Illinois General Assembly - Full Text of SB1740
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Full Text of SB1740  98th General Assembly


Sen. Donne E. Trotter

Filed: 4/1/2014





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2    AMENDMENT NO. ______. Amend Senate Bill 1740, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 5. The Property Tax Code is amended by adding
6Section 15-174 as follows:
7    (35 ILCS 200/15-174 new)
8    Sec. 15-174. Community stabilization assessment freeze
9pilot program.
10    (a) Beginning January 1, 2015 and ending June 30, 2029 the
11chief county assessment officer of any county with 3,000,000 or
12more inhabitants may reduce the assessed value of improvements
13to residential real property in accordance with subsection (b)
14for 10 taxable years after the improvements are put in service,
15if and only if all of the following factors have been met:
16        (1) the improvements are residential;



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1        (2) the parcel was purchased or otherwise conveyed to
2    the taxpayer after January 1 of the taxable year;
3        (3) the parcel is located in a targeted area of a
4    county with 3,000,000 or more inhabitants;
5        (4) for single family homes, the taxpayer occupies the
6    improvements on the parcel as his or her primary residence;
7    for residences of one to 6 units that will not be
8    owner-occupied, the taxpayer replaces 2 primary building
9    systems as outlined in this Section;
10        (5) the transfer from the holder of the prior mortgage
11    to the taxpayer was an arm's length transaction, in that
12    the taxpayer has no legal relationship to the holder of the
13    prior mortgage;
14        (6) an existing residential dwelling structure of no
15    more than 6 units on the parcel was unoccupied at the time
16    of conveyance, or the parcel was ordered by a court of
17    competent jurisdiction to be deconverted in accordance
18    with the provisions governing distressed condominiums as
19    provided in the Condominium Property Act; and
20        (7) the parcel is clear of unreleased liens and has no
21    outstanding tax liabilities attached against it.
22    To be eligible for the benefit conferred by this Section,
23residential units must be owner-occupied or in need of
24substantial rehabilitation. "Substantial rehabilitation"
25means, at a minimum, compliance with local building codes and
26the replacement or renovation of at least 2 primary building



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1systems. Although the cost of each primary building system may
2vary, the combined expenditure for making the building
3compliant with local codes and replacing primary building
4systems must be at least $5 per square foot, adjusted by the
5Consumer Price Index for All Urban Consumers, as published
6annually by the U.S. Department of Labor. "Primary building
7systems", together with their related rehabilitations,
8specifically approved for this program are:
9        (1) Electrical. All electrical work must comply with
10    applicable codes, it may consist of a combination of any of
11    the following alternatives:
12            (A) installing individual equipment and appliance
13        branch circuits as required by code (the minimum being
14        a kitchen appliance branch circuit);
15            (B) installing a new emergency service, including
16        emergency lighting with all associated conduits and
17        wiring;
18            (C) rewiring all existing feeder conduits ("home
19        runs") from the main switchgear to apartment area
20        distribution panels;
21            (D) installing new in-wall conduits for
22        receptacles, switches, appliances, equipment, and
23        fixtures;
24            (E) replacing power wiring for receptacles,
25        switches, appliances, equipment, and fixtures;
26            (F) installing new light fixtures throughout the



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1        building including closets and central areas;
2            (G) replacing, adding, or doing work as necessary
3        to bring all receptacles, switches, and other
4        electrical devices into code compliance;
5            (H) installing a new main service, including
6        conduit, cables into the building, and main disconnect
7        switch; and
8            (I) installing new distribution panels, including
9        all panel wiring, terminals, circuit breakers, and all
10        other panel devices.
11        (2) Heating. All heating work must comply with
12    applicable codes, it may consist of a combination of any of
13    the following alternatives:
14            (A) installing a new system to replace one of the
15        following heat distribution systems: (i) piping and
16        heat radiating units, including new main line venting
17        and radiator venting; or (ii) duct work, diffusers, and
18        cold air returns; or (iii) any other type of existing
19        heat distribution and radiation/diffusion components;
20        or
21            (B) installing a new system to replace one of the
22        following heat generating units: (i) hot water/steam
23        boiler; (ii) gas furnace; or (iii) any other type of
24        existing heat generating unit.
25        (3) Plumbing. All plumbing work must comply with
26    applicable codes. Replace all or a part of the in-wall



