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Public Act 098-0789 Public Act 0789 98TH GENERAL ASSEMBLY |
Public Act 098-0789 | SB0336 Enrolled | LRB098 04615 HLH 34643 b |
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| AN ACT concerning revenue.
| Be it enacted by the People of the State of Illinois, | represented in the General Assembly:
| Section 5. The Property Tax Code is amended by adding | Section 15-174 as follows: | (35 ILCS 200/15-174 new) | Sec. 15-174. Community stabilization assessment freeze | pilot program. | (a) Beginning January 1, 2015 and ending June 30, 2029, the | chief county assessment officer of any county may reduce the | assessed value of improvements to residential real property in | accordance with subsection (b) for 10 taxable years after the | improvements are put in service, if and only if all of the | following factors have been met: | (1) the improvements are residential; | (2) the parcel was purchased or otherwise conveyed to | the taxpayer after January 1 of the taxable year and that | conveyance was not a tax sale as required under the | Property Tax Code; | (3) the parcel is located in a targeted area; | (4) for single family homes, the taxpayer occupies the | improvements on the parcel as his or her primary residence; | for residences of one to 6 units that will not be |
| owner-occupied, the taxpayer replaces 2 primary building | systems as outlined in this Section; | (5) the transfer from the holder of the prior mortgage | to the taxpayer was an arm's length transaction, in that | the taxpayer has no legal relationship to the holder of the | prior mortgage; | (6) an existing residential dwelling structure of no | more than 6 units on the parcel was unoccupied at the time | of conveyance for a minimum of 6 months, or the parcel was | ordered by a court of competent jurisdiction to be | deconverted in accordance with the provisions governing | distressed condominiums as provided in the Condominium | Property Act; | (7) the parcel is clear of unreleased liens and has no | outstanding tax liabilities attached against it; and | (8) the purchase price did not exceed the Federal | Housing Administration's loan limits then in place for the | area in which the improvement is located. | To be eligible for the benefit
conferred by this Section, | residential units must (i) meet local building codes, or if | there are no local building codes, Housing Quality Standards, | as determined by the U.S. Department of Housing and Urban | Development from time to time and (ii) be owner-occupied or in | need of substantial rehabilitation. "Substantial | rehabilitation" means, at a minimum, compliance with local | building codes and the replacement or renovation of at least 2
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| primary building systems. Although the cost of each primary | building system may vary, the combined expenditure for making | the building compliant with local codes and replacing primary | building systems must be at least $5 per square foot, adjusted | by the Consumer Price Index for All Urban Consumers, as | published annually by the U.S. Department of Labor. "Primary | building systems", together with their related | rehabilitations, specifically approved for this program are: | (1) Electrical. All electrical work must comply with | applicable codes; it may consist of a combination of any of | the following alternatives: | (A) installing individual equipment and appliance | branch circuits as required by code (the minimum being | a kitchen appliance branch circuit); | (B) installing a new emergency service, including | emergency lighting with all associated conduits and
| wiring; | (C) rewiring all existing feeder conduits ("home | runs") from the main switchgear to apartment area
| distribution panels; | (D) installing new in-wall conduits for | receptacles, switches, appliances, equipment, and
| fixtures; | (E) replacing power wiring for receptacles, | switches, appliances, equipment, and fixtures; | (F) installing new light fixtures throughout the |
| building including closets and central areas; | (G) replacing, adding, or doing work as necessary | to bring all receptacles, switches, and other
| electrical devices into code compliance; | (H) installing a new main service, including | conduit, cables into the building, and main disconnect
| switch; and | (I) installing new distribution panels, including | all panel wiring, terminals, circuit breakers, and all
| other panel devices. | (2) Heating. All heating work must comply with | applicable codes; it may consist of a combination of any of | the following alternatives: | (A) installing a new system to replace one of the | following heat distribution systems: (i) piping and | heat radiating units, including new main line venting | and radiator venting; or (ii) duct work, diffusers, and | cold air returns; or (iii) any other type of existing | heat distribution and radiation/diffusion components; | or | (B) installing a new system to replace one of the | following heat generating units: (i) hot water/steam | boiler; (ii) gas furnace; or (iii) any other type of | existing heat generating unit. | (3) Plumbing. All plumbing work must comply with | applicable codes. Replace all or a part of the in-wall
