112 West Edwards Street, Springfield, IL P F

Transcription

1 West Edwards Street, Springfield, IL P F

2 Introduction information of this publication

3 Table of Contents (this will be a tab and each title listed below will be the title of the tab pages - each tab will have it s own individual table of contents sharing which laws are in the category) Land Development Laws Builder Laws Remodeling Laws Energy Code Laws Finance Laws Business Reporting Laws Consumer Protection Elected Officials 3

4 Land Development Farmland Preservation is a warm, cozy term for the practice of taxing property owners for the purpose of purchasing the development rights on the property they own with the money they paid. Here at HBAI, we refer to the socialist practice of government owning land simply for the control of its use as the Purchasing of Development Rights. Ironically, HBAI has fought mostly Republican lawmakers representing high-growth areas of the state for years on this issue, and we have won every time. Even after the Great Recession hit, state legislators continued to press for the government control of private property. The last bill that got anywhere in the process was HB1082, which was introduced in 2011, three years into the housing bust. The bill would have allowed counties in northeastern Illinois to levy a property tax for farmland preservation easement and green development purposes. The tax could not exceed 0.05% of the equalized assessed value of the taxable property in the county. Funds derived from the tax would then be used to purchase the development rights on property in-perpetuity forever. Potentially, one county board could decide the use of properties for centuries to come. Now that s long range planning! 4

5 HB1082 had no limitations on what amount could be paid for the development rights. Not that it would ever happen in Illinois, but this scenario certainly sets the table for a situation where a chosen few landowners receive the bear s share of tax dollars for selling their development rights while continuing to farm their property. This particular bill was defeated in the House Counties & Townships Committee with opposition coming from HBAI, the Chicago Regional Council of Carpenters, the Operating Engineers Local 150, and the Illinois AFL-CIO. Attempts made with other bills in previous years have managed to pass in the Illinois Senate, but we ve always been able to get this issue stopped in the Illinois House. So for now, the law is this: if local government wants to save property from home ownership, they cannot merely purchase the development rights. The property must be purchased in whole which greatly deters county boards from practicing the art of socialism (on this issue) here in Illinois.

6 Implied Warranty Law Illinois has no state statutes regarding the warranty of residential structures. What protects new home buyers in Illinois is the doctrine of the implied warranty of habitability; a creature of the judiciary that is narrowly tailored to protect residential dwellers from latent defects that interfere with the habitability of their residences. The Implied Warranty Law in Illinois is the product of a series of court cases over the past 50 years that provides new home buyers certain protections not granted in state statute. New home construction (Peterson v. Hubschman) and major room additions and remodeling projects (VonHoldt v.barba & Barba) are subject to implied warranty standards in Illinois. The warranty runs with the home and subsequent purchasers who reside within the timeframe of the warranty are protected, as well (Redarowicz v. Ohlendorf). Everything in a new home is warrantied for the first year of occupancy. Any defects, structural or otherwise, must be remedied by the builder. All structural work is then warrantied for another ten years. There is also a three year period for discovery after the ten years where if a homeowner discovers a structural defect, it can be under warranty if proven it happened in those first 11 years. Altogether, home builders issuing contracts without a disclaimer for the waiver of the implied warranty are liable for the structure of their homes for up to 14 years.

7 From time to time, bills are introduced that mandate a ten year warranty on the purchase of a new home. HBAI opposes this even though it shortens the time of liability. We do this because Illinois allows contractors to place limited liability language into their contracts. Most builders limit their liability by placing a disclaimer for the waiver of the implied warranty into their standard contracts. This provision is negotiable between the builder and the buyer, and it provides a negotiating tool in the bargaining exchange. Builders may discount the price of the home, for example, if the contract limits the years of liability for the structure of the home. Arbitration may be used when builders and home owners disagree on whether a defect should be cured by the builder. This is an effective and thrifty way to resolve a disagreement between the builder and the owner. Many circuit court judges refuse to hear a case of this nature unless an arbitration tribunal has made judgment on the matter. Arbitration is not always required and DOES NOT preclude either side from going to court. If either side is unhappy with the outcome of the arbitration, they are welcome to petition the courts for judgment. One case that could greatly affect the application of the implied warranty law is to be heard soon in the Illinois Supreme Court. In the case of Fattah v. Bim, John Fattah of Glenview claimed that defects to his patio should be repaired by the builder, Mirek Bim. But Fattah did not buy the home from Bim; the original owner was Beth Lubeck, who signed a contract with Bim that contained a disclaimer to waive the implied warranty. 7

