Bill Text: IL HB3307 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Mortgage Foreclosure Law of the Code of Civil Procedure. Requires receivers of mortgaged real estate to use reasonable efforts to make repairs and improvements as necessary to comply with building, housing, or other similar codes that necessary for the safety, accessibility, and habitability of residential real estate. Creates the Residential Real Estate Ombudsperson Program of which the purpose is to ensure that tenants of residential real estate in receivership continue to have safe, habitable, and accessible homes throughout the receivership process and to facilitate communication between tenants, the receiver, and the court. Requires that in courts in counties of 50,000 or more residents must establish such a program, and in courts in counties of less than 50,000 residents may establish such a program. Provides for the powers of the Ombudsperson to include, but not be limited to, (i) taking, investigating, and making recommendations and reports of complaints of inadequate performance receivership duties relating to matters that may adversely affect the health, safety, welfare, or rights of tenants; (ii) entering the property under receivership at a reasonable time and with reasonable notice to the receiver or receiver's manager; (iii) communicating privately with tenants who consent to that communication; (iv) encouraging the facilitation of communication between receivers, tenants, and the court; (v) making recommendations to receivers regarding building conditions and court practices; (vi) submitting reports to the court regarding the status of the residential real estate, the receivership relationship, the use of the Ombudsperson services; and (vii) making recommendations to the court to improve the receivership relationship. Requires the Ombudsperson within 60 days of appointment to send a notice of contact information of the Ombudsperson to all known dwelling occupants of residential real estate through by posting a written notice on unit doors and in common areas. Effective January 1, 2026.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2026-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3307 Detail]

Download: Illinois-2025-HB3307-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3307 Introduced , by Rep. Kelly M. Cassidy SYNOPSIS AS INTRODUCED:
735 ILCS 5/15-1704 from Ch. 110, par. 15-1704
Amends the Mortgage Foreclosure Law of the Code of Civil Procedure. Requires receivers of mortgaged real estate to use reasonable efforts to make repairs and improvements as necessary to comply with building, housing, or other similar codes that necessary for the safety, accessibility, and habitability of residential real estate. Creates the Residential Real Estate Ombudsperson Program of which the purpose is to ensure that tenants of residential real estate in receivership continue to have safe, habitable, and accessible homes throughout the receivership process and to facilitate communication between tenants, the receiver, and the court. Requires that in courts in counties of 50,000 or more residents must establish such a program, and in courts in counties of less than 50,000 residents may establish such a program. Provides for the powers of the Ombudsperson to include, but not be limited to, (i) taking, investigating, and making recommendations and reports of complaints of inadequate performance receivership duties relating to matters that may adversely affect the health, safety, welfare, or rights of tenants; (ii) entering the property under receivership at a reasonable time and with reasonable notice to the receiver or receiver's manager; (iii) communicating privately with tenants who consent to that communication; (iv) encouraging the facilitation of communication between receivers, tenants, and the court; (v) making recommendations to receivers regarding building conditions and court practices; (vi) submitting reports to the court regarding the status of the residential real estate, the receivership relationship, the use of the Ombudsperson services; and (vii) making recommendations to the court to improve the receivership relationship. Requires the Ombudsperson within 60 days of appointment to send a notice of contact information of the Ombudsperson to all known dwelling occupants of residential real estate through by posting a written notice on unit doors and in common areas. Effective January 1, 2026.
LRB104 10531 JRC 20607 b
A BILL FOR
HB3307 LRB104 10531 JRC 20607 b
AN ACT concerning civil law.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Code of Civil Procedure is amended by
changing Section 15-1704 as follows:
(735 ILCS 5/15-1704) (from Ch. 110, par. 15-1704)
Sec. 15-1704. Receivers.
(a) Receiver. Notwithstanding the provisions of
subsections (b), (c) and (d) of Section 15-1701, and except as
provided in Section 15-1702, upon request of any party and a
showing of good cause, the court shall appoint a receiver for
the mortgaged real estate.
(b) Powers. A receiver appointed pursuant to this Article
shall have possession of the mortgaged real estate and other
property subject to the mortgage during the foreclosure, shall
have full power and authority to operate, manage and conserve
such property, and shall have all the usual powers of
receivers in like cases. Without limiting the foregoing, a
receiver shall have the power and authority to:
(1) secure tenants and execute leases for the real
estate, the duration and terms of which are reasonable and
customary for the type of use involved, and such leases
shall have the same priority as if made by the owner of the

