99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB3038

 

Introduced 2/18/2016, by Sen. Emil Jones, III

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-20-15
65 ILCS 5/11-20-15.1

    Amends the Illinois Municipal Code. Provides that a municipality may file a notice of lien for removal of costs relating to dilapidated properties on any other parcel or parcels of private property in owned by the owner of the dilapidated property located within the same municipality as the dilapidated property. Further provides that after obtaining a judgment on a lien for removal costs of dilapidated properties a municipality may file a lien against any property owned by the owner of the dilapidated property.


LRB099 18834 AWJ 43219 b

 

 

A BILL FOR

 

SB3038LRB099 18834 AWJ 43219 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 and other parcels. This lien is superior to
12all other liens and encumbrances, except tax liens and as
13otherwise provided in subsection (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

 

 

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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    (b-5) Using the same requirements as set forth in
8subsection (b), a municipality may also file a notice of lien
9on any other parcels for the removal cost under Section
1011-20-7, 11-20-8, 11-20-12, or 11-20-13 on the underlying
11parcel.
12    (c) A lien under this Section is not valid as to: (i) any
13purchaser whose rights in and to the underlying parcel or other
14parcel arose after the removal activity but before the filing
15of the notice of lien; or (ii) any mortgagee, judgment
16creditor, or other lienor whose rights in and to the underlying
17parcel or other parcel arose before the filing of the notice of
18lien.
19    (d) The removal cost is not a lien on the underlying parcel
20or other parcel unless a notice is personally served on, or
21sent by certified mail to, the person to whom was sent the tax
22bill for the general taxes on the property for the taxable year
23immediately preceding the removal activities. The notice must
24be delivered or sent after the removal activities have been
25performed, and it must: (i) state the substance of this Section
26and the substance of any ordinance of the municipality

 

 

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1implementing this Section; (ii) identify the underlying parcel
2and other parcels, by common description; and (iii) describe
3the 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 or other parcel.
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
19all related liens on the underlying parcel and other parcels
20the lien, and the releases release may be filed of record by
21the owner at his or her sole expense as in the case of filing
22notice of lien.
23    (h-5) In any case where a municipality has obtained a lien
24under subsection (a), the municipality may also bring an action
25for a money judgment against the owner or owners of the
26underlying parcel in the amount of the lien in the same manner

 

 

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1as provided for bringing causes of action in Article II of the
2Code of Civil Procedure and, upon obtaining a judgment, file a
3judgment lien against all of the real estate of the owner or
4owners and enforce that lien as provided for in Article XII of
5the Code of Civil Procedure.
6    (i) For the purposes of this Section:
7    "Lien cost" means the removal cost and the filing costs for
8any notice of lien under subsection (b).
9    "Other parcel" means a parcel or parcels of private
10property other than the underlying parcel that is within the
11same municipality and has the same ownership as the underlying
12parcel.
13    "Removal activity" means any activity for which a removal
14cost was incurred.
15    "Removal cost" means a removal cost as defined under
16Section 11-20-7, 11-20-8, 11-20-12, or 11-20-13.
17    "Underlying parcel" means a parcel of private property upon
18which a removal activity was performed.
19    "Year" means a 365-day period.
20    (j) This Section applies only to liens filed after August
2114, 2009 (the effective date of Public Act 96-462).
22    (k) This Section shall not apply to a lien filed pursuant
23to Section 11-20-15.1.
24(Source: P.A. 96-462, eff. 8-14-09; 96-856, eff. 3-1-10;
2596-1000, eff. 7-2-10.)
 

 

 

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1    (65 ILCS 5/11-20-15.1)
2    Sec. 11-20-15.1. Lien for costs of removal, securing, and
3enclosing on abandoned residential property.
4    (a) If the municipality elects to incur a removal cost
5pursuant to subsection (d) of Section 11-20-7, subsection (d)
6of Section 11-20-8, subsection (d) of Section 11-20-12, or
7subsection (e) of Section 11-20-13, or a securing or enclosing
8cost pursuant to Section 11-31-1.01 with respect to an
9abandoned residential property, then that cost is a lien upon
10the underlying parcel of that abandoned residential property.
11This lien is superior to all other liens and encumbrances,
12except tax liens and as otherwise provided in this Section.
13    (b) To perfect a lien under this Section, the municipality
14must, within one year after the cost is incurred for the
15activity, file notice of the lien in the office of the recorder
16in the county in which the abandoned residential property is
17located or, if the abandoned residential property is registered
18under the Torrens system, in the office of the Registrar of
19Titles of that county, a sworn statement setting out:
20        (1) a description of the abandoned residential
21    property that sufficiently identifies the parcel;
22        (2) the amount of the cost of the activity;
23        (3) the date or dates when the cost for the activity
24    was incurred by the municipality; and
25        (4) a statement that the lien has been filed pursuant
26    to subsection (d) of Section 11-20-7, subsection (d) of

