[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Conference Committee Report 001 ] |
90_HB0884sam001
LRB9000361PTbdam
1 AMENDMENT TO HOUSE BILL 884
2 AMENDMENT NO. . Amend House Bill 884 by replacing
3 the title with the following:
4 "AN ACT in relation to property taxes, amending named
5 Acts."; and
6 by replacing everything below the enacting clause with the
7 following:
8 "Section 5. The Property Tax Code is amended by changing
9 Sections 21-105, 21-310, 21-345, 21-385, 22-15, and 22-20 as
10 follows:
11 (35 ILCS 200/21-105)
12 Sec. 21-105. Liability of owner; rights of tax
13 purchaser. Nothing in Sections 21-95 and 21-100 shall relieve
14 any owner liable for delinquent property taxes under this
15 Code from the payment of any delinquent taxes or liens which
16 have become null and void under those Sections.
17 Sections 21-95 and 21-100 shall not adversely affect the
18 rights or interests of the holder of any bona fide
19 certificate of purchase of the property for delinquent taxes.
20 However, upon acquisition of property by a governmental unit
21 as set forth in Section 21-95, the rights and interests of
-2- LRB9000361PTbdam
1 the holder of any bona fide certificate of purchase of the
2 property for delinquent taxes shall be limited to a sale in
3 error and a refund as provided under Section 21-310.
4 (Source: P.A. 86-949; 86-1158; 88-455.)
5 (35 ILCS 200/21-310)
6 Sec. 21-310. Sales in error.
7 (a) When, upon application of the county collector, tax
8 purchaser, or a municipality which owns or has owned the
9 property ordered sold, it appears to the satisfaction of the
10 court which ordered the property sold that any of the
11 following subsections are applicable, the court shall declare
12 the sale to be a sale in error:
13 (1) the property was not subject to taxation,
14 (2) the taxes or special assessments had been paid
15 prior to the sale of the property,
16 (3) there is a double assessment,
17 (4) the description is void for uncertainty,
18 (5) the assessor, chief county assessment officer,
19 board of review, or board of appeals has made an error
20 (other than an error of judgment as to the value of any
21 property), or
22 (6) prior to the tax sale a voluntary or
23 involuntary petition has been filed by or against the
24 legal or beneficial owner of the property requesting
25 relief under the provisions of 11 U.S.C. Chapter 7, 11,
26 12 or 13, or.
27 (7) a municipality has acquired the property (i)
28 through the foreclosure of a lien authorized under
29 Section 11-31-1 of the Illinois Municipal Code or through
30 a judicial deed issued under that Section or (ii) through
31 foreclosure of a receivership certificate lien.
32 (b) When, upon application of the tax purchaser or his
33 or her assignee only, it appears to the satisfaction of the
-3- LRB9000361PTbdam
1 court which ordered the property sold that any of the
2 following subsections are applicable, the court shall declare
3 a sale in error:
4 (1) A voluntary or involuntary petition under the
5 provisions of U.S.C. Chapter 7, 11, 12, or 13 has been
6 filed subsequent to the tax sale and prior to the
7 issuance of the tax deed.
8 (2) The improvements upon the property sold have
9 been substantially destroyed or rendered uninhabitable or
10 otherwise unfit for occupancy subsequent to the tax sale
11 and prior to the issuance of the tax deed.
12 (3) There is an interest held by the United States
13 in the property sold which could not be extinguished by
14 the tax deed.
15 (4) The real property contains a hazardous
16 substance, hazardous waste, or underground storage tank
17 that would require cleanup or other removal under any
18 federal, State, or local law, ordinance, or regulation,
19 only if the tax purchaser purchased the property without
20 actual knowledge of the hazardous substance, hazardous
21 waste, or underground storage tank. This paragraph (4)
22 applies only to tax purchases occurring after January 1,
23 1990 and if the tax purchaser or his or her assignee has
24 made application for a sale in error at any time before
25 the issuance of a tax deed.
26 (5) The State of Illinois had an interest in the
27 property.
28 (6) That a governmental or municipal corporation
29 acquired title or acquired an interest requiring
30 reimbursement under Section 22-35.
31 (7) An order has been entered during the period of
32 redemption or within one year after the expiration of the
33 period of redemption vacating a prior tax sale.
34 If a sale is declared to be a sale in error, the county
-4- LRB9000361PTbdam
1 clerk shall make entry in the tax judgment, sale, redemption
2 and forfeiture record, that the property was erroneously
3 sold, and the county collector shall, on demand of the owner
4 of the certificate of purchase, refund the amount paid, pay
5 any interest and costs as may be ordered under Sections
6 21-315 through 21-335, and cancel the certificate so far as
7 it relates to the property. The county collector shall deduct
8 from the accounts of the appropriate taxing bodies their pro
9 rata amounts paid. No order shall be entered under this
10 Section or Section 22-35 vacating the tax sale upon which an
11 order for tax deed has been entered.
12 (Source: P.A. 88-455; 88-676, eff. 12-14-94.)
13 (35 ILCS 200/21-345)
14 Sec. 21-345. Right of redemption.
15 (a) Property sold under this Code may be redeemed only
16 by those persons having a right of redemption as defined in
17 this Section and only in accordance with this Code.
