Public Act No. 21-143 Summary

• Municipalities may assign tax liens, sewer assessment liens, water charge liens, and sewer connection/use charge liens to third parties for negotiated consideration, effective October 1, 2021.

• All assignments executed on or after July 1, 2022 must be memorialized in written contracts specifying contact information, foreclosure timelines (minimum one year before action), attorney fee structures, and prohibiting conflicts of interest in foreclosure counsel.

• Assignees must provide written notice to property owners and mortgage holders within 60 days of assignment, and provide at least 60 days' written notice to prior lien holders before commencing foreclosure proceedings.

• Assignees are subject to liability for their conduct (not insulated under section 42-110c) and must provide payoff statements like mortgagees; property owners become third-party beneficiaries able to enforce the contract covenants.

• All foreclosure actions, sales, and related costs must be conducted on commercially reasonable terms, with disclosed litigation history, criminal proceedings, property interests, and ethics violations of assignees and their principals.