Bill Text: IL HB1108 | 2011-2012 | 97th General Assembly | Amended
Bill Title: Amends the Housing Authorities Act. Makes a technical change in a Section concerning the short title.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Failed) 2013-01-08 - Session Sine Die [HB1108 Detail]
Download: Illinois-2011-HB1108-Amended.html
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1 | AMENDMENT TO HOUSE BILL 1108
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2 | AMENDMENT NO. ______. Amend House Bill 1108 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Findings. The General Assembly finds that | ||||||
5 | additional action is needed to help prevent foreclosures and | ||||||
6 | revitalize the economy in the State of Illinois. Foreclosures | ||||||
7 | are leaving families homeless or in dire financial straits. | ||||||
8 | Many borrowers could receive loan modifications under their | ||||||
9 | existing mortgage, which would help to alleviate this crisis, | ||||||
10 | keep families in their homes, and save Illinois neighborhoods | ||||||
11 | and communities from further damage. Many foreclosures could be | ||||||
12 | prevented with a modest investment in prevention activities, | ||||||
13 | including, outreach to borrowers and court-sponsored mediation | ||||||
14 | to help borrowers and lenders arrive at mutually-agreeable loan | ||||||
15 | modifications. Foreclosed properties contribute to the number | ||||||
16 | of vacant, abandoned, and tax-delinquent properties that | ||||||
17 | threaten communities around the State because those properties |
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1 | diminish property values, enable crime, and create health | ||||||
2 | hazards. Such properties also impose large costs on | ||||||
3 | municipalities and, at the same time, result in decreased | ||||||
4 | revenue for the municipalities. The need exists to address the | ||||||
5 | problems of vacant and abandoned property in a coordinated | ||||||
6 | manner and to foster the development of such property and | ||||||
7 | promote economic growth. Municipalities lack tools necessary | ||||||
8 | to ensure that vacant properties are adequately maintained and | ||||||
9 | secured. Land banks are one of the tools that can be used by | ||||||
10 | communities to facilitate the return of vacant, abandoned, and | ||||||
11 | tax-delinquent properties to productive use. Local governments | ||||||
12 | should be empowered to create land banks to acquire, develop, | ||||||
13 | maintain, and dispose of vacant and abandoned properties that | ||||||
14 | present a threat to communities around the State. Abandoned | ||||||
15 | properties may remain in the foreclosure process for a year or | ||||||
16 | more, which harms both communities and financial institutions | ||||||
17 | with a legal interest in the property. The foreclosure process | ||||||
18 | for abandoned properties should be expedited to help return the | ||||||
19 | properties to productive use.
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20 | Section 3. Short title. This Act may be cited as the | ||||||
21 | Illinois Land Banking Act.
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22 | Section 5. Definitions. | ||||||
23 | "Authority" means the land bank authority created pursuant | ||||||
24 | to this Act.
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1 | "Governmental unit" means a county or municipality. | ||||||
2 | "Intergovernmental agreement" means a contractual | ||||||
3 | agreement between 2 or more governmental agencies, including, | ||||||
4 | but not limited to, an agreement to jointly exercise any power, | ||||||
5 | privilege, or authority that agencies share in common and that | ||||||
6 | each might exercise separately under this Act.
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7 | Section 10. Authorization. A municipality may create a land | ||||||
8 | bank authority with the powers and restrictions specified in | ||||||
9 | this Act. In creating an authority, the municipality shall | ||||||
10 | provide for all of the following: | ||||||
11 | (1) Articles of incorporation for the authority, that | ||||||
12 | shall be filed with the Secretary of State and shall | ||||||
13 | include, in addition to other required and permissible | ||||||
14 | articles, an article specifying that the purpose of the | ||||||
15 | land bank authority is to stabilize communities by: | ||||||
16 | (A) Acquiring property that is vacant or abandoned | ||||||
17 | and in the foreclosure process or is otherwise | ||||||
18 | nonrevenue-generating or nontax-producing. | ||||||
19 | (B) Facilitating the reclamation, rehabilitation, | ||||||
20 | and reutilization of property that is vacant, | ||||||
21 | abandoned, in process of foreclosure, or is otherwise | ||||||
22 | nonrevenue-generating or nontax-producing. | ||||||
23 | (C) Efficiently holding and managing property that | ||||||
24 | is vacant, abandoned, in process of foreclosure, or is | ||||||
25 | otherwise nonrevenue-generating or nontax-producing |
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1 | pending its reclamation, rehabilitation, and | ||||||
2 | reutilization. | ||||||
3 | (2) The size of the board of directors for the | ||||||
4 | authority, which shall be composed of an odd number of | ||||||
5 | members. | ||||||
6 | (3) The qualifications, methods of selection, and | ||||||
7 | terms of office of the board members. | ||||||
8 | Two or more governmental units may elect to enter into an | ||||||
9 | intergovernmental agreement that creates a single land bank to | ||||||
10 | act on behalf of the governmental units, and the agreement | ||||||
11 | shall be authorized by and be in accordance with the provisions | ||||||
12 | of this Section.
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13 | Section 15. Board of directors; conflicts of interest. The | ||||||
14 | authority shall be governed by a board of directors. The board | ||||||
15 | shall consist of 3 or more directors. The board of directors | ||||||
16 | shall be composed of an odd number of members. The size of the | ||||||
17 | board may be adjusted in accordance with the land bank's | ||||||
18 | by-laws.
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19 | Notwithstanding any law to the contrary, any public officer | ||||||
20 | shall be eligible to serve as a board member and the acceptance | ||||||
21 | of the appointment shall neither terminate nor impair such | ||||||
22 | public office. For the purposes of this Section, "public | ||||||
23 | officer" means a person who is elected to a State or local | ||||||
24 | government office.
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25 | Any State or local government employee shall be eligible to |
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1 | serve as a board member.
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2 | The board of the authority shall meet from time to time as | ||||||
3 | required, and the presence of a majority of the board of | ||||||
4 | directors shall constitute a quorum. A chairperson shall be | ||||||
5 | elected from among the members, and he or she shall execute all | ||||||
6 | deeds, leases, and contracts of the authority when authorized | ||||||
7 | by the board. The board of the authority shall conduct meetings | ||||||
8 | in accordance with the Open Meetings Act. The board of the | ||||||
9 | authority shall adopt a code of ethics for its directors, | ||||||
10 | officers, and employees. The board of the authority shall | ||||||
11 | establish policies and procedures requiring the disclosure of | ||||||
12 | relationships that may give rise to a conflict of interest. | ||||||
13 | Members of a board shall not be liable personally for the | ||||||
14 | obligations of the land bank, and the rights of creditors shall | ||||||
15 | be solely against the land bank. | ||||||
16 | Members of the board must file written statements of | ||||||
17 | economic interest in accordance with Section 4A-101 of the | ||||||
18 | Illinois Governmental Ethics Act. | ||||||
19 | The board of the authority shall require that any member of | ||||||
20 | the board with a direct or indirect interest in any matter | ||||||
21 | disclose the member's interest to the board before the board | ||||||
22 | takes any action on that matter.
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23 | Members of the board of directors of an authority shall | ||||||
24 | serve without compensation.
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25 | It shall be unlawful for a member of the board, the spouse | ||||||
26 | of a member of the board, or an immediate family member of a |
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1 | member of the board to have or acquire a contract or have or | ||||||
2 | acquire a direct pecuniary interest in a contract with the | ||||||
3 | authority that relates to the authority. Any of these contracts | ||||||
4 | shall be deemed null and void. The limitations shall remain in | ||||||
5 | force for one year after the conclusion of the person's term of | ||||||
6 | office.
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7 | If a member of the board, the spouse of a member of the | ||||||
8 | board, or an immediate family member of a member of the board | ||||||
9 | is entitled to receive distributable income of a partnership, | ||||||
10 | association, corporation, or other business entity, then it is | ||||||
11 | unlawful for that partnership, association, corporation, or | ||||||
12 | other business entity to have or acquire a contract or a direct | ||||||
13 | pecuniary interest in a contract with the authority that | ||||||
14 | relates to the authority. Any of these contracts shall be | ||||||
15 | deemed null and void. The limitations shall remain in force for | ||||||
16 | one year after the conclusion of the person's term of office.