18 A right to redeem property from any sale under this Code
19 shall exist in any owner or person interested in that
20 property, other than an undisclosed beneficiary of an
21 Illinois land trust, whether or not the interest in the
22 property sold is recorded or filed. Any redemption shall be
23 presumed to have been made by or on behalf of the owners and
24 persons interested in the property and shall inure to the
25 benefit of the persons having the legal or equitable title to
26 the property redeemed, subject to the right of the person
27 making the redemption to be reimbursed by the persons
28 benefited. No redemption shall be held invalid by reason of
29 the failure of the person redeeming to have recorded or filed
30 the document evidencing an interest in the property prior to
31 redemption, other than an undisclosed beneficiary of an
32 Illinois land trust.
33 (b) Any person who desires to redeem and does not desire
-5- LRB9000361PTbdam
1 to contest the validity of the petition for tax deed may
2 redeem pursuant to this Section and related Sections of this
3 Code without submitting a written protest under Section
4 21-380. This subsection (b) shall be construed as
5 declarative of the existing law and not as a new enactment.
6 (Source: P.A. 86-286; 86-413; 86-418; 86-949; 86-1028;
7 86-1158; 86-1481; 87-145; 87-236; 87-435; 87-895; 87-1189;
8 88-455.)
9 (35 ILCS 200/21-385)
10 Sec. 21-385. Extension of period of redemption. The
11 purchaser or his or her assignee of property sold for
12 nonpayment of general taxes or special assessments may extend
13 the period of redemption at any time before the expiration of
14 the original period of redemption, or thereafter prior to the
15 expiration of any extended period of redemption, for a period
16 which will expire not later than 3 years from the date of
17 sale, by filing with the county clerk of the county in which
18 the property is located a written notice to that effect
19 describing the property, stating the date of the sale and
20 specifying the extended period of redemption. If prior to
21 the expiration of the period of redemption or extended period
22 of redemption a petition for tax deed has been filed under
23 Section 22-30, upon application of the petitioner, the court
24 shall allow the purchaser or his or her assignee to extend
25 the period of redemption after expiration of the original
26 period or any extended period of redemption, provided that
27 any extension allowed will expire not later than 3 years from
28 the date of sale. If the period of redemption is extended,
29 the purchaser or his or her assignee must give the notices
30 provided for in Section 22-10 at the specified times prior to
31 the expiration of the extended period of redemption by
32 causing a sheriff (or if he or she is disqualified, a
33 coroner) of the county in which the property, or any part
-6- LRB9000361PTbdam
1 thereof, is located to serve the notices as provided in
2 Sections 22-15 and 22-20. The notices may also be served as
3 provided in Sections 22-15 and 22-20 by a special process
4 server appointed by the court under Section 22-15.
5 (Source: P.A. 86-949; 87-1189; 88-455.)
6 (35 ILCS 200/22-15)
7 Sec. 22-15. Service of notice. The purchaser or his or
8 her assignee shall give the notice required by Section 22-10
9 by causing it to be published in a newspaper as set forth in
10 Section 22-20. In addition, the notice shall be served by a
11 sheriff (or if he or she is disqualified, by a coroner) of
12 the county in which the property, or any part thereof, is
13 located upon owners who reside on any part of the property
14 sold by leaving a copy of the notice with those owners
15 personally.
16 In counties of 3,000,000 or more inhabitants where a
17 taxing district is a petitioner for tax deed pursuant to
18 Section 21-90, in lieu of service by the sheriff or coroner
19 the notice may be served by a special process server
20 appointed by the circuit court as provided in this Section.
21 The taxing district may move prior to filing one or more
22 petitions for tax deed for appointment of such a special
23 process server. The court, upon being satisfied that the
24 person named in the motion is at least 18 years of age and is
25 capable of serving notice as required under this Code, shall
26 enter an order appointing such person as a special process
27 server for a period of one year. The appointment may be
28 renewed for successive periods of one year each by motion and
29 order, and a copy of the original and any subsequent order
30 shall be filed in each tax deed case in which a notice is
31 served by the appointed person. Delivery of the notice to
32 and service of the notice by the special process server shall
33 have the same force and effect as its delivery to and service
-7- LRB9000361PTbdam
1 by the sheriff or coroner.
2 The same form of notice shall also be served upon all
3 other owners and parties interested in the property, if upon
4 diligent inquiry they can be found in the county, and upon
5 the occupants of the property in the following manner:
6 (a) as to individuals, by (1) leaving a copy of the
7 notice with the person personally or (2) by leaving a
8 copy at his or her usual place of residence with a person
9 of the family, of the age of 13 years or more, and
10 informing that person of its contents. The person making
11 the service shall cause also send a copy of the notice to
12 be sent by registered or certified mail, return receipt
13 requested, to that party at his or her usual place of
14 residence;
15 (b) as to public and private corporations,
16 municipal, governmental and quasi-municipal corporations,
17 partnerships, receivers and trustees of corporations, by
18 leaving a copy of the notice with the person designated
19 by the Civil Practice Law.
