(A) If the village elects to incur a removal cost pursuant to §§ 94.10, 94.11, 94.12, 94.13, or 94.14 with respect to an abandoned residential property, then that cost is a lien upon the underlying parcel of that abandoned residential property. This lien is superior to all other liens and encumbrances, except tax liens and as otherwise provided in this section.
(B) (1) To perfect a lien under this section, the village must, within one year after the cost is incurred for the activity, file notice of the lien in the office of the Recorder in the county in which the abandoned residential property is located or, if the abandoned residential property is registered under the Torrens system, in the office of the Registrar of Titles of that county, a sworn statement setting out:
(a) A description of the abandoned residential property that sufficiently identifies the parcel;
(b) The amount of the cost of the activity;
(c) The date or dates when the cost for the activity was incurred by the municipality; and
(2) If, for any abandoned residential property, the village engaged in any activity on more than one occasion during the course of one year, then the village may combine any or all of the costs of each of those activities into a single notice of lien.
(C) To enforce a lien pursuant to this section, the village must maintain contemporaneous records that include, at a minimum:
(1) A dated statement of finding by the village that the property for which the work is to be performed has become abandoned residential property, which shall include:
(a) The date when the property was first known or observed to be unoccupied by any lawful occupant or occupants;
(b) A description of the actions taken by the village to contact the legal owner or owners of the property identified on the recorded mortgage, or, if known, any agent of the owner or owners, including the dates such actions were taken; and
(c) A statement that no contacts were made with the legal owner or owners or their agents as a result of such actions;
(2) A dated certification by an authorized official of the village of the necessity and specific nature of the work to be performed;
(3) A copy of the agreement with the person or entity performing the work that includes the legal name of the person or entity, the rate or rates to be charged for performing the work, and an estimate of the total cost of the work to be performed;
(4) Detailed invoices and payment vouchers for all payments made by the village for such work; and
(5) A statement as to whether the work was engaged through a competitive bidding process, and if so, a copy of all proposals submitted by the bidders for such work.
(D) A lien under this section shall be enforceable exclusively at the hearing for confirmation of sale of the abandoned residential property that is held pursuant to ILCS Ch. 735, Act 5, § 15-1508(b) and shall be limited to a claim of interest in the proceeds of the sale and subject to the requirements of this section. Any mortgagee who holds a mortgage on the property, or any beneficiary or trustee who holds a deed of trust on the property, may contest the lien or the amount of the lien at any time during the foreclosure proceeding upon motion and notice in accordance with court rules applicable to motions generally. Grounds for forfeiture of the lien or the superior status of the lien granted by division (A) above shall include, but not be limited to, a finding by the court that:
(1) The village has not complied with divisions (B) and (C) above;
(2) The scope of the work was not reasonable under the circumstances;
(4) The cost of the services rendered or materials provided was not commercially reasonable. Forfeiture of the superior status of the lien otherwise granted by this section shall, not constitute a forfeiture of the lien as a subordinate lien.
(E) Upon payment of the amount of a lien filed under this section by the mortgagee, servicer, owner, or any other person, the village shall release the lien, and the release may be filed of record by the person making such payment at the person's sole expense as in the case of filing notice of lien.
(1) The mortgagee or servicer of the abandoned residential property has provided notice to the village that the mortgagee or servicer has performed or will perform the remedial actions specified in the notice that the village otherwise might perform pursuant to §§ 94.10, 94.11, 94.12, 94.13, or 94.14 provided that the remedial actions specified in the notice have been performed or are performed or initiated in good faith within 30 days of such notice; or
(2) The village has provided notice to the mortgagee or servicer of a problem with the property requiring the remedial actions specified in the notice that the village otherwise would perform pursuant to §§ 94.10, 94.11, 94.12, 94.13, or 94.14, and the mortgagee or servicer has performed or performs or initiates in good faith the remedial actions specified in the notice within 30 days of such notice.
(G) This section shall apply only to activities performed, costs incurred, and liens filed after the effective date of this amendatory Act of the 96th General Assembly.
(H) For the purposes of this section the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ABANDONED RESIDENTIAL PROPERTY. Any type of permanent residential dwelling unit, including detached single family structures, and townhouses, condominium units and multifamily rental apartments covering the entire property, and manufactured homes treated under Illinois law as real estate and not as personal property, that has been unoccupied by any lawful occupant or occupants for at least 90 days, and for which after such 90-day period, the village has made good faith efforts to contact the legal owner or owners of the property identified on the recorded mortgage, or, if known, any agent of the owner or owners, and no contact has been made. A property for which the village has been given notice of the order of confirmation of sale pursuant to ILCS Ch. 735, Act 5, § 15-1508(b-10) shall not be deemed to be an abandoned residential property for the purposes of this section.
MERS PROGRAM. The nationwide Mortgage Electronic Registration System approved by Fannie Mae, Freddie Mac, and Ginnie Mae that has been created by the mortgage banking industry with the mission of registering every mortgage loan in the United States to lawfully make information concerning each residential mortgage loan and the property securing it available by Internet access to mortgage originators, servicers, warehouse lenders, wholesale lenders, retail lenders, document custodians, settlement agents, title companies, insurers, investors, county recorders, units of local government, and consumers.
(I) Any entity or person who performs a removal, securing, or enclosing activity pursuant to the authority of a village under this section may, in its, his, or her own name, file a lien pursuant to division (B) above and appear in a foreclosure action on that lien pursuant to division (D) of this section in the place of the village, provided that the village shall remain subject to division (C) above, and. such party shall be subject to all of the provisions in this section as if such party were the village.
(J) All amounts received by the village for costs incurred pursuant to this section for which the village has been reimbursed under Section 7.31 of the Illinois Housing Development Act shall be remitted to the State Treasurer for deposit into the Abandoned Residential Property Municipality Relief Fund.
(Ord. 2718, passed 5-16-11)