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Full Text of SB1380  99th General Assembly

SB1380 99TH GENERAL ASSEMBLY

  
  

 


 
99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1380

 

Introduced 2/20/2015, by Sen. David Koehler

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-20-15
65 ILCS 5/11-20-15.1
65 ILCS 5/11-31-1  from Ch. 24, par. 11-31-1

    Amends the Municipal Code. Provides that liens obtained for the removal of neglected weeds, grass, trees, and bushes; pest extermination; removal of infected trees; removal of garbage, debris, and graffiti; the costs of removal, securing, and enclosing on abandoned residential property; and the cost of the demolition, repair, enclosure, or removal of dangerous and unsafe buildings or uncompleted and abandoned buildings shall also affix to all real property of the property owner or owners. Further provides that the notice requirements apply to liens against all real property of the property owner.


LRB099 09371 AWJ 29577 b

 

 

A BILL FOR

 

SB1380LRB099 09371 AWJ 29577 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-20-15, 11-20-15.1, and 11-31-1 as
6follows:
 
7    (65 ILCS 5/11-20-15)
8    Sec. 11-20-15. Lien for removal costs.
9    (a) If the municipality incurs a removal cost under Section
1011-20-7, 11-20-8, 11-20-12, or 11-20-13 with respect to any
11underlying parcel, then that cost is a lien upon that
12underlying parcel and all other real property of the property
13owner or owners. This lien is superior to all other liens and
14encumbrances, except tax liens and as otherwise provided in
15subsection (c) of this Section.
16    (b) To perfect a lien under this Section, the municipality
17must, within one year after the removal cost is incurred, file
18notice of lien in the office of the recorder in the county in
19which the underlying parcel is located or, if the underlying
20parcel is registered under the Torrens system, in the office of
21the Registrar of Titles of that county. The notice must consist
22of a sworn statement setting out:
23        (1) a description of the underlying parcel that

 

 

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1    sufficiently identifies the parcel;
2        (2) the amount of the removal cost; and
3        (3) the date or dates when the removal cost was
4    incurred by the municipality.
5    If, for any one parcel, the municipality engaged in any
6removal activity on more than one occasion during the course of
7one year, then the municipality may combine any or all of the
8costs of each of those activities into a single notice of lien.
9    (c) A lien under this Section is not valid as to: (i) any
10purchaser whose rights in and to the underlying parcel arose
11after the removal activity but before the filing of the notice
12of lien; or (ii) any mortgagee, judgment creditor, or other
13lienor whose rights in and to the underlying parcel arose
14before the filing of the notice of lien.
15    (d) The removal cost is not a lien on the underlying parcel
16or other real property of the property owner or owners unless a
17notice is personally served on, or sent by certified mail to,
18the person to whom was sent the tax bill for the general taxes
19on the property for the taxable year immediately preceding the
20removal activities. The notice must be delivered or sent after
21the removal activities have been performed, and it must: (i)
22state the substance of this Section and the substance of any
23ordinance of the municipality implementing this Section; (ii)
24identify the underlying parcel, by common description; and
25(iii) describe the removal activity.
26    (e) A lien under this Section may be enforced by

 

 

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1proceedings to foreclose as in case of mortgages or mechanics'
2liens. An action to foreclose a lien under this Section must be
3commenced within 2 years after the date of filing notice of
4lien.
5    (f) Any person who performs a removal activity by the
6authority of the municipality may, in his or her own name, file
7a lien and foreclose on that lien in the same manner as a
8municipality under this Section.
9    (g) A failure to file a foreclosure action does not, in any
10way, affect the validity of the lien against the underlying
11parcel or other parcels owned by the property owner or owners.
12    (h) Upon payment of the lien cost by the owner of the
13underlying parcel after notice of lien has been filed, the
14municipality (or its agent under subsection (f)) shall release
15the lien, and the release may be filed of record by the owner
16at his or her sole expense as in the case of filing notice of
17lien.
18    (i) For the purposes of this Section:
19    "Lien cost" means the removal cost and the filing costs for
20any notice of lien under subsection (b).
21    "Removal activity" means any activity for which a removal
22cost was incurred.
23    "Removal cost" means a removal cost as defined under
24Section 11-20-7, 11-20-8, 11-20-12, or 11-20-13.
25    "Underlying parcel" means a parcel of private property upon
26which a removal activity was performed.

 

 

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1    "Year" means a 365-day period.
2    (j) This Section applies only to liens filed after August
314, 2009 (the effective date of Public Act 96-462).
4    (k) This Section shall not apply to a lien filed pursuant
5to Section 11-20-15.1.
6(Source: P.A. 96-462, eff. 8-14-09; 96-856, eff. 3-1-10;
796-1000, eff. 7-2-10.)
 
