State of Illinois
91st General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]

91_HB1978eng

 
HB1978 Engrossed                               LRB9104006PTpk

 1        AN ACT regarding property, amending named Acts.

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

 4        Section  5.  The Property Tax Code is amended by changing
 5    Sections 21-105 and 21-310 as follows:

 6        (35 ILCS 200/21-105)
 7        Sec.  21-105.   Liability  of  owner;   rights   of   tax
 8    purchaser. Nothing in Sections 21-95 and 21-100 shall relieve
 9    any  owner  liable  for  delinquent property taxes under this
10    Code from the payment of any delinquent taxes or liens  which
11    have become null and void under those Sections.
12        Sections  21-95 and 21-100 shall not adversely affect the
13    rights  or  interests  of  the  holder  of  any   bona   fide
14    certificate of purchase of the property for delinquent taxes.
15    However,  upon acquisition of property by a governmental unit
16    as set forth in Section 21-95, the rights  and  interests  of
17    the  holder  of  any bona fide certificate of purchase of the
18    property for delinquent taxes shall be limited to a  sale  in
19    error and a refund as provided under Section 21-310.
20    (Source: P.A. 86-949; 86-1158; 88-455.)

21        (35 ILCS 200/21-310)
22        Sec. 21-310. Sales in error.
23        (a)  When,  upon application of the county collector, tax
24    purchaser, or a municipality which  owns  or  has  owned  the
25    property  ordered sold, it appears to the satisfaction of the
26    court which  ordered  the  property  sold  that  any  of  the
27    following subsections are applicable, the court shall declare
28    the sale to be a sale in error:
29             (1)  the property was not subject to taxation,
30             (2)  the  taxes or special assessments had been paid

 
HB1978 Engrossed            -2-                LRB9104006PTpk
 1        prior to the sale of the property,
 2             (3)  there is a double assessment,
 3             (4)  the description is void for uncertainty,
 4             (5)  the assessor, chief county assessment  officer,
 5        board  of  review,  or board of appeals has made an error
 6        (other than an error of judgment as to the value  of  any
 7        property), or
 8             (6)  prior   to   the   tax   sale  a  voluntary  or
 9        involuntary petition has been filed  by  or  against  the
10        legal  or  beneficial  owner  of  the property requesting
11        relief under the provisions of 11 U.S.C. Chapter  7,  11,
12        12, or 13, or.
13             (7)  a  municipality  has  acquired the property (i)
14        through  the  foreclosure  of  a  lien  authorized  under
15        Section 11-31-1 of the Illinois Municipal Code or through
16        a judicial deed issued under that Section or (ii) through
17        foreclosure of a receivership certificate lien.
18        (b)  When, upon application of the tax purchaser  or  his
19    or  her  assignee only, it appears to the satisfaction of the
20    court which  ordered  the  property  sold  that  any  of  the
21    following subsections are applicable, the court shall declare
22    a sale in error:
23             (1)  A  voluntary  or involuntary petition under the
24        provisions of 11 U.S.C. Chapter 7, 11, 12, or 13 has been
25        filed subsequent  to  the  tax  sale  and  prior  to  the
26        issuance of the tax deed.
27             (2)  The  improvements  upon  the property sold have
28        been substantially destroyed or rendered uninhabitable or
29        otherwise unfit for occupancy subsequent to the tax  sale
30        and prior to the issuance of the tax deed.
31             (3)  There  is an interest held by the United States
32        in the property sold which could not be  extinguished  by
33        the tax deed.
34             (4)  The   real   property   contains   a  hazardous
 
HB1978 Engrossed            -3-                LRB9104006PTpk
 1        substance, hazardous waste, or underground  storage  tank
 2        that  would  require  cleanup  or other removal under any
 3        federal, State, or local law, ordinance,  or  regulation,
 4        only  if the tax purchaser purchased the property without
 5        actual knowledge of the  hazardous  substance,  hazardous
 6        waste,  or  underground  storage tank. This paragraph (4)
 7        applies only to tax purchases occurring after January  1,
 8        1990  and if the tax purchaser or his or her assignee has
 9        made application for a sale in error at any  time  before
10        the issuance of a tax deed.
11        If  a  sale is declared to be a sale in error, the county
12    clerk shall make entry in the tax judgment, sale,  redemption
13    and  forfeiture  record,  that  the  property was erroneously
14    sold, and the county collector shall, on demand of the  owner
15    of  the  certificate of purchase, refund the amount paid, pay
16    any interest and costs  as  may  be  ordered  under  Sections
17    21-315  through  21-335, and cancel the certificate so far as
18    it relates to the property. The county collector shall deduct
19    from the accounts of the appropriate taxing bodies their  pro
20    rata amounts paid.
21    (Source:   P.A.   88-455;   88-676,  eff.  12-14-94;  revised
22    10-31-98.)