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real estate; but, unless approved by the Court, the
receiver shall not execute oil, gas or other mineral
leases, or (even if otherwise allowed by law) leases
extending beyond the time of the receiver's possession;
provided, however, with respect to residential real estate
leased by the receiver, nothing in this Section shall
affect the legal rights of any lessee with respect to the
safety, and habitability, and accessibility of the
residential real estate;
(2) collect the rents, issues and profits from the
mortgaged real estate;
(3) insure the mortgaged real estate against loss by
fire or other casualty;
(4) employ counsel, custodians, janitors and other
help; and
(5) pay taxes which may have been or may be levied
against the mortgaged real estate.
(c) Duties. A receiver appointed pursuant to this Article
must manage the mortgaged real estate as would a prudent
person, taking into account the effect of the receiver's
management on the interest of the mortgagor. A receiver may,
without an order of the court, delegate managerial functions
to a person in the business of managing real estate of the kind
involved who is financially responsible, not related to the
mortgagee or receiver and prudently selected. However, the
receiver shall remain responsible to the mortgagor or other

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persons for the acts or omissions of such management agent.
When fees are paid to such a management agent, the receiver's
fees may be adjusted to the extent the court deems
appropriate. In managing the mortgaged real estate and other
property subject to the mortgage, a receiver or receiver's
delegate, to the extent the receiver receives sufficient
receipts from the mortgaged real estate, such other property
or other sources, except to the extent ordered otherwise by
the court:
(1) shall maintain the existing casualty and liability
insurance required in accordance with the mortgage or
applicable to the real estate and other property subject
to the mortgage at the time the receiver took possession;
(2) shall use reasonable efforts to maintain the real
estate and other property subject to the mortgage in at
least as good condition as existed at the time the
receiver took possession, excepting reasonable wear and
tear and damage by any casualty, and shall use reasonable
efforts to make repairs and improvements as necessary to
comply with building, housing, or other similar codes
necessary for the safety, accessibility, and habitability
of residential real estate;
(2.5) shall accept all rental payments from an
occupant of the mortgaged property, and any payments from
a third party or any rental assistance program in support
of an occupant's housing;

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(3) shall apply receipts to payment of ordinary
operating expenses, including royalties, rents and other
expenses of management;
(4) shall pay any shared or common expense assessments
due to any association of owners of interests in real
estate to the extent that such assessments are or may
become a lien against the mortgaged real estate;
(5) may pay the amounts due under any mortgage if the
mortgagee thereof is not a party in the foreclosure;
(6) may carry such additional casualty and liability
insurance as is reasonably available and reasonable as to
amounts and risks covered;
(7) may make other repairs and improvements necessary
to comply with building, housing, and other similar codes
or with existing contractual obligations affecting the
mortgaged real estate;
(8) may hold receipts as reserves reasonably required
for the foregoing purposes; and
(9) may take such other actions as may be reasonably
necessary to conserve the mortgaged real estate and other
property subject to the mortgage, or as otherwise
authorized by the court.
(d) Allocation of Receipts. Receipts received from
operation of the real estate and other property subject to the
mortgage by the receiver shall be applied in the following
order of priority.

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(1) to reimbursement of the receiver for all
reasonable costs and expenses incurred by the receiver or
the receiver's delegates;
(2) to payment of insurance premiums authorized in
paragraph (1) of subsection (c) of Section 15-1704;
(3) to payment of the receiver's delegates of any
reasonable management fees for managing real estate of the
type involved;
(4) to payment of receiver's fees allowed by the
court;
(5) to payment of expenses authorized in paragraphs
(2), (3) and (4) of subsection (c) of Section 15-1704;
(6) to payment of amounts authorized in paragraph (5)
of subsection (c) of Section 15-1704;
(7) to payment of expenses authorized in paragraphs
(6) and (7) of subsection (c) of Section 15-1704; and
(8) the balance, if any, shall be held or disbursed as
ordered by the court.
(e) Non-Liability for Allocations. A receiver shall in no
event be liable to any person for the allocation of, or failure
to allocate, receipts to possible expenditures within the same
priority category.
(f) Notice to occupants.
(1) Following an order appointing a receiver pursuant
to Section 15-1704, but no later than 21 days after the
entry of such order, the appointed receiver shall make a

