For covered single-family homes, the proposal would give owners with a senior property-tax exemption time to review and dispute a claim before a contractor records a lien.
For covered homes, contractors would check for the senior tax exemption and, if present, send claim details at least 15 days before filing; owners could dispute in writing within 15 days.
Owners could ask a court to reduce or remove a lien for missing required notices or an excessive claim. Fees and costs are possible only if the contractor acted willfully or in bad faith.
Before recording a lien, a contractor would check whether the home has the senior citizens' homestead exemption. If it does, the contractor would send the owner a notice and state in the lien affidavit whether the owner disputed the claim. This applies to owner-occupied single-family homes with the exemption under Section 15-170 of the Property Tax Code. The notice must list the amount claimed, itemized charges for completed work, and the contract and any signed change orders. It must also explain that a lien may be recorded if the matter is not resolved and that the owner can dispute the claim in writing. The owner may dispute the claim in writing within 15 days after receiving the notice. The contractor must send or personally deliver the notice at least 15 days before recording the lien. This subsection applies to contracts entered into on or after the Act's effective date.
An owner could ask a circuit court to reduce or remove a lien. The court would hear the case on an expedited basis and could grant appropriate relief. The stated grounds are failure to follow the notice rules in subsections (d) or (e), or an excessive lien amount. The court could award reasonable attorney fees and costs if it finds that the contractor acted willfully or in bad faith. The provisions in subsection (e) apply to contracts entered into on or after the Act takes effect. The Act would take effect upon becoming law.
No hearings or votes scheduled.