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HB 3307

Requiring annual audit of non-governmental organizations (“NGOs”) that receive money from the state

2025 Regular Session Introduced by Trenton Barnhart and 4 co-sponsors

Receivers in foreclosure must maintain safe, habitable housing; a Residential Real Estate Ombudsperson Program is created to protect tenants and improve communication.

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Bill Summary · HB 3307

Summary — HB 3307 (OMBUDSPERSON MGT RECEIVERSHIP)

Bill: HB 3307 (Kelly M. Cassidy) — amends 735 ILCS 5/15-1704 (Mortgage Foreclosure Law)
Status: Enacted — signed by the Governor 05/29/2025; Effective date: January 1, 2026
Companion: SB 2960

Purpose

HB 3307 enhances tenant protections and oversight where mortgaged residential real estate is placed in receivership during foreclosure. It (1) clarifies receivers’ duties to maintain safe, habitable, and accessible housing and (2) creates a Residential Real Estate Ombudsperson Program to monitor and facilitate communication among tenants, receivers, and the court.

Key provisions

  • Receivers’ maintenance duties

    • Require receivers to use “reasonable efforts” to maintain property and to make repairs/improvements necessary to comply with building, housing, or similar codes necessary for safety, accessibility, and habitability of residential units.
    • Preserve other existing receiver powers (e.g., collecting rents, insuring property, hiring managers) and the receiver’s responsibility for delegates’ acts.
    • Clarifies receivers may continue customary leases and must maintain existing casualty/liability insurance; receipts applied to operating expenses and other court-authorized priorities as under current law.

  • Residential Real Estate Ombudsperson Program

    • Establishment: courts in counties with 50,000+ residents must establish the program; courts in counties under 50,000 may establish it.
    • Purpose: ensure tenants in receivership retain safe, habitable, accessible housing and improve communication between tenants, receivers, and the court.
    • Powers and duties of the Ombudsperson include (non-exhaustive list):
    • Receive and investigate complaints about receivership performance affecting tenant health, safety, welfare, or rights.
    • Enter receiver-managed property at reasonable times with notice.
    • Communicate privately with consenting tenants.
    • Facilitate communication among tenants, receivers, and the court.
    • Make recommendations to receivers and the court about building conditions and court practices.
    • Submit periodic reports to the court on property status, the receivership relationship, and use of Ombudsperson services.
    • Notification requirement: within 60 days of appointment, the Ombudsperson must provide contact information to all known occupants by posting written notices on unit doors and in common areas.

Who is affected

  • Tenants residing in residential properties placed into receivership (improved access to oversight and information).
  • Receivers and property management delegates (added maintenance obligations; increased oversight/interaction with Ombudsperson).
  • Courts (required to establish programs in larger counties; administrative responsibilities).
  • Mortgagees and other stakeholders potentially affected by priority uses of receipts and maintenance costs.

Impact and considerations

  • Likely to increase attention to code compliance and tenant safety during foreclosure receiverships.
  • May raise operational costs for receivers (repairs, coordination with Ombudsperson) and add administrative duties for courts.
  • The Ombudsperson’s role is primarily investigatory and advisory (makes recommendations and reports to the court) rather than an independent enforcement authority.

Legal citation

Amends: 735 ILCS 5/15-1704 (Code of Civil Procedure — Mortgage Foreclosure Law).

Compiled from official sources — confirm details with the bill’s official record.

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