Full Text of SB3066 101st General Assembly
SB3066ham003 101ST GENERAL ASSEMBLY | Rep. Delia C. Ramirez Filed: 5/22/2020
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| 1 | | AMENDMENT TO SENATE BILL 3066
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 3066 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | COVID-19 Emergency and Economic Recovery Renter and Homeowner | 6 | | Protection Act. | 7 | | Section 5. Purpose and findings. The purpose of this Act is | 8 | | to protect renters, homeowners, and persons in need of housing, | 9 | | based upon the following findings: | 10 | | International, national, state, and local governments and | 11 | | health authorities are responding to an outbreak of a disease | 12 | | caused by the novel coronavirus referred to as COVID-19. | 13 | | African American and Latino households in the State of | 14 | | Illinois are at disproportionate risk of exposure to and the | 15 | | contraction of COVID-19 and to economic effects of this | 16 | | pandemic. |
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| 1 | | On March 9, 2020, the Governor of the State of Illinois | 2 | | issued a disaster declaration proclamation in Illinois because | 3 | | of the threat of COVID-19. | 4 | | On March 26, 2020, the President of the United States | 5 | | declared that a major disaster exists in the State of Illinois | 6 | | and ordered Federal assistance to supplement State, tribal, and | 7 | | local recovery efforts in the areas affected by the COVID-19 | 8 | | pandemic beginning on January 20, 2020 and continuing. | 9 | | On April 1, 2020, the Governor of the State of Illinois | 10 | | issued a second disaster declaration proclamation in Illinois | 11 | | because of the threat of COVID-19. | 12 | | On April 30, 2020, the Governor of the State of Illinois | 13 | | issued a third disaster declaration proclamation in Illinois | 14 | | because of the threat of COVID-19. | 15 | | The Centers for Disease Control and Prevention and the | 16 | | Illinois Department of Public Health have issued | 17 | | recommendations including, but not limited to, social | 18 | | distancing, staying home if sick, shutting down all | 19 | | nonessential businesses, canceling or postponing large group | 20 | | events, working from home, and other precautions to protect | 21 | | public health and prevent transmission of this communicable | 22 | | virus. | 23 | | Experts predict a vaccine will not be approved for at least | 24 | | a year, and the World Health Organization has stated, "There is | 25 | | currently no evidence that people who have recovered from | 26 | | COVID-19 and have antibodies are protected from a second |
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| 1 | | infection." | 2 | | Because of the public health emergency and the precautions | 3 | | recommended by health authorities, many residents and | 4 | | businesses in the State of Illinois have experienced or expect | 5 | | soon to experience sudden and unexpected income loss. | 6 | | A quarter of this State's workforce is employed in | 7 | | industries directly impacted by the closure of nonessential | 8 | | services as recommended by health authorities, and | 9 | | unemployment claims in this State are exceeding levels from the | 10 | | 2008 Great Recession. | 11 | | Further long-term economic impacts are anticipated, with | 12 | | reliable forecasts of 30% unemployment rate in the second | 13 | | quarter of 2020, leaving residential and commercial tenants | 14 | | vulnerable to eviction and homeowners vulnerable to | 15 | | foreclosure. | 16 | | The Governor of the State of Illinois has stated that | 17 | | individuals exposed to COVID-19 may be temporarily unable to | 18 | | report to work due to illness caused by COVID-19 or quarantines | 19 | | related to COVID-19 and individuals directly affected by | 20 | | COVID-19 may experience potential loss of income, health care | 21 | | and medical coverage, and ability to pay for housing and basic | 22 | | needs, thereby placing increased demands on already strained | 23 | | regional and local health and safety resources, including | 24 | | shelters and food banks. | 25 | | Before COVID-19, over half of Illinois low-income renters | 26 | | were already rent-burdened, and the rate of underwater |
