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| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 001 ] |
91_HB1769enr HB1769 Enrolled LRB9104011PTpk 1 AN ACT to amend certain Acts in relation to real 2 property. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Property Tax Code is amended by changing 6 Sections 21-385, 22-15, and 22-20 as follows: 7 (35 ILCS 200/21-385) 8 Sec. 21-385. Extension of period of redemption. The 9 purchaser or his or her assignee of property sold for 10 nonpayment of general taxes or special assessments may extend 11 the period of redemption at any time before the expiration of 12 the original period of redemption, or thereafter prior to the 13 expiration of any extended period of redemption, for a period 14 which will expire not later than 3 years from the date of 15 sale, by filing with the county clerk of the county in which 16 the property is located a written notice to that effect 17 describing the property, stating the date of the sale and 18 specifying the extended period of redemption. If prior to 19 the expiration of the period of redemption or extended period 20 of redemption a petition for tax deed has been filed under 21 Section 22-30, upon application of the petitioner, the court 22 shall allow the purchaser or his or her assignee to extend 23 the period of redemption after expiration of the original 24 period or any extended period of redemption, provided that 25 any extension allowed will expire not later than 3 years from 26 the date of sale. If the period of redemption is extended, 27 the purchaser or his or her assignee must give the notices 28 provided for in Section 22-10 at the specified times prior to 29 the expiration of the extended period of redemption by 30 causing a sheriff (or if he or she is disqualified, a 31 coroner) of the county in which the property, or any part HB1769 Enrolled -2- LRB9104011PTpk 1 thereof, is located to serve the notices as provided in 2 Sections 22-15 and 22-20. The notices may also be served as 3 provided in Sections 22-15 and 22-20 by a special process 4 server appointed by the court under Section 22-15. 5 (Source: P.A. 86-949; 87-1189; 88-455.) 6 (35 ILCS 200/22-15) 7 Sec. 22-15. Service of notice. The purchaser or his or 8 her assignee shall give the notice required by Section 22-10 9 by causing it to be published in a newspaper as set forth in 10 Section 22-20. In addition, the notice shall be served by a 11 sheriff (or if he or she is disqualified, by a coroner) of 12 the county in which the property, or any part thereof, is 13 located upon owners who reside on any part of the property 14 sold by leaving a copy of the notice with those owners 15 personally. 16 In counties of 3,000,000 or more inhabitants where a 17 taxing district is a petitioner for tax deed pursuant to 18 Section 21-90, in lieu of service by the sheriff or coroner 19 the notice may be served by a special process server 20 appointed by the circuit court as provided in this Section. 21 The taxing district may move prior to filing one or more 22 petitions for tax deed for appointment of such a special 23 process server. The court, upon being satisfied that the 24 person named in the motion is at least 18 years of age and is 25 capable of serving notice as required under this Code, shall 26 enter an order appointing such person as a special process 27 server for a period of one year. The appointment may be 28 renewed for successive periods of one year each by motion and 29 order, and a copy of the original and any subsequent order 30 shall be filed in each tax deed case in which a notice is 31 served by the appointed person. Delivery of the notice to 32 and service of the notice by the special process server shall 33 have the same force and effect as its delivery to and service HB1769 Enrolled -3- LRB9104011PTpk 1 by the sheriff or coroner. 2 The same form of notice shall also be served upon all 3 other owners and parties interested in the property, if upon 4 diligent inquiry they can be found in the county, and upon 5 the occupants of the property in the following manner: 6 (a) as to individuals, by (1) leaving a copy of the 7 notice with the person personally or (2) by leaving a 8 copy at his or her usual place of residence with a person 9 of the family, of the age of 13 years or more, and 10 informing that person of its contents. The person making 11 the service shall causealso senda copy of the notice to 12 be sent by registered or certified mail, return receipt 13 requested, to that party at his or her usual place of 14 residence; 15 (b) as to public and private corporations, 16 municipal, governmental and quasi-municipal corporations, 17 partnerships, receivers and trustees of corporations, by 18 leaving a copy of the notice with the person designated 19 by the Civil Practice Law. 20 If the property sold has more than 4 dwellings or other 21 rental units, and has a managing agent or party who collects 22 rents, that person shall be deemed the occupant and shall be 23 served with notice instead of the occupants of the individual 24 units. If the property has no dwellings or rental units, but 25 economic or recreational activities are carried on therein, 26 the person directing such activities shall be deemed the 27 occupant. Holders of rights of entry and possibilities of 28 reverter shall not be deemed parties interested in the 29 property. 