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Chicago Housing Code Ordinance
Effective May 26, 2000: Owners and Lenders with an interest in unoccupied buildings must register their properites with the City of Chicago.
Penalty: Fines from $200 to $1,000 daily
Effective August 17, 2000: All vacant property owners must secure Liability insurance of at least $300,000 for residential buildings and $1 million for vacant commercial and industrial properties.
Penalty: Daily fines
VACANT BUILDING ORDINANCE:
Municipal Code of Chicago: 13-12-020, 13-12-125, 13-11-030
The city of Chicago has recently issued an ordinance affecting vacant buildings in the Chicago area. This is an effort to increase the protection of downtown neighborhoods against crime and illegal activities that
occur predominantly within these buildings. All lenders, owners, or parties with an interest in these vacant buildings will be subject to fines if they do not meet the requirements of the new ordinance.
Section 13-12-020 names any mortgage company affiliated with an owner of a vacant building liabile for whatever actions, legal or illegal, that occur on an unregistered, vacant site:
- The liabilities and obligations imposed on an owner shall attach to any mortgage company or any other person with or without an interest in the building or premises who knowingly takes any action in any judicial or administrative proceeding that is intended to delay issuance or enforcement of any remedy for any violation of the Building Code then in existence; provided that with respect to fines such person shall be liable only for fines which accrue on or after the date of such action; and further provided that no liability shall be imposed under this section for any action taken in any proceeding, including a proceeding to foreclose on a lien, that does not delay or prevent the prosecution of any action brought by the city to enforce the Building Code.
Section 13-12-125 will greatly affect Loan Protector clients who own or have an interest in vacant buildings in the city of Chicago:
- The owner of any building that has become vacant shall within 30 days after the building becomes vacant, or within 30 days after the effective date of this ordinance, whichever is later, file a registration statement for each such building with the department of buildings on forms provided by the department of buildings for such purposes. The registration shall remain valid for one year from the date of registration. The owner shall be required to annually renew the registration as long as the building remains vacant and shall pay an annual registration fee of $50.00 for each registered building; provided, however, that all eleemosynary, religious, educational, benevolent or charitable associations and all governamental agencies shall be exempt from the payment of the annual registration fee. The owner shall notify the department of buildings, within 20 days, of any change in the registration information by filing an amended registration statement on a form provided by the department of buildings for such purposes. The registration statement shall be deemed prima facie proof of the statements therein contained in any administrative enforcement proceeding or court proceeding instituted by the city against the owner or owners of the building. Registration of a building in accordance with this section shall be deemed to satisfy the registration requirements set forth in Section 13-10-030 and the notification requirement set forth in Section 13-11-030.
- The owner of any building that has become vacant shall, within 30 days, acquire or otherwise maintain liability insurance, in an amount of not less than $300,000.00 for buildings designed primarily for use as residential units and not less than $1,000,000.00 for any other building, including, but not limited to, buildings designed for manufacturing, industrial, storage or commercial uses, covering any damage to any person or any property caused by any physical condition of or in the building. Any insurance policy acquired after the building has become vacant shall provide for written notice to the commissioner of buildings within 30 days of any lapse, cancellation or change in coverage. The owner and the owner's authorized agent for service of process shall provide evidence of the insurance, upon request, to the commissioner of buildings or his or her designee.
If you are a lender or servicer who has vacant buildings, Loan Protector can provide our clients
with the proper liability coverage that will meet the Ordinance standands. While we cannot offer any legal advice, please feel free to contact us to discuss liability coverage options.
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