20 If the property sold has more than 4 dwellings or other
21 rental units, and has a managing agent or party who collects
22 rents, that person shall be deemed the occupant and shall be
23 served with notice instead of the occupants of the individual
24 units. If the property has no dwellings or rental units, but
25 economic or recreational activities are carried on therein,
26 the person directing such activities shall be deemed the
27 occupant. Holders of rights of entry and possibilities of
28 reverter shall not be deemed parties interested in the
29 property.
30 When a party interested in the property is a trustee,
31 notice served upon the trustee shall be deemed to have been
32 served upon any beneficiary or note holder thereunder unless
33 the holder of the note is disclosed of record.
34 When a judgment is a lien upon the property sold, the
-8- LRB9000361PTbdam
1 holder of the lien shall be served with notice if the name of
2 the judgment debtor as shown in the transcript, certified
3 copy or memorandum of judgment filed of record is identical,
4 as to given name and surname, with the name of the party
5 interested as it appears of record.
6 If any owner or party interested, upon diligent inquiry
7 and effort, cannot be found or served with notice in the
8 county as provided in this Section, and the person in actual
9 occupancy and possession is tenant to, or in possession under
10 the owners or the parties interested in the property, then
11 service of notice upon the tenant, occupant or person in
12 possession shall be deemed service upon the owners or parties
13 interested.
14 If any owner or party interested, upon diligent inquiry
15 and effort cannot be found or served with notice in the
16 county, then the person making the service shall cause send a
17 copy of the notice to be sent by registered or certified
18 mail, return receipt requested, to that party at his or her
19 residence, if ascertainable.
20 (Source: P.A. 87-1189; 88-455; incorporates 88-451; 88-670,
21 eff. 12-2-94.)
22 (35 ILCS 200/22-20)
23 Sec. 22-20. Proof of service of notice; publication of
24 notice. The sheriff or coroner serving notice under Section
25 22-15 shall endorse his or her return thereon and file it
26 with the Clerk of the Circuit Court and it shall be a part of
27 the court record. A special process server appointed under
28 Section 22-15 shall make his or her return by affidavit and
29 shall file it with the Clerk of the Circuit Court, where it
30 shall be a part of the court record. If a sheriff, special
31 process server, or coroner to whom any notice is delivered
32 for service, neglects or refuses to make the return, the
33 purchaser or his or her assignee may petition the court to
-9- LRB9000361PTbdam
1 enter a rule requiring the sheriff, special process server,
2 or coroner to make return of the notice on a day to be fixed
3 by the court, or to show cause on that day why he or she
4 should not be attached for contempt of the court. The
5 purchaser or assignee shall cause a written notice of the
6 rule to be served upon the sheriff, special process server,
7 or coroner. If good and sufficient cause to excuse the
8 sheriff, special process server, or coroner is not shown, the
9 court shall adjudge him or her guilty of a contempt, and
10 shall proceed to punish him as in other cases of contempt.
11 If the property is located in a municipality in a county
12 with less than 3,000,000 inhabitants, the purchaser or his or
13 her assignee shall also publish a notice as to the owner or
14 party interested, in some newspaper published in the
15 municipality. If the property is not in a municipality in a
16 county with less than 3,000,000 inhabitants, or if no
17 newspaper is published therein, or if the property is in a
18 county with 3,000,000 or more inhabitants, the notice shall
19 be published in some newspaper in the county. If no
20 newspaper is published in the county, then the notice shall
21 be published in the newspaper that is published nearest the
22 county seat of the county in which the property is located.
23 If the owners and parties interested in the property upon
24 diligent inquiry are unknown to the purchaser or his or her
25 assignee, the publication as to such owner or party
26 interested, may be made to unknown owners or parties
27 interested. Any notice by publication given under this
28 Section shall be given 3 times at any time after filing a
29 petition for tax deed, but not less than 3 months nor more
30 than 5 months prior to the expiration of the period of
31 redemption. The publication shall contain (a) notice of the
32 filing of the petition for tax deed, (b) the date on which
33 the petitioner intends to make application for an order on
34 the petition that a tax deed issue, (c) a description of the
-10- LRB9000361PTbdam
1 property, (d) the date upon which the property was sold, (e)
2 the taxes or special assessments for which it was sold and
3 (f) the date on which the period of redemption will expire.
4 The publication shall not include more than one property
5 listed and sold in one description, except as provided in
6 Section 21-90, and except that when more than one property is
7 owned by one person, all of the parcels owned by that person
8 may be included in one notice.
9 (Source: P.A. 87-1189; 88-455; 88-535.)
10 Section 10. The Illinois Municipal Code is amended by
11 changing Section 11-31-1 as follows:
12 (65 ILCS 5/11-31-1) (from Ch. 24, par. 11-31-1)
13 Sec. 11-31-1. Demolition, repair, enclosure, or
14 remediation.
15 (a) The corporate authorities of each municipality may
16 demolish, repair, or enclose or cause the demolition, repair,
17 or enclosure of dangerous and unsafe buildings or uncompleted
18 and abandoned buildings within the territory of the
19 municipality and may remove or cause the removal of garbage,
20 debris, and other hazardous, noxious, or unhealthy substances
21 or materials from those buildings. In any county having
22 adopted by referendum or otherwise a county health department
23 as provided by Division 5-25 of the Counties Code or its
24 predecessor, the county board of that county may exercise
25 those powers with regard to dangerous and unsafe buildings or
26 uncompleted and abandoned buildings within the territory of
27 any city, village, or incorporated town having less than
28 50,000 population.