23        Section 10.  The Illinois Municipal Code  is  amended  by
24    changing Section 11-31-1 as follows:

25        (65 ILCS 5/11-31-1) (from Ch. 24, par. 11-31-1)
26        Sec.    11-31-1.  Demolition,   repair,   enclosure,   or
27    remediation.
28        (a)  The corporate authorities of each  municipality  may
29    demolish, repair, or enclose or cause the demolition, repair,
30    or enclosure of dangerous and unsafe buildings or uncompleted
31    and   abandoned   buildings   within  the  territory  of  the
32    municipality and may remove or cause the removal of  garbage,
 
HB1978 Engrossed            -4-                LRB9104006PTpk
 1    debris, and other hazardous, noxious, or unhealthy substances
 2    or  materials  from  those  buildings.   In any county having
 3    adopted by referendum or otherwise a county health department
 4    as provided by Division 5-25 of  the  Counties  Code  or  its
 5    predecessor,  the  county  board  of that county may exercise
 6    those powers with regard to dangerous and unsafe buildings or
 7    uncompleted and abandoned buildings within the  territory  of
 8    any  city,  village,  or  incorporated  town having less than
 9    50,000 population.
10        The corporate authorities  shall  apply  to  the  circuit
11    court  of the county in which the building is located (i) for
12    an order authorizing action to be taken  with  respect  to  a
13    building  if  the  owner or owners of the building, including
14    the lien holders of record, after at least 15  days'  written
15    notice by mail so to do, have failed to put the building in a
16    safe  condition  or  to  demolish  it  or  (ii)  for an order
17    requiring the owner or owners of record to demolish,  repair,
18    or  enclose  the  building  or to remove garbage, debris, and
19    other  hazardous,  noxious,  or   unhealthy   substances   or
20    materials  from  the  building.   It  is not a defense to the
21    cause of action that the building is boarded up or  otherwise
22    enclosed,  although the court may order the defendant to have
23    the building boarded up or otherwise  enclosed.  Where,  upon
24    diligent  search, the identity or whereabouts of the owner or
25    owners of the building, including the lien holders of record,
26    is not ascertainable, notice mailed to the person or  persons
27    in whose name the real estate was last assessed is sufficient
28    notice under this Section.
29        The  hearing  upon  the  application to the circuit court
30    shall be expedited by the court and shall be given precedence
31    over all other suits.  Any person entitled to bring an action
32    under subsection (b) shall have the right to intervene in  an
33    action brought under this Section.
34        The cost of the demolition, repair, enclosure, or removal
 
HB1978 Engrossed            -5-                LRB9104006PTpk
 1    incurred  by the municipality, by an intervenor, or by a lien
 2    holder of record, including court costs, attorney's fees, and
 3    other costs related to the enforcement of  this  Section,  is
 4    recoverable  from  the  owner or owners of the real estate or
 5    the previous owner or both if the  property  was  transferred
 6    during  the  15  day  notice period and is a lien on the real
 7    estate; the lien is superior to all prior existing liens  and
 8    encumbrances,  except  taxes,  if,  within 180 days after the
 9    repair, demolition, enclosure, or removal, the  municipality,
10    the lien holder of record, or the intervenor who incurred the
11    cost and expense shall file a notice of lien for the cost and
12    expense  incurred in the office of the recorder in the county
13    in which the real estate is located or in the office  of  the
14    registrar of titles of the county if the real estate affected
15    is registered under the Registered Titles (Torrens) Act.
16        The  notice must consist of a sworn statement setting out
17    (1) a description of  the  real  estate  sufficient  for  its
18    identification, (2) the amount of money representing the cost
19    and expense incurred, and (3) the date or dates when the cost
20    and expense was incurred by the municipality, the lien holder
21    of  record,  or  the intervenor. Upon payment of the cost and
22    expense by the owner of or persons interested in the property
23    after the notice of lien has been filed, the  lien  shall  be
24    released  by  the  municipality, the person in whose name the
25    lien has been filed, or the assignee of  the  lien,  and  the
26    release  may  be  filed  of  record  as in the case of filing
27    notice of lien. Unless the lien is enforced under  subsection
28    (c),  the  lien may be enforced by foreclosure proceedings as
29    in the case of mortgage foreclosures under Article XV of  the
30    Code  of  Civil Procedure or mechanics' lien foreclosures. An
31    action to foreclose this lien may be commenced  at  any  time
32    after the date of filing of the notice of lien.  The costs of
33    foreclosure  incurred  by  the  municipality, including court
34    costs, reasonable attorney's fees, advances to  preserve  the
 