8    (65 ILCS 5/11-20-15.1)
9    Sec. 11-20-15.1. Lien for costs of removal, securing, and
10enclosing on abandoned residential property.
11    (a) If the municipality elects to incur a removal cost
12pursuant to subsection (d) of Section 11-20-7, subsection (d)
13of Section 11-20-8, subsection (d) of Section 11-20-12, or
14subsection (e) of Section 11-20-13, or a securing or enclosing
15cost pursuant to Section 11-31-1.01 with respect to an
16abandoned residential property, then that cost is a lien upon
17the underlying parcel of that abandoned residential property
18and all real property of the property owner or owners. This
19lien is superior to all other liens and encumbrances, except
20tax liens and as otherwise provided in this Section.
21    (b) To perfect a lien under this Section, the municipality
22must, within one year after the cost is incurred for the
23activity, file notice of the lien in the office of the recorder
24in the county in which the abandoned residential property or
25any real property of the property owner or owners is located

 

 

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1or, if the abandoned residential property or any real property
2of the property owner or owners is registered under the Torrens
3system, in the office of the Registrar of Titles of that
4county, a sworn statement setting out:
5        (1) a description of the abandoned residential
6    property that sufficiently identifies the parcel;
7        (2) the amount of the cost of the activity;
8        (3) the date or dates when the cost for the activity
9    was incurred by the municipality; and
10        (4) a statement that the lien has been filed pursuant
11    to subsection (d) of Section 11-20-7, subsection (d) of
12    Section 11-20-8, subsection (d) of Section 11-20-12,
13    subsection (e) of Section 11-20-13, or Section 11-31-1.01,
14    as applicable.
15    If, for any abandoned residential property, the
16municipality engaged in any activity on more than one occasion
17during the course of one year, then the municipality may
18combine any or all of the costs of each of those activities
19into a single notice of lien.
20    (c) To enforce a lien pursuant to this Section, the
21municipality must maintain contemporaneous records that
22include, at a minimum: (i) a dated statement of finding by the
23municipality that the property for which the work is to be
24performed has become abandoned residential property, which
25shall include (1) the date when the property was first known or
26observed to be unoccupied by any lawful occupant or occupants,

 

 

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1(2) a description of the actions taken by the municipality to
2contact the legal owner or owners of the property identified on
3the recorded mortgage, or, if known, any agent of the owner or
4owners, including the dates such actions were taken, and (3) a
5statement that no contacts were made with the legal owner or
6owners or their agents as a result of such actions, (ii) a
7dated certification by an authorized official of the
8municipality of the necessity and specific nature of the work
9to be performed, (iii) a copy of the agreement with the person
10or entity performing the work that includes the legal name of
11the person or entity, the rate or rates to be charged for
12performing the work, and an estimate of the total cost of the
13work to be performed, (iv) detailed invoices and payment
14vouchers for all payments made by the municipality for such
15work, and (v) a statement as to whether the work was engaged
16through a competitive bidding process, and if so, a copy of all
17proposals submitted by the bidders for such work.
18    (d) A lien under this Section shall be enforceable
19exclusively at the hearing for confirmation of sale of the
20abandoned residential property that is held pursuant to
21subsection (b) of Section 15-1508 of the Code of Civil
22Procedure and shall be limited to a claim of interest in the
23proceeds of the sale and subject to the requirements of this
24Section. Any mortgagee who holds a mortgage on the property, or
25any beneficiary or trustee who holds a deed of trust on the
26property, may contest the lien or the amount of the lien at any

 

 

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1time during the foreclosure proceeding upon motion and notice
2in accordance with court rules applicable to motions generally.
3Grounds for forfeiture of the lien or the superior status of
4the lien granted by subsection (a) of this Section shall
5include, but not be limited to, a finding by the court that:
6(i) the municipality has not complied with subsection (b) or
7(c) of this Section, (ii) the scope of the work was not
8reasonable under the circumstances, (iii) the work exceeded the
9authorization for the work to be performed under subsection (a)
10of Section 11-20-7, subsection (a) of Section 11-20-8,
11subsection (a) of Section 11-20-12, subsection (a) of Section
1211-20-13, or subsection (a) of Section 11-31-1.01, as
13applicable, or (iv) the cost of the services rendered or
14materials provided was not commercially reasonable. Forfeiture
15of the superior status of the lien otherwise granted by this
16Section shall not constitute a forfeiture of the lien as a
17subordinate lien.
18    (e) Upon payment of the amount of a lien filed under this
19Section by the mortgagee, servicer, owner, or any other person,
20the municipality shall release the lien, and the release may be
21filed of record by the person making such payment at the
22person's sole expense as in the case of filing notice of lien.
23    (f) Notwithstanding any other provision of this Section, a
24municipality may not file a lien pursuant to this Section for
25activities performed pursuant to Section 11-20-7, Section
2611-20-8, Section 11-20-12, Section 11-20-13, or Section

 

 

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111-31-1.01, if: (i) the mortgagee or servicer of the abandoned
2residential property has provided notice to the municipality
3that the mortgagee or servicer has performed or will perform
4the remedial actions specified in the notice that the
5municipality otherwise might perform pursuant to subsection
6(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
7subsection (d) of Section 11-20-12, subsection (e) of Section
811-20-13, or Section 11-31-1.01, provided that the remedial
9actions specified in the notice have been performed or are
10performed or initiated in good faith within 30 days of such
11notice; or (ii) the municipality has provided notice to the
12mortgagee or servicer of a problem with the property requiring
13the remedial actions specified in the notice that the
14municipality otherwise would perform pursuant to subsection
15(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
16subsection (d) of Section 11-20-12, subsection (e) of Section
1711-20-13, or Section 11-31-1.01, and the mortgagee or servicer
18has performed or performs or initiates in good faith the
19remedial actions specified in the notice within 30 days of such
20notice.
21    (g) This Section and subsection (d) of Section 11-20-7,
22subsection (d) of Section 11-20-8, subsection (d) of Section
2311-20-12, subsection (e) of Section 11-20-13, or Section
2411-31-1.01 shall apply only to activities performed, costs
25incurred, and liens filed after the effective date of this
26amendatory Act of the 96th General Assembly.

