Illinois General Assembly - Full Text of HB4834
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Full Text of HB4834  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/27/2022, by Rep. Chris Bos


35 ILCS 200/15-174
35 ILCS 200/15-174.5 new

    Amends the Property Tax Code. Provides that the community stabilization assessment freeze pilot program is extended until June 30, 2039 (currently, June 30, 2029). Removes a requirement that the community stabilization assessment freeze pilot program applies only to parcels located in a targeted area. Removes a requirement that there must be an existing residential dwelling structure of no more than 6 units on the parcel that was unoccupied at the time of conveyance for a minimum of 6 months, or that the parcel was ordered by a court to be deconverted. Provides that, if a countywide voter referendum establishing a community stabilization freeze is adopted, then the chief county assessment officer of the county must make the reduction provided by law. Contains provisions concerning referendum requirements. Effective immediately.

LRB102 22329 HLH 31466 b





HB4834LRB102 22329 HLH 31466 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Property Tax Code is amended by changing
5Section and 15-174 and by adding Section 15-174.5 as follows:
6    (35 ILCS 200/15-174)
7    Sec. 15-174. Community stabilization assessment freeze
8pilot program.
9    (a) Beginning January 1, 2015 and ending June 30, 2039
10June 30, 2029, the chief county assessment officer of any
11county may reduce, or if the community stabilization freeze is
12adopted by countywide voter referendum as provided in Section
1315-174.5, the chief county assessment officer of the county
14must reduce, the assessed value of improvements to residential
15real property in accordance with subsection (b) for 10 taxable
16years after the improvements are put in service, if and only if
17all of the following factors have been met:
18        (1) the improvements are residential;
19        (2) the parcel was purchased or otherwise conveyed to
20    the taxpayer after January 1 of the taxable year and that
21    conveyance was not a tax sale as required under the
22    Property Tax Code;
23        (3) (blank); the parcel is located in a targeted area;



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1        (4) for single family homes, the taxpayer occupies the
2    improvements on the parcel as his or her primary
3    residence; for residences of one to 6 units that will not
4    be owner-occupied, the taxpayer replaces 2 primary
5    building systems as outlined in this Section;
6        (5) the transfer from the holder of the prior mortgage
7    to the taxpayer was an arm's length transaction, in that
8    the taxpayer has no legal relationship to the holder of
9    the prior mortgage;
10        (6) (blank); an existing residential dwelling
11    structure of no more than 6 units on the parcel was
12    unoccupied at the time of conveyance for a minimum of 6
13    months, or the parcel was ordered by a court of competent
14    jurisdiction to be deconverted in accordance with the
15    provisions governing distressed condominiums as provided
16    in the Condominium Property Act;
17        (7) the parcel is clear of unreleased liens and has no
18    outstanding tax liabilities attached against it; and
19        (8) the purchase price did not exceed the Federal
20    Housing Administration's loan limits then in place for the
21    area in which the improvement is located.
22    To be eligible for the benefit conferred by this Section,
23residential units must (i) meet local building codes, or if
24there are no local building codes, Housing Quality Standards,
25as determined by the U.S. Department of Housing and Urban
26Development from time to time and (ii) be owner-occupied or in



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1need of substantial rehabilitation. "Substantial
2rehabilitation" means, at a minimum, compliance with local
3building codes and the replacement or renovation of at least 2
4primary building systems. Although the cost of each primary
5building system may vary, the combined expenditure for making
6the building compliant with local codes and replacing primary
7building systems must be at least $5 per square foot, adjusted
8by the Consumer Price Index for All Urban Consumers, as
9published annually by the U.S. Department of Labor. "Primary
10building systems", together with their related
11rehabilitations, specifically approved for this program are:
12        (1) Electrical. All electrical work must comply with
13    applicable codes; it may consist of a combination of any
14    of the following alternatives:
15            (A) installing individual equipment and appliance
16        branch circuits as required by code (the minimum being
17        a kitchen appliance branch circuit);
18            (B) installing a new emergency service, including
19        emergency lighting with all associated conduits and
20        wiring;
21            (C) rewiring all existing feeder conduits ("home
22        runs") from the main switchgear to apartment area
23        distribution panels;
24            (D) installing new in-wall conduits for
25        receptacles, switches, appliances, equipment, and
26        fixtures;



