As Introduced

127th General Assembly Regular Session 2007-2008

H. B. No. 531

Representative Goyal 

Cosponsors: Representatives Foley, Yuko, McGregor, J., Skindell, Hagan, R., Celeste, Brown, Williams, S., Otterman, J., Stewart, D., Letson 

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A BILL

To amend section 3767.41 of the Revised Code to

1

expand the law governing the abatement of public

2

nuisances to buildings not occupied by an owner as

3

a primary residence with three or fewer

4

residential units and to vacant land and to make

5

the title in property sold by court order pursuant

6

to a public nuisance action free and clear of most

7

liens and encumbrances.

8

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 3767.41 of the Revised Code be	9
amended to read as follows:	10

Sec. 3767.41.  (A) As used in this section:

11

(1) "Building" means, except as otherwise provided in this	12
division, any building or structure that is used or intended to be	13
used for residential purposes. "Building" includes, but is not	14
limited to, a building or structure in which any floor is used for	15
retail stores, shops, salesrooms, markets, or similar commercial	16
uses, or for offices, banks, civic administration activities,	17
professional services, or similar business or civic uses, and in	18
which the other floors are used, or designed and intended to be	19
used, for residential purposes. "Building" does not include any	20
except a building or structure that is occupied by its owner and	21
that contains three or fewer residential units, with one of the	22
residential units being occupied by the owner of the building or	23
structure.	24

(2) "Land" means any parcel of land that is not the site of a	25
building or other structure.	26

(3)(a) "Public nuisance" as it applies to a building means a	27
building that is a menace to the public health, welfare, or	28
safety; that is structurally unsafe, unsanitary, or not provided	29
with adequate safe egress; that constitutes a fire hazard,or is	30
otherwise dangerous to human life, or; that is otherwise no longer	31
fit and habitable if the building is used or designed to be used	32
for residential purposes; or that, in relation to its existing	33
use, constitutes a hazard to the public health, welfare, or safety	34
by reason of inadequate maintenance, dilapidation, obsolescence,	35
or abandonment.	36

(b) "Public nuisance" as it applies to land means land that	37
constitutes a hazard to the public health, welfare, or safety by	38
reason of unsafe or unsanitary conditions.	39

(c) "Public nuisance" as it applies to subsidized housing	40
means subsidized housing that fails to meet the following	41
standards as specified in the federal rules governing each	42
standard:	43

(i) Each building on the site is structurally sound, secure,	44
habitable, and in good repair, as defined in 24 C.F.R. 5.703(b);	45

(ii) Each building's domestic water, electrical system,	46
elevators, emergency power, fire protection, HVAC, and sanitary	47
system is free of health and safety hazards, functionally	48
adequate, operable, and in good repair, as defined in 24 C.F.R.	49
5.703(c);	50

(iii) Each dwelling unit within the building is structurally	51
sound, habitable, and in good repair, and all areas and aspects of	52
the dwelling unit are free of health and safety hazards,	53
functionally adequate, operable, and in good repair, as defined in	54
24 C.F.R. 5.703(d)(1);	55

(iv) Where applicable, the dwelling unit has hot and cold	56
running water, including an adequate source of potable water, as	57
defined in 24 C.F.R. 5.703(d)(2);	58

(v) If the dwelling unit includes its own sanitary facility,	59
it is in proper operating condition, usable in privacy, and	60
adequate for personal hygiene, and the disposal of human waste, as	61
defined in 24 C.F.R. 5.703(d)(3);	62

(vi) The common areas are structurally sound, secure, and	63
functionally adequate for the purposes intended. The basement,	64
garage, carport, restrooms, closets, utility, mechanical,	65
community rooms, daycare, halls, corridors, stairs, kitchens,	66
laundry rooms, office, porch, patio, balcony, and trash collection	67
areas are free of health and safety hazards, operable, and in good	68
repair. All common area ceilings, doors, floors, HVAC, lighting,	69
smoke detectors, stairs, walls, and windows, to the extent	70
applicable, are free of health and safety hazards, operable, and	71
in good repair, as defined in 24 C.F.R. 5.703(e);	72

