Illinois General Assembly - Full Text of SB2101
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Full Text of SB2101  96th General Assembly

SB2101sam002 96TH GENERAL ASSEMBLY

Sen. Jacqueline Y. Collins

Filed: 3/25/2009

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 2101

2     AMENDMENT NO. ______. Amend Senate Bill 2101 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 1. Short title. This Act may be cited as the
5 Illinois Land Banking Act.
 
6     Section 5. Findings. There is a continuing need to
7 strengthen and revitalize the economy of this State. Vacant and
8 abandoned properties threaten communities around the State
9 because those properties diminish property values, enable
10 crime, and create health hazards. Municipalities are often
11 unaware of which properties are at risk of becoming vacant and
12 abandoned. Municipalities have an interest in knowing the
13 status of the housing stock located in their jurisdictions.
14 Local governments should be empowered to acquire, develop,
15 maintain, and dispose of vacant and abandoned properties that
16 present a threat to communities around the State.

 

 

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1 Municipalities lack many of the tools necessary to ensure
2 adequate property maintenance. Municipalities are unable to
3 recover the reasonable costs of their property maintenance
4 activity.
 
5     Section 10. Definitions.
6     "Authority" means a land bank authority created by one or
7 more municipalities pursuant to this Act.
8     "Intergovernmental agreement" means a contractual
9 agreement between one or more governmental agencies,
10 including, but not limited to, an agreement to jointly exercise
11 any power, privilege, or authority that agencies share in
12 common and that each might exercise separately under this Act.
 
13     Section 15. Authorization. A municipality or several
14 municipalities may create a land bank authority with any or all
15 of the powers and restrictions specified in this Act. In
16 creating an authority, the municipality shall provide for all
17 of the following:
18         (1) The incorporation of the authority as a public
19     body, corporate and politic.
20         (2) Articles of incorporation for the authority, which
21     must specify a list of permissible purposes for authority
22     activity under this Act.
23         (3) The size of the board of directors for the
24     authority.

 

 

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1         (4) The qualifications, methods of selection, and
2     terms of office of the board members.
 
3     Section 20. Election of tax remittance. A municipality may
4 authorize the remittance of a portion of taxes collected on
5 real property, pursuant to the Property Tax Code, to the
6 authority that sold or conveyed real property in order to
7 further the purposes of this Act. The municipality may elect to
8 have up to 50% of those taxes remitted to the authority for up
9 to 5 years after the land bank has completed the sale or
10 conveyance of the property.
 
11     Section 25. Board of directors. An authority shall be
12 governed by a board of directors, the board shall consist of 3
13 or more directors. The board of directors shall be composed of
14 an odd number of members.
15     Notwithstanding any law to the contrary, any public officer
16 shall be eligible to serve as a board member and the acceptance
17 of the appointment shall neither terminate nor impair such
18 public office. For the purposes of this Section, "public
19 officer" means a person who is elected to a State or local
20 government office.
21     Any State or local government employee shall be eligible to
22 serve as a board member.
23     The board of the authority shall meet from time to time as
24 required, and the presence of a majority of the board of

 

 

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1 directors shall constitute a quorum. A chairperson shall be
2 elected from among the members, and he or she shall execute all
3 deeds, leases, and contracts of the authority when authorized
4 by the board. The board of the authority shall conduct meetings
5 in accordance with the Open Meetings Act. The board of the
6 authority shall adopt a code of ethics for its directors,
7 officers, and employees. The board of the authority shall
8 establish policies and procedures requiring the disclosure of
9 relationships that may give rise to a conflict of interest. The
10 board of the authority shall require that any member of the
11 board with a direct or indirect interest in any matter disclose
12 the member's interest to the board before the board takes any
13 action on that matter. Members of the board of directors of an
14 authority shall serve without compensation.
 
15     Section 30. Powers. A municipality or several
16 municipalities may grant an authority any or all of the powers
17 enumerated in this Section, subject to any conditions,
18 restrictions, or limitations of the municipality, including
19 the power to:
20         (a) Acquire property pursuant to Section 35 of this
21     Act.
22         (b) Extinguish taxes pursuant to Section 40 of this
23     Act.
24         (c) Adopt, amend, and repeal bylaws for the regulation
25     of its affairs and the conduct of its business.

 

 

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1         (d) Sue and be sued in its own name and plead and be
2     impleaded, including, but not limited to, defending the
3     authority in an action to clear title to property conveyed
4     by the authority.
5         (e) Take any action, provide any notice, or instate any
6     proceeding required to clear or quiet title to property
7     held by the authority in order to establish ownership by
8     and vest title to property in the authority.
9         (f) Be made party to and defend any action or
10     proceeding concerning title claims against property held
11     by the authority.
12         (g) Subject to the written approval of the board of
13     directors, borrow money and issue bonds and notes according
14     to the provisions of this Act.
15         (h) Enter into contracts and other instruments
16     necessary, incidental, or convenient to the performance of
17     its duties and the exercise of its powers, including, but
18     not limited to, intergovernmental agreements, for the
19     joint exercise of power under this Act.
20         (i) Enter into contracts for the management of, the
21     collection of rent from, and the sale of real property held
22     by an authority.
23         (j) Enter into contracts with other entities, public or
24     private, for the provision of all or a portion of the
25     services necessary for the management and operation of the
26     authority.

