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[ back ] New Laws Affecting You2008Radon Awareness Act [Click here for Radon ABCs Pamphlet (supplemental information not required by the Act)] Public Act 95-210 The Illinois Radon Awareness Act becomes effective January 1, 2008. The provisions imposes additional duties on sellers. Before a buyer will become bound on a contract to purchase real estate the seller will be required to provide a pamphlet entitled Radon Testing Guidelines for Real Estate Transactions and the Illinois Disclosure of Information on Radon Hazards. The language of the disclosure is set forth by statute. The pamphlet will be provided by the Illinois Emergency Management Agency Division of Nuclear Safety. Nothing in the Act will require a seller to test for radon or to engage in “mitigation activities.” The Act excludes certain types of transactions: Transfers made pursuant to court order, transfers resulting from foreclosure, transfers by fiduciaries of estates, transfers among co-owners, transfers pursuant to testate or intestate succession, transfers made to a spouse or other “lineal” blood relative, transfers made by relocation companies (if the relocation company has the required documents from the original seller) and transfers to or from a governmental entity. Mercury Thermostats Public Act 95-452 Amends the Environmental Protection Act. Prohibits the installation of thermostats containing mercury in new construction beginning July 1, 2008. Prohibits the installation or sale of thermostats that contain mercury beginning July 1, 2010. Provides that, beginning July 1, 2008, thermostats that contain mercury must not be disposed of in a landfill or incinerated. Makes other changes. While the Act officially became effective August 27, 2007 it appears to have no impact until January 1, 2008. Tenant Protection in Foreclosures Public Act 95-262 becomes effective January 1, 2008. Amends the Code of Civil Procedure. Provides that, in a case of foreclosure where the tenant is current on his or her rent, any order of possession must allow the tenant to retain possession of the property covered in his or her rental agreement (i) for 120 days following the notice of the hearing on the supplemental petition that has been properly served upon the tenant, or (ii) through the duration of his or her lease, whichever is shorter. Provides that the exception for continued possession by the tenant only applies if the tenant continues to pay his or her rent in full during the 120-day period. Mobile Home Landlord Tenant Public Act 95-383 Amends the Mobile Home Landlord and Tenant Rights Act effective January 1, 2008. Provides that a park owner shall present a lease to prospective tenant at least one day before signing the lease. Provides that when a mobile home park is owned by an entity that is publicly traded on any national stock or securities exchange, then the following conditions apply: 1) a refund procedure for a lease or purchase agreement that a prospective tenant cancels within 3 days after signing the lease or purchase agreement; 2) if a tenant leaves the park because of a temporary illness or disability, the park owner shall allow qualified, including age in a park that has "housing for older persons", relatives designated by the tenant or the tenant's guardian to live in the home; 3) automatic lease renewal for 2 years unless certain requirements are met, such as a 30-day notice and a notice of reasons for the non-renewal of the lease; 4) the park owner is to give 12 months notice of a decision to close all or part of the park. Provides that a park owner may enter into a month-to-month rental agreement with a tenant if the agreement requires that there must be a rent increase notice given at least 90 days in advance of any increase and the tenant signs a statement that acknowledges that he or she wanted a shorter lease and was offered a longer lease. Provides a 90 day period following the effective date of the statutory changes to allow leases to be issued or modified in order to conform to the statutory changes. Provides for delivery of notices by first class mail. Provides that if the only change in a lease for a new term is the amount of the rent, the park owner may issue a rent increase notice, rather than issue a new lease. 2007Property Tax Sales - Registration Public Act 95-0537. In counties with less than 3,000,000 inhabitants, unless the county board provides otherwise, no person shall be eligible to bid who did not register with the county collector at least 10 business days prior to the first day of sale authorized under Section 21-115. The registration must be accompanied by a deposit in an amount determined by the county collector, but not to exceed $250 in counties of less than 50,000 inhabitants or $500 in all other counties, which must be applied to the amount due on the properties that the registrant has purchased. If the registrant cannot participate in the tax sale, then he or she may notify the tax collector, no later than 5 business days prior to the sale, of the name of the substitute person who will participate in the sale in the registrant's place, and an additional deposit is not required for any such substitute person. If the registrant does not attend the sale, then the deposit is forfeited to the Tax Sale Automation Fund established under Section 21-245. If the registrant does attend the sale and attempts, but fails, to purchase any parcels offered for sale, then the deposit must be refunded to the registrant. Effective August 28, 2007. Safe Homes-Domestic Violence Public Act 95-378 Amends the Safe Homes Act. In provisions authorizing