Resolution 2009-18 STATE OF ILLINOIS )
)ss
COUNTY OF KENDALL )
RESOLUTION NO. 2009-
A RESOLUTION AUTHORIZING SUPPORT FOR THE
ILLINOIS VACANT AND ABANDONED PROPERTIES ACT (FI.B. 1195, S.B. 1409)
WHEREAS, the Mayor and City Council of the United City of Yorkville are deeply concerned about
the housing foreclosure crisis and the consequences for communities of the corresponding rise in vacant and
abandoned properties; and
WHEREAS, obtaining information regarding the existence of home foreclosures as well as the entity
responsible for the maintenance and disposition of properties in foreclosure is extremely difficult and time
consuming; and
WHEREAS, properties in foreclosure as well as vacant and abandoned properties present difficult
property maintenance issues and drain community resources;
NOW THEREFORE BE IT RESOLVED, by the Mayor and City Council of the United City of
Yorkville, Kendall County, Illinois, as follows:
Section 1: The foregoing recitals are incorporated into, and made a part of, this resolution as fmdings
of the City Council.
Section 2: The City Council finds that the intent and substance of two bills now before the Illinois
General Assembly, H.B. 1195 and S.B. 1409, as presented in the attached draft, will be beneficial to the general
public and protect the public health, safety and welfare by providing information and tools that the City can use
to address home foreclosures and vacant and abandoned properties.
Section 3: This resolution shall be in full force and effect upon its passage and approval by a majority
of the members of the City Council.
Passed by the City Council of the United City of Yorkville, Kendall County, Illinois this CZ day
of t4\ n, A.D. 2009.
CITY CLERK
ROBYN SUTCLIFF JOSEPH BESCO v�
GARY GOLINSKI ARDEN JOE PLOCHER
WALLY WERDERICH MARTY MUNNS �v
ROSE ANN SPEARS \r\ BOB ALLEN Y1�
Approved by me, as Mayor of the United City of Yorkville, Kendall County, Illinois, this o?
day of MA P.0 -H , A.D. 2009.
MAYOR
i
VACANT AND ABANDONED PROPERTY LEGISLATION
AN ACT concerning vacant and abandoned property.
WHEREAS, There is a continuing need to strengthen and revitalize the economy of this
state; and
WHEREAS, Vacant and abandoned properties threaten communities around the state
because such properties diminish property values, enable crime, and create health
hazards; and
WHEREAS, Municipalities are often unaware of which properties are at risk of
becoming vacant and abandoned; and
WHEREAS, Municipalities have an interest in knowing the status of the housing stock
located in their jurisdictions; and
WHEREAS, Local governments should be empowered to acquire, develop, maintain, and
dispose of vacant and abandoned properties that present a threat to communities around
the state; and
WHEREAS, Municipalities lack many of the tools necessary to ensure adequate property
maintenance; and
WHEREAS, Municipalities are unable to recover the reasonable costs of their property
maintenance activity; therefore
Be it enacted by the People of the State of Illinois, represented in the General
Assembly:
This Shall be Cited as "The Illinois Vacant and Abandoned Properties Act"
Section 1. Short title. This Act shall be known and may be cited as the Illinois Land
Banking Act.
Section 5. Definitions
"Authority" means the land bank authority created pursuant to this act.
"Intergovermnental agreement" means a contractual agreement between one or more
governmental agencies, including, but not limited to, an agreement to jointly exercise any
power, privilege, or authority that agencies share in common and that each might exercise
separately under this act.
Section 10. Authorization
VACANT AND ABANDONED PROPERTY LEGISLATION
A municipality may create a land bank authority with the powers and restrictions
specified in this act.
In creating an authority, the municipality shall provide for all of the following:
(1) The incorporation of the authority as a public body, corporate and politic;
(2) Articles of incorporation for the authority, which must specify a list of
permissible purposes for authority activity under this act which may be prioritized
in any way the municipality chooses;
(3) The size of the board of directors for the authority, which shall be composed of an
odd number of members;
(4) The qualifications, methods of selection, and terms of office of the board
members.
Section 15: Election of Tax Remittance
A municipality may authorize a portion of the taxes collected on real property pursuant to
35 ILCS 200/1 -1 et seq. that when an authority sells or conveys property under this Act
may be remitted to the authority that sold or conveyed such real property in order to
further the purposes of the this Act. The municipality may elect to have up to 50 percent
of such taxes remitted to the authority for up to five years after the land bank has
completed the sale or conveyance of the property.
