Legislative Update: 2024 Spring Session

Mon, June 17, 2024 8:46 AM | Nina Vidmer (Administrator)

The Illinois General Assembly just recently finished the 2024 Spring session with the passage of 422 of the over 6000 bills filed in both the Senate and House.

Once again, the Advocacy Committee went through an extensive bill review process throughout the session to identify all issue-relevant bills. Through a number of legislative review meetings, the committee identified 59 bills applicable to real estate lawyers. These bills were discussed and debated, positions taken (support, oppose, neutral), lobbied, and tracked.

We were able to share those positions with legislative leaders, committee chairs, bill sponsors, and relevant stakeholders through our lobbyist. And, once again, we were able to ensure there was no legislation passed that would negatively impact members, including any Title Insurance Act reforms.

As to title reform efforts, large stakeholder meetings were held during the final months of 2023 and beginning months of 2024. Those meetings included IRELA members and representatives from the Illinois Land Title Association (ILTA), Office of the Attorney General, Illinois Department of Professional Regulation, Illinois State Bar Association, and others. 

The beginning of session saw the filing of competing reform bills in the form of HB 4941 (ILTA) and HB 4555 (PNTN). Despite efforts to find consensus on these bills, none was reached, and these bills did not advance to passage.

As to other relevant bills we reviewed, there were five bills IRELA was tracking which passed. They include the following:

HB 5502 – As originally filed, this bill prohibited the resell of any real estate purchased for renovation and resale within six months of purchase. IRELA’s lobbyist engaged the sponsor on understanding the intent and purpose of this language.

The sponsor then decided to change this bill to prevent a condominium association from exercising any right of first refusal, option to purchase, or right to disapprove a sale for a discriminatory or other unlawful purpose. It provides a private right of action for any aggrieved person in State circuit court against the condominium association.

The bill is on the Governor’s desk awaiting his signature.

SB 2601 – This bill requires every landlord to disclose, in writing, whether a property is in a FEMA 100-year floodplain before the signing of a lease or renewal. The landlord is also required to disclose any actual knowledge of flooding of that property or parking area, and the frequency of that flooding.

Specific to lower-level units, the landlord is required to disclose whether a lower-level unit has experienced any flooding in the last 10 years, and the frequency of that flooding.

Flooding is defined as a general or temporary condition of partial or complete inundation of a dwelling or property caused by:

  • (1)   the overflow of inland or tidal waves;
  • (2)   the unusual and rapid accumulation of runoff or surface waters from any established water source such as a river, stream, or drainage ditch; or
  • (3)   rainfall.

If any landlord fails to comply with the required disclosure, the tenant may terminate the lease and receive all advance rent and fees paid. If there is failure to disclose and flooding occurs which results in damage, the tenant may bring a private right of action to receive the cost of damaged or lost personal property.

The bill is on the Governor’s desk awaiting his signature.

Important to note, the sponsor had a companion bill, SB 2602, which would have required a landlord to maintain flood insurance if leasing any lower-level that flooded at least once in the last 10 years. That insurance would need to cover the personal property of the tenant. IRELA’s lobbyist engaged the sponsor and other like-minded stakeholders regarding the association’s opposition to this bill. The sponsor decided not to move forward with the bill.

SB 2740 – This bill went through a number of helpful changes before its final passage. Originally, the bill required a condominium board of managers to adopt a policy that a disabled unit owner who requires an accessible parking space has access to the building. Also, if an ownwer of an accessible parking space was unable to sell that space, the association was required to purchase the parking space at fair market value and ensure the space was made available to disabled persons.

In the end, the bill required a condominium board of managers to adopt a policy with procedures for disabled unit owner to submit a request for an accessible parking space, and review that request within 45 days. The board shall make reasonable efforts to provide for accessible parking when the association does not own or control parking that meets the needs of the disabled unit owner. It further requires any new construction or conversion of a condominium must ensure all accessible parking spaces remain common elements. Renting or selling of the accessible parking spaces to non-disabled owners is allowed, but a disabled owner has priority and the non-disabled owner must stop using the common element space upon the board approval of a request by a disabled owner for accessible parking.

This bill is still awaiting being sent to the Governor for signature.

SB 2919 – IRELA’s lobbyist engaged the sponsor of this bill and attended multiple stakeholder meetings to monitor its progression. The bill allows for a judicial sale through the engagement of a third party online sale provider by the sheriff. The mortgagee in a foreclosure may request this type of sale. The notice of sale shall include whether the sale will take place online, in person, or both. If online, the website for online bidding must be included. Bidding for residential real estate must be held open for up to three days, but may be extended to allow for all active competitive bidding to occur. Bidding shall be open to everyone for the entire duration of the bidding period. The sheriff may charge additional reasonable fees for costs associated with the online sale. The purchaser must provide the sale deposit and balance due to the sheriff at least 24 hours after the end of the sale.

This bill is still awaiting being sent to the Governor for signature.

SB 3551 – This bill allows for “shared appreciation agreements.” Shared appreciation agreements are defined as a writing evidencing a transaction or any option, future, or any other derivative between a person and a consumer where the consumer receives money or any other items of value in exchange for an interest or future interest in a dwelling or residential real estate or a future obligation to repay a sum on the occurrence of an event, such as:

  • (1)   the transfer of ownership;
  • (2)   a repayment maturity date;
  • (3)   the death of the consumer; or
  • (4)   any other event contemplated by the writing.

The borrower shall be provided counseling before taking any legally binding action on a shared appreciation agreement. The borrower cannot waive this counseling.

This bill is still awaiting being sent to the Governor for signature.

While we have gotten past the regular Spring session, the current General Assembly will be back for a few weeks for the fall Veto session on November 12-14 and November 19-21. They will return again for a Lame Duck session before the new General Assembly is sworn in on January 8, 2025. This means there will be more opportunity for some bills already filed to be resurrected and new bills to be filed we have not yet seen.

This opportunity for more action could include legislation on title reform from ILTA. On June 6, ILTA hosted a title reform stakeholder meeting in which it notified participants it would be working on preparing a new version of this bill to be ready for review this summer. IRELA members attended and advocated for its members. The Advocacy committee will continue its work to protect Illinois real estate lawyers on this and other issues.

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