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17 | Section 20. Powers. The authority may perform any or all | ||||||
18 | of the powers enumerated in this Section, subject to any | ||||||
19 | conditions, restrictions, or limitations of the governmental | ||||||
20 | unit, including the power to: | ||||||
21 | (a) Acquire property pursuant to Section 25 of this | ||||||
22 | Act.
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23 | (b) Adopt, amend, and repeal bylaws for the regulation | ||||||
24 | of its affairs and the conduct of its business.
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25 | (c) Sue and be sued in its own name and plead and be |
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1 | impleaded, including, but not limited to, defending the | ||||||
2 | authority in an action to clear title to property conveyed | ||||||
3 | by the authority.
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4 | (d) Take any action, provide any notice, or instate any | ||||||
5 | proceeding required to clear or quiet title to property | ||||||
6 | held by the authority in order to establish ownership by | ||||||
7 | and vest title to property in the authority.
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8 | (e) Be made party to and defend any action or | ||||||
9 | proceeding concerning title claims against property held | ||||||
10 | by the authority.
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11 | (f) Subject to the written approval of the board of | ||||||
12 | directors and the municipality that created the authority | ||||||
13 | under this Act, borrow money and issue bonds and notes.
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14 | (g) Enter into contracts and other instruments | ||||||
15 | necessary, incidental, or convenient to the performance of | ||||||
16 | its duties and the exercise of its powers, including, but | ||||||
17 | not limited to, intergovernmental agreements, for the | ||||||
18 | joint exercise of power under this Act. | ||||||
19 | (h) Enter into contracts for the management of, the | ||||||
20 | collection of rent from, and the sale of real property held | ||||||
21 | by an authority. | ||||||
22 | (i) Enter into contracts with other entities, public or | ||||||
23 | private, for the provision of all or a portion of the | ||||||
24 | services necessary for the management and operation of the | ||||||
25 | authority.
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26 | (j) Solicit and accept gifts, grants, labor, loans, and |
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1 | other aid from any person, the federal government, this | ||||||
2 | State, a political subdivision of this State or any agency | ||||||
3 | of the federal government, or an intergovernmental entity | ||||||
4 | created under the laws of this State or participate in any | ||||||
5 | other way in a program of the federal government, this | ||||||
6 | State, a political subdivision of this State, or an | ||||||
7 | intergovernmental entity created under the laws of this | ||||||
8 | State.
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9 | (k) Procure insurance against loss in connection with | ||||||
10 | the property, assets, or activities of the authority.
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11 | (l) Control, hold, manage, maintain, operate, repair, | ||||||
12 | lease as lessor, secure, prevent the waste or deterioration | ||||||
13 | of, demolish, and take all other actions necessary to | ||||||
14 | preserve the value of the property it holds or owns.
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15 | (m) Remediate environmental contamination on any | ||||||
16 | property held by the authority.
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17 | (n) Fix, charge, and collect rents, fees, and charges | ||||||
18 | for use of property under the control of the authority or | ||||||
19 | for services provided by the authority.
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20 | (o) Grant or acquire a license, easement, or option | ||||||
21 | with respect to property as the authority determines is | ||||||
22 | reasonably necessary to achieve the purposes of the Act.
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23 | (p) Pay any tax or special assessment due on property | ||||||
24 | acquired or owned by the authority.
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25 | (q) Subject to the Public Funds Investment Act, invest | ||||||
26 | money of the authority, at the discretion of the board of |
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1 | directors of the authority, in instruments, obligations, | ||||||
2 | securities, or property determined proper by the board of | ||||||
3 | directors of the authority, and name and use depositories | ||||||
4 | for its money. | ||||||
5 | (r)
Employ its own employees or use employees of the | ||||||
6 | authorizing municipality or employees of the parties to | ||||||
7 | intergovernmental agreements.
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8 | (s) Employ legal and technical experts, other | ||||||
9 | officers, agents, or employees and pay them from the funds | ||||||
10 | of the authority and determine the qualifications, duties, | ||||||
11 | and compensation of those it employs.
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12 | (t) The board of directors of an authority may delegate | ||||||
13 | to one or more of its members, officers, agents, or | ||||||
14 | employees any powers or duties it considers proper.
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15 | (u) Reimburse members of the board of directors of the | ||||||
16 | authority for actual and necessary expenses subject to | ||||||
17 | available appropriations.
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18 | (v) Contract for goods and services and engage | ||||||
19 | personnel as necessary and engage the services of private | ||||||
20 | consultants, managers, legal counsel, engineers, accounts, | ||||||
21 | and auditors for rendering professional financial | ||||||
22 | assistance and advice payable out of any money available to | ||||||
23 | the authority.
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24 | (w) Prepare the reports or plans the authority | ||||||
25 | considers necessary to assist it in the exercise of its | ||||||
26 | powers under this Act and to monitor and evaluate progress |
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1 | under this Act.
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2 | (x) Extinguish taxes pursuant to Section 35 of this | ||||||
3 | Act. | ||||||
4 | (y) Convey, sell, transfer, exchange, lease as lessor, | ||||||
5 | or otherwise dispose of property, rights, or interests in | ||||||
6 | property to which the authority holds a legal interest to | ||||||
7 | any public or private person for value determined by the | ||||||
8 | authority. | ||||||
9 | An authority shall not exercise the power of eminent | ||||||
10 | domain. | ||||||
11 | The powers granted by this Act are in addition to the | ||||||
12 | powers granted by any other law, statute, or charter.
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13 | Section 25. Acquisition of property. The authority may | ||||||
14 | acquire real property or rights or interests in real property | ||||||
15 | by gift, devise, transfer, exchange, foreclosure, purchase, | ||||||
16 | purchase contracts, lease purchase agreements, installment | ||||||
17 | sales contracts, land contracts, or otherwise on terms and | ||||||
18 | conditions and in a manner the authority considers proper. | ||||||
19 | The authority may hold and own in its name any property | ||||||
20 | acquired by it or conveyed to it by this State, a foreclosing | ||||||
21 | governmental unit, a unit of local government, an | ||||||
22 | intergovernmental entity created under the laws of this State, | ||||||
23 | or any other public or private person, including, but not | ||||||
24 | limited to, property without clear title. | ||||||
25 | The authority may only acquire property within the |
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1 | jurisdiction of one of the municipalities granting the | ||||||
2 | authority power under this Act or within the jurisdiction of a | ||||||
3 | governmental entity pursuant to an intergovernmental agreement | ||||||
4 | with that governmental entity. A property outside the corporate | ||||||
5 | limits of a municipality is not considered within the | ||||||
6 | jurisdiction of the municipality until annexation is completed | ||||||
7 | pursuant to Section 7-1-1 of the Illinois Municipal Code. | ||||||
8 | All deeds, mortgages, contracts, leases, purchases, or | ||||||
9 | other agreements regarding property of an authority, including | ||||||
10 | agreements to acquire or dispose of real property, shall be | ||||||
11 | approved by and executed in the name of the authority. | ||||||
12 | The authority shall have the right to purchase properties | ||||||
13 | at tax sales conducted in accordance with Division 3.5 of the | ||||||
14 | Property Tax Code. | ||||||
15 | (1) The authority may tender a bid at a tax sale that | ||||||
16 | is a credit bid, consisting of the obligation of the | ||||||
17 | authority to satisfy the component parts of the bid by | ||||||
18 | payments to the respective political subdivisions. | ||||||
19 | (2) A bid by the authority at a tax sale for the | ||||||
20 | minimum amount shall take priority over all other bids for | ||||||
21 | the same property.
