Full Text of HB1108 97th General Assembly
HB1108ham003 97TH GENERAL ASSEMBLY | Rep. Karen A. Yarbrough Filed: 3/8/2011
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| 1 | | AMENDMENT TO HOUSE BILL 1108
| 2 | | AMENDMENT NO. ______. Amend House Bill 1108 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Findings. The General Assembly finds that | 5 | | additional action is needed to help prevent foreclosures and | 6 | | revitalize the economy in the State of Illinois. Foreclosures | 7 | | are leaving families homeless or in dire financial straits. | 8 | | Many borrowers could receive loan modifications under their | 9 | | existing mortgage, which would help to alleviate this crisis, | 10 | | keep families in their homes, and save Illinois neighborhoods | 11 | | and communities from further damage. Many foreclosures could be | 12 | | prevented with a modest investment in prevention activities, | 13 | | including, outreach to borrowers and court-sponsored mediation | 14 | | to help borrowers and lenders arrive at mutually-agreeable loan | 15 | | modifications. Foreclosed properties contribute to the number | 16 | | of vacant, abandoned, and tax-delinquent properties that | 17 | | threaten communities around the State because those properties |
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| 1 | | diminish property values, enable crime, and create health | 2 | | hazards. Such properties also impose large costs on | 3 | | municipalities and, at the same time, result in decreased | 4 | | revenue for the municipalities. The need exists to address the | 5 | | problems of vacant and abandoned property in a coordinated | 6 | | manner and to foster the development of such property and | 7 | | promote economic growth. Municipalities lack tools necessary | 8 | | to ensure that vacant properties are adequately maintained and | 9 | | secured. Land banks are one of the tools that can be used by | 10 | | communities to facilitate the return of vacant, abandoned, and | 11 | | tax-delinquent properties to productive use. Local governments | 12 | | should be empowered to create land banks to acquire, develop, | 13 | | maintain, and dispose of vacant and abandoned properties that | 14 | | present a threat to communities around the State. Abandoned | 15 | | properties may remain in the foreclosure process for a year or | 16 | | more, which harms both communities and financial institutions | 17 | | with a legal interest in the property. The foreclosure process | 18 | | for abandoned properties should be expedited to help return the | 19 | | properties to productive use. | 20 | | Section 3. Short title. This Act may be cited as the | 21 | | Illinois Land Banking Act. | 22 | | Section 5. Definitions. | 23 | | "Authority" means the land bank authority created pursuant | 24 | | to this Act.
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| 1 | | "Governmental unit" means a county or municipality. | 2 | | "Intergovernmental agreement" means a contractual | 3 | | agreement between 2 or more governmental agencies, including, | 4 | | but not limited to, an agreement to jointly exercise any power, | 5 | | privilege, or authority that agencies share in common and that | 6 | | each might exercise separately under this Act.
| 7 | | Section 10. Authorization. A municipality may create a land | 8 | | bank authority with the powers and restrictions specified in | 9 | | this Act. In creating an authority, the municipality shall | 10 | | provide for all of the following: | 11 | | (1) Articles of incorporation for the authority, that | 12 | | shall be filed with the Secretary of State and shall | 13 | | include, in addition to other required and permissible | 14 | | articles, an article specifying that the purpose of the | 15 | | land bank authority is to stabilize communities by: | 16 | | (A) Acquiring property that is vacant or abandoned | 17 | | and in the foreclosure process or is otherwise | 18 | | nonrevenue-generating or nontax-producing. | 19 | | (B) Facilitating the reclamation, rehabilitation, | 20 | | and reutilization of property that is vacant, | 21 | | abandoned, in process of foreclosure, or is otherwise | 22 | | nonrevenue-generating or nontax-producing. | 23 | | (C) Efficiently holding and managing property that | 24 | | is vacant, abandoned, in process of foreclosure, or is | 25 | | otherwise nonrevenue-generating or nontax-producing |
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| 1 | | pending its reclamation, rehabilitation, and | 2 | | reutilization. | 3 | | (2) The size of the board of directors for the | 4 | | authority, which shall be composed of an odd number of | 5 | | members. | 6 | | (3) The qualifications, methods of selection, and | 7 | | terms of office of the board members. | 8 | | Two or more governmental units may elect to enter into an | 9 | | intergovernmental agreement that creates a single land bank to | 10 | | act on behalf of the governmental units, and the agreement | 11 | | shall be authorized by and be in accordance with the provisions | 12 | | of this Section. | 13 | | Section 15. Board of directors; conflicts of interest. The | 14 | | authority shall be governed by a board of directors. The board | 15 | | shall consist of 3 or more directors. The board of directors | 16 | | shall be composed of an odd number of members. The size of the | 17 | | board may be adjusted in accordance with the land bank's | 18 | | by-laws.