HB1978 Engrossed            -6-                LRB9104006PTpk
 1    property,  and other costs related to the enforcement of this
 2    subsection, plus statutory interest, are a lien on  the  real
 3    estate and are recoverable by the municipality from the owner
 4    or owners of the real estate.
 5        All  liens  arising  under  this  subsection (a) shall be
 6    assignable. The assignee of the  lien  shall  have  the  same
 7    power to enforce the lien as the assigning party, except that
 8    the lien may not be enforced under subsection (c).
 9        If   the   appropriate   official   of  any  municipality
10    determines  that  any  dangerous  and  unsafe   building   or
11    uncompleted  and  abandoned  building  within  its  territory
12    fulfills  the  requirements for an action by the municipality
13    under  the  Abandoned   Housing   Rehabilitation   Act,   the
14    municipality  may  petition  under  that  Act in a proceeding
15    brought under this subsection.
16        (b)  Any owner or tenant of  real  property  within  1200
17    feet  in  any  direction  of any dangerous or unsafe building
18    located  within  the  territory  of  a  municipality  with  a
19    population of 500,000 or more may file with  the  appropriate
20    municipal authority  a request that the municipality apply to
21    the  circuit  court  of  the  county in which the building is
22    located for an order permitting the  demolition,  removal  of
23    garbage,  debris,  and  other noxious or unhealthy substances
24    and materials from, or repair or enclosure of the building in
25    the manner prescribed in subsection (a) of this Section.   If
26    the  municipality  fails  to  institute  an action in circuit
27    court within 90 days after the filing  of  the  request,  the
28    owner  or  tenant  of  real  property within 1200 feet in any
29    direction of the building may institute an action in  circuit
30    court  seeking  an  order  compelling  the owner or owners of
31    record to demolish, remove garbage, debris, and other noxious
32    or unhealthy substances and materials from, repair or enclose
33    or to cause to be demolished, have garbage, debris, and other
34    noxious or unhealthy substances and materials  removed  from,
 
HB1978 Engrossed            -7-                LRB9104006PTpk
 1    repaired,  or  enclosed  the building in question.  A private
 2    owner or tenant who institutes an action under the  preceding
 3    sentence shall not be required to pay any fee to the clerk of
 4    the  circuit  court. The cost of repair, removal, demolition,
 5    or enclosure shall be borne by the owner or owners of  record
 6    of  the  building. In the event the owner or owners of record
 7    fail to demolish, remove garbage, debris, and  other  noxious
 8    or  unhealthy  substances  and  materials  from,  repair,  or
 9    enclose  the  building  within  90 days of the date the court
10    entered its order, the owner or  tenant  who  instituted  the
11    action  may request that the court join the municipality as a
12    party to the action.  The court may order the municipality to
13    demolish, remove  materials  from,  repair,  or  enclose  the
14    building,  or  cause that action to be taken upon the request
15    of any owner or tenant who instituted the action or upon  the
16    municipality's  request.   The municipality may file, and the
17    court may approve, a plan for rehabilitating the building  in
18    question.  A  court  order  authorizing  the  municipality to
19    demolish,  remove  materials  from,  repair,  or  enclose   a
20    building,  or  cause  that  action  to  be  taken,  shall not
21    preclude the court from adjudging  the  owner  or  owners  of
22    record  of  the  building  in  contempt  of  court due to the
23    failure to comply with the order to demolish, remove garbage,
24    debris,  and  other  noxious  or  unhealthy  substances   and
25    materials from, repair, or enclose the building.
26        If  a  municipality or a person or persons other than the
27    owner or owners of record pay the cost of demolition, removal
28    of garbage, debris, and other noxious or unhealthy substances
29    and materials, repair,  or  enclosure  pursuant  to  a  court
30    order,  the cost, including court costs, attorney's fees, and
31    other costs related to the enforcement of this subsection, is
32    recoverable from the owner or owners of the real  estate  and
33    is  a  lien  on  the real estate; the lien is superior to all
34    prior existing liens  and  encumbrances,  except  taxes,  if,
 
