Bill Text: IL HB2990 | 2013-2014 | 98th General Assembly | Amended
Bill Title: Amends the Property Tax Code. Creates a reduction for improvements to foreclosed property. Provides that the assessed value of those improvements shall be reduced 10% of the equalized assessed value of the improvements on June 30, 2012. Provides that the reduction shall be for a period of 5 years, and is subject to certain conditions. Effective immediately.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2014-12-03 - Session Sine Die [HB2990 Detail]
Download: Illinois-2013-HB2990-Amended.html
| |||||||
| |||||||
| |||||||
1 | AMENDMENT TO HOUSE BILL 2990
| ||||||
2 | AMENDMENT NO. ______. Amend House Bill 2990 by replacing | ||||||
3 | everything after the enacting clause with the following:
| ||||||
4 | "Section 5. The Property Tax Code is amended by adding | ||||||
5 | Section 15-174 as follows:
| ||||||
6 | (35 ILCS 200/15-174 new) | ||||||
7 | Sec. 15-174. Residential foreclosure to affordable housing | ||||||
8 | assessment freeze law. | ||||||
9 | This Section may be cited as the Residential Foreclosure to | ||||||
10 | Affordable Housing Assessment Freeze Law. | ||||||
11 | (a) Beginning January 1, 2014 and ending June 30, 2022, the | ||||||
12 | chief county assessment officer shall reduce the assessed value | ||||||
13 | of the improvements to residential real property to 10% of the
| ||||||
14 | assessed value of those improvements for 5 taxable years, if | ||||||
15 | and only if all of the following factors have been met: | ||||||
16 | (1) the improvements are residential; |
| |||||||
| |||||||
1 | (2) the parcel was purchased or otherwise conveyed to | ||||||
2 | the taxpayer after January 1 of the taxable year; | ||||||
3 | (3) the parcel was purchased by the holder of a | ||||||
4 | mortgage on the foreclosed parcel that was the subject of a | ||||||
5 | judicial sale which occurred after January 1, 2008, or the | ||||||
6 | parcel was ordered by a court of competent jurisdiction to | ||||||
7 | be deconverted in accordance with the provisions governing | ||||||
8 | distressed condominiums as provided in the Condominium | ||||||
9 | Property Act; | ||||||
10 | (4) the transfer from the holder of the prior mortgage | ||||||
11 | to the taxpayer was an arm's length transaction, in that | ||||||
12 | the taxpayer has no legal relationship to the holder of the | ||||||
13 | prior mortgage; | ||||||
14 | (5) an existing, residential dwelling structure of no | ||||||
15 | more than 6 units in counties with a population of | ||||||
16 | 3,000,000 or more, or 12 units elsewhere in the State, is | ||||||
17 | present on the parcel, and that residential dwelling was | ||||||
18 | unoccupied at the time of conveyance, or the parcel, | ||||||
19 | including any number of units, was ordered by a court of | ||||||
20 | competent jurisdiction to be deconverted in accordance | ||||||
21 | with the provisions governing distressed condominiums as | ||||||
22 | provided in the Condominium Property Act; | ||||||
23 | (6) the taxpayer does not occupy or intend to occupy | ||||||
24 | the residential dwelling as his or her principal residence; | ||||||
25 | (7) the taxpayer immediately secures the residential | ||||||
26 | dwelling in accordance with the requirements of this |
| |||||||
| |||||||
1 | Section; | ||||||
2 | (8) the rehabilitation completed by the taxpayer is | ||||||
3 | sufficient to bring the improvements into compliance with | ||||||
4 | Housing Quality Standards employed by the U.S. Department | ||||||
5 | of Housing and Urban Development, along with all State and | ||||||
6 | federal requirements, including without limitation lead | ||||||
7 | based paint and asbestos remediation; | ||||||
8 | (9) rehabilitation is completed within 18 months of | ||||||
9 | conveyance; | ||||||
10 | (10) the parcel is clear of unreleased liens and has no | ||||||
11 | outstanding tax liabilities attached against it; and | ||||||
12 | (11) after rehabilitation is complete, the taxpayer | ||||||
13 | charges no more for rent than the fair market rent for the | ||||||