| 19 | | Notwithstanding any law to the contrary, any public officer | 20 | | shall be eligible to serve as a board member and the acceptance | 21 | | of the appointment shall neither terminate nor impair such | 22 | | public office. For the purposes of this Section, "public | 23 | | officer" means a person who is elected to a State or local | 24 | | government office.
| 25 | | Any State or local government employee shall be eligible to |
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| 1 | | serve as a board member.
| 2 | | The board of the authority shall meet from time to time as | 3 | | required, and the presence of a majority of the board of | 4 | | directors shall constitute a quorum. A chairperson shall be | 5 | | elected from among the members, and he or she shall execute all | 6 | | deeds, leases, and contracts of the authority when authorized | 7 | | by the board. The board of the authority shall conduct meetings | 8 | | in accordance with the Open Meetings Act. The board of the | 9 | | authority shall adopt a code of ethics for its directors, | 10 | | officers, and employees. The board of the authority shall | 11 | | establish policies and procedures requiring the disclosure of | 12 | | relationships that may give rise to a conflict of interest. | 13 | | Members of a board shall not be liable personally for the | 14 | | obligations of the land bank, and the rights of creditors shall | 15 | | be solely against the land bank. | 16 | | Members of the board must file written statements of | 17 | | economic interest in accordance with Section 4A-101 of the | 18 | | Illinois Governmental Ethics Act. | 19 | | The board of the authority shall require that any member of | 20 | | the board with a direct or indirect interest in any matter | 21 | | disclose the member's interest to the board before the board | 22 | | takes any action on that matter.
| 23 | | Members of the board of directors of an authority shall | 24 | | serve without compensation.
| 25 | | It shall be unlawful for a member of the board, the spouse | 26 | | of a member of the board, or an immediate family member of a |
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| 1 | | member of the board to have or acquire a contract or have or | 2 | | acquire a direct pecuniary interest in a contract with the | 3 | | authority that relates to the authority. Any of these contracts | 4 | | shall be deemed null and void. The limitations shall remain in | 5 | | force for one year after the conclusion of the person's term of | 6 | | office.
| 7 | | If a member of the board, the spouse of a member of the | 8 | | board, or an immediate family member of a member of the board | 9 | | is entitled to receive distributable income of a partnership, | 10 | | association, corporation, or other business entity, then it is | 11 | | unlawful for that partnership, association, corporation, or | 12 | | other business entity to have or acquire a contract or a direct | 13 | | pecuniary interest in a contract with the authority that | 14 | | relates to the authority. Any of these contracts shall be | 15 | | deemed null and void. The limitations shall remain in force for | 16 | | one year after the conclusion of the person's term of office.
| 17 | | Section 20. Powers. The authority may perform any or all | 18 | | of the powers enumerated in this Section, subject to any | 19 | | conditions, restrictions, or limitations of the governmental | 20 | | unit, including the power to: | 21 | | (a) Acquire property pursuant to Section 25 of this | 22 | | Act.
| 23 | | (b) Adopt, amend, and repeal bylaws for the regulation | 24 | | of its affairs and the conduct of its business.
| 25 | | (c) Sue and be sued in its own name and plead and be |
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| 1 | | impleaded, including, but not limited to, defending the | 2 | | authority in an action to clear title to property conveyed | 3 | | by the authority.
| 4 | | (d) Take any action, provide any notice, or instate any | 5 | | proceeding required to clear or quiet title to property | 6 | | held by the authority in order to establish ownership by | 7 | | and vest title to property in the authority.
| 8 | | (e) Be made party to and defend any action or | 9 | | proceeding concerning title claims against property held | 10 | | by the authority.
| 11 | | (f) Subject to the written approval of the board of | 12 | | directors and the municipality that created the authority | 13 | | under this Act, borrow money and issue bonds and notes.
| 14 | | (g) Enter into contracts and other instruments | 15 | | necessary, incidental, or convenient to the performance of | 16 | | its duties and the exercise of its powers, including, but | 17 | | not limited to, intergovernmental agreements, for the | 18 | | joint exercise of power under this Act. | 19 | | (h) Enter into contracts for the management of, the | 20 | | collection of rent from, and the sale of real property held | 21 | | by an authority. | 22 | | (i) Enter into contracts with other entities, public or | 23 | | private, for the provision of all or a portion of the | 24 | | services necessary for the management and operation of the | 25 | | authority.
| 26 | | (j) Solicit and accept gifts, grants, labor, loans, and |
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| 1 | | other aid from any person, the federal government, this | 2 | | State, a political subdivision of this State or any agency | 3 | | of the federal government, or an intergovernmental entity | 4 | | created under the laws of this State or participate in any | 5 | | other way in a program of the federal government, this | 6 | | State, a political subdivision of this State, or an | 7 | | intergovernmental entity created under the laws of this | 8 | | State.
| 9 | | (k) Procure insurance against loss in connection with | 10 | | the property, assets, or activities of the authority.
