Full Text of HB4374 102nd General Assembly
HB4374ham001 102ND GENERAL ASSEMBLY | Rep. Daniel Didech Filed: 2/15/2022
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| 1 | | AMENDMENT TO HOUSE BILL 4374
| 2 | | AMENDMENT NO. ______. Amend House Bill 4374 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Vacancy Fraud Act. | 6 | | Section 5. Public policy. Certain commercial properties in | 7 | | Cook County receive a vacancy reduction because they are | 8 | | partly or completely vacant. In order to revitalize struggling | 9 | | commercial corridors and foster economic development in Cook | 10 | | County commercial corridors, it is imperative that owners of | 11 | | commercial properties that receive a vacancy reduction attempt | 12 | | to lease or sell those properties or make the alterations or | 13 | | modifications necessary to lease or sell those properties. | 14 | | The General Assembly finds that it is against public | 15 | | policy for commercial property owners to receive a vacancy | 16 | | reduction without attempting to lease or sell those properties |
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| 1 | | or make the modifications or alterations necessary to lease or | 2 | | sell those properties because it burdens homeowners and | 3 | | actively operating businesses, lessens the taxing districts' | 4 | | tax bases, and causes blight in commercial corridors. | 5 | | Section 10. Definitions. As used in this Act: | 6 | | "Subject property" means real property located in a county | 7 | | with 3,000,000 or more inhabitants, or a portion of that | 8 | | property, that is designated or zoned for commercial or | 9 | | business use and receives a vacancy reduction. With respect to | 10 | | real property that is zoned or designated as mixed-use | 11 | | property, this Act applies only to that portion designated or | 12 | | zoned for commercial or business use. | 13 | | "Vacancy reduction" means a decrease in assessed value, a | 14 | | decrease in market value, or an abatement of taxes by the chief | 15 | | county assessment officer, a board of review, a county, or a | 16 | | taxing district, which is permitted by ordinance, resolution, | 17 | | or policy granting such a decrease in assessed value to | 18 | | property that is vacant. | 19 | | Section 15. Vacancy fraud complaints. | 20 | | (a) The board of review in a county with 3,000,000 or more | 21 | | inhabitants is authorized to hear vacancy fraud complaints | 22 | | brought no more than 5 years after the vacancy fraud occurred. | 23 | | No vacancy fraud complaints may be brought for vacancy | 24 | | reductions that were granted prior to the effective date of |
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| 1 | | this Act. If there is no actively installed or operating board | 2 | | of review, the chief county assessment officer is authorized | 3 | | to designate a department or official to hear those | 4 | | complaints. If the chief county assessment officer designates | 5 | | a department or official to hear complaints because there is | 6 | | no actively installed or operating board of review, then | 7 | | references to the board of review in this Act shall mean the | 8 | | designated department or official. | 9 | | (b) Beginning on January 1, 2023, any owner of real | 10 | | property located in a county with 3,000,000 or more | 11 | | inhabitants may file a written vacancy fraud complaint with | 12 | | the appropriately designated board of review within the | 13 | | applicable filing period set forth in subsection (a) alleging | 14 | | that the subject property has received a vacancy reduction and | 15 | | that the owner of the subject property is not actively | 16 | | attempting to lease, sell, alter, or modify the property to | 17 | | prepare it for sale or lease. The board of review shall | 18 | | determine the process by which a vacancy fraud complaint may | 19 | | be filed. | 20 | | (c) Only one vacancy fraud complaint shall be considered | 21 | | and heard by the board of review for each instance a property | 22 | | received a vacancy reduction. The decision of the board of | 23 | | review shall be binding on future complaints based on the same | 24 | | vacancy fraud reduction in the same year. If more than one | 25 | | vacancy fraud complaint is pending concurrently, those | 26 | | complaints shall be consolidated. |
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| 1 | | (d) The party alleging vacancy fraud shall file the | 2 | | appropriate notice and documents, as prescribed by the board | 3 | | of review, in the manner determined by the board of review. | 4 | | Vacancy fraud complaints may be filed by the party alleging | 5 | | vacancy fraud or an attorney acting on that party's behalf. | 6 | | (e) Upon receipt of a written complaint that is timely | 7 | | filed, the board of review shall process the complaint and | 8 | | provide the appropriate notice to the property that is the | 9 | | subject of the complaint. The board of review that will hear | 10 | | the vacancy fraud complaint shall establish the process by | 11 | | which notice shall be provided and by which complaints shall | 12 | | be heard. | 13 | | Section 20. Factors in determining vacancy fraud. | 14 | | (a) In determining whether the owner of a subject property | 15 | | is actively attempting to sell or lease the subject property | 16 | | or actively attempting to modify or alter the subject property | 17 | | for sale or lease, the board may consider the following | 18 | | factors: | 19 | | (1) whether there is a sign on the subject property | 20 | | advertising that it is for sale or for lease; | 21 | | (2) whether the subject property is advertised for | 22 | | sale or for lease in a newspaper of general circulation | 23 | | where the property is located; | 24 | | (3) whether the subject property is advertised for | 25 | | sale or for lease on the internet, and whether potential |