 

 

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1    (h) For the purposes of this Section and subsection (d) of
2Section 11-20-7, subsection (d) of Section 11-20-8, subsection
3(d) of Section 11-20-12, subsection (e) of Section 11-20-13, or
4Section 11-31-1.01:
5    "Abandoned residential property" means any type of
6permanent residential dwelling unit, including detached single
7family structures, and townhouses, condominium units and
8multifamily rental apartments covering the entire property,
9and manufactured homes treated under Illinois law as real
10estate and not as personal property, that has been unoccupied
11by any lawful occupant or occupants for at least 90 days, and
12for which after such 90 day period, the municipality has made
13good faith efforts to contact the legal owner or owners of the
14property identified on the recorded mortgage, or, if known, any
15agent of the owner or owners, and no contact has been made. A
16property for which the municipality has been given notice of
17the order of confirmation of sale pursuant to subsection (b-10)
18of Section 15-1508 of the Code of Civil Procedure shall not be
19deemed to be an abandoned residential property for the purposes
20of subsection (d) of Section 11-20-7, subsection (d) of Section
2111-20-8, subsection (d) of Section 11-20-12, subsection (e) of
22Section 11-20-13, and Section 11-31-1.01 of this Code.
23    "MERS program" means the nationwide Mortgage Electronic
24Registration System approved by Fannie Mae, Freddie Mac, and
25Ginnie Mae that has been created by the mortgage banking
26industry with the mission of registering every mortgage loan in

 

 

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1the United States to lawfully make information concerning each
2residential mortgage loan and the property securing it
3available by Internet access to mortgage originators,
4servicers, warehouse lenders, wholesale lenders, retail
5lenders, document custodians, settlement agents, title
6companies, insurers, investors, county recorders, units of
7local government, and consumers.
8    (i) Any entity or person who performs a removal, securing,
9or enclosing activity pursuant to the authority of a
10municipality under subsection (d) of Section 11-20-7,
11subsection (d) of Section 11-20-8, subsection (d) of Section
1211-20-12, subsection (e) of Section 11-20-13, or Section
1311-31-1.01, may, in its, his, or her own name, file a lien
14pursuant to subsection (b) of this Section and appear in a
15foreclosure action on that lien pursuant to subsection (d) of
16this Section in the place of the municipality, provided that
17the municipality shall remain subject to subsection (c) of this
18Section, and such party shall be subject to all of the
19provisions in this Section as if such party were the
20municipality.
21    (i-5) All amounts received by the municipality for costs
22incurred pursuant to this Section for which the municipality
23has been reimbursed under Section 7.31 of the Illinois Housing
24Development Act shall be remitted to the State Treasurer for
25deposit into the Abandoned Residential Property Municipality
26Relief Fund.

 

 

SB1380- 11 -LRB099 09371 AWJ 29577 b

1    (j) If prior to subsection (d) of Section 11-20-7,
2subsection (d) of Section 11-20-8, subsection (d) of Section
311-20-12, and subsection (e) of Section 11-20-13 becoming
4inoperative a lien is filed pursuant to any of those
5subsections, then the lien shall remain in full force and
6effect after the subsections have become inoperative, subject
7to all of the provisions of this Section. If prior to the
8repeal of Section 11-31-1.01 a lien is filed pursuant to
9Section 11-31-1.01, then the lien shall remain in full force
10and effect after the repeal of Section 11-31-1.01, subject to
11all of the provisions of this Section.
12(Source: P.A. 96-856, eff. 3-1-10; 96-1419, eff. 10-1-10.)
 
13    (65 ILCS 5/11-31-1)  (from Ch. 24, par. 11-31-1)
14    Sec. 11-31-1. Demolition, repair, enclosure, or
15remediation.
16    (a) The corporate authorities of each municipality may
17demolish, repair, or enclose or cause the demolition, repair,
18or enclosure of dangerous and unsafe buildings or uncompleted
19and abandoned buildings within the territory of the
20municipality and may remove or cause the removal of garbage,
21debris, and other hazardous, noxious, or unhealthy substances
22or materials from those buildings. In any county having adopted
23by referendum or otherwise a county health department as
24provided by Division 5-25 of the Counties Code or its
25predecessor, the county board of that county may exercise those

 

 

SB1380- 12 -LRB099 09371 AWJ 29577 b

1powers with regard to dangerous and unsafe buildings or
2uncompleted and abandoned buildings within the territory of any
3city, village, or incorporated town having less than 50,000
4population.
5    The corporate authorities shall apply to the circuit court
6of the county in which the building is located (i) for an order
7authorizing action to be taken with respect to a building if
8the owner or owners of the building, including the lien holders
9of record, after at least 15 days' written notice by mail so to
10do, have failed to put the building in a safe condition or to
11demolish it or (ii) for an order requiring the owner or owners
12of record to demolish, repair, or enclose the building or to
13remove garbage, debris, and other hazardous, noxious, or
14unhealthy substances or materials from the building. It is not
15a defense to the cause of action that the building is boarded
16up or otherwise enclosed, although the court may order the
17defendant to have the building boarded up or otherwise
18enclosed. Where, upon diligent search, the identity or
19whereabouts of the owner or owners of the building, including
20the lien holders of record, is not ascertainable, notice mailed
21to the person or persons in whose name the real estate was last
22assessed is sufficient notice under this Section.
23    The hearing upon the application to the circuit court shall
24be expedited by the court and shall be given precedence over
25all other suits. Any person entitled to bring an action under
26subsection (b) shall have the right to intervene in an action