29 The corporate authorities shall apply to the circuit
30 court of the county in which the building is located (i) for
31 an order authorizing action to be taken with respect to a
32 building if the owner or owners of the building, including
-11- LRB9000361PTbdam
1 the lien holders of record, after at least 15 days' written
2 notice by mail so to do, have failed to put the building in a
3 safe condition or to demolish it or (ii) for an order
4 requiring the owner or owners of record to demolish, repair,
5 or enclose the building or to remove garbage, debris, and
6 other hazardous, noxious, or unhealthy substances or
7 materials from the building. It is not a defense to the
8 cause of action that the building is boarded up or otherwise
9 enclosed, although the court may order the defendant to have
10 the building boarded up or otherwise enclosed. Where, upon
11 diligent search, the identity or whereabouts of the owner or
12 owners of the building, including the lien holders of record,
13 is not ascertainable, notice mailed to the person or persons
14 in whose name the real estate was last assessed is sufficient
15 notice under this Section.
16 The hearing upon the application to the circuit court
17 shall be expedited by the court and shall be given precedence
18 over all other suits. Any person entitled to bring an action
19 under subsection (b) shall have the right to intervene in an
20 action brought under this Section.
21 The cost of the demolition, repair, enclosure, or removal
22 incurred by the municipality, by an intervenor, or by a lien
23 holder of record, including court costs, attorney's fees, and
24 other costs related to the enforcement of this Section, is
25 recoverable from the owner or owners of the real estate or
26 the previous owner or both if the property was transferred
27 during the 15 day notice period and is a lien on the real
28 estate; the lien is superior to all prior existing liens and
29 encumbrances, except taxes, if, within 180 days after the
30 repair, demolition, enclosure, or removal, the municipality,
31 the lien holder of record, or the intervenor who incurred the
32 cost and expense shall file a notice of lien for the cost and
33 expense incurred in the office of the recorder in the county
34 in which the real estate is located or in the office of the
-12- LRB9000361PTbdam
1 registrar of titles of the county if the real estate affected
2 is registered under the Registered Titles (Torrens) Act.
3 The notice must consist of a sworn statement setting out
4 (1) a description of the real estate sufficient for its
5 identification, (2) the amount of money representing the cost
6 and expense incurred, and (3) the date or dates when the cost
7 and expense was incurred by the municipality, the lien holder
8 of record, or the intervenor. Upon payment of the cost and
9 expense by the owner of or persons interested in the property
10 after the notice of lien has been filed, the lien shall be
11 released by the municipality, the person in whose name the
12 lien has been filed, or the assignee of the lien, and the
13 release may be filed of record as in the case of filing
14 notice of lien. Unless the lien is enforced under subsection
15 (c), the lien may be enforced by foreclosure proceedings as
16 in the case of mortgage foreclosures under Article XV of the
17 Code of Civil Procedure or mechanics' lien foreclosures. An
18 action to foreclose this lien may be commenced at any time
19 after the date of filing of the notice of lien. The costs of
20 foreclosure incurred by the municipality, including court
21 costs, reasonable attorney's fees, advances to preserve the
22 property, and other costs related to the enforcement of this
23 subsection, plus statutory interest, are a lien on the real
24 estate and are recoverable by the municipality from the owner
25 or owners of the real estate.
26 All liens arising under this subsection (a) shall be
27 assignable. The assignee of the lien shall have the same
28 power to enforce the lien as the assigning party, except that
29 the lien may not be enforced under subsection (c).
30 If the appropriate official of any municipality
31 determines that any dangerous and unsafe building or
32 uncompleted and abandoned building within its territory
33 fulfills the requirements for an action by the municipality
34 under the Abandoned Housing Rehabilitation Act, the
-13- LRB9000361PTbdam
1 municipality may petition under that Act in a proceeding
2 brought under this subsection.
3 (b) Any owner or tenant of real property within 1200
4 feet in any direction of any dangerous or unsafe building
5 located within the territory of a municipality with a
6 population of 500,000 or more may file with the appropriate
7 municipal authority a request that the municipality apply to
8 the circuit court of the county in which the building is
9 located for an order permitting the demolition, removal of
10 garbage, debris, and other noxious or unhealthy substances
11 and materials from, or repair or enclosure of the building in
12 the manner prescribed in subsection (a) of this Section. If
13 the municipality fails to institute an action in circuit
14 court within 90 days after the filing of the request, the
15 owner or tenant of real property within 1200 feet in any
16 direction of the building may institute an action in circuit
17 court seeking an order compelling the owner or owners of
18 record to demolish, remove garbage, debris, and other noxious
19 or unhealthy substances and materials from, repair or enclose
20 or to cause to be demolished, have garbage, debris, and other
21 noxious or unhealthy substances and materials removed from,
22 repaired, or enclosed the building in question. A private
23 owner or tenant who institutes an action under the preceding
24 sentence shall not be required to pay any fee to the clerk of
25 the circuit court. The cost of repair, removal, demolition,
26 or enclosure shall be borne by the owner or owners of record
27 of the building. In the event the owner or owners of record
28 fail to demolish, remove garbage, debris, and other noxious
29 or unhealthy substances and materials from, repair, or
30 enclose the building within 90 days of the date the court
31 entered its order, the owner or tenant who instituted the
32 action may request that the court join the municipality as a
33 party to the action. The court may order the municipality to
34 demolish, remove materials from, repair, or enclose the
-14- LRB9000361PTbdam
1 building, or cause that action to be taken upon the request
2 of any owner or tenant who instituted the action or upon the
3 municipality's request. The municipality may file, and the
4 court may approve, a plan for rehabilitating the building in
5 question. A court order authorizing the municipality to
6 demolish, remove materials from, repair, or enclose a
7 building, or cause that action to be taken, shall not
8 preclude the court from adjudging the owner or owners of
9 record of the building in contempt of court due to the
10 failure to comply with the order to demolish, remove garbage,
11 debris, and other noxious or unhealthy substances and
12 materials from, repair, or enclose the building.
