Bill Text: IL HB5367 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Unsafe Property Division of the Illinois Municipal Code. Provides that if the holder of a receiver's certificate, note, or lien incurs or expends any sums enforcing the certificate, note, or a lien, whether by foreclosure or otherwise, the holder of the receiver's certificate, note, or lien is entitled to recover the reasonable fees and expenses incurred or expended in enforcing the receiver's certificate, note, or lien, including, but not limited to, attorney's fees, title searches or examinations, process server fees, publication charges, sheriff's sale costs, and court filing fees. Provides that the amount of fees and costs shall be added to the indebtedness secured by the receiver's certificate, note, or lien. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB5367 Detail]

Download: Illinois-2019-HB5367-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB5367 Introduced , by Rep. André Thapedi SYNOPSIS AS INTRODUCED:
65 ILCS 5/11-31-2 from Ch. 24, par. 11-31-2
Amends the Unsafe Property Division of the Illinois Municipal Code. Provides that if the holder of a receiver's certificate, note, or lien incurs or expends any sums enforcing the certificate, note, or a lien, whether by foreclosure or otherwise, the holder of the receiver's certificate, note, or lien is entitled to recover the reasonable fees and expenses incurred or expended in enforcing the receiver's certificate, note, or lien, including, but not limited to, attorney's fees, title searches or examinations, process server fees, publication charges, sheriff's sale costs, and court filing fees. Provides that the amount of fees and costs shall be added to the indebtedness secured by the receiver's certificate, note, or lien. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Section 11-31-2 as follows:
(65 ILCS 5/11-31-2) (from Ch. 24, par. 11-31-2)
Sec. 11-31-2. (a) If the appropriate official of any
municipality determines, upon due investigation, that any
building or structure therein fails to conform to the minimum
standards of health and safety as set forth in the applicable
ordinances of such municipality, and the owner or owners of
such building or structure fails, after due notice, to cause
such property so to conform, the municipality may make
application to the circuit court for an injunction requiring
compliance with such ordinances or for such other order as the
court may deem necessary or appropriate to secure such
compliance.
If the appropriate official of any municipality
determines, upon due investigation, that any building or
structure located within the area affected by a conservation
plan, adopted by the municipality pursuant to the Urban
Community Conservation Act, fails to conform to the standards
and provisions of such plan, and the owner or owners of such

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building or structure fails, after due notice, to cause such
property so to conform, the municipality has the power to make
application to the circuit court for an injunction requiring
compliance with such plan or for such other order as the court
may deem necessary or appropriate to secure such compliance.
The hearing upon such suit shall be expedited by the court
and shall be given precedence over all other actions.
If, upon application hereunder, the court orders the
appointment of a receiver to cause such building or structure
to conform, such receiver may use the rents and issues of such
property toward maintenance, repair and rehabilitation of the
property prior to and despite any assignment of rents; and the
court may further authorize the receiver to recover the cost of
such maintenance, repair and rehabilitation by the issuance and
sale of notes or receiver's certificates bearing such interest
as the court may fix, and such notes or certificates, after
their initial issuance and transfer by the receiver, shall be
freely transferable and when sold or transferred by the
receiver in return for a valuable consideration in money,
material, labor or services, shall be a first lien upon the
real estate and the rents and issues thereof, and shall be
superior to all prior assignments of rents and all prior
existing liens and encumbrances, except taxes; provided, that
within 90 days of such sale or transfer for value by the
receiver of such note or certificate, the holder thereof shall
file notice of lien in the office of the recorder in the county

