Sen. David Koehler

Filed: 3/19/2015

 

 


 

 


 
09900SB1380sam001LRB099 09371 AWJ 32727 a

1
AMENDMENT TO SENATE BILL 1380

2    AMENDMENT NO. ______. Amend Senate Bill 1380 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1which the underlying parcel is located or, if the underlying
2parcel is registered under the Torrens system, in the office of
3the Registrar of Titles of that county. The notice must consist
4of a sworn statement setting out:
5        (1) a description of the underlying parcel that
6    sufficiently identifies the parcel;
7        (2) the amount of the removal cost; and
8        (3) the date or dates when the removal cost was
9    incurred by the municipality.
10    If, for any one parcel, the municipality engaged in any
11removal activity on more than one occasion during the course of
12one year, then the municipality may combine any or all of the
13costs of each of those activities into a single notice of lien.
14    (c) A lien under this Section is not valid as to: (i) any
15purchaser whose rights in and to the underlying parcel arose
16after the removal activity but before the filing of the notice
17of lien; or (ii) any mortgagee, judgment creditor, or other
18lienor whose rights in and to the underlying parcel arose
19before the filing of the notice of lien.
20    (d) The removal cost is not a lien on the underlying parcel
21unless a notice is personally served on, or sent by certified
22mail to, the person to whom was sent the tax bill for the
23general taxes on the property for the taxable year immediately
24preceding the removal activities. The notice must be delivered
25or sent after the removal activities have been performed, and
26it must: (i) state the substance of this Section and the

 

 

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1substance of any ordinance of the municipality implementing
2this Section; (ii) identify the underlying parcel, by common
3description; and (iii) describe the removal activity.
4    (e) A lien under this Section may be enforced by
5proceedings to foreclose as in case of mortgages or mechanics'
6liens. An action to foreclose a lien under this Section must be
7commenced within 2 years after the date of filing notice of
8lien.
9    (f) Any person who performs a removal activity by the
10authority of the municipality may, in his or her own name, file
11a lien and foreclose on that lien in the same manner as a
12municipality under this Section.
13    (g) A failure to file a foreclosure action does not, in any
14way, affect the validity of the lien against the underlying
15parcel.
16    (h) Upon payment of the lien cost by the owner of the
17underlying parcel after notice of lien has been filed, the
18municipality (or its agent under subsection (f)) shall release
19the lien, and the release may be filed of record by the owner
20at his or her sole expense as in the case of filing notice of
21lien.
22    (h-5) In any case where a municipality has obtained a lien
23under subsection (a), the municipality may also bring an action
24for a money judgment against the owner or owners of the real
25estate in the amount of the lien in the same manner as provided
26for bringing causes of action in Article II of the Code of

 

 

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1Civil Procedure and, upon obtaining a judgment, file a judgment
2lien against all of the real estate of the owner or owners and
3enforce that lien as provided for in Article XII of the Code of
4Civil Procedure.
5    (i) For the purposes of this Section:
6    "Lien cost" means the removal cost and the filing costs for
7any notice of lien under subsection (b).
8    "Removal activity" means any activity for which a removal
9cost was incurred.
10    "Removal cost" means a removal cost as defined under
11Section 11-20-7, 11-20-8, 11-20-12, or 11-20-13.
12    "Underlying parcel" means a parcel of private property upon
13which a removal activity was performed.
14    "Year" means a 365-day period.
15    (j) This Section applies only to liens filed after August
1614, 2009 (the effective date of Public Act 96-462).
17    (k) This Section shall not apply to a lien filed pursuant
18to Section 11-20-15.1.
19(Source: P.A. 96-462, eff. 8-14-09; 96-856, eff. 3-1-10;
2096-1000, eff. 7-2-10.)
 
21    (65 ILCS 5/11-20-15.1)
22    Sec. 11-20-15.1. Lien for costs of removal, securing, and
23enclosing on abandoned residential property.
24    (a) If the municipality elects to incur a removal cost
25pursuant to subsection (d) of Section 11-20-7, subsection (d)

 

 