13 If a municipality or a person or persons other than the
14 owner or owners of record pay the cost of demolition, removal
15 of garbage, debris, and other noxious or unhealthy substances
16 and materials, repair, or enclosure pursuant to a court
17 order, the cost, including court costs, attorney's fees, and
18 other costs related to the enforcement of this subsection, is
19 recoverable from the owner or owners of the real estate and
20 is a lien on the real estate; the lien is superior to all
21 prior existing liens and encumbrances, except taxes, if,
22 within 180 days after the repair, removal, demolition, or
23 enclosure, the municipality or the person or persons who paid
24 the costs of demolition, removal, repair, or enclosure shall
25 file a notice of lien of the cost and expense incurred in the
26 office of the recorder in the county in which the real estate
27 is located or in the office of the registrar of the county if
28 the real estate affected is registered under the Registered
29 Titles (Torrens) Act. The notice shall be in a form as is
30 provided in subsection (a). An owner or tenant who
31 institutes an action in circuit court seeking an order to
32 compel the owner or owners of record to demolish, remove
33 materials from, repair, or enclose any dangerous or unsafe
34 building, or to cause that action to be taken under this
-15- LRB9000361PTbdam
1 subsection may recover court costs and reasonable attorney's
2 fees for instituting the action from the owner or owners of
3 record of the building. Upon payment of the costs and
4 expenses by the owner of or a person interested in the
5 property after the notice of lien has been filed, the lien
6 shall be released by the municipality or the person in whose
7 name the lien has been filed or his or her assignee, and the
8 release may be filed of record as in the case of filing a
9 notice of lien. Unless the lien is enforced under subsection
10 (c), the lien may be enforced by foreclosure proceedings as
11 in the case of mortgage foreclosures under Article XV of the
12 Code of Civil Procedure or mechanics' lien foreclosures. An
13 action to foreclose this lien may be commenced at any time
14 after the date of filing of the notice of lien. The costs of
15 foreclosure incurred by the municipality, including court
16 costs, reasonable attorneys' fees, advances to preserve the
17 property, and other costs related to the enforcement of this
18 subsection, plus statutory interest, are a lien on the real
19 estate and are recoverable by the municipality from the owner
20 or owners of the real estate.
21 All liens arising under the terms of this subsection (b)
22 shall be assignable. The assignee of the lien shall have the
23 same power to enforce the lien as the assigning party, except
24 that the lien may not be enforced under subsection (c).
25 (c) In any case where a municipality has obtained a lien
26 under subsection (a), (b), or (f), the municipality may
27 enforce the lien under this subsection (c) in the same
28 proceeding in which the lien is authorized.
29 A municipality desiring to enforce a lien under this
30 subsection (c) shall petition the court to retain
31 jurisdiction for foreclosure proceedings under this
32 subsection. Notice of the petition shall be served, by
33 certified or registered mail, on all persons who were served
34 notice under subsection (a), (b), or (f). The court shall
-16- LRB9000361PTbdam
1 conduct a hearing on the petition not less than 15 days after
2 the notice is served. If the court determines that the
3 requirements of this subsection (c) have been satisfied, it
4 shall grant the petition and retain jurisdiction over the
5 matter until the foreclosure proceeding is completed. The
6 costs of foreclosure incurred by the municipality, including
7 court costs, reasonable attorneys' fees, advances to preserve
8 the property, and other costs related to the enforcement of
9 this subsection, plus statutory interest, are a lien on the
10 real estate and are recoverable by the municipality from the
11 owner or owners of the real estate. If the court denies the
12 petition, the municipality may enforce the lien in a separate
13 action as provided in subsection (a), (b), or (f).
14 All persons designated in Section 15-1501 of the Code of
15 Civil Procedure as necessary parties in a mortgage
16 foreclosure action shall be joined as parties before issuance
17 of an order of foreclosure. Persons designated in Section
18 15-1501 of the Code of Civil Procedure as permissible parties
19 may also be joined as parties in the action.
