101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5367

 

Introduced , by Rep. André Thapedi

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-31-2  from Ch. 24, par. 11-31-2

    Amends the Unsafe Property Division of the Illinois Municipal Code. Provides that if the holder of a receiver's certificate, note, or lien incurs or expends any sums enforcing the certificate, note, or a lien, whether by foreclosure or otherwise, the holder of the receiver's certificate, note, or lien is entitled to recover the reasonable fees and expenses incurred or expended in enforcing the receiver's certificate, note, or lien, including, but not limited to, attorney's fees, title searches or examinations, process server fees, publication charges, sheriff's sale costs, and court filing fees. Provides that the amount of fees and costs shall be added to the indebtedness secured by the receiver's certificate, note, or lien. Effective immediately.


LRB101 18767 AWJ 68222 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5367LRB101 18767 AWJ 68222 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 11-31-2 as follows:
 
6    (65 ILCS 5/11-31-2)  (from Ch. 24, par. 11-31-2)
7    Sec. 11-31-2. (a) If the appropriate official of any
8municipality determines, upon due investigation, that any
9building or structure therein fails to conform to the minimum
10standards of health and safety as set forth in the applicable
11ordinances of such municipality, and the owner or owners of
12such building or structure fails, after due notice, to cause
13such property so to conform, the municipality may make
14application to the circuit court for an injunction requiring
15compliance with such ordinances or for such other order as the
16court may deem necessary or appropriate to secure such
17compliance.
18    If the appropriate official of any municipality
19determines, upon due investigation, that any building or
20structure located within the area affected by a conservation
21plan, adopted by the municipality pursuant to the Urban
22Community Conservation Act, fails to conform to the standards
23and provisions of such plan, and the owner or owners of such

 

 

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1building or structure fails, after due notice, to cause such
2property so to conform, the municipality has the power to make
3application to the circuit court for an injunction requiring
4compliance with such plan or for such other order as the court
5may deem necessary or appropriate to secure such compliance.
6    The hearing upon such suit shall be expedited by the court
7and shall be given precedence over all other actions.
8    If, upon application hereunder, the court orders the
9appointment of a receiver to cause such building or structure
10to conform, such receiver may use the rents and issues of such
11property toward maintenance, repair and rehabilitation of the
12property prior to and despite any assignment of rents; and the
13court may further authorize the receiver to recover the cost of
14such maintenance, repair and rehabilitation by the issuance and
15sale of notes or receiver's certificates bearing such interest
16as the court may fix, and such notes or certificates, after
17their initial issuance and transfer by the receiver, shall be
18freely transferable and when sold or transferred by the
19receiver in return for a valuable consideration in money,
20material, labor or services, shall be a first lien upon the
21real estate and the rents and issues thereof, and shall be
22superior to all prior assignments of rents and all prior
23existing liens and encumbrances, except taxes; provided, that
24within 90 days of such sale or transfer for value by the
25receiver of such note or certificate, the holder thereof shall
26file notice of lien in the office of the recorder in the county

 

 

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1in which the real estate is located, or in the office of the
2registrar of titles of such county if the real estate affected
3is registered under the Registered Titles (Torrens) Act. The
4notice of the lien filed shall set forth (1) a description of
5the real estate affected sufficient for the identification
6thereof, (2) the face amount of the receiver's note or
7certificate, together with the interest payable thereon, and
8(3) the date when the receiver's note or certificate was sold
9or transferred for value by the receiver. Upon payment to the
10holder of the receiver's note or certificate of the face amount
11thereof together with any interest thereon to such date of
12payment, and upon the filing of record of a sworn statement of
13such payment, the lien of such certificate shall be released.
14Unless the lien is enforced pursuant to subsection (b), the
15lien may be enforced by proceedings to foreclose as in the case
16of mortgages or mechanics' liens, and such action to foreclose
17such lien may be commenced at any time after the date of
18default. For the purposes of this subsection (a), the date of
19default shall be deemed to occur 90 days from the date of
20issuance of the receiver's certificate if at that time the
21certificate remains unpaid in whole or in part.
22    In the event a receiver appointed under this subsection (a)
23completes a feasibility study which study finds that the
24property cannot be economically brought into compliance with
25the minimum standards of health and safety as set forth in the
26applicable ordinances of the municipality, the receiver may

