Full Text of HB4834 102nd General Assembly
HB4834 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB4834 Introduced 1/27/2022, by Rep. Chris Bos SYNOPSIS AS INTRODUCED: |
| 35 ILCS 200/15-174 | | 35 ILCS 200/15-174.5 new | |
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Amends the Property Tax Code. Provides that the community stabilization assessment freeze pilot program is extended until June 30, 2039 (currently, June 30, 2029). Removes a requirement that the community stabilization assessment freeze pilot program applies only to parcels located in a targeted area. Removes a requirement that there must be an existing residential dwelling structure of no more than 6 units on the parcel that was unoccupied at the time of conveyance for a minimum of 6 months, or that the parcel was ordered by a court to be deconverted. Provides that, if a countywide voter referendum establishing a community stabilization freeze is adopted, then the chief county assessment officer of the county must make the reduction provided by law. Contains provisions concerning referendum requirements. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section and 15-174 and by adding Section 15-174.5 as follows: | 6 | | (35 ILCS 200/15-174) | 7 | | Sec. 15-174. Community stabilization assessment freeze | 8 | | pilot program. | 9 | | (a) Beginning January 1, 2015 and ending June 30, 2039 | 10 | | June 30, 2029 , the chief county assessment officer of any | 11 | | county may reduce , or if the community stabilization freeze is | 12 | | adopted by countywide voter referendum as provided in Section | 13 | | 15-174.5, the chief county assessment officer of the county | 14 | | must reduce, the assessed value of improvements to residential | 15 | | real property in accordance with subsection (b) for 10 taxable | 16 | | years after the improvements are put in service, if and only if | 17 | | all of the following factors have been met: | 18 | | (1) the improvements are residential; | 19 | | (2) the parcel was purchased or otherwise conveyed to | 20 | | the taxpayer after January 1 of the taxable year and that | 21 | | conveyance was not a tax sale as required under the | 22 | | Property Tax Code; | 23 | | (3) (blank); the parcel is located in a targeted area; |
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| 1 | | (4) for single family homes, the taxpayer occupies the | 2 | | improvements on the parcel as his or her primary | 3 | | residence; for residences of one to 6 units that will not | 4 | | be owner-occupied, the taxpayer replaces 2 primary | 5 | | building systems as outlined in this Section; | 6 | | (5) the transfer from the holder of the prior mortgage | 7 | | to the taxpayer was an arm's length transaction, in that | 8 | | the taxpayer has no legal relationship to the holder of | 9 | | the prior mortgage; | 10 | | (6) (blank); an existing residential dwelling | 11 | | structure of no more than 6 units on the parcel was | 12 | | unoccupied at the time of conveyance for a minimum of 6 | 13 | | months, or the parcel was ordered by a court of competent | 14 | | jurisdiction to be deconverted in accordance with the | 15 | | provisions governing distressed condominiums as provided | 16 | | in the Condominium Property Act; | 17 | | (7) the parcel is clear of unreleased liens and has no | 18 | | outstanding tax liabilities attached against it; and | 19 | | (8) the purchase price did not exceed the Federal | 20 | | Housing Administration's loan limits then in place for the | 21 | | area in which the improvement is located. | 22 | | To be eligible for the benefit
conferred by this Section, | 23 | | residential units must (i) meet local building codes, or if | 24 | | there are no local building codes, Housing Quality Standards, | 25 | | as determined by the U.S. Department of Housing and Urban | 26 | | Development from time to time and (ii) be owner-occupied or in |
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| 1 | | need of substantial rehabilitation. "Substantial | 2 | | rehabilitation" means, at a minimum, compliance with local | 3 | | building codes and the replacement or renovation of at least 2
| 4 | | primary building systems. Although the cost of each primary | 5 | | building system may vary, the combined expenditure for making | 6 | | the building compliant with local codes and replacing primary | 7 | | building systems must be at least $5 per square foot, adjusted | 8 | | by the Consumer Price Index for All Urban Consumers, as | 9 | | published annually by the U.S. Department of Labor. "Primary | 10 | | building systems", together with their related | 11 | | rehabilitations, specifically approved for this program are: | 12 | | (1) Electrical. All electrical work must comply with | 13 | | applicable codes; it may consist of a combination of any | 14 | | of the following alternatives: | 15 | | (A) installing individual equipment and appliance | 16 | | branch circuits as required by code (the minimum being | 17 | | a kitchen appliance branch circuit); | 18 | | (B) installing a new emergency service, including | 19 | | emergency lighting with all associated conduits and
| 20 | | wiring; | 21 | | (C) rewiring all existing feeder conduits ("home | 22 | | runs") from the main switchgear to apartment area
