SB1380 EngrossedLRB099 09371 AWJ 29577 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 Sections 11-20-15 and 11-20-15.1 as follows:
 
6    (65 ILCS 5/11-20-15)
7    Sec. 11-20-15. Lien for removal costs.
8    (a) If the municipality incurs a removal cost under Section
911-20-7, 11-20-8, 11-20-12, or 11-20-13 with respect to any
10underlying parcel, then that cost is a lien upon that
11underlying parcel. This lien is superior to all other liens and
12encumbrances, except tax liens and as otherwise provided in
13subsection (c) of this Section.
14    (b) To perfect a lien under this Section, the municipality
15must, within one year after the removal cost is incurred, file
16notice of lien in the office of the recorder in the county in
17which the underlying parcel is located or, if the underlying
18parcel is registered under the Torrens system, in the office of
19the Registrar of Titles of that county. The notice must consist
20of a sworn statement setting out:
21        (1) a description of the underlying parcel that
22    sufficiently identifies the parcel;
23        (2) the amount of the removal cost; and

 

 

SB1380 Engrossed- 2 -LRB099 09371 AWJ 29577 b

1        (3) the date or dates when the removal cost was
2    incurred by the municipality.
3    If, for any one parcel, the municipality engaged in any
4removal activity on more than one occasion during the course of
5one year, then the municipality may combine any or all of the
6costs of each of those activities into a single notice of lien.
7    (c) A lien under this Section is not valid as to: (i) any
8purchaser whose rights in and to the underlying parcel arose
9after the removal activity but before the filing of the notice
10of lien; or (ii) any mortgagee, judgment creditor, or other
11lienor whose rights in and to the underlying parcel arose
12before the filing of the notice of lien.
13    (d) The removal cost is not a lien on the underlying parcel
14unless a notice is personally served on, or sent by certified
15mail to, the person to whom was sent the tax bill for the
16general taxes on the property for the taxable year immediately
17preceding the removal activities. The notice must be delivered
18or sent after the removal activities have been performed, and
19it must: (i) state the substance of this Section and the
20substance of any ordinance of the municipality implementing
21this Section; (ii) identify the underlying parcel, by common
22description; and (iii) describe the removal activity.
23    (e) A lien under this Section may be enforced by
24proceedings to foreclose as in case of mortgages or mechanics'
25liens. An action to foreclose a lien under this Section must be
26commenced within 2 years after the date of filing notice of

 

 

SB1380 Engrossed- 3 -LRB099 09371 AWJ 29577 b

1lien.
2    (f) Any person who performs a removal activity by the
3authority of the municipality may, in his or her own name, file
4a lien and foreclose on that lien in the same manner as a
5municipality under this Section.
6    (g) A failure to file a foreclosure action does not, in any
7way, affect the validity of the lien against the underlying
8parcel.
9    (h) Upon payment of the lien cost by the owner of the
10underlying parcel after notice of lien has been filed, the
11municipality (or its agent under subsection (f)) shall release
12the lien, and the release may be filed of record by the owner
13at his or her sole expense as in the case of filing notice of
14lien.
15    (h-5) In any case where a municipality has obtained a lien
16under subsection (a), the municipality may also bring an action
17for a money judgment against the owner or owners of the real
18estate in the amount of the lien in the same manner as provided
19for bringing causes of action in Article II of the Code of
20Civil Procedure and, upon obtaining a judgment, file a judgment
21lien against all of the real estate of the owner or owners and
22enforce that lien as provided for in Article XII of the Code of
23Civil Procedure.
24    (i) For the purposes of this Section:
25    "Lien cost" means the removal cost and the filing costs for
26any notice of lien under subsection (b).

 

 

SB1380 Engrossed- 4 -LRB099 09371 AWJ 29577 b

1    "Removal activity" means any activity for which a removal
2cost was incurred.
3    "Removal cost" means a removal cost as defined under
4Section 11-20-7, 11-20-8, 11-20-12, or 11-20-13.
5    "Underlying parcel" means a parcel of private property upon
6which a removal activity was performed.
7    "Year" means a 365-day period.
8    (j) This Section applies only to liens filed after August
914, 2009 (the effective date of Public Act 96-462).
10    (k) This Section shall not apply to a lien filed pursuant
11to Section 11-20-15.1.
12(Source: P.A. 96-462, eff. 8-14-09; 96-856, eff. 3-1-10;
1396-1000, eff. 7-2-10.)
 
14    (65 ILCS 5/11-20-15.1)
15    Sec. 11-20-15.1. Lien for costs of removal, securing, and
16enclosing on abandoned residential property.
17    (a) If the municipality elects to incur a removal cost
18pursuant to subsection (d) of Section 11-20-7, subsection (d)
19of Section 11-20-8, subsection (d) of Section 11-20-12, or
20subsection (e) of Section 11-20-13, or a securing or enclosing
21cost pursuant to Section 11-31-1.01 with respect to an
22abandoned residential property, then that cost is a lien upon
23the underlying parcel of that abandoned residential property.
24This lien is superior to all other liens and encumbrances,
25except tax liens and as otherwise provided in this Section.