 

 

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1    Section 11-20-8, subsection (d) of Section 11-20-12,
2    subsection (e) of Section 11-20-13, or Section 11-31-1.01,
3    as applicable.
4    If, for any abandoned residential property, the
5municipality engaged in any activity on more than one occasion
6during the course of one year, then the municipality may
7combine any or all of the costs of each of those activities
8into a single notice of lien.
9    (c) To enforce a lien pursuant to this Section, the
10municipality must maintain contemporaneous records that
11include, at a minimum: (i) a dated statement of finding by the
12municipality that the property for which the work is to be
13performed has become abandoned residential property, which
14shall include (1) the date when the property was first known or
15observed to be unoccupied by any lawful occupant or occupants,
16(2) a description of the actions taken by the municipality to
17contact the legal owner or owners of the property identified on
18the recorded mortgage, or, if known, any agent of the owner or
19owners, including the dates such actions were taken, and (3) a
20statement that no contacts were made with the legal owner or
21owners or their agents as a result of such actions, (ii) a
22dated certification by an authorized official of the
23municipality of the necessity and specific nature of the work
24to be performed, (iii) a copy of the agreement with the person
25or entity performing the work that includes the legal name of
26the person or entity, the rate or rates to be charged for

 

 

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1performing the work, and an estimate of the total cost of the
2work to be performed, (iv) detailed invoices and payment
3vouchers for all payments made by the municipality for such
4work, and (v) a statement as to whether the work was engaged
5through a competitive bidding process, and if so, a copy of all
6proposals submitted by the bidders for such work.
7    (d) A lien under this Section shall be enforceable
8exclusively at the hearing for confirmation of sale of the
9abandoned residential property that is held pursuant to
10subsection (b) of Section 15-1508 of the Code of Civil
11Procedure and shall be limited to a claim of interest in the
12proceeds of the sale and subject to the requirements of this
13Section. Any mortgagee who holds a mortgage on the property, or
14any beneficiary or trustee who holds a deed of trust on the
15property, may contest the lien or the amount of the lien at any
16time during the foreclosure proceeding upon motion and notice
17in accordance with court rules applicable to motions generally.
18Grounds for forfeiture of the lien or the superior status of
19the lien granted by subsection (a) of this Section shall
20include, but not be limited to, a finding by the court that:
21(i) the municipality has not complied with subsection (b) or
22(c) of this Section, (ii) the scope of the work was not
23reasonable under the circumstances, (iii) the work exceeded the
24authorization for the work to be performed under subsection (a)
25of Section 11-20-7, subsection (a) of Section 11-20-8,
26subsection (a) of Section 11-20-12, subsection (a) of Section

 

 

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111-20-13, or subsection (a) of Section 11-31-1.01, as
2applicable, or (iv) the cost of the services rendered or
3materials provided was not commercially reasonable. Forfeiture
4of the superior status of the lien otherwise granted by this
5Section shall not constitute a forfeiture of the lien as a
6subordinate lien.
7    (e) Upon payment of the amount of a lien filed under this
8Section by the mortgagee, servicer, owner, or any other person,
9the municipality shall release the lien, and the release may be
10filed of record by the person making such payment at the
11person's sole expense as in the case of filing notice of lien.
12    (f) Notwithstanding any other provision of this Section, a
13municipality may not file a lien pursuant to this Section for
14activities performed pursuant to Section 11-20-7, Section
1511-20-8, Section 11-20-12, Section 11-20-13, or Section
1611-31-1.01, if: (i) the mortgagee or servicer of the abandoned
17residential property has provided notice to the municipality
18that the mortgagee or servicer has performed or will perform
19the remedial actions specified in the notice that the
20municipality otherwise might perform pursuant to subsection
21(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
22subsection (d) of Section 11-20-12, subsection (e) of Section
2311-20-13, or Section 11-31-1.01, provided that the remedial
24actions specified in the notice have been performed or are
25performed or initiated in good faith within 30 days of such
26notice; or (ii) the municipality has provided notice to the

 

 