 

 

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1brought under this Section.
2    The cost of the demolition, repair, enclosure, or removal
3incurred by the municipality, by an intervenor, or by a lien
4holder of record, including court costs, attorney's fees, and
5other costs related to the enforcement of this Section, is
6recoverable from the owner or owners of the real estate or the
7previous owner or both if the property was transferred during
8the 15 day notice period and is a lien on the real estate and
9all real property of the owner or owners; the lien is superior
10to all prior existing liens and encumbrances, except taxes, if,
11within 180 days after the repair, demolition, enclosure, or
12removal, the municipality, the lien holder of record, or the
13intervenor who incurred the cost and expense shall file a
14notice of lien for the cost and expense incurred in the office
15of the recorder in the county in which the real estate or any
16real property of the owner or owners is located or in the
17office of the registrar of titles of the county if any of the
18real estate affected is registered under the Registered Titles
19(Torrens) Act.
20    The notice must consist of a sworn statement setting out
21(1) a description of the real estate sufficient for its
22identification, (2) the amount of money representing the cost
23and expense incurred, and (3) the date or dates when the cost
24and expense was incurred by the municipality, the lien holder
25of record, or the intervenor. Upon payment of the cost and
26expense by the owner of or persons interested in the property

 

 

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1after the notice of lien has been filed, the lien shall be
2released by the municipality, the person in whose name the lien
3has been filed, or the assignee of the lien, and the release
4may be filed of record as in the case of filing notice of lien.
5Unless the lien is enforced under subsection (c), the lien may
6be enforced by foreclosure proceedings as in the case of
7mortgage foreclosures under Article XV of the Code of Civil
8Procedure or mechanics' lien foreclosures. An action to
9foreclose this lien may be commenced at any time after the date
10of filing of the notice of lien. The costs of foreclosure
11incurred by the municipality, including court costs,
12reasonable attorney's fees, advances to preserve the property,
13and other costs related to the enforcement of this subsection,
14plus statutory interest, are a lien on the real estate and all
15real property of the owner or owners and are recoverable by the
16municipality from the owner or owners of the real estate.
17    All liens arising under this subsection (a) shall be
18assignable. The assignee of the lien shall have the same power
19to enforce the lien as the assigning party, except that the
20lien may not be enforced under subsection (c).
21    If the appropriate official of any municipality determines
22that any dangerous and unsafe building or uncompleted and
23abandoned building within its territory fulfills the
24requirements for an action by the municipality under the
25Abandoned Housing Rehabilitation Act, the municipality may
26petition under that Act in a proceeding brought under this

 

 

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1subsection.
2    (b) Any owner or tenant of real property within 1200 feet
3in any direction of any dangerous or unsafe building located
4within the territory of a municipality with a population of
5500,000 or more may file with the appropriate municipal
6authority a request that the municipality apply to the circuit
7court of the county in which the building is located for an
8order permitting the demolition, removal of garbage, debris,
9and other noxious or unhealthy substances and materials from,
10or repair or enclosure of the building in the manner prescribed
11in subsection (a) of this Section. If the municipality fails to
12institute an action in circuit court within 90 days after the
13filing of the request, the owner or tenant of real property
14within 1200 feet in any direction of the building may institute
15an action in circuit court seeking an order compelling the
16owner or owners of record to demolish, remove garbage, debris,
17and other noxious or unhealthy substances and materials from,
18repair or enclose or to cause to be demolished, have garbage,
19debris, and other noxious or unhealthy substances and materials
20removed from, repaired, or enclosed the building in question. A
21private owner or tenant who institutes an action under the
22preceding sentence shall not be required to pay any fee to the
23clerk of the circuit court. The cost of repair, removal,
24demolition, or enclosure shall be borne by the owner or owners
25of record of the building. In the event the owner or owners of
26record fail to demolish, remove garbage, debris, and other

 

 

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1noxious or unhealthy substances and materials from, repair, or
2enclose the building within 90 days of the date the court
3entered its order, the owner or tenant who instituted the
4action may request that the court join the municipality as a
5party to the action. The court may order the municipality to
6demolish, remove materials from, repair, or enclose the
7building, or cause that action to be taken upon the request of
8any owner or tenant who instituted the action or upon the
9municipality's request. The municipality may file, and the
10court may approve, a plan for rehabilitating the building in
11question. A court order authorizing the municipality to
12demolish, remove materials from, repair, or enclose a building,
13or cause that action to be taken, shall not preclude the court
14from adjudging the owner or owners of record of the building in
15contempt of court due to the failure to comply with the order
16to demolish, remove garbage, debris, and other noxious or
17unhealthy substances and materials from, repair, or enclose the
18building.
19    If a municipality or a person or persons other than the
20owner or owners of record pay the cost of demolition, removal
21of garbage, debris, and other noxious or unhealthy substances
22and materials, repair, or enclosure pursuant to a court order,
23the cost, including court costs, attorney's fees, and other
24costs related to the enforcement of this subsection, is
25recoverable from the owner or owners of the real estate and is
26a lien on the real estate and all real property of the owner or

 

 