 

 

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1         (k) Solicit and accept gifts, grants, labor, loans, and
2     other aid from any person, the federal government, this
3     State, a political subdivision of this State or any agency
4     of the federal government, or an intergovernmental entity
5     created under the laws of this State or participate in any
6     other way in a program of the federal government, this
7     State, a political subdivision of this State, or an
8     intergovernmental entity created under the laws of this
9     State.
10         (l) Procure insurance against loss in connection with
11     the property, assets, or activities of the authority.
12         (m) Control, hold, manage, maintain, operate, repair,
13     lease as lessor, secure, prevent the waste or deterioration
14     of, demolish, and take all other actions necessary to
15     preserve the value of the property it holds or owns.
16         (n) Remediate environmental contamination on any
17     property held by the authority.
18         (o) Fix, charge, and collect rents, fees, and charges
19     for use of property under the control of the authority or
20     for services provided by the authority.
21         (p) Grant or acquire a license, easement, or option
22     with respect to property as the authority determines is
23     reasonably necessary to achieve the purposes of the Act.
24         (q) Convey, sell, transfer, exchange, lease as lessor,
25     or otherwise dispose of property, rights, or interests in
26     property to which the authority holds a legal interest to

 

 

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1     any public or private person for value determined by the
2     authority.
3         (r) Pay any tax or special assessment due on property
4     acquired or owned by the authority.
5         (s) Subject to the Public Funds Investment Act, invest
6     money of the authority, at the discretion of the board of
7     directors of the authority, in instruments, obligations,
8     securities, or property determined proper by the board of
9     directors of the authority, and name and use depositories
10     for its money.
11         (t) Employ its own employees or use employees of the
12     authorizing municipality or employees of the parties to
13     intergovernmental agreements.
14         (u) Employ legal and technical experts, other
15     officers, agents, or employees and pay them from the funds
16     of the authority and determine the qualifications, duties,
17     and compensation of those it employs.
18         (v) The board of directors of an authority may delegate
19     to one or more of its members, officers, agents, or
20     employees any powers or duties it considers proper.
21         (w) Reimburse members of the board of directors of the
22     authority for actual and necessary expenses subject to
23     available appropriations.
24         (x) Contract for goods and services and engage
25     personnel as necessary and engage the services of private
26     consultants, managers, legal counsel, engineers, accounts,

 

 

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1     and auditors for rendering professional financial
2     assistance and advice payable out of any money available to
3     the authority.
4         (y) Prepare the reports or plans the authority
5     considers necessary to assist it in the exercise of its
6     powers under this Act and to monitor and evaluate progress
7     under this Act.
8     The powers granted by this Act are in addition to the
9 powers granted by any other law, statute, or charter.
 
10     Section 35. Acquisition of property. An authority may
11 acquire by gift, devise, transfer, exchange, foreclosure,
12 purchase, or otherwise on terms and conditions and in a manner
13 the authority considers proper, real property within the
14 authority's jurisdiction, or rights or interests in real
15 property within the authority's jurisdiction.
16     An authority may acquire by gift, devise, transfer,
17 exchange, foreclosure, purchase, or otherwise on terms and
18 conditions and in a manner the authority considers proper, real
19 property outside of the authority's jurisdiction pursuant to an
20 intergovernmental agreement, or rights or interests in real
21 property outside of the authority's jurisdiction pursuant to an
22 intergovernmental agreement.
23     An authority may acquire by gift, devise, transfer,
24 exchange, foreclosure, purchase, or otherwise on terms and
25 conditions and in a manner the authority considers proper,

 

 

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1 personal property, or rights or interests in personal property.
2     Real property acquired by an authority by purchase may be
3 by purchase contract, lease purchase agreement, installment
4 sales contract, land contract, or otherwise.
5     An authority may hold and own in its name any property
6 acquired by it or conveyed to it by this State, a foreclosing
7 governmental unit, a unit of local government, an
8 intergovernmental entity created under the laws of this State,
9 or any other public or private person, including, but not
10 limited to, property without clear title.
11     All deeds, mortgages, contracts, leases, purchases, or
12 other agreements regarding property of an authority, including
13 agreements to acquire or dispose of real property, shall be
14 approved by and executed in the name of the authority.
15     An authority shall have the right to purchase properties at
16 tax sales conducted in accordance with Division 3.5 of the
17 Property Tax Code.
18         (a) The authority may tender a bid at a tax sale that
19     is a credit bid, consisting of the obligation of the
20     authority to satisfy the component parts of the bid by
21     payments to the respective political subdivisions.
22         (b) A bid by the authority at a tax sale for the
23     minimum amount shall take priority over all other bids for
24     the same property.
 
25     Section 40. Taxes. When a property is acquired by the

 

 

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1 authority, the authority shall have the power to extinguish all
2 outstanding county and city or consolidated government taxes,
3 including school district taxes, at the time it sells or
4 otherwise disposes of property.
5     Property of an authority is public property devoted to an
6 essential public and governmental function and purpose. Income
7 of the authority is considered to be for a public and
8 governmental purpose. The property of the authority and its
9 income and operation are exempt from all taxes and special
10 assessments of this State and all units of local government.
11 Bonds or notes issued by the authority, and the interest on and
12 income from those bonds and notes, are exempt from all taxation
13 of this State or a unit of local government.
 
14     Section 45. Receipt of taxes. All moneys received by an
15 authority as payment of taxes, penalties, or interest, or from
16 the redemption or sale of property subject to a tax lien of any
17 taxing unit shall be returned to the appropriate local tax
18 collecting unit in which the property is located.
 
19     Section 50. Proceeds. Except as otherwise provided in this
20 Act, as required by other law, as required under the provisions
21 of a deed, or as an authority otherwise agrees, any proceeds
22 received by the authority may be retained by the authority for
23 the purposes of this Act.
 