Section 20. Board of Directors
The board of the authority shall meet from time to time as required, and the presence of a
majority of the board of directors shall constitute a quorum.
A chairperson shall be elected from among the members, and he or she shall execute all
deeds, leases, and contracts of the authority when authorized by the board.
The board of the authority shall conduct meetings in accordance with the Illinois Open
Meetings Act, 5 ILCS 120/1 et seq.
The board of the authority shall adopt a code of ethics for its directors, officers, and
employees.
Members of the board of directors of an authority shall serve without compensation.
The board of the authority shall establish policies and procedures requiring the disclosure
of relationships that may give rise to a conflict of interest. The governing body of the
authority shall require that any member of the governing body with a direct or indirect
interest in any matter disclose the member's interest to the governing body before the
board takes any action on that matter.
Section 25. Powers
I
VACANT AND ABANDONED PROPERTY LEGISLATION
Except as otherwise provided in this act, an authority may do all things necessary or
convenient to implement the purposes, objectives, and provisions of this act, including
but not limited to all of the following:
(a) Acquire property pursuant to Section 30 of this Act;
(b) Adopt, amend, and repeal bylaws for the regulation of its affairs and the
conduct of its business;
(c) Sue and be sued in its own name and plead and be impleaded, including, but
not limited to, defending the authority in an action to clear title to property
conveyed by the authority;
(d) Take any action, provide any notice, or instate any proceeding required to
clear or quiet title to property held by the authority in order to establish
ownership by and vest title to property in the authority;
(e) Be made party to and defend any action or proceeding concerning title claims
against property held by the authority;
(f) Borrow money and issue bonds and notes according to the provisions of this
act;
(g) Enter into contracts and other instruments necessary, incidental, or convenient
to the performance of its duties and the exercise of its powers, including, but
not limited to, intergovernmental agreements, for the joint exercise of power
under this act. Enter into contracts for the management of, the collection of
rent from, and the sale of real property held by an authority. Enter into
contract with others, public of private, for the provision of all or a portion of
the services necessary for the management and operation of the authority;
(h) Solicit and accept gifts, grants, labor, loans, and other aid from any person, or
the federal government, this state, or a political subdivision of this state or any
agency of the federal government, this state, a political subdivision of this
state, or an intergovernmental entity created under the laws of this state or
participate in any other way in a program of the federal government, this state,
a political subdivision of this state, or an intergovernmental entity created
under the laws of this state;
(i) Procure insurance against loss in connection with the property, assets, or
activities of the authority;
0) Control, hold, manage, maintain, operate, repair, lease as lessor, secure,
prevent the waste or deterioration of, demolish, and take all other actions
necessary to preserve the value of the property it holds or owns;
(k) Remediate environmental contamination on any property held by the
authority;
(1) Fix, charge, and collect rents, fees, and charges for use of property under the
control of the authority or for services provided by the authority;
(m)Grant or acquire a license, easement, or option with respect to property as the
authority determines is reasonably necessary to achieve the purposes of the
act;
(n) Pay any tax or special assessment due on property acquired or owned by the
authority;
VACANT AND ABANDONED PROPERTY LEGISLATION
(o) Invest money of the authority, at the discretion of the board of directors of the
authority, in instruments, obligations, securities, or property determined
proper by the board of directors of the authority, and name and use
depositories for its money;
(p) Employ its own employees or utilize employees of the authorizing
municipality or employees of the parties to intergovernmental agreements.
(q) Employ legal and technical experts, other officers, agents, or employees pay
them from the funds of the authority and determine the qualifications, duties,
and compensation of those it employs. The board of directors of an authority
may delegate to one or more of its members, officers, agents, or employees
any powers or duties it considers proper.
(r) Reimburse members of the board of directors of the authority for actual and
necessary expenses subject to available appropriations;
(s) Contract for goods and services and engage personnel as necessary and
engage the services of private consultants, managers, legal counsel, engineers,
accounts, and auditors for rendering professional financial assistance and
advice payable out of any money available to the authority;
(t) Prepare the reports or plans the authority considers necessary to assist it in the
exercise of its powers under this act and to monitor and evaluate progress
under this act;
(u) Do all other things necessary or convenient to achieve the objectives and
purposes of the authority or other laws that relate to the purposes and
responsibility of the authority.
The enumeration of a power in this act shall not be construed as a limitation upon the
general powers of an authority. The powers granted by this act are in addition to those
powers granted by any other statute or charter.