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1owners; the lien is superior to all prior existing liens and
2encumbrances, except taxes, if, within 180 days after the
3repair, removal, demolition, or enclosure, the municipality or
4the person or persons who paid the costs of demolition,
5removal, repair, or enclosure shall file a notice of lien of
6the cost and expense incurred in the office of the recorder in
7the county in which the real estate or any real property of the
8owner or owners is located or in the office of the registrar of
9the county if the real estate affected is registered under the
10Registered Titles (Torrens) Act. The notice shall be in a form
11as is provided in subsection (a). An owner or tenant who
12institutes an action in circuit court seeking an order to
13compel the owner or owners of record to demolish, remove
14materials from, repair, or enclose any dangerous or unsafe
15building, or to cause that action to be taken under this
16subsection may recover court costs and reasonable attorney's
17fees for instituting the action from the owner or owners of
18record of the building. Upon payment of the costs and expenses
19by the owner of or a person interested in the property after
20the notice of lien has been filed, the lien shall be released
21by the municipality or the person in whose name the lien has
22been filed or his or her assignee, and the release may be filed
23of record as in the case of filing a notice of lien. Unless the
24lien is enforced under subsection (c), the lien may be enforced
25by foreclosure proceedings as in the case of mortgage
26foreclosures under Article XV of the Code of Civil Procedure or

 

 

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1mechanics' lien foreclosures. An action to foreclose this lien
2may be commenced at any time after the date of filing of the
3notice of lien. The costs of foreclosure incurred by the
4municipality, including court costs, reasonable attorneys'
5fees, advances to preserve the property, and other costs
6related to the enforcement of this subsection, plus statutory
7interest, are a lien on the real estate and all real property
8of the owner or owners and are recoverable by the municipality
9from the owner or owners of the real estate.
10    All liens arising under the terms of this subsection (b)
11shall be assignable. The assignee of the lien shall have the
12same power to enforce the lien as the assigning party, except
13that the lien may not be enforced under subsection (c).
14    (c) In any case where a municipality has obtained a lien
15under subsection (a), (b), or (f), the municipality may enforce
16the lien under this subsection (c) in the same proceeding in
17which the lien is authorized.
18    A municipality desiring to enforce a lien under this
19subsection (c) shall petition the court to retain jurisdiction
20for foreclosure proceedings under this subsection. Notice of
21the petition shall be served, by certified or registered mail,
22on all persons who were served notice under subsection (a),
23(b), or (f). The court shall conduct a hearing on the petition
24not less than 15 days after the notice is served. If the court
25determines that the requirements of this subsection (c) have
26been satisfied, it shall grant the petition and retain

 

 

SB1380- 19 -LRB099 09371 AWJ 29577 b

1jurisdiction over the matter until the foreclosure proceeding
2is completed. The costs of foreclosure incurred by the
3municipality, including court costs, reasonable attorneys'
4fees, advances to preserve the property, and other costs
5related to the enforcement of this subsection, plus statutory
6interest, are a lien on the real estate and all real property
7of the owner or owners and are recoverable by the municipality
8from the owner or owners of the real estate. If the court
9denies the petition, the municipality may enforce the lien in a
10separate action as provided in subsection (a), (b), or (f).
11    All persons designated in Section 15-1501 of the Code of
12Civil Procedure as necessary parties in a mortgage foreclosure
13action shall be joined as parties before issuance of an order
14of foreclosure. Persons designated in Section 15-1501 of the
15Code of Civil Procedure as permissible parties may also be
16joined as parties in the action.
17    The provisions of Article XV of the Code of Civil Procedure
18applicable to mortgage foreclosures shall apply to the
19foreclosure of a lien under this subsection (c), except to the
20extent that those provisions are inconsistent with this
21subsection. For purposes of foreclosures of liens under this
22subsection, however, the redemption period described in
23subsection (b) of Section 15-1603 of the Code of Civil
24Procedure shall end 60 days after the date of entry of the
25order of foreclosure.
26    (d) In addition to any other remedy provided by law, the

 

 

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1corporate authorities of any municipality may petition the
2circuit court to have property declared abandoned under this
3subsection (d) if:
4        (1) the property has been tax delinquent for 2 or more
5    years or bills for water service for the property have been
6    outstanding for 2 or more years;
7        (2) the property is unoccupied by persons legally in
8    possession; and
9        (3) the property contains a dangerous or unsafe
10    building for reasons specified in the petition.
11    All persons having an interest of record in the property,
12including tax purchasers and beneficial owners of any Illinois
13land trust having title to the property, shall be named as
14defendants in the petition and shall be served with process. In
15addition, service shall be had under Section 2-206 of the Code
16of Civil Procedure as in other cases affecting property.
17    The municipality, however, may proceed under this
18subsection in a proceeding brought under subsection (a) or (b).
19Notice of the petition shall be served in person or by
20certified or registered mail on all persons who were served
21notice under subsection (a) or (b).
22    If the municipality proves that the conditions described in
23this subsection exist and (i) the owner of record of the
24property does not enter an appearance in the action, or, if
25title to the property is held by an Illinois land trust, if
26neither the owner of record nor the owner of the beneficial

 

 

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1interest of the trust enters an appearance, or (ii) if the
2owner of record or the beneficiary of a land trust, if title to
3the property is held by an Illinois land trust, enters an
4appearance and specifically waives his or her rights under this
5subsection (d), the court shall declare the property abandoned.
6Notwithstanding any waiver, the municipality may move to
7dismiss its petition at any time. In addition, any waiver in a
8proceeding under this subsection (d) does not serve as a waiver
9for any other proceeding under law or equity.
10    If that determination is made, notice shall be sent in
11person or by certified or registered mail to all persons having
12an interest of record in the property, including tax purchasers
13and beneficial owners of any Illinois land trust having title
14to the property, stating that title to the property will be
15transferred to the municipality unless, within 30 days of the
16notice, the owner of record or any other person having an
17interest in the property files with the court a request to
18demolish the dangerous or unsafe building or to put the
19building in safe condition, or unless the owner of record
20enters an appearance and proves that the owner does not intend
21to abandon the property.
22    If the owner of record enters an appearance in the action
23within the 30 day period, but does not at that time file with
24the court a request to demolish the dangerous or unsafe
25building or to put the building in safe condition, or
26specifically waive his or her rights under this subsection (d),

