SB1967 102ND GENERAL ASSEMBLY

LRB102 17197 AWJ 22652 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1967

Introduced 2/26/2021, by Sen. Adriane Johnson

SYNOPSIS AS INTRODUCED:

55 ILCS 5/3-5048 new

Amends the Counties Code. Provides that a restrictive covenant modification to an unlawful restrictive covenant may be filed, for a fee not to exceed $10, by: (1) the holder of an ownership interest in property that is subject to the unlawful restrictive covenant; or (2) a common interest community association, a condominium association, a unit owners' association, or a master association of a parcel of property subject to the association's declaration and the parcel is subject to an unlawful restrictive covenant. Includes requirements for a restrictive covenant modification and the petition to modify. Provides that, on receipt of a restrictive covenant modification, the recorder shall submit the restrictive covenant modification together with a copy of the original instrument referenced in the restrictive covenant modification to the State's Attorney, except, if a recorder determines that the a restrictive covenant modification submitted is clearly an unlawful restrictive covenant, the recorder may proceed to record the restrictive covenant modification. If the restrictive covenant modification is submitted to the State's Attorney, the State's Attorney shall make a determination within 30 days as to whether the original document contains an unlawful restrictive covenant and the recorder may not record the modification unless the State's Attorney determines an unlawful restrictive covenant exists. Limits liability of a county recorder and county for unauthorized modifications. Defines terms. Contains other provisions.

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Counties Code is amended by adding Section 3-5048 as follows:

(55 ILCS 5/3-5048 new)

Sec. 3-5048. Unlawful restrictive covenant modifications.

(a) As used in this Section:

"Declaration" has the meaning given to that term in Section 1-5 of the Common Interest Community Association Act or Section 2 of the Condominium Property Act, as applicable.

"Unlawful restrictive covenant" means any recorded covenant or restriction that is void under Section 3-105 of the Illinois Human Rights Act which purports to forbid or restrict the conveyance, encumbrance, occupancy, or lease thereof on the basis of race, color, religion, or national origin.

"Recorder" means the recorder of the county where the property subject to the unlawful restrictive covenant is located.

(b) A person or entity may execute and file a restrictive covenant modification to an unlawful restrictive covenant in accordance with this Section if the person or entity:

(1) holds an ownership interest in property that is subject to the unlawful restrictive covenant; or

(2) is a common interest community association, a condominium association, a unit owners' association, or a master association of a parcel of property subject to the association's declaration and the parcel is subject to an unlawful restrictive covenant.

The recorder may impose a fee for filing a restrictive covenant modification pursuant to this Section in an amount not to exceed $10.

(c) A restrictive covenant modification shall include:

(1) a complete copy of the original instrument containing the unlawful restrictive covenant with the language of the unlawful restrictive covenant stricken; and

(2) a petition to modify an unlawful restrictive covenant, as provided in subsection (d).

(d) A petition to modify an unlawful restrictive covenant shall:

(1) be signed by the record owner of the property or, in the case of an entity under paragraph (2) of subsection (b), be accompanied by a certification that a majority of the governing body of the entity has agreed to the restrictive covenant modification;

(2) reference the property index number or unique parcel identification code of the property for which the original instrument containing the unlawful restrictive covenant is recorded; and

(3) include any other information that the recorder or State's Attorney considers necessary in carrying out the requirements of this Section.

(e) On receipt of a restrictive covenant modification, the recorder shall submit the restrictive covenant modification together with a copy of the original instrument referenced in the restrictive covenant modification to the State's Attorney. However, if a recorder determines that the a restrictive covenant modification submitted is clearly an unlawful restrictive covenant, the recorder may proceed under subsection (g) without submitting documentation required by this subsection to the State's Attorney.

(f) Within 30 days of receipt from the recorder, the State's Attorney shall:

(1) review the restrictive covenant modification and the copy of the original instrument to determine: (i) whether the original instrument contains an unlawful restrictive covenant; and (ii) whether the restrictive covenant modification correctly strikes through only the language of the unlawful restrictive covenant; and

(2) return the restrictive covenant modification and copy of the original instrument to the recorder together with the State's Attorney's written determination.

(g) The recorder may not record a restrictive covenant modification filed under subsection (b) unless: (i) the State's Attorney determines that the modification is appropriate in accordance with subsection (f); or (ii) the recorder has determined that the restrictive covenant modification submitted is clearly an unlawful restrictive covenant as provided in subsection (e).

If the State's Attorney's written determination finds that the instrument contains an unlawful restrictive covenant or the recorder has determined that the restrictive covenant modification submitted is clearly an unlawful restrictive covenant, the recorder shall record the restrictive covenant modification with the unlawful language stricken.

(h) A recorded restrictive covenant modification shall be indexed in the same manner as the original instrument.

(i) Subject to all lawful covenants, conditions, and restrictions that were recorded after the recording of the original instrument, the restrictions contained in a duly recorded restrictive covenant modification are the only restrictions based on the original instrument that apply to the property.

(j) The effective date of the terms and conditions contained in a duly recorded restrictive covenant modification shall be the same as the effective date of the original instrument.

(k) If a person or entity causes to be filed or recorded a restrictive covenant modification that contains modifications not authorized under this Section:

(1) the recorder may not incur any liability for recording the restrictive covenant modification;

(2) the county may not incur any liability as a result of a determination rendered by the State's Attorney under subsection (f); and

(3) any costs, fees, or liability that results from the unauthorized filing or recording shall be the sole responsibility of the person or entity that executed the restrictive covenant modification.