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22 | Section 30. Financing of land bank operations. A land bank | ||||||
23 | may receive funding through grants and loans from the | ||||||
24 | governmental unit that created the land bank, from other | ||||||
25 | municipalities, from the State of Illinois, from the federal |
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1 | government, and from other public and private sources. | ||||||
2 | A land bank may receive and retain payments for services | ||||||
3 | rendered, for rents and leasehold payments received, for | ||||||
4 | consideration for disposition of real and personal property, | ||||||
5 | for proceeds of insurance coverage for losses incurred, for | ||||||
6 | income from investments, and for any other asset and activity | ||||||
7 | lawfully permitted to a land bank under this Act | ||||||
8 | A municipality may authorize the remittance of a portion of | ||||||
9 | the real property taxes collected on real property conveyed by | ||||||
10 | a land bank authority. Up to 50% of those taxes may be remitted | ||||||
11 | to the land bank authority for up to 5 years after the land | ||||||
12 | bank has completed the conveyance of the property. | ||||||
13 | A land bank shall have power to issue bonds for any of its | ||||||
14 | corporate purposes, the principal and interest of which are | ||||||
15 | payable from its revenues generally. Any of the bonds may be | ||||||
16 | secured by a pledge of any revenues, including grants or | ||||||
17 | contributions, or by a mortgage of any property of the land | ||||||
18 | bank. | ||||||
19 | Bonds issued by the land bank shall be authorized by | ||||||
20 | resolution of the board and shall be limited obligations of the | ||||||
21 | land bank; the principal and interest, costs of issuance, and | ||||||
22 | other costs incidental thereto shall be payable solely from the | ||||||
23 | income and revenue derived from the sale, lease, or other | ||||||
24 | disposition of the assets of the land bank. In the discretion | ||||||
25 | of the land bank, the bonds may be additionally secured by | ||||||
26 | mortgage or other security device covering all or part of the |
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1 | project from which the revenues so pledged may be derived. Any | ||||||
2 | refunding bonds issued shall be payable from any source | ||||||
3 | described in this Section or from the investment of any of the | ||||||
4 | proceeds of the refunding bonds and shall not constitute an | ||||||
5 | indebtedness or pledge of the general credit of any | ||||||
6 | governmental unit or municipality within the meaning of any | ||||||
7 | constitutional or statutory limitation of indebtedness, and | ||||||
8 | each bond shall state that requirement.
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9 | Section 35. Taxes. When real property is acquired by the | ||||||
10 | authority, and that real property is encumbered by a lien or | ||||||
11 | claim for real property taxes owed to the governmental unit or | ||||||
12 | units that created the land bank, the land bank shall have the | ||||||
13 | power, by resolution of the board, to discharge and extinguish | ||||||
14 | any and all liens and claims. Whenever any real property is | ||||||
15 | acquired by a land bank, and that real property is encumbered | ||||||
16 | by a lien or claim for real property taxes owed to the school | ||||||
17 | district, or to a municipality other than the governmental unit | ||||||
18 | or units that created the land bank, the land bank shall have | ||||||
19 | the power, by resolution of the board, to discharge and | ||||||
20 | extinguish any and all such liens or claims if and only if the | ||||||
21 | school district, or municipality other than the governmental | ||||||
22 | unit or units that created the land bank, and the land bank, | ||||||
23 | have entered into an agreement authorizing such discharge and | ||||||
24 | extinguishment. To the extent necessary and appropriate, the | ||||||
25 | land bank shall file in appropriate public records evidence of |
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1 | the extinguishment and dissolution of the liens or claims. | ||||||
2 | All moneys received by an authority as payment of taxes, | ||||||
3 | penalties, or interest, or from the redemption or sale of | ||||||
4 | property subject to a tax lien of any taxing unit shall be | ||||||
5 | returned to the appropriate local tax collecting unit in which | ||||||
6 | the property is located. | ||||||
7 | Property of an authority is public property devoted to an | ||||||
8 | essential public and governmental function and purpose. Income | ||||||
9 | of the authority is considered to be for a public and | ||||||
10 | governmental purpose. The property of the authority and its | ||||||
11 | income and operation are exempt from all taxes and special | ||||||
12 | assessments of this State and all units of local government. | ||||||
13 | Bonds or notes issued by the authority, and the interest on and | ||||||
14 | income from those bonds and notes, are exempt from all taxation | ||||||
15 | of this State or a unit of local government.
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16 | Section 40. Proceeds. Except as otherwise provided in this | ||||||
17 | Act, as required by other law, as required under the provisions | ||||||
18 | of a deed, or as an authority otherwise agrees, any proceeds | ||||||
19 | received by the authority may be retained by the authority for | ||||||
20 | the purposes of this Act.
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21 | Section 45. Record maintenance. The authority shall | ||||||
22 | maintain a written inventory of all property held by the | ||||||
23 | authority. The property shall be inventoried and classified by | ||||||
24 | the authority according to title status and suitability for |
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1 | use. The inventory shall be available for public inspection | ||||||
2 | during regular business hours. | ||||||
3 | For each property held, the authority shall establish and | ||||||
4 | maintain itemized records and accounts reflecting all | ||||||
5 | transactions, expenditures, and revenues relating to all | ||||||
6 | property held by the authority.
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7 | Section 50. Dissolution. The articles of incorporation | ||||||
8 | shall specify the procedure under which a land bank authority | ||||||
9 | may be dissolved. Upon dissolution of the land bank all real | ||||||
10 | property, personal property, and other assets of the land bank | ||||||
11 | shall become the assets of the governmental unit or units that | ||||||
12 | created the land bank. In the event that 2 or more governmental | ||||||
13 | units create a land bank authority, the withdrawal of one or | ||||||
14 | more governmental units shall not result in the dissolution of | ||||||
15 | the land bank unless the intergovernmental agreement so | ||||||
16 | provides, and there is no governmental unit that desires to | ||||||
17 | continue the existence of the land bank.