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1            (E) replacing power wiring for receptacles,
2        switches, appliances, equipment, and fixtures;
3            (F) installing new light fixtures throughout the
4        building including closets and central areas;
5            (G) replacing, adding, or doing work as necessary
6        to bring all receptacles, switches, and other
7        electrical devices into code compliance;
8            (H) installing a new main service, including
9        conduit, cables into the building, and main disconnect
10        switch; and
11            (I) installing new distribution panels, including
12        all panel wiring, terminals, circuit breakers, and all
13        other panel devices.
14        (2) Heating. All heating work must comply with
15    applicable codes; it may consist of a combination of any
16    of the following alternatives:
17            (A) installing a new system to replace one of the
18        following heat distribution systems: (i) piping and
19        heat radiating units, including new main line venting
20        and radiator venting; or (ii) duct work, diffusers,
21        and cold air returns; or (iii) any other type of
22        existing heat distribution and radiation/diffusion
23        components; or
24            (B) installing a new system to replace one of the
25        following heat generating units: (i) hot water/steam
26        boiler; (ii) gas furnace; or (iii) any other type of



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1        existing heat generating unit.
2        (3) Plumbing. All plumbing work must comply with
3    applicable codes. Replace all or a part of the in-wall
4    supply and waste plumbing; however, main supply risers,
5    waste stacks and vents, and code-conforming waste lines
6    need not be replaced.
7        (4) Roofing. All roofing work must comply with
8    applicable codes; it may consist of either of the
9    following alternatives, separately or in combination:
10            (A) replacing all rotted roof decks and
11        insulation; or
12            (B) replacing or repairing leaking roof membranes
13        (10% is the suggested minimum replacement of
14        membrane); restoration of the entire roof is an
15        acceptable substitute for membrane replacement.
16        (5) Exterior doors and windows. Replace the exterior
17    doors and windows. Renovation of ornate entry doors is an
18    acceptable substitute for replacement.
19        (6) Floors, walls, and ceilings. Finishes must be
20    replaced or covered over with new material. Acceptable
21    replacement or covering materials are as follows:
22            (A) floors must have new carpeting, vinyl tile,
23        ceramic, refurbished wood finish, or a similar
24        substitute;
25            (B) walls must have new drywall, including joint
26        taping and painting; or



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1            (C) new ceilings must be either drywall, suspended
2        type, or a similar substitute.
3        (7) Exterior walls.
4            (A) replace loose or crumbling mortar and masonry
5        with new material;
6            (B) replace or paint wall siding and trim as
7        needed;
8            (C) bring porches and balconies to a sound
9        condition; or
10            (D) any combination of (A), (B), and (C).
11        (8) Elevators. Where applicable, at least 4 of the
12    following 7 alternatives must be accomplished:
13            (A) replace or rebuild the machine room controls
14        and refurbish the elevator machine (or equivalent
15        mechanisms in the case of hydraulic elevators);
16            (B) replace hoistway electro-mechanical items
17        including: ropes, switches, limits, buffers, levelers,
18        and deflector sheaves (or equivalent mechanisms in the
19        case of hydraulic elevators);
20            (C) replace hoistway wiring;
21            (D) replace door operators and linkage;
22            (E) replace door panels at each opening;
23            (F) replace hall stations, car stations, and
24        signal fixtures; or
25            (G) rebuild the car shell and refinish the
26        interior.



