HB5612 95TH GENERAL ASSEMBLY

LRB095 19886 AJO 46299 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5612

Introduced , by Rep. Charles E. Jefferson

SYNOPSIS AS INTRODUCED:

New Act

Creates the Landlord Accountability Act. Makes legislative findings. Provides for relocation assistance to be paid by a landlord to a tenant if a tenant's dwelling is condemned or declared unlawful to occupy. Provides that a municipality or other unit of local government may pay relocation assistance to a tenant forced to relocate under the described circumstances and then file an action to collect that amount plus interest, costs, fines, and attorney's fees from the landlord and file a lien for this amount against the property if the amount is not paid. Provides further procedures for enforcement, appeals, and related matters.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Landlord Accountability Act.

Section 5. Legislative findings. The people of the State of Illinois deserve decent, safe, and sanitary housing. Certain tenants in the State of Illinois have remained in rental housing that does not meet the State's minimum standards for health and safety because they cannot afford to pay the costs of relocation in advance of occupying new, safe, and habitable housing. In egregious cases, authorities have been forced to condemn property when landlords have failed to remedy building code or health code violations after repeated notice, and, as a result, families with limited financial resources have been displaced and left with nowhere to go.

The purpose of this Act is to establish a process by which displaced tenants would receive funds for relocation from landlords who fail to provide safe and sanitary housing after due notice of building code or health code violations. It is also the purpose of this Act to provide enforcement mechanisms to municipalities or other units of local government, including the ability to advance relocation funds to tenants who are displaced as a result of a landlord's failure to remedy building code or health code violations and later to collect the full amounts of these relocation funds, along with interest and penalties, from landlords.

Section 10. Landlord relocation assistance.

(a) If a municipality or other unit of local government responsible for the enforcement of a building, housing, or other appropriate code has notified the landlord that a dwelling is condemned or unlawful to occupy due to the existence of conditions that violate applicable codes, statutes, ordinances, rules, or regulations, a landlord shall not enter into a rental agreement for the dwelling unit until the conditions are corrected.

(b) If a landlord knowingly violates subsection (a) of this Section, the tenant shall recover either 3 months' periodic rent or up to treble the actual damages sustained as a result of the violation, whichever is greater, costs of suit or arbitration, and reasonable attorneys' fees. If the tenant elects to terminate the tenancy as a result of the conditions leading to the violation, or if the appropriate municipality or other unit of local government requires that the tenant vacate the premises, the tenant also shall recover:

(1) the entire amount of any deposit prepaid by the tenant; and

(2) all prepaid rent.

(c) If a municipality or other unit of local government responsible for the enforcement of a building, housing, or other appropriate code has notified the landlord that a dwelling will be condemned or will be unlawful to occupy due to the existence of conditions that violate applicable codes, statutes, ordinances, rules, or regulations, a landlord, who knew or should have known of the existence of these conditions, shall be required to pay relocation assistance to the displaced tenants except that:

(1) a landlord shall not be required to pay relocation assistance to any displaced tenant in a case in which the condemnation or no occupancy order affects one or more dwelling units and directly results from conditions caused by a tenant's or any third party's illegal conduct without the landlord's prior knowledge;

(2) a landlord shall not be required to pay relocation assistance to any displaced tenant in a case in which the condemnation or no occupancy order affects one or more dwelling units and results from conditions arising from a natural disaster such as, but not exclusively, an earthquake, tornado, or wind storm; and

(3) a landlord shall not be required to pay relocation assistance to any displaced tenant in a case in which a condemnation affects one or more dwelling units and the tenant's displacement is a direct result of the acquisition of the property by eminent domain.

(d) Relocation assistance provided to displaced tenants under this Section shall be the greater amount of $2,000 per dwelling unit or 3 times the monthly rent. In addition to relocation assistance, the landlord shall be required to pay to the displaced tenants the entire amount of any deposit prepaid by the tenant and all prepaid rent.

