99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3514

 

Introduced , by Rep. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Vacancy Fraud Investigative Unit Act. Grants the county board of a county the power to establish, by ordinance or resolution, a vacancy fraud investigative unit to investigate whether the owner of any vacant property is actively attempting to lease, sell, or alter the vacant property. Provides that the vacancy fraud investigative unit (i) may not investigate a vacant property unless that property has received vacancy relief for 2 consecutive tax years and the first of those tax years is no more than 5 years prior to the current tax year and (ii) must notify the owner of the vacant property that an investigation has been initiated and must give the owner an opportunity to be heard and to present relevant evidence. Contains provisions concerning notice requirements; certain powers the vacancy fraud investigative unit shall have during the course of an investigation; determinations as to whether the owner of the vacant property is actively attempting to lease, sell, or alter the vacant property; the time period by which the vacancy fraud investigative unit must conclude all investigations; the authority of the chief county assessment officer upon receiving an investigative report from the vacancy fraud investigative unit that an owner of vacant property is not actively attempting to sell, lease, or alter the vacant property; and other matters. Effective immediately.


LRB099 09599 HLH 29808 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3514LRB099 09599 HLH 29808 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Vacancy Fraud Investigative Unit Act.
 
6    Section 5. Public policy. In recognition of the severe
7economic circumstances of taxpayers and taxing districts
8across the State of Illinois, the General Assembly finds it
9necessary to curb the use of property tax relief enacted by
10several counties which lowers a property's assessment due to it
11being vacant. Several owners of vacant properties do not
12actively seek tenants, yet continue to receive property tax
13relief for the term of the property's vacancy. This practice
14has led to neighborhoods blighted with vacant commercial or
15industrial properties. The General Assembly finds that this
16practice is against public policy, burdens homeowners and
17actively operating businesses, and lessens taxing districts'
18tax base.
 
19    Section 10. Definitions. As used in this Act:
20    "Vacancy relief" means a decrease in assessed value, a
21decrease in market value, or an abatement of taxes by a chief
22county assessment officer, a board of review, or a taxing

 

 

HB3514- 2 -LRB099 09599 HLH 29808 b

1district under any county or taxing district ordinance,
2resolution, or policy granting such a decrease to property that
3is vacant.
4    "Vacant property" means property that is receiving vacancy
5relief. A property that receives vacancy relief on only a
6portion of the property is still considered "vacant property."
 
7    Section 15. Vacancy fraud investigative unit; authority;
8factors to consider.
9    (a) The county board shall have the power to establish, by
10ordinance or resolution, a vacancy fraud investigative unit.
11The vacancy fraud investigative unit shall have the power to
12investigate whether the owner of any vacant property is
13actively attempting to lease, sell, or alter the vacant
14property.
15    (b) The vacancy fraud investigative unit may not
16investigate a vacant property unless that property has received
17vacancy relief for 2 consecutive tax years and the first of
18those tax years is no more than 5 years prior to the current
19tax year.
20    (c) The vacancy fraud investigative unit must notify the
21owner of the vacant property that an investigation has been
22initiated and must give the owner an opportunity to be heard
23and to present relevant evidence. Notice shall be provided by
24first class mail, postage prepaid, and shall be mailed to the
25same address that the vacant property's property tax bill is

 

 

HB3514- 3 -LRB099 09599 HLH 29808 b

1mailed.
2    (d) During the course of an investigation, the vacancy
3fraud investigative unit shall have the following powers:
4        (1) To interview any relevant person that the vacancy
5    fraud investigative unit determines would be helpful in its
6    investigation. This paragraph shall not be construed to
7    grant the vacancy fraud investigative unit the power to
8    subpoena or depose any real person.
9        (2) To subpoena any relevant documents from public and
10    private sources that the vacancy fraud investigative unit
11    determines would be helpful in its investigation.
12        (3) To inspect the vacant property if the vacancy fraud
13    investigative unit determines an inspection would be
14    helpful in its investigation. The vacancy fraud
15    investigative unit may not inspect the vacant property
16    unless a notice is sent to the same address where the
17    vacant property's property tax bill is mailed. The notice
18    must be sent at least 10 business days prior to the
19    inspection, but no more than 50 business days prior to the
20    inspection. The notice shall include the date and time of
21    the inspection. The notice shall direct the owner of the
22    vacant property, or his or her designee, to appear at the
23    vacant property at the designated date and time, or to
24    contact the vacancy fraud investigative unit to reschedule
25    the inspection.
26    (e) In determining whether the owner of vacant property is