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| 1 | | mortgages in Illinois was one of the highest in the nation. | 2 | | 31% of adults in a nationally representative sample taken | 3 | | during the pandemic report that they are worried that they | 4 | | cannot pay rent, a mortgage, or utilities. | 5 | | During this emergency and in the interest of protecting the | 6 | | public health and preventing transmission of COVID-19, it is | 7 | | essential to avoid unnecessary housing displacement to prevent | 8 | | housed individuals from falling into homelessness. | 9 | | On March 20, 2020, the Governor issued Executive Order | 10 | | 2020-10, which instructed authorities to cease enforcement of | 11 | | orders for residential evictions. | 12 | | On March 18, 2020, the Illinois Commerce Commission | 13 | | required all private water, electric, and natural gas utilities | 14 | | in Illinois to suspend service disconnections, waive | 15 | | late-payment penalties, and implement temporary flexible | 16 | | credit and payment procedures to ensure all customers remain | 17 | | connected to essential utility service. | 18 | | On April 23, 2020, the Governor issued Executive Order | 19 | | 2020-30, which further prohibited persons and entities from | 20 | | commencing residential eviction actions in most cases and | 21 | | ceasing the enforcement of eviction orders for most | 22 | | nonresidential premises. | 23 | | Unpaid rent, late fees, and court costs are currently | 24 | | accruing against residential and commercial tenants and will be | 25 | | demanded by landlords after the expiration of the emergency | 26 | | period. |
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| 1 | | Public health is endangered if tenants will face immediate | 2 | | demand for the entire sum after the emergency period expires, | 3 | | the courts are clogged with thousands of additional eviction | 4 | | court filings, tenants leave their homes and enter into | 5 | | homelessness in order to avoid an eviction filing, resulting in | 6 | | a chaotic displacement process. | 7 | | Involuntary displacement caused by an eviction interrupts | 8 | | a child's education, causing the child to have lower school | 9 | | achievement and delayed literacy skills and be more likely to | 10 | | be truant, threatens the child's social and emotional security, | 11 | | and adversely impacts families in the form of stress and | 12 | | exposure to substandard housing with environmental hazards. | 13 | | The State of Illinois needs to ensure that returning | 14 | | citizens have fair and equitable access to housing, that | 15 | | persons who have or who are perceived to have COVID-19 are | 16 | | protected from housing discrimination, and that renters and | 17 | | homeowners cannot be discriminated against for relying upon | 18 | | third-party sources of financial support to pay their rent and | 19 | | mortgages. | 20 | | The State of Illinois deems it necessary to protect public | 21 | | health, life, and property during this declared state of | 22 | | emergency by protecting small business commercial and | 23 | | residential tenants and homeowners from certain evictions and | 24 | | foreclosures and other hardships during this public health and | 25 | | economic crisis. |
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| 1 | | Section 10. Definitions. Unless the context clearly | 2 | | indicates otherwise, as used in this Act: | 3 | | "COVID-19 related hardship" means any negative financial | 4 | | impact on an individual or household because of COVID-19 and | 5 | | associated governmental orders, including: loss of income, | 6 | | furlough, hour reduction or other interruption to employment | 7 | | due to workplace, school, and other facility closures; or | 8 | | increased household, child care, health care, or other | 9 | | expenses. | 10 | | "Dwelling unit" means a building, structure, or part of a | 11 | | building or structure or land appurtenant to a building or | 12 | | structure, a unit or lot of a manufactured home as defined in | 13 | | Section 3 of the Mobile Home Landlord and Tenant Rights Act, or | 14 | | other residential real estate used or held out for human | 15 | | habitation, together with all common areas and storage areas | 16 | | held out for use by the resident. | 17 | | "Eviction" or "to evict" means using any judicial or | 18 | | nonjudicial means to involuntarily remove a resident or small | 19 | | business commercial tenant from a dwelling unit or a small | 20 | | business commercial premises, including, but not limited to: | 21 | | (1) issuing an eviction notice or other notice to | 22 | | terminate a tenancy; | 23 | | (2) filing, serving, or other otherwise initiating a | 24 | | judicial eviction action; | 25 | | (3) prosecuting a pending eviction action, other than | 26 | | as necessary to request a continuance or suspension of the |