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18 | Section 55. The Illinois Municipal Code is amended by | ||||||
19 | changing Section 11-20-15 and by adding Sections 11-20-15.1 and | ||||||
20 | 11-20-17 as follows:
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21 | (65 ILCS 5/11-20-15) | ||||||
22 | Sec. 11-20-15. Lien for removal costs. | ||||||
23 | (a) If the municipality incurs a removal cost under Section |
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1 | 11-20-7, 11-20-8, 11-20-12, or 11-20-13 , or 11-20-17 with | ||||||
2 | respect to any underlying parcel, then that cost is a lien upon | ||||||
3 | that underlying parcel. This lien is superior to all other | ||||||
4 | liens and encumbrances, except tax liens and as otherwise | ||||||
5 | provided in subsection (c)
of this Section. | ||||||
6 | (b) To perfect a lien under this Section, the municipality | ||||||
7 | must, within one year after the removal cost is incurred, file | ||||||
8 | notice of lien in the office of the recorder in the county in | ||||||
9 | which the underlying parcel is located or, if the underlying | ||||||
10 | parcel is registered under the Torrens system, in the office of | ||||||
11 | the Registrar of Titles of that county. The notice must consist | ||||||
12 | of a sworn statement setting out: | ||||||
13 | (1) a description of the underlying parcel that | ||||||
14 | sufficiently identifies the parcel; | ||||||
15 | (2) the amount of the removal cost; and | ||||||
16 | (3) the date or dates when the removal cost was | ||||||
17 | incurred by the municipality. | ||||||
18 | If, for any one parcel, the municipality engaged in any | ||||||
19 | removal activity on more than one occasion during the course of | ||||||
20 | one year, then the municipality may combine any or all of the | ||||||
21 | costs of each of those activities into a single notice of lien. | ||||||
22 | (c) A lien under this Section is not valid as to: (i) any | ||||||
23 | purchaser whose rights in and to the underlying parcel arose | ||||||
24 | after the removal activity but before the filing of the notice | ||||||
25 | of lien; or (ii) any mortgagee, judgment creditor, or other | ||||||
26 | lienor whose rights in and to the underlying parcel arose |
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1 | before the filing of the notice of lien. | ||||||
2 | (d) The removal cost is not a lien on the underlying parcel | ||||||
3 | unless a notice is personally served on, or sent by certified | ||||||
4 | mail to, the person to whom was sent the tax bill for the | ||||||
5 | general taxes on the property for the taxable year immediately | ||||||
6 | preceding the removal activities. The notice must be delivered | ||||||
7 | or sent after the removal activities have been performed, and | ||||||
8 | it must: (i) state the substance of this Section and the | ||||||
9 | substance of any ordinance of the municipality implementing | ||||||
10 | this Section; (ii) identify the underlying parcel, by common | ||||||
11 | description; and (iii) describe the removal activity. | ||||||
12 | (e) A lien under this Section may be enforced by | ||||||
13 | proceedings to foreclose as in case of mortgages or mechanics' | ||||||
14 | liens. An action to foreclose a lien under this Section must be | ||||||
15 | commenced within 2 years after the date of filing notice of | ||||||
16 | lien. | ||||||
17 | (f) Any person who performs a removal activity by the | ||||||
18 | authority of the municipality may, in his or her own name, file | ||||||
19 | a lien and foreclose on that lien in the same manner as a | ||||||
20 | municipality under this Section. | ||||||
21 | (g) A failure to file a foreclosure action does not, in any | ||||||
22 | way, affect the validity of the lien against the underlying | ||||||
23 | parcel. | ||||||
24 | (h) Upon payment of the lien cost by the owner of the | ||||||
25 | underlying parcel after notice of lien has been filed, the | ||||||
26 | municipality (or its agent under subsection (f)) shall release |
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| |||||||
1 | the lien, and the release may be filed of record by the owner | ||||||
2 | at his or her sole expense as in the case of filing notice of | ||||||
3 | lien. | ||||||
4 | (i) For the purposes of this Section: | ||||||
5 | "Lien cost" means the removal cost and the filing costs for | ||||||
6 | any notice of lien under subsection (b). | ||||||
7 | "Removal activity" means any activity for which a removal | ||||||
8 | cost was incurred. | ||||||
9 | "Removal cost" means a removal cost as defined under | ||||||
10 | Section 11-20-7, 11-20-8, 11-20-12, or 11-20-13 , or 11-20-17 . | ||||||
11 | "Underlying parcel" means a parcel of private property upon | ||||||
12 | which a removal activity was performed. | ||||||
13 | "Year" means a 365-day period. | ||||||
14 | (j) This Section applies only to liens filed after August | ||||||
15 | 14, 2009 (the effective date of Public Act 96-462).
| ||||||
16 | (k) This Section shall not apply to a lien filed pursuant | ||||||
17 | to Section 11-20-15.1. | ||||||
18 | (Source: P.A. 96-462, eff. 8-14-09; 96-856, eff. 3-1-10; | ||||||
19 | 96-1000, eff. 7-2-10.)
| ||||||
20 | (65 ILCS 5/11-20-15.1)
| ||||||
21 | Sec. 11-20-15.1. Lien for costs of removal, securing, and | ||||||
22 | enclosing on abandoned residential property. | ||||||
23 | (a) If the municipality elects to incur a removal cost | ||||||
24 | pursuant to subsection (d) of Section 11-20-7, subsection (d) | ||||||
25 | of Section 11-20-8, subsection (d) of Section 11-20-12, or |
| |||||||
| |||||||
1 | subsection (e) of Section 11-20-13, or subsection (g) of | ||||||
2 | 11-20-17, or a securing or enclosing cost pursuant to Section | ||||||
3 | 11-31-1.01 with respect to an abandoned residential property, | ||||||
4 | then that cost is a lien upon the underlying parcel of that | ||||||
5 | abandoned residential property. This lien is superior to all | ||||||
6 | other liens and encumbrances, except tax liens and as otherwise | ||||||
7 | provided in this Section. | ||||||
8 | (b) To perfect a lien under this Section, the municipality | ||||||
9 | must, within one year after the cost is incurred for the | ||||||
10 | activity, file notice of the lien in the office of the recorder | ||||||
11 | in the county in which the abandoned residential property is | ||||||
12 | located or, if the abandoned residential property is registered | ||||||
13 | under the Torrens system, in the office of the Registrar of | ||||||
14 | Titles of that county, a sworn statement setting out: | ||||||
15 | (1) a description of the abandoned residential | ||||||
16 | property that sufficiently identifies the parcel; | ||||||
17 | (2) the amount of the cost of the activity; | ||||||
18 | (3) the date or dates when the cost for the activity | ||||||
19 | was incurred by the municipality; and | ||||||
20 | (4) a statement that the lien has been filed pursuant | ||||||
21 | to subsection (d) of Section 11-20-7, subsection (d) of | ||||||
22 | Section 11-20-8, subsection (d) of Section 11-20-12, | ||||||
23 | subsection (e) of Section 11-20-13, subsection (g) of | ||||||
24 | 11-20-17, or Section 11-31-1.01, as applicable. | ||||||
25 | If, for any abandoned residential property, the | ||||||
26 | municipality engaged in any activity on more than one occasion |
| |||||||
| |||||||
1 | during the course of one year, then the municipality may | ||||||
2 | combine any or all of the costs of each of those activities | ||||||
3 | into a single notice of lien. | ||||||
4 | (c) To enforce a lien pursuant to this Section, the | ||||||
5 | municipality must maintain contemporaneous records that | ||||||
6 | include, at a minimum: (i) a dated statement of finding by the | ||||||
7 | municipality that the property for which the work is to be | ||||||
8 | performed has become abandoned residential property, which | ||||||
9 | shall include (1) the date when the property was first known or | ||||||
10 | observed to be unoccupied by any lawful occupant or occupants, | ||||||
11 | (2) a description of the actions taken by the municipality to | ||||||
12 | contact the legal owner or owners of the property identified on | ||||||
13 | the recorded mortgage, or, if known, any agent of the owner or | ||||||
14 | owners, including the dates such actions were taken, and (3) a | ||||||
15 | statement that no contacts were made with the legal owner or | ||||||
16 | owners or their agents as a result of such actions, (ii) a | ||||||
17 | dated certification by an authorized official of the | ||||||
18 | municipality of the necessity and specific nature of the work | ||||||
19 | to be performed, (iii) a copy of the agreement with the person | ||||||
20 | or entity performing the work that includes the legal name of | ||||||
21 | the person or entity, the rate or rates to be charged for | ||||||
22 | performing the work, and an estimate of the total cost of the | ||||||
23 | work to be performed, (iv) detailed invoices and payment | ||||||
24 | vouchers for all payments made by the municipality for such | ||||||
25 | work, and (v) a statement as to whether the work was engaged | ||||||