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1    supply and waste plumbing; however, main supply risers,
2    waste stacks and vents, and code-conforming waste lines
3    need not be replaced.
4        (4) Roofing. All roofing work must comply with
5    applicable codes, it may consist of either of the following
6    alternatives, separately or in combination:
7            (A) replacing all rotted roof decks and
8        insulation; or
9            (B) replacing or repairing leaking roof membranes
10        (10% is the suggested minimum replacement of
11        membrane); restoration of the entire roof is an
12        acceptable substitute for membrane replacement.
13        (5) Exterior doors and windows. Replace the exterior
14    doors and windows. Renovation of ornate entry doors is an
15    acceptable substitute for replacement.
16        (6) Floors, walls, and ceilings. Finishes must be
17    replaced or covered over with new material. Acceptable
18    replacement or covering materials are as follows:
19            (A) floors must have new carpeting, vinyl tile,
20        ceramic, refurbished wood finish, or a similar
21        substitute;
22            (B) walls must have new drywall, including joint
23        taping and painting; or
24            (C) new ceilings must be either drywall, suspended
25        type, or a similar substitute.
26        (7) Exterior walls.



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1            (A) replace loose or crumbling mortar and masonry
2        with new material;
3            (B) replace or paint wall siding and trim as
4        needed;
5            (C) bring porches and balconies to a sound
6        condition; or
7            (D) any combination of (A), (B), and (C).
8        (8) Elevators. Where applicable, at least 4 of the
9    following 7 alternatives must be accomplished:
10            (A) replace or rebuild the machine room controls
11        and refurbish the elevator machine (or equivalent
12        mechanisms in the case of hydraulic elevators);
13            (B) replace hoistway electro-mechanical items
14        including: ropes, switches, limits, buffers, levelers,
15        and deflector sheaves (or equivalent mechanisms in the
16        case of hydraulic elevators);
17            (C) replace hoistway wiring;
18            (D) replace door operators and linkage;
19            (E) replace door panels at each opening;
20            (F) replace hall stations, car stations, and
21        signal fixtures; or
22            (G) rebuild the car shell and refinish the
23        interior.
24        (9) Health and safety.
25            (A) install or replace fire suppression systems;
26            (B) install or replace security systems; or



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1            (C) environmental remediation of lead-based paint,
2        asbestos, leaking underground storage tanks, or radon.
3        (10) Energy conservation improvements undertaken to
4    limit the amount of solar energy absorbed by a building's
5    roof or to reduce energy use for the property, including
6    any of the following activities:
7            (A) installing or replacing reflective roof
8        coatings (flat roofs);
9            (B) installing or replacing R-38 roof insulation;
10            (C) installing or replacing R-19 perimeter wall
11        insulation;
12            (D) installing or replacing insulated entry doors;
13            (E) installing or replacing Low E, insulated
14        windows;
15            (F) installing or replacing low-flow plumbing
16        fixtures;
17            (G) installing or replacing 90% sealed combustion
18        heating systems;
19            (H) installing or replacing direct exhaust hot
20        water heaters;
21            (I) installing or replacing mechanical ventilation
22        to exterior for kitchens and baths;
23            (J) installing or replacing Energy Star
24        appliances;
25            (K) installing low VOC interior paints on interior
26        finishes;



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1            (L) installing or replacing fluorescent lighting
2        in common areas; or
3            (M) installing or replacing grading and
4        landscaping to promote on-site water retention.
5    (b) For the first 7 years after the improvements are placed
6in service, those improvements shall be valued at 10% of their
7assessed value. The chief county assessment officer shall
8increase the assessed value of the improvements to 35% of the
9assessed value of those improvements for the eighth taxable
10year, 65% of the assessed value of those improvements for the
11ninth taxable year, and 100% of the assessed value of those
12improvements for the tenth taxable year, if and only if all of
13the factors in subsection (a) of this Section continue to be
14met. The benefit will cease after the improvements have been
15assessed at 100% of the assessed value on the tenth taxable
17    (c) In order to receive benefits under this Section, in
18addition to any information required by the chief county
19assessment officer, the taxpayer must also submit the following
20information to the chief county assessment officer for review:
21        (1) the owner's name;
22        (2) the postal address and permanent index number of
23    the parcel;
24        (3) a deed or other instrument conveying the parcel to
25    the current owner;
26        (4) certification that the parcel was unoccupied at the



