Rep. William D. Burns
Filed: 4/1/2009
 
 

 




 

 		












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AMENDMENT TO HOUSE BILL 3863




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    AMENDMENT NO. ______. Amend House Bill 3863 on page 1, line 
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5, by deleting "15-1504.5, 15-1508,"; and
 




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on page 1, line 6, by changing "15-1504.6, and 15-1508.5" to 
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"15-1202.5 and 15-1508.5"; and
 






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by replacing lines 8 through 21 of page 1, all of pages 2 
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through 5, and lines 1 through 11 of page 6 with the following:
 
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    "(735 ILCS 5/15-1202.5 new)

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    Sec. 15-1202.5. Dwelling Unit. "Dwelling unit" means a room 
10
or suite of rooms providing complete, independent living 
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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
 
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on page 6, by replacing lines 15 through 20 with the following:
 


 






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    "(a) The holder of the certificate of sale or deed issued 
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pursuant to that certificate or, if no certificate or deed was 
3
issued, the purchaser, shall:




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        (1) following the judicial sale under Section 15-1507, 
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    but not later than 14 days after the confirmation of sale 
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    under Section 15-1508, make a good faith effort to 
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    ascertain the identities and addresses of all occupants of 
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    dwelling units of the mortgaged real estate; and
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    (2) following the order confirming sale under Section 
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    15-1508, but not later than 21 days after the order 
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    confirming sale, notify all known occupants of dwelling 
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    units of the mortgaged real estate that he or she has 
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    acquired the mortgaged real estate, including any 
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    occupants identified as a result of the good faith effort 
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    required under this subsection.  The holder or purchaser is 
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    not required to provide the notice required by this Section 
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    to a mortgagor or party against whom an order of possession 
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    has been entered authorizing the removal of the mortgagor 
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    or party pursuant to Section 15-1508(g)."; and



 
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on page 6, line 21, by inserting "(2)" after "(a)"; and
 






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on page 6, by replacing lines 23 through 25 with  the following: 
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        "(1) identify the occupant being served by name;
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        (2) inform the occupant that the mortgaged real estate 
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    is the subject of a foreclosure action and that control of 
 


 






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    the mortgaged real estate has changed;"; and
 




2
on page 7, line 1, by replacing "(2)" with "(3)"; and
 




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on page 7, lines 2 and 3, by deleting "to whom the occupants 
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should pay rent and"; and
 




5
on page 7, by replacing lines 6 through 19 with the following:
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        "(4) include the following language, or language that 
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    is substantially similar:
"This is NOT a notice to vacate 
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    the premises.  You will receive additional notice if your 
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    lease or rental agreement is being terminated.  You may wish 
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    to contact a lawyer or your local legal aid or housing 
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    counseling agency to discuss any rights that you may 
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    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
 






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on page 8, by replacing lines 1 through 13 with the following:
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"the notice to the known occupant by first-class mail, 
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addressed to the occupant by name.
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    (d) In the event that the holder or purchaser ascertains 
 


 






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the identity and address of an occupant of a dwelling unit of 
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the mortgaged real estate more than 14 days after the 
3
confirmation of sale under Section 15-1508, the holder or 
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purchaser shall provide the notice required by subsection 
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(a)(2) within 7 days of ascertaining the identity and address 
6
of the occupant.
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    (e)(i) A holder or purchaser who fails to comply with 
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subsections (a), (b), (c), and (d) may not collect any rent due 
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and owing from a known occupant, or terminate a known 
10
occupant's tenancy for non-payment of such rent, until the 
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holder or purchaser has served the notice described in 
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subsection (a)(2) of this Section 15-1508.5 upon the occupant.  
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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.
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    (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 
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estate at the time of payment, shall not be held liable for 
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that rent by the holder or purchaser, and the occupant's 
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tenancy shall not be terminated for non-payment of rent for 
22
that rental period.
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    (f) Following the confirmation of sale, a holder or 
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purchaser may request, in writing, a copy of the lease or 
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rental agreement of an occupant who has been served the notice 
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prescribed in subsection (a)(2) of this Section, or the notice 
 


 






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


 