HB1978 Engrossed            -8-                LRB9104006PTpk
 1    within  180  days  after  the repair, removal, demolition, or
 2    enclosure, the municipality or the person or persons who paid
 3    the costs of demolition, removal, repair, or enclosure  shall
 4    file a notice of lien of the cost and expense incurred in the
 5    office of the recorder in the county in which the real estate
 6    is located or in the office of the registrar of the county if
 7    the  real  estate affected is registered under the Registered
 8    Titles (Torrens) Act. The notice shall be in  a  form  as  is
 9    provided   in   subsection  (a).   An  owner  or  tenant  who
10    institutes an action in circuit court  seeking  an  order  to
11    compel  the  owner  or  owners  of record to demolish, remove
12    materials from, repair, or enclose any  dangerous  or  unsafe
13    building,  or  to  cause  that  action to be taken under this
14    subsection may recover court costs and reasonable  attorney's
15    fees  for  instituting the action from the owner or owners of
16    record of  the  building.  Upon  payment  of  the  costs  and
17    expenses  by  the  owner  of  or  a  person interested in the
18    property after the notice of lien has been  filed,  the  lien
19    shall  be released by the municipality or the person in whose
20    name the lien has been filed or his or her assignee, and  the
21    release  may  be  filed  of record as in the case of filing a
22    notice of lien.  Unless the lien is enforced under subsection
23    (c), the lien may be enforced by foreclosure  proceedings  as
24    in  the case of mortgage foreclosures under Article XV of the
25    Code of Civil Procedure or mechanics' lien foreclosures.   An
26    action  to  foreclose  this lien may be commenced at any time
27    after the date of filing of the notice of lien.  The costs of
28    foreclosure incurred by  the  municipality,  including  court
29    costs,  reasonable  attorneys' fees, advances to preserve the
30    property, and other costs related to the enforcement of  this
31    subsection,  plus  statutory interest, are a lien on the real
32    estate and are recoverable by the municipality from the owner
33    or owners of the real estate.
34        All liens arising under the terms of this subsection  (b)
 
HB1978 Engrossed            -9-                LRB9104006PTpk
 1    shall be assignable.  The assignee of the lien shall have the
 2    same power to enforce the lien as the assigning party, except
 3    that the lien may not be enforced under subsection (c).
 4        (c)  In any case where a municipality has obtained a lien
 5    under  subsection  (a),  (b),  or  (f),  the municipality may
 6    enforce the lien  under  this  subsection  (c)  in  the  same
 7    proceeding in which the lien is authorized.
 8        A  municipality  desiring  to  enforce  a lien under this
 9    subsection  (c)  shall   petition   the   court   to   retain
10    jurisdiction   for   foreclosure   proceedings   under   this
11    subsection.   Notice  of  the  petition  shall  be served, by
12    certified or registered mail, on all persons who were  served
13    notice  under  subsection  (a), (b), or (f).  The court shall
14    conduct a hearing on the petition not less than 15 days after
15    the notice is served.   If  the  court  determines  that  the
16    requirements  of  this subsection (c) have been satisfied, it
17    shall grant the petition and  retain  jurisdiction  over  the
18    matter  until  the  foreclosure proceeding is completed.  The
19    costs of foreclosure incurred by the municipality,  including
20    court costs, reasonable attorneys' fees, advances to preserve
21    the  property,  and other costs related to the enforcement of
22    this subsection, plus statutory interest, are a lien  on  the
23    real  estate and are recoverable by the municipality from the
24    owner or owners of the real estate.  If the court denies  the
25    petition, the municipality may enforce the lien in a separate
26    action as provided in subsection (a), (b), or (f).
27        All  persons designated in Section 15-1501 of the Code of
28    Civil  Procedure  as  necessary   parties   in   a   mortgage
29    foreclosure action shall be joined as parties before issuance
30    of  an  order  of foreclosure.  Persons designated in Section
31    15-1501 of the Code of Civil Procedure as permissible parties
32    may also be joined as parties in the action.
33        The provisions  of  Article  XV  of  the  Code  of  Civil
34    Procedure  applicable to mortgage foreclosures shall apply to
 