tenants to request that a landlord change the locks if one or more of the tenants reasonably believes that one of the tenants or a member of tenant's household is under a credible imminent threat of domestic or sexual violence at the premises, deletes a requirement that the threat be from a person who is not a lessee under the lease. Requires a tenant requesting a change of locks because of a threat of violence from another lessee to include with the request a plenary order of protection or a plenary civil no contact order granting the tenant exclusive possession of the premises. Provides that a tenant who changes the locks shall make a good faith effort to give a key to the new locks to the landlord (instead of giving a key to the new locks to the landlord). Provides that "if the landlord changes the locks, the landlord shall make a good faith effort to give a key to the new locks to the tenant as soon as possible or not more than 48 hours of the locks being changed" and that a landlord who changes the locks and does not make a good faith effort to provide a copy of a key to the tenant within 48 hours of the landlord changing the locks is liable for any damages to the tenant incurred as a result of not having access to his or her unit. Effective August 23, 2007. Illinois Human Rights Act Public Act 95-42 Amends the Illinois Human Rights Act. Provides that the limitation under the housing exemptions apply to buildings of 4 or fewer units occupied by the owner (at present, a building with accommodations for not more than 5 families living independently of each other if the lessor or a member of his or her family resides in one dwelling unit). Provides that the listed exemptions for private sales of single family homes and for apartments do not apply to the publication of intent to engage in unlawful discrimination. Effective August 10, 2007. Minimum Wage Law Public Act 94-1072. From July 1, 2007 through June 30, 2008 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $7.50 per hour, and from July 1, 2008 through June 30, 2009 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $7.75 per hour, and from July 1, 2009 through June 30, 2010 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $8.00 per hour, and on and after July 1, 2010 every employer shall pay to each of his or her employees who is 18 years of age or older in every occupation wages of not less than $8.25 per hour. The new minimum wage will affect Wage Deduction limits, which are: (1) Based on Illinois minimum wage rates. You may only deduct (i) 15% of gross weekly wages or (ii) the amount by which disposable earnings for a week exceed the total of 45 times the minimum hourly wage prescribed by Section 4 of the Minimum Wage Law, whichever is greater. (2) Under federal law, the amount of wages that may be deducted is limited to the lesser of (i) 25% of disposable earnings for a week or (ii) the amount by which disposable earnings for a week exceed 30 times the federal minimum hourly wage. Allowable wage deduction limits may not exceed either criterion. Carbon Monoxide Detector Act Public Act 94-741. Every dwelling unit shall be equipped with at least one approved carbon monoxide alarm in an operating condition within 15 feet of every room used for sleeping purposes. Safe Homes Act Public Act 94-1038 (HB 4715) created the Safe Homes Act to put into Illinois law protections for tenants who are victims of domestic or sexual violence. The new law provides for an affirmative defense in an action brought to recover rent to a tenant that breaks a lease and leaves when the tenant is in under a credible imminent threat of domestic or sexual violence, or who has been a victim of sexual violence on the premises. However, the tenant must comply with certain notice and proof requirements at the time of vacating to access this defense. In terms of the changing of locks, the bill provides that if all of the tenants on a written lease request a change of locks because one or more of the tenants is under a credible imminent threat of domestic or sexual violence, the landlord must change the locks within 48 hours, or allow the tenants to do so. Landlords are allowed to charge a reasonable fee for the lock change. Mortgage Rescue Fraud Act Public Act 94-822 (SB 2349) creates a whole new Act in Illinois regulating the practice of "mortgage rescue." The Mortgage Rescue Fraud Act creates certain restrictions, requirements, and prohibitions in distressed property transactions. Violations of the Act are a felony and are also violations of the Consumer Fraud Act. By definition, this new law applies to those transactions where a distressed property is sold by the owner, and in the SAME transaction, the buyer reconveys the property, or option to buy the property, back to the seller. 2006Rent Payments at Business Office Public Act 94-2 Requires lessor to accept rent at their business office. If the lessor, or agent of the lessor, of residential real property, containing 100 or more residential units in either a single building or a complex of buildings, maintains a business office on the premises of the building or complex that has regularly scheduled office hours, then the lessor, or agent of the lessor, must accept rent payments from a lessee of any of those residential units at that business office during the regularly scheduled office hours and the lessor may not impose any penalty, fee, or charge for making rent payments in this manner that are otherwise considered timely under the lease, but the landlord may refuse to accept payment by cash when rent payments are made in this manner. Illinois Human Rights Act Rental Property Utility Service Act Public Act 93-994 amends the Rental Property Utility Service Act to make changes to the existing Rental Property Utility Service Act to clarify that if a landlord is required, under an oral or written lease, to pay for water, gas or electric service, the landlord shall pay for the services such that they are available throughout the term of the lease and are paid in a timely manner so as not to cause an interruption of service. The new law also provides that if the landlord does not comply with this obligation, then the tenant may terminate the lease or pursue other remedies already prescribed in the Act, which includes rent withholding. Response Time for Code