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


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"the order confirming the sale is entered.  Following the 
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confirmation of sale and until the right of possession of an 
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occupant of a dwelling unit of the mortgaged real estate has 
 


 






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been terminated, the holder or purchaser shall: (i) maintain 
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any essential utility services that had been the obligation of 
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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 
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obligation of the mortgagor, receiver, or mortgagee in 
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possession prior to the confirmation of sale; and (iii) 
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maintain the mortgaged real estate in compliance with the 
9
requirements of State and local law.  Nothing in this subsection 
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shall prohibit the holder or purchaser and an occupant from 
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entering into a new lease agreement that changes their 
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respective utility obligations."; and
 
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on page 14, by replacing lines 11 through 17 with the 
14
following:
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        "(4) In a case of foreclosure where the occupant tenant 
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    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 
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    been provided to the occupant tenant, or where the occupant 
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    tenant has made good-faith efforts to make rental payments 
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    in order to keep current, any order of possession must 
21
    allow the occupant tenant to retain possession of"; and
 
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by replacing lines 21 through 26 of page 14 and line 1 of page 
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15 with the following:
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        "the occupant, or through the duration of his or her 
 


 






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    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 
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    deed, or purchaser at the judicial sale who asserts that 
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    the occupant is not current in rent at the time the 
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    supplemental petition is filed shall attach an affidavit to 
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    that effect to the supplemental petition.  If the occupant 
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    the tenant,  or (ii)  through the duration of his or her 
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    lease, whichever is shorter. If the tenant has been given 
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    timely written notice of to whom and where the rent is to 
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    be paid, this item (4) shall only apply if the occupant 
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    tenant continues to pay his or her rent in full during the 
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    120-day period or has made good-faith efforts to pay the 
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    rent in full during that period.
No 
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    mortgagee-in-possession,"; and
 
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by replacing lines 8 through  26







of page 15 and lines 1 and 2 of 
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page   16 with the following:
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"has been properly served upon the occupant tenant."; and
 
19
by replacing lines 10 through  26







of page 17 and line 1 of page   
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18 with the following:
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        "(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 
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    addresses of all occupants of dwelling units of the 
 


 






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    mortgaged real estate.
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        (2) Within 21 days of taking possession of the 
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    mortgaged real estate, the mortgagee in possession shall 
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    notify all known occupants of dwelling units of the 
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    mortgaged real estate, including any occupants identified 
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    as a result of the good faith effort required under this 
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    subsection, that he or she has taken possession of the 
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    mortgaged real estate.  The notice shall be in writing and 
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    shall:
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            (i) identify the occupant being served by name;
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            (ii) inform the occupant that the mortgaged real 
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        estate is the subject of a foreclosure action and that 
13
        control of the mortgaged real estate has changed;
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            (iii) provide the name, address, and telephone 
15
        number of the individual or entity whom occupants may 
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        contact with concerns about the mortgaged real estate 
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        or to request repairs of that property; 
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            (iv) include the following language, or language 
19
        that is substantially similar:
20
            "This is NOT a notice to vacate the premises.  You 
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        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
 






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on page 18, line 2, by replacing "(iv)" with "(v)"; and
 






 


 






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on page 18, line 4, by replacing "(2)" with "(3)"; and
 






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on page 18, line 4, by replacing "item (1)" with "item (2)"; 
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and
 
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on page 18, line 6, by inserting "known" before "occupant"; and
 
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on page 18, line 7, by inserting "who is" after "older,"; and
 






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


 






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    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 
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    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 
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    mortgagee in possession is now operating and managing the 
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    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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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
 
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by replacing lines 14 through  26







of page 23 and lines 1 through 
15
3 of page   24 with the following:
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        "(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.
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        (2) Within 21 days of appointment, the receiver shall 
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    notify all occupants of dwelling units of the mortgaged 
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    real estate that he or she has been appointed receiver of 
22
    the mortgaged real estate, including any occupants 
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    identified as a result of the good faith effort under this 
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    subsection.  Such notice shall be in writing and shall:
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            (i) identify the occupant being served by name;
 


 






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            (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
 




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on page 24, by replacing lines 12 through 25 with the 
21
following:
 


 






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    "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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    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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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.".