30 When a party interested in the property is a trustee, 31 notice served upon the trustee shall be deemed to have been 32 served upon any beneficiary or note holder thereunder unless 33 the holder of the note is disclosed of record. 34 When a judgment is a lien upon the property sold, the HB1769 Enrolled -4- LRB9104011PTpk 1 holder of the lien shall be served with notice if the name of 2 the judgment debtor as shown in the transcript, certified 3 copy or memorandum of judgment filed of record is identical, 4 as to given name and surname, with the name of the party 5 interested as it appears of record. 6 If any owner or party interested, upon diligent inquiry 7 and effort, cannot be found or served with notice in the 8 county as provided in this Section, and the person in actual 9 occupancy and possession is tenant to, or in possession under 10 the owners or the parties interested in the property, then 11 service of notice upon the tenant, occupant or person in 12 possession shall be deemed service upon the owners or parties 13 interested. 14 If any owner or party interested, upon diligent inquiry 15 and effort cannot be found or served with notice in the 16 county, then the person making the service shall causesenda 17 copy of the notice to be sent by registered or certified 18 mail, return receipt requested, to that party at his or her 19 residence, if ascertainable. 20 (Source: P.A. 87-1189; 88-455; incorporates 88-451; 88-670, 21 eff. 12-2-94.) 22 (35 ILCS 200/22-20) 23 Sec. 22-20. Proof of service of notice; publication of 24 notice. The sheriff or coroner serving notice under Section 25 22-15 shall endorse his or her return thereon and file it 26 with the Clerk of the Circuit Court and it shall be a part of 27 the court record. A special process server appointed under 28 Section 22-15 shall make his or her return by affidavit and 29 shall file it with the Clerk of the Circuit Court, where it 30 shall be a part of the court record. If a sheriff, special 31 process server, or coroner to whom any notice is delivered 32 for service, neglects or refuses to make the return, the 33 purchaser or his or her assignee may petition the court to HB1769 Enrolled -5- LRB9104011PTpk 1 enter a rule requiring the sheriff, special process server, 2 or coroner to make return of the notice on a day to be fixed 3 by the court, or to show cause on that day why he or she 4 should not be attached for contempt of the court. The 5 purchaser or assignee shall cause a written notice of the 6 rule to be served upon the sheriff, special process server, 7 or coroner. If good and sufficient cause to excuse the 8 sheriff, special process server, or coroner is not shown, the 9 court shall adjudge him or her guilty of a contempt, and 10 shall proceed to punish him as in other cases of contempt. 11 If the property is located in a municipality in a county 12 with less than 3,000,000 inhabitants, the purchaser or his or 13 her assignee shall also publish a notice as to the owner or 14 party interested, in some newspaper published in the 15 municipality. If the property is not in a municipality in a 16 county with less than 3,000,000 inhabitants, or if no 17 newspaper is published therein, or if the property is in a 18 county with 3,000,000 or more inhabitants, the notice shall 19 be published in some newspaper in the county. If no 20 newspaper is published in the county, then the notice shall 21 be published in the newspaper that is published nearest the 22 county seat of the county in which the property is located. 23 If the owners and parties interested in the property upon 24 diligent inquiry are unknown to the purchaser or his or her 25 assignee, the publication as to such owner or party 26 interested, may be made to unknown owners or parties 27 interested. Any notice by publication given under this 28 Section shall be given 3 times at any time after filing a 29 petition for tax deed, but not less than 3 months nor more 30 than 5 months prior to the expiration of the period of 31 redemption. The publication shall contain (a) notice of the 32 filing of the petition for tax deed, (b) the date on which 33 the petitioner intends to make application for an order on 34 the petition that a tax deed issue, (c) a description of the HB1769 Enrolled -6- LRB9104011PTpk 1 property, (d) the date upon which the property was sold, (e) 2 the taxes or special assessments for which it was sold and 3 (f) the date on which the period of redemption will expire. 4 The publication shall not include more than one property 5 listed and sold in one description, except as provided in 6 Section 21-90, and except that when more than one property is 7 owned by one person, all of the parcels owned by that person 8 may be included in one notice. 9 (Source: P.A. 87-1189; 88-455; 88-535.) 