 

 

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1     Section 55. Record maintenance. The authority shall
2 maintain a written inventory of all property held by the
3 authority. The property shall be inventoried and classified by
4 the authority according to title status and suitability for
5 use. The inventory shall be available for public inspection
6 during regular business hours.
7     For each property held, the authority shall establish and
8 maintain itemized records and accounts reflecting all
9 transactions, expenditures, and revenues relating to all
10 property held by the authority.
 
11     Section 60. The Property Tax Code is amended by adding
12 Sections 21-111 and 21-231 as follows:
 
13     (35 ILCS 200/21-111 new)
14     Sec. 21-111. Notice to municipalities and townships of
15 annual application for judgment and sale; delinquent taxes. At
16 any time after all taxes have become delinquent in any year,
17 the county collector shall provide notice of the intended
18 application for judgment and sale of delinquent properties to
19 all municipal clerks in the county's jurisdiction and all
20 township assessors responsible for unincorporated areas in the
21 county's jurisdiction. The notice shall be provided at least 10
22 days before the day on which judgment is to be applied for.
23     Unless otherwise requested by a municipal clerk or township
24 assessor, notice shall include a list of the delinquent

 

 

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1 properties upon which the taxes or any part thereof remain due
2 and unpaid, the names of owners, if known, the total amount
3 due, and the year or years for which they are due and such
4 notices shall be printed and identify properties by property
5 index number.
6     Properties upon which taxes have been paid in full under
7 protest shall not be included in the list. In each such notice,
8 the county collector shall inform the municipal clerk or
9 township assessor of the clerk or assessor's ability to elect
10 to receive such notices electronically, to limit the list of
11 properties about which it receives notice to a list of
12 properties identified by property index numbers provided by the
13 municipal clerk or township assessor, and to elect not to
14 receive notice under this Section.
15     At any time, a municipal clerk or township assessor may
16 elect, by providing written notice to the county collector: (1)
17 to receive such notice electronically, (2) to limit the list of
18 properties about which it receives notice to a list identified
19 by property index numbers provided by the municipal clerk or
20 township assessor, and (3) to elect not to receive notice under
21 this Section. A municipal clerk or township assessor may
22 reverse any such election at any time by providing written
23 notice to the county collector.
 
24     (35 ILCS 200/21-231 new)
25     Sec. 21-231. Notice of sales and redemptions. When any

 

 

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1 property is sold, the county clerk shall send notice of the
2 sale to the municipal clerk of the jurisdiction where the
3 property is located of the name of the purchaser and the amount
4 of the final bid. When any property is redeemed from sale, the
5 county clerk shall send notice to the municipal clerk of the
6 jurisdiction where the property is located of the name of the
7 person redeeming and the redemption date. Notice must be sent
8 by registered or certified mail within 30 days after sale or
9 redemption.
 
10     Section 65. The Counties Code is amended by changing
11 Sections 5-1099 and 5-1118 and by adding Section 5-1131 as
12 follows:
 
13     (55 ILCS 5/5-1099)  (from Ch. 34, par. 5-1099)
14     Sec. 5-1099. Weed cutting on residential subdivision lots.
15 In counties of less than 3,000,000 inhabitants, a county board
16 may provide for the cutting of weeds on lots in subdivisions in
17 residential areas in the unincorporated area of the county or
18 any part thereof, when the owners of the subdivision lot refuse
19 or neglect to cut them, and may collect from the owners the
20 reasonable cost thereof. Notice of intention to cut weeds shall
21 be given to the owners of subdivision lot involved at least 15
22 days before such action is intended to be taken, by mailing a
23 written copy of such notice to the last known address of each
24 such owner or owners. This cost, including any associated fees

 

 

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1 and other costs related to the enforcement of this Section, is
2 a lien upon the subdivision lot affected, superior to all prior
3 existing other liens and encumbrances, except tax liens;
4 provided that within 60 days after such cost and expense is
5 incurred the county, or person performing the service by
6 authority of the county in his or its own name, files notice of
7 lien in the office of the recorder in the county in which such
8 subdivision lot is located or in the office of the Registrar of
9 Titles of the county if the subdivision lot affected is
10 registered under the Torrens system. The notice shall consist
11 of a sworn statement setting out (1) a description of the
12 subdivision lot sufficient for identification thereof, (2) the
13 amount of money representing the cost and expense incurred or
14 payable for the service, and (3) the date or dates when such
15 cost and expense was incurred by the county. However, the lien
16 of such county shall not be valid as to any purchaser whose
17 rights in and to such subdivision lot have arisen subsequent to
18 the weed-cutting and prior to the filing of such notice , and
19 the lien of the county shall not be valid as to any mortgagee,
20 judgment creditor or other lienor whose rights in and to such
21 subdivision lot arise prior to the filing of such notice. Upon
22 payment of the cost and expense by the owner of or persons
23 interested in such property after notice of lien has been
24 filed, the lien shall be released by the county or person in
25 whose name this lien has been filed and the release may be
26 filed of record as in the case of filing notice of lien.

 

 

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1 (Source: P.A. 86-962; 86-1028.)
 
