Rep. Luis Arroyo

Filed: 3/27/2012

 

 


 

 


 
09700HB5453ham001LRB097 14125 AJO 68082 a

1
AMENDMENT TO HOUSE BILL 5453

2    AMENDMENT NO. ______. Amend House Bill 5453 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Vacant Building in Foreclosure Responsibility Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Owner" means any person who alone, jointly or severally
8with others: (i) has legal title to any real estate with or
9without accompanying actual possession of the real estate; or
10(ii) is a mortgagee who holds a mortgage on the real estate, or
11is an assignee or agent of the mortgagee.
12    "Real estate" has the meaning ascribed to that term in
13Section 15-1213 of the Code of Civil Procedure.
14    "Mortgage" means any consensual lien created by a written
15instrument which grants or retains an interest in real estate
16to secure a debt or other obligation. The term includes,

 

 

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1without limitation: (i) mortgages securing reverse mortgage
2loans; (ii) mortgages securing revolving credit loans; (iii)
3every deed conveying real estate, although an absolute
4conveyance in its terms, which shall have been intended only as
5a security in the nature of a mortgage; and (iv) equitable
6mortgages. The term does not include: (i) a mechanics or
7materialman lien; (ii) a judgment; (iii) a receiver's
8certificate, or (iv) a tax lien.
9    "Mortgagee" means: (i) the holder of an indebtedness, the
10obligee of a non-monetary obligation secured by a mortgage, any
11assignee of the mortgage, or any person designated or
12authorized to act on behalf of a holder; (ii) any person or
13entity that previously initiated a foreclosure of the vacant
14residential property or obtained a foreclosure judgment
15against the vacant residential property if the deed to the
16vacant residential property has not been transferred to the
17purchaser at the judicial sale; (iii) any person claiming
18through a mortgagee as successor; and (iv) any person
19identified as such in a recorded document which has not been
20released, assigned, or superseded of record.
21    "Mortgagor" means (i) the person whose interest in the real
22estate is the subject of the mortgage and (ii) any person
23claiming through a mortgagor as successor. Where a mortgage is
24executed by a trustee of a land trust, the mortgagor is the
25trustee and not the beneficiary or beneficiaries.
26    "Vacant building" means a structure located on real estate

 

 

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1which is lacking habitual presence of human beings who have a
2legal right to be on the premises, or at which substantially
3all lawful business, construction operations, or residential
4occupancy has ceased, or which is substantially devoid of
5content. In determining whether a building is vacant, it is
6relevant to consider, among other factors, the percentage of
7the overall square footage of the building or floor to the
8occupied space, the condition and value of any items in the
9building and the presence of rental or for sale signs on the
10property; provided that a residential property shall not be
11deemed vacant if it has been used as a residence by a person
12entitled to possession for a period of at least 3 months within
13the previous 9 months and a person entitled to possession
14intends to resume residing at the property; and further
15provided that multi-family residential property containing 10
16or more dwelling units shall be considered vacant when 90%
17percent or more of the dwelling units are unoccupied.
 
18    Section 10. Vacant building in foreclosure; owner
19registration statement.
20    (a) The owner and the mortgagee of any vacant building
21located on real estate that is the subject of a foreclosure
22proceeding shall each, within 30 days after the foreclosure
23proceeding commenced or within 30 days after assuming ownership
24of a vacant building, whichever is sooner, file a registration
25statement for that building with the applicable municipality or

 

 

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1county on forms provided by the applicable municipality or
2county for that purpose. If a vacant building is known to exist
3within the zoning jurisdiction of a municipality, an owner or
4mortgagee need not report that building to the county in which
5the building is located. The registration shall remain valid
6for 6 months from the date of registration. The owner and
7mortgagee are each required to renew the registration for
8successive 6-month periods as long as the building remains
9vacant and each shall pay a registration or renewal fee in the
10amount prescribed in Section 20 for each registered building;
11however, all eleemosynary, religious, educational, benevolent,
12or charitable associations organized on a not-for-profit basis
13and all governmental agencies are exempt from the payment of
14the registration fee.
15    (b) In addition to other information required by the
16applicable municipality or county, the registration statement
17shall include the name, street address, and telephone number of
18a natural person 21 years of age or older who is designated by
19the owner or the mortgagee as the authorized agent for
20receiving notices of violations and for receiving process, in
21any court proceeding or administrative enforcement proceeding,
22on behalf of the owner or the mortgagee in connection with the
23enforcement of this Act. This person must maintain an office in
24the county in which the property is located or must actually
25reside within the county. An owner or a mortgagee who is a
26natural person and who meets the requirements of this

