summary
Introduced
02/06/2025
02/06/2025
In Committee
02/17/2026
02/17/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
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.
AI Summary
This bill amends the Mortgage Foreclosure Law to enhance protections for tenants in residential properties under receivership by establishing a Residential Real Estate Ombudsperson Program. The program will be mandatory in counties with 50,000 or more residents and optional in smaller counties, with the primary goal of ensuring tenants have safe, habitable, and accessible homes throughout the receivership process. Receivers will now be required to use reasonable efforts to make repairs and improvements to comply with building, housing, and safety codes. The Ombudsperson will have broad powers, including investigating complaints, entering properties, communicating with tenants, facilitating communication between receivers and tenants, and submitting reports to the court. The bill requires receivers to notify tenants about the Ombudsperson program within 60 days of appointment by posting written notices in dwelling units, providing contact information and explaining the purpose of the receivership and tenants' rights. The Ombudsperson can make recommendations to the court, including potentially requesting the discharge of a receiver who is not meeting their obligations. This legislation aims to improve transparency, communication, and tenant protections during the property receivership process, with an effective date of January 1, 2026.
Committee Categories
Justice
Sponsors (1)
Last Action
House Judiciary - Civil Committee Hearing (08:00:00 2/25/2026 114 and Virtual Room 1) (on 02/25/2026)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3307&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB3307.htm |
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