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| 1 | | matter or to comply with an order of the tribunal; or | 2 | | (4) seeking or causing any order for the physical | 3 | | eviction of a resident or small business commercial tenant | 4 | | to be executed. | 5 | | "Eviction action" means any judicial or administrative | 6 | | proceeding that seeks recovery of possession of a dwelling unit | 7 | | or small business commercial premises from a resident or small | 8 | | business commercial tenant. | 9 | | "Eviction order" means any order entered in an eviction | 10 | | action that directs or authorizes the removal of a resident or | 11 | | small business commercial tenant from a dwelling unit or a | 12 | | small business commercial premises. "Eviction order" does not | 13 | | include an order entered to remove a resident who is the | 14 | | perpetrator of violence in order to protect another resident or | 15 | | tenant from domestic violence, sexual violence, dating | 16 | | violence, or stalking. "Eviction order" does not include an | 17 | | order restoring a resident to possession of the dwelling unit | 18 | | entered under subsection (h) of Section 15. | 19 | | "Eviction notice" means any notice directing a resident or | 20 | | small business commercial tenant to vacate the dwelling unit or | 21 | | small business commercial premises or otherwise purporting to | 22 | | terminate a tenancy. | 23 | | "Fund" means the Residential Housing Relief Fund created | 24 | | under Section 20. | 25 | | "IHDA" or "Department" means the Illinois Housing | 26 | | Development Authority. |
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| 1 | | "Landlord" means an owner of record, agent, lessor, | 2 | | sublessor, court-appointed receiver or master, mortgagee in | 3 | | possession, or the successor in interest of any of them of a | 4 | | dwelling unit or the building of which it is a part and any | 5 | | person authorized to exercise any aspect of the management of | 6 | | the premises. "Landlord" includes any person who directly or | 7 | | indirectly receives rents and has no obligation to deliver the | 8 | | whole of the receipts to another person. "Landlord" also | 9 | | includes the owner of a mobile home park. | 10 | | "Premises" means the dwelling unit and the building or | 11 | | structure of which it is a part, facilities and appurtenances | 12 | | therein, and grounds, areas, and facilities held out for the | 13 | | use of residents. | 14 | | "Rental agreement" means every letting or lease, whether by | 15 | | written or verbal agreement, of a dwelling unit or small | 16 | | business commercial premises. | 17 | | "Residential landlord" means an owner of record, agent, | 18 | | lessor, sublessor, court-appointed receiver or master, | 19 | | mortgagee in possession, or the successor in interest of any of | 20 | | them of a dwelling unit or the building of which it is a part, | 21 | | and any person authorized to exercise any aspect of the | 22 | | management of the premises. "Residential landlord" includes | 23 | | any person who directly or indirectly receives rents and has no | 24 | | obligation to deliver the whole of the receipts to another | 25 | | person. "Residential landlord" also includes the owner of a | 26 | | mobile home park. |
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| 1 | | "Residential tenant" or "tenant" means a person entitled by | 2 | | written or verbal agreement, subtenancy approved by the | 3 | | landlord, or by sufferance to occupy a dwelling unit to the | 4 | | exclusion of others. "Residential tenant" includes members of a | 5 | | tenant's household occupying the dwelling unit. | 6 | | "Small business commercial premises" means any parcel of | 7 | | real property that is developed and used either in part or in | 8 | | whole for commercial purposes by a business that is not a part | 9 | | of a multinational corporation and that has less than 25 | 10 | | employees. | 11 | | "Small business commercial tenant" means a commercial | 12 | | tenant that is not a part of a multinational corporation and | 13 | | that has less than 25 employees. | 14 | | Section 15. Moratorium on residential and small business | 15 | | commercial premises eviction. | 16 | | (a) There is hereby declared a moratorium on evictions from | 17 | | residential and small business commercial premises in this | 18 | | State that shall remain in effect for 60 days after the | 19 | | effective date of this Act. | 20 | | (b) Except as provided in subsection (f), during the | 21 | | moratorium: | 22 | | (1) No person or entity shall evict or attempt to evict | 23 | | a residential tenant or small business commercial tenant | 24 | | from a dwelling unit or small business commercial premises. | 25 | | (2) No court shall accept any filing, including a |