Section 30. Acquisition of Property
An authority may acquire by gift, devise, transfer, exchange, foreclosure, purchase, or
otherwise on terms and conditions and in a manner the authority considers proper, real
property within the authority's jurisdiction, or rights or interests in real property within
the authority's jurisdiction.
An authority may acquire by gift, devise, transfer, exchange, foreclosure, purchase, or
otherwise on terms and conditions and in a manner the authority considers proper, real
property outside of the authority's jurisdiction pursuant to an intergovernmental
agreement, or rights or interests in real property outside of the authority's jurisdiction
pursuant to an intergovernmental agreement.
An authority may acquire by gift, devise, transfer, exchange, foreclosure, purchase, or
otherwise on terms and conditions and in a manner the authority considers proper,
personal property, or rights or interests in personal property.
VACANT AND ABANDONED PROPERTY LEGISLATION
Real property acquired by an authority by purchase may be by purchase contract, lease
purchase agreement, installment sales contract, land contract, or otherwise.
An authority may hold and own in its name any property acquired by it or conveyed to it
by this state, a foreclosing governmental unit, a local unit of government, an
intergovernmental entity created under the laws of this state, or any other public or
private person, including, but not limited to, property without clear title.
All deeds, mortgages, contracts, leases, purchases, or other agreements regarding
property of an authority, including agreements to acquire or dispose of real property,
shall be approved by and executed in the name of the authority.
The authority shall have the right to purchase properties at tax sales conducted in
accordance with 35 ILCS § 200/21 -150 et. seq.
(a) The authority may tender a bid at tax sale which is a credit bid, consisting of
the obligation of the authority to satisfy the component parts of the bid by
payments to the respective political subdivisions.
(b) A bid by the authority at a tax sale for the minimum amount shall take priority
over all other bids for the same property.
Section 35. Taxes
When a property is acquired by the authority, the authority shall have the power to
extinguish all outstanding county and city or consolidated government taxes, including
school district taxes, at the time it sells or otherwise disposes of property.
Property of an authority is public property devoted to an essential public and
governmental function and purpose. Income of the authority is considered to be for a
public and governmental purpose. The property of the authority and its income and
operation are exempt from all taxes and special assessments of this state and all local
units of government of this state. Bonds or notes issued by the authority, and the interest
on and income from those bonds and notes, are exempt from all taxation of this state or a
local unit of government.
Section 40. Disposition
The authority may convey, sell, transfer, exchange, lease as lessor, or otherwise dispose
of property or rights or interests in property to which the authority holds a legal interest to
any public or private person for value determined by the authority.
Section 45. Receipt of Taxes
All monies received by an authority as payment of taxes, penalties, or interest, or from
the redemption or sale of property subject to a tax lien of any taxing unit shall be returned
to the appropriate local tax collecting unit in which the property is located.
VACANT AND ABANDONED PROPERTY LEGISLATION
Section 50. Proceeds
Except as otherwise provided in this act, as required by other law, as required under the
provisions of a deed, or as an authority otherwise agrees, any proceeds received by the
authority may be retained by the authority for the purposes of this act.
Section 55: Record Maintenance
The authority shall maintain a written inventory of all property held by the authority. The
property shall be inventoried and classified by the authority according to title status and
suitability for use. The inventory shall be available for public inspection during regular
business hours.
For each property held, the authority shall establish and maintain itemized records and
accounts reflecting all transactions, expenditures, and revenues relating to all property
held by the authority.
VACANT AND ABANDONED PROPERTY LEGISLATION
Section 21. The Property Tax Code is amended by adding Section 21 -231 as follows:
(35 ILCS 200/21 -231) (from Chap. 35, par. 21 -231)
Sec. 21 -231. Notice of Sales and Redemptions
When any property is sold, the county clerk shall send notice of the sale to the municipal
clerk of the iurisdiction where the propertv is located of the name of the purchaser and
the amount of the final bid. When any propertv is redeemed from sale, the countv clerk
shall send notice to the municipal clerk of the jurisdiction where the propertv is located of
the name of the person redeeming and the redemption date. These notices must be sent by
re ,gistered or certified mail within 30 days of sale or redemption.