26 | through a competitive bidding process, and if so, a copy of all |
| |||||||
| |||||||
1 | proposals submitted by the bidders for such work. | ||||||
2 | (d) A lien under this Section shall be enforceable | ||||||
3 | exclusively at the hearing for confirmation of sale of the | ||||||
4 | abandoned residential property that is held pursuant to | ||||||
5 | subsection (b) of Section 15-1508 of the Code of Civil | ||||||
6 | Procedure and shall be limited to a claim of interest in the | ||||||
7 | proceeds of the sale and subject to the requirements of this | ||||||
8 | Section. Any mortgagee who holds a mortgage on the property, or | ||||||
9 | any beneficiary or trustee who holds a deed of trust on the | ||||||
10 | property, may contest the lien or the amount of the lien at any | ||||||
11 | time during the foreclosure proceeding upon motion and notice | ||||||
12 | in accordance with court rules applicable to motions generally. | ||||||
13 | Grounds for forfeiture of the lien or the superior status of | ||||||
14 | the lien granted by subsection (a) of this Section shall | ||||||
15 | include, but not be limited to, a finding by the court that: | ||||||
16 | (i) the municipality has not complied with subsection (b) or | ||||||
17 | (c) of this Section, (ii) the scope of the work was not | ||||||
18 | reasonable under the circumstances, (iii) the work exceeded the | ||||||
19 | authorization for the work to be performed under subsection (a) | ||||||
20 | of Section 11-20-7, subsection (a) of Section 11-20-8, | ||||||
21 | subsection (a) of Section 11-20-12, subsection (a) of Section | ||||||
22 | 11-20-13, or subsection (a) of Section 11-31-1.01, as | ||||||
23 | applicable, or (iv) the cost of the services rendered or | ||||||
24 | materials provided was not commercially reasonable. Forfeiture | ||||||
25 | of the superior status of the lien otherwise granted by this | ||||||
26 | Section shall not constitute a forfeiture of the lien as a |
| |||||||
| |||||||
1 | subordinate lien. | ||||||
2 | (e) Upon payment of the amount of a lien filed under this | ||||||
3 | Section by the mortgagee, servicer, owner, or any other person, | ||||||
4 | the municipality shall release the lien, and the release may be | ||||||
5 | filed of record by the person making such payment at the | ||||||
6 | person's sole expense as in the case of filing notice of lien. | ||||||
7 | (f) Notwithstanding any other provision of this Section, a | ||||||
8 | municipality may not file a lien pursuant to this Section for | ||||||
9 | activities performed pursuant to Section 11-20-7, Section | ||||||
10 | 11-20-8, Section 11-20-12, Section 11-20-13, or Section | ||||||
11 | 11-31-1.01, if: (i) the mortgagee or servicer of the abandoned | ||||||
12 | residential property has provided notice to the municipality | ||||||
13 | that the mortgagee or servicer has performed or will perform | ||||||
14 | the remedial actions specified in the notice that the | ||||||
15 | municipality otherwise might perform pursuant to subsection | ||||||
16 | (d) of Section 11-20-7, subsection (d) of Section 11-20-8, | ||||||
17 | subsection (d) of Section 11-20-12, subsection (e) of Section | ||||||
18 | 11-20-13, or Section 11-31-1.01, provided that the remedial | ||||||
19 | actions specified in the notice have been performed or are | ||||||
20 | performed or initiated in good faith within 30 days of such | ||||||
21 | notice; or (ii) the municipality has provided notice to the | ||||||
22 | mortgagee or servicer of a problem with the property requiring | ||||||
23 | the remedial actions specified in the notice that the | ||||||
24 | municipality otherwise would perform pursuant to subsection | ||||||
25 | (d) of Section 11-20-7, subsection (d) of Section 11-20-8, | ||||||
26 | subsection (d) of Section 11-20-12, subsection (e) of Section |
| |||||||
| |||||||
1 | 11-20-13, or Section 11-31-1.01, and the mortgagee or servicer | ||||||
2 | has performed or performs or initiates in good faith the | ||||||
3 | remedial actions specified in the notice within 30 days of such | ||||||
4 | notice. | ||||||
5 | (g) This Section and subsection (d) of Section 11-20-7, | ||||||
6 | subsection (d) of Section 11-20-8, subsection (d) of Section | ||||||
7 | 11-20-12, subsection (e) of Section 11-20-13, subsection (g) of | ||||||
8 | 11-20-17, or Section 11-31-1.01 shall apply only to activities | ||||||
9 | performed, costs incurred, and liens filed after the effective | ||||||
10 | date of this amendatory Act of the 96th General Assembly. | ||||||
11 | (h) For the purposes of this Section and subsection (d) of | ||||||
12 | Section 11-20-7, subsection (d) of Section 11-20-8, subsection | ||||||
13 | (d) of Section 11-20-12, subsection (e) of Section 11-20-13, | ||||||
14 | subsection (g) of 11-20-17, or Section 11-31-1.01: | ||||||
15 | "Abandoned residential property" means any type of | ||||||
16 | permanent residential dwelling unit, including detached single | ||||||
17 | family structures, and townhouses, condominium units and | ||||||
18 | multifamily rental apartments covering the entire property, | ||||||
19 | and manufactured homes treated under Illinois law as real | ||||||
20 | estate and not as personal property, that has been unoccupied | ||||||
21 | by any lawful occupant or occupants for at least 90 days, and | ||||||
22 | for which after such 90 day period, the municipality has made | ||||||
23 | good faith efforts to contact the legal owner or owners of the | ||||||
24 | property identified on the recorded mortgage, or, if known, any | ||||||
25 | agent of the owner or owners, and no contact has been made. A | ||||||
26 | property for which the municipality has been given notice of |
| |||||||
| |||||||
1 | the order of confirmation of sale pursuant to subsection (b-10) | ||||||
2 | of Section 15-1508 of the Code of Civil Procedure shall not be | ||||||
3 | deemed to be an abandoned residential property for the purposes | ||||||
4 | of subsection (d) of Section 11-20-7, subsection (d) of Section | ||||||
5 | 11-20-8, subsection (d) of Section 11-20-12, subsection (e) of | ||||||
6 | Section 11-20-13, subsection (g) of 11-20-17, and Section | ||||||
7 | 11-31-1.01 of this Code. | ||||||
8 | "MERS program" means the nationwide Mortgage Electronic | ||||||
9 | Registration System approved by Fannie Mae, Freddie Mac, and | ||||||
10 | Ginnie Mae that has been created by the mortgage banking | ||||||
11 | industry with the mission of registering every mortgage loan in | ||||||
12 | the United States to lawfully make information concerning each | ||||||
13 | residential mortgage loan and the property securing it | ||||||
14 | available by Internet access to mortgage originators, | ||||||
15 | servicers, warehouse lenders, wholesale lenders, retail | ||||||
16 | lenders, document custodians, settlement agents, title | ||||||
17 | companies, insurers, investors, county recorders, units of | ||||||
18 | local government, and consumers. | ||||||
19 | (i) Any entity or person who performs a removal, securing, | ||||||
20 | or enclosing activity pursuant to the authority of a | ||||||
21 | municipality under subsection (d) of Section 11-20-7, | ||||||
22 | subsection (d) of Section 11-20-8, subsection (d) of Section | ||||||
23 | 11-20-12, subsection (e) of Section 11-20-13, subsection (g) of | ||||||
24 | Section 11-20-17, or Section 11-31-1.01, may, in its, his, or | ||||||
25 | her own name, file a lien pursuant to subsection (b) of this | ||||||
26 | Section and appear in a foreclosure action on that lien |
| |||||||
| |||||||
1 | pursuant to subsection (d) of this Section in the place of the | ||||||
2 | municipality, provided that the municipality shall remain | ||||||
3 | subject to subsection (c) of this Section, and such party shall | ||||||
4 | be subject to all of the provisions in this Section as if such | ||||||
5 | party were the municipality. | ||||||
6 | (i-5) All amounts received by the municipality for costs | ||||||
7 | incurred pursuant to this Section
for which the municipality | ||||||
8 | has been reimbursed under Section 7.31 of the Illinois Housing | ||||||
9 | Development Act
shall be remitted to the State Treasurer for | ||||||
10 | deposit into the Abandoned Residential Property
Municipality | ||||||
11 | Relief Fund. | ||||||
12 | (j) If prior to subsection (d) of Section 11-20-7, | ||||||
13 | subsection (d) of Section 11-20-8, subsection (d) of Section | ||||||
14 | 11-20-12, and subsection (e) of Section 11-20-13 , and | ||||||
15 | subsection (g) of Section 11-20-17, becoming inoperative a lien | ||||||
16 | is filed pursuant to any of those subsections, then the lien | ||||||
17 | shall remain in full force and effect after the subsections | ||||||
18 | have become inoperative, subject to all of the provisions of | ||||||
19 | this Section. If prior to the repeal of Section 11-31-1.01 a | ||||||
20 | lien is filed pursuant to Section 11-31-1.01, then the lien | ||||||
21 | shall remain in full force and effect after the repeal of | ||||||
22 | Section 11-31-1.01, subject to all of the provisions of this | ||||||
23 | Section.
| ||||||
24 | (Source: P.A. 96-856, eff. 3-1-10; 96-1419, eff. 10-1-10.)