10 Section 10. The Illinois Municipal Code is amended by 11 changing Section 11-31-2 as follows: 12 (65 ILCS 5/11-31-2) (from Ch. 24, par. 11-31-2) 13 Sec. 11-31-2. (a) If the appropriate official of any 14 municipality determines, upon due investigation, that any 15 building or structure therein fails to conform to the minimum 16 standards of health and safety as set forth in the applicable 17 ordinances of such municipality, and the owner or owners of 18 such building or structure fails, after due notice, to cause 19 such property so to conform, the municipality may make 20 application to the circuit court for an injunction requiring 21 compliance with such ordinances or for such other order as 22 the court may deem necessary or appropriate to secure such 23 compliance. 24 If the appropriate official of any municipality 25 determines, upon due investigation, that any building or 26 structure located within the area affected by a conservation 27 plan, adopted by the municipality pursuant to the Urban 28 Community Conservation Act, fails to conform to the standards 29 and provisions of such plan, and the owner or owners of such 30 building or structure fails, after due notice, to cause such 31 property so to conform, the municipality has the power to 32 make application to the circuit court for an injunction HB1769 Enrolled -7- LRB9104011PTpk 1 requiring compliance with such plan or for such other order 2 as the court may deem necessary or appropriate to secure such 3 compliance. 4 The hearing upon such suit shall be expedited by the 5 court and shall be given precedence over all other actions. 6 If, upon application hereunder, the court orders the 7 appointment of a receiver to cause such building or structure 8 to conform, such receiver may use the rents and issues of 9 such property toward maintenance, repair and rehabilitation 10 of the property prior to and despite any assignment of rents; 11 and the court may further authorize the receiver to recover 12 the cost of such maintenance, repair and rehabilitation by 13 the issuance and sale of notes or receiver's certificates 14 bearing such interest as the court may fix, and such notes or 15 certificates, after their initial issuance and transfer by 16 the receiver, shall be freely transferable and when sold or 17 transferred by the receiver in return for a valuable 18 consideration in money, material, labor or services, shall be 19 a first lien upon the real estate and the rents and issues 20 thereof, and shall be superior to all prior assignments of 21 rents and all prior existing liens and encumbrances, except 22 taxes; provided, that within 90 days of such sale or transfer 23 for value by the receiver of such note or certificate, the 24 holder thereof shall file notice of lien in the office of the 25 recorder in the county in which the real estate is located, 26 or in the office of the registrar of titles of such county if 27 the real estate affected is registered under the Registered 28 Titles (Torrens) Act. The notice of the lien filed shall set 29 forth (1) a description of the real estate affected 30 sufficient for the identification thereof, (2) the face 31 amount of the receiver's note or certificate, together with 32 the interest payable thereon, and (3) the date when the 33 receiver's note or certificate was sold or transferred for 34 value by the receiver. Upon payment to the holder of the HB1769 Enrolled -8- LRB9104011PTpk 1 receiver's note or certificate of the face amount thereof 2 together with any interest thereon to such date of payment, 3 and upon the filing of record of a sworn statement of such 4 payment, the lien of such certificate shall be released. 5 Unless the lien is enforced pursuant to subsection (b), the 6 lien may be enforced by proceedings to foreclose as in the 7 case of mortgages or mechanics' liens, and such action to 8 foreclose such lien may be commenced at any time after the 9 date of default. For the purposes of this subsection (a), the 10 date of default shall be deemed to occur 90 days from the 11 date of issuance of the receiver's certificate if at that 12 time the certificate remains unpaid in whole or in part. 13 In the event a receiver appointed under this subsection 14 (a) completes a feasibility study which study finds that the 15 property cannot be economically brought into compliance with 16 the minimum standards of health and safety as set forth in 17 the applicable ordinances of the municipality, the receiver 18 may petition the court for reimbursement for the cost of the 19 feasibility study from the receivership feasibility study and 20 fee fund. The court shall review the petition and authorize 21 reimbursement from the fund to the receiver if the court 22 finds that the findings in the feasibility report are 23 reasonable, that the fee for the feasibility report is 24 reasonable, and that the receiver is unable to obtain 25 reimbursement other than by foreclosure of a lien on the 26 property. If the court grants the petition for reimbursement 27 from the fund and, upon receiving certification from the 28 court of the amount to be paid, the county treasurer shall 29 order that amount paid from the fund to the receiver. If the 30 court grants the petition for reimbursement from the fund, 31 the court shall also authorize and direct the receiver to 32 issue a certificate of lien against title. The recorded lien 33 shall be a first lien upon the real estate and shall be 34 superior to all prior liens and encumbrances except real HB1769 Enrolled -9- LRB9104011PTpk 1 estate taxes. The court shall also order the receiver to 2 reimburse the fund to the extent that the receiver is 3 reimbursed upon foreclosure of the receiver's lien upon sale 4 of the property. 