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good faith effort to ascertain the identities and
addresses of all occupants of dwelling units of the
mortgaged real estate.
(2) Following an order appointing a receiver pursuant
to Section 15-1704, but no later than 21 days after the
entry of such order, the appointed receiver shall notify
all known occupants of dwelling units of the mortgaged
real estate that the receiver has been appointed receiver
of the mortgaged real estate. Such notice shall be in
writing and shall:
(i) identify the occupant being served by the name
known to the receiver;
(ii) inform the occupant that the mortgaged real
estate at which the dwelling unit is located is the
subject of a foreclosure action and that control of
the mortgaged real estate has changed;
(iii) provide the name, address, and telephone
number of the individual or entity whom occupants may
contact with concerns about the mortgaged real estate
or to request repairs of that property;
(iv) include the following language, or language
that is substantially similar: "This is NOT a notice
to vacate the premises. You may wish to contact a
lawyer or your local legal aid or housing counseling
agency to discuss any rights that you may have.";
(v) include the name of the case, the case number,

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and the court where the foreclosure action is pending;
and
(vi) provide instructions on the method of payment
of future rent, if applicable.
(3) The written notice required by item (2) of this
subsection (f) shall be served by delivering a copy
thereof to the known occupant, or by leaving the same with
some person of the age of 13 years or upwards, who is
residing on or in possession of the premises; or by
sending a copy of the notice to the known occupant by
first-class mail, addressed to the occupant by the name
known to the receiver.
(4) In the event that a receiver ascertains the
identity and address of an occupant of a dwelling unit of
the mortgaged real estate more than 21 days after
appointment pursuant to Section 15-1704, the receiver
shall provide the notice required by item (2) of this
subsection (f) within 7 days of ascertaining the identity
and address of the occupant.
(5)(i) A receiver who fails to comply with items (1),
(2), (3), and (4) of this subsection (f) may not collect
any rent due and owing from a known occupant, or terminate
a known occupant's tenancy for non-payment of such rent,
until the receiver has served the notice described in item
(2) of this subsection (f) upon the known occupant. After
providing such notice, the receiver may collect any and

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all rent otherwise due and owing the receiver from the
known occupant and may terminate the known occupant's
tenancy for non-payment of such rent if the receiver
otherwise has such right to terminate.
(ii) An occupant who previously paid rent for the
current rental period to the mortgagor, or other entity
with the authority to operate, manage, and conserve the
mortgaged real estate at the time of payment, shall not be
held liable for that rent by the receiver, and the
occupant's tenancy shall not be terminated for non-payment
of rent for that rental period.
(6) Within 21 days of appointment, the receiver shall
post a written notice on the primary entrance of each
dwelling unit subject to the foreclosure action that
informs occupants that the receiver has been appointed to
operate and manage the property. This notice shall:
(i) inform occupant that the dwelling unit is the
subject of a foreclosure action and that control of
the mortgaged real estate has changed;
(ii) include the following language: "This is NOT
a notice to vacate the premises.";
(iii) provide the name, address, and telephone
number of the individual or entity whom occupants may
contact with concerns about the mortgaged real estate
or to request repairs of the property; and
(iv) provide instructions on the method of payment

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of future rent, if applicable.
(7)(i) The provisions of item (5) of this subsection
(f) shall be the exclusive remedy for the failure of a
receiver to provide notice to a known occupant under this
Section.
(ii) This Section shall not abrogate any right that a
receiver may have to possession of the mortgaged real
estate and to maintain a proceeding against an occupant of
a dwelling unit for possession under Article IX of this
Code or subsection (h) of Section 15-1701.
(g) Increase of rents. Notwithstanding any other provision
of this Article, a receiver shall not charge an occupant of the
mortgaged real estate a rental amount above that which the
occupant had been paying for use and occupancy of the
mortgaged real estate prior to the appointment of a receiver
without leave of court. The court may allow an increase of rent
if, upon motion by the receiver, the court finds by a
preponderance of the evidence, that the increase of rent is
necessary to operate, manage, and conserve the mortgaged real
estate pursuant to this Section. A list of the current rents
for each unit in the mortgaged real estate, and a list of the
proposed rent increase for each of those units, must be
attached to a motion for a rent increase under this subsection
(g). All occupants of the mortgaged real estate who may be
affected by the motion for a rent increase, if not otherwise
entitled to notice, shall be notified in writing of the nature