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| 1 | | complaint, summons, or motion, other than those authorized | 2 | | under subsection (f), in an eviction action, or hear or | 3 | | decide any matter, or enter a judgment in favor of the | 4 | | plaintiff for eviction, rent, or other remedies that may | 5 | | have otherwise been permitted by law. | 6 | | (3) No sheriff, local law enforcement officer, or any | 7 | | other person or entity may serve process or attempt to | 8 | | serve process for an eviction action. | 9 | | (c) Any eviction notice issued on or after March 9, 2020 | 10 | | through the date on which the moratorium expires is invalid and | 11 | | shall not be deemed to have terminated the residential or small | 12 | | business commercial tenancy, except in an action commenced | 13 | | under subsection (f) or in a pending eviction actions filed on | 14 | | or before April 22, 2020. | 15 | | (d) (Blank). | 16 | | (e) Any deadline or period for action by a party to an | 17 | | eviction action commenced before the effective date of this | 18 | | Act, including the time to appeal a judgment, is tolled during | 19 | | the moratorium. | 20 | | (f) This moratorium does not prevent a residential landlord | 21 | | from taking any legal action to protect other residential | 22 | | tenants by evicting or otherwise barring from the premises any | 23 | | person who poses a credible threat of violence to other | 24 | | residential tenants at the premises. | 25 | | (g) (Blank). | 26 | | (h) Any residential or small business commercial tenant |
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| 1 | | dispossessed of a dwelling unit or small business commercial | 2 | | premises in violation of subsection (b) may bring an action in | 3 | | a court of competent jurisdiction to regain possession of the | 4 | | dwelling unit or small business commercial premises. Such a | 5 | | claim shall constitute an emergency and shall be scheduled by | 6 | | the court for a hearing as soon as practicable. | 7 | | (i) In any action pending or commenced after expiration of | 8 | | the moratorium, a residential landlord may not maintain any | 9 | | eviction action based on the nonpayment of rent that first | 10 | | became due on or after March 9, 2020 through the expiration of | 11 | | the moratorium, late fees, or any other fee or cost associated | 12 | | with such nonpayment, nor may any residential landlord issue an | 13 | | eviction notice demanding such rent or fees. | 14 | | (j) Nothing in this Section prohibits: | 15 | | (1) a residential or small business commercial tenant | 16 | | from terminating a rental agreement in a manner otherwise | 17 | | prescribed by contract or law; | 18 | | (2) the termination of a residential or small business | 19 | | commercial rental agreement by mutual agreement; or | 20 | | (3) a landlord from bringing a claim for rent due in | 21 | | the manner described in Illinois Supreme Court Rules 281 | 22 | | through 289. | 23 | | (k) Any eviction action may be sealed if the tenant shows a | 24 | | COVID-19 related hardship or the interests of justice outweigh | 25 | | the interests of the public in viewing the court file. | 26 | | (l) Any eviction proceeding against a tenant who applies |
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| 1 | | for relief under Section 20 of this Act shall be stayed from | 2 | | the date that his or her application is submitted, for the time | 3 | | that his or her application is pending and being considered by | 4 | | the Department. | 5 | | Section 20. Residential Housing Relief Fund. | 6 | | (a) Within 30 days of this Act becoming law, the Illinois | 7 | | Housing Development Authority shall establish a Residential | 8 | | Housing Relief Fund, to provide assistance to: | 9 | | (1) Residential landlords and residential tenants in | 10 | | order to preserve the tenancy by covering certain rental | 11 | | amounts due from residential tenants unable to pay rent | 12 | | because they are experiencing a COVID-19 related hardship | 13 | | and are at risk of homelessness. | 14 | | (2) Residential tenants experiencing a COVID-19 | 15 | | related hardship who need to move and have demonstrated a | 16 | | financial need for funds to cover expenses, including, but | 17 | | not limited to, the first month's rent or a security | 18 | | deposit, or both. | 19 | | (3) Homeowners who have demonstrated that they are | 20 | | unable to make mortgage payments, after exhausting all | 21 | | forbearance options available. | 22 | | (b) IHDA shall allocate available funds to homeowners, | 23 | | residential landlords, and residential tenants and establish | 24 | | further administrative requirements on the application for and | 25 | | the distribution of these funds as is necessary. |