14 | life of the benefit conferred by this Section. "Fair Market | ||||||
15 | Rent" means the annual determination made by the U.S. | ||||||
16 | Department of Housing and Urban Development of the maximum | ||||||
17 | allowable rent in each area that can be charged under its | ||||||
18 | rental assistance programs. The Illinois Housing | ||||||
19 | Development Authority (the "Authority") shall make this | ||||||
20 | information available on its website. | ||||||
21 | (b) For purposes of this Section, "secure" means that: | ||||||
22 | (1) all doors and windows are closed and secured using: | ||||||
23 | secure doors; windows without broken or cracked panes; | ||||||
24 | commercial-quality metal security panels filled with | ||||||
25 | like-kind material as the surrounding wall; or plywood | ||||||
26 | installed and secured in accordance with local ordinance; |
| |||||||
| |||||||
1 | at least one building entrance shall be accessible from the | ||||||
2 | exterior and secured with a door that is locked to allow | ||||||
3 | access only to authorized persons; | ||||||
4 | (2) all grass and weeds on the vacant residential | ||||||
5 | property are maintained below 10 inches in height, unless a | ||||||
6 | local ordinance imposes a lower height; | ||||||
7 | (3) debris, trash, and litter on any portion of the | ||||||
8 | exterior of the vacant residential property is removed in | ||||||
9 | compliance with local ordinance; | ||||||
10 | (4) fences, gates, stairs and steps that lead to the | ||||||
11 | main entrance of the building are maintained in a | ||||||
12 | structurally sound and reasonable manner; | ||||||
13 | (5) the property is winterized when appropriate; | ||||||
14 | (6) the exterior of the improvements are reasonably | ||||||
15 | maintained to ensure the safety of passersby; and | ||||||
16 | (7) vermin and pests are regularly exterminated on the | ||||||
17 | exterior and interior of the property. | ||||||
18 | (c) In order to be eligible for and receive benefits | ||||||
19 | conferred by this Section, and in addition to any information | ||||||
20 | required in rules promulgated by the Authority, the taxpayer | ||||||
21 | must submit the following information to the Authority for | ||||||
22 | review: | ||||||
23 | (1) the owner's name and, if the owner is a | ||||||
24 | corporation, limited liability company, or any | ||||||
25 | organization organized under the laws of the State of | ||||||
26 | Illinois, a Certificate of Good Standing issued by the |
| |||||||
| |||||||
1 | Secretary of State; | ||||||
2 | (2) the postal address and permanent index number of | ||||||
3 | the parcel; | ||||||
4 | (3) a Certificate of Sale indicating that the judicial | ||||||
5 | foreclosure sale of the parcel occurred after January 1, | ||||||
6 | 2008; | ||||||
7 | (4) a deed or other instrument conveying the parcel | ||||||
8 | from the foreclosure sale purchaser to the current owner; | ||||||
9 | (5) a bid from a licensed, insured, and bonded | ||||||
10 | contractor for the proposed scope of work, and a cost | ||||||
11 | estimate by an unrelated third party; | ||||||
12 | (6) evidence that the parcel is clear of unreleased | ||||||
13 | liens and has no outstanding tax liabilities attached | ||||||
14 | against it; and | ||||||
15 | (7) a sworn statement indicating that all conditions of | ||||||
16 | this Section have been met, including that the rent will | ||||||
17 | not exceed fair market rent, as defined in this Section, | ||||||
18 | and that the property will be maintained in keeping with | ||||||
19 | housing quality standards for the life of the assessment | ||||||
20 | freeze period; and | ||||||
21 | (8) additional information as set forth in rules | ||||||
22 | adopted by the Authority. | ||||||
23 | The Authority shall notify the taxpayer of whether or not | ||||||
24 | the parcel meets the requirements of this Section. If the | ||||||
25 | parcel does not meet the requirements of this Section, the | ||||||
26 | Authority shall provide written notice of all deficiencies to |
| |||||||
| |||||||