 

 

HB3514- 4 -LRB099 09599 HLH 29808 b

1actively attempting to sell, lease, or alter the vacant
2property, the vacancy fraud investigative unit may use the
3following factors:
4        (1) whether there is a sign on the vacant property
5    advertising that it is for sale or for lease;
6        (2) whether the vacant property is advertised for sale
7    or for lease in a newspaper of general circulation where
8    the vacant property is located;
9        (3) whether the vacant property is advertised for sale
10    or for lease on the internet, and whether potential buyers
11    or tenants are reasonably able to access the internet
12    listing;
13        (4) whether the owner of the vacant property has
14    contracted for the services of an Illinois licensed real
15    estate professional for the purpose of selling or leasing
16    the vacant property;
17        (5) whether any advertised sale price or advertised
18    rental price is at a reasonable market level;
19        (6) whether a contract for sale or lease is pending;
20        (7) whether the vacant property is subsequently sold or
21    leased, and the amount of time that passed from the
22    original vacancy to the sale or lease date;
23        (8) whether the owner has applied for and received
24    demolition or construction permits for the vacant
25    property; and
26        (9) any other factors the vacancy fraud investigative

 

 

HB3514- 5 -LRB099 09599 HLH 29808 b

1    unit deems necessary to determine if the owner of any
2    vacant property is actively attempting to lease, sell, or
3    alter the vacant property.
4    For purposes of paragraphs (1), (2), and (3) of this
5subsection (e), any signs, newspaper advertisements, or
6internet advertisements shall contain a phone number. If the
7phone number does not connect to a person who can facilitate
8the purchase or lease of the vacant property, the vacancy fraud
9investigative unit may determine that the sign, newspaper
10advertisement, or internet advertisement does not exist.
11    (f) After concluding an investigation, the vacancy fraud
12investigative unit shall make a determination as to whether the
13owner of the vacant property is actively attempting to lease,
14sell, or alter the vacant property. Such a determination shall
15take into consideration all the evidence collected by the
16vacancy fraud investigative unit. If the evidence shows, by a
17preponderance of the evidence, that the owner of the vacant
18property is not actively attempting to sell, lease, or alter
19the vacant property, then the vacancy fraud investigative unit
20shall notify the chief county assessment officer of its
21determination. The vacancy fraud investigative unit shall
22notify the owner of the vacant property of its determination in
23either case.
24    (g) The vacancy fraud investigative unit must conclude all
25investigations under this Act within one year from the date the
26original notice required under subsection (c) of this Section

 

 

HB3514- 6 -LRB099 09599 HLH 29808 b

1was mailed.
 
2    Section 20. Chief county assessment officer's authority.
3    (a) Upon receiving an investigative report from the vacancy
4fraud investigative unit with a determination that an owner of
5vacant property is not actively attempting to sell, lease, or
6alter the vacant property, the chief county assessment officer
7may do any of the following:
8        (1) prohibit the vacant property from receiving any
9    vacancy relief until it is subsequently sold or leased;
10        (2) require the payment of back taxes for any vacancy
11    relief the vacant property received while the owner of the
12    vacant property was not actively attempting to sell, lease,
13    or alter the vacant property;
14        (3) require the payment of interest on any back taxes
15    sought under paragraph (2); any interest imposed shall not
16    exceed 10% per annum; and
17        (4) in the case of a property owner who has been
18    penalized under this Section 2 times or more within the
19    past 5 years, impose a penalty not to exceed 25% of the
20    amount of back taxes sought under paragraph (2).
21    (b) The unpaid taxes shall be paid to the appropriate
22taxing districts. Interest and penalties shall be paid to the
23chief county assessment officer's office to cover the costs
24associated with administering the provisions of this Act and
25with educating the public on the provisions of this Act.
 

 

 

HB3514- 7 -LRB099 09599 HLH 29808 b

1    Section 99. Effective date. This Act takes effect upon
2becoming law.