(e) The landlord shall pay relocation assistance and any prepaid deposit and prepaid rent to displaced tenants within 7 days after the municipality or other unit of local government sending notice of the condemnation, eviction, or displacement order to the landlord. The landlord shall pay relocation assistance and any prepaid deposit and prepaid rent either by making individual payments by certified check to displaced tenants or by providing a certified check to the municipality or other unit of local government ordering condemnation, eviction, or displacement, for distribution to the displaced tenants. If the landlord fails to complete payment of relocation assistance within the period required under this Section, a municipality or other unit of local government may advance the cost of the relocation assistance payments to the displaced tenants.

(f) During the period from the date that a municipality or other unit of local government responsible for the enforcement of a building, housing, or other appropriate code first notifies the landlord of conditions that violate applicable codes, statutes, ordinances, rules, or regulations to the time that relocation assistance payments are paid to eligible tenants, or the conditions leading to the notification are corrected, the landlord may not:

(1) evict, harass, or intimidate tenants into vacating their units for the purpose of avoiding or diminishing application of this Section;

(2) reduce services to any tenant; or

(3) materially increase or change the obligations of any tenant, including but not limited to any rent increase.

(g) Displaced tenants shall be entitled to recover any relocation assistance, prepaid deposits, and prepaid rent required by subsection (d). In addition, displaced tenants shall be entitled to recover any actual damages sustained by them as a result of the condemnation, eviction, or displacement that exceed the amount of relocation assistance that is payable. In any action brought by displaced tenants to recover any payments or damages required or authorized by this subsection (g) or by subsection (e) that are not paid by the landlord or advanced by a municipality or unit of local government, the displaced tenants shall also be entitled to recover their costs of suit or arbitration and reasonable attorneys' fees.

(h) If, after 60 days from the date that a municipality or other unit of local government first advanced relocation assistance funds to the displaced tenants, a landlord has failed to repay the amount of relocation assistance advanced by the municipality or other unit of local government under subsection (e), then the municipality or other unit of local government shall assess civil penalties in the amount of $50 per day for each tenant to whom the municipality or unit of local government has advanced a relocation assistance payment.

(i) In addition to the penalties set forth in subsection (h), interest shall accrue on the amount of relocation assistance paid by a municipality or other unit of local government for which the property owner has not reimbursed the municipality or other unit of local government. The rate of interest shall be the maximum legal rate of interest permitted under law commencing 30 days after the date that the municipality or other unit of local government first advanced relocation assistance funds to the displaced tenants.

(j) If a municipality or other unit of local government must initiate legal action in order to recover the amount of relocation assistance payments that it has advanced to low-income tenants, including any interest and penalties under subsections (h) and (i), the municipality or other unit of local government shall be entitled to attorneys' fees and costs arising from its legal action.

(k) A municipality or other unit of local government that has notified the landlord that a dwelling will be condemned or will be unlawful to occupy shall notify the displaced tenants that they may be entitled to relocation assistance under this Section.

(l) No payment received by a displaced tenant under this Section may be considered as income for the purpose of determining the eligibility or extent of eligibility of any person for assistance under any State law or for the purposes of any tax imposed under any State law, and the payments shall not be deducted from any amount to which any recipient would otherwise be entitled under State law.

Section 15. Governmental entities.

(a) Whenever the governing body of a municipality or other unit of local government finds that one or more conditions of the character described in this Act exist within its territorial limits, that governing body may adopt ordinances relating to the dwellings, buildings, structures, or premises. The ordinances may provide for the following:

(1) That an "improvement board" or officer be designated or appointed to exercise the powers assigned to the board or officer by the ordinance as specified in this Section. The board or officer may be an existing board or officer or may be a separate board or officer appointed solely for the purpose of exercising the powers assigned by the ordinance. If a board is created, the ordinance shall specify the terms, method of appointment, and type of membership of the board, which may be limited, if the governing body chooses, to public officers under this Section.

(2) That if a board is created, a public officer, other than a member of the improvement board, may be designated to work with the board and carry out the duties and exercise the powers assigned to the public officer by the ordinance.