 

 

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1petition the court for reimbursement for the cost of the
2feasibility study from the receivership feasibility study and
3fee fund. The court shall review the petition and authorize
4reimbursement from the fund to the receiver if the court finds
5that the findings in the feasibility report are reasonable,
6that the fee for the feasibility report is reasonable, and that
7the receiver is unable to obtain reimbursement other than by
8foreclosure of a lien on the property. If the court grants the
9petition for reimbursement from the fund and, upon receiving
10certification from the court of the amount to be paid, the
11county treasurer shall order that amount paid from the fund to
12the receiver. If the court grants the petition for
13reimbursement from the fund, the court shall also authorize and
14direct the receiver to issue a certificate of lien against
15title. The recorded lien shall be a first lien upon the real
16estate and shall be superior to all prior liens and
17encumbrances except real estate taxes. The court shall also
18order the receiver to reimburse the fund to the extent that the
19receiver is reimbursed upon foreclosure of the receiver's lien
20upon sale of the property.
21    In any proceedings hereunder in which the court orders the
22appointment of a receiver, the court may further authorize the
23receiver to enter into such agreements and to do such acts as
24may be required to obtain first mortgage insurance on the
25receiver's notes or certificates from an agency of the Federal
26Government.

 

 

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1    (b) In any case where a municipality has obtained a lien
2pursuant to subsection (a), the municipality may enforce such
3lien pursuant to this subsection (b) in the same proceeding in
4which the lien is authorized.
5    A municipality desiring to enforce a lien under this
6subsection (b) shall petition the court to retain jurisdiction
7for foreclosure proceedings under this subsection. Notice of
8the petition shall be served, by certified or registered mail,
9on all persons who were served notice under subsection (a). The
10court shall conduct a hearing on the petition not less than 15
11days after such notice is served. If the court determines that
12the requirements of this subsection (b) have been satisfied, it
13shall grant the petition and retain jurisdiction over the
14matter until the foreclosure proceeding is completed. If the
15court denies the petition, the municipality may enforce the
16lien in a separate action as provided in subsection (a).
17    All persons designated in Section 15-1501 of the Code of
18Civil Procedure as necessary parties in a mortgage foreclosure
19action shall be joined as parties prior to issuance of an order
20of foreclosure. Persons designated in Section 15-1501 of the
21Code of Civil Procedure as permissible parties may also be
22joined as parties in the action.
23    The provisions of Article XV of the Code of Civil Procedure
24applicable to mortgage foreclosures shall apply to the
25foreclosure of a lien pursuant to this subsection (b), except
26to the extent that such provisions are inconsistent with this

 

 

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1subsection. However, for purposes of foreclosures of liens
2pursuant to this subsection, the redemption period described in
3subsection (b) of Section 15-1603 of the Code of Civil
4Procedure shall end 60 days after the date of entry of the
5order of foreclosure.
6    If the holder of a receiver's certificate, note, or lien
7under this Section incurs or expends any sums enforcing the
8certificate, note, or a lien, whether by foreclosure or
9otherwise, the holder of the receiver's certificate, note, or
10lien is entitled to recover the reasonable fees and expenses
11incurred or expended in enforcing the receiver's certificate,
12note, or lien, including, but not limited to, attorney's fees,
13title searches or examinations, process server fees,
14publication charges, sheriff's sale costs, and court filing
15fees. The amount of fees and costs shall be added to the
16indebtedness secured by the receiver's certificate, note, or
17lien.
18(Source: P.A. 91-554, eff. 8-14-99.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.