1 | the taxpayer, who will then have 14 days from the date of | ||||||
2 | notification to provide supplemental information that shows | ||||||
3 | compliance with this Section. If the taxpayer does not exercise | ||||||
4 | this right to cure the deficiency, or if the information | ||||||
5 | submitted, in the sole judgment of the Authority, is | ||||||
6 | insufficient to meet the requirements of this Section, the | ||||||
7 | Authority shall provide a full written explanation of the | ||||||
8 | reasons for denial. A taxpayer may subsequently reapply for the | ||||||
9 | benefit if the deficiencies are cured at a later date. | ||||||
10 | (d) If a parcel meets the requirements of this Section, the | ||||||
11 | Authority or its authorized agent shall arrange to physically | ||||||
12 | inspect the improvements on the parcel. Only parcels in need of | ||||||
13 | substantial rehabilitation are eligible for the benefit | ||||||
14 | conferred by this Section. "Substantial rehabilitation" must | ||||||
15 | minimally include the replacement or renovation of at least 2 | ||||||
16 | primary building systems. Although the cost of each system may | ||||||
17 | vary, the combined expenditure for the systems must be at least | ||||||
18 | $5 per square foot, adjusted by the Consumer Price Index for | ||||||
19 | All Urban Consumers, as published annually by the U.S. | ||||||
20 | Department of Labor. The following are the primary building | ||||||
21 | systems, together with their related rehabilitations, | ||||||
22 | specifically approved for this program: | ||||||
23 | (1) Electrical. All electrical work must comply with | ||||||
24 | applicable codes, it may consist of a combination of any of | ||||||
25 | the following alternatives: | ||||||
26 | (A) installing individual equipment and appliance |
| |||||||
| |||||||
1 | branch circuits as required by code (the minimum being | ||||||
2 | a kitchen appliance branch circuit); | ||||||
3 | (B) installing a new emergency service, including | ||||||
4 | emergency lighting with all associated conduit and | ||||||
5 | wiring; | ||||||
6 | (C) rewiring all existing feeder conduits ("home | ||||||
7 | runs") from the main switchgear to apartment area | ||||||
8 | distribution panels; | ||||||
9 | (D) installing new in-wall conduit for | ||||||
10 | receptacles, switches, appliances,equipment, and | ||||||
11 | fixtures; | ||||||
12 | (E) replacing power wiring for receptacles, | ||||||
13 | switches, appliances, equipment and fixtures; | ||||||
14 | (F) installing new light fixtures throughout the | ||||||
15 | building including closets and central areas; | ||||||
16 | (G) replacing, adding, or doing work as necessary | ||||||
17 | to bring all receptacles, switches, and other | ||||||
18 | electrical devices into code compliance; | ||||||
19 | (H) installing a new main service, including | ||||||
20 | conduit, cables into the building, and main disconnect | ||||||
21 | switch; | ||||||
22 | (I) installing new distribution panels, including | ||||||
23 | all panel wiring, terminals, circuit breakers, and all | ||||||
24 | other panel devices. | ||||||
25 | (2) Heating. All heating work must comply with | ||||||
26 | applicable codes, it may consist of a combination of any of |
| |||||||
| |||||||
1 | the following alternatives: | ||||||
2 | (A) installing a new system to replace one of the | ||||||
3 | following heat distribution systems: | ||||||
4 | (i) piping and heat radiating units, including | ||||||
5 | new main line venting and radiator venting; or | ||||||
6 | (ii) duct work, diffusers, and cold air | ||||||
7 | returns; or | ||||||
8 | (iii) any other type of existing heat | ||||||
9 | distribution and radiation/diffusion components; | ||||||
10 | (B) installing a new system to replace one of the | ||||||
11 | following heat generating units: | ||||||
12 | (i) hot water/steam boiler; | ||||||
13 | (ii) gas furnace; or | ||||||
14 | (iii) any other type of existing heat | ||||||
15 | generating unit. | ||||||
16 | (3) Plumbing. All plumbing work must comply with | ||||||
17 | applicable codes.