HB1978 Engrossed            -10-               LRB9104006PTpk
 1    the foreclosure of a lien under this subsection  (c),  except
 2    to  the  extent  that  those provisions are inconsistent with
 3    this subsection.   For  purposes  of  foreclosures  of  liens
 4    under   this   subsection,  however,  the  redemption  period
 5    described in subsection (b) of Section 15-1603 of the Code of
 6    Civil Procedure shall end 60 days after the date of entry  of
 7    the order of foreclosure.
 8        (d)  In addition to any other remedy provided by law, the
 9    corporate  authorities  of  any municipality may petition the
10    circuit court to have property declared abandoned under  this
11    subsection (d) if:
12             (1)  the  property  has been tax delinquent for 2 or
13        more years or bills for water service  for  the  property
14        have been outstanding for 2 or more years;
15             (2)  the  property  is unoccupied by persons legally
16        in possession; and
17             (3)  the property contains  a  dangerous  or  unsafe
18        building.
19        All persons having an interest of record in the property,
20    including   tax  purchasers  and  beneficial  owners  of  any
21    Illinois land trust having title to the  property,  shall  be
22    named  as defendants in the petition and shall be served with
23    process.  In addition, service shall  be  had  under  Section
24    2-206  of  the  Code  of  Civil  Procedure  as in other cases
25    affecting property.
26        The  municipality,  however,  may  proceed   under   this
27    subsection  in  a  proceeding brought under subsection (a) or
28    (b).  Notice of the petition shall be served by certified  or
29    registered  mail  on all persons who were served notice under
30    subsection (a) or (b).
31        If the municipality proves that the conditions  described
32    in  this  subsection  exist  and  the  owner of record of the
33    property does not enter an appearance in the action,  or,  if
34    title  to  the property is held by an Illinois land trust, if
 
HB1978 Engrossed            -11-               LRB9104006PTpk
 1    neither the owner of record nor the owner of  the  beneficial
 2    interest  of  the trust enters an appearance, the court shall
 3    declare the property abandoned.
 4        If that determination is made, notice shall  be  sent  by
 5    certified  or  registered  mail  to  all  persons  having  an
 6    interest  of record in the property, including tax purchasers
 7    and beneficial owners of any Illinois land trust having title
 8    to the property, stating that title to the property  will  be
 9    transferred to the municipality unless, within 30 days of the
10    notice,  the  owner  of  record  enters  an appearance in the
11    action, or unless any other person having an interest in  the
12    property  files  with  the  court  a  request to demolish the
13    dangerous or unsafe building or to put the building  in  safe
14    condition.
15        If the owner of record enters an appearance in the action
16    within  the  30  day period, the court shall vacate its order
17    declaring  the  property  abandoned.   In  that   case,   the
18    municipality  may  amend  its  complaint in order to initiate
19    proceedings under subsection (a).
20        If a request to demolish or repair the building is  filed
21    within the 30 day period, the court shall grant permission to
22    the  requesting party to demolish the building within 30 days
23    or to restore the building to safe condition within  60  days
24    after  the  request  is granted.  An extension of that period
25    for up to 60 additional days may be given for good cause.  If
26    more than one person with an interest in the property files a
27    timely request, preference shall be given to the person  with
28    the lien or other interest of the highest priority.
29        If  the  requesting  party  proves  to the court that the
30    building has been demolished  or  put  in  a  safe  condition
31    within  the  period  of  time granted by the court, the court
32    shall issue a quitclaim judicial deed for the property to the
33    requesting party, conveying only the interest of the owner of
34    record, upon proof of payment  to  the  municipality  of  all
 
HB1978 Engrossed            -12-               LRB9104006PTpk
 1    costs  incurred  by  the  municipality in connection with the
 2    action, including but not limited to court costs,  attorney's
 3    fees,  administrative  costs,  the  costs, if any, associated
 4    with  building   enclosure   or   removal,   and   receiver's
 5    certificates.  The interest in the property so conveyed shall
 6    be subject to all liens and encumbrances on the property.  In
 7    addition,  if  the interest is conveyed to a person holding a
 8    certificate of purchase for the property under  the  Property
 9    Tax  Code,  the  conveyance shall be subject to the rights of
10    redemption of all persons entitled to redeem under that  Act,
11    including the original owner of record.
12        If  no  person  with  an interest in the property files a
13    timely request or if the requesting party fails  to  demolish
14    the building or put the building in safe condition within the
15    time  specified  by  the court, the municipality may petition
16    the court to issue a judicial deed for the  property  to  the
17    municipality.  A conveyance by judicial deed shall operate to
18    extinguish all existing ownership interests in, liens on, and
19    other  interest  in  the  property,  including tax liens, and
20    shall extinguish the rights and  interests  of  any  and  all
21    holders  of  a  bona  fide  certificate  of  purchase  of the
22    property  for  delinquent  taxes.    Any   such   bona   fide
23    certificate of purchase holder shall be entitled to a sale in
24    error  as prescribed under Section 21-310 of the Property Tax
25    Code.
26        (e)  Each municipality may use  the  provisions  of  this
27    subsection  to expedite the removal of certain buildings that
28    are a continuing hazard to the community in  which  they  are
29    located.
30        If  a  residential or commercial building is 3 stories or
31    less in height as  defined  by  the  municipality's  building
32    code,  and  the corporate official designated to be in charge
33    of enforcing the municipality's building code determines that
34    the  building  is  open  and  vacant  and  an  immediate  and
 