2     (55 ILCS 5/5-1118)  (from Ch. 34, par. 5-1118)
3     Sec. 5-1118. Garbage and debris removal. The county board
4 of any county may provide for the removal of garbage and debris
5 from unincorporated areas of the county if the owner of the
6 property refuses or neglects to remove the garbage and debris
7 and may collect the reasonable costs of removal from the owner.
8 Notice of the county's intention to remove garbage and debris
9 shall be given to the owner or owners of the property by
10 mailing a written copy of the notice to the last known address
11 of each owner or owners at least 15 days before the action is
12 intended to be taken. This cost of removal, including any
13 associated fees and other costs related to the enforcement of
14 this Section, is a lien upon the real estate affected that is
15 superior to all prior existing other liens and encumbrances,
16 except tax liens, if within 60 days after the costs are
17 incurred, the county or person performing the service by
18 authority of the county, in his or its own name, files notice
19 of lien in the office of the recorder in the county in which
20 the real estate is located or files notice of the lien in the
21 office of the Registrar of Titles of the county if the real
22 estate affected is registered under the Registered Titles
23 (Torrens) Act. The notice shall consist of a sworn statement
24 setting out: (1) a description of the real estate sufficient
25 for identification, (2) the amount of money representing the

 

 

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1 cost and expense incurred or payable for the service, and (3)
2 the date or dates when the costs were incurred by the county.
3     The lien of the county shall not be valid as to any
4 purchaser whose rights in and to the real estate have arisen
5 after the removal of the garbage and debris and before the
6 filing of the notice. The lien of the county shall not be valid
7 as to any mortgagee, judgment creditor, or other lienor whose
8 rights in and to the real estate arose before the filing of the
9 notice. Upon payment of the removal costs by the property owner
10 or persons interested in the property, the lien shall be
11 released by the county or the person in whose name the lien has
12 been filed, and the release may be filed of record as in the
13 case of filing notice of lien. The lien may be enforced by
14 proceedings to foreclose as in the case of mortgages or
15 mechanics' liens. An action to foreclose this lien shall be
16 commenced within 2 years after the date of filing notice of the
17 lien.
18 (Source: P.A. 87-939.)
 
19     (55 ILCS 5/5-1131 new)
20     Sec. 5-1131. Vacant and abandoned property ordinances. For
21 the purposes of minimizing the hazards to persons and property
22 resulting from vacant and abandoned property, a county board
23 may prescribe rules, regulations, or ordinances for the
24 maintenance of vacant and abandoned property within the
25 unincorporated territories of its jurisdiction. A county board

 

 

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1 may impose registration fees for vacant and abandoned property
2 and fines for failure to comply with the rules, regulations, or
3 ordinances enacted pursuant to this Section.
 
4     Section 70. The Illinois Municipal Code is amended by
5 changing Sections 11-20-7, 11-20-13, and 11-31.1-12 and by
6 adding Sections 11-20-15, 11-20-16, and 11-20-17 as follows:
 
7     (65 ILCS 5/11-20-7)  (from Ch. 24, par. 11-20-7)
8     Sec. 11-20-7. Cutting of weeds. The corporate authorities
9 of each municipality may provide for the cutting of weeds or
10 grass, the trimming of trees or bushes, and the removal of
11 nuisance bushes or trees in the municipality, when the owners
12 of real estate refuse or neglect to cut, trim, or remove them
13 and to collect from the owners of private property the
14 reasonable cost thereof. This cost, including any associated
15 fees and other costs related to the enforcement of this
16 Section, is a lien upon the real estate affected, superior to
17 all prior existing other liens and encumbrances, except tax
18 liens; provided that within 60 days after such cost and expense
19 is incurred the municipality, or person performing the service
20 by authority of the municipality, in his or its own name, files
21 notice of lien in the office of the recorder in the county in
22 which such real estate is located or in the office of the
23 Registrar of Titles of such county if the real estate affected
24 is registered under the Torrens system. The notice shall

 

 

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1 consist of a sworn statement setting out (1) a description of
2 the real estate sufficient for identification thereof, (2) the
3 amount of money representing the cost and expense incurred or
4 payable for the service, and (3) the date or dates when such
5 cost and expense was incurred by the municipality. However, the
6 lien of such municipality shall not be valid as to any
7 purchaser whose rights in and to such real estate have arisen
8 subsequent to the cutting of weeds or grass, the trimming of
9 trees or bushes, or the removal of nuisance bushes or trees and
10 prior to the filing of such notice, and the lien of such
11 municipality shall not be valid as to any mortgagee, judgment
12 creditor or other lienor whose rights in and to such real
13 estate arise prior to the filing of such notice. Upon payment
14 of the cost and expense by the owner of or persons interested
15 in such property after notice of lien has been filed, the lien
16 shall be released by the municipality or person in whose name
17 the lien has been filed and the release may be filed of record
18 as in the case of filing notice of lien.
19     The cost of the cutting, trimming, or removal of weeds,
20 grass, trees, or bushes shall not be lien on the real estate
21 affected unless a notice is personally served on, or sent by
22 certified mail to, the person to whom was sent the tax bill for
23 the general taxes on the property for the last preceding year.
24 The notice shall be delivered or sent after the cutting,
25 trimming, or removal of weeds, grass, trees, or bushes on the
26 property. The notice shall state the substance of this Section

 

 

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1 and the substance of any ordinance of the municipality
2 implementing this Section and shall identify the property, by
3 common description, and the location of the weeds to be cut.
4 (Source: P.A. 95-183, eff. 8-14-07.)
 
