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Sen. David Koehler
Filed: 3/19/2015
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1 | | AMENDMENT TO SENATE BILL 1380
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2 | | AMENDMENT NO. ______. Amend Senate Bill 1380 by replacing |
3 | | everything after the enacting clause with the following:
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4 | | "Section 5. The Illinois Municipal Code is amended by |
5 | | changing Sections 11-20-15 and 11-20-15.1 as follows: |
6 | | (65 ILCS 5/11-20-15) |
7 | | Sec. 11-20-15. Lien for removal costs. |
8 | | (a) If the municipality incurs a removal cost under Section |
9 | | 11-20-7, 11-20-8, 11-20-12, or 11-20-13 with respect to any |
10 | | underlying parcel, then that cost is a lien upon that |
11 | | underlying parcel. This lien is superior to all other liens and |
12 | | encumbrances, except tax liens and as otherwise provided in |
13 | | subsection (c)
of this Section. |
14 | | (b) To perfect a lien under this Section, the municipality |
15 | | must, within one year after the removal cost is incurred, file |
16 | | notice of lien in the office of the recorder in the county in |
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1 | | which the underlying parcel is located or, if the underlying |
2 | | parcel is registered under the Torrens system, in the office of |
3 | | the Registrar of Titles of that county. The notice must consist |
4 | | of a sworn statement setting out: |
5 | | (1) a description of the underlying parcel that |
6 | | sufficiently identifies the parcel; |
7 | | (2) the amount of the removal cost; and |
8 | | (3) the date or dates when the removal cost was |
9 | | incurred by the municipality. |
10 | | If, for any one parcel, the municipality engaged in any |
11 | | removal activity on more than one occasion during the course of |
12 | | one year, then the municipality may combine any or all of the |
13 | | costs of each of those activities into a single notice of lien. |
14 | | (c) A lien under this Section is not valid as to: (i) any |
15 | | purchaser whose rights in and to the underlying parcel arose |
16 | | after the removal activity but before the filing of the notice |
17 | | of lien; or (ii) any mortgagee, judgment creditor, or other |
18 | | lienor whose rights in and to the underlying parcel arose |
19 | | before the filing of the notice of lien. |
20 | | (d) The removal cost is not a lien on the underlying parcel |
21 | | unless a notice is personally served on, or sent by certified |
22 | | mail to, the person to whom was sent the tax bill for the |
23 | | general taxes on the property for the taxable year immediately |
24 | | preceding the removal activities. The notice must be delivered |
25 | | or sent after the removal activities have been performed, and |
26 | | it must: (i) state the substance of this Section and the |
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1 | | substance of any ordinance of the municipality implementing |
2 | | this Section; (ii) identify the underlying parcel, by common |
3 | | description; and (iii) describe the removal activity. |
4 | | (e) A lien under this Section may be enforced by |
5 | | proceedings to foreclose as in case of mortgages or mechanics' |
6 | | liens. An action to foreclose a lien under this Section must be |
7 | | commenced within 2 years after the date of filing notice of |
8 | | lien. |
9 | | (f) Any person who performs a removal activity by the |
10 | | authority of the municipality may, in his or her own name, file |
11 | | a lien and foreclose on that lien in the same manner as a |
12 | | municipality under this Section. |
13 | | (g) A failure to file a foreclosure action does not, in any |
14 | | way, affect the validity of the lien against the underlying |
15 | | parcel. |
16 | | (h) Upon payment of the lien cost by the owner of the |
17 | | underlying parcel after notice of lien has been filed, the |
18 | | municipality (or its agent under subsection (f)) shall release |
19 | | the lien, and the release may be filed of record by the owner |
20 | | at his or her sole expense as in the case of filing notice of |
21 | | lien. |
22 | | (h-5) In any case where a municipality has obtained a lien |
23 | | under subsection (a), the municipality may also bring an action |
24 | | for a money judgment against the owner or owners of the real |
25 | | estate in the amount of the lien in the same manner as provided |
26 | | for bringing causes of action in Article II of the Code of |
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1 | | Civil Procedure and, upon obtaining a judgment, file a judgment |
2 | | lien against all of the real estate of the owner or owners and |
3 | | enforce that lien as provided for in Article XII of the Code of |
4 | | Civil Procedure. |
5 | | (i) For the purposes of this Section: |
6 | | "Lien cost" means the removal cost and the filing costs for |
7 | | any notice of lien under subsection (b). |
8 | | "Removal activity" means any activity for which a removal |
9 | | cost was incurred. |
10 | | "Removal cost" means a removal cost as defined under |
11 | | Section 11-20-7, 11-20-8, 11-20-12, or 11-20-13. |
12 | | "Underlying parcel" means a parcel of private property upon |
13 | | which a removal activity was performed. |
14 | | "Year" means a 365-day period. |
15 | | (j) This Section applies only to liens filed after August |
16 | | 14, 2009 (the effective date of Public Act 96-462).