HB1978 Engrossed            -13-               LRB9104006PTpk
 1    continuing hazard to the community in which the  building  is
 2    located,  then  the  official  shall  be authorized to post a
 3    notice not less than 2 feet by 2 feet in size on the front of
 4    the building.  The notice shall be dated as of  the  date  of
 5    the  posting  and  shall  state  that  unless the building is
 6    demolished, repaired, or enclosed, and  unless  any  garbage,
 7    debris, and other hazardous, noxious, or unhealthy substances
 8    or  materials are removed so that an immediate and continuing
 9    hazard to the community no longer exists, then  the  building
10    may  be  demolished,  repaired,  or enclosed, or any garbage,
11    debris, and other hazardous, noxious, or unhealthy substances
12    or materials may be removed, by the municipality.
13        Not later than 30  days  following  the  posting  of  the
14    notice, the municipality shall do both of the following:
15             (1)  Cause  to  be  sent,  by certified mail, return
16        receipt requested, a notice to all owners  of  record  of
17        the  property, the beneficial owners of any Illinois land
18        trust having title to the property, and  all  lienholders
19        of  record  in  the  property,  stating the intent of the
20        municipality to demolish, repair, or enclose the building
21        or  remove  any  garbage,  debris,  or  other  hazardous,
22        noxious, or unhealthy substances  or  materials  if  that
23        action is not taken by the owner or owners.
24             (2)  Cause to be published, in a newspaper published
25        or  circulated  in the municipality where the building is
26        located, a notice setting forth  (i)  the  permanent  tax
27        index  number  and  the  address  of the building, (ii) a
28        statement that  the  property  is  open  and  vacant  and
29        constitutes  an  immediate  and  continuing hazard to the
30        community, and (iii) a statement  that  the  municipality
31        intends  to  demolish, repair, or enclose the building or
32        remove any garbage, debris, or other hazardous,  noxious,
33        or  unhealthy  substances  or  materials  if the owner or
34        owners or lienholders of record  fail  to  do  so.   This
 
HB1978 Engrossed            -14-               LRB9104006PTpk
 1        notice shall be published for 3 consecutive days.
 2        Any A person or persons with a current legal or equitable
 3    interest in the property objecting to the proposed actions of
 4    the corporate authorities may file his or her objection in an
 5    appropriate form in a court of competent jurisdiction.
 6        If the building is not demolished, repaired, or enclosed,
 7    or  the  garbage,  debris,  or  other  hazardous, noxious, or
 8    unhealthy substances or materials are not removed, within  30
 9    days  of  mailing  the  notice  to  the owners of record, the
10    beneficial owners of any Illinois land trust having title  to
11    the  property, and all lienholders of record in the property,
12    or within 30 days of the  last  day  of  publication  of  the
13    notice,  whichever  is later, the corporate authorities shall
14    have the power to demolish, repair, or enclose  the  building
15    or  to  remove  any  garbage,  debris,  or  other  hazardous,
16    noxious, or unhealthy substances or materials.
17        The  municipality  may  proceed  to  demolish, repair, or
18    enclose a building or remove any garbage,  debris,  or  other
19    hazardous,  noxious,  or  unhealthy  substances  or materials
20    under this subsection within a 120-day period  following  the
21    date of the mailing of the notice if the appropriate official
22    determines that the demolition, repair, enclosure, or removal
23    of  any  garbage,  debris,  or  other  hazardous, noxious, or
24    unhealthy substances or materials is necessary to remedy  the
25    immediate  and  continuing  hazard.   If, however, before the
26    municipality proceeds with any of the actions  authorized  by
27    this  subsection,  any  person  with  a  legal  or  equitable
28    interest  in  the  property  has  sought a hearing under this
29    subsection before a court  and  has  served  a  copy  of  the
30    complaint on the chief executive officer of the municipality,
31    then  the municipality shall not proceed with the demolition,
32    repair, enclosure, or removal of garbage,  debris,  or  other
33    substances  until  the  court  determines that that action is
34    necessary  to  remedy  the  hazard  and   issues   an   order
 
