherwise might perform pursuant to subsection | 23 |
| (d) of Section 11-20-7, subsection (d) of Section 11-20-8, | 24 |
| subsection (d) of Section 11-20-12, subsection (e) of Section | 25 |
| 11-20-13, or Section 11-31-1.01, provided that the remedial | 26 |
| actions specified in the notice have been performed or are |
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| performed or initiated in good faith within 30 days of such | 2 |
| notice; or (ii) the municipality has provided notice to the | 3 |
| mortgagee or servicer of a problem with the property requiring | 4 |
| the remedial actions specified in the notice that the | 5 |
| municipality otherwise would perform pursuant to subsection | 6 |
| (d) of Section 11-20-7, subsection (d) of Section 11-20-8, | 7 |
| subsection (d) of Section 11-20-12, subsection (e) of Section | 8 |
| 11-20-13, or Section 11-31-1.01, and the mortgagee or servicer | 9 |
| has performed or performs or initiates in good faith the | 10 |
| remedial actions specified in the notice within 30 days of such | 11 |
| notice. | 12 |
| (g) This Section and subsection (d) of Section 11-20-7, | 13 |
| subsection (d) of Section 11-20-8, subsection (d) of Section | 14 |
| 11-20-12, subsection (e) of Section 11-20-13, subsection (j) of | 15 |
| Section 11-20-17, or Section 11-31-1.01 shall apply only to | 16 |
| activities performed, costs incurred, and liens filed after | 17 |
| March 1, 2010 ( the effective date of Public this amendatory Act | 18 |
| 96-856) of the 96th General Assembly . Subsection (j) of Section | 19 |
| 11-20-17 shall apply only to activities performed, costs | 20 |
| incurred, and liens filed after the effective date of this | 21 |
| amendatory Act of the 96th General Assembly. | 22 |
| (h) For the purposes of this Section and subsection (d) of | 23 |
| Section 11-20-7, subsection (d) of Section 11-20-8, subsection | 24 |
| (d) of Section 11-20-12, subsection (e) of Section 11-20-13, | 25 |
| subsection (j) of Section 11-20-17, or Section 11-31-1.01: | 26 |
| "Abandoned residential property" means any type of |
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| permanent residential dwelling unit, including detached single | 2 |
| family structures, and townhouses, condominium units and | 3 |
| multifamily rental apartments covering the entire property, | 4 |
| and manufactured homes treated under Illinois law as real | 5 |
| estate and not as personal property, that has been unoccupied | 6 |
| by any lawful occupant or occupants for at least 90 days, and | 7 |
| for which after such 90 day period, the municipality has made | 8 |
| good faith efforts to contact the legal owner or owners of the | 9 |
| property identified on the recorded mortgage, or, if known, any | 10 |
| agent of the owner or owners, and no contact has been made. A | 11 |
| property for which the municipality has been given notice of | 12 |
| the order of confirmation of sale pursuant to subsection (b-10) | 13 |
| of Section 15-1508 of the Code of Civil Procedure shall not be | 14 |
| deemed to be an abandoned residential property for the purposes | 15 |
| of subsection (d) of Section 11-20-7, subsection (d) of Section | 16 |
| 11-20-8, subsection (d) of Section 11-20-12, subsection (e) of | 17 |
| Section 11-20-13, subsection (j) of Section 11-20-17, and | 18 |
| Section 11-31-1.01 of this Code. | 19 |
| "MERS program" means the nationwide Mortgage Electronic | 20 |
| Registration System approved by Fannie Mae, Freddie Mac, and | 21 |
| Ginnie Mae that has been created by the mortgage banking | 22 |
| industry with the mission of registering every mortgage loan in | 23 |
| the United States to lawfully make information concerning each | 24 |
| residential mortgage loan and the property securing it | 25 |
| available by Internet access to mortgage originators, | 26 |
| servicers, warehouse lenders, wholesale lenders, retail |
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| lenders, document custodians, settlement agents, title | 2 |
| companies, insurers, investors, county recorders, units of | 3 |
| local government, and consumers. | 4 |
| (i) Any entity or person who performs a removal, securing, | 5 |
| or enclosing activity pursuant to the authority of a | 6 |
| municipality under subsection (d) of Section 11-20-7, | 7 |
| subsection (d) of Section 11-20-8, subsection (d) of Section | 8 |
| 11-20-12, subsection (e) of Section 11-20-13, subsection (j) of | 9 |
| Section 11-20-17, or Section 11-31-1.01, may, in its, his, or | 10 |
| her own name, file a lien pursuant to subsection (b) of this | 11 |
| Section and appear in a foreclosure action on that lien | 12 |
| pursuant to subsection (d) of this Section in the place of the | 13 |
| municipality, provided that the municipality shall remain | 14 |
| subject to subsection (c) of this Section, and such party shall | 15 |
| be subject to all of the provisions in this Section as if such | 16 |
| party were the municipality. | 17 |
| (j) If prior to subsection (d) of Section 11-20-7, | 18 |
| subsection (d) of Section 11-20-8, subsection (d) of Section | 19 |
| 11-20-12, and subsection (e) of Section 11-20-13 , and | 20 |
| subsection (j) of Section 11-20-17 becoming inoperative a lien | 21 |
| is filed pursuant to any of those subsections, then the lien | 22 |
| shall remain in full force and effect after the subsections | 23 |
| have become inoperative, subject to all of the provisions of | 24 |