5     (65 ILCS 5/11-20-13)  (from Ch. 24, par. 11-20-13)
6     Sec. 11-20-13. Removal of garbage, debris, and graffiti.
7 The corporate authorities of each municipality may provide for
8 the removal of garbage, debris, and graffiti from private
9 property when the owner of such property, after reasonable
10 notice, refuses or neglects to remove such garbage, debris, and
11 graffiti and may collect from such owner the reasonable cost
12 thereof except in the case of graffiti. This cost, including
13 any associated fees and other costs related to the enforcement
14 of this Section, is a lien upon the real estate affected,
15 superior to all prior existing subsequent liens and
16 encumbrances, except tax liens, if within 60 days after such
17 cost and expense is incurred the municipality, or person
18 performing the service by authority of the municipality, in his
19 or its own name, files notice of lien in the office of the
20 recorder in the county in which such real estate is located or
21 in the office of the Registrar of Titles of such county if the
22 real estate affected is registered under "An Act concerning
23 land titles", approved May 1, 1897, as amended. The notice
24 shall consist of a sworn statement setting out (1) a
25 description of the real estate sufficient for identification

 

 

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1 thereof, (2) the amount of money representing the cost and
2 expense incurred or payable for the service, and (3) the date
3 or dates when such cost and expense was incurred by the
4 municipality. However, the lien of such municipality shall not
5 be valid as to any purchaser whose rights in and to such real
6 estate have arisen subsequent to removal of the garbage and
7 debris and prior to the filing of such notice, and the lien of
8 such municipality shall not be valid as to any mortgagee,
9 judgment creditor or other lienor whose rights in and to such
10 real estate arise prior to the filing of such notice. Upon
11 payment of the cost and expense by the owner of or persons
12 interested in such property after notice of lien has been
13 filed, the lien shall be released by the municipality or person
14 in whose name the lien has been filed and the release may be
15 filed of record as in the case of filing notice of lien. The
16 lien may be enforced by proceedings to foreclose as in case of
17 mortgages or mechanics' liens. An action to foreclose this lien
18 shall be commenced within 2 years after the date of filing
19 notice of lien.
20     This amendatory Act of 1973 does not apply to any
21 municipality which is a home rule unit.
22 (Source: P.A. 90-292, eff. 1-1-98.)
 
23     (65 ILCS 5/11-20-15 new)
24     Sec. 11-20-15. Vacant and abandoned property ordinances.
25 For the purposes of minimizing the hazards to persons and

 

 

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1 property resulting from vacant and abandoned property, the
2 corporate authority of each municipality may prescribe rules,
3 regulations, or ordinances for the maintenance of vacant and
4 abandoned property. The corporate authorities of a
5 municipality may impose registration fees for vacant and
6 abandoned property and fines for failure to comply with the
7 rules, regulations, or ordinances enacted pursuant to this
8 Section.
 
9     (65 ILCS 5/11-20-16 new)
10     Sec. 11-20-16. Mortgage beneficiary responsibility.
11 Municipalities may hold responsible for any failure to comply
12 with rules, regulations, or ordinances for the maintenance of
13 vacant and abandoned property (i) any beneficiary or trustee,
14 who holds a deed of trust on a neglected property located
15 within the municipality, or (ii) any mortgagee who holds a
16 mortgage on a neglected property located within the
17 municipality, and has filed a notice of default under Section
18 15-1503 of the Code of Civil Procedure.
19     If a beneficiary or trustee, who holds a deed of trust on a
20 neglected property, or a mortgagee who holds a mortgage on a
21 neglected property, is held responsible for any failure to
22 comply with municipal law, that beneficiary, trustee, or
23 mortgagee may enter the property, after proper notice, to
24 remedy any violation of the rules, regulations, or ordinances
25 for the maintenance of vacant and abandoned property. The

 

 

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1 beneficiary, trustee, or mortgagee may enter the property only
2 if, 15 days after the beneficiary, trustee, or mortgagee sent
3 proper notice, the property owners and occupants have failed to
4 comply with the rules, regulations, or ordinances at issue.
5     For the purpose of this Section, "neglected" means that
6 there has been no occupant in the property for a period of 6
7 months and 2 or more of the following criteria have been met:
8         (a) Construction was initiated on the property and was
9     discontinued prior to completion, leaving the building
10     unsuitable for occupancy, and no construction has taken
11     place for at least 6 months.
12         (b) At least one installment of property tax is unpaid
13     and delinquent.
14         (c) The property has had more than one uncorrected
15     municipal code violation over the past year.
16         (d) Gas, electric, or water service to the premises has
17     been terminated.
18         (e) Windows or entrances to the premises are boarded up
19     or closed off, or multiple window panes are broken and
20     unrepaired.
21         (f) Doors to the premises are smashed through, broken
22     off, unhinged, or continuously unlocked.
23         (g) Rubbish, trash, or debris has accumulated on the
24     premises.
25         (h) The police or sheriff's office has received at
26     least 2 reports of trespassers on the premises, or of

 

 

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1     vandalism or other illegal acts being committed on the
2     premises in the past 6 months.
3         (i) The property is a nuisance.
4     For the purpose of this Section, "mortgagee" means (i) the
5 holder of an indebtedness, obligee of a non-monetary obligation
6 secured by a mortgage, or any person designated or authorized
7 to act on behalf of such holder and (ii) any person claiming
8 through a mortgagee as successor.
9     For the purpose of this Section, "proper notice" means
10 notice to all property owners and occupants by certified or
11 registered mail stating the intent of the beneficiary, trustee,
12 or mortgagee to enter the property; the notice must be sent at
13 least 15 days before the beneficiary, trustee, or mortgagee
14 enters the property. The notice shall also be posted on all
15 entrances to the property at least 15 days before the
16 beneficiary, trustee, or mortgagee enters the property. The
17 beneficiary, trustee, or mortgagee shall make a diligent injury
18 to determine the identities and addresses of all occupants of
19 the property. The notice shall include the name, address, and
20 phone number of the individual or entity whom the owner or
21 occupant may contact to inform that the property is not
22 neglected. The notice must specify the municipal law violations
23 the beneficiary, trustee, or mortgagee has been held
24 responsible for by a municipality.
25     For the purpose of this Section, "occupant" means a person
26 in lawful physical possession of all or part of the mortgaged

 

 

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1 real estate.
2     For the purpose of this Section, "nuisance" means any
3 property that because of its physical condition or use is a
4 public nuisance, or any property that constitutes a blight on
5 the surrounding area, or any property that is not fit for human
6 habitation under the applicable fire, building, and housing
7 codes. "Nuisance" also means any property on which any illegal
8 activity involving controlled substances, methamphetamine, or
9 cannabis takes place or any property on which any
10 streetgang-related activity takes place.
 