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1        (9) Health and safety.
2            (A) install or replace fire suppression systems;
3            (B) install or replace security systems; or
4            (C) environmental remediation of lead-based paint,
5        asbestos, leaking underground storage tanks, or radon.
6        (10) Energy conservation improvements undertaken to
7    limit the amount of solar energy absorbed by a building's
8    roof or to reduce energy use for the property, including
9    any of the following activities:
10            (A) installing or replacing reflective roof
11        coatings (flat roofs);
12            (B) installing or replacing R-38 roof insulation;
13            (C) installing or replacing R-19 perimeter wall
14        insulation;
15            (D) installing or replacing insulated entry doors;
16            (E) installing or replacing Low E, insulated
17        windows;
18            (F) installing or replacing low-flow plumbing
19        fixtures;
20            (G) installing or replacing 90% sealed combustion
21        heating systems;
22            (H) installing or replacing direct exhaust hot
23        water heaters;
24            (I) installing or replacing mechanical ventilation
25        to exterior for kitchens and baths;
26            (J) installing or replacing Energy Star



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1        appliances;
2            (K) installing low VOC interior paints on interior
3        finishes;
4            (L) installing or replacing fluorescent lighting
5        in common areas; or
6            (M) installing or replacing grading and
7        landscaping to promote on-site water retention.
8    (b) For the first 7 years after the improvements are
9placed in service, the assessed value of the improvements
10shall be reduced by an amount equal to 90% of the difference
11between the base year assessed value of the improvements and
12the assessed value of the improvements in the current taxable
13year. The property will continue to be eligible for the
14benefits under this Section in the eighth and ninth taxable
15years after the improvements are placed in service, calculated
16as follows, if and only if all of the factors in subsection (a)
17of this Section continue to be met: in the eighth taxable year,
18the assessed value of the improvements shall be reduced by an
19amount equal to 65% of the difference between the base year
20assessed value of the improvements and the assessed value of
21the improvements in the current taxable year, and in the ninth
22taxable year, the assessed value of the improvements shall be
23reduced by an amount equal to 35% of the difference between the
24base year assessed value of the improvements and the assessed
25value of the improvements in the current taxable year. The
26benefit will cease in the tenth taxable year.



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1    (c) In order to receive benefits under this Section, in
2addition to any information required by the chief county
3assessment officer, the taxpayer must also submit the
4following information to the chief county assessment officer
5for review:
6        (1) the owner's name;
7        (2) the postal address and permanent index number of
8    the parcel;
9        (3) a deed or other instrument conveying the parcel to
10    the current owner;
11        (4) evidence that the purchase price is within the
12    Federal Housing Administration's loan limits for the area
13    in which the improvement is located;
14        (5) (blank); certification that the parcel was
15    unoccupied at the time of conveyance to the current owner
16    for a minimum of at least 6 months;
17        (6) evidence that the parcel is clear of unreleased
18    liens and has no outstanding tax liabilities attached
19    against it;
20        (7) evidence that the improvements meet local building
21    codes, or if there are no local building codes, Housing
22    Quality Standards, as determined by the U.S. Department of
23    Housing and Urban Development from time to time, which may
24    be shown by a certificate of occupancy issued by the
25    appropriate local government or the certification by a
26    home inspector licensed by the State of Illinois; and



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1        (8) any additional information as reasonably required
2    by the chief county assessment officer.
3    (d) The chief county assessment officer shall notify the
4taxpayer as to whether or not the parcel meets the
5requirements of this Section. If the parcel does not meet the
6requirements of this Section, the chief county assessment
7officer shall provide written notice of any deficiencies to
8the taxpayer, who will then have 14 days from the date of
9notification to provide supplemental information showing
10compliance with this Section. If the taxpayer does not
11exercise this right to cure the deficiency, or if the
12information submitted, in the sole judgment of the chief
13county assessment officer, is insufficient to meet the
14requirements of this Section, the chief county assessment
15officer shall provide a written explanation of the reasons for
16denial. A taxpayer may subsequently reapply for the benefit if
17the deficiencies are cured at a later date, but no later than
182019. The chief county assessment officer may charge a
19reasonable application fee to offset the administrative
20expenses associated with the program.
21    (e) The benefit conferred by this Section is limited as
23        (1) The owner is eligible to apply for the benefit
24    conferred by this Section beginning January 1, 2015
25    through December 31, 2019 and again beginning January 1,
26    2021 through December 31, 2029. If approved, the reduction