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| 1 | | (c) In accordance with existing eligibility and other | 2 | | funding requirements, available funds shall be prioritized as | 3 | | follows: | 4 | | (1) qualified residential tenants at 50% or below of | 5 | | the median family income for the area of the local | 6 | | administering agency unable to make rental payments; | 7 | | (2) qualified residential tenants who are not eligible | 8 | | for federal funds and who are unable to make rental | 9 | | payments; | 10 | | (3) qualified residential tenants at imminent risk of | 11 | | or who are experiencing homelessness because they are | 12 | | unable to make rental payments; and | 13 | | (4) homeowners who are unable to make mortgage | 14 | | payments, after exhausting all forbearance options | 15 | | available. | 16 | | (d) Application for residential housing relief funds. | 17 | | (1) A landlord, tenant, or homeowner may apply for such | 18 | | funds in accordance with the application requirements | 19 | | established by IHDA. The funds shall go to the landlord or | 20 | | the mortgagee. | 21 | | (2) A landlord must apply for funds under this Section | 22 | | before bringing a claim for rent, including under Illinois | 23 | | Supreme Court Rules 281 through 289. Once an application | 24 | | for funds is completed, the landlord may not bring a claim | 25 | | for rental debt owed during the moratorium for the tenant's | 26 | | use and occupancy of the dwelling unit pursuant to Illinois |
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| 1 | | Supreme Court Rules 281 through 289 until the application | 2 | | is denied. | 3 | | (e) Receipt of residential housing relief funds. | 4 | | (1) Landlords who receive such funds cannot charge or | 5 | | otherwise collect rent or other fees to residential tenants | 6 | | due during the term of the moratorium or report residential | 7 | | tenants to a debt collector. | 8 | | (2) Landlords must in good faith cooperate with and | 9 | | complete all requirements established by IHDA, including | 10 | | any agreements to maintain the residential tenant's | 11 | | tenancy. | 12 | | (3) Landlords cannot refuse to accept funds from or on | 13 | | behalf of tenants from the Residential Housing Relief Fund | 14 | | on the basis that the tenants' funds come from the | 15 | | Residential Housing Relief Fund. | 16 | | (4) Landlords who violate paragraph (1), (2), or (3) of | 17 | | this subsection (e) may be subject to recapture of any | 18 | | received Residential Housing Relief Fund dollars by IHDA | 19 | | without penalty to the residential tenant. | 20 | | (f) The Residential Housing Relief Fund is created as a | 21 | | special fund
in the State treasury. Subject to appropriation, | 22 | | all money in the fund shall
be distributed to the Department to | 23 | | carry out the purposes of this Act. Any
repayments, interest, | 24 | | or new appropriations shall be deposited into the fund.
Money | 25 | | in the fund shall not be subject to transfer to the General | 26 | | Revenue Fund
or to any other fund. Federal funds made available |
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| 1 | | to the states as a result of
the COVID-19 pandemic may be | 2 | | deposited into the fund. It is the intent of the
General | 3 | | Assembly to prioritize the use of available federal funds | 4 | | before using
General Revenue funds. | 5 | | (g) This Section is subject to appropriation. | 6 | | Section 25. Eviction provisions preempted. For the | 7 | | duration of this Act, Article IX of the Code of Civil Procedure | 8 | | is preempted only to the extent that any of its provisions | 9 | | conflict with any provision of this Act. | 10 | | Section 30. Conflict with federal law. Nothing with respect | 11 | | to this Act conflicts with or is intended to conflict with | 12 | | federal law. | 13 | | Section 35. Repeal. Sections 5, 10, 15, 25, and 30 are | 14 | | repealed on January 1, 2021. | 15 | | Section 90. The State Finance Act is amended by adding | 16 | | Section 5.930 as follows: | 17 | | (30 ILCS 105/5.930 new) | 18 | | Sec. 5.930. The Residential Housing Relief Fund. | 19 | | Section 99. Effective date. This Act takes effect upon | 20 | | becoming law.".
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