11     (65 ILCS 5/11-20-17 new)
12     Sec. 11-20-17. Care for vacant and abandoned buildings. The
13 corporate authorities of each municipality may (i) provide for
14 property maintenance required to correct violations of
15 municipal vacant and abandoned property rules, regulations,
16 and ordinances that would fall within those rules, regulations,
17 and ordinances contemplated by Section 11-20-15, when the
18 owners of real estate refuse or neglect to correct such
19 violations and (ii) collect from the owners of private property
20 the reasonable cost thereof. This cost, including any
21 associated fees and other costs related to the enforcement of
22 this Section, is a lien upon the real estate affected, superior
23 to all prior existing liens and encumbrances, except tax liens;
24 provided that within 60 days after such cost and expense is
25 incurred the municipality, or person performing the service by

 

 

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1 authority of the municipality, in that person's own name, file
2 notice of lien in the office of the recorder in the county in
3 which the real estate is located or in the office of the
4 Registrar of Titles of the county if the real estate affected
5 is registered under the Torrens system. The notice shall
6 consist of a sworn statement setting out (i) a description of
7 the real estate sufficient for identification thereof, (ii) the
8 amount of money representing the cost and expense incurred or
9 payable for the service, and (iii) the date or dates when the
10 cost and expense was incurred by the municipality. However, the
11 lien of the municipality shall not be valid as to any purchaser
12 whose rights in and to the real estate have arisen subsequent
13 to the property maintenance and prior to the filing of such
14 notice. Upon payment of the cost and expense by the owner of or
15 persons interested in the property after notice of lien has
16 been filed, the lien shall be released by the municipality or
17 person in whose name the lien has been filed and the release
18 may be filed of record as in the case of filing notice of lien.
19 The lien may be enforced by proceedings to foreclose as in case
20 of mortgages or mechanics' liens. An action to foreclose this
21 lien shall be commenced within 2 years after the date of filing
22 notice of lien.
 
23     (65 ILCS 5/11-31.1-12)  (from Ch. 24, par. 11-31.1-12)
24     Sec. 11-31.1-12. Sanctions applicable to owner - Property.
25 The order to correct a code violation and the sanctions imposed

 

 

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1 by a municipality as the result of a finding of a code
2 violation under this Division shall attach to the property as
3 well as to the owner of the property, so that a finding of a
4 code violation against one owner cannot be avoided by conveying
5 or transferring the property to another owner. Any subsequent
6 transferee or owner of property takes subject to a civil fine
7 and the findings, decision and order of a hearing officer under
8 this Division.
9 (Source: Laws 1967, p. 1905.)
 
10     Section 75. The Code of Civil Procedure is amended by
11 changing Sections 15-1508 and 15-1509 and by adding Section
12 15-1503.5 as follows:
 
13     (735 ILCS 5/15-1503.5 new)
14     Sec. 15-1503.5. Notice of foreclosure to municipalities
15 and townships; servicer duties.
16     (a) Notice of foreclosure shall be provided to the
17 municipality within the boundaries of which the property is
18 located or to the township assessor if the property is located
19 within an unincorporated territory. All notices must be sent by
20 registered or certified mail. The municipality or township
21 shall not be joined as a party unless the municipality or
22 township is joined as a party under other provisions of this
23 Section.
24     When notice of foreclosure is sent to a municipality or

 

 

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1 township, it shall include (i) the names of all plaintiffs and
2 the case number, (ii) the court in which the action was
3 brought, (iii) the names of title holders of record, (iv) a
4 legal description of the real estate sufficient to identify it
5 with reasonable certainty, (v) a common address or description
6 of the location of the real estate, (vi) identification of the
7 mortgage sought to be foreclosed, (vii) the name, address, and
8 phone number of the servicer, servicer's agent, or servicer's
9 representative, and (viii) the property index number of the
10 property. The notice must be sent within 10 days after the
11 filing of a notice of foreclosure under Section 15-1503 with
12 the county in which the mortgaged real estate is located.
13     If, before a foreclosure sale is completed, there is a
14 change in any of the relevant required information, such as
15 name, phone number, agent, or local representative, then new
16 notice must be sent to the municipality or township informing
17 the municipality or township of the change. The notice must be
18 sent within 30 days of the change.
19     (b) Servicers have the following duties in replying to
20 municipal or township inquiries:
21         (1) In general. If any servicer of a loan receives a
22     qualified written request from a municipality or township
23     for information relating to the maintenance of the property
24     covered by the loan, the servicer shall provide a written
25     response acknowledging the receipt of the correspondence
26     within 20 days (excluding public holidays, Saturdays, and

 

 

