Illinois General Assembly - Full Text of SB0336
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Full Text of SB0336  98th General Assembly



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1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Property Tax Code is amended by adding
5Section 15-174 as follows:
6    (35 ILCS 200/15-174 new)
7    Sec. 15-174. Community stabilization assessment freeze
8pilot program.
9    (a) Beginning January 1, 2015 and ending June 30, 2029, the
10chief county assessment officer of any county may reduce the
11assessed value of improvements to residential real property in
12accordance with subsection (b) for 10 taxable years after the
13improvements are put in service, if and only if all of the
14following factors have been met:
15        (1) the improvements are residential;
16        (2) the parcel was purchased or otherwise conveyed to
17    the taxpayer after January 1 of the taxable year and that
18    conveyance was not a tax sale as required under the
19    Property Tax Code;
20        (3) the parcel is located in a targeted area;
21        (4) for single family homes, the taxpayer occupies the
22    improvements on the parcel as his or her primary residence;
23    for residences of one to 6 units that will not be



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1    owner-occupied, the taxpayer replaces 2 primary building
2    systems as outlined in this Section;
3        (5) the transfer from the holder of the prior mortgage
4    to the taxpayer was an arm's length transaction, in that
5    the taxpayer has no legal relationship to the holder of the
6    prior mortgage;
7        (6) an existing residential dwelling structure of no
8    more than 6 units on the parcel was unoccupied at the time
9    of conveyance for a minimum of 6 months, or the parcel was
10    ordered by a court of competent jurisdiction to be
11    deconverted in accordance with the provisions governing
12    distressed condominiums as provided in the Condominium
13    Property Act;
14        (7) the parcel is clear of unreleased liens and has no
15    outstanding tax liabilities attached against it; and
16        (8) the purchase price did not exceed the Federal
17    Housing Administration's loan limits then in place for the
18    area in which the improvement is located.
19    To be eligible for the benefit conferred by this Section,
20residential units must (i) meet local building codes, or if
21there are no local building codes, Housing Quality Standards,
22as determined by the U.S. Department of Housing and Urban
23Development from time to time and (ii) be owner-occupied or in
24need of substantial rehabilitation. "Substantial
25rehabilitation" means, at a minimum, compliance with local
26building codes and the replacement or renovation of at least 2



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1primary building systems. Although the cost of each primary
2building system may vary, the combined expenditure for making
3the building compliant with local codes and replacing primary
4building systems must be at least $5 per square foot, adjusted
5by the Consumer Price Index for All Urban Consumers, as
6published annually by the U.S. Department of Labor. "Primary
7building systems", together with their related
8rehabilitations, specifically approved for this program are:
9        (1) Electrical. All electrical work must comply with
10    applicable codes; it may consist of a combination of any of
11    the following alternatives:
12            (A) installing individual equipment and appliance
13        branch circuits as required by code (the minimum being
14        a kitchen appliance branch circuit);
15            (B) installing a new emergency service, including
16        emergency lighting with all associated conduits and
17        wiring;
18            (C) rewiring all existing feeder conduits ("home
19        runs") from the main switchgear to apartment area
20        distribution panels;
21            (D) installing new in-wall conduits for
22        receptacles, switches, appliances, equipment, and
23        fixtures;
24            (E) replacing power wiring for receptacles,
25        switches, appliances, equipment, and fixtures;
26            (F) installing new light fixtures throughout the



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1        building including closets and central areas;
2            (G) replacing, adding, or doing work as necessary
3        to bring all receptacles, switches, and other
4        electrical devices into code compliance;
5            (H) installing a new main service, including
6        conduit, cables into the building, and main disconnect
7        switch; and
8            (I) installing new distribution panels, including
9        all panel wiring, terminals, circuit breakers, and all
10        other panel devices.
11        (2) Heating. All heating work must comply with
12    applicable codes; it may consist of a combination of any of
13    the following alternatives:
14            (A) installing a new system to replace one of the
15        following heat distribution systems: (i) piping and
16        heat radiating units, including new main line venting
17        and radiator venting; or (ii) duct work, diffusers, and
18        cold air returns; or (iii) any other type of existing
19        heat distribution and radiation/diffusion components;
20        or
21            (B) installing a new system to replace one of the
22        following heat generating units: (i) hot water/steam
23        boiler; (ii) gas furnace; or (iii) any other type of
24        existing heat generating unit.
25        (3) Plumbing. All plumbing work must comply with
26    applicable codes. Replace all or a part of the in-wall