(3) That if, after a preliminary investigation of any dwelling, building, structure, or premises, the board or officer finds that it is unfit for human habitation or other use, the board or officer shall cause to be served either personally or by certified mail, with return receipt requested, upon all persons having any interest therein, as shown upon the records of the recorder's office of the county in which the property is located, and shall post in a conspicuous place on the property, a complaint stating in what respects the dwelling, building, structure, or premises is unfit for human habitation or other use. If the whereabouts of any of the persons is unknown and the same cannot be ascertained by the board or officer in the exercise of reasonable diligence, and the board or officer makes an affidavit to that effect, then the serving of the complaint or order upon the persons may be made either by personal service or by mailing a copy of the complaint and order by certified mail, postage prepaid, return receipt requested, to each person at the address of the building involved in the proceedings, and mailing a copy of the complaint and order by first class mail to any address of each person in the records of the county assessor or the county recorder for the county where the property is located. The complaint shall contain a notice that a hearing will be held before the board or officer, at a place therein fixed, not less than 10 days nor more than 30 days after the serving of the complaint; and that all parties in interest shall be given the right to file an answer to the complaint, to appear in person, or otherwise, and to give testimony at the time and place in the complaint. The rules of evidence prevailing in courts of law or equity shall not be controlling in hearings before the board or officer. A copy of the complaint shall also be filed with the recorder of the county in which the dwelling, building, structure, or premises is located, and the filing of the complaint or order shall have the same force and effect as other lis pendens notices as provided by law.

(4) That the board or officer may determine that a dwelling, building, structure, or premises is unfit for human habitation or other use if the board or officer finds that conditions exist in the dwelling, building, structure, or premises that are dangerous or injurious to the health or safety of the occupants of the dwelling, building, structure, or premises, the occupants of neighboring dwellings, or other residents of the property that lies within the jurisdiction of a municipality or other unit of local government. The conditions may include the following, without limitation: defects increasing the hazards of fire or accident; inadequate ventilation, light, or sanitary facilities; or dilapidation, disrepair, structural defects, uncleanliness, overcrowding, or inadequate drainage. The ordinance shall state reasonable and minimum standards covering the conditions, including those contained in ordinances adopted in accordance with this Section, to guide the board or the public officer, and the agents and employees of either, in determining the fitness of a dwelling for human habitation or of a building, structure, or premises for other use.

(5) That the determination of whether a dwelling, building, structure, or premises should be repaired or demolished shall be based on specific stated standards on (1) the degree of structural deterioration of the dwelling, building, structure, or premises or (2) the relationship that the estimated cost of repair bears to the value of the dwelling, building, structure, or premises, with the method of determining this value to be specified in the ordinance.

(6) That if, after the required hearing, the board or officer determines that the dwelling is unfit for human habitation or the building or structure or premises is unfit for other use, the board or officer shall state in writing the findings of fact in support of the determination, and shall issue and cause to be served upon the owner or party in interest thereof, as is provided in this Section, and shall post in a conspicuous place on the property, an order that (i) requires the owner or party in interest, within the time specified in the order, to repair, alter, or improve the dwelling, building, structure, or premises to render it fit for human habitation, or for other use, or to vacate and close the dwelling, building, structure, or premises, if the course of action is deemed proper on the basis of the standards set forth as required in this Section; or (ii) requires the owner or party in interest, within the time specified in the order, to remove or demolish the dwelling, building, structure, or premises, if this course of action is deemed proper on the basis of those standards. If no appeal is filed, a copy of the order shall be filed with the recorder of the county in which the dwelling, building, structure, or premises is located.

(7) That the owner or any party in interest, within 30 days after the date of service upon the owner and posting of an order issued by the board or officer under this Section, may file an appeal with the appeals commission.

(8) That governing body of the municipality or other unit of local government shall designate or establish a municipal or other governmental agency or body to serve as the appeals commission. The governing body shall also establish rules of procedure adequate to assure a prompt and thorough review of matters submitted to the appeals commission, and the rules of procedure shall include the following, without being limited thereto:

(A) All matters submitted to the appeals commission must be resolved by the commission within 60 days from the date of filing therewith, and a transcript of the findings of fact of the appeals commission shall be made available to the owner or other party in interest upon demand. The findings and orders of the appeals commission shall be reported in the same manner and shall bear the same legal consequences as if issued by the board, and shall be subject to review only in the manner and to the extent provided in this Act.