20 The provisions of Article XV of the Code of Civil
21 Procedure applicable to mortgage foreclosures shall apply to
22 the foreclosure of a lien under this subsection (c), except
23 to the extent that those provisions are inconsistent with
24 this subsection. For purposes of foreclosures of liens
25 under this subsection, however, the redemption period
26 described in subsection (b) of Section 15-1603 of the Code of
27 Civil Procedure shall end 60 days after the date of entry of
28 the order of foreclosure.
29 (d) In addition to any other remedy provided by law, the
30 corporate authorities of any municipality may petition the
31 circuit court to have property declared abandoned under this
32 subsection (d) if:
33 (1) the property has been tax delinquent for 2 or
34 more years or bills for water service for the property
-17- LRB9000361PTbdam
1 have been outstanding for 2 or more years;
2 (2) the property is unoccupied by persons legally
3 in possession; and
4 (3) the property contains a dangerous or unsafe
5 building.
6 All persons having an interest of record in the property,
7 including tax purchasers and beneficial owners of any
8 Illinois land trust having title to the property, shall be
9 named as defendants in the petition and shall be served with
10 process. In addition, service shall be had under Section
11 2-206 of the Code of Civil Procedure as in other cases
12 affecting property.
13 The municipality, however, may proceed under this
14 subsection in a proceeding brought under subsection (a) or
15 (b). Notice of the petition shall be served by certified or
16 registered mail on all persons who were served notice under
17 subsection (a) or (b).
18 If the municipality proves that the conditions described
19 in this subsection exist and the owner of record of the
20 property does not enter an appearance in the action, or, if
21 title to the property is held by an Illinois land trust, if
22 neither the owner of record nor the owner of the beneficial
23 interest of the trust enters an appearance, the court shall
24 declare the property abandoned.
25 If that determination is made, notice shall be sent by
26 certified or registered mail to all persons having an
27 interest of record in the property, including tax purchasers
28 and beneficial owners of any Illinois land trust having title
29 to the property, stating that title to the property will be
30 transferred to the municipality unless, within 30 days of the
31 notice, the owner of record enters an appearance in the
32 action, or unless any other person having an interest in the
33 property files with the court a request to demolish the
34 dangerous or unsafe building or to put the building in safe
-18- LRB9000361PTbdam
1 condition.
2 If the owner of record enters an appearance in the action
3 within the 30 day period, the court shall vacate its order
4 declaring the property abandoned. In that case, the
5 municipality may amend its complaint in order to initiate
6 proceedings under subsection (a).
7 If a request to demolish or repair the building is filed
8 within the 30 day period, the court shall grant permission to
9 the requesting party to demolish the building within 30 days
10 or to restore the building to safe condition within 60 days
11 after the request is granted. An extension of that period
12 for up to 60 additional days may be given for good cause. If
13 more than one person with an interest in the property files a
14 timely request, preference shall be given to the person with
15 the lien or other interest of the highest priority.
16 If the requesting party proves to the court that the
17 building has been demolished or put in a safe condition
18 within the period of time granted by the court, the court
19 shall issue a quitclaim judicial deed for the property to the
20 requesting party, conveying only the interest of the owner of
21 record, upon proof of payment to the municipality of all
22 costs incurred by the municipality in connection with the
23 action, including but not limited to court costs, attorney's
24 fees, administrative costs, the costs, if any, associated
25 with building enclosure or removal, and receiver's
26 certificates. The interest in the property so conveyed shall
27 be subject to all liens and encumbrances on the property. In
28 addition, if the interest is conveyed to a person holding a
29 certificate of purchase for the property under the Property
30 Tax Code, the conveyance shall be subject to the rights of
31 redemption of all persons entitled to redeem under that Act,
32 including the original owner of record.
33 If no person with an interest in the property files a
34 timely request or if the requesting party fails to demolish
-19- LRB9000361PTbdam
1 the building or put the building in safe condition within the
2 time specified by the court, the municipality may petition
3 the court to issue a judicial deed for the property to the
4 municipality. A conveyance by judicial deed shall operate to
5 extinguish all existing ownership interests in, liens on, and
6 other interest in the property, including tax liens,. and
7 shall extinguish the rights and interests of any and all
8 holders of a bona fide certificate of purchase of the
9 property for delinquent taxes. Any such bona fide
10 certificate of purchase holder shall be entitled to a sale in
11 error as prescribed under Section 21-310 of the Property Tax
12 Code.
13 (e) Each municipality may use the provisions of this
14 subsection to expedite the removal of certain buildings that
15 are a continuing hazard to the community in which they are
16 located.
17 If a residential building is 2 stories or less in height
18 as defined by the municipality's building code, and the
19 corporate official designated to be in charge of enforcing
20 the municipality's building code determines that the building
21 is open and vacant and an immediate and continuing hazard to
22 the community in which the building is located, then the
23 official shall be authorized to post a notice not less than 2
24 feet by 2 feet in size on the front of the building. The
25 notice shall be dated as of the date of the posting and shall
26 state that unless the building is demolished, repaired, or
27 enclosed, and unless any garbage, debris, and other
28 hazardous, noxious, or unhealthy substances or materials are
29 removed so that an immediate and continuing hazard to the
30 community no longer exists, then the building may be
31 demolished, repaired, or enclosed, or any garbage, debris,
32 and other hazardous, noxious, or unhealthy substances or
33 materials may be removed, by the municipality.