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1    supply and waste plumbing; however, main supply risers,
2    waste stacks and vents, and code-conforming waste lines
3    need not be replaced.
4        (4) Roofing. All roofing work must comply with
5    applicable codes; it may consist of either of the following
6    alternatives, separately or in combination:
7            (A) replacing all rotted roof decks and
8        insulation; or
9            (B) replacing or repairing leaking roof membranes
10        (10% is the suggested minimum replacement of
11        membrane); restoration of the entire roof is an
12        acceptable substitute for membrane replacement.
13        (5) Exterior doors and windows. Replace the exterior
14    doors and windows. Renovation of ornate entry doors is an
15    acceptable substitute for replacement.
16        (6) Floors, walls, and ceilings. Finishes must be
17    replaced or covered over with new material. Acceptable
18    replacement or covering materials are as follows:
19            (A) floors must have new carpeting, vinyl tile,
20        ceramic, refurbished wood finish, or a similar
21        substitute;
22            (B) walls must have new drywall, including joint
23        taping and painting; or
24            (C) new ceilings must be either drywall, suspended
25        type, or a similar substitute.
26        (7) Exterior walls.



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1            (A) replace loose or crumbling mortar and masonry
2        with new material;
3            (B) replace or paint wall siding and trim as
4        needed;
5            (C) bring porches and balconies to a sound
6        condition; or
7            (D) any combination of (A), (B), and (C).
8        (8) Elevators. Where applicable, at least 4 of the
9    following 7 alternatives must be accomplished:
10            (A) replace or rebuild the machine room controls
11        and refurbish the elevator machine (or equivalent
12        mechanisms in the case of hydraulic elevators);
13            (B) replace hoistway electro-mechanical items
14        including: ropes, switches, limits, buffers, levelers,
15        and deflector sheaves (or equivalent mechanisms in the
16        case of hydraulic elevators);
17            (C) replace hoistway wiring;
18            (D) replace door operators and linkage;
19            (E) replace door panels at each opening;
20            (F) replace hall stations, car stations, and
21        signal fixtures; or
22            (G) rebuild the car shell and refinish the
23        interior.
24        (9) Health and safety.
25            (A) install or replace fire suppression systems;
26            (B) install or replace security systems; or



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1            (C) environmental remediation of lead-based paint,
2        asbestos, leaking underground storage tanks, or radon.
3        (10) Energy conservation improvements undertaken to
4    limit the amount of solar energy absorbed by a building's
5    roof or to reduce energy use for the property, including
6    any of the following activities:
7            (A) installing or replacing reflective roof
8        coatings (flat roofs);
9            (B) installing or replacing R-38 roof insulation;
10            (C) installing or replacing R-19 perimeter wall
11        insulation;
12            (D) installing or replacing insulated entry doors;
13            (E) installing or replacing Low E, insulated
14        windows;
15            (F) installing or replacing low-flow plumbing
16        fixtures;
17            (G) installing or replacing 90% sealed combustion
18        heating systems;
19            (H) installing or replacing direct exhaust hot
20        water heaters;
21            (I) installing or replacing mechanical ventilation
22        to exterior for kitchens and baths;
23            (J) installing or replacing Energy Star
24        appliances;
25            (K) installing low VOC interior paints on interior
26        finishes;



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1            (L) installing or replacing fluorescent lighting
2        in common areas; or
3            (M) installing or replacing grading and
4        landscaping to promote on-site water retention.
5    (b) For the first 7 years after the improvements are placed
6in service, the assessed value of the improvements shall be
7reduced by an amount equal to 90% of the difference between the
8base year assessed value of the improvements and the assessed
9value of the improvements in the current taxable year. The
10property will continue to be eligible for the benefits under
11this Section in the eighth and ninth taxable years after the
12improvements are placed in service, calculated as follows, if
13and only if all of the factors in subsection (a) of this
14Section continue to be met: in the eighth taxable year, the
15assessed value of the improvements shall be reduced by an
16amount equal to 65% of the difference between the base year
17assessed value of the improvements and the assessed value of
18the improvements in the current taxable year, and in the ninth
19taxable year, the assessed value of the improvements shall be
20reduced by an amount equal to 35% of the difference between the
21base year assessed value of the improvements and the assessed
22value of the improvements in the current taxable year. The
23benefit will cease in the tenth taxable year.
24    (c) In order to receive benefits under this Section, in
25addition to any information required by the chief county
26assessment officer, the taxpayer must also submit the following



