Chicago City Council Amends Vacant Building Ordinance to Address Mortgage Lender Concerns

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The Chicago City Council recently approved another amendment to its vacant building ordinance. Scheduled to take effect November 19, 2011, this amendment eliminates the requirement under a prior amendment that mortgagees secure vacant commercial buildings upon which they hold mortgages. Lenders holding mortgages on vacant residential properties still must register with the City and pay a fee; secure the building against entry; maintain the grounds, exterior and interior of the building; and insure the property against personal injury and property damage.

At least for commercial mortgage holders, however, the amendment removes the “double bind” imposed by the prior iteration of the ordinance. Commercial mortgage lenders will no longer have to weigh statutory compliance with maintenance and security obligations against Illinois law prohibiting access to mortgaged premises through self-help.

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Published In: General Business Updates, Finance & Banking Updates, Commercial Real Estate Updates, Zoning, Planning & Land Use Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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