Violations Notice Regarding Breach
of Personal Info 2005Tenants’ Right to Repair Act Public Act 93-891 If a repair is required under a residential lease agreement or required under a law, administrative rule, or local ordinance or regulation, and the reasonable cost of the repair does not exceed the lesser of $500 or one-half of the monthly rent, the tenant may notify the landlord in writing by registered or certified mail or other restricted delivery service to the address of the landlord or an agent of the landlord as indicated on the lease agreement; if an address is not listed, the tenant may send notice to the landlord's last known address of the tenant's intention to have the repair made at the landlord's expense. If the landlord fails to make the repair within 14 days after being notified by the tenant as provided above or more promptly as conditions require in the case of an emergency, the tenant may have the repair made in a workmanlike manner and in compliance with the appropriate law, administrative rule, or local ordinance or regulation. Fair and Accurate Credit Transactions Act Beginning June 1, businesses with employees cannot throw out documents
containing workers' or customers' personal information without first destroying
them--they must be shredded, burned or otherwise made unreadable. Capital Gains A law recently signed by President Bush included a provision amending Capital gains as it pertains to 1031 exchange properties that are converted to primary residences. As we all know by now, any personal primary residence that has been lived in by the owner for at least two years and then sold qualifies for a $250,000 deduction from any capital gains ($500,000 for a married couple) that are due on profits made in the transaction. Investors have used this law as a vehicle to escape cap gains on income property by converting a rental acquired through a 1031 exchange to a primary residence and then selling it as such 24 months later, thus pocketing the very significant gains generated by our explosively increasing market place. Under the new law, if an owner acquires a property through a 1031 exchange (which can only be used for income producing properties) and then converts the rental property to his primary residence, that person would then have to hold the property for at least five years from the time of the close of the 1031 before being able to sell it and take advantage of the capital gains exclusion. While the entire loophole has not been removed, it definitely has increased the time the investor/owner will have to wait in order to realize such a significant tax savings on properties he or she has owned for less than three years. In addition to the extended time now required it is well to remember that Internal Revenue Code 121 specifies that rental depreciation deducted after May 6, 1997, shall be "recaptured" when the property is sold. Of course "recaptured" means being taxed for us ordinary taxpayers! With the hefty profits many have been receiving in the past five or so years this will not seem like much to give back, but as the market and appreciation begins to slow down it might be well to calculate the total picture before making investments based upon this premise. This new law in no way effects the two-year requirement for moving from residence to residence - at least for now! There has been talk of taking that entitlement away from homeowners but thus far it is still in place. 2004Fair and Accurate Credit Transactions Act Consumers will have the right to see their numerical credit score and gain access to additional credit information under new federal credit reporting legislation. The Fair and Accurate Credit Transactions Act of 2003 was signed by President Bush on December 4, 2003. The legislation helps protect consumers from identity theft and establishes national credit reporting standards. The bill also requires creditors to notify consumers when negative information is added to their credit files, disclose contact information for credit furnishers, and provide consumers with one free credit report annually (http://www.annualcreditreport.com). 2003Servicemembers Civil Relief Act On 19 December 2003, President Bush signed into law the Servicemembers Civil Relief Act (SCRA). This law is a complete revision of the Soldiers and Sailors Civil Relief Act (SSCRA). The SSCRA provided a number of significant protections to servicemembers. These include: staying court hearings if military service materially affects servicemembers’ ability to defend their interests; reducing interest to 6% on pre-service loans and obligations; requiring court action before a servicemember’s family can be evicted from rental property for nonpayment of rent if the monthly rent is $1,200 or less; termination of a pre-service residential lease; and allowing servicemembers to maintain their state of residence for tax purposes despite military relocations to other states.
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