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1    will be effective for the current taxable year, which will
2    be reflected in the tax bill issued in the following
3    taxable year.
4        (2) The reduction outlined in this Section shall
5    continue for a period of 10 years, and may not be extended
6    or renewed for any additional period. No property shall be
7    eligible under this Section for 2 or more separate
8    reductions.
9        (3) At the completion of the assessment freeze period
10    described here, the entire parcel will be assessed as
11    otherwise provided in this Code.
12        (4) If there is a transfer of ownership during the
13    period of the assessment freeze, then the benefit
14    conferred by this Section shall not apply on or after the
15    date of that transfer unless (i) the property is conveyed
16    by an owner who does not occupy the improvements as a
17    primary residence to an owner who will occupy the
18    improvements as a primary residence and (ii) all
19    requirements of this Section continue to be met.
20    (f) If the taxpayer does not occupy or intend to occupy the
21residential dwelling as his or her principal residence within
22a reasonable time, as determined by the chief county
23assessment officer, the taxpayer must:
24        (1) immediately secure the residential dwelling in
25    accordance with the requirements of this Section;
26        (2) complete sufficient rehabilitation to bring the



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1    improvements into compliance with local building codes,
2    including, without limitation, regulations concerning
3    lead-based paint and asbestos remediation; and
4        (3) complete rehabilitation within 18 months of
5    conveyance.
6    (g) For the purposes of this Section,
7        "Base year" means the taxable year prior to the
8    taxable year in which the property is purchased by the
9    eligible homeowner.
10        "Secure" means that:
11            (1) all doors and windows are closed and secured
12        using secure doors, windows without broken or cracked
13        panes, commercial-quality metal security panels filled
14        with like-kind material as the surrounding wall, or
15        plywood installed and secured in accordance with local
16        ordinances; at least one building entrance shall be
17        accessible from the exterior and secured with a door
18        that is locked to allow access only to authorized
19        persons;
20            (2) all grass and weeds on the vacant residential
21        property are maintained below 10 inches in height,
22        unless a local ordinance imposes a lower height;
23            (3) debris, trash, and litter on any portion of
24        the exterior of the vacant residential property is
25        removed in compliance with local ordinance;
26            (4) fences, gates, stairs, and steps that lead to



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1        the main entrance of the building are maintained in a
2        structurally sound and reasonable manner;
3            (5) the property is winterized when appropriate;
4            (6) the exterior of the improvements are
5        reasonably maintained to ensure the safety of
6        passersby; and
7            (7) vermin and pests are regularly exterminated on
8        the exterior and interior of the property.
9        "Targeted area" means a distressed community that
10    meets the geographic, poverty, and unemployment criteria
11    for a distressed community set forth in 12 C.F.R.
12    1806.200.
13(Source: P.A. 98-789, eff. 1-1-15.)
14    (35 ILCS 200/15-174.5 new)
15    Sec. 15-174.5. Petition requirements; notice.
16    (a) Subject to the petition requirements of Section 28-3
17of the Election Code, petitions for a referendum to adopt a
18Community Stabilization Assessment Freeze pilot program must
19be filed with the governing board of the county not less than
20122 days prior to any election held throughout the county.
21Petitions must include:
22        (1) the name of the county; and
23        (2) a number of signatures equal to or greater than
24    the larger of: (i) 5% of the total ballots cast in the
25    county in the immediately preceding election that is of an



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1    election type comparable to the election for which the
2    petition is being filed; or (ii) 2,500 signatures; all
3    signatures gathered under this paragraph (2) must be
4    signed within 180 days prior to the filing of a petition.
5    (b) If a valid petition is filed under subsection (a),
6then the county clerk shall, by publication in one or more
7newspapers of general circulation within the county and on the
8county's website, not less than 90 days prior to the election
9at which the referendum is to be voted on, give notice in
10substantially the following form:
13    Residents of (County) are notified that a petition has
14been filed with (the County) requesting a referendum to adopt
15a Community Stabilization Assessment Freeze throughout
17    Section 99. Effective date. This Act takes effect upon
18becoming law.