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1    time of conveyance to the current owner;
2        (5) evidence that the parcel is clear of unreleased
3    liens and has no outstanding tax liabilities attached
4    against it; and
5        (6) any additional information as reasonably required
6    by the chief county assessment officer.
7    (d) The chief county assessment officer shall notify the
8taxpayer as to whether or not the parcel meets the requirements
9of this Section. If the parcel does not meet the requirements
10of this Section, the chief county assessment officer shall
11provide written notice of any deficiencies to the taxpayer, who
12will then have 14 days from the date of notification to provide
13supplemental information showing compliance with this Section.
14If the taxpayer does not exercise this right to cure the
15deficiency, or if the information submitted, in the sole
16judgment of the chief county assessment officer, is
17insufficient to meet the requirements of this Section, the
18chief county assessment officer shall provide a written
19explanation of the reasons for denial. A taxpayer may
20subsequently reapply for the benefit if the deficiencies are
21cured at a later date, but no later than 2019. The chief county
22assessment officer may charge a reasonable application fee to
23offset the administrative expenses associated with the
25    (e) The benefit conferred by this Section is limited as



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1        (1) The owner is eligible to apply for the benefit
2    conferred by this Section beginning January 1, 2015 through
3    December 31, 2019. If approved, the reduction will be
4    effective for the current taxable year, which will be
5    reflected in the tax bill issued in the following taxable
6    year.
7        (2) The reduction outlined in this Section shall
8    continue for a period of 10 years, and may not be extended
9    or renewed for any additional period.
10        (3) At the completion of the assessment freeze period
11    described here, the entire parcel will be assessed as
12    otherwise provided in this Code.
13        (4) The benefit conferred by this Section will continue
14    in the event of a transfer of ownership during the period
15    of the assessment freeze, so long as all requirements of
16    this Section continue to be met.
17    (f) If the taxpayer does not occupy or intend to occupy the
18residential dwelling as his or her principal residence, the
19taxpayer must:
20        (1) immediately secure the residential dwelling in
21    accordance with the requirements of this Section;
22        (2) complete sufficient rehabilitation to bring the
23    improvements into compliance with local building codes,
24    including, without limitation, regulations concerning
25    leadbased paint and asbestos remediation; and
26        (3) complete rehabilitation within 18 months of



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1    conveyance.
2    (g) For the purposes of this Section,
3        "Secure" means that:
4            (1) all doors and windows are closed and secured
5        using secure doors, windows without broken or cracked
6        panes, commercial-quality metal security panels filled
7        with like-kind material as the surrounding wall, or
8        plywood installed and secured in accordance with local
9        ordinances; at least one building entrance shall be
10        accessible from the exterior and secured with a door
11        that is locked to allow access only to authorized
12        persons;
13            (2) all grass and weeds on the vacant residential
14        property are maintained below 10 inches in height,
15        unless a local ordinance imposes a lower height;
16            (3) debris, trash, and litter on any portion of the
17        exterior of the vacant residential property is removed
18        in compliance with local ordinance;
19            (4) fences, gates, stairs, and steps that lead to
20        the main entrance of the building are maintained in a
21        structurally sound and reasonable manner;
22            (5) the property is winterized when appropriate;
23            (6) the exterior of the improvements are
24        reasonably maintained to ensure the safety of
25        passersby; and
26            (7) vermin and pests are regularly exterminated on



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1        the exterior and interior of the property.
2        "Targeted Area" means a census tract in a county of
3    3,000,000 or more where more than 10% of the residences
4    have had at least one foreclosure filing since the 2005
5    calendar year, according to the 2010 federal decennial
6    census.".