Replace all or a part of the in-wall | ||||||
18 | supply and waste plumbing; however, main supply
risers, | ||||||
19 | waste stacks and vents, and code-conforming waste lines | ||||||
20 | need not
be replaced. | ||||||
21 | (4) Roofing. All roofing work must comply with | ||||||
22 | applicable codes, it may consist of a combination of any of | ||||||
23 | the following alternatives: | ||||||
24 | (A) replacing all rotted roof deck and insulation; | ||||||
25 | (B) replacing or repairing leaking roof membrane | ||||||
26 | (10% is suggested
minimum replacement of membrane); |
| |||||||
| |||||||
1 | restoration of the entire roof is an acceptable | ||||||
2 | substitute for membrane replacement. | ||||||
3 | (5) Exterior doors and windows. Replace the exterior | ||||||
4 | doors and windows. Renovation of ornate entry doors is an | ||||||
5 | acceptable substitute for replacement. | ||||||
6 | (6) Floors, walls, and ceilings. Finishes must be | ||||||
7 | replaced or covered over with new material. The following | ||||||
8 | items define replacement or covering materials acceptable | ||||||
9 | under these guidelines: | ||||||
10 | (A) floors must have new carpeting, vinyl tile, | ||||||
11 | ceramic, refurbished wood finish, or a similar | ||||||
12 | substitute; | ||||||
13 | (B) walls must have new drywall, including joint | ||||||
14 | taping and painting; | ||||||
15 | (C) new ceilings must be either drywall, suspended | ||||||
16 | type, or a similar substitute. | ||||||
17 | (7) Exterior walls. | ||||||
18 | (A) replace loose or crumbling mortar and masonry | ||||||
19 | with new material; | ||||||
20 | (B) replace or paint wall siding and trim as | ||||||
21 | needed; | ||||||
22 | (C) bring porches and balconies to a sound | ||||||
23 | condition; or | ||||||
24 | (D) any combination of (A), (B), and (C). | ||||||
25 | (8) Elevators. Where applicable, at least 4 of the | ||||||
26 | following 7 alternatives must be accomplished: |
| |||||||
| |||||||
1 | (A) replace or rebuild the machine room controls | ||||||
2 | and refurbish the elevator machine (or equivalent | ||||||
3 | mechanisms in the case of hydraulic elevators); | ||||||
4 | (B) replace hoistway electro-mechanical items | ||||||
5 | including: ropes, switches, limits, buffers, levelers, | ||||||
6 | and deflector sheaves (or equivalent mechanisms in the | ||||||
7 | case of hydraulic elevators); | ||||||
8 | (C) replace hoistway wiring; | ||||||
9 | (D) replace door operators and linkage; | ||||||
10 | (E) replace door panels at each opening; | ||||||
11 | (F) replace hall stations, car stations, and | ||||||
12 | signal fixtures; | ||||||
13 | (G) rebuild the car shell and refinish the | ||||||
14 | interior. | ||||||
15 | (9) Health and safety. | ||||||
16 | (A) install or replace fire suppression systems; | ||||||
17 | (B) install or replace security systems; and | ||||||
18 | (C) environmental remediation of lead-based paint, | ||||||
19 | asbestos, leaking underground storage tanks, or radon. | ||||||
20 | (10) Energy conservation improvements undertaken to | ||||||
21 | limit the amount of solar energy absorbed by a building's | ||||||
22 | roof or to reduce energy use for the property, including | ||||||
23 | any of the following activities: | ||||||
24 | (A) installing or replacing reflective roof | ||||||
25 | coatings (flat roofs); | ||||||
26 | (B) installing or replacing R-38 roof insulation; |
| |||||||
| |||||||
1 | (C) installing or replacing R-19 perimeter wall | ||||||
2 | insulation; | ||||||
3 | (D) installing or replacing insulated entry doors; | ||||||
4 | (E) installing or replacing Low E, insulated | ||||||
5 | windows; | ||||||
6 | (F) installing or replacing low-flow plumbing | ||||||
7 | fixtures; | ||||||
8 | (G) installing or replacing 90% sealed combustion | ||||||
9 | heating systems; | ||||||
10 | (H) installing or replacing direct exhaust hot | ||||||
11 | water heaters | ||||||
12 | (I) installing or replacing mechanical ventilation | ||||||