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in which the 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 Registered Titles (Torrens) Act. The
notice of the lien filed shall set forth (1) a description of
the real estate affected sufficient for the identification
thereof, (2) the face amount of the receiver's note or
certificate, together with the interest payable thereon, and
(3) the date when the receiver's note or certificate was sold
or transferred for value by the receiver. Upon payment to the
holder of the receiver's note or certificate of the face amount
thereof together with any interest thereon to such date of
payment, and upon the filing of record of a sworn statement of
such payment, the lien of such certificate shall be released.
Unless the lien is enforced pursuant to subsection (b), the
lien may be enforced by proceedings to foreclose as in the case
of mortgages or mechanics' liens, and such action to foreclose
such lien may be commenced at any time after the date of
default. For the purposes of this subsection (a), the date of
default shall be deemed to occur 90 days from the date of
issuance of the receiver's certificate if at that time the
certificate remains unpaid in whole or in part.
In the event a receiver appointed under this subsection (a)
completes a feasibility study which study finds that the
property cannot be economically brought into compliance with
the minimum standards of health and safety as set forth in the
applicable ordinances of the municipality, the receiver may

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petition the court for reimbursement for the cost of the
feasibility study from the receivership feasibility study and
fee fund. The court shall review the petition and authorize
reimbursement from the fund to the receiver if the court finds
that the findings in the feasibility report are reasonable,
that the fee for the feasibility report is reasonable, and that
the receiver is unable to obtain reimbursement other than by
foreclosure of a lien on the property. If the court grants the
petition for reimbursement from the fund and, upon receiving
certification from the court of the amount to be paid, the
county treasurer shall order that amount paid from the fund to
the receiver. If the court grants the petition for
reimbursement from the fund, the court shall also authorize and
direct the receiver to issue a certificate of lien against
title. The recorded lien shall be a first lien upon the real
estate and shall be superior to all prior liens and
encumbrances except real estate taxes. The court shall also
order the receiver to reimburse the fund to the extent that the
receiver is reimbursed upon foreclosure of the receiver's lien
upon sale of the property.
In any proceedings hereunder in which the court orders the
appointment of a receiver, the court may further authorize the
receiver to enter into such agreements and to do such acts as
may be required to obtain first mortgage insurance on the
receiver's notes or certificates from an agency of the Federal
Government.

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(b) In any case where a municipality has obtained a lien
pursuant to subsection (a), the municipality may enforce such
lien pursuant to this subsection (b) in the same proceeding in
which the lien is authorized.
A municipality desiring to enforce a lien under this
subsection (b) shall petition the court to retain jurisdiction
for foreclosure proceedings under this subsection. Notice of
the petition shall be served, by certified or registered mail,
on all persons who were served notice under subsection (a). The
court shall conduct a hearing on the petition not less than 15
days after such notice is served. If the court determines that
the requirements of this subsection (b) have been satisfied, it
shall grant the petition and retain jurisdiction over the
matter until the foreclosure proceeding is completed. If the
court denies the petition, the municipality may enforce the
lien in a separate action as provided in subsection (a).
All persons designated in Section 15-1501 of the Code of
Civil Procedure as necessary parties in a mortgage foreclosure
action shall be joined as parties prior to issuance of an order
of foreclosure. Persons designated in Section 15-1501 of the
Code of Civil Procedure as permissible parties may also be
joined as parties in the action.
The provisions of Article XV of the Code of Civil Procedure
applicable to mortgage foreclosures shall apply to the
foreclosure of a lien pursuant to this subsection (b), except
to the extent that such provisions are inconsistent with this

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subsection. However, for purposes of foreclosures of liens
pursuant to this subsection, the redemption period described in
subsection (b) of Section 15-1603 of the Code of Civil
Procedure shall end 60 days after the date of entry of the
order of foreclosure.
If the holder of a receiver's certificate, note, or lien
under this Section incurs or expends any sums enforcing the
certificate, note, or a lien, whether by foreclosure or
otherwise, the holder of the receiver's certificate, note, or
lien is entitled to recover the reasonable fees and expenses
incurred or expended in enforcing the receiver's certificate,
note, or lien, including, but not limited to, attorney's fees,
title searches or examinations, process server fees,
publication charges, sheriff's sale costs, and court filing
fees. The amount of fees and costs shall be added to the
indebtedness secured by the receiver's certificate, note, or
lien.
(Source: P.A. 91-554, eff. 8-14-99.)
Section 99. Effective date. This Act takes effect upon
becoming law.