5 In any proceedings hereunder in which the court orders 6 the appointment of a receiver, the court may further 7 authorize the receiver to enter into such agreements and to 8 do such acts as may be required to obtain first mortgage 9 insurance on the receiver's notes or certificates from an 10 agency of the Federal Government. 11 (b) In any case where a municipality has obtained a lien 12 pursuant to subsection (a), the municipality may enforce such 13 lien pursuant to this subsection (b) in the same proceeding 14 in which the lien is authorized. 15 A municipality desiring to enforce a lien under this 16 subsection (b) shall petition the court to retain 17 jurisdiction for foreclosure proceedings under this 18 subsection. Notice of the petition shall be served, by 19 certified or registered mail, on all persons who were served 20 notice under subsection (a). The court shall conduct a 21 hearing on the petition not less than 15 days after such 22 notice is served. If the court determines that the 23 requirements of this subsection (b) have been satisfied, it 24 shall grant the petition and retain jurisdiction over the 25 matter until the foreclosure proceeding is completed. If the 26 court denies the petition, the municipality may enforce the 27 lien in a separate action as provided in subsection (a). 28 All persons designated in Section 15-1501 of the Code of 29 Civil Procedure as necessary parties in a mortgage 30 foreclosure action shall be joined as parties prior to 31 issuance of an order of foreclosure. Persons designated in 32 Section 15-1501 of the Code of Civil Procedure as permissible 33 parties may also be joined as parties in the action. 34 The provisions of Article XV of the Code of Civil HB1769 Enrolled -10- LRB9104011PTpk 1 Procedure applicable to mortgage foreclosures shall apply to 2 the foreclosure of a lien pursuant to this subsection (b), 3 except to the extent that such provisions are inconsistent 4 with this subsection. However, for purposes of foreclosures 5 of liens pursuant to this subsection, the redemption period 6 described in subsection (b) of Section 15-1603 of the Code of 7 Civil Procedure shall end 60 days after the date of entry of 8 the order of foreclosure. 9 (Source: P.A. 88-658, eff. 1-1-95.) 10 Section 15. The Registered Titles (Torrens) Act is 11 amended by changing Sections 100 and 102 and adding Section 12 102.3 as follows: 13 (765 ILCS 35/100) (from Ch. 30, par. 137) 14 Sec. 100. All sums of money received pursuant to Sections 15 40, 99, and 108 of this Act shall be paid by the registrar to 16 the county treasurer of the county in which the land is 17 situated, for the purpose of maintaining an indemnity fund 18 under the terms of this Act, and for the purposes provided 19 for in Sections 102.1,and102.2, and 102.3. It shall be the 20 duty of the treasurer to invest all of the fund, including 21 both principal and income, from time to time if not 22 immediately required for payments of indemnities in 23 accordance with Division 3-11 and other applicable provisions 24 of the Counties Code. The county treasurer shall report 25 annually to the county board the condition and income of the 26 fund and forward a copy of the report to the registrar. 27 (Source: P.A. 90-778, eff. 8-14-98.) 28 (765 ILCS 35/102) (from Ch. 30, par. 139) 29 Sec. 102. Except as otherwise provided in Sections 102.1, 30and102.2, and 102.3 of this Act, the indemnity fund shall 31 be held to satisfy judgments obtained or claims allowed HB1769 Enrolled -11- LRB9104011PTpk 1 against the county for losses or damages as aforesaid. Such 2 claims for damages shall be presented to the registrar and 3 county board, and such county board is hereby authorized and 4 empowered to allow or reject the same and to provide for the 5 payment of such claims as may be allowed. No claims for 6 such losses or damages shall be allowed and paid by any such 7 county board unless upon the recommendation of the registrar 8 who shall be in office at the time the claim shall be 9 allowed. The county board shall grant or deny such claims in 10 whole or in part within 60 days from the date of the receipt 11 thereof by the county board. In the event the county board 12 shall fail to grant or deny such claims in whole or in part 13 within 60 days from the date of the receipt thereof, the 14 claims are deemed to be denied. Judicial review may be had 15 in accordance with Administrative Review Law as heretofore or 16 hereafter amended. 17 (Source: P.A. 90-778, eff. 8-14-98.) 18 (765 ILCS 35/102.3 new) 19 Sec. 102.3. Transfer to the receivership feasibility 20 study and fee fund. Within 30 days after the effective date 21 of this amendatory Act of the 91st General Assembly, the 22 county treasurer shall transfer $250,000 from the indemnity 23 fund to the receivership feasibility study and fee fund, a 24 special fund created in the county treasury. Moneys in the 25 fund shall be used for reimbursements to receivers for whom 26 the county treasurer has received a certification of 27 reimbursement due from the circuit court under Section 28 11-31-2 of the Illinois Municipal Code. 29 Section 99. Effective date. This Act takes effect upon 30 becoming law.