 

 

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1the court shall vacate its order declaring the property
2abandoned if it determines that the owner of record does not
3intend to abandon the property. In that case, the municipality
4may amend its complaint in order to initiate proceedings under
5subsection (a), or it may request that the court order the
6owner to demolish the building or repair the dangerous or
7unsafe conditions of the building alleged in the petition or
8seek the appointment of a receiver or other equitable relief to
9correct the conditions at the property. The powers and rights
10of a receiver appointed under this subsection (d) shall include
11all of the powers and rights of a receiver appointed under
12Section 11-31-2 of this Code.
13    If a request to demolish or repair the building is filed
14within the 30 day period, the court shall grant permission to
15the requesting party to demolish the building within 30 days or
16to restore the building to safe condition within 60 days after
17the request is granted. An extension of that period for up to
1860 additional days may be given for good cause. If more than
19one person with an interest in the property files a timely
20request, preference shall be given to the owner of record if
21the owner filed a request or, if the owner did not, the person
22with the lien or other interest of the highest priority.
23    If the requesting party (other than the owner of record)
24proves to the court that the building has been demolished or
25put in a safe condition in accordance with the local safety
26codes within the period of time granted by the court, the court

 

 

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1shall issue a quitclaim judicial deed for the property to the
2requesting party, conveying only the interest of the owner of
3record, upon proof of payment to the municipality of all costs
4incurred by the municipality in connection with the action,
5including but not limited to court costs, attorney's fees,
6administrative costs, the costs, if any, associated with
7building enclosure or removal, and receiver's certificates.
8The interest in the property so conveyed shall be subject to
9all liens and encumbrances on the property. In addition, if the
10interest is conveyed to a person holding a certificate of
11purchase for the property under the Property Tax Code, the
12conveyance shall be subject to the rights of redemption of all
13persons entitled to redeem under that Act, including the
14original owner of record. If the requesting party is the owner
15of record and proves to the court that the building has been
16demolished or put in a safe condition in accordance with the
17local safety codes within the period of time granted by the
18court, the court shall dismiss the proceeding under this
19subsection (d).
20    If the owner of record has not entered an appearance and
21proven that the owner did not intend to abandon the property,
22and if no person with an interest in the property files a
23timely request or if the requesting party fails to demolish the
24building or put the building in safe condition within the time
25specified by the court, the municipality may petition the court
26to issue a judicial deed for the property to the municipality.

 

 

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1A conveyance by judicial deed shall operate to extinguish all
2existing ownership interests in, liens on, and other interest
3in the property, including tax liens, and shall extinguish the
4rights and interests of any and all holders of a bona fide
5certificate of purchase of the property for delinquent taxes.
6Any such bona fide certificate of purchase holder shall be
7entitled to a sale in error as prescribed under Section 21-310
8of the Property Tax Code.
9    (e) Each municipality may use the provisions of this
10subsection to expedite the removal of certain buildings that
11are a continuing hazard to the community in which they are
12located.
13    If a residential or commercial building is 3 stories or
14less in height as defined by the municipality's building code,
15and the corporate official designated to be in charge of
16enforcing the municipality's building code determines that the
17building is open and vacant and an immediate and continuing
18hazard to the community in which the building is located, then
19the official shall be authorized to post a notice not less than
202 feet by 2 feet in size on the front of the building. The
21notice shall be dated as of the date of the posting and shall
22state that unless the building is demolished, repaired, or
23enclosed, and unless any garbage, debris, and other hazardous,
24noxious, or unhealthy substances or materials are removed so
25that an immediate and continuing hazard to the community no
26longer exists, then the building may be demolished, repaired,

 

 

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1or enclosed, or any garbage, debris, and other hazardous,
2noxious, or unhealthy substances or materials may be removed,
3by the municipality.
4    Not later than 30 days following the posting of the notice,
5the municipality shall do all of the following:
6        (1) Cause to be sent, by certified mail, return receipt
7    requested, a Notice to Remediate to all owners of record of
8    the property, the beneficial owners of any Illinois land
9    trust having title to the property, and all lienholders of
10    record in the property, stating the intent of the
11    municipality to demolish, repair, or enclose the building
12    or remove any garbage, debris, or other hazardous, noxious,
13    or unhealthy substances or materials if that action is not
14    taken by the owner or owners.
15        (2) Cause to be published, in a newspaper published or
16    circulated in the municipality where the building is
17    located, a notice setting forth (i) the permanent tax index
18    number and the address of the building, (ii) a statement
19    that the property is open and vacant and constitutes an
20    immediate and continuing hazard to the community, and (iii)
21    a statement that the municipality intends to demolish,
22    repair, or enclose the building or remove any garbage,
23    debris, or other hazardous, noxious, or unhealthy
24    substances or materials if the owner or owners or
25    lienholders of record fail to do so. This notice shall be
26    published for 3 consecutive days.