Section 22. The Property Tax Code is amended by changing Section 22 -240 as follows:
(35 ILCS 200/22 -40) (from Chap. 35, par. 22 -40)
Sec. 22 -240. Issuance of deed; possession
(a) If the redemption period expires and the property has not been redeemed and all taxes
and special assessments which became due and payable subsequent to the sale have been
paid and all forfeitures and sales which occur subsequent to the sale have been redeemed
and the notices required by law have been given and all advancements of public funds
under the police power made by a city, village or town under Section 22 -35 f 35 ILCS
200/22 -351 have been paid and the petitioner has complied with all the provisions of law
entitling him or her to a deed, the court shall so find and shall enter an order directing the
county clerk on the production of the certificate of purchase and a certified copy of the
order, to issue to the purchaser or his or her assignee a tax deed. The court shall insist on
strict compliance with Section 22 -10 through 22 -25 [35 ILCS 200/22 -10 through 35
ILCS 200/22 -251. Prior to the entry of an order directing the issuance of a tax deed, the
petitioner shall furnish the court with a report of proceedings of the evidence received on
the application for tax deed and the report of proceedings shall be filed and made a part
of the court record.
(b) If taxes for years prior to the year or years sold are or become delinquent subsequent
to the date of sale, the court shall find that the lien of those delinquent taxes has been or
will be merged into the tax deed grantee's title if the court determines that the tax deed
grantee or any prior holder of the certificate of purchase, or any person or entity under
common ownership or control with any such grantee or prior holder of the certificate of
purchase, was at no time the holder of any certificate of purchase for the years sought to
be merged. If delinquent taxes are merged into the tax deed pursuant to this subsection,
the court shall enter an order declaring which specific taxes have been or will be merged
into the tax deed title and directing the county treasurer and county clerk to reflect that
declaration in the warrant and judgment records; provided, that no such order shall be
effective until a tax deed has been issued and timely recorded. Nothing contained in this
VACANT AND ABANDONED PROPERTY LEGISLATION
Section shall relieve any owner liable for delinquent property taxes under this Code from
the payment of the taxes that have been merged into the title upon issuance of the tax
deed.
(c) The county clerk is entitled to a fee of $ 10 in counties of 3,000,000 or more
inhabitants and $ 5 in counties with less than 3,000,000 inhabitants for the issuance of the
tax deed. The clerk may not include in a tax deed more than one property as listed,
assessed and sold in one description, except in cases where several properties are owned
by one person.
Upon application the court shall, enter an order to place the tax deed grantee or the
grantee's successor in interest in possession of the property and may enter orders and
grant relief as may be necessary or desirable to maintain the grantee or the grantee's
successor in interest in possession.
(d) The court shall retain jurisdiction to enter orders pursuant to subsections (b) and (c) of
this Section. This amendatory Act of the 92nd General Assembly [P.A. 92 -223] and this
amendatory Act of the 95th General Assembly [P.A. 95 -4771 shall be construed as being
declarative of existing law and not as a new enactment.
(e) When the deed is issued, the countv clerk shall send notice to the municipal clerk
where the property is located of the full names and the true post office address and
residence of the grantee. Such notice must be sent by registered or certified mail within
30 days of the issuance of the deed.
Section 11. The Illinois Municipal Code is amended by adding Section 11 -153 and
Section 11 -154 as follows:
(65 ILCS 5/11 -153) (from Chap. 65, par. 11 -153)
Sec. 11 -153 Vacant and Abandoned Property Rules, Regulations, and Ordinances
For the purposes of minimizing the hazards to persons and propertv resulting from vacant
and abandoned propertv, the corporate authoritv of each municipality may prescribe
rules, regulations, or ordinances for the maintenance of vacant and abandoned propertv.
The rules, regulations, or ordinances under this section may include registration fees for
vacant and abandoned propertv and fines for failure to comply with the rules, regulations,
or ordinances pursuant to this section.,
(65 ILCS 5/11 -154) (from Chap. 65, par. 11 -154)
Sec. 11 -154 Mortgage Beneficiary Responsibility For Violations of Municipal
Law
VACANT AND ABANDONED PROPERTY LEGISLATION
Municipalities may hold responsible for anv failure to comply with rules. regulations, or
ordinances for the maintenance of vacant and abandoned property (1) any beneficiary /
trustee, who holds a deed of trust on a neglected propertv located within the municipality,
or (2) any mortgagee who holds a mortgage on an neglected propertv located within the
municipality, and has filed a notice of default under 735 ILCS 5/15 - 1503.,
If a beneficiary / trustee, who holds a deed of trust on an neglected property. or a
mortgagee who holds a mortgage on an neglected propertv, is held responsible for anv
failure to comply with municipal law. that beneficiary / trustee or mortgagee may enter
the property, after proper notice, to remedv any violation of the rules, regulations. or
ordinances for the maintenance of vacant and abandoned propertv. The beneficiary /
trustee or mortgagee may only enter the propertv if, 15 days after the beneficiary / trustee
or mortgagee sent proper notice. the property owners and occupants have failed to,
comply with the rules, regulations, or ordinances at issue.,
"Neglected" means that there has been no occupant in the property for a period of six
months and two or more of the following criteria have been met:
(a) Construction was initiated on the property and was discontinued prior,
to completion. leavine the building unsuitable for occupancv, and no
construction has taken place for at least six months;
(b) At least one installment of oroDerty tax is unpaid and delinquent,
(c) The propertv has had more than one uncorrected municipal code
violation over the past year;
(d) Gas, electric. or water service to the premises has been terminated;,
(e) Windows or entrances to the premises are boarded up or closed off, or
multiple window panes are broken and unrepaired;,
(fl Doors to the premises are smashed through, broken off, unhinged, or
continuouslv unlocked:
(g) Rubbish, trash, or debris has accumulated on the premises;
(h) The police or sheriffs office has received at least two reports of
trespassers on the uremises, or of vandalism or other illegal acts being
committed on the premises in the past six months;.