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17 | | (k) This Section shall not apply to a lien filed pursuant |
18 | | to Section 11-20-15.1. |
19 | | (Source: P.A. 96-462, eff. 8-14-09; 96-856, eff. 3-1-10; |
20 | | 96-1000, eff. 7-2-10.) |
21 | | (65 ILCS 5/11-20-15.1)
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22 | | Sec. 11-20-15.1. Lien for costs of removal, securing, and |
23 | | enclosing on abandoned residential property. |
24 | | (a) If the municipality elects to incur a removal cost |
25 | | pursuant to subsection (d) of Section 11-20-7, subsection (d) |
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1 | | of Section 11-20-8, subsection (d) of Section 11-20-12, or |
2 | | subsection (e) of Section 11-20-13, or a securing or enclosing |
3 | | cost pursuant to Section 11-31-1.01 with respect to an |
4 | | abandoned residential property, then that cost is a lien upon |
5 | | the underlying parcel of that abandoned residential property. |
6 | | This lien is superior to all other liens and encumbrances, |
7 | | except tax liens and as otherwise provided in this Section. |
8 | | (b) To perfect a lien under this Section, the municipality |
9 | | must, within one year after the cost is incurred for the |
10 | | activity, file notice of the lien in the office of the recorder |
11 | | in the county in which the abandoned residential property is |
12 | | located or, if the abandoned residential property is registered |
13 | | under the Torrens system, in the office of the Registrar of |
14 | | Titles of that county, a sworn statement setting out: |
15 | | (1) a description of the abandoned residential |
16 | | property that sufficiently identifies the parcel; |
17 | | (2) the amount of the cost of the activity; |
18 | | (3) the date or dates when the cost for the activity |
19 | | was incurred by the municipality; and |
20 | | (4) a statement that the lien has been filed pursuant |
21 | | to subsection (d) of Section 11-20-7, subsection (d) of |
22 | | Section 11-20-8, subsection (d) of Section 11-20-12, |
23 | | subsection (e) of Section 11-20-13, or Section 11-31-1.01, |
24 | | as applicable. |
25 | | If, for any abandoned residential property, the |
26 | | municipality engaged in any activity on more than one occasion |
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1 | | during the course of one year, then the municipality may |
2 | | combine any or all of the costs of each of those activities |
3 | | into a single notice of lien. |
4 | | (c) To enforce a lien pursuant to this Section, the |
5 | | municipality must maintain contemporaneous records that |
6 | | include, at a minimum: (i) a dated statement of finding by the |
7 | | municipality that the property for which the work is to be |
8 | | performed has become abandoned residential property, which |
9 | | shall include (1) the date when the property was first known or |
10 | | observed to be unoccupied by any lawful occupant or occupants, |
11 | | (2) a description of the actions taken by the municipality to |
12 | | contact the legal owner or owners of the property identified on |
13 | | the recorded mortgage, or, if known, any agent of the owner or |
14 | | owners, including the dates such actions were taken, and (3) a |
15 | | statement that no contacts were made with the legal owner or |
16 | | owners or their agents as a result of such actions, (ii) a |
17 | | dated certification by an authorized official of the |
18 | | municipality of the necessity and specific nature of the work |
19 | | to be performed, (iii) a copy of the agreement with the person |
20 | | or entity performing the work that includes the legal name of |
21 | | the person or entity, the rate or rates to be charged for |
22 | | performing the work, and an estimate of the total cost of the |
23 | | work to be performed, (iv) detailed invoices and payment |
24 | | vouchers for all payments made by the municipality for such |
25 | | work, and (v) a statement as to whether the work was engaged |
26 | | through a competitive bidding process, and if so, a copy of all |
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1 | | proposals submitted by the bidders for such work. |
2 | | (d) A lien under this Section shall be enforceable |
3 | | exclusively at the hearing for confirmation of sale of the |