34 Not later than 30 days following the posting of the
-20- LRB9000361PTbdam
1 notice, the municipality shall do both of the following:
2 (1) Cause to be sent, by certified mail, return
3 receipt requested, a notice to all owners of record of
4 the property, the beneficial owners of any Illinois land
5 trust having title to the property, and all lienholders
6 of record in the property, stating the intent of the
7 municipality to demolish, repair, or enclose the building
8 or remove any garbage, debris, or other hazardous,
9 noxious, or unhealthy substances or materials if that
10 action is not taken by the owner or owners.
11 (2) Cause to be published, in a newspaper published
12 or circulated in the municipality where the building is
13 located, a notice setting forth (i) the permanent tax
14 index number and the address of the building, (ii) a
15 statement that the property is open and vacant and
16 constitutes an immediate and continuing hazard to the
17 community, and (iii) a statement that the municipality
18 intends to demolish, repair, or enclose the building or
19 remove any garbage, debris, or other hazardous, noxious,
20 or unhealthy substances or materials if the owner or
21 owners or lienholders of record fail to do so. This
22 notice shall be published for 3 consecutive days.
23 A person objecting to the proposed actions of the
24 corporate authorities may file his or her objection in an
25 appropriate form in a court of competent jurisdiction.
26 If the building is not demolished, repaired, or enclosed,
27 or the garbage, debris, or other hazardous, noxious, or
28 unhealthy substances or materials are not removed, within 30
29 days of mailing the notice to the owners of record, the
30 beneficial owners of any Illinois land trust having title to
31 the property, and all lienholders of record in the property,
32 or within 30 days of the last day of publication of the
33 notice, whichever is later, the corporate authorities shall
34 have the power to demolish, repair, or enclose the building
-21- LRB9000361PTbdam
1 or to remove any garbage, debris, or other hazardous,
2 noxious, or unhealthy substances or materials.
3 The municipality may proceed to demolish, repair, or
4 enclose a building or remove any garbage, debris, or other
5 hazardous, noxious, or unhealthy substances or materials
6 under this subsection within a 120-day period following the
7 date of the mailing of the notice if the appropriate official
8 determines that the demolition, repair, enclosure, or removal
9 of any garbage, debris, or other hazardous, noxious, or
10 unhealthy substances or materials is necessary to remedy the
11 immediate and continuing hazard. If, however, before the
12 municipality proceeds with any of the actions authorized by
13 this subsection, any person has sought a hearing under this
14 subsection before a court and has served a copy of the
15 complaint on the chief executive officer of the municipality,
16 then the municipality shall not proceed with the demolition,
17 repair, enclosure, or removal of garbage, debris, or other
18 substances until the court determines that that action is
19 necessary to remedy the hazard and issues an order
20 authorizing the municipality to do so.
21 Following the demolition, repair, or enclosure of a
22 building, or the removal of garbage, debris, or other
23 hazardous, noxious, or unhealthy substances or materials
24 under this subsection, the municipality may file a notice of
25 lien against the real estate for the cost of the demolition,
26 repair, enclosure, or removal within 180 days after the
27 repair, demolition, enclosure, or removal occurred, for the
28 cost and expense incurred, in the office of the recorder in
29 the county in which the real estate is located or in the
30 office of the registrar of titles of the county if the real
31 estate affected is registered under the Registered Titles
32 (Torrens) Act. The notice of lien shall consist of a sworn
33 statement setting forth (i) a description of the real estate,
34 such as the address or other description of the property,
-22- LRB9000361PTbdam
1 sufficient for its identification; (ii) the expenses incurred
2 by the municipality in undertaking the remedial actions
3 authorized under this subsection; (iii) the date or dates the
4 expenses were incurred by the municipality; (iv) a statement
5 by the corporate official responsible for enforcing the
6 building code that the building was open and vacant and
7 constituted an immediate and continuing hazard to the
8 community; (v) a statement by the corporate official that the
9 required sign was posted on the building, that notice was
10 sent by certified mail to the owners of record, and that
11 notice was published in accordance with this subsection; and
12 (vi) a statement as to when and where the notice was
13 published. The lien authorized by this subsection may
14 thereafter be released or enforced by the municipality as
15 provided in subsection (a).
16 (f) The corporate authorities of each municipality may
17 remove or cause the removal of, or otherwise environmentally
18 remediate hazardous substances on, in, or under any abandoned
19 and unsafe property within the territory of a municipality.
20 In addition, where preliminary evidence indicates the
21 presence or likely presence of a hazardous substance or a
22 release or a substantial threat of a release of a hazardous
23 substance on, in, or under the property, the corporate
24 authorities of the municipality may inspect the property and
25 test for the presence or release of hazardous substances. In
26 any county having adopted by referendum or otherwise a county
27 health department as provided by Division 5-25 of the
28 Counties Code or its predecessor, the county board of that
29 county may exercise the above-described powers with regard to
30 property within the territory of any city, village, or
31 incorporated town having less than 50,000 population.