| 11 | | (l) Control, hold, manage, maintain, operate, repair, | 12 | | lease as lessor, secure, prevent the waste or deterioration | 13 | | of, demolish, and take all other actions necessary to | 14 | | preserve the value of the property it holds or owns.
| 15 | | (m) Remediate environmental contamination on any | 16 | | property held by the authority.
| 17 | | (n) Fix, charge, and collect rents, fees, and charges | 18 | | for use of property under the control of the authority or | 19 | | for services provided by the authority.
| 20 | | (o) Grant or acquire a license, easement, or option | 21 | | with respect to property as the authority determines is | 22 | | reasonably necessary to achieve the purposes of the Act.
| 23 | | (p) Pay any tax or special assessment due on property | 24 | | acquired or owned by the authority.
| 25 | | (q) Subject to the Public Funds Investment Act, invest | 26 | | money of the authority, at the discretion of the board of |
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| 1 | | directors of the authority, in instruments, obligations, | 2 | | securities, or property determined proper by the board of | 3 | | directors of the authority, and name and use depositories | 4 | | for its money. | 5 | | (r)
Employ its own employees or use employees of the | 6 | | authorizing municipality or employees of the parties to | 7 | | intergovernmental agreements.
| 8 | | (s) Employ legal and technical experts, other | 9 | | officers, agents, or employees and pay them from the funds | 10 | | of the authority and determine the qualifications, duties, | 11 | | and compensation of those it employs.
| 12 | | (t) The board of directors of an authority may delegate | 13 | | to one or more of its members, officers, agents, or | 14 | | employees any powers or duties it considers proper.
| 15 | | (u) Reimburse members of the board of directors of the | 16 | | authority for actual and necessary expenses subject to | 17 | | available appropriations.
| 18 | | (v) Contract for goods and services and engage | 19 | | personnel as necessary and engage the services of private | 20 | | consultants, managers, legal counsel, engineers, accounts, | 21 | | and auditors for rendering professional financial | 22 | | assistance and advice payable out of any money available to | 23 | | the authority.
| 24 | | (w) Prepare the reports or plans the authority | 25 | | considers necessary to assist it in the exercise of its | 26 | | powers under this Act and to monitor and evaluate progress |
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| 1 | | under this Act.
| 2 | | (x) Extinguish taxes pursuant to Section 35 of this | 3 | | Act. | 4 | | (y) Convey, sell, transfer, exchange, lease as lessor, | 5 | | or otherwise dispose of property, rights, or interests in | 6 | | property to which the authority holds a legal interest to | 7 | | any public or private person for value determined by the | 8 | | authority. | 9 | | An authority shall not exercise the power of eminent | 10 | | domain. | 11 | | The powers granted by this Act are in addition to the | 12 | | powers granted by any other law, statute, or charter. | 13 | | Section 25. Acquisition of property. The authority may | 14 | | acquire real property or rights or interests in real property | 15 | | by gift, devise, transfer, exchange, foreclosure, purchase, | 16 | | purchase contracts, lease purchase agreements, installment | 17 | | sales contracts, land contracts, or otherwise on terms and | 18 | | conditions and in a manner the authority considers proper. | 19 | | The authority may hold and own in its name any property | 20 | | acquired by it or conveyed to it by this State, a foreclosing | 21 | | governmental unit, a unit of local government, an | 22 | | intergovernmental entity created under the laws of this State, | 23 | | or any other public or private person, including, but not | 24 | | limited to, property without clear title. | 25 | | The authority may only acquire property within the |
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| 1 | | jurisdiction of one of the municipalities granting the | 2 | | authority power under this Act or within the jurisdiction of a | 3 | | governmental entity pursuant to an intergovernmental agreement | 4 | | with that governmental entity. A property outside the corporate | 5 | | limits of a municipality is not considered within the | 6 | | jurisdiction of the municipality until annexation is completed | 7 | | pursuant to Section 7-1-1 of the Illinois Municipal Code. | 8 | | All deeds, mortgages, contracts, leases, purchases, or | 9 | | other agreements regarding property of an authority, including | 10 | | agreements to acquire or dispose of real property, shall be | 11 | | approved by and executed in the name of the authority. | 12 | | The authority shall have the right to purchase properties | 13 | | at tax sales conducted in accordance with Division 3.5 of the | 14 | | Property Tax Code. | 15 | | (1) The authority may tender a bid at a tax sale that | 16 | | is a credit bid, consisting of the obligation of the | 17 | | authority to satisfy the component parts of the bid by | 18 | | payments to the respective political subdivisions. | 19 | | (2) A bid by the authority at a tax sale for the | 20 | | minimum amount shall take priority over all other bids for | 21 | | the same property. | 22 | | Section 30. Financing of land bank operations. A land bank | 23 | | may receive funding through grants and loans from the | 24 | | governmental unit that created the land bank, from other | 25 | | municipalities, from the State of Illinois, from the federal |