HB1978 Engrossed            -15-               LRB9104006PTpk
 1    authorizing the municipality to do so.
 2        Following  the  demolition,  repair,  or  enclosure  of a
 3    building,  or  the  removal  of  garbage,  debris,  or  other
 4    hazardous, noxious,  or  unhealthy  substances  or  materials
 5    under  this subsection, the municipality may file a notice of
 6    lien against the real estate for the cost of the  demolition,
 7    repair,  enclosure,  or  removal  within  180  days after the
 8    repair, demolition, enclosure, or removal occurred,  for  the
 9    cost  and  expense incurred, in the office of the recorder in
10    the county in which the real estate  is  located  or  in  the
11    office  of  the registrar of titles of the county if the real
12    estate affected is registered  under  the  Registered  Titles
13    (Torrens)  Act.   The notice of lien shall consist of a sworn
14    statement setting forth (i) a description of the real estate,
15    such as the address or other  description  of  the  property,
16    sufficient for its identification; (ii) the expenses incurred
17    by  the  municipality  in  undertaking  the  remedial actions
18    authorized under this subsection; (iii) the date or dates the
19    expenses were incurred by the municipality; (iv) a  statement
20    by  the  corporate  official  responsible  for  enforcing the
21    building code that the  building  was  open  and  vacant  and
22    constituted   an  immediate  and  continuing  hazard  to  the
23    community; (v) a statement by the corporate official that the
24    required sign was posted on the  building,  that  notice  was
25    sent  by  certified  mail  to  the owners of record, and that
26    notice was published in accordance with this subsection;  and
27    (vi)  a  statement  as  to  when  and  where  the  notice was
28    published.   The  lien  authorized  by  this  subsection  may
29    thereafter be released or enforced  by  the  municipality  as
30    provided in subsection (a).
31        (f)  The  corporate  authorities of each municipality may
32    remove or cause the removal of, or otherwise  environmentally
33    remediate hazardous substances on, in, or under any abandoned
34    and  unsafe  property within the territory of a municipality.
 
HB1978 Engrossed            -16-               LRB9104006PTpk
 1    In  addition,  where  preliminary  evidence   indicates   the
 2    presence  or  likely  presence  of a hazardous substance or a
 3    release or a substantial threat of a release of  a  hazardous
 4    substance  on,  in,  or  under  the  property,  the corporate
 5    authorities of the municipality may inspect the property  and
 6    test for the presence or release of hazardous substances.  In
 7    any county having adopted by referendum or otherwise a county
 8    health  department  as  provided  by  Division  5-25  of  the
 9    Counties  Code  or  its predecessor, the county board of that
10    county may exercise the above-described powers with regard to
11    property within  the  territory  of  any  city,  village,  or
12    incorporated town having less than 50,000 population.
13        For purposes of this subsection (f):
14             (1)  "property"  or  "real  estate"  means  all real
15        property, whether or not improved by a structure;
16             (2)  "abandoned" means;
17                  (A)  the property has been tax delinquent for 2
18             or more years;
19                  (B)  the  property  is  unoccupied  by  persons
20             legally in possession; and
21             (3)  "unsafe" means property that presents an actual
22        or imminent threat to public health and safety caused  by
23        the release of hazardous substances; and
24             (4)  "hazardous  substances"  means  the  same as in
25        Section 3.14 of the Environmental Protection Act.
26        The corporate authorities  shall  apply  to  the  circuit
27    court  of the county in which the property is located (i) for
28    an order allowing the municipality to enter the property  and
29    inspect and test substances on, in, or under the property; or
30    (ii)  for  an  order authorizing the corporate authorities to
31    take action with respect to remediation of  the  property  if
32    conditions  on  the  property,  based  on  the inspection and
33    testing authorized in paragraph (i), indicate the presence of
34    hazardous substances.  Remediation shall be  deemed  complete
 