| ||||||
25 | (65 ILCS 5/11-20-17 new) |
| |||||||
| |||||||
1 | Sec. 11-20-17. Vacant and abandoned property ordinances. | ||||||
2 | (a) For the purposes of minimizing the hazards to persons | ||||||
3 | and property resulting from vacant and abandoned property, the | ||||||
4 | corporate authority of each municipality may prescribe rules, | ||||||
5 | regulations, or ordinances for the maintenance of vacant and | ||||||
6 | abandoned property. The corporate authorities of a | ||||||
7 | municipality may impose registration fees for vacant and | ||||||
8 | abandoned property and fines for failure to comply with the | ||||||
9 | rules, regulations, or ordinances enacted pursuant to this | ||||||
10 | Section. | ||||||
11 | (b) Pursuant to such rules, regulations, or ordinances, | ||||||
12 | municipalities may hold responsible for failure to maintain or | ||||||
13 | secure a vacant and abandoned property (i) any owner of the | ||||||
14 | property, (ii) any beneficiary or trustee who holds a deed of | ||||||
15 | trust on the property, or (iii) any mortgagee who holds a | ||||||
16 | mortgage on the property. | ||||||
17 | (c) A beneficiary, trustee, or mortgagee seeking to comply | ||||||
18 | with rules, regulations, or ordinances regarding the | ||||||
19 | maintenance or security of vacant property may enter that | ||||||
20 | property to remedy any potential violation of a rule, | ||||||
21 | regulation, or ordinance to maintain or secure vacant property, | ||||||
22 | provided such entry is not barred by an automatic stay issued | ||||||
23 | by a bankruptcy court. | ||||||
24 | (d) Beneficiaries, trustees, mortgagees, and their agents | ||||||
25 | and assignees shall be held harmless from and against all | ||||||
26 | claims of negligence, civil trespass, and criminal trespass in |
| |||||||
| |||||||
1 | connection with compliance activity under the rules, | ||||||
2 | regulations, and ordinances for the maintenance or security of | ||||||
3 | vacant property, provided that the person authorizing or | ||||||
4 | engaging in the compliance activity has (i) made a good faith | ||||||
5 | effort to identify any owner and occupant of the property, and | ||||||
6 | (ii) made a good faith effort to contact any owner and occupant | ||||||
7 | in a manner reasonably calculated to give the owner and | ||||||
8 | occupant notice that the compliance activity is imminent. | ||||||
9 | (e) For the purpose of this Section, "owner" means the | ||||||
10 | legal or beneficial owner of an improved or unimproved parcel | ||||||
11 | of real estate. | ||||||
12 | (f) For the purpose of this Section, "mortgagee" means (i) | ||||||
13 | the holder of an indebtedness, obligee of a non-monetary | ||||||
14 | obligation secured by a mortgage, any assignee of the mortgage, | ||||||
15 | or any person designated or authorized to act on behalf of such | ||||||
16 | holder, (ii) any person or entity who previously initiated a | ||||||
17 | foreclosure on the vacant property or obtained a foreclosure | ||||||
18 | judgment against the vacant property if the deed to vacant | ||||||
19 | property has not been transferred to the purchaser at the | ||||||
20 | judicial sale, or (iii) any person claiming through a mortgagee | ||||||
21 | as successor. | ||||||
22 | (g) For the purpose of this section, "vacant property" | ||||||
23 | means any property having complete or incomplete structures | ||||||
24 | that are empty or otherwise uninhabited. | ||||||
25 | (h) For the purpose of this Section, "removal cost" means | ||||||
26 | the total value of fees and fines imposed pursuant to rules, |
| |||||||
| |||||||
1 | regulations, or ordinances regarding maintenance, security, or | ||||||
2 | demolition of vacant property. | ||||||
3 | (i) To enforce fees and fines pursuant to this Section, a | ||||||
4 | municipality may: (i) elect to obtain a lien upon the | ||||||
5 | underlying property for the removal cost in accordance with | ||||||
6 | Section 11-20-15; (ii) in the case of an abandoned residential | ||||||
7 | property as defined in Section 11-20-15.1, elect to obtain a | ||||||
8 | lien for the removal cost pursuant to Section 11-20-15.1, in | ||||||
9 | which case the provisions of Section 11-20-15.1 shall be the | ||||||
10 | exclusive remedy for the removal cost; or (iii) elect to obtain | ||||||
11 | a lien for the removal cost by exercising any enforcement | ||||||
12 | actions available under its police powers.
| ||||||
13 | Section 60. The Code of Civil Procedure is amended by | ||||||
14 | changing Sections 15-1512 and 15-1603 and by adding Section | ||||||
15 | 15-1510.5 as follows:
| ||||||
16 | (735 ILCS 5/15-1510.5 new) | ||||||
17 | Sec. 15-1510.5. Mortgage Foreclosure Prevention Fee. | ||||||
18 | (a) Definitions. | ||||||
19 | "Civil legal services provider" means a not-for-profit | ||||||
20 | corporation that (1) employs one or more attorneys who are | ||||||
21 | licensed to practice law in the State of Illinois and who | ||||||
22 | directly provide civil legal services or (2) is established | ||||||
23 | for the purpose of providing civil legal services by an | ||||||
24 | organized panel of pro bono attorneys. |
| |||||||
| |||||||
1 | "Community-based outreach" means in-person contact | ||||||
2 | with mortgagors in foreclosure intended to inform such | ||||||
3 | mortgagors about the foreclosure process and the | ||||||
4 | mortgagors' rights and options for assistance in the | ||||||
5 | process, including the availability of mortgage | ||||||
6 | foreclosure housing counseling and mortgage foreclosure | ||||||
7 | legal services. | ||||||
8 | "Comprehensive court-sponsored foreclosure mediation | ||||||
9 | programs" means programs, administered at least in part by | ||||||
10 | an Illinois Circuit Court, that offer mediation in actions | ||||||
11 | for foreclosure. Programs shall provide mortgagors access | ||||||
12 | to housing counseling and legal services and include | ||||||
13 | community-based outreach. | ||||||
14 | "Governmental agency" means any State, county, or | ||||||
15 | local government body in Illinois, and any agency or | ||||||
16 | instrumentality thereof, corporate or otherwise. | ||||||
17 | "HUD-approved housing counseling agency" means a | ||||||
18 | mortgage foreclosure housing counseling agency that is | ||||||
19 | approved by the United States Department of Housing and | ||||||
20 | Urban Development, or any successor agency. | ||||||
21 | "Mortgage foreclosure housing counseling" means | ||||||
22 | housing counseling provided by a mortgage foreclosure | ||||||
23 | counselor that works for a HUD-approved housing counseling | ||||||
24 | agency. | ||||||
25 | "Mortgage foreclosure legal services" means legal | ||||||
26 | services to mortgagors with an interest in a property |
| |||||||
| |||||||
1 | subject to a mortgage foreclosure proceeding under Article | ||||||
2 | XV of the Code of Civil Procedure provided by a civil legal | ||||||
3 | service attorney that works for a civil legal services | ||||||
4 | provider. | ||||||
5 | "Mortgage Foreclosure Prevention Fund" means a special | ||||||
6 | fund used expressly to support mortgage foreclosure | ||||||
7 | prevention programs. | ||||||
8 | (b) There shall be a $500 Mortgage Foreclosure Prevention | ||||||
9 | Fee collected from the proceeds resulting from a judicial sale | ||||||
10 | of residential real estate conducted pursuant to a foreclosure | ||||||
11 | judgment under this Article. The fee shall be remitted to the | ||||||
12 | Department of Revenue by the purchaser at the time of sale and | ||||||
13 | the Department shall deposit these amounts into the Mortgage | ||||||
14 | Foreclosure Prevention Fund. Amounts in the Fund may be | ||||||
15 | expended only for eligible activities described in this | ||||||
16 | Section. | ||||||
17 | Eligible foreclosure mitigation activities are mortgage | ||||||
18 | foreclosure housing counseling, mortgage foreclosure legal | ||||||
19 | services, community-based outreach, and administration of | ||||||
20 | comprehensive court-sponsored foreclosure mediation programs. | ||||||
21 | Eligible entities are HUD-approved housing counseling | ||||||
22 | agencies, civil legal services providers, not-for-profit | ||||||
23 | corporations, and governmental agencies. | ||||||
24 | (c) All of the moneys in the Fund collected in counties | ||||||
25 | with a population greater than 3,000,000 shall be used to make | ||||||
26 | grants to eligible entities for eligible foreclosure |
| |||||||
| |||||||
1 | mitigation activities to be carried out in coordination with | ||||||
2 | comprehensive court-sponsored foreclosure mediation programs | ||||||
3 | serving residents of the county in which the funds were | ||||||
4 | collected. At least 75% of those moneys shall be used to make | ||||||
5 | grants to eligible entities for mortgage foreclosure housing | ||||||
6 | counseling or mortgage foreclosure legal services. | ||||||
7 | (d) Moneys in the Fund collected in counties with a | ||||||
8 | population less than 3,000,000 shall be used to make grants to | ||||||
9 | eligible entities for eligible foreclosure mitigation | ||||||
10 | activities serving residents of the county in which the funds | ||||||
11 | were collected. At least 75% of those moneys shall be used to | ||||||
12 | make grants to eligible entities for mortgage foreclosure | ||||||
13 | housing counseling or mortgage foreclosure legal services. | ||||||
14 | (e) All grants shall be made by the Illinois Housing | ||||||
15 | Development Authority (IDHA). IHDA may prescribe reasonable | ||||||
16 | rules for the administration of this Section.