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| 1 | | government, and from other public and private sources. | 2 | | A land bank may receive and retain payments for services | 3 | | rendered, for rents and leasehold payments received, for | 4 | | consideration for disposition of real and personal property, | 5 | | for proceeds of insurance coverage for losses incurred, for | 6 | | income from investments, and for any other asset and activity | 7 | | lawfully permitted to a land bank under this Act | 8 | | A municipality may authorize the remittance of a portion of | 9 | | the real property taxes collected on real property conveyed by | 10 | | a land bank authority. Up to 50% of those taxes may be remitted | 11 | | to the land bank authority for up to 5 years after the land | 12 | | bank has completed the conveyance of the property. | 13 | | A land bank shall have power to issue bonds for any of its | 14 | | corporate purposes, the principal and interest of which are | 15 | | payable from its revenues generally. Any of the bonds may be | 16 | | secured by a pledge of any revenues, including grants or | 17 | | contributions, or by a mortgage of any property of the land | 18 | | bank. | 19 | | Bonds issued by the land bank shall be authorized by | 20 | | resolution of the board and shall be limited obligations of the | 21 | | land bank; the principal and interest, costs of issuance, and | 22 | | other costs incidental thereto shall be payable solely from the | 23 | | income and revenue derived from the sale, lease, or other | 24 | | disposition of the assets of the land bank. In the discretion | 25 | | of the land bank, the bonds may be additionally secured by | 26 | | mortgage or other security device covering all or part of the |
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| 1 | | project from which the revenues so pledged may be derived. Any | 2 | | refunding bonds issued shall be payable from any source | 3 | | described in this Section or from the investment of any of the | 4 | | proceeds of the refunding bonds and shall not constitute an | 5 | | indebtedness or pledge of the general credit of any | 6 | | governmental unit or municipality within the meaning of any | 7 | | constitutional or statutory limitation of indebtedness, and | 8 | | each bond shall state that requirement. | 9 | | Section 35. Taxes. When real property is acquired by the | 10 | | authority, and that real property is encumbered by a lien or | 11 | | claim for real property taxes owed to the governmental unit or | 12 | | units that created the land bank, the land bank shall have the | 13 | | power, by resolution of the board, to discharge and extinguish | 14 | | any and all liens and claims. Whenever any real property is | 15 | | acquired by a land bank, and that real property is encumbered | 16 | | by a lien or claim for real property taxes owed to the school | 17 | | district, or to a municipality other than the governmental unit | 18 | | or units that created the land bank, the land bank shall have | 19 | | the power, by resolution of the board, to discharge and | 20 | | extinguish any and all such liens or claims if and only if the | 21 | | school district, or municipality other than the governmental | 22 | | unit or units that created the land bank, and the land bank, | 23 | | have entered into an agreement authorizing such discharge and | 24 | | extinguishment. To the extent necessary and appropriate, the | 25 | | land bank shall file in appropriate public records evidence of |
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| 1 | | the extinguishment and dissolution of the liens or claims. | 2 | | All moneys received by an authority as payment of taxes, | 3 | | penalties, or interest, or from the redemption or sale of | 4 | | property subject to a tax lien of any taxing unit shall be | 5 | | returned to the appropriate local tax collecting unit in which | 6 | | the property is located. | 7 | | Property of an authority is public property devoted to an | 8 | | essential public and governmental function and purpose. Income | 9 | | of the authority is considered to be for a public and | 10 | | governmental purpose. The property of the authority and its | 11 | | income and operation are exempt from all taxes and special | 12 | | assessments of this State and all units of local government. | 13 | | Bonds or notes issued by the authority, and the interest on and | 14 | | income from those bonds and notes, are exempt from all taxation | 15 | | of this State or a unit of local government. | 16 | | Section 40. Proceeds. Except as otherwise provided in this | 17 | | Act, as required by other law, as required under the provisions | 18 | | of a deed, or as an authority otherwise agrees, any proceeds | 19 | | received by the authority may be retained by the authority for | 20 | | the purposes of this Act. | 21 | | Section 45. Record maintenance. The authority shall | 22 | | maintain a written inventory of all property held by the | 23 | | authority. The property shall be inventoried and classified by | 24 | | the authority according to title status and suitability for |