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1of Section 11-20-8, subsection (d) of Section 11-20-12, or
2subsection (e) of Section 11-20-13, or a securing or enclosing
3cost pursuant to Section 11-31-1.01 with respect to an
4abandoned residential property, then that cost is a lien upon
5the underlying parcel of that abandoned residential property.
6This lien is superior to all other liens and encumbrances,
7except tax liens and as otherwise provided in this Section.
8    (b) To perfect a lien under this Section, the municipality
9must, within one year after the cost is incurred for the
10activity, file notice of the lien in the office of the recorder
11in the county in which the abandoned residential property is
12located or, if the abandoned residential property is registered
13under the Torrens system, in the office of the Registrar of
14Titles of that county, a sworn statement setting out:
15        (1) a description of the abandoned residential
16    property that sufficiently identifies the parcel;
17        (2) the amount of the cost of the activity;
18        (3) the date or dates when the cost for the activity
19    was incurred by the municipality; and
20        (4) a statement that the lien has been filed pursuant
21    to subsection (d) of Section 11-20-7, subsection (d) of
22    Section 11-20-8, subsection (d) of Section 11-20-12,
23    subsection (e) of Section 11-20-13, or Section 11-31-1.01,
24    as applicable.
25    If, for any abandoned residential property, the
26municipality engaged in any activity on more than one occasion

 

 

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1during the course of one year, then the municipality may
2combine any or all of the costs of each of those activities
3into a single notice of lien.
4    (c) To enforce a lien pursuant to this Section, the
5municipality must maintain contemporaneous records that
6include, at a minimum: (i) a dated statement of finding by the
7municipality that the property for which the work is to be
8performed has become abandoned residential property, which
9shall include (1) the date when the property was first known or
10observed to be unoccupied by any lawful occupant or occupants,
11(2) a description of the actions taken by the municipality to
12contact the legal owner or owners of the property identified on
13the recorded mortgage, or, if known, any agent of the owner or
14owners, including the dates such actions were taken, and (3) a
15statement that no contacts were made with the legal owner or
16owners or their agents as a result of such actions, (ii) a
17dated certification by an authorized official of the
18municipality of the necessity and specific nature of the work
19to be performed, (iii) a copy of the agreement with the person
20or entity performing the work that includes the legal name of
21the person or entity, the rate or rates to be charged for
22performing the work, and an estimate of the total cost of the
23work to be performed, (iv) detailed invoices and payment
24vouchers for all payments made by the municipality for such
25work, and (v) a statement as to whether the work was engaged
26through a competitive bidding process, and if so, a copy of all

 

 

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1proposals submitted by the bidders for such work.
2    (d) A lien under this Section shall be enforceable
3exclusively at the hearing for confirmation of sale of the
4abandoned residential property that is held pursuant to
5subsection (b) of Section 15-1508 of the Code of Civil
6Procedure and shall be limited to a claim of interest in the
7proceeds of the sale and subject to the requirements of this
8Section. Any mortgagee who holds a mortgage on the property, or
9any beneficiary or trustee who holds a deed of trust on the
10property, may contest the lien or the amount of the lien at any
11time during the foreclosure proceeding upon motion and notice
12in accordance with court rules applicable to motions generally.
13Grounds for forfeiture of the lien or the superior status of
14the lien granted by subsection (a) of this Section shall
15include, but not be limited to, a finding by the court that:
16(i) the municipality has not complied with subsection (b) or
17(c) of this Section, (ii) the scope of the work was not
18reasonable under the circumstances, (iii) the work exceeded the
19authorization for the work to be performed under subsection (a)
20of Section 11-20-7, subsection (a) of Section 11-20-8,
21subsection (a) of Section 11-20-12, subsection (a) of Section
2211-20-13, or subsection (a) of Section 11-31-1.01, as
23applicable, or (iv) the cost of the services rendered or
24materials provided was not commercially reasonable. Forfeiture
25of the superior status of the lien otherwise granted by this
26Section shall not constitute a forfeiture of the lien as a

 

 

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1subordinate lien.
2    (e) Upon payment of the amount of a lien filed under this
3Section by the mortgagee, servicer, owner, or any other person,
4the municipality shall release the lien, and the release may be
5filed of record by the person making such payment at the
6person's sole expense as in the case of filing notice of lien.
7    (f) Notwithstanding any other provision of this Section, a
8municipality may not file a lien pursuant to this Section for
9activities performed pursuant to Section 11-20-7, Section
1011-20-8, Section 11-20-12, Section 11-20-13, or Section
1111-31-1.01, if: (i) the mortgagee or servicer of the abandoned
12residential property has provided notice to the municipality
13that the mortgagee or servicer has performed or will perform
14the remedial actions specified in the notice that the
15municipality otherwise might perform pursuant to subsection
16(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
17subsection (d) of Section 11-20-12, subsection (e) of Section
1811-20-13, or Section 11-31-1.01, provided that the remedial
19actions specified in the notice have been performed or are
20performed or initiated in good faith within 30 days of such
21notice; or (ii) the municipality has provided notice to the
22mortgagee or servicer of a problem with the property requiring
23the remedial actions specified in the notice that the
24municipality otherwise would perform pursuant to subsection
25(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
26subsection (d) of Section 11-20-12, subsection (e) of Section