 

 

SB1380 Engrossed- 5 -LRB099 09371 AWJ 29577 b

1    (b) To perfect a lien under this Section, the municipality
2must, within one year after the cost is incurred for the
3activity, file notice of the lien in the office of the recorder
4in the county in which the abandoned residential property is
5located or, if the abandoned residential property is registered
6under the Torrens system, in the office of the Registrar of
7Titles of that county, a sworn statement setting out:
8        (1) a description of the abandoned residential
9    property that sufficiently identifies the parcel;
10        (2) the amount of the cost of the activity;
11        (3) the date or dates when the cost for the activity
12    was incurred by the municipality; and
13        (4) a statement that the lien has been filed pursuant
14    to subsection (d) of Section 11-20-7, subsection (d) of
15    Section 11-20-8, subsection (d) of Section 11-20-12,
16    subsection (e) of Section 11-20-13, or Section 11-31-1.01,
17    as applicable.
18    If, for any abandoned residential property, the
19municipality engaged in any activity on more than one occasion
20during the course of one year, then the municipality may
21combine any or all of the costs of each of those activities
22into a single notice of lien.
23    (c) To enforce a lien pursuant to this Section, the
24municipality must maintain contemporaneous records that
25include, at a minimum: (i) a dated statement of finding by the
26municipality that the property for which the work is to be

 

 

SB1380 Engrossed- 6 -LRB099 09371 AWJ 29577 b

1performed has become abandoned residential property, which
2shall include (1) the date when the property was first known or
3observed to be unoccupied by any lawful occupant or occupants,
4(2) a description of the actions taken by the municipality to
5contact the legal owner or owners of the property identified on
6the recorded mortgage, or, if known, any agent of the owner or
7owners, including the dates such actions were taken, and (3) a
8statement that no contacts were made with the legal owner or
9owners or their agents as a result of such actions, (ii) a
10dated certification by an authorized official of the
11municipality of the necessity and specific nature of the work
12to be performed, (iii) a copy of the agreement with the person
13or entity performing the work that includes the legal name of
14the person or entity, the rate or rates to be charged for
15performing the work, and an estimate of the total cost of the
16work to be performed, (iv) detailed invoices and payment
17vouchers for all payments made by the municipality for such
18work, and (v) a statement as to whether the work was engaged
19through a competitive bidding process, and if so, a copy of all
20proposals submitted by the bidders for such work.
21    (d) A lien under this Section shall be enforceable
22exclusively at the hearing for confirmation of sale of the
23abandoned residential property that is held pursuant to
24subsection (b) of Section 15-1508 of the Code of Civil
25Procedure and shall be limited to a claim of interest in the
26proceeds of the sale and subject to the requirements of this

 

 

SB1380 Engrossed- 7 -LRB099 09371 AWJ 29577 b

1Section. Any mortgagee who holds a mortgage on the property, or
2any beneficiary or trustee who holds a deed of trust on the
3property, may contest the lien or the amount of the lien at any
4time during the foreclosure proceeding upon motion and notice
5in accordance with court rules applicable to motions generally.
6Grounds for forfeiture of the lien or the superior status of
7the lien granted by subsection (a) of this Section shall
8include, but not be limited to, a finding by the court that:
9(i) the municipality has not complied with subsection (b) or
10(c) of this Section, (ii) the scope of the work was not
11reasonable under the circumstances, (iii) the work exceeded the
12authorization for the work to be performed under subsection (a)
13of Section 11-20-7, subsection (a) of Section 11-20-8,
14subsection (a) of Section 11-20-12, subsection (a) of Section
1511-20-13, or subsection (a) of Section 11-31-1.01, as
16applicable, or (iv) the cost of the services rendered or
17materials provided was not commercially reasonable. Forfeiture
18of the superior status of the lien otherwise granted by this
19Section shall not constitute a forfeiture of the lien as a
20subordinate lien.
21    (e) Upon payment of the amount of a lien filed under this
22Section by the mortgagee, servicer, owner, or any other person,
23the municipality shall release the lien, and the release may be
24filed of record by the person making such payment at the
25person's sole expense as in the case of filing notice of lien.
26    (f) Notwithstanding any other provision of this Section, a

 

 