 

 

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1subsection as to location of residence or office may designate
2himself or herself as agent. By designating an authorized agent
3under the provisions of this subsection, the owner or the
4mortgagee is consenting to receive any and all notices of
5violations concerning the registered building and all process
6in any court proceeding or administrative enforcement
7proceeding brought to enforce provisions concerning the
8registered building by service of the notice or process on the
9authorized agent. Any owner or mortgagee who has designated an
10authorized agent under the provisions of this subsection shall
11be deemed to consent to the continuation of the agent's
12designation for the purposes of this Act until the owner or
13mortgagee notifies the applicable municipality or county in
14writing of a change of authorized agent or until the owner or
15the mortgagee files a new registration statement.
16    (c) The owner or mortgagee shall notify the municipality or
17county, within 20 days, of any change in the registration
18information by filing an amended registration statement on a
19form provided by the applicable municipality or county for that
20purpose. The registration statement shall be deemed prima facie
21proof of the statements therein contained in any administrative
22or court proceeding against the owner or the mortgagee of the
23building instituted by the applicable municipality or county.
24    (d) After filing a registration statement, the building
25owner and mortgagee shall each provide access to the applicable
26municipality or county to conduct an exterior and interior

 

 

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1inspection of the building to determine compliance with this
2Act and the applicable municipal or county ordinances,
3following reasonable notice, during the period covered by the
4initial registration or any subsequent renewal.
5    (e) Any owner or mortgagee who fails to register a vacant
6building under the provisions of this Section shall further be
7deemed to consent to receive, by posting at the building, any
8and all notices of any violation of this Act or of any
9violation of an applicable municipal or county ordinance and
10all process in any court proceeding or administrative
11proceeding brought to enforce this Act or an applicable
12municipal or county ordinance concerning the building.
13    (f) The applicable municipality or county may receive
14information about a building being vacant and in foreclosure
15from the United States Postal Service or any person, lender,
16real estate broker, or title insurance company.
 
17    Section 15. Registration and renewal fees.
18    (a) The registration fee for each registered vacant
19building is $250.
20    (b) The renewal fee for each registered vacant building is
21$250.
22    (c) The registration and renewal fee shall be paid to the
23municipality or county receiving the registration or renewal
24from an owner or mortgagee.
25    (d) Fifteen percent of each registration or renewal fee

 

 

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1shall be paid by the municipality or county, as the case may
2be, to the Vacant Residential Building Database Fund in the
3county treasury of the county.
 
4    Section 20. Vacant building access. After filing a
5registration statement, the building owner and mortgagee shall
6each provide, following reasonable notice, access to the
7municipality or the county in which the property is located to
8conduct an exterior and interior inspection of the building to
9determine compliance with this Act or with the applicable
10municipal or county ordinance during the period covered by the
11initial registration or any subsequent renewal.
 
12    Section 25. Minimum requirements for vacant buildings. In
13addition to any other applicable municipal or county ordinance
14requirements, each vacant building must be kept in compliance
15with the following requirements for as long as the building
16remains vacant:
17    (1) Real estate maintenance standards. The real estate the
18building stands on and the surrounding public way shall be
19maintained as follows:
20        (A) all grass and weeds on the premises including
21    abutting sidewalks, gutters, and alleys shall be kept below
22    10 inches in height, and all dead or broken trees, tree
23    limbs, or shrubbery shall be cut and removed from the
24    premises;

 

 