| 23 | | distribution panels; | 24 | | (D) installing new in-wall conduits for | 25 | | receptacles, switches, appliances, equipment, and
| 26 | | fixtures; |
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| 1 | | (E) replacing power wiring for receptacles, | 2 | | switches, appliances, equipment, and fixtures; | 3 | | (F) installing new light fixtures throughout the | 4 | | building including closets and central areas; | 5 | | (G) replacing, adding, or doing work as necessary | 6 | | to bring all receptacles, switches, and other
| 7 | | electrical devices into code compliance; | 8 | | (H) installing a new main service, including | 9 | | conduit, cables into the building, and main disconnect
| 10 | | switch; and | 11 | | (I) installing new distribution panels, including | 12 | | all panel wiring, terminals, circuit breakers, and all
| 13 | | other panel devices. | 14 | | (2) Heating. All heating work must comply with | 15 | | applicable codes; it may consist of a combination of any | 16 | | of the following alternatives: | 17 | | (A) installing a new system to replace one of the | 18 | | following heat distribution systems: (i) piping and | 19 | | heat radiating units, including new main line venting | 20 | | and radiator venting; or (ii) duct work, diffusers, | 21 | | and cold air returns; or (iii) any other type of | 22 | | existing heat distribution and radiation/diffusion | 23 | | components; or | 24 | | (B) installing a new system to replace one of the | 25 | | following heat generating units: (i) hot water/steam | 26 | | boiler; (ii) gas furnace; or (iii) any other type of |
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| 1 | | existing heat generating unit. | 2 | | (3) Plumbing. All plumbing work must comply with | 3 | | applicable codes. Replace all or a part of the in-wall
| 4 | | supply and waste plumbing; however, main supply risers, | 5 | | waste stacks and vents, and code-conforming waste lines | 6 | | need not be replaced. | 7 | | (4) Roofing. All roofing work must comply with | 8 | | applicable codes; it may consist of either of the | 9 | | following alternatives, separately or in combination: | 10 | | (A) replacing all rotted roof decks and | 11 | | insulation; or | 12 | | (B) replacing or repairing leaking roof membranes
| 13 | | (10% is the suggested minimum replacement of | 14 | | membrane);
restoration of the entire roof is an | 15 | | acceptable substitute for membrane replacement. | 16 | | (5) Exterior doors and windows. Replace the exterior | 17 | | doors and windows. Renovation of ornate entry doors is an | 18 | | acceptable substitute for replacement. | 19 | | (6) Floors, walls, and ceilings. Finishes must be | 20 | | replaced or covered over with new material. Acceptable | 21 | | replacement or covering materials are as follows: | 22 | | (A) floors must have new carpeting, vinyl tile, | 23 | | ceramic, refurbished wood finish, or a similar
| 24 | | substitute; | 25 | | (B) walls must have new drywall, including joint | 26 | | taping and painting; or |
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| 1 | | (C) new ceilings must be either drywall, suspended | 2 | | type, or a similar substitute. | 3 | | (7) Exterior walls. | 4 | | (A) replace loose or crumbling mortar and masonry | 5 | | with new material; | 6 | | (B) replace or paint wall siding and trim as | 7 | | needed; | 8 | | (C) bring porches and balconies to a sound | 9 | | condition; or | 10 | | (D) any combination of (A), (B), and (C). | 11 | | (8) Elevators. Where applicable, at least 4 of the | 12 | | following 7 alternatives must be accomplished: | 13 | | (A) replace or rebuild the machine room controls | 14 | | and refurbish the elevator machine (or equivalent
| 15 | | mechanisms in the case of hydraulic elevators); | 16 | | (B) replace hoistway electro-mechanical items | 17 | | including: ropes, switches, limits, buffers, levelers,
| 18 | | and deflector sheaves (or equivalent mechanisms in the | 19 | | case of hydraulic elevators); | 20 | | (C) replace hoistway wiring; | 21 | | (D) replace door operators and linkage; | 22 | | (E) replace door panels at each opening; | 23 | | (F) replace hall stations, car stations, and | 24 | | signal fixtures; or | 25 | | (G) rebuild the car shell and refinish the | 26 | | interior. |
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| 1 | | (9) Health and safety. | 2 | | (A) install or replace fire suppression systems; | 3 | | (B) install or replace security systems; or | 4 | | (C) environmental remediation of lead-based paint, | 5 | | asbestos, leaking underground storage tanks, or radon. | 6 | | (10) Energy conservation improvements undertaken to | 7 | | limit the amount of solar energy absorbed by a building's | 8 | | roof or to reduce energy use for the property, including | 9 | | any of the following activities: | 10 | | (A) installing or replacing reflective roof | 11 | | coatings (flat roofs); | 12 | | (B) installing or replacing R-38 roof insulation; | 13 | | (C) installing or replacing R-19 perimeter wall | 14 | | insulation; | 15 | | (D) installing or replacing insulated entry doors; | 16 | | (E) installing or replacing Low E, insulated | 17 | | windows; | 18 | | (F) installing or replacing low-flow plumbing | 19 | | fixtures; | 20 | | (G) installing or replacing 90% sealed combustion | 21 | | heating systems; | 22 | | (H) installing or replacing direct exhaust hot | 23 | | water heaters; | 24 | | (I) installing or replacing mechanical ventilation | 25 | | to exterior for kitchens and baths; | 26 | | (J) installing or replacing Energy Star |