(i) The property is a nuisance.
Mortgagee means (i) the holder of an indebtedness or obligee of a non - monetary
obligation secured by a mortgage or any person designated or authorized to act on behalf
of such holder and (ii) anv person claiming through a mortgagee as successor.
"Proper notice" means notice to all property owners and occupants by certified or
registered mail stating the beneficiary / trustee or mortgagee's intent to enter the
property; such notice must be sent at least 15 days before the beneficiary / trustee or
mortgagee enters the nropertv. The notice must specifv the municipal law violations the
beneficiary / trustee or mortgagee has been held responsible for by a municipality.
"Occupant" means a person in lawful physical possession of all or part of the mortgaged
real estate.
VACANT AND ABANDONED PROPERTY LEGISLATION
"Nuisance" means any property which because of its physical condition or use is a public
nuisance, or any property which constitutes a blight on the surroundine area, or any
property which is not fit for human habitation under the applicable fire, building and
housing codes. "Nuisance" also means any property on which any illegal activity
involving controlled substances. methamphetamine. or cannabis takes place or anv
property on which any streetgang- related takes place.
Section 13. The Illinois Municipal Code is amended by changing Section 11 -20 -13 and
on 11 -20 -7 and adding Section 11- 20 -7.5 as follows:
(65 ILCS 5/11- 20 -13) (from Chap. 65, par. 11- 20 -13)
Sec. 11 -20 -13 Removal of garbage, debris, and graffiti from private property
Sec. 11- 20 -13. The corporate authorities of each municipality may provide for the
removal of garbage, debris, and graffiti from private property when the owner of such
property, after reasonable notice, refuses or neglects to remove such garbage, debris, and
graffiti and may collect from such owner the reasonable cost thereof except in the case of
graffiti. This cost. including any associated fees and other costs related to the
enforcement of this Section,, is a lien upon the real estate affected, superior to all
subsequent liens and encumbrances, except tax liens, if within 60 days after such cost and
expense is incurred the municipality, or person performing the service by authority of the
municipality, in his or its own name, files notice of lien in the office of the recorder in the
county in which such real estate is located or in the office of the Registrar of Titles of
such county if the real estate affected is registered under "An Act concerning land titles ",
approved May 1, 1897, as amended r765 ILCS 35/1 et seq.]. The notice shall consist of a
sworn statement setting out (1) a description of the real estate sufficient for identification
thereof, (2) the amount of money representing the cost and expense incurred or payable
for the service, and (3) the date or dates when such cost and expense was incurred by the
municipality. However, the lien of such municipality shall not be valid as to any
purchaser whose rights in and to such real estate have arisen subsequent to removal of the
garbage and debris and prior to the filing of such notice ±h ° u eh nnunisipalit
shall aet be valid as te any meftgagee, judgment er-editer- er- ether- liener- whose r-i&s i
and + estate the fili � ° , eti . Upon payment of the cost
' � � � cn�iliG'ZIIIii��71 �7 u V as a °
and expense by the owner of or persons interested in such property after notice of lien has
been filed, the lien shall be released by the municipality or person in whose name the lien
has been filed and the release may be filed of record as in the case of filing notice of lien.
The lien may be enforced by proceedings to foreclose as in case of mortgages or
mechanics' liens. An action to foreclose this lien shall be commenced within 2 years after
the date of filing notice of lien.