8 Implied Warranty Law (continued) The circuit court ruled in favor of Bim, finding that Fattah s claim was barred by a disclaimer of the implied warranty signed by Lubeck. Fattah then filed suit in Appellate Court. Bim never received notice of the Appeal and the Appellate Court ruled in favor of Fattah due to Bim s failure to provide written or oral argument. Bim has now moved the case up to the Illinois Supreme Court where they are asking the Appeals Court decision be dismissed because the case was the court actions were a violation of Bim s due process rights. HBAI plans to file an Amicus Brief on behalf of Bim by November 4, Attorney John P. Cooney has been selected by HBAI to write the brief on behalf of our Association. Legal assistance is being provided by NAHB and they will join us in the Amicus Brief. HBAI will also be contacting each of our local associations to request that they join in as well. Builders in Illinois could be greatly harmed by prospective liability cases should Bim lose his case at the Illinois Supreme Court. Cooney believes builders could be liable for homes built going back to HBAI is dedicated to protect the contractual rights and privileges of its builders. Hopefully, we will hear soon that the Appellate Court decision has been struck down and that our builder s current contracts protect them from unforeseen liabilities. 8

9 Consumer Protection & Contractor Licensure The Illinois Attorney General s office will submit a report to the Illinois General Assembly on or before November 1, 2015 requesting they enact legislation that would create home builder and remodeling registration. HBAI has registered opposition to this report and respectfully requests the A.G. s office to return to the negotiating table to further discuss the issue of home builder registration in Illinois. Contractor licensure is an emerging issue that HBAI must address in the very near future. You might think this quote is from a recent meeting of the HBAI Board of Directors, but it is not. The quote was made almost 60 years ago and is taken from the minutes of the very first board meeting of the Home Builders Association of Illinois held in Since that time, 37 states have passed some level of registration or licensure that regulates home construction and remodeling. Or, to put it another way, Illinois is one of 13 states to not enact some type of registration that is intended to promote better business practices and consumer protection in the home construction industry. Taken out of context, lawmakers, media-mites, and consumer protectionists could quickly surmise that home builders in Illinois are nay-sayers to any and all proposals that could enhance the professionalism of their industry; but they would be wrong. 9

10 Consumer Protection & Contractor Licensure HBAI has a history of working with legislators and law enforcement officials to protect home owners and punish bad builders and remodelers. The only thing we ve ever asked is that they do it without punishing the good guys; our members who do the job right and come back when and if there is a problem. Here are some bullets on what we have done in the past 15 years Home Repair & Remodeling Act HBAI worked with Attorney General Jim Ryan to enact the Home Repair & Remodeling Act which mandates written estimates and requires contractors to share with their customers, information on how to choose a contractor. It provides them with their consumer rights and, it contains stiff penalties for violating this Statute The Illinois Quality Assurance Builder Standards HBAI enacts an in-house program that creates a set of standards to establish realistic expectations to the consumer in the building or remodeling of their home. Mediation/Arbitration is prescribed through binding language for all projects contracted by Q.A. participants. It does Not prescribe a building code; it does Not add another review process; and, it does Not have your association tell you how to build a home or what materials to use. 10

11 2003 The Illinois Residential Code Act (IRCA) HBAI unilaterally advances legislation in the Illinois General Assembly to ensure that all homes built in Illinois must be built to a legitimate building code and set of standards. The IRCA mandates that all builders and remodelers must build to the most recent International Residential Code or may choose another local code currently used in Illinois that is agreed upon with the customer. Prior to the enactment of the IRCA on January 1, 2004, 76 out of 102 counties in Illinois had no codes or standards for home building or remodeling Storm Chasers Law Working this time with Attorney General Lisa Madigan, HBAI negotiates language mandating special business operations and standards when working with customers after a catastrophe. Builders must get expressed permission from homeowners to work with insurance adjusters when negotiating the size and cost of damage to a home. They cannot call in a claim on behalf of a homeowner; and, they cannot rebate or pay the insurance deductible as a sales incentive. Home owners have 5 days to cancel a contract upon notice from an insurance company that any part of the claim or contract is not a covered loss. Homeowners may cancel a contract up to 30 days after receipt of a properly executed proof of loss by the insurer. 11

12