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| 1 | | appliances; | 2 | | (K) installing low VOC interior paints on interior | 3 | | finishes; | 4 | | (L) installing or replacing fluorescent lighting | 5 | | in common areas; or | 6 | | (M) installing or replacing grading and | 7 | | landscaping to promote on-site water retention. | 8 | | (b) For the first 7 years after the improvements are | 9 | | placed in service, the assessed value of the improvements | 10 | | shall be reduced by an amount equal to 90% of the difference | 11 | | between the base year assessed value of the improvements and | 12 | | the assessed value of the improvements in the current taxable | 13 | | year. The property will continue to be eligible for the | 14 | | benefits under this Section in the eighth and ninth taxable | 15 | | years after the improvements are placed in service, calculated | 16 | | as follows, if and only if all of the factors in subsection (a) | 17 | | of this Section continue to be met: in the eighth taxable year, | 18 | | the assessed value of the improvements shall be reduced by an | 19 | | amount equal to 65% of the difference between the base year | 20 | | assessed value of the improvements and the assessed value of | 21 | | the improvements in the current taxable year, and in the ninth | 22 | | taxable year, the assessed value of the improvements shall be | 23 | | reduced by an amount equal to 35% of the difference between the | 24 | | base year assessed value of the improvements and the assessed | 25 | | value of the improvements in the current taxable year. The | 26 | | benefit will cease in the tenth taxable year. |
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| 1 | | (c) In order to receive benefits under this Section, in | 2 | | addition to any information required by the chief county | 3 | | assessment officer, the taxpayer must also submit the | 4 | | following information to the chief county assessment officer | 5 | | for review: | 6 | | (1) the owner's name; | 7 | | (2) the postal address and permanent index number of | 8 | | the parcel; | 9 | | (3) a deed or other instrument conveying the parcel to | 10 | | the current owner; | 11 | | (4) evidence that the purchase price is within the | 12 | | Federal Housing Administration's loan limits for the area | 13 | | in which the improvement is located; | 14 | | (5) (blank); certification that the parcel was | 15 | | unoccupied at the time of conveyance to the current owner | 16 | | for a minimum of at least 6 months; | 17 | | (6) evidence that the parcel is clear of unreleased | 18 | | liens and has no outstanding tax liabilities attached | 19 | | against it; | 20 | | (7) evidence that the improvements meet local building | 21 | | codes, or if there are no local building codes, Housing | 22 | | Quality Standards, as determined by the U.S. Department of | 23 | | Housing and Urban Development from time to time, which may | 24 | | be shown by a certificate of occupancy issued by the | 25 | | appropriate local government or the certification by a | 26 | | home inspector licensed by the State of Illinois; and |
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| 1 | | (8) any additional information as reasonably required | 2 | | by the chief county assessment officer. | 3 | | (d) The chief county assessment officer shall notify the | 4 | | taxpayer as to whether or not the parcel meets the | 5 | | requirements of this Section. If the parcel does not meet the | 6 | | requirements of this Section, the chief county assessment | 7 | | officer shall provide written notice of any deficiencies to | 8 | | the taxpayer, who will then have 14 days from the date of
| 9 | | notification to provide supplemental information showing | 10 | | compliance with this Section. If the taxpayer does not | 11 | | exercise this right to cure the deficiency, or if the | 12 | | information submitted, in the sole judgment of the chief | 13 | | county assessment officer, is insufficient to meet the | 14 | | requirements of this Section, the
chief county assessment | 15 | | officer shall provide a written explanation of the reasons for | 16 | | denial. A taxpayer may subsequently reapply for the benefit if | 17 | | the deficiencies are cured at a later date, but no later than | 18 | | 2019. The chief county assessment officer may charge a | 19 | | reasonable application fee to offset the administrative | 20 | | expenses associated with the program. | 21 | | (e) The benefit conferred by this Section is limited as | 22 | | follows: | 23 | | (1) The owner is eligible to apply for the benefit | 24 | | conferred by this Section beginning January 1, 2015 | 25 | | through December 31, 2019 and again beginning January 1, | 26 | | 2021 through December 31, 2029 . If approved, the reduction |