(65 ILCS 5/11 -20 -7) (from Chap. 65, par. 11 -20 -7)
VACANT AND ABANDONED PROPERTY LEGISLATION
Sec. 11 -20 -7. Cutting of weeds
Sec. 11 -20 -7. The corporate authorities of each municipality may provide for the cutting
of weeds or grass, the trimming of trees or bushes, and the removal of nuisance bushes or
trees in the municipality, when the owners of real estate refuse or neglect to cut, trim, or
remove them and to collect from the owners of private property the reasonable cost
thereof. This cost, including anv associated fees and other costs related to the
enforcement of this Section,, is a lien upon the real estate affected, superior to all
subsequent liens and encumbrances, except tax liens; provided that within 60 days after
such cost and expense is incurred the municipality, or person performing the service by
authority of the municipality, in his or its own name, files notice of lien in the office of
the recorder in the county in which such real estate is located or in the office of the
Registrar of Titles of such county if the real estate affected is registered under the Torrens
system. The notice shall consist of a sworn statement setting out (1) a description of the
real estate sufficient for identification thereof, (2) the amount of money representing the
cost and expense incurred or payable for the service, and (3) the date or dates when such
cost and expense was incurred by the municipality. However, the lien of such
municipality shall not be valid as to any purchaser whose rights in and to such real estate
have arisen subsequent to the cutting of weeds or grass, the trimming of trees or bushes,
or the removal of nuisance bushes or trees and prior to the filing of such notice and
lien -e€ su : :: c
other- liener- whose rights ifi and to sueh real estate i
Upon payment of the cost and expense by the owner of or persons interested in such
property after notice of lien has been filed, the lien shall be released by the municipality
or person in whose name the lien has been filed and the release may be filed of record as
in the case of filing notice of lien.
The cost of the cutting, trimming, or removal of weeds, grass, trees, or bushes shall not
be lien on the real estate affected unless a notice is personally served on, or sent by
certified mail to, the person to whom was sent the tax bill for the general taxes on the
property for the last preceding year. The notice shall be delivered or sent after the cutting,
trimming, or removal of weeds, grass, trees, or bushes on the property. The notice shall
state the substance of this Section and the substance of any ordinance of the municipality
implementing this Section and shall identify the property, by common description, and
the location of the weeds to be cut.
(65 ILCS 5/11- 20 -7.5) (from Chap. 65, par. 11- 20 -7.5)
Sec. 11- 20 -7.5. Care for Vacant and Abandoned Buildings
Sec. 11- 20 -7.5. The corporate authorities of each municipality may (1) provide for
nropertv maintenance required to correct violations of municipal vacant and abandoned,
vronertv rules, regulations and ordinances that would fall within such rules, regulations
and ordinances contemplated by 65 ILCS 5/11 -153. when the owners of real estate refuse
or neglect to correct such violations and (2) collect from the owners of private propertv
the reasonable cost thereof. This cost,, including anv associated fees and other costs,
VACANT AND ABANDONED PROPERTY LEGISLATION
related to the enforcement of this Section. is a lien upon the real estate affected. superior
to all subsequent liens and encumbrances, except tax liens: provided that within 60 days
after such cost and expense is incurred the municipality, or person performing the service
by authority of the municipality, in his or its own name, files notice of lien in the office of
the recorder in the county in which such real estate is located or in the office of the
Registrar of Titles of such county if the real estate affected is registered under the Torrens
system. The notice shall consist of a sworn statement setting out (1) a description of the
real estate sufficient for identification thereof. (2) the amount of money representing the
cost and expense incurred or payable for the service, and (3) the date or dates when such
cost and expense was incurred by the municipality. However, the lien of such
municipality shall not be valid as to any purchaser whose rights in and to such real estate
have arisen subsequent to the property maintenance and prior to the filing of such notice.
Upon payment of the cost and expense by the owner of or persons interested in such
property after notice of lien has been filed. the lien shall be released by the municipality
or person in whose name the lien has been filed and the release may be filed of record as
in the case of filing notice of lien. The lien may be enforced by proceedings to foreclose
as in case of mortgages or mechanics' liens. An action to foreclose this lien shall be
commenced within 2 years after the date of filing notice of lien.
Section 15. The Code of Civil Procedure is amended by adding Section 15- 1503.5 and
changing Section 15 -1509 as follows:
(735 ILCS 5/15- 1503.5) (from Part 15, par. 15- 1503.5)
Sec. 15- 1503.5. Notice of Foreclosure to Municipalities and Servicer Duties
The municipality within the boundaries of which the property is located shall be provided
notice of foreclosure; and all parties shall include the clerk of such municipality in any
mailings or notices associated with foreclosure proceedings concerning property within
the municipality's boundaries. All notices must be sent by registered or certified mail.