 

 

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111-20-13, or Section 11-31-1.01, and the mortgagee or servicer
2has performed or performs or initiates in good faith the
3remedial actions specified in the notice within 30 days of such
4notice.
5    (g) This Section and subsection (d) of Section 11-20-7,
6subsection (d) of Section 11-20-8, subsection (d) of Section
711-20-12, subsection (e) of Section 11-20-13, or Section
811-31-1.01 shall apply only to activities performed, costs
9incurred, and liens filed after the effective date of this
10amendatory Act of the 96th General Assembly.
11    (h) For the purposes of this Section and subsection (d) of
12Section 11-20-7, subsection (d) of Section 11-20-8, subsection
13(d) of Section 11-20-12, subsection (e) of Section 11-20-13, or
14Section 11-31-1.01:
15    "Abandoned residential property" means any type of
16permanent residential dwelling unit, including detached single
17family structures, and townhouses, condominium units and
18multifamily rental apartments covering the entire property,
19and manufactured homes treated under Illinois law as real
20estate and not as personal property, that has been unoccupied
21by any lawful occupant or occupants for at least 90 days, and
22for which after such 90 day period, the municipality has made
23good faith efforts to contact the legal owner or owners of the
24property identified on the recorded mortgage, or, if known, any
25agent of the owner or owners, and no contact has been made. A
26property for which the municipality has been given notice of

 

 

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1the order of confirmation of sale pursuant to subsection (b-10)
2of Section 15-1508 of the Code of Civil Procedure shall not be
3deemed to be an abandoned residential property for the purposes
4of subsection (d) of Section 11-20-7, subsection (d) of Section
511-20-8, subsection (d) of Section 11-20-12, subsection (e) of
6Section 11-20-13, and Section 11-31-1.01 of this Code.
7    "MERS program" means the nationwide Mortgage Electronic
8Registration System approved by Fannie Mae, Freddie Mac, and
9Ginnie Mae that has been created by the mortgage banking
10industry with the mission of registering every mortgage loan in
11the United States to lawfully make information concerning each
12residential mortgage loan and the property securing it
13available by Internet access to mortgage originators,
14servicers, warehouse lenders, wholesale lenders, retail
15lenders, document custodians, settlement agents, title
16companies, insurers, investors, county recorders, units of
17local government, and consumers.
18    (i) Any entity or person who performs a removal, securing,
19or enclosing activity pursuant to the authority of a
20municipality under subsection (d) of Section 11-20-7,
21subsection (d) of Section 11-20-8, subsection (d) of Section
2211-20-12, subsection (e) of Section 11-20-13, or Section
2311-31-1.01, may, in its, his, or her own name, file a lien
24pursuant to subsection (b) of this Section and appear in a
25foreclosure action on that lien pursuant to subsection (d) of
26this Section in the place of the municipality, provided that

 

 

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1the municipality shall remain subject to subsection (c) of this
2Section, and such party shall be subject to all of the
3provisions in this Section as if such party were the
4municipality.
5    (i-5) All amounts received by the municipality for costs
6incurred pursuant to this Section for which the municipality
7has been reimbursed under Section 7.31 of the Illinois Housing
8Development Act shall be remitted to the State Treasurer for
9deposit into the Abandoned Residential Property Municipality
10Relief Fund.
11    (j) If prior to subsection (d) of Section 11-20-7,
12subsection (d) of Section 11-20-8, subsection (d) of Section
1311-20-12, and subsection (e) of Section 11-20-13 becoming
14inoperative a lien is filed pursuant to any of those
15subsections, then the lien shall remain in full force and
16effect after the subsections have become inoperative, subject
17to all of the provisions of this Section. If prior to the
18repeal of Section 11-31-1.01 a lien is filed pursuant to
19Section 11-31-1.01, then the lien shall remain in full force
20and effect after the repeal of Section 11-31-1.01, subject to
21all of the provisions of this Section.
22    (k) In any case where a municipality has obtained a lien
23under subsection (a), the municipality may also bring an action
24for a money judgment against the owner or owners of the real
25estate in the amount of the lien in the same manner as provided
26for bringing causes of action in Article II of the Code of

 

 

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1Civil Procedure and, upon obtaining a judgment, file a judgment
2lien against all of the real estate of the owner or owners and
3enforce that lien as provided for in Article XII of the Code of
4Civil Procedure.
5(Source: P.A. 96-856, eff. 3-1-10; 96-1419, eff. 10-1-10.)".