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| supply and waste plumbing; however, main supply risers, | waste stacks and vents, and code-conforming waste lines | need not be replaced. | (4) Roofing. All roofing work must comply with | applicable codes; it may consist of either of the following | alternatives, separately or in combination: | (A) replacing all rotted roof decks and | insulation; or | (B) replacing or repairing leaking roof membranes
| (10% is the suggested minimum replacement of | membrane);
restoration of the entire roof is an | acceptable substitute for membrane replacement. | (5) Exterior doors and windows. Replace the exterior | doors and windows. Renovation of ornate entry doors is an | acceptable substitute for replacement. | (6) Floors, walls, and ceilings. Finishes must be | replaced or covered over with new material. Acceptable | replacement or covering materials are as follows: | (A) floors must have new carpeting, vinyl tile, | ceramic, refurbished wood finish, or a similar
| substitute; | (B) walls must have new drywall, including joint | taping and painting; or | (C) new ceilings must be either drywall, suspended | type, or a similar substitute. | (7) Exterior walls. |
| (A) replace loose or crumbling mortar and masonry | with new material; | (B) replace or paint wall siding and trim as | needed; | (C) bring porches and balconies to a sound | condition; or | (D) any combination of (A), (B), and (C). | (8) Elevators. Where applicable, at least 4 of the | following 7 alternatives must be accomplished: | (A) replace or rebuild the machine room controls | and refurbish the elevator machine (or equivalent
| mechanisms in the case of hydraulic elevators); | (B) replace hoistway electro-mechanical items | including: ropes, switches, limits, buffers, levelers,
| and deflector sheaves (or equivalent mechanisms in the | case of hydraulic elevators); | (C) replace hoistway wiring; | (D) replace door operators and linkage; | (E) replace door panels at each opening; | (F) replace hall stations, car stations, and | signal fixtures; or | (G) rebuild the car shell and refinish the | interior. | (9) Health and safety. | (A) install or replace fire suppression systems; | (B) install or replace security systems; or |
| (C) environmental remediation of lead-based paint, | asbestos, leaking underground storage tanks, or radon. | (10) Energy conservation improvements undertaken to | limit the amount of solar energy absorbed by a building's | roof or to reduce energy use for the property, including | any of the following activities: | (A) installing or replacing reflective roof | coatings (flat roofs); | (B) installing or replacing R-38 roof insulation; | (C) installing or replacing R-19 perimeter wall | insulation; | (D) installing or replacing insulated entry doors; | (E) installing or replacing Low E, insulated | windows; | (F) installing or replacing low-flow plumbing | fixtures; | (G) installing or replacing 90% sealed combustion | heating systems; | (H) installing or replacing direct exhaust hot | water heaters; | (I) installing or replacing mechanical ventilation | to exterior for kitchens and baths; | (J) installing or replacing Energy Star | appliances; | (K) installing low VOC interior paints on interior | finishes; |
| (L) installing or replacing fluorescent lighting | in common areas; or | (M) installing or replacing grading and | landscaping to promote on-site water retention. | (b) For the first 7 years after the improvements are placed | in service, the assessed value of the improvements shall be | reduced by an amount equal to 90% of the difference between the | base year assessed value of the improvements and the assessed | value of the improvements in the current taxable year. The | property will continue to be eligible for the benefits under | this Section in the eighth and ninth taxable years after the | improvements are placed in service, calculated as follows, if | and only if all of the factors in subsection (a) of this | Section continue to be met: in the eighth taxable year, the | assessed value of the improvements shall be reduced by an | amount equal to 65% of the difference between the base year | assessed value of the improvements and the assessed value of | the improvements in the current taxable year, and in the ninth | taxable year, the assessed value of the improvements shall be | reduced by an amount equal to 35% of the difference between the | base year assessed value of the improvements and the assessed | value of the improvements in the current taxable year. The | benefit will cease in the tenth taxable year. | (c) In order to receive benefits under this Section, in | addition to any information required by the chief county | assessment officer, the taxpayer must also submit the following |