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1     Sundays) unless the action requested is taken within that
2     period.
3         (2) Qualified written request. For the purposes of this
4     subsection, a qualified written request shall be a written
5     correspondence that includes, or otherwise enables the
6     servicer to identify, the name and account of the borrower.
7         (3) Action with respect to inquiry. Not later than 60
8     days (excluding legal public holidays, Saturdays, and
9     Sundays) after the receipt from any municipality or
10     township of any qualified written request the servicer
11     shall provide the information requested.
12     Any person, partnership, association, corporation, or
13 other entity that violates any provision of this subsection
14 commits a business offense and shall be fined an amount not to
15 exceed $25,000 by the Commissioner of Banks and Real Estate or
16 a person authorized by the Commissioner, the Office of Banks
17 and Real Estate Act, or this Act to act in the Commissioner's
18 stead.
19     (c) For the purposes of this Section, the term "servicer"
20 means the person responsible for servicing of a loan. The term
21 includes the person who makes or holds a loan if that person
22 also services the loan.
23     For the purposes of this Section, the term "servicing"
24 means the collection or remittance or the right or obligation
25 to collect or remit for any lender, noteowner, noteholder, or
26 for a licensee's own account, of payments, interest, principal,

 

 

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1 and trust items such as hazard insurance and taxes on a
2 residential mortgage loan in accordance with the terms of the
3 residential mortgage loan; and includes loan payment
4 follow-up, delinquency loan follow-up, loan analysis, and any
5 notifications to the borrower that are necessary to enable the
6 borrower to keep the loan current and in good standing.
 
7     (735 ILCS 5/15-1508)  (from Ch. 110, par. 15-1508)
8     Sec. 15-1508. Report of Sale and Confirmation of Sale.
9     (a) Report.
10         (1) The person conducting the sale shall promptly make
11     a report to the court, which report shall include a copy of
12     all receipts and, if any, certificate of sale.
13         (2) The person conducting the sale shall promptly make
14     a report to the municipality or the township if the
15     property is located in an unincorporated territory, which
16     report shall include the name of the party purchasing the
17     property if the property is sold, or the name of the
18     resulting property-holding entity if there is no sale. Such
19     a report must be sent by registered or certified mail
20     within 30 days after the sale proceeding.
21     (b) Hearing. Upon motion and notice in accordance with
22 court rules applicable to motions generally, which motion shall
23 not be made prior to sale, the court shall conduct a hearing to
24 confirm the sale. Unless the court finds that (i) a notice
25 required in accordance with subsection (c) of Section 15-1507

 

 

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1 was not given, (ii) the terms of sale were unconscionable,
2 (iii) the sale was conducted fraudulently or (iv) that justice
3 was otherwise not done, the court shall then enter an order
4 confirming the sale. The confirmation order may also:
5         (1) approve the mortgagee's fees and costs arising
6     between the entry of the judgment of foreclosure and the
7     confirmation hearing, those costs and fees to be allowable
8     to the same extent as provided in the note and mortgage and
9     in Section 15-1504;
10         (2) provide for a personal judgment against any party
11     for a deficiency; and
12         (3) determine the priority of the judgments of parties
13     who deferred proving the priority pursuant to subsection
14     (h) of Section 15-1506, but the court shall not defer
15     confirming the sale pending the determination of such
16     priority.
17     (b-5) Notice with respect to residential real estate. With
18 respect to residential real estate, the notice required under
19 subsection (b) of this Section shall be sent to the mortgagor
20 even if the mortgagor has previously been held in default. In
21 the event the mortgagor has filed an appearance, the notice
22 shall be sent to the address indicated on the appearance. In
23 all other cases, the notice shall be sent to the mortgagor at
24 the common address of the foreclosed property. The notice shall
25 be sent by first class mail. Unless the right to possession has
26 been previously terminated by the court, the notice shall

 

 

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1 include the following language in 12-point boldface
2 capitalized type:
3
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
4
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
5
POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE
6
ILLINOIS MORTGAGE FORECLOSURE LAW.
7     (c) Failure to Give Notice. If any sale is held without
8 compliance with subsection (c) of Section 15-1507 of this
9 Article, any party entitled to the notice provided for in
10 paragraph (3) of that subsection (c) who was not so notified
11 may, by motion supported by affidavit made prior to
12 confirmation of such sale, ask the court which entered the
13 judgment to set aside the sale, provided that such party shall
14 guarantee or secure by bond a bid equal to the successful bid
15 at the prior sale. Any subsequent sale is subject to the same
16 notice requirement as the original sale.
17     (d) Validity of Sale. Except as provided in subsection (c)
18 of Section 15-1508, no sale under this Article shall be held
19 invalid or be set aside because of any defect in the notice
20 thereof or in the publication of the same, or in the
21 proceedings of the officer conducting the sale, except upon
22 good cause shown in a hearing pursuant to subsection (b) of
23 Section 15-1508. At any time after a sale has occurred, any
24 party entitled to notice under paragraph (3) of subsection (c)
25 of Section 15-1507 may recover from the mortgagee any damages
26 caused by the mortgagee's failure to comply with such paragraph

 

 

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1 (3). Any party who recovers damages in a judicial proceeding
2 brought under this subsection may also recover from the
3 mortgagee the reasonable expenses of litigation, including
4 reasonable attorney's fees.
5     (e) Deficiency Judgment. In any order confirming a sale
6 pursuant to the judgment of foreclosure, the court shall also
7 enter a personal judgment for deficiency against any party (i)
8 if otherwise authorized and (ii) to the extent requested in the
9 complaint and proven upon presentation of the report of sale in
10 accordance with Section 15-1508. Except as otherwise provided
11 in this Article, a judgment may be entered for any balance of
12 money that may be found due to the plaintiff, over and above
13 the proceeds of the sale or sales, and enforcement may be had
14 for the collection of such balance, the same as when the
15 judgment is solely for the payment of money. Such judgment may
16 be entered, or enforcement had, only in cases where personal
17 service has been had upon the persons personally liable for the
18 mortgage indebtedness, unless they have entered their
19 appearance in the foreclosure action.
20     (f) Satisfaction. Upon confirmation of the sale, the
21 judgment stands satisfied to the extent of the sale price less
22 expenses and costs. If the order confirming the sale includes a
23 deficiency judgment, the judgment shall become a lien in the
24 manner of any other judgment for the payment of money.
25     (g) The order confirming the sale shall include,
26 notwithstanding any previous orders awarding possession during