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| 1 | | use. The inventory shall be available for public inspection | 2 | | during regular business hours. | 3 | | For each property held, the authority shall establish and | 4 | | maintain itemized records and accounts reflecting all | 5 | | transactions, expenditures, and revenues relating to all | 6 | | property held by the authority. | 7 | | Section 50. Dissolution. The articles of incorporation | 8 | | shall specify the procedure under which a land bank authority | 9 | | may be dissolved. Upon dissolution of the land bank all real | 10 | | property, personal property, and other assets of the land bank | 11 | | shall become the assets of the governmental unit or units that | 12 | | created the land bank. In the event that 2 or more governmental | 13 | | units create a land bank authority, the withdrawal of one or | 14 | | more governmental units shall not result in the dissolution of | 15 | | the land bank unless the intergovernmental agreement so | 16 | | provides, and there is no governmental unit that desires to | 17 | | continue the existence of the land bank. | 18 | | Section 55. The Illinois Municipal Code is amended by | 19 | | changing Section 11-20-15 and by adding Sections 11-20-15.1 and | 20 | | 11-20-17 as follows: | 21 | | (65 ILCS 5/11-20-15) | 22 | | Sec. 11-20-15. Lien for removal costs. | 23 | | (a) If the municipality incurs a removal cost under Section |
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| 1 | | 11-20-7, 11-20-8, 11-20-12, or 11-20-13 , or 11-20-17 with | 2 | | respect to any underlying parcel, then that cost is a lien upon | 3 | | that underlying parcel. This lien is superior to all other | 4 | | liens and encumbrances, except tax liens and as otherwise | 5 | | provided in subsection (c)
of this Section. | 6 | | (b) To perfect a lien under this Section, the municipality | 7 | | must, within one year after the removal cost is incurred, file | 8 | | notice of lien in the office of the recorder in the county in | 9 | | which the underlying parcel is located or, if the underlying | 10 | | parcel is registered under the Torrens system, in the office of | 11 | | the Registrar of Titles of that county. The notice must consist | 12 | | of a sworn statement setting out: | 13 | | (1) a description of the underlying parcel that | 14 | | sufficiently identifies the parcel; | 15 | | (2) the amount of the removal cost; and | 16 | | (3) the date or dates when the removal cost was | 17 | | incurred by the municipality. | 18 | | If, for any one parcel, the municipality engaged in any | 19 | | removal activity on more than one occasion during the course of | 20 | | one year, then the municipality may combine any or all of the | 21 | | costs of each of those activities into a single notice of lien. | 22 | | (c) A lien under this Section is not valid as to: (i) any | 23 | | purchaser whose rights in and to the underlying parcel arose | 24 | | after the removal activity but before the filing of the notice | 25 | | of lien; or (ii) any mortgagee, judgment creditor, or other | 26 | | lienor whose rights in and to the underlying parcel arose |
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| 1 | | before the filing of the notice of lien. | 2 | | (d) The removal cost is not a lien on the underlying parcel | 3 | | unless a notice is personally served on, or sent by certified | 4 | | mail to, the person to whom was sent the tax bill for the | 5 | | general taxes on the property for the taxable year immediately | 6 | | preceding the removal activities. The notice must be delivered | 7 | | or sent after the removal activities have been performed, and | 8 | | it must: (i) state the substance of this Section and the | 9 | | substance of any ordinance of the municipality implementing | 10 | | this Section; (ii) identify the underlying parcel, by common | 11 | | description; and (iii) describe the removal activity. | 12 | | (e) A lien under this Section may be enforced by | 13 | | proceedings to foreclose as in case of mortgages or mechanics' | 14 | | liens. An action to foreclose a lien under this Section must be | 15 | | commenced within 2 years after the date of filing notice of | 16 | | lien. | 17 | | (f) Any person who performs a removal activity by the | 18 | | authority of the municipality may, in his or her own name, file | 19 | | a lien and foreclose on that lien in the same manner as a | 20 | | municipality under this Section. | 21 | | (g) A failure to file a foreclosure action does not, in any | 22 | | way, affect the validity of the lien against the underlying | 23 | | parcel. | 24 | | (h) Upon payment of the lien cost by the owner of the | 25 | | underlying parcel after notice of lien has been filed, the | 26 | | municipality (or its agent under subsection (f)) shall release |
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| 1 | | the lien, and the release may be filed of record by the owner | 2 | | at his or her sole expense as in the case of filing notice of | 3 | | lien. | 4 | | (i) For the purposes of this Section: | 5 | | "Lien cost" means the removal cost and the filing costs for | 6 | | any notice of lien under subsection (b). | 7 | | "Removal activity" means any activity for which a removal | 8 | | cost was incurred. | 9 | | "Removal cost" means a removal cost as defined under | 10 | | Section 11-20-7, 11-20-8, 11-20-12, or 11-20-13 , or 11-20-17 . | 11 | | "Underlying parcel" means a parcel of private property upon | 12 | | which a removal activity was performed. | 13 | | "Year" means a 365-day period. | 14 | | (j) This Section applies only to liens filed after August | 15 | | 14, 2009 (the effective date of Public Act 96-462).