32 For purposes of this subsection (f):
33 (1) "property" or "real estate" means all real
34 property, whether or not improved by a structure;
-23- LRB9000361PTbdam
1 (2) "abandoned" means;
2 (A) the property has been tax delinquent for 2
3 or more years;
4 (B) the property is unoccupied by persons
5 legally in possession; and
6 (3) "unsafe" means property that presents an actual
7 or imminent threat to public health and safety caused by
8 the release of hazardous substances; and
9 (4) "hazardous substances" means the same as in
10 Section 3.14 of the Environmental Protection Act.
11 The corporate authorities shall apply to the circuit
12 court of the county in which the property is located (i) for
13 an order allowing the municipality to enter the property and
14 inspect and test substances on, in, or under the property; or
15 (ii) for an order authorizing the corporate authorities to
16 take action with respect to remediation of the property if
17 conditions on the property, based on the inspection and
18 testing authorized in paragraph (i), indicate the presence of
19 hazardous substances. Remediation shall be deemed complete
20 for purposes of paragraph (ii) above when the property
21 satisfies Tier I, II, or III remediation objectives for the
22 property's most recent usage, as established by the
23 Environmental Protection Act, and the rules and regulations
24 promulgated thereunder. Where, upon diligent search, the
25 identity or whereabouts of the owner or owners of the
26 property, including the lien holders of record, is not
27 ascertainable, notice mailed to the person or persons in
28 whose name the real estate was last assessed is sufficient
29 notice under this Section.
30 The court shall grant an order authorizing testing under
31 paragraph (i) above upon a showing of preliminary evidence
32 indicating the presence or likely presence of a hazardous
33 substance or a release of or a substantial threat of a
34 release of a hazardous substance on, in, or under abandoned
-24- LRB9000361PTbdam
1 property. The preliminary evidence may include, but is not
2 limited to, evidence of prior use, visual site inspection, or
3 records of prior environmental investigations. The testing
4 authorized by paragraph (i) above shall include any type of
5 investigation which is necessary for an environmental
6 professional to determine the environmental condition of the
7 property, including but not limited to performance of soil
8 borings and groundwater monitoring. The court shall grant a
9 remediation order under paragraph (ii) above where testing of
10 the property indicates that it fails to meet the applicable
11 remediation objectives. The hearing upon the application to
12 the circuit court shall be expedited by the court and shall
13 be given precedence over all other suits.
14 The cost of the inspection, testing, or remediation
15 incurred by the municipality or by a lien holder of record,
16 including court costs, attorney's fees, and other costs
17 related to the enforcement of this Section, is a lien on the
18 real estate; except that in any instances where a
19 municipality incurs costs of inspection and testing but finds
20 no hazardous substances on the property that present an
21 actual or imminent threat to public health and safety, such
22 costs are not recoverable from the owners nor are such costs
23 a lien on the real estate. The lien is superior to all prior
24 existing liens and encumbrances, except taxes and any lien
25 obtained under subsection (a) or (e), if, within 180 days
26 after the completion of the inspection, testing, or
27 remediation, the municipality or the lien holder of record
28 who incurred the cost and expense shall file a notice of lien
29 for the cost and expense incurred in the office of the
30 recorder in the county in which the real estate is located or
31 in the office of the registrar of titles of the county if the
32 real estate affected is registered under the Registered
33 Titles (Torrens) Act.
34 The notice must consist of a sworn statement setting out
-25- LRB9000361PTbdam
1 (i) a description of the real estate sufficient for its
2 identification, (ii) the amount of money representing the
3 cost and expense incurred, and (iii) the date or dates when
4 the cost and expense was incurred by the municipality or the
5 lien holder of record. Upon payment of the lien amount by
6 the owner of or persons interested in the property after the
7 notice of lien has been filed, a release of lien shall be
8 issued by the municipality, the person in whose name the lien
9 has been filed, or the assignee of the lien, and the release
10 may be filed of record as in the case of filing notice of
11 lien.
12 The lien may be enforced under subsection (c) or by
13 foreclosure proceedings as in the case of mortgage
14 foreclosures under Article XV of the Code of Civil Procedure
15 or mechanics' lien foreclosures; provided that where the lien
16 is enforced by foreclosure under subsection (c) or under
17 either statute, the municipality may not proceed against the
18 other assets of the owner or owners of the real estate for
19 any costs that otherwise would be recoverable under this
20 Section but that remain unsatisfied after foreclosure except
21 where such additional recovery is authorized by separate
22 environmental laws. An action to foreclose this lien may be
23 commenced at any time after the date of filing of the notice
24 of lien. The costs of foreclosure incurred by the
25 municipality, including court costs, reasonable attorney's
26 fees, advances to preserve the property, and other costs
27 related to the enforcement of this subsection, plus statutory
28 interest, are a lien on the real estate.
29 All liens arising under this subsection (f) shall be
30 assignable. The assignee of the lien shall have the same
31 power to enforce the lien as the assigning party, except that
32 the lien may not be enforced under subsection (c).
33 (Source: P.A. 89-235, eff. 8-4-95; 89-303, eff. 1-1-96;
34 90-393, eff. 1-1-98.)
-26- LRB9000361PTbdam
1 Section 99. Effective date. This Act takes effect upon
2 becoming law.".