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1mortgagee or servicer of a problem with the property requiring
2the remedial actions specified in the notice that the
3municipality otherwise would perform pursuant to subsection
4(d) of Section 11-20-7, subsection (d) of Section 11-20-8,
5subsection (d) of Section 11-20-12, subsection (e) of Section
611-20-13, or Section 11-31-1.01, and the mortgagee or servicer
7has performed or performs or initiates in good faith the
8remedial actions specified in the notice within 30 days of such
9notice.
10    (g) This Section and subsection (d) of Section 11-20-7,
11subsection (d) of Section 11-20-8, subsection (d) of Section
1211-20-12, subsection (e) of Section 11-20-13, or Section
1311-31-1.01 shall apply only to activities performed, costs
14incurred, and liens filed after the effective date of this
15amendatory Act of the 96th General Assembly.
16    (h) For the purposes of this Section and subsection (d) of
17Section 11-20-7, subsection (d) of Section 11-20-8, subsection
18(d) of Section 11-20-12, subsection (e) of Section 11-20-13, or
19Section 11-31-1.01:
20    "Abandoned residential property" means any type of
21permanent residential dwelling unit, including detached single
22family structures, and townhouses, condominium units and
23multifamily rental apartments covering the entire property,
24and manufactured homes treated under Illinois law as real
25estate and not as personal property, that has been unoccupied
26by any lawful occupant or occupants for at least 90 days, and

 

 

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1for which after such 90 day period, the municipality has made
2good faith efforts to contact the legal owner or owners of the
3property identified on the recorded mortgage, or, if known, any
4agent of the owner or owners, and no contact has been made. A
5property for which the municipality has been given notice of
6the order of confirmation of sale pursuant to subsection (b-10)
7of Section 15-1508 of the Code of Civil Procedure shall not be
8deemed to be an abandoned residential property for the purposes
9of subsection (d) of Section 11-20-7, subsection (d) of Section
1011-20-8, subsection (d) of Section 11-20-12, subsection (e) of
11Section 11-20-13, and Section 11-31-1.01 of this Code.
12    "MERS program" means the nationwide Mortgage Electronic
13Registration System approved by Fannie Mae, Freddie Mac, and
14Ginnie Mae that has been created by the mortgage banking
15industry with the mission of registering every mortgage loan in
16the United States to lawfully make information concerning each
17residential mortgage loan and the property securing it
18available by Internet access to mortgage originators,
19servicers, warehouse lenders, wholesale lenders, retail
20lenders, document custodians, settlement agents, title
21companies, insurers, investors, county recorders, units of
22local government, and consumers.
23    (i) Any entity or person who performs a removal, securing,
24or enclosing activity pursuant to the authority of a
25municipality under subsection (d) of Section 11-20-7,
26subsection (d) of Section 11-20-8, subsection (d) of Section

 

 

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111-20-12, subsection (e) of Section 11-20-13, or Section
211-31-1.01, may, in its, his, or her own name, file a lien
3pursuant to subsection (b) of this Section and appear in a
4foreclosure action on that lien pursuant to subsection (d) of
5this Section in the place of the municipality, provided that
6the municipality shall remain subject to subsection (c) of this
7Section, and such party shall be subject to all of the
8provisions in this Section as if such party were the
9municipality.
10    (i-5) All amounts received by the municipality for costs
11incurred pursuant to this Section for which the municipality
12has been reimbursed under Section 7.31 of the Illinois Housing
13Development Act shall be remitted to the State Treasurer for
14deposit into the Abandoned Residential Property Municipality
15Relief Fund.
16    (j) If prior to subsection (d) of Section 11-20-7,
17subsection (d) of Section 11-20-8, subsection (d) of Section
1811-20-12, and subsection (e) of Section 11-20-13 becoming
19inoperative a lien is filed pursuant to any of those
20subsections, then the lien shall remain in full force and
21effect after the subsections have become inoperative, subject
22to all of the provisions of this Section. If prior to the
23repeal of Section 11-31-1.01 a lien is filed pursuant to
24Section 11-31-1.01, then the lien shall remain in full force
25and effect after the repeal of Section 11-31-1.01, subject to
26all of the provisions of this Section.

 

 

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1    (k) In any case where a municipality has obtained a lien
2under subsection (a) the municipality may also bring an action
3for a money judgment against the owner or owners of the real
4estate in the amount of the lien in the same manner as provided
5for bringing causes of action in Article II of the Code of
6Civil Procedure and, upon obtaining a judgment, file a judgment
7lien against all of the real estate of the owner or owners and
8enforce that lien as provided for in Article XII of the Code of
9Civil Procedure.
10(Source: P.A. 96-856, eff. 3-1-10; 96-1419, eff. 10-1-10.)