SB1380 Engrossed- 8 -LRB099 09371 AWJ 29577 b

1municipality may not file a lien pursuant to this Section for
2activities performed pursuant to Section 11-20-7, Section
311-20-8, Section 11-20-12, Section 11-20-13, or Section
411-31-1.01, if: (i) the mortgagee or servicer of the abandoned
5residential property has provided notice to the municipality
6that the mortgagee or servicer has performed or will perform
7the remedial actions specified in the notice that the
8municipality otherwise might perform pursuant to subsection
9(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
10subsection (d) of Section 11-20-12, subsection (e) of Section
1111-20-13, or Section 11-31-1.01, provided that the remedial
12actions specified in the notice have been performed or are
13performed or initiated in good faith within 30 days of such
14notice; or (ii) the municipality has provided notice to the
15mortgagee or servicer of a problem with the property requiring
16the remedial actions specified in the notice that the
17municipality otherwise would perform pursuant to subsection
18(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
19subsection (d) of Section 11-20-12, subsection (e) of Section
2011-20-13, or Section 11-31-1.01, and the mortgagee or servicer
21has performed or performs or initiates in good faith the
22remedial actions specified in the notice within 30 days of such
23notice.
24    (g) This Section and subsection (d) of Section 11-20-7,
25subsection (d) of Section 11-20-8, subsection (d) of Section
2611-20-12, subsection (e) of Section 11-20-13, or Section

 

 

SB1380 Engrossed- 9 -LRB099 09371 AWJ 29577 b

111-31-1.01 shall apply only to activities performed, costs
2incurred, and liens filed after the effective date of this
3amendatory Act of the 96th General Assembly.
4    (h) For the purposes of this Section and subsection (d) of
5Section 11-20-7, subsection (d) of Section 11-20-8, subsection
6(d) of Section 11-20-12, subsection (e) of Section 11-20-13, or
7Section 11-31-1.01:
8    "Abandoned residential property" means any type of
9permanent residential dwelling unit, including detached single
10family structures, and townhouses, condominium units and
11multifamily rental apartments covering the entire property,
12and manufactured homes treated under Illinois law as real
13estate and not as personal property, that has been unoccupied
14by any lawful occupant or occupants for at least 90 days, and
15for which after such 90 day period, the municipality has made
16good faith efforts to contact the legal owner or owners of the
17property identified on the recorded mortgage, or, if known, any
18agent of the owner or owners, and no contact has been made. A
19property for which the municipality has been given notice of
20the order of confirmation of sale pursuant to subsection (b-10)
21of Section 15-1508 of the Code of Civil Procedure shall not be
22deemed to be an abandoned residential property for the purposes
23of subsection (d) of Section 11-20-7, subsection (d) of Section
2411-20-8, subsection (d) of Section 11-20-12, subsection (e) of
25Section 11-20-13, and Section 11-31-1.01 of this Code.
26    "MERS program" means the nationwide Mortgage Electronic

 

 

SB1380 Engrossed- 10 -LRB099 09371 AWJ 29577 b

1Registration System approved by Fannie Mae, Freddie Mac, and
2Ginnie Mae that has been created by the mortgage banking
3industry with the mission of registering every mortgage loan in
4the United States to lawfully make information concerning each
5residential mortgage loan and the property securing it
6available by Internet access to mortgage originators,
7servicers, warehouse lenders, wholesale lenders, retail
8lenders, document custodians, settlement agents, title
9companies, insurers, investors, county recorders, units of
10local government, and consumers.
11    (i) Any entity or person who performs a removal, securing,
12or enclosing activity pursuant to the authority of a
13municipality under subsection (d) of Section 11-20-7,
14subsection (d) of Section 11-20-8, subsection (d) of Section
1511-20-12, subsection (e) of Section 11-20-13, or Section
1611-31-1.01, may, in its, his, or her own name, file a lien
17pursuant to subsection (b) of this Section and appear in a
18foreclosure action on that lien pursuant to subsection (d) of
19this Section in the place of the municipality, provided that
20the municipality shall remain subject to subsection (c) of this
21Section, and such party shall be subject to all of the
22provisions in this Section as if such party were the
23municipality.
24    (i-5) All amounts received by the municipality for costs
25incurred pursuant to this Section for which the municipality
26has been reimbursed under Section 7.31 of the Illinois Housing

 

 

SB1380 Engrossed- 11 -LRB099 09371 AWJ 29577 b

1Development Act shall be remitted to the State Treasurer for
2deposit into the Abandoned Residential Property Municipality
3Relief Fund.
4    (j) If prior to subsection (d) of Section 11-20-7,
5subsection (d) of Section 11-20-8, subsection (d) of Section
611-20-12, and subsection (e) of Section 11-20-13 becoming
7inoperative a lien is filed pursuant to any of those
8subsections, then the lien shall remain in full force and
9effect after the subsections have become inoperative, subject
10to all of the provisions of this Section. If prior to the
11repeal of Section 11-31-1.01 a lien is filed pursuant to
12Section 11-31-1.01, then the lien shall remain in full force
13and effect after the repeal of Section 11-31-1.01, subject to
14all of the provisions of this Section.
15    (k) In any case where a municipality has obtained a lien
16under subsection (a), the municipality may also bring an action
17for a money judgment against the owner or owners of the real
18estate in the amount of the lien in the same manner as provided
19for bringing causes of action in Article II of the Code of
20Civil Procedure and, upon obtaining a judgment, file a judgment
21lien against all of the real estate of the owner or owners and
22enforce that lien as provided for in Article XII of the Code of
23Civil Procedure.
24(Source: P.A. 96-856, eff. 3-1-10; 96-1419, eff. 10-1-10.)