 

 

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1        (3) Cause to be recorded the Notice to Remediate mailed
2    under paragraph (1) in the office of the recorder in the
3    county in which the real estate is located or in the office
4    of the registrar of titles of the county if the real estate
5    is registered under the Registered Title (Torrens) Act.
6    Any person or persons with a current legal or equitable
7interest in the property objecting to the proposed actions of
8the corporate authorities may file his or her objection in an
9appropriate form in a court of competent jurisdiction.
10    If the building is not demolished, repaired, or enclosed,
11or the garbage, debris, or other hazardous, noxious, or
12unhealthy substances or materials are not removed, within 30
13days of mailing the notice to the owners of record, the
14beneficial owners of any Illinois land trust having title to
15the property, and all lienholders of record in the property, or
16within 30 days of the last day of publication of the notice,
17whichever is later, the corporate authorities shall have the
18power to demolish, repair, or enclose the building or to remove
19any garbage, debris, or other hazardous, noxious, or unhealthy
20substances or materials.
21    The municipality may proceed to demolish, repair, or
22enclose a building or remove any garbage, debris, or other
23hazardous, noxious, or unhealthy substances or materials under
24this subsection within a 120-day period following the date of
25the mailing of the notice if the appropriate official
26determines that the demolition, repair, enclosure, or removal

 

 

SB1380- 27 -LRB099 09371 AWJ 29577 b

1of any garbage, debris, or other hazardous, noxious, or
2unhealthy substances or materials is necessary to remedy the
3immediate and continuing hazard. If, however, before the
4municipality proceeds with any of the actions authorized by
5this subsection, any person with a legal or equitable interest
6in the property has sought a hearing under this subsection
7before a court and has served a copy of the complaint on the
8chief executive officer of the municipality, then the
9municipality shall not proceed with the demolition, repair,
10enclosure, or removal of garbage, debris, or other substances
11until the court determines that that action is necessary to
12remedy the hazard and issues an order authorizing the
13municipality to do so. If the court dismisses the action for
14want of prosecution, the municipality must send the objector a
15copy of the dismissal order and a letter stating that the
16demolition, repair, enclosure, or removal of garbage, debris,
17or other substances will proceed unless, within 30 days after
18the copy of the order and the letter are mailed, the objector
19moves to vacate the dismissal and serves a copy of the motion
20on the chief executive officer of the municipality.
21Notwithstanding any other law to the contrary, if the objector
22does not file a motion and give the required notice, if the
23motion is denied by the court, or if the action is again
24dismissed for want of prosecution, then the dismissal is with
25prejudice and the demolition, repair, enclosure, or removal may
26proceed forthwith.

 

 

SB1380- 28 -LRB099 09371 AWJ 29577 b

1    Following the demolition, repair, or enclosure of a
2building, or the removal of garbage, debris, or other
3hazardous, noxious, or unhealthy substances or materials under
4this subsection, the municipality may file a notice of lien
5against the real estate and all real property of the owner or
6owners for the cost of the demolition, repair, enclosure, or
7removal within 180 days after the repair, demolition,
8enclosure, or removal occurred, for the cost and expense
9incurred, in the office of the recorder in the county in which
10the real estate or any real property of the owner or owners is
11located or in the office of the registrar of titles of the
12county if the real estate affected is registered under the
13Registered Titles (Torrens) Act; this lien has priority over
14the interests of those parties named in the Notice to Remediate
15mailed under paragraph (1), but not over the interests of third
16party purchasers or encumbrancers for value who obtained their
17interests in the property before obtaining actual or
18constructive notice of the lien. The notice of lien shall
19consist of a sworn statement setting forth (i) a description of
20the real estate, such as the address or other description of
21the property, sufficient for its identification; (ii) the
22expenses incurred by the municipality in undertaking the
23remedial actions authorized under this subsection; (iii) the
24date or dates the expenses were incurred by the municipality;
25(iv) a statement by the corporate official responsible for
26enforcing the building code that the building was open and

 

 

SB1380- 29 -LRB099 09371 AWJ 29577 b

1vacant and constituted an immediate and continuing hazard to
2the community; (v) a statement by the corporate official that
3the required sign was posted on the building, that notice was
4sent by certified mail to the owners of record, and that notice
5was published in accordance with this subsection; and (vi) a
6statement as to when and where the notice was published. The
7lien authorized by this subsection may thereafter be released
8or enforced by the municipality as provided in subsection (a).
9    (f) The corporate authorities of each municipality may
10remove or cause the removal of, or otherwise environmentally
11remediate hazardous substances and petroleum products on, in,
12or under any abandoned and unsafe property within the territory
13of a municipality. In addition, where preliminary evidence
14indicates the presence or likely presence of a hazardous
15substance or a petroleum product or a release or a substantial
16threat of a release of a hazardous substance or a petroleum
17product on, in, or under the property, the corporate
18authorities of the municipality may inspect the property and
19test for the presence or release of hazardous substances and
20petroleum products. In any county having adopted by referendum
21or otherwise a county health department as provided by Division
225-25 of the Counties Code or its predecessor, the county board
23of that county may exercise the above-described powers with
24regard to property within the territory of any city, village,
25or incorporated town having less than 50,000 population.
26    For purposes of this subsection (f):

 

 