The municipality shall not be ioined as a party unless they are ioined as a party under
other provisions of this section.
When notice of foreclosure is sent to a municipality, it shall include (i) the names of all
plaintiffs and the case number, (ii) the court in which the action was brought, (iii) the
names of title holders of record. (iv) a legal description of the real estate sufficient to.
identify it with reasonable certainty, (v) a common address or description of the location
of the real estate. (vi) identification of the mortgage sought to be foreclosed, (vii) the
name, address, and phone number of the servicer. servicer's agent, or servicer's
representative and (viii) the name of a natural person. 21 years or age or older who
maintains a permanent residence in Illinois and who can be contacted by the municipality
to answer questions relating to the maintenance of the property. Such notice must be sent
within 10 days of the filing of a notice of foreclosure under 735 ILCS 5/15 -1503 with
the county in which the mortgaged real estate is located.,
VACANT AND ABANDONED PROPERTY LEGISLATION
If, before a foreclosure sale is completed, there is a change in any. of the relevant
information above, such as name, phone number, agenet, or local representative, new
notice must be sent to the municipality informing the municipality of the change. Such
notice must be sent within 30 days of the change.
For the purposes of this section, the term "servicer" means the person responsible for
servicing of a loan (including the person who makes or holds a loan if such person also
services the loan).
For the purposes of this section, the term "servicing" means the collection or remittance
or the right or obligation to collect or remit for any lender, noteowner, noteholder, or for
a licensee's own account, of payments, interest, principal, and trust items such as hazard
insurance and taxes on a residential mortgage loan in accordance with the terms of the
residential mortgage loan; and includes loan payment follow -up, delinquency loan
follow -up, loan analysis and any notifications to the borrower that are necessary to enable
the borrower to keep the loan current and in good standing.
Servicers have the following duties in replying to municipal inquiries:
(A) In general. If any servicer of a loan receives a qualified written request from a
municipality for information relating to the maintenance of the property covered
by the loan, the servicer shall provide a written response acknowledging the
receipt of the correspondence within 20 days (excluding public holidays,,
Saturdays, and Sundays) unless the action requested is taken within such period.
(B) Qualified Written Request. For the purposes of this subsection, a qualified written
request shall be a written correspondence that includes, or otherwise enables the
servicer to identify, the name and account of the borrower.
(C) Action with respect to inquiry. Not later than 60 days (excluding legal public
holidays, Saturdays, and Sundays) after the receipt from any municipality of any
qualified written request the servicer shall provide the information requested.
Any person, partnership, association, corporation or other entity that violates any
provision of this section commits a business offense and shall be fined an amount not to
exceed $ 25,000 by the Commissioner of Banks and Real Estate or a person authorized
by the Commissioner, the Office of Banks and Real Estate Act F20 ILLS 3205/0.1 et
seq.l, or this Act to act in the Commissioner's steadf.l
(735 ILCS 5/15 -1509) (from Part 15, par. 15 -1509)
Sec. 15 -1509. Report of Sale or No Sale and Confirmation of Sale
(a) Report.
The person conducting the sale shall promptly make a report to the court,
which report shall include a copy of all receipts and, if any, certificate of sale.
VACANT AND ABANDONED PROPERTY LEGISLATION
ii The person conducting the sale shall promptly make a report to the
municipality, which report shall include the name of the - vartv purchasing the
property if the property is sold, or the name of the.resultinv- nropertv- holding
entity if there is no sale. Such a report must be sent by registered or certified
mail within 30 days of the sale proceeding.
(b) Hearing. Upon motion and notice in accordance with court rules applicable to
motions generally, which motion shall not be made prior to sale, the court shall conduct a
hearing to confirm the sale. Unless the court finds that (i) a notice required in accordance
with subsection (c) of Section 15 -1507 [735 ILLS 5/15 -15071 was not given, (ii) the
terms of sale were unconscionable, (iii) the sale was conducted fraudulently or (iv) that
justice was otherwise not done, the court shall then enter an order confirming the sale.
The confirmation order may also:
(1) approve the mortgagee's fees and costs arising between the entry of the judgment of
foreclosure and the confirmation hearing, those costs and fees to be allowable to the same
extent as provided in the note and mortgage and in Section 15 -1504 [735 ILCS 5/15-
1504
(2) provide for a personal judgment against any party for a deficiency; and
(3) determine the priority of the judgments of parties who deferred proving the priority
pursuant to subsection (h) of Section 15 -1506 f735 ILCS 5/15 - 15061, but the court shall
not defer confirming the sale pending the determination of such priority.