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1information to the chief county assessment officer for review:
2        (1) the owner's name;
3        (2) the postal address and permanent index number of
4    the parcel;
5        (3) a deed or other instrument conveying the parcel to
6    the current owner;
7        (4) evidence that the purchase price is within the
8    Federal Housing Administration's loan limits for the area
9    in which the improvement is located;
10        (5) certification that the parcel was unoccupied at the
11    time of conveyance to the current owner for a minimum of at
12    least 6 months;
13        (6) evidence that the parcel is clear of unreleased
14    liens and has no outstanding tax liabilities attached
15    against it;
16        (7) evidence that the improvements meet local building
17    codes, or if there are no local building codes, Housing
18    Quality Standards, as determined by the U.S. Department of
19    Housing and Urban Development from time to time, which may
20    be shown by a certificate of occupancy issued by the
21    appropriate local government or the certification by a home
22    inspector licensed by the State of Illinois; and
23        (8) any additional information as reasonably required
24    by the chief county assessment officer.
25    (d) The chief county assessment officer shall notify the
26taxpayer as to whether or not the parcel meets the requirements



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1of this Section. If the parcel does not meet the requirements
2of this Section, the chief county assessment officer shall
3provide written notice of any deficiencies to the taxpayer, who
4will then have 14 days from the date of notification to provide
5supplemental information showing compliance with this Section.
6If the taxpayer does not exercise this right to cure the
7deficiency, or if the information submitted, in the sole
8judgment of the chief county assessment officer, is
9insufficient to meet the requirements of this Section, the
10chief county assessment officer shall provide a written
11explanation of the reasons for denial. A taxpayer may
12subsequently reapply for the benefit if the deficiencies are
13cured at a later date, but no later than 2019. The chief county
14assessment officer may charge a reasonable application fee to
15offset the administrative expenses associated with the
17    (e) The benefit conferred by this Section is limited as
19        (1) The owner is eligible to apply for the benefit
20    conferred by this Section beginning January 1, 2015 through
21    December 31, 2019. If approved, the reduction will be
22    effective for the current taxable year, which will be
23    reflected in the tax bill issued in the following taxable
24    year.
25        (2) The reduction outlined in this Section shall
26    continue for a period of 10 years, and may not be extended



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1    or renewed for any additional period.
2        (3) At the completion of the assessment freeze period
3    described here, the entire parcel will be assessed as
4    otherwise provided in this Code.
5        (4) If there is a transfer of ownership during the
6    period of the assessment freeze, then the benefit conferred
7    by this Section shall not apply on or after the date of
8    that transfer unless (i) the property is conveyed by an
9    owner who does not occupy the improvements as a primary
10    residence to an owner who will occupy the improvements as a
11    primary residence and (ii) all requirements of this Section
12    continue to be met.
13    (f) If the taxpayer does not occupy or intend to occupy the
14residential dwelling as his or her principal residence within a
15reasonable time, as determined by the chief county assessment
16officer, the taxpayer must:
17        (1) immediately secure the residential dwelling in
18    accordance with the requirements of this Section;
19        (2) complete sufficient rehabilitation to bring the
20    improvements into compliance with local building codes,
21    including, without limitation, regulations concerning
22    lead-based paint and asbestos remediation; and
23        (3) complete rehabilitation within 18 months of
24    conveyance.
25    (g) For the purposes of this Section,
26        "Base year" means the taxable year prior to the taxable



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1    year in which the property is purchased by the eligible
2    homeowner.
3        "Secure" means that:
4            (1) all doors and windows are closed and secured
5        using secure doors, windows without broken or cracked
6        panes, commercial-quality metal security panels filled
7        with like-kind material as the surrounding wall, or
8        plywood installed and secured in accordance with local
9        ordinances; at least one building entrance shall be
10        accessible from the exterior and secured with a door
11        that is locked to allow access only to authorized
12        persons;
13            (2) all grass and weeds on the vacant residential
14        property are maintained below 10 inches in height,
15        unless a local ordinance imposes a lower height;
16            (3) debris, trash, and litter on any portion of the
17        exterior of the vacant residential property is removed
18        in compliance with local ordinance;
19            (4) fences, gates, stairs, and steps that lead to
20        the main entrance of the building are maintained in a
21        structurally sound and reasonable manner;
22            (5) the property is winterized when appropriate;
23            (6) the exterior of the improvements are
24        reasonably maintained to ensure the safety of
25        passersby; and
26            (7) vermin and pests are regularly exterminated on



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1        the exterior and interior of the property.
2        "Targeted Area" means a distressed community that
3    meets the geographic, poverty, and unemployment criteria
4    for a distressed community set forth in 12 C.F.R. 1806.200.