| 16 | | (k) This Section shall not apply to a lien filed pursuant | 17 | | to Section 11-20-15.1. | 18 | | (Source: P.A. 96-462, eff. 8-14-09; 96-856, eff. 3-1-10; | 19 | | 96-1000, eff. 7-2-10.) | 20 | | (65 ILCS 5/11-20-15.1)
| 21 | | Sec. 11-20-15.1. Lien for costs of removal, securing, and | 22 | | enclosing on abandoned residential property. | 23 | | (a) If the municipality elects to incur a removal cost | 24 | | pursuant to subsection (d) of Section 11-20-7, subsection (d) | 25 | | of Section 11-20-8, subsection (d) of Section 11-20-12, or |
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| 1 | | subsection (e) of Section 11-20-13, or subsection (g) of | 2 | | 11-20-17, or a securing or enclosing cost pursuant to Section | 3 | | 11-31-1.01 with respect to an abandoned residential property, | 4 | | then that cost is a lien upon the underlying parcel of that | 5 | | abandoned residential property. This lien is superior to all | 6 | | other liens and encumbrances, except tax liens and as otherwise | 7 | | 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, subsection (g) of | 24 | | 11-20-17, or Section 11-31-1.01, 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, subsection (g) of | 8 | | 11-20-17, or Section 11-31-1.01 shall apply only to activities | 9 | | performed, costs incurred, and liens filed after the effective | 10 | | date of this 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, | 14 | | subsection (g) of 11-20-17, or 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, subsection (g) of 11-20-17, and Section | 7 | | 11-31-1.01 of this Code. | 8 | | "MERS program" means the nationwide Mortgage Electronic | 9 | | Registration System approved by Fannie Mae, Freddie Mac, and | 10 | | Ginnie Mae that has been created by the mortgage banking | 11 | | industry with the mission of registering every mortgage loan in | 12 | | the United States to lawfully make information concerning each | 13 | | residential mortgage loan and the property securing it | 14 | | available by Internet access to mortgage originators, | 15 | | servicers, warehouse lenders, wholesale lenders, retail | 16 | | lenders, document custodians, settlement agents, title | 17 | | companies, insurers, investors, county recorders, units of | 18 | | local government, and consumers. | 19 | | (i) Any entity or person who performs a removal, securing, | 20 | | or enclosing activity pursuant to the authority of a | 21 | | municipality under subsection (d) of Section 11-20-7, | 22 | | subsection (d) of Section 11-20-8, subsection (d) of Section | 23 | | 11-20-12, subsection (e) of Section 11-20-13, subsection (g) of | 24 | | Section 11-20-17, or Section 11-31-1.01, may, in its, his, or | 25 | | her own name, file a lien pursuant to subsection (b) of this | 26 | | Section and appear in a foreclosure action on that lien |
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| 1 | | pursuant to subsection (d) of this Section in the place of the | 2 | | municipality, provided that the municipality shall remain | 3 | | subject to subsection (c) of this Section, and such party shall | 4 | | be subject to all of the provisions in this Section as if such | 5 | | party were the municipality. | 6 | | (i-5) All amounts received by the municipality for costs | 7 | | incurred pursuant to this Section
for which the municipality | 8 | | has been reimbursed under Section 7.31 of the Illinois Housing | 9 | | Development Act
shall be remitted to the State Treasurer for | 10 | | deposit into the Abandoned Residential Property
Municipality | 11 | | Relief Fund. | 12 | | (j) If prior to subsection (d) of Section 11-20-7, | 13 | | subsection (d) of Section 11-20-8, subsection (d) of Section | 14 | | 11-20-12, and subsection (e) of Section 11-20-13 , and | 15 | | subsection (g) of Section 11-20-17, becoming inoperative a lien | 16 | | is filed pursuant to any of those subsections, then the lien | 17 | | shall remain in full force and effect after the subsections | 18 | | have become inoperative, subject to all of the provisions of | 19 | | this Section. If prior to the repeal of Section 11-31-1.01 a | 20 | | lien is filed pursuant to Section 11-31-1.01, then the lien | 21 | | shall remain in full force and effect after the repeal of | 22 | | Section 11-31-1.01, subject to all of the provisions of this | 23 | | Section.