| ||||||
17 | (735 ILCS 5/15-1512) (from Ch. 110, par. 15-1512)
| ||||||
18 | Sec. 15-1512. Application of Proceeds of Sale and Surplus. | ||||||
19 | The proceeds
resulting from a sale of real estate under this | ||||||
20 | Article shall be applied
in the following order:
| ||||||
21 | (a) the reasonable expenses of sale;
| ||||||
22 | (b) the reasonable expenses of securing possession before | ||||||
23 | sale, holding,
maintaining, and preparing the real estate for | ||||||
24 | sale, including payment of
taxes and other governmental | ||||||
25 | charges, premiums on hazard and liability
insurance, |
| |||||||
| |||||||
1 | receiver's and management fees, the Mortgage Foreclosure | ||||||
2 | Prevention Fee, and, to the extent provided
for in the mortgage
| ||||||
3 | or other recorded agreement and not prohibited by law, | ||||||
4 | reasonable
attorneys' fees, payments made pursuant to Section | ||||||
5 | 15-1505 and other legal
expenses incurred by the mortgagee;
| ||||||
6 | (c) if the sale was pursuant to judicial foreclosure, | ||||||
7 | satisfaction of
claims in the order of priority adjudicated in | ||||||
8 | the judgment of foreclosure
or order confirming the sale; and
| ||||||
9 | (d) remittance of any surplus to be held by the person | ||||||
10 | appointed by
the court to conduct the
sale until further order | ||||||
11 | of the court. If there is a surplus, such person
conducting the | ||||||
12 | sale shall send written notice to all parties to the
proceeding | ||||||
13 | advising them of the amount of the surplus, and that the | ||||||
14 | surplus
shall be held until a party obtains a court order for | ||||||
15 | its distribution or
until, in the absence of an order, the | ||||||
16 | surplus is forfeited to the State.
| ||||||
17 | (Source: P.A. 86-974.)
| ||||||
18 | (735 ILCS 5/15-1603) (from Ch. 110, par. 15-1603)
| ||||||
19 | Sec. 15-1603. Redemption.
| ||||||
20 | (a) Owner of Redemption. Except as
provided in subsection | ||||||
21 | (b) of Section 15-1402, only an owner of redemption
may redeem | ||||||
22 | from the foreclosure, and such owner of redemption may redeem
| ||||||
23 | only during the redemption period specified in subsection (b) | ||||||
24 | of Section
15-1603 and only if the right of redemption has not | ||||||
25 | been validly waived.
|
| |||||||
| |||||||
1 | (b) Redemption Period.
| ||||||
2 | (1) In the foreclosure of a mortgage of
real estate | ||||||
3 | which is residential real estate at the time the | ||||||
4 | foreclosure
is commenced, the redemption period shall end | ||||||
5 | on the later of
(i) the date 7 months from the date the | ||||||
6 | mortgagor or, if more than one, all
the mortgagors (A) have | ||||||
7 | been served with summons or by publication or (B)
have | ||||||
8 | otherwise submitted to the jurisdiction of the court, or | ||||||
9 | (ii) the date
3 months from the date of entry of a judgment | ||||||
10 | of foreclosure.
| ||||||
11 | (2) In all other foreclosures, the redemption period | ||||||
12 | shall end on the later of
(i) the date 6 months from the | ||||||
13 | date the mortgagor or, if more than one,
all the mortgagors | ||||||
14 | (A) have been served with summons or by publication or
(B) | ||||||
15 | have otherwise submitted to the jurisdiction of the court, | ||||||
16 | or (ii) the
date 3 months from the date of entry of a | ||||||
17 | judgment of foreclosure.
| ||||||
18 | (3) Notwithstanding paragraphs (1) and (2),
the | ||||||
19 | redemption period shall end at the later
of the expiration | ||||||
20 | of any reinstatement period provided for in Section
15-1602 | ||||||
21 | or the date 60 days after the date the judgment of | ||||||
22 | foreclosure is
entered, if the court finds that (i) the | ||||||
23 | value of
the mortgaged real estate as of the date of the | ||||||
24 | judgment is less than 90%
of the amount specified pursuant | ||||||
25 | to subsection (d) of Section 15-1603 and
(ii) the mortgagee | ||||||
26 | waives any and all rights to a personal judgment for a
|
| |||||||
| |||||||
1 | deficiency against the mortgagor and against all other | ||||||
2 | persons liable for
the indebtedness or other obligations | ||||||
3 | secured by the mortgage.
| ||||||
4 | (4) Notwithstanding paragraphs (1) and (2),
the | ||||||
5 | redemption period shall end on the date 30
days after the | ||||||
6 | date the judgment of foreclosure is entered if
the court | ||||||
7 | finds that the mortgaged real estate has
been abandoned. | ||||||
8 | The court may find that the mortgaged real estate has been | ||||||
9 | abandoned if evidence is presented supporting the fact that | ||||||
10 | the mortgaged property has been abandoned and no appearance | ||||||
11 | has been made to oppose the finding that the mortgaged | ||||||
12 | property has been abandoned. A mortgaged property is | ||||||
13 | abandoned if the mortgaged property is not actually | ||||||
14 | occupied, more than 5 attempts, at least one by certified | ||||||
15 | mail and one by telephone, to contact the defendant have | ||||||
16 | been made, and either (i) at least 2 of the following | ||||||
17 | factors apply: (A) construction was initiated on the | ||||||
18 | property and was discontinued prior to completion, leaving | ||||||
19 | the building unsuitable for occupancy, and no construction | ||||||
20 | has taken place for at least 6 months; (B) the property has | ||||||
21 | had more than one, uncorrected, municipal code violation | ||||||
22 | over the past year; (C) gas, electric, or water service to | ||||||
23 | the premises has been terminated; (D) windows or entrances | ||||||
24 | to the premises are boarded up or closed off, or multiple | ||||||
25 | window panes are broken and unrepaired; (E) doors to the | ||||||
26 | premises are smashed through, broken off, unhinged, or |
| |||||||
| |||||||
1 | continuously unlocked; (F) the police or sheriff's office | ||||||
2 | has received at least 2 reports of trespassers on the | ||||||
3 | premises, or of vandalism or other illegal acts being | ||||||
4 | committed on the premises in the past 6 months, or (ii) | ||||||
5 | there exist written statements of the mortgagor, the | ||||||
6 | mortgagor's personal representatives or assigns, including | ||||||
7 | documents of conveyance, which indicate a clear intent to | ||||||
8 | abandon the premises. | ||||||
9 | In cases where the redemption period is shortened on
| ||||||
10 | account of abandonment, the reinstatement period shall not | ||||||
11 | extend beyond
the redemption period as shortened.