(b -5) Notice with respect to residential real estate. With respect to residential real estate,
the notice required under subsection (b) of this Section shall be sent to the mortgagor
even if the mortgagor has previously been held in default. In the event the mortgagor has
filed an appearance, the notice shall be sent to the address indicated on the appearance. In
all other cases, the notice shall be sent to the mortgagor at the common address of the
foreclosed property. The notice shall be sent by first class mail. Unless the right to
possession has been previously terminated by the court, the notice shall include the
following language in 12 -point boldface capitalized type:
IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO
REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF
POSSESSION, IN ACCORDANCE WITH SECTION 15- 1701(c) OF THE ILLINOIS
MORTGAGE FORECLOSURE LAW.
(c) Failure to Give Notice. If any sale is held without compliance with subsection (c) of
Section 15 -1507 of this Article [735 ILCS 15- 1507], any party entitled to the notice
provided for in paragraph (3) of that subsection (c) who was not so notified may, by
motion supported by affidavit made prior to confirmation of such sale, ask the court
which entered the judgment to set aside the sale, provided that such party shall guarantee
or secure by bond a bid equal to the successful bid at the prior sale. Any subsequent sale
VACANT AND ABANDONED PROPERTY LEGISLATION
is subject to the same notice requirement as the original sale.
(d) Validity of Sale. Except as provided in subsection (c) of Section 15 -1508, no sale
under this Article shall be held invalid or be set aside because of any defect in the notice
thereof or in the publication of the same, or in the proceedings of the officer conducting
the sale, except upon good cause shown in a hearing pursuant to subsection (b) of Section
15 -1508. At any time after a sale has occurred, any party entitled to notice under
paragraph (3) of subsection (c) of Section 15 -1507 x735 ILCS 5/15 -15071 may recover
from the mortgagee any damages caused by the mortgagee's failure to comply with such
paragraph (3). Any party who recovers damages in a judicial proceeding brought under
this subsection may also recover from the mortgagee the reasonable expenses of
litigation, including reasonable attorney's fees.
(e) Deficiency Judgment. In any order confirming a sale pursuant to the judgment of
foreclosure, the court shall also enter a personal judgment for deficiency against any
party (i) if otherwise authorized and (ii) to the extent requested in the complaint and
proven upon presentation of the report of sale in accordance with Section 15 -1508.
Except as otherwise provided in this Article, a judgment may be entered for any balance
of money that may be found due to the plaintiff, over and above the proceeds of the sale
or sales, and enforcement may be had for the collection of such balance, the same as
when the judgment is solely for the payment of money. Such judgment may be entered,
or enforcement had, only in cases where personal service has been had upon the persons
personally liable for the mortgage indebtedness, unless they have entered their
appearance in the foreclosure action.
(f) Satisfaction. Upon confirmation of the sale, the judgment stands satisfied to the extent
of the sale price less expenses and costs. If the order confirming the sale includes a
deficiency judgment, the judgment shall become a lien in the manner of any other
judgment for the payment of money.
(g) The order confirming the sale shall include, notwithstanding any previous orders
awarding possession during the pendency of the foreclosure, an award to the purchaser of
possession of the mortgaged real estate, as of the date 30 days after the entry of the order,
against the parties to the foreclosure whose interests have been terminated.
An order of possession authorizing the removal of a person from possession of the
mortgaged real estate shall be entered and enforced only against those persons personally
named as individuals in the complaint or the petition under subsection (h) of Section 15-
1701 r735 ILCS 5/15-17011 and in the order of possession and shall not be entered and
enforced against any person who is only generically described as an unknown owner or
nonrecord claimant or by another generic designation in the complaint.
Notwithstanding the preceding paragraph, the failure to personally name, include, or seek
an award of possession of the mortgaged real estate against a person in the confirmation
order shall not abrogate any right that the purchaser may have to possession of the
mortgaged real estate and to maintain a proceeding against that person for possession
i
VACANT AND ABANDONED PROPERTY LEGISLATION
under Article 9 of this Code or subsection (h) of Section 15 -1701 F735 ILCS 5/15 - 17011;
and possession against a person who (1) has not been personally named as a party to the
foreclosure and (2) has not been provided an opportunity to be heard in the foreclosure
proceeding may be sought only by maintaining a proceeding under Article 9 of this Code
or subsection (h) of Section 15 -1701 [735 ILCS 5/15- 17011.