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1        (B) junk, rubbish, waste, and any material that creates
2    a health, safety, or fire hazard shall not be permitted to
3    accumulate;
4        (C) no portion of the real estate nor any structure,
5    vehicle, receptacle, or object on the real estate shall be
6    maintained or operated in any manner that causes or
7    produces any health or safety hazard;
8        (D) the real estate shall be maintained so that water
9    does not accumulate or stand on the ground; and
10        (E) all fences and gates shall be maintained in sound
11    condition and in good repair.
12    (2) Exterior maintenance standards. The exterior of the
13building shall be enclosed, secured, and maintained as follows:
14        (A) foundations, basements, cellars, and crawlspaces
15    shall be maintained in sound and watertight condition
16    adequate to support the building, and shall be protected
17    against the entry of rodents or other animals;
18        (B) exterior walls shall be free of holes, breaks, and
19    any other conditions which might admit rain or dampness to
20    the interior and shall be protected against the entry of
21    rodents or other animals;
22        (C) exterior windows and doors shall be maintained in
23    sound condition and good repair;
24        (D) the roof shall be adequately supported, and shall
25    be maintained in weather-tight condition; the gutters,
26    downspouts, scuppers, and appropriate flashing shall be in

 

 

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1    good repair and adequate to remove the water from the
2    building or structure;
3        (E) chimneys and flues shall be kept in sound,
4    functional, and weather-tight condition;
5        (F) every outside stair, porch, stoop, deck, veranda,
6    balcony, and walk shall be maintained in sound condition
7    for its purpose; and
8        (G) all exit areas shall have continuous exterior
9    lighting from dusk to dawn which may be provided by
10    battery-powered or solar-powered lighting.
11    (3) Interior maintenance standards. The interior of any
12building shall be maintained as follows:
13        (A) it is prohibited to accumulate or permit the
14    accumulation of junk, trash, or any other materials in such
15    a manner that may produce any health, fire, or safety
16    hazard on the premises;
17        (B) every foundation, roof, floor, wall, stair,
18    ceiling, and any other structural support shall be safe and
19    capable of supporting the loads of normal use;
20        (C) any plumbing fixtures shall be maintained with no
21    leaking pipes; and all pipes for water shall be either
22    completely drained or heated to resist being frozen;
23        (D) every exit door shall be secured with an internal
24    deadbolt lock and be capable of being opened from the
25    inside easily and without the use of a key or special
26    knowledge; and

 

 

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1        (E) every owner and mortgagee shall be responsible for
2    the extermination of insects, rodents, and other vermin in
3    or about the premises.
4    (4) Building security standards. The following standards
5apply to the securing of vacant buildings:
6        (A) all building openings shall be closed and secured
7    using secure doors, glazed windows, or commercial-quality
8    steel security panels or filled with like-kind material as
9    the surrounding wall, as applicable, to prevent entry by
10    unauthorized persons;
11        (B) at least one building entrance shall be accessible
12    from the exterior and secured with a door that is locked to
13    allow access only to authorized persons; a minimum of 2
14    exit doors shall be available to exit from the interior of
15    the building; and
16        (C) if a building has been vacant for 6 months or
17    longer, or upon any renewal of the registration statement
18    required in Section 10, the owner or mortgagee must
19    implement and provide proof satisfactory to the applicable
20    municipality or county that the building meets the
21    standards stated in this Section.
 
22    Section 30. Rules. A municipality or county may adopt
23ordinances for the administration of this Act.
 
24    Section 35. Penalties. Any owner or mortgagee who violates

 

 

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1any provision of this Act may be punished by a fine of not less
2than $500 and not more than $1,000 for each offense. Every day
3that a violation continues shall constitute a separate and
4distinct offense.
 
5    Section 90. Home rule. A home rule unit may not regulate
6vacant buildings in foreclosure in a manner less restrictive
7than the regulation by the State of vacant buildings in
8foreclosure under this Act. This Section is a limitation under
9subsection (i) of Section 6 of Article VII of the Illinois
10Constitution on the concurrent exercise by home rule units of
11powers and functions exercised by the State.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".