| 24 | | (Source: P.A. 96-856, eff. 3-1-10; 96-1419, eff. 10-1-10.) | 25 | | (65 ILCS 5/11-20-17 new) |
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| 1 | | Sec. 11-20-17. Vacant and abandoned property ordinances. | 2 | | (a) For the purposes of minimizing the hazards to persons | 3 | | and property resulting from vacant and abandoned property, the | 4 | | corporate authority of each municipality may prescribe rules, | 5 | | regulations, or ordinances for the maintenance of vacant and | 6 | | abandoned property. The corporate authorities of a | 7 | | municipality may impose registration fees for vacant and | 8 | | abandoned property and fines for failure to comply with the | 9 | | rules, regulations, or ordinances enacted pursuant to this | 10 | | Section. | 11 | | (b) Pursuant to such rules, regulations, or ordinances, | 12 | | municipalities may hold responsible for failure to maintain or | 13 | | secure a vacant and abandoned property (i) any owner of the | 14 | | property, (ii) any beneficiary or trustee who holds a deed of | 15 | | trust on the property, or (iii) any mortgagee who holds a | 16 | | mortgage on the property. | 17 | | (c) A beneficiary, trustee, or mortgagee seeking to comply | 18 | | with rules, regulations, or ordinances regarding the | 19 | | maintenance or security of vacant property may enter that | 20 | | property to remedy any potential violation of a rule, | 21 | | regulation, or ordinance to maintain or secure vacant property, | 22 | | provided such entry is not barred by an automatic stay issued | 23 | | by a bankruptcy court. | 24 | | (d) Beneficiaries, trustees, mortgagees, and their agents | 25 | | and assignees shall be held harmless from and against all | 26 | | claims of negligence, civil trespass, and criminal trespass in |
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| 1 | | connection with compliance activity under the rules, | 2 | | regulations, and ordinances for the maintenance or security of | 3 | | vacant property, provided that the person authorizing or | 4 | | engaging in the compliance activity has (i) made a good faith | 5 | | effort to identify any owner and occupant of the property, and | 6 | | (ii) made a good faith effort to contact any owner and occupant | 7 | | in a manner reasonably calculated to give the owner and | 8 | | occupant notice that the compliance activity is imminent. | 9 | | (e) For the purpose of this Section, "owner" means the | 10 | | legal or beneficial owner of an improved or unimproved parcel | 11 | | of real estate. | 12 | | (f) For the purpose of this Section, "mortgagee" means (i) | 13 | | the holder of an indebtedness, obligee of a non-monetary | 14 | | obligation secured by a mortgage, any assignee of the mortgage, | 15 | | or any person designated or authorized to act on behalf of such | 16 | | holder, (ii) any person or entity who previously initiated a | 17 | | foreclosure on the vacant property or obtained a foreclosure | 18 | | judgment against the vacant property if the deed to vacant | 19 | | property has not been transferred to the purchaser at the | 20 | | judicial sale, or (iii) any person claiming through a mortgagee | 21 | | as successor. | 22 | | (g) For the purpose of this section, "vacant property" | 23 | | means any property having complete or incomplete structures | 24 | | that are empty or otherwise uninhabited. | 25 | | (h) For the purpose of this Section, "removal cost" means | 26 | | the total value of fees and fines imposed pursuant to rules, |
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| 1 | | regulations, or ordinances regarding maintenance, security, or | 2 | | demolition of vacant property. | 3 | | (i) To enforce fees and fines pursuant to this Section, a | 4 | | municipality may: (i) elect to obtain a lien upon the | 5 | | underlying property for the removal cost in accordance with | 6 | | Section 11-20-15; (ii) in the case of an abandoned residential | 7 | | property as defined in Section 11-20-15.1, elect to obtain a | 8 | | lien for the removal cost pursuant to Section 11-20-15.1, in | 9 | | which case the provisions of Section 11-20-15.1 shall be the | 10 | | exclusive remedy for the removal cost; or (iii) elect to obtain | 11 | | a lien for the removal cost by exercising any enforcement | 12 | | actions available under its police powers.
| 13 | | Section 60. The Code of Civil Procedure is amended by | 14 | | changing Sections 15-1512 and by adding Section 15-1510.5 as | 15 | | follows: | 16 | | (735 ILCS 5/15-1510.5 new) | 17 | | Sec. 15-1510.5. Mortgage Foreclosure Prevention Fee. | 18 | | (a) Definitions. | 19 | | "Civil legal services provider" means a not-for-profit | 20 | | corporation that (1) employs one or more attorneys who are | 21 | | licensed to practice law in the State of Illinois and who | 22 | | directly provide civil legal services or (2) is established | 23 | | for the purpose of providing civil legal services by an | 24 | | organized panel of pro bono attorneys. |