SB1380- 30 -LRB099 09371 AWJ 29577 b

1        (1) "property" or "real estate" means all real
2    property, whether or not improved by a structure;
3        (2) "abandoned" means;
4            (A) the property has been tax delinquent for 2 or
5        more years;
6            (B) the property is unoccupied by persons legally
7        in possession; and
8        (3) "unsafe" means property that presents an actual or
9    imminent threat to public health and safety caused by the
10    release of hazardous substances; and
11        (4) "hazardous substances" means the same as in Section
12    3.215 of the Environmental Protection Act.
13    The corporate authorities shall apply to the circuit court
14of the county in which the property is located (i) for an order
15allowing the municipality to enter the property and inspect and
16test substances on, in, or under the property; or (ii) for an
17order authorizing the corporate authorities to take action with
18respect to remediation of the property if conditions on the
19property, based on the inspection and testing authorized in
20paragraph (i), indicate the presence of hazardous substances or
21petroleum products. Remediation shall be deemed complete for
22purposes of paragraph (ii) above when the property satisfies
23Tier I, II, or III remediation objectives for the property's
24most recent usage, as established by the Environmental
25Protection Act, and the rules and regulations promulgated
26thereunder. Where, upon diligent search, the identity or

 

 

SB1380- 31 -LRB099 09371 AWJ 29577 b

1whereabouts of the owner or owners of the property, including
2the lien holders of record, is not ascertainable, notice mailed
3to the person or persons in whose name the real estate was last
4assessed is sufficient notice under this Section.
5    The court shall grant an order authorizing testing under
6paragraph (i) above upon a showing of preliminary evidence
7indicating the presence or likely presence of a hazardous
8substance or a petroleum product or a release of or a
9substantial threat of a release of a hazardous substance or a
10petroleum product on, in, or under abandoned property. The
11preliminary evidence may include, but is not limited to,
12evidence of prior use, visual site inspection, or records of
13prior environmental investigations. The testing authorized by
14paragraph (i) above shall include any type of investigation
15which is necessary for an environmental professional to
16determine the environmental condition of the property,
17including but not limited to performance of soil borings and
18groundwater monitoring. The court shall grant a remediation
19order under paragraph (ii) above where testing of the property
20indicates that it fails to meet the applicable remediation
21objectives. The hearing upon the application to the circuit
22court shall be expedited by the court and shall be given
23precedence over all other suits.
24    The cost of the inspection, testing, or remediation
25incurred by the municipality or by a lien holder of record,
26including court costs, attorney's fees, and other costs related

 

 

SB1380- 32 -LRB099 09371 AWJ 29577 b

1to the enforcement of this Section, is a lien on the real
2estate and all real property of the owner or owners; except
3that in any instances where a municipality incurs costs of
4inspection and testing but finds no hazardous substances or
5petroleum products on the property that present an actual or
6imminent threat to public health and safety, such costs are not
7recoverable from the owners nor are such costs a lien on the
8real estate. The lien is superior to all prior existing liens
9and encumbrances, except taxes and any lien obtained under
10subsection (a) or (e), if, within 180 days after the completion
11of the inspection, testing, or remediation, the municipality or
12the lien holder of record who incurred the cost and expense
13shall file a notice of lien for the cost and expense incurred
14in the office of the recorder in the county in which the real
15estate or any real property of the owner or owners is located
16or in the office of the registrar of titles of the county if
17the real estate affected is registered under the Registered
18Titles (Torrens) Act.
19    The notice must consist of a sworn statement setting out
20(i) a description of the real estate sufficient for its
21identification, (ii) the amount of money representing the cost
22and expense incurred, and (iii) the date or dates when the cost
23and expense was incurred by the municipality or the lien holder
24of record. Upon payment of the lien amount by the owner of or
25persons interested in the property after the notice of lien has
26been filed, a release of lien shall be issued by the

 

 

SB1380- 33 -LRB099 09371 AWJ 29577 b

1municipality, the person in whose name the lien has been filed,
2or the assignee of the lien, and the release may be filed of
3record as in the case of filing notice of lien.
4    The lien may be enforced under subsection (c) or by
5foreclosure proceedings as in the case of mortgage foreclosures
6under Article XV of the Code of Civil Procedure or mechanics'
7lien foreclosures; provided that where the lien is enforced by
8foreclosure under subsection (c) or under either statute, the
9municipality may not proceed against the other assets of the
10owner or owners of the real estate for any costs that otherwise
11would be recoverable under this Section but that remain
12unsatisfied after foreclosure except where such additional
13recovery is authorized by separate environmental laws. An
14action to foreclose this lien may be commenced at any time
15after the date of filing of the notice of lien. The costs of
16foreclosure incurred by the municipality, including court
17costs, reasonable attorney's fees, advances to preserve the
18property, and other costs related to the enforcement of this
19subsection, plus statutory interest, are a lien on the real
20estate.
21    All liens arising under this subsection (f) shall be
22assignable. The assignee of the lien shall have the same power
23to enforce the lien as the assigning party, except that the
24lien may not be enforced under subsection (c).
25    (g) In any case where a municipality has obtained a lien
26under subsection (a), the municipality may also bring an action

 

 

SB1380- 34 -LRB099 09371 AWJ 29577 b

1for a money judgment against the owner or owners of the real
2estate in the amount of the lien in the same manner as provided
3for bringing causes of action in Article II of the Code of
4Civil Procedure and, upon obtaining a judgment, file a judgment
5lien against all of the real estate of the owner or owners and
6enforce that lien as provided for in Article XII of the Code of
7Civil Procedure.
8(Source: P.A. 95-331, eff. 8-21-07; 95-931, eff. 1-1-09.)