| ||||||
12 | (c) Extension of Redemption Period.
| ||||||
13 | (1) Once expired, the right of redemption provided for | ||||||
14 | in Sections
15-1603 or 15-1604 shall not be revived. The | ||||||
15 | period within which the right of
redemption provided for in | ||||||
16 | Sections 15-1603 or 15-1604 may be exercised runs
| ||||||
17 | independently of any action by any person to enforce the | ||||||
18 | judgment of
foreclosure or effect a sale pursuant thereto. | ||||||
19 | Neither the initiation of
any legal proceeding nor the | ||||||
20 | order of any court staying the enforcement of
a judgment of | ||||||
21 | foreclosure or the sale pursuant to a judgment or the
| ||||||
22 | confirmation of the sale, shall have the effect of tolling | ||||||
23 | the running of
the redemption period.
| ||||||
24 | (2) If a court has the authority to stay, and does | ||||||
25 | stay, the running of
the redemption period, or if the | ||||||
26 | redemption period is extended by any
statute of the United |
| |||||||
| |||||||
1 | States, the redemption period shall be extended until
the | ||||||
2 | expiration of the same number of days after the expiration | ||||||
3 | of the stay
order as the number of days remaining in the | ||||||
4 | redemption period at the time
the stay order became | ||||||
5 | effective, or, if later, until the expiration of 30
days | ||||||
6 | after the stay order terminates. If the stay
order | ||||||
7 | terminates more than 30 days prior to the expiration of the
| ||||||
8 | redemption period, the redemption period shall not be | ||||||
9 | extended.
| ||||||
10 | (d) Amount Required to Redeem. The amount required to | ||||||
11 | redeem shall be the sum of:
| ||||||
12 | (1) The amount specified in the judgment of | ||||||
13 | foreclosure, which shall
consist of (i) all principal and | ||||||
14 | accrued interest secured by the mortgage
and due as of the | ||||||
15 | date of the judgment, (ii) all costs allowed by law,
(iii) | ||||||
16 | costs and expenses approved by the court, (iv) to the | ||||||
17 | extent provided
for in the mortgage and approved by the | ||||||
18 | court, additional costs, expenses
and reasonable | ||||||
19 | attorneys' fees incurred by the mortgagee, (v) all amounts
| ||||||
20 | paid pursuant to Section 15-1505 and (vi) per diem interest | ||||||
21 | from the date
of judgment to the date of redemption | ||||||
22 | calculated at the mortgage rate of
interest applicable as | ||||||
23 | if no default had occurred; and
| ||||||
24 | (2) The amount of other expenses authorized by the | ||||||
25 | court which the
mortgagee reasonably incurs between the | ||||||
26 | date of judgment and the date of
redemption, which shall be |
| |||||||
| |||||||
1 | the amount certified by the mortgagee in
accordance with | ||||||
2 | subsection (e) of Section 15-1603.
| ||||||
3 | (e) Notice of Intent to Redeem. An owner of redemption who | ||||||
4 | intends to
redeem shall give written notice of such intent to | ||||||
5 | redeem to the
mortgagee's attorney of record specifying the | ||||||
6 | date designated for
redemption and the current address of the | ||||||
7 | owner of redemption for purposes
of receiving notice. Such | ||||||
8 | owner of redemption shall file with the clerk of
the court a | ||||||
9 | certification of the giving of such notice. The notice of
| ||||||
10 | intent to redeem must be received by the mortgagee's attorney | ||||||
11 | at least 15
days (other than Saturday, Sunday or court holiday) | ||||||
12 | prior to the date
designated for redemption. The mortgagee | ||||||
13 | shall thereupon file with the
clerk of the court and shall give | ||||||
14 | written notice to the owner of redemption
at least three days | ||||||
15 | (other than Saturday, Sunday or court holiday) before
the date | ||||||
16 | designated for redemption a certification,
accompanied by | ||||||
17 | copies of paid receipts or appropriate affidavits, of
any | ||||||
18 | expenses authorized in paragraph (2) of subsection (d) of | ||||||
19 | Section
15-1603. If the mortgagee fails
to serve such | ||||||
20 | certification within the time specified herein, then the owner
| ||||||
21 | of redemption intending to redeem may redeem on the date | ||||||
22 | designated for
redemption in the notice of intent to redeem, | ||||||
23 | and the mortgagee shall not
be entitled to payment of any | ||||||
24 | expenses authorized in paragraph (2) of
subsection (d) of | ||||||
25 | Section 15-1603.
| ||||||
26 | (f) Procedure for Redemption.
|
| |||||||
| |||||||
1 | (1) An owner of redemption may redeem
the real estate | ||||||
2 | from the foreclosure by paying the amount specified in
| ||||||
3 | subsection (d) of Section 15-1603 to the mortgagee or the | ||||||
4 | mortgagee's
attorney of record on or before the date | ||||||
5 | designated for redemption pursuant
to subsection (e) of | ||||||
6 | Section 15-1603.
| ||||||
7 | (2) If the mortgagee refuses to accept payment or if | ||||||
8 | the owner of
redemption redeeming from the foreclosure | ||||||
9 | objects to the reasonableness of
the additional expenses | ||||||
10 | authorized in paragraph (2) of subsection (d) of
Section | ||||||
11 | 15-1603 and certified in accordance with subsection (e) of | ||||||
12 | Section
15-1603, the owner of redemption shall pay
the | ||||||
13 | certified amount to the clerk of the court on or before the | ||||||
14 | date
designated for redemption, together with a written | ||||||
15 | statement specifying the
expenses to which objection is | ||||||
16 | made. In such case the clerk shall pay to the
mortgagee the | ||||||
17 | amount tendered minus the amount to which the objection | ||||||
18 | pertains.
| ||||||
19 | (3) Upon payment to the clerk, whether or not the owner | ||||||
20 | of redemption
files an objection at the time of payment, | ||||||
21 | the clerk shall give a receipt
of payment to the person | ||||||
22 | redeeming from the foreclosure, and shall file a
copy of | ||||||
23 | that receipt in the foreclosure record. Upon receipt of the
| ||||||
24 | amounts specified to be paid to the mortgagee pursuant to | ||||||
25 | this Section, the
mortgagee shall promptly furnish the | ||||||
26 | mortgagor with a release of the
mortgage or satisfaction of |
| |||||||
| |||||||
1 | the judgment, as appropriate, and the evidence
of all | ||||||
2 | indebtedness secured by the mortgage shall be cancelled.
| ||||||
3 | (g) Procedure Upon Objection. If an objection is filed by | ||||||
4 | an owner of
redemption in accordance with paragraph (2) of | ||||||
5 | subsection (f) of Section
15-1603, the clerk shall hold the | ||||||
6 | amount to which the objection pertains
until the court orders | ||||||
7 | distribution of those funds. The court shall hold a
hearing | ||||||
8 | promptly to determine the distribution of any funds held by the
| ||||||
9 | clerk pursuant to such objection. Each party shall pay its own | ||||||
10 | costs and
expenses in connection with any objection, including | ||||||
11 | attorneys' fees,
subject to Section 2-611 of the Code of Civil | ||||||
12 | Procedure.
| ||||||
13 | (h) Failure to Redeem. Unless the real estate being | ||||||
14 | foreclosed is redeemed
from the foreclosure, it shall be sold | ||||||
15 | as provided in this Article.
| ||||||
16 | (Source: P.A. 86-974.)
| ||||||
17 | Section 65. The State Finance Act is amended by adding | ||||||
18 | Section 5.786 as follows:
| ||||||
19 | (30 ILCS 105/5.786 new) | ||||||
20 | Sec. 5.786. The Mortgage Foreclosure Prevention Fund.
| ||||||
21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law.".
|