| information to the chief county assessment officer for review: | (1) the owner's name; | (2) the postal address and permanent index number of | the parcel; | (3) a deed or other instrument conveying the parcel to | the current owner; | (4) evidence that the purchase price is within the | Federal Housing Administration's loan limits for the area | in which the improvement is located; | (5) certification that the parcel was unoccupied at the | time of conveyance to the current owner for a minimum of at | least 6 months; | (6) evidence that the parcel is clear of unreleased | liens and has no outstanding tax liabilities attached | against it; | (7) evidence that the improvements meet local building | codes, or if there are no local building codes, Housing | Quality Standards, as determined by the U.S. Department of | Housing and Urban Development from time to time, which may | be shown by a certificate of occupancy issued by the | appropriate local government or the certification by a home | inspector licensed by the State of Illinois; and | (8) any additional information as reasonably required | by the chief county assessment officer. | (d) The chief county assessment officer shall notify the | taxpayer as to whether or not the parcel meets the requirements |
| of this Section. If the parcel does not meet the requirements | of this Section, the chief county assessment officer shall | provide written notice of any deficiencies to the taxpayer, who | will then have 14 days from the date of
notification to provide | supplemental information showing compliance with this Section. | If the taxpayer does not exercise this right to cure the | deficiency, or if the information submitted, in the sole | judgment of the chief county assessment officer, is | insufficient to meet the requirements of this Section, the
| chief county assessment officer shall provide a written | explanation of the reasons for denial. A taxpayer may | subsequently reapply for the benefit if the deficiencies are | cured at a later date, but no later than 2019. The chief county | assessment officer may charge a reasonable application fee to | offset the administrative expenses associated with the | program. | (e) The benefit conferred by this Section is limited as | follows: | (1) The owner is eligible to apply for the benefit | conferred by this Section beginning January 1, 2015 through | December 31, 2019. If approved, the reduction will be | effective for the current taxable year, which will be | reflected in the tax bill issued in the following taxable | year. | (2) The reduction outlined in this Section shall | continue for a period of 10 years, and may not be extended |
| or renewed for any additional period. | (3) At the completion of the assessment freeze period | described here, the entire parcel will be assessed as | otherwise provided in this Code. | (4) If there is a transfer of ownership during the | period of the assessment freeze, then the benefit conferred | by this Section shall not apply on or after the date of | that transfer unless (i) the property is conveyed by an | owner who does not occupy the improvements as a primary | residence to an owner who will occupy the improvements as a | primary residence and (ii) all requirements of this Section | continue to be met. | (f) If the taxpayer does not occupy or intend to occupy the | residential dwelling as his or her principal residence within a | reasonable time, as determined by the chief county assessment | officer, the taxpayer must: | (1) immediately secure the residential dwelling in | accordance with the requirements of this Section; | (2) complete sufficient rehabilitation to bring the | improvements into compliance with local building codes, | including, without limitation, regulations concerning | lead-based paint and asbestos remediation; and | (3) complete rehabilitation within 18 months of | conveyance. | (g) For the purposes of this Section, | "Base year" means the taxable year prior to the taxable |
| year in which the property is purchased by the eligible | homeowner. | "Secure" means that: | (1) all doors and windows are closed and secured | using secure doors, windows without broken or cracked | panes, commercial-quality metal security panels filled | with
like-kind material as the surrounding wall, or | plywood
installed and secured in accordance with local | ordinances; at least one building entrance shall be | accessible from the
exterior and secured with a door | that is locked to allow
access only to authorized | persons; | (2) all grass and weeds on the vacant residential
| property are maintained below 10 inches in height, | unless a
local ordinance imposes a lower height; | (3) debris, trash, and litter on any portion of the
| exterior of the vacant residential property is removed | in
compliance with local ordinance; | (4) fences, gates, stairs, and steps that lead to | the
main entrance of the building are maintained in a
| structurally sound and reasonable manner; | (5) the property is winterized when appropriate; | (6) the exterior of the improvements are | reasonably
maintained to ensure the safety of | passersby; and | (7) vermin and pests are regularly exterminated on |
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exterior and interior of the property. | "Targeted Area" means a distressed community that | meets the geographic, poverty, and unemployment criteria | for a distressed community set forth in 12 C.F.R. 1806.200. |
Effective Date: 1/1/2015
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