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of the motion, the date and time of the motion, and the court
where the motion will be heard. Such notice shall be by
personal service or first-class mail. In the event that the
receiver and an occupant of a dwelling unit agree to a rent
increase for that dwelling unit, the receiver is excused from
the requirements of this subsection (g) as to that dwelling
unit. Nothing in this subsection (g) shall alter the terms of
any lease agreement.
(h) Removal. The court may remove a receiver upon a
showing of good cause, in which case a new receiver may be
appointed in accordance with subsection (b) of Section 15-1702
and subsection (a) of Section 15-1704.
(i) Residential Real Estate Ombudsperson Program. The
purpose of the Residential Real Estate Ombudsperson Program is
to ensure that tenants of residential real estate in
receivership continue to have safe, habitable, and accessible
homes throughout the receivership process and to facilitate
communication between tenants, the receiver, and the court. It
is the policy of this State to facilitate availability of
residential real estate through effective receivership and to
ensure that tenants' rights to safe, habitable, and accessible
living is accomplished by providing communication and advocacy
services for tenants of residential real estate during the
receivership.
(1) Residential Real Estate Ombudsperson Program.
Courts in counties of 50,000 or more residents shall, and

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courts of other counties may, establish a Residential Real
Estate Ombudsperson Program in which a Residential Real
Estate Ombudsperson is appointed to effectuate this Act.
Courts may establish this program using existing staff or
new resources. Courts may include in this program
receiverships of residential real estate established by
municipal request under Section 11-31-2 of the Illinois
Municipal Code.
(2) Powers of Residential Real Estate Ombudsperson.
Residential Real Estate Ombudspersons are authorized to:
(A) outline the rights and abilities for tenants
to contact the Ombudsperson program on the court
website;
(B) display name and public registered agents of
all active receivers of residential real estate on the
court's website;
(C) ensure that contact information of receiver,
any receiver-hired management company, as well as
emergency maintenance information, is sent to and
accessible to all current and future tenants of
residential real estate under receivership;
(D) take, investigate, and make recommendations
and reports of complaints of inadequate performance by
a receiver on any matters that may adversely affect
the health, safety, welfare, or rights of tenants,
whether these complaints are from tenants, tenant

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associations, municipal building departments, or
otherwise discovered;
(E) enter the property under receivership at a
reasonable time with reasonable notice to receiver or
receiver's manager;
(F) communicate privately with tenants who consent
to that communication;
(G) encourage the facilitation of communication
between receivers, tenants, and the court, including
timelines for improvements to building conditions,
court hearings, schedules for receiverships, and
estimated timelines for the end of the receivership;
(H) make recommendations to receivers regarding
building conditions and court practices;
(I) submit reports to the court regarding the
status of the residential real estate, the
receivership relationship, the use of the Ombudsperson
services, and may include statements from tenants,
receivers, municipal officials and employees,
witnesses, and managers pertinent to the status of the
receivership relationship; and
(J) make recommendations to the court to improve
the receivership relationship, including but not
limited to, a request to discharge a receiver and
replace that receiver for good cause as provided in
this Section.

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(3) Notice to tenants. Within 60 days of appointment,
receivers shall send notice of contact information of an
Ombudsperson to all known dwelling occupants by posting a
written notice on unit doors and in common areas. The
notice may be combined with a notice required in paragraph
(2) of subsection (f). This notice shall include the
following text:
"The responsibilities and powers of receivers of
residential real estate in Illinois are outlined in
Section 15-1704 of the Mortgage Foreclosure Law and
include managing the property on behalf of the [Insert
County] Court for the purpose of future sale while
protecting tenants' rights to safe, habitable, and
accessible dwelling units during the receivership period.
The court has established an Ombudsperson program to
ensure that receiver is meeting these obligations. If you
believe your receiver is not meeting those obligations
after a good faith effort to work with the receiver or
receiver's management company, you may contact the
Ombudsperson.
[Contact information for Ombudsperson]".
(Source: P.A. 98-514, eff. 11-19-13.)
Section 99. Effective date. This Act takes effect January
1, 2026.