| this Section. If prior to the repeal of Section 11-31-1.01 a | 25 |
| lien is filed pursuant to Section 11-31-1.01, then the lien | 26 |
| shall remain in full force and effect after the repeal of |
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| Section 11-31-1.01, subject to all of the provisions of this | 2 |
| Section. | 3 |
| (Source: P.A. 96-856, eff. 3-1-10.) | 4 |
| (65 ILCS 5/11-20-17 new) | 5 |
| Sec. 11-20-17. Vacant and abandoned property. | 6 |
| (a) For the purposes of this Section, "municipality" means | 7 |
| a municipality with a population of over 2,000,000. | 8 |
| (b) For the purposes of minimizing the hazards to persons | 9 |
| and property resulting from vacant and abandoned property, the | 10 |
| corporate authority of each municipality may prescribe rules, | 11 |
| regulations, or ordinances for the maintenance of vacant and | 12 |
| abandoned property. The corporate authorities of a | 13 |
| municipality may impose registration fees for vacant and | 14 |
| abandoned property and fines for failure to comply with the | 15 |
| rules, regulations, or ordinances enacted pursuant to this | 16 |
| Section. | 17 |
| (c) Pursuant to those rules, regulations, or ordinances, | 18 |
| the corporate authorities of each municipality may hold | 19 |
| responsible for maintaining and securing a vacant property (i) | 20 |
| any owner of the property, (ii) any previous owner of the | 21 |
| property who conveyed the property during the time it was | 22 |
| vacant and failed to comply with any local rule, regulation, or | 23 |
| ordinance requiring the owner to provide the municipality | 24 |
| contact information of the person or entity to whom the owner | 25 |
| conveyed the property until the previous owner has provided the |
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| information requested by the municipality under any such local | 2 |
| rule, regulation, or ordinance, (iii) any trust beneficiary or | 3 |
| other trustee who holds a deed of trust on the property, (iv) | 4 |
| any mortgagee who holds a mortgage on the property, and (v) any | 5 |
| assignee of an owner, beneficiary, trustee, or mortgagee. | 6 |
| (d) A beneficiary, trustee, or mortgagee seeking to comply | 7 |
| with rules, regulations, or ordinances regarding maintenance | 8 |
| or security of vacant property may enter that property to | 9 |
| remedy any potential violation of a rule, regulation, or | 10 |
| ordinance to maintain or secure vacant property, provided that | 11 |
| entry is not barred by an automatic stay issued by a bankruptcy | 12 |
| court. | 13 |
| (e) Beneficiaries, trustees, mortgagees, and their agents | 14 |
| and assignees shall be held harmless from and against all | 15 |
| claims of negligence, civil trespass, and criminal trespass in | 16 |
| connection with compliance activity under the rules, | 17 |
| regulations, and ordinances for the maintenance or security of | 18 |
| vacant property, provided that the person authorizing or | 19 |
| engaging in the compliance activity has (i) made a good faith | 20 |
| effort to identify any owner and occupant of the property and | 21 |
| (ii) made a good faith effort to contact any owner and occupant | 22 |
| in a manner reasonably calculated to give the owner and | 23 |
| occupant notice that the compliance activity is imminent. | 24 |
| (f) For the purpose of this Section, "owner" means the | 25 |
| legal or beneficial owner of an improved or unimproved parcel | 26 |
| of real estate. |
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| (g) For the purpose of this Section, "mortgagee" means (i) | 2 |
| the holder of an indebtedness, the obligee of a non-monetary | 3 |
| obligation secured by a mortgage, any assignee of the mortgage, | 4 |
| or any person designated or authorized to act on behalf of such | 5 |
| holder, (ii) any person or entity who previously initiated a | 6 |
| foreclosure on the vacant property or obtained a foreclosure | 7 |
| judgment against the vacant property if the deed to vacant | 8 |
| property has not been transferred to the purchaser at the | 9 |
| judicial sale, and (iii) any person claiming through a | 10 |
| mortgagee as successor. | 11 |
| (h) For the purpose of this Section, "vacant property" | 12 |
| means any property having complete or incomplete structures | 13 |
| that are empty or otherwise uninhabited. | 14 |
| (i) For the purpose of this Section, "removal cost" means | 15 |
| the total value of fees and fines imposed pursuant to rules, | 16 |
| regulations, or ordinances regarding maintenance, security, or | 17 |
| demolition of vacant property. | 18 |
| (j) To enforce fees and fines pursuant to this Section, a | 19 |
| municipality has the following options: (i) the municipality | 20 |
| may elect to obtain a lien upon the underlying property for the | 21 |
| removal cost in accordance with Section 11-20-15; (ii) in the | 22 |
| case of an abandoned residential property as defined in Section | 23 |
| 11-20-15.1, the municipality may elect to obtain a lien for the | 24 |
| removal cost pursuant to Section 11-20-15.1, in which case the | 25 |
| provisions of Section 11-20-15.1 shall be the exclusive remedy | 26 |
| for the removal cost; or (iii) the municipality may elect to |
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| obtain a lien for the removal cost by exercising any | 2 |
| enforcement actions available under its police powers. ".
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