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| 1 | | "Community-based outreach" means in-person contact | 2 | | with mortgagors in foreclosure intended to inform such | 3 | | mortgagors about the foreclosure process and the | 4 | | mortgagors' rights and options for assistance in the | 5 | | process, including the availability of mortgage | 6 | | foreclosure housing counseling and mortgage foreclosure | 7 | | legal services. | 8 | | "Comprehensive court-sponsored foreclosure mediation | 9 | | programs" means programs, administered at least in part by | 10 | | an Illinois Circuit Court, that offer mediation in actions | 11 | | for foreclosure. Programs shall provide mortgagors access | 12 | | to housing counseling and legal services and include | 13 | | community-based outreach. | 14 | | "Governmental agency" means any State, county, or | 15 | | local government body in Illinois, and any agency or | 16 | | instrumentality thereof, corporate or otherwise. | 17 | | "HUD-approved housing counseling agency" means a | 18 | | mortgage foreclosure housing counseling agency that is | 19 | | approved by the United States Department of Housing and | 20 | | Urban Development, or any successor agency. | 21 | | "Mortgage foreclosure housing counseling" means | 22 | | housing counseling provided by a mortgage foreclosure | 23 | | counselor that works for a HUD-approved housing counseling | 24 | | agency. | 25 | | "Mortgage foreclosure legal services" means legal | 26 | | services to mortgagors with an interest in a property |
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| 1 | | subject to a mortgage foreclosure proceeding under Article | 2 | | XV of the Code of Civil Procedure provided by a civil legal | 3 | | service attorney that works for a civil legal services | 4 | | provider. | 5 | | "Mortgage Foreclosure Prevention Fund" means a special | 6 | | fund used expressly to support mortgage foreclosure | 7 | | prevention programs. | 8 | | (b) There shall be a $500 Mortgage Foreclosure Prevention | 9 | | Fee collected from the proceeds resulting from a judicial sale | 10 | | of residential real estate conducted pursuant to a foreclosure | 11 | | judgment under this Article. The fee shall be remitted to the | 12 | | Department of Revenue by the purchaser at the time of sale and | 13 | | the Department shall deposit these amounts into the Mortgage | 14 | | Foreclosure Prevention Fund. Amounts in the Fund may be | 15 | | expended only for eligible activities described in this | 16 | | Section. | 17 | | Eligible foreclosure mitigation activities are mortgage | 18 | | foreclosure housing counseling, mortgage foreclosure legal | 19 | | services, community-based outreach, and administration of | 20 | | comprehensive court-sponsored foreclosure mediation programs. | 21 | | Eligible entities are HUD-approved housing counseling | 22 | | agencies, civil legal services providers, not-for-profit | 23 | | corporations, and governmental agencies. | 24 | | (c) All of the moneys in the Fund collected in counties | 25 | | with a population greater than 3,000,000 shall be used to make | 26 | | grants to eligible entities for eligible foreclosure |
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| 1 | | mitigation activities to be carried out in coordination with | 2 | | comprehensive court-sponsored foreclosure mediation programs | 3 | | serving residents of the county in which the funds were | 4 | | collected. At least 75% of those moneys shall be used to make | 5 | | grants to eligible entities for mortgage foreclosure housing | 6 | | counseling or mortgage foreclosure legal services. | 7 | | (d) Moneys in the Fund collected in counties with a | 8 | | population less than 3,000,000 shall be used to make grants to | 9 | | eligible entities for eligible foreclosure mitigation | 10 | | activities serving residents of the county in which the funds | 11 | | were collected. At least 75% of those moneys shall be used to | 12 | | make grants to eligible entities for mortgage foreclosure | 13 | | housing counseling or mortgage foreclosure legal services. | 14 | | (e) All grants shall be made by the Illinois Housing | 15 | | Development Authority (IDHA). IHDA may prescribe reasonable | 16 | | rules for the administration of this Section.
| 17 | | (735 ILCS 5/15-1512) (from Ch. 110, par. 15-1512)
| 18 | | Sec. 15-1512. Application of Proceeds of Sale and Surplus. | 19 | | The proceeds
resulting from a sale of real estate under this | 20 | | Article shall be applied
in the following order:
| 21 | | (a) the reasonable expenses of sale;
| 22 | | (b) the reasonable expenses of securing possession before | 23 | | sale, holding,
maintaining, and preparing the real estate for | 24 | | sale, including payment of
taxes and other governmental | 25 | | charges, premiums on hazard and liability
insurance, |
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| 1 | | receiver's and management fees, the Mortgage Foreclosure | 2 | | Prevention Fee, and, to the extent provided
for in the mortgage
| 3 | | or other recorded agreement and not prohibited by law, | 4 | | reasonable
attorneys' fees, payments made pursuant to Section | 5 | | 15-1505 and other legal
expenses incurred by the mortgagee;
| 6 | | (c) if the sale was pursuant to judicial foreclosure, | 7 | | satisfaction of
claims in the order of priority adjudicated in | 8 | | the judgment of foreclosure
or order confirming the sale; and
| 9 | | (d) remittance of any surplus to be held by the person | 10 | | appointed by
the court to conduct the
sale until further order | 11 | | of the court. If there is a surplus, such person
conducting the | 12 | | sale shall send written notice to all parties to the
proceeding | 13 | | advising them of the amount of the surplus, and that the | 14 | | surplus
shall be held until a party obtains a court order for | 15 | | its distribution or
until, in the absence of an order, the | 16 | | surplus is forfeited to the State.
| 17 | | (Source: P.A. 86-974.)
| 18 | | Section 65. The State Finance Act is amended by adding | 19 | | Section 5.786 as follows: | 20 | | (30 ILCS 105/5.786 new) | 21 | | Sec. 5.786. The Mortgage Foreclosure Prevention Fund.
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.".
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