Better Informed Housing

Summary

In this informative video, Fez from Better-Informed Housing discusses the impact of vacant and abandoned properties, particularly in neighborhoods in Illinois. He explains the '1200-foot rule,' which allows property owners to file lawsuits against abandoned or dangerous properties within 1200 feet of their homes. By doing so, owners can address hazardous conditions or declining property values. The video highlights the concept of 'zombie properties' and how the law can help residents acquire these properties at a low cost, ultimately revitalizing neighborhoods and mitigating the effects of blight.

Takeaways

• 😀 The 1200-foot rule in Illinois allows homeowners to address vacant or abandoned properties within 1200 feet that may cause value loss or safety hazards.
• 😀 Residents can take legal action if a property within 1200 feet is neglected and the city fails to intervene within 30 days.
• 😀 Filing a lawsuit allows homeowners to request repairs or take on the role of a 'receiver' to manage the property and make necessary fixes.
• 😀 As a receiver, homeowners gain a 'super priority lien', meaning their claim on the property comes ahead of banks and other creditors.
• 😀 Zombie properties—vacant, abandoned buildings with no responsible owner—are a growing issue, especially in cities like Chicago and surrounding suburbs.
• 😀 Vacant and abandoned properties can significantly drop the value of surrounding homes, with a potential loss of up to $100,000 in property value.
• 😀 The 1200-foot rule isn't just applicable in Chicago but across Illinois, offering residents in other municipalities the same legal opportunity.
• 😀 Homeowners do not need to buy the vacant property outright but can fix the issues surrounding the property to prevent further neighborhood decline.
• 😀 The process involves notifying the city and, if they fail to act, filing a lawsuit against the owner to force repairs or maintenance.
• 😀 For more information on how to use the 1200-foot rule or file a lawsuit, residents can contact Better-Informed Housing through phone or email.

Q & A

What is the 1200-foot rule in Illinois real estate?

The 1200-foot rule in Illinois allows property owners to intervene if a neighboring property, within 1200 feet (about two city blocks), negatively impacts their property. This could be due to vacancy, abandonment, or dangerous conditions such as hazardous construction or buildings that pose a risk to safety.

How does the 1200-foot rule affect property owners?

Property owners affected by a neighboring property within 1200 feet can file a lawsuit if the municipality does not act on building violations. This allows property owners to force the municipality to address the issue or take matters into their own hands, even potentially fixing the property themselves.

What are the potential benefits for filing a lawsuit under the 1200-foot rule?

Filing a lawsuit can lead to being appointed as a 'receiver' for the property, giving the individual the right to make repairs and place a lien on the property. The lien is a super priority lien, which means it takes precedence over other liens, including those of the bank or property owner.

What is a super priority lien?

A super priority lien is a legal claim placed on a property that takes precedence over all other liens, including those from banks or previous owners. This ensures that the individual who fixes the property is paid first before anyone else in the event of a sale.

What are zombie properties and how do they relate to the 1200-foot rule?

Zombie properties are abandoned properties with no active owner or foreclosure process, often left vacant for years. These properties lower the value of neighboring properties, which is where the 1200-foot rule can be helpful in addressing the issue by allowing affected property owners to take legal action.

How do zombie properties affect property values?

Zombie properties can cause a significant decline in property values for nearby homes. The longer these properties remain abandoned, the more they negatively affect the neighborhood and the value of surrounding properties.

Why is it important for municipalities to address vacant and abandoned properties?

Vacant and abandoned properties can lead to safety concerns, crime, and the deterioration of neighborhoods. By addressing these properties, municipalities can improve safety, restore property values, and reduce the negative impacts on local communities.

What happens if a municipality does not take action on a vacant property?

If a municipality does not act on a vacant property that is violating building codes or creating hazardous conditions, affected property owners can file their own lawsuit. This allows them to push for the property to be fixed or intervene themselves.

How does the process of becoming a receiver work?

If a lawsuit is filed and successful, the individual can be appointed as a receiver to make repairs to the vacant or abandoned property. This involves fixing the property, and they may be able to acquire the property through legal procedures if the original owner or bank is unwilling to act.

Can the 1200-foot rule be used in suburban municipalities or is it limited to Chicago?

The 1200-foot rule applies statewide in Illinois, not just in Chicago. It is available for use in both suburban and urban municipalities across the state, offering property owners statewide the opportunity to take action against vacant or abandoned properties that affect their property.