13 | to exterior for kitchens and baths; | ||||||
14 | (J) installing or replacing Energy Star | ||||||
15 | appliances; | ||||||
16 | (K) installing low VOC interior paints on interior | ||||||
17 | finishes | ||||||
18 | (L) installing or replacing fluorescent lighting | ||||||
19 | in common areas; or | ||||||
20 | (M) installing or replacing grading and | ||||||
21 | landscaping to promote on-site water retention. | ||||||
22 | (e) Parcels approved under this Section shall be inspected | ||||||
23 | by the Authority or its authorized agent again upon written | ||||||
24 | notification by the taxpayer that rehabilitation is complete. | ||||||
25 | The Authority, by rule, may require proof in the form of a | ||||||
26 | contractor's sworn statement or other third party |
| |||||||
| |||||||
1 | certification that the rehabilitation was completed. Upon such | ||||||
2 | notification, the Authority or its authorized agent shall | ||||||
3 | inspect the parcel to ensure that it meets the minimum | ||||||
4 | requirements of Housing Quality Standards employed by the U.S. | ||||||
5 | Department of Housing and Urban Development. No parcel will be | ||||||
6 | eligible for the benefit conferred by this Section unless: | ||||||
7 | (1) the Substantial Rehabilitation was completed | ||||||
8 | within 18 months of acquisition; and | ||||||
9 | (2) the improvements on the parcel for which the | ||||||
10 | benefit conferred by this Section are sought were inspected | ||||||
11 | by the Authority or its authorized agent prior to | ||||||
12 | rehabilitation and the Authority issued written | ||||||
13 | notification from the Authority that it met the | ||||||
14 | requirements of this Section with regard to that | ||||||
15 | inspection; | ||||||
16 | (3) the improvements on the parcel for which the | ||||||
17 | benefit conferred by this Section are sought were inspected | ||||||
18 | by the Authority or its authorized agent after | ||||||
19 | rehabilitation and the improvements met the requirements | ||||||
20 | of this Section with regard to that inspection, including | ||||||
21 | that the improvements met Housing Quality Standards | ||||||
22 | requirements. | ||||||
23 | (f) The Authority shall provide notification of the outcome | ||||||
24 | of the final inspection to the owner and the chief county | ||||||
25 | assessor. The reduction outlined in this Section shall be | ||||||
26 | activated when the owner provides notice to the chief county |
| |||||||
| |||||||
1 | assessment officer and county clerk that rehabilitation is | ||||||
2 | complete and meets the required standards. Additional details | ||||||
3 | on the activation process shall be provided in rules adopted by | ||||||
4 | the Authority. | ||||||
5 | (g) An owner is eligible to apply for the benefit conferred | ||||||
6 | by this Section beginning 18 months after the effective date of | ||||||
7 | this Section and through December 31, 2017. If approved, the | ||||||
8 | reduction will be effective for the current taxable year, which | ||||||
9 | will be reflected in the tax bill issued in the following | ||||||
10 | taxable year. | ||||||
11 | (h) The reduction outlined in this Section shall continue | ||||||
12 | for a period of 5 years, and may not be extended or renewed for | ||||||
13 | any additional period. | ||||||
14 | (i) At the completion of the assessment freeze period | ||||||
15 | described here, the entire parcel will be assessed as otherwise | ||||||
16 | provided in this Code. | ||||||
17 | (j) The Illinois Housing Development Authority may adopt | ||||||
18 | rules and charge a reasonable application fee in connection | ||||||
19 | with this Section. | ||||||
20 | (k) The benefit conferred by this Section will be effective | ||||||
21 | in the event of a transfer of ownership during the period of | ||||||
22 | the assessment freeze, so long as all requirements of this | ||||||
23 | Section continue to be met.
| ||||||
24 | Section 99. Effective date. This Act takes effect January | ||||||
25 | 1, 2014.".
|