HB1978 Engrossed            -17-               LRB9104006PTpk
 1    for  purposes  of  paragraph  (ii)  above  when  the property
 2    satisfies Tier I, II, or III remediation objectives  for  the
 3    property's   most   recent   usage,  as  established  by  the
 4    Environmental Protection Act, and the rules  and  regulations
 5    promulgated  thereunder.   Where,  upon  diligent search, the
 6    identity or  whereabouts  of  the  owner  or  owners  of  the
 7    property,  including  the  lien  holders  of  record,  is not
 8    ascertainable, notice mailed to  the  person  or  persons  in
 9    whose  name  the  real estate was last assessed is sufficient
10    notice under this Section.
11        The court shall grant an order authorizing testing  under
12    paragraph  (i)  above  upon a showing of preliminary evidence
13    indicating the presence or likely  presence  of  a  hazardous
14    substance  or  a  release  of  or  a  substantial threat of a
15    release of a hazardous substance on, in, or  under  abandoned
16    property.   The  preliminary evidence may include, but is not
17    limited to, evidence of prior use, visual site inspection, or
18    records of prior environmental investigations.   The  testing
19    authorized  by  paragraph (i) above shall include any type of
20    investigation  which  is  necessary  for   an   environmental
21    professional  to determine the environmental condition of the
22    property, including but not limited to  performance  of  soil
23    borings  and groundwater monitoring.  The court shall grant a
24    remediation order under paragraph (ii) above where testing of
25    the property indicates that it fails to meet  the  applicable
26    remediation  objectives.  The hearing upon the application to
27    the circuit court shall be expedited by the court  and  shall
28    be given precedence over all other suits.
29        The  cost  of  the  inspection,  testing,  or remediation
30    incurred by the municipality or by a lien holder  of  record,
31    including  court  costs,  attorney's  fees,  and  other costs
32    related to the enforcement of this Section, is a lien on  the
33    real   estate;   except   that   in  any  instances  where  a
34    municipality incurs costs of inspection and testing but finds
 
HB1978 Engrossed            -18-               LRB9104006PTpk
 1    no hazardous substances  on  the  property  that  present  an
 2    actual  or  imminent threat to public health and safety, such
 3    costs are not recoverable from the owners nor are such  costs
 4    a lien on the real estate.  The lien is superior to all prior
 5    existing  liens  and  encumbrances, except taxes and any lien
 6    obtained under subsection (a) or (e),  if,  within  180  days
 7    after   the   completion   of  the  inspection,  testing,  or
 8    remediation, the municipality or the lien  holder  of  record
 9    who incurred the cost and expense shall file a notice of lien
10    for  the  cost  and  expense  incurred  in  the office of the
11    recorder in the county in which the real estate is located or
12    in the office of the registrar of titles of the county if the
13    real estate  affected  is  registered  under  the  Registered
14    Titles (Torrens) Act.
15        The  notice must consist of a sworn statement setting out
16    (i) a description of  the  real  estate  sufficient  for  its
17    identification,  (ii)  the  amount  of money representing the
18    cost and expense incurred, and (iii) the date or  dates  when
19    the  cost and expense was incurred by the municipality or the
20    lien holder of record.  Upon payment of the  lien  amount  by
21    the  owner of or persons interested in the property after the
22    notice of lien has been filed, a release  of  lien  shall  be
23    issued by the municipality, the person in whose name the lien
24    has  been filed, or the assignee of the lien, and the release
25    may be filed of record as in the case  of  filing  notice  of
26    lien.
27        The  lien  may  be  enforced  under  subsection (c) or by
28    foreclosure  proceedings  as  in   the   case   of   mortgage
29    foreclosures  under Article XV of the Code of Civil Procedure
30    or mechanics' lien foreclosures; provided that where the lien
31    is enforced by foreclosure  under  subsection  (c)  or  under
32    either  statute, the municipality may not proceed against the
33    other assets of the owner or owners of the  real  estate  for
34    any  costs  that  otherwise  would  be recoverable under this
 
HB1978 Engrossed            -19-               LRB9104006PTpk
 1    Section but that remain unsatisfied after foreclosure  except
 2    where  such  additional  recovery  is  authorized by separate
 3    environmental laws.  An action to foreclose this lien may  be
 4    commenced  at any time after the date of filing of the notice
 5    of  lien.    The  costs  of  foreclosure  incurred   by   the
 6    municipality,  including  court  costs, reasonable attorney's
 7    fees, advances to preserve  the  property,  and  other  costs
 8    related to the enforcement of this subsection, plus statutory
 9    interest, are a lien on the real estate.
10        All  liens  arising  under  this  subsection (f) shall be
11    assignable.  The assignee of the lien  shall  have  the  same
12    power to enforce the lien as the assigning party, except that
13    the lien may not be enforced under subsection (c).
14    (Source: P.A.  89-235,  eff.  8-4-95;  89-303,  eff.  1-1-96;
15    90-393, eff. 1-1-98; 90-597, eff. 6-25-98; revised 9-16-98.)

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