4 | | abandoned residential property that is held pursuant to |
5 | | subsection (b) of Section 15-1508 of the Code of Civil |
6 | | Procedure and shall be limited to a claim of interest in the |
7 | | proceeds of the sale and subject to the requirements of this |
8 | | Section. Any mortgagee who holds a mortgage on the property, or |
9 | | any beneficiary or trustee who holds a deed of trust on the |
10 | | property, may contest the lien or the amount of the lien at any |
11 | | time during the foreclosure proceeding upon motion and notice |
12 | | in accordance with court rules applicable to motions generally. |
13 | | Grounds for forfeiture of the lien or the superior status of |
14 | | the lien granted by subsection (a) of this Section shall |
15 | | include, but not be limited to, a finding by the court that: |
16 | | (i) the municipality has not complied with subsection (b) or |
17 | | (c) of this Section, (ii) the scope of the work was not |
18 | | reasonable under the circumstances, (iii) the work exceeded the |
19 | | authorization for the work to be performed under subsection (a) |
20 | | of Section 11-20-7, subsection (a) of Section 11-20-8, |
21 | | subsection (a) of Section 11-20-12, subsection (a) of Section |
22 | | 11-20-13, or subsection (a) of Section 11-31-1.01, as |
23 | | applicable, or (iv) the cost of the services rendered or |
24 | | materials provided was not commercially reasonable. Forfeiture |
25 | | of the superior status of the lien otherwise granted by this |
26 | | Section shall not constitute a forfeiture of the lien as a |
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1 | | subordinate lien. |
2 | | (e) Upon payment of the amount of a lien filed under this |
3 | | Section by the mortgagee, servicer, owner, or any other person, |
4 | | the municipality shall release the lien, and the release may be |
5 | | filed of record by the person making such payment at the |
6 | | person's sole expense as in the case of filing notice of lien. |
7 | | (f) Notwithstanding any other provision of this Section, a |
8 | | municipality may not file a lien pursuant to this Section for |
9 | | activities performed pursuant to Section 11-20-7, Section |
10 | | 11-20-8, Section 11-20-12, Section 11-20-13, or Section |
11 | | 11-31-1.01, if: (i) the mortgagee or servicer of the abandoned |
12 | | residential property has provided notice to the municipality |
13 | | that the mortgagee or servicer has performed or will perform |
14 | | the remedial actions specified in the notice that the |
15 | | municipality otherwise might perform pursuant to subsection |
16 | | (d) of Section 11-20-7, subsection (d) of Section 11-20-8, |
17 | | subsection (d) of Section 11-20-12, subsection (e) of Section |
18 | | 11-20-13, or Section 11-31-1.01, provided that the remedial |
19 | | actions specified in the notice have been performed or are |
20 | | performed or initiated in good faith within 30 days of such |
21 | | notice; or (ii) the municipality has provided notice to the |
22 | | mortgagee or servicer of a problem with the property requiring |
23 | | the remedial actions specified in the notice that the |
24 | | municipality otherwise would perform pursuant to subsection |
25 | | (d) of Section 11-20-7, subsection (d) of Section 11-20-8, |
26 | | subsection (d) of Section 11-20-12, subsection (e) of Section |
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1 | | 11-20-13, or Section 11-31-1.01, and the mortgagee or servicer |
2 | | has performed or performs or initiates in good faith the |
3 | | remedial actions specified in the notice within 30 days of such |
4 | | notice. |
5 | | (g) This Section and subsection (d) of Section 11-20-7, |
6 | | subsection (d) of Section 11-20-8, subsection (d) of Section |
7 | | 11-20-12, subsection (e) of Section 11-20-13, or Section |
8 | | 11-31-1.01 shall apply only to activities performed, costs |
9 | | incurred, and liens filed after the effective date of this |
10 | | amendatory Act of the 96th General Assembly. |
11 | | (h) For the purposes of this Section and subsection (d) of |
12 | | Section 11-20-7, subsection (d) of Section 11-20-8, subsection |
13 | | (d) of Section 11-20-12, subsection (e) of Section 11-20-13, or |
14 | | Section 11-31-1.01: |
15 | | "Abandoned residential property" means any type of |