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| 1 | | will be effective for the current taxable year, which will | 2 | | be reflected in the tax bill issued in the following | 3 | | taxable year. | 4 | | (2) The reduction outlined in this Section shall | 5 | | continue for a period of 10 years, and may not be extended | 6 | | or renewed for any additional period. No property shall be | 7 | | eligible under this Section for 2 or more separate | 8 | | reductions. | 9 | | (3) At the completion of the assessment freeze period | 10 | | described here, the entire parcel will be assessed as | 11 | | otherwise provided in this Code. | 12 | | (4) If there is a transfer of ownership during the | 13 | | period of the assessment freeze, then the benefit | 14 | | conferred by this Section shall not apply on or after the | 15 | | date of that transfer unless (i) the property is conveyed | 16 | | by an owner who does not occupy the improvements as a | 17 | | primary residence to an owner who will occupy the | 18 | | improvements as a primary residence and (ii) all | 19 | | requirements of this Section continue to be met. | 20 | | (f) If the taxpayer does not occupy or intend to occupy the | 21 | | residential dwelling as his or her principal residence within | 22 | | a reasonable time, as determined by the chief county | 23 | | assessment officer, the taxpayer must: | 24 | | (1) immediately secure the residential dwelling in | 25 | | accordance with the requirements of this Section; | 26 | | (2) complete sufficient rehabilitation to bring the |
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| 1 | | improvements into compliance with local building codes, | 2 | | including, without limitation, regulations concerning | 3 | | lead-based paint and asbestos remediation; and | 4 | | (3) complete rehabilitation within 18 months of | 5 | | conveyance. | 6 | | (g) For the purposes of this Section, | 7 | | "Base year" means the taxable year prior to the | 8 | | taxable year in which the property is purchased by the | 9 | | eligible homeowner. | 10 | | "Secure" means that: | 11 | | (1) all doors and windows are closed and secured | 12 | | using secure doors, windows without broken or cracked | 13 | | panes, commercial-quality metal security panels filled | 14 | | with
like-kind material as the surrounding wall, or | 15 | | plywood
installed and secured in accordance with local | 16 | | ordinances; at least one building entrance shall be | 17 | | accessible from the
exterior and secured with a door | 18 | | that is locked to allow
access only to authorized | 19 | | persons; | 20 | | (2) all grass and weeds on the vacant residential
| 21 | | property are maintained below 10 inches in height, | 22 | | unless a
local ordinance imposes a lower height; | 23 | | (3) debris, trash, and litter on any portion of | 24 | | the
exterior of the vacant residential property is | 25 | | removed in
compliance with local ordinance; | 26 | | (4) fences, gates, stairs, and steps that lead to |
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| 1 | | the
main entrance of the building are maintained in a
| 2 | | structurally sound and reasonable manner; | 3 | | (5) the property is winterized when appropriate; | 4 | | (6) the exterior of the improvements are | 5 | | reasonably
maintained to ensure the safety of | 6 | | passersby; and | 7 | | (7) vermin and pests are regularly exterminated on | 8 | | the
exterior and interior of the property. | 9 | | "Targeted area" means a distressed community that | 10 | | meets the geographic, poverty, and unemployment criteria | 11 | | for a distressed community set forth in 12 C.F.R. | 12 | | 1806.200.
| 13 | | (Source: P.A. 98-789, eff. 1-1-15 .) | 14 | | (35 ILCS 200/15-174.5 new) | 15 | | Sec. 15-174.5. Petition requirements; notice. | 16 | | (a) Subject to the petition requirements of Section 28-3 | 17 | | of the Election Code, petitions for a referendum to adopt a | 18 | | Community Stabilization Assessment Freeze pilot program must | 19 | | be filed with the governing board of the county not less than | 20 | | 122 days prior to any election held throughout the county. | 21 | | Petitions must include: | 22 | | (1) the name of the county; and | 23 | | (2) a number of signatures equal to or greater than | 24 | | the larger of: (i) 5% of the total ballots cast in the | 25 | | county in the immediately preceding election that is of an |
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| 1 | | election type comparable to the election for which the | 2 | | petition is being filed; or (ii) 2,500 signatures; all | 3 | | signatures gathered under this paragraph (2) must be | 4 | | signed within 180 days prior to the filing of a petition. | 5 | | (b) If a valid petition is filed under subsection (a), | 6 | | then the county clerk shall, by publication in one or more | 7 | | newspapers of general circulation within the county and on the | 8 | | county's website, not less than 90 days prior to the election | 9 | | at which the referendum is to be voted on, give notice in | 10 | | substantially the following form: | 11 | | NOTICE OF PETITION TO ADOPT A COMMUNITY STABILIZATION | 12 | | ASSESSMENT FREEZE BY PILOT PROGRAM. | 13 | | Residents of (County) are
notified that a petition has | 14 | | been filed with (the County) requesting a referendum to adopt | 15 | | a Community Stabilization Assessment Freeze throughout | 16 | | (County).
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.
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