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| 1 | | buyers or tenants are reasonably able to access the | 2 | | internet listing; | 3 | | (4) whether the owner of the subject property has | 4 | | contracted for the services of an Illinois licensed real | 5 | | estate professional for the purpose of selling or leasing | 6 | | the subject property; | 7 | | (5) whether any advertised sale price or advertised | 8 | | rental price for the subject property is excessive; | 9 | | (6) whether a contract for sale or lease of the | 10 | | subject property is pending; | 11 | | (7) whether the subject property is subsequently sold | 12 | | or leased and the amount of time that passed from the | 13 | | original vacancy until the sale or lease date; | 14 | | (8) whether the owner has applied for and received | 15 | | demolition or construction permits for the subject | 16 | | property; | 17 | | (9) whether the owner has responded to inquiries to | 18 | | lease or sell the property; | 19 | | (10) whether the property has been altered or modified | 20 | | for the purpose of leasing or selling the property; | 21 | | (11) whether the property owner has attempted to | 22 | | lease, sell, or alter or modify the subject property but | 23 | | has not been able to proceed because of the inability to | 24 | | obtain permits or because court proceedings involving | 25 | | prior renters have precluded such action; and | 26 | | (12) any other factors the board deems necessary to |
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| 1 | | determine if the owner of the subject property is actively | 2 | | attempting to lease or sell the subject property or | 3 | | actively attempting to modify or alter the subject | 4 | | property for sale or lease. | 5 | | (b) For purposes of paragraphs (1), (2), and (3) of | 6 | | subsection (a), any signs, newspaper advertisements, or | 7 | | internet advertisements shall contain valid contact | 8 | | information for the owner or agent of the property. If the | 9 | | contact information does not connect potential tenants or | 10 | | buyers to a person who can facilitate the purchase or lease of | 11 | | the subject property, or if the owner or agent does not respond | 12 | | to the inquiry within 30 days, the signs, newspaper | 13 | | advertisements, or internet advertisements may be disregarded | 14 | | in the determination of whether a property owner was actively | 15 | | attempting to sell or lease the subject property or actively | 16 | | attempting to modify or alter the subject property for sale or | 17 | | lease. | 18 | | Section 25. Penalties. | 19 | | (a) Before assessing any penalties under this Act, the | 20 | | board of review shall give notice of the complaint to the chief | 21 | | county assessment officer who certified the vacancy relief and | 22 | | give the chief county assessment officer an opportunity to be | 23 | | heard on the matter. | 24 | | (b) Upon determining that an owner of a subject property | 25 | | is not actively attempting to sell or lease the subject |
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| 1 | | property, or actively attempting to alter or modify the | 2 | | subject property for sale or lease, the board of review may | 3 | | direct the chief county assessment officer to do any of the | 4 | | following: | 5 | | (1) require from the owner of the subject property the | 6 | | payment of up to 3 times the amount of back taxes owed for | 7 | | any vacancy
reduction the subject property received for | 8 | | the period in which the subject property received the | 9 | | reduction but was found to have engaged in vacancy fraud | 10 | | as defined in this Act; and | 11 | | (2) require from the owner of the subject property the | 12 | | payment of interest of up to 10% per annum on any back | 13 | | taxes sought under paragraph (1). | 14 | | (c) The unpaid taxes shall be paid to the appropriate | 15 | | taxing districts in the manner provided for the payment of | 16 | | property taxes under the Property Tax Code and allocated to | 17 | | fund the implementation of this Act. Interest and penalties | 18 | | shall be paid to the chief county assessment officer's office | 19 | | to cover the costs associated with educating the public on the | 20 | | provisions of this Act. | 21 | | (d) No penalties shall be assessed until the person to be | 22 | | affected has been notified and given an opportunity to be | 23 | | heard.
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.".
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