16 | | permanent residential dwelling unit, including detached single |
17 | | family structures, and townhouses, condominium units and |
18 | | multifamily rental apartments covering the entire property, |
19 | | and manufactured homes treated under Illinois law as real |
20 | | estate and not as personal property, that has been unoccupied |
21 | | by any lawful occupant or occupants for at least 90 days, and |
22 | | for which after such 90 day period, the municipality has made |
23 | | good faith efforts to contact the legal owner or owners of the |
24 | | property identified on the recorded mortgage, or, if known, any |
25 | | agent of the owner or owners, and no contact has been made. A |
26 | | property for which the municipality has been given notice of |
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1 | | the order of confirmation of sale pursuant to subsection (b-10) |
2 | | of Section 15-1508 of the Code of Civil Procedure shall not be |
3 | | deemed to be an abandoned residential property for the purposes |
4 | | of subsection (d) of Section 11-20-7, subsection (d) of Section |
5 | | 11-20-8, subsection (d) of Section 11-20-12, subsection (e) of |
6 | | Section 11-20-13, and Section 11-31-1.01 of this Code. |
7 | | "MERS program" means the nationwide Mortgage Electronic |
8 | | Registration System approved by Fannie Mae, Freddie Mac, and |
9 | | Ginnie Mae that has been created by the mortgage banking |
10 | | industry with the mission of registering every mortgage loan in |
11 | | the United States to lawfully make information concerning each |
12 | | residential mortgage loan and the property securing it |
13 | | available by Internet access to mortgage originators, |
14 | | servicers, warehouse lenders, wholesale lenders, retail |
15 | | lenders, document custodians, settlement agents, title |
16 | | companies, insurers, investors, county recorders, units of |
17 | | local government, and consumers. |
18 | | (i) Any entity or person who performs a removal, securing, |
19 | | or enclosing activity pursuant to the authority of a |
20 | | municipality under subsection (d) of Section 11-20-7, |
21 | | subsection (d) of Section 11-20-8, subsection (d) of Section |
22 | | 11-20-12, subsection (e) of Section 11-20-13, or Section |
23 | | 11-31-1.01, may, in its, his, or her own name, file a lien |
24 | | pursuant to subsection (b) of this Section and appear in a |
25 | | foreclosure action on that lien pursuant to subsection (d) of |
26 | | this Section in the place of the municipality, provided that |
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1 | | the municipality shall remain subject to subsection (c) of this |
2 | | Section, and such party shall be subject to all of the |
3 | | provisions in this Section as if such party were the |
4 | | municipality. |
5 | | (i-5) All amounts received by the municipality for costs |
6 | | incurred pursuant to this Section
for which the municipality |
7 | | has been reimbursed under Section 7.31 of the Illinois Housing |
8 | | Development Act
shall be remitted to the State Treasurer for |
9 | | deposit into the Abandoned Residential Property
Municipality |
10 | | Relief Fund. |
11 | | (j) If prior to subsection (d) of Section 11-20-7, |
12 | | subsection (d) of Section 11-20-8, subsection (d) of Section |
13 | | 11-20-12, and subsection (e) of Section 11-20-13 becoming |
14 | | inoperative a lien is filed pursuant to any of those |
15 | | subsections, then the lien shall remain in full force and |
16 | | effect after the subsections have become inoperative, subject |
17 | | to all of the provisions of this Section. If prior to the |
18 | | repeal of Section 11-31-1.01 a lien is filed pursuant to |
19 | | Section 11-31-1.01, then the lien shall remain in full force |
20 | | and effect after the repeal of Section 11-31-1.01, subject to |
21 | | all of the provisions of this Section.
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22 | | (k) In any case where a municipality has obtained a lien |
23 | | under subsection (a), the municipality may also bring an action |
24 | | for a money judgment against the owner or owners of the real |
25 | | estate in the amount of the lien in the same manner as provided |
26 | | for bringing causes of action in Article II of the Code of |