 

 

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1 the pendency of the foreclosure, an award to the purchaser of
2 possession of the mortgaged real estate, as of the date 30 days
3 after the entry of the order, against the parties to the
4 foreclosure whose interests have been terminated.
5     An order of possession authorizing the removal of a person
6 from possession of the mortgaged real estate shall be entered
7 and enforced only against those persons personally named as
8 individuals in the complaint or the petition under subsection
9 (h) of Section 15-1701 and in the order of possession and shall
10 not be entered and enforced against any person who is only
11 generically described as an unknown owner or nonrecord claimant
12 or by another generic designation in the complaint.
13     Notwithstanding the preceding paragraph, the failure to
14 personally name, include, or seek an award of possession of the
15 mortgaged real estate against a person in the confirmation
16 order shall not abrogate any right that the purchaser may have
17 to possession of the mortgaged real estate and to maintain a
18 proceeding against that person for possession under Article 9
19 of this Code or subsection (h) of Section 15-1701; and
20 possession against a person who (1) has not been personally
21 named as a party to the foreclosure and (2) has not been
22 provided an opportunity to be heard in the foreclosure
23 proceeding may be sought only by maintaining a proceeding under
24 Article 9 of this Code or subsection (h) of Section 15-1701.
25 (Source: P.A. 95-826, eff. 8-14-08.)
 

 

 

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1     (735 ILCS 5/15-1509)  (from Ch. 110, par. 15-1509)
2     Sec. 15-1509. Transfer of Title and Title Acquired.
3     (a) Deed. After (i) confirmation of the sale, and (ii)
4 payment of the purchase price and any other amounts required to
5 be paid by the purchaser at sale, the court (or, if the court
6 shall so order, the person who conducted the sale or such
7 person's successor or some persons specifically appointed by
8 the court for that purpose), shall upon the request of the
9 holder of the certificate of sale (or the purchaser if no
10 certificate of sale was issued), promptly execute a deed to the
11 holder or purchaser sufficient to convey title. Such deed shall
12 identify the court and the caption of the case in which
13 judgment was entered authorizing issuance of the deed.
14 Signature and the recital in the deed of the title or authority
15 of the person signing the deed as grantor, of authority
16 pursuant to the judgment and of the giving of the notices
17 required by this Article is sufficient proof of the facts
18 recited and of such authority to execute the deed, but such
19 deed shall not be construed to contain any covenant on the part
20 of the person executing it. If the deed issues to a grantee
21 prior to the expiration of the period for appealing the
22 confirmation of sale, and the grantee conveys title to another
23 party within that period, that other party will not be deemed a
24 bona fide purchaser unless and until such period expires
25 without an appeal having been filed or, an appeal having been
26 filed, such appeal is denied or withdrawn.

 

 

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1     If a mortgagee, mortgage beneficiary, or trustee receives
2 title to real estate under this Section, the mortgagee,
3 mortgage beneficiary, or trustee shall provide notice to the
4 municipality within the boundary of which the property is
5 located, or, if the property is located in an unincorporated
6 territory, notice to the township assessor. Notice shall
7 include the name, address, and phone number of a person
8 responsible for maintaining the real estate. Notice must be
9 sent by registered or certified mail. The notice must be sent
10 within 10 days after the grantee receives title under this
11 Section. If there is a change in any of the information
12 required under this Section, then new notice must be sent to
13 the municipality or township informing the municipality or
14 township of the change. The notice must be sent within 10 days
15 of the change.
16     Any person, partnership, association, corporation, or
17 other entity that violates any of the notice requirements set
18 forth in this subsection commits a business offense and shall
19 be fined an amount not to exceed $25,000 by the Commissioner of
20 Banks and Real Estate or a person authorized by the
21 Commissioner, the Office of Banks and Real Estate Act, or this
22 Act to act in the Commissioner's stead.
23     (b) Effect Upon Delivery of Deed. Delivery of the deed
24 executed on the sale of the real estate, even if the purchaser
25 or holder of the certificate of sale is a party to the
26 foreclosure, shall be sufficient to pass the title thereto.

 

 

09600SB2101sam002 - 36 - LRB096 11443 RLJ 24194 a

1     (c) Claims Barred. Any vesting of title by a consent
2 foreclosure pursuant to Section 15-1402 or by deed pursuant to
3 subsection (b) of Section 15-1509, unless otherwise specified
4 in the judgment of foreclosure, shall be an entire bar of (i)
5 all claims of parties to the foreclosure and (ii) all claims of
6 any nonrecord claimant who is given notice of the foreclosure
7 in accordance with paragraph (2) of subsection (c) of Section
8 15-1502, notwithstanding the provisions of subsection (g) of
9 Section 2-1301 to the contrary. Any person seeking relief from
10 any judgment or order entered in the foreclosure in accordance
11 with subsection (g) of Section 2-1301 of the Code of Civil
12 Procedure may claim only an interest in the proceeds of sale.
13 (Source: P.A. 86-974.)
 
14     Section 99. Effective date. This Act takes effect upon
15 becoming law.".