(B) If the owner or party in interest, following exhaustion of his or her rights to appeal, fails to comply with the final order to repair, alter, improve, vacate, close, remove, or demolish the dwelling, building, structure, or premises, the board or officer may direct or cause the dwelling, building, structure, or premises to be repaired, altered, improved, vacated, and closed, removed, or demolished.

(9) That the amount of the cost of the repairs, alterations or improvements; or vacating and closing; or removal or demolition by the board or officer shall be assessed against the real property upon which the cost was incurred unless the amount is previously paid. For purposes of this subsection, the cost of vacating and closing shall include (i) the amount of relocation assistance payments that a property owner has not repaid to a municipality or other unit of local government that has advanced relocation assistance payments to tenants under this Act and (ii) all penalties and interest that accrue as a result of the failure of the property owner to timely repay the amount of these relocation assistance payments under this Act.

(b) Upon certification to him or her by the treasurer of the municipality or other unit of local government of the assessment amount being due and owing, the county assessor shall enter the amount of the assessment upon the tax rolls against the property for the current year and the same shall become a part of the general taxes for that year to be collected at the same time and with interest at the rates and in the manner as provided for delinquent taxes, and when collected to be deposited to the credit of the general fund of the municipality or other unit of local government. If the dwelling, building, structure, or premises is removed or demolished by the board or officer, the board or officer shall, if possible, sell the materials of the dwelling, building, structure, or premises in accordance with procedures set forth in the ordinance, and shall credit the proceeds of the sale against the cost of the removal or demolition; and if there be any balance remaining, it shall be paid to the parties entitled thereto, as determined by the board or officer, after deducting the costs incident thereto. The assessment shall constitute a lien against the property that shall be of equal rank with State, county, and municipal taxes.

(c) Any person affected by an order issued by the appeals commission may, within 30 days after the posting and service of the order, petition to the circuit court for an injunction restraining the public officer or members of the board from carrying out the provisions of the order. In all proceedings the court is authorized to affirm, reverse, or modify the order and the trial shall be heard de novo. An ordinance adopted by the governing body may authorize the board or officer to exercise the powers as may be necessary or convenient to carry out and effectuate the purposes and provisions of this Section.

(d) These powers shall include the following in addition to others granted in this Section:

(1) to determine which dwellings within the municipality or other unit of local government are unfit for human habitation;

(2) to determine which buildings, structures, or premises are unfit for other use;

(3) to administer oaths and affirmations, examine witnesses, and receive evidence; and

(4) to investigate the dwelling and other property conditions in the municipality or other unit of local government and to enter upon premises for the purpose of making examinations when the board or officer has reasonable ground for believing they are unfit for human habitation, or for other use.

The entries shall be made in the manner as to cause the least possible inconvenience to the persons in possession, and to obtain an order for this purpose after submitting evidence in support of an application which is adequate to justify an order from a circuit court in the event entry is denied or resisted.

(e) The governing body of any municipality or other unit of local government adopting an ordinance pursuant to this Act may appropriate the necessary funds to administer the ordinance.

(f) This Act does not abrogate or impair the powers of the courts or of any department of any municipality or other unit of local government to enforce any provisions of its charter or its ordinances, resolutions, or regulations, nor to prevent or punish violations thereof; and the powers conferred by this Act shall be in addition and supplemental to the powers conferred by any other law.

(g) This Act does not impair or limit in any way the power of the municipality or other unit of local government to define and declare nuisances and to cause their removal or abatement, by summary proceedings or otherwise.

(h) Any municipality or unit of other local government may by ordinance adopted by its governing body:

(1) prescribe minimum standards for the use and occupancy of dwellings throughout the municipality or other unit of local government;

(2) prescribe minimum standards for the use or occupancy of any building, structure, or premises used for any other purpose;

(3) prevent the use or occupancy of any dwelling, building, structure, or premises that is injurious to the public health, safety, morals, or welfare; and

(4) prescribe punishment for the violation of any provision of the ordinance.

Section 20. Supplemental powers. The powers and authority conferred by this Act are in addition and supplemental to powers or authority conferred by any other law or authority, and nothing contained in this Act shall be construed to preempt any local ordinance requiring relocation assistance to tenants displaced by a landlord's failure to remedy building code or health code violations.