(vii) All areas and components of the housing are free of	73
health and safety hazards. These areas include, but are not	74
limited to, air quality, electrical hazards, elevators,	75
emergency/fire exits, flammable materials, garbage and debris,	76
handrail hazards, infestation, and lead-based paint, as defined in	77
24 C.F.R. 5.703(f).	78

(3)(4) "Abate" or "abatement" in connection with any building	79
means the removal or correction of any conditions that constitute	80
a public nuisance and in connection with any building includes the	81
making of any other improvements that are needed to effect a	82
rehabilitation of the building that is consistent with maintaining	83
safe and habitable conditions over its remaining useful life.	84
"Abatement" does not include theThe closing or boarding up of	85
any building that is found to be a public nuisance, by itself,	86
does not serve as an abatement of the public nuisance.	87

(4)(5) "Interested party" means any owner, mortgagee,	88
lienholder, tenant, or person that possesses an interest of record	89
in any property that becomes subject to the jurisdiction of a	90
court pursuant to this section, and any applicant for the	91
appointment of a receiver pursuant to this section.	92

(5)(6) "Neighbor" means any owner of real property,	93
including, but not limited to, any person who is purchasing real	94
property by land installment contract or under a duly executed	95
purchase contract, that is located within five hundred feet of any	96
real property that becomes subject to the jurisdiction of a court	97
pursuant to this section, and any occupant of a building that is	98
so located.	99

(6)(7) "Tenant" has the same meaning as in section 5321.01 of	100
the Revised Code.	101

(7)(8) "Subsidized housing" means a property consisting of	102
more than four dwelling units that, in whole or in part, receives	103
project-based assistance pursuant to a contract under any of the	104
following federal housing programs:	105

(a) The new construction or substantial rehabilitation	106
program under section 8(b)(2) of the "United States Housing Act of	107
1937," Pub. L. No. 75-412, 50 Stat. 888, 42 U.S.C. 1437f(b)(2) as	108
that program was in effect immediately before the first day of	109
October, 1983;	110

(b) The moderate rehabilitation program under section 8(e)(2)	111
of the "United States Housing Act of 1937," Pub. L. No. 75-412, 50	112
Stat. 888, 42 U.S.C. 1437f(e)(2);	113

(c) The loan management assistance program under section 8 of	114
the "United States Housing Act of 1937," Pub. L. No. 75-412, 50	115
Stat. 888, 42 U.S.C. 1437f;	116

(d) The rent supplement program under section 101 of the	117
"Housing and Urban Development Act of 1965," Pub. L. No. 89-174,	118
79 Stat. 667, 12 U.S.C. 1701s;	119

(e) Section 8 of the "United States Housing Act of 1937,"	120
Pub. L. No. 75-412, 50 Stat. 888, 42 U.S.C. 1437f, following	121
conversion from assistance under section 101 of the "Housing and	122
Urban Development Act of 1965," Pub. L. No. 89-174, 79 Stat. 667,	123
12 U.S.C. 1701s;	124

(f) The program of supportive housing for the elderly under	125
section 202 of the "Housing Act of 1959," Pub. L. No. 86-372, 73	126
Stat. 654, 12 U.S.C. 1701q;	127

(g) The program of supportive housing for persons with	128
disabilities under section 811 of the "National Affordable Housing	129
Act of 1990," Pub. L. No. 101-625, 104 Stat. 4313, 42 U.S.C. 8013;	130

(h) The rental assistance program under section 521 of the	131
"United States Housing Act of 1949," Pub. L. No. 90-448, 82 Stat.	132
551, as amended by Pub. L. No. 93-383, 88 Stat. 696, 42 U.S.C.	133
1490a.	134

(8)(9) "Project-based assistance" means the assistance is	135
attached to the property and provides rental assistance only on	136
behalf of tenants who reside in that property.	137

(9)(10) "Landlord" has the same meaning as in section 5321.01	138
of the Revised Code.	139

(B)(1)(a) In any civil action to enforce any local building,	140
housing, air pollution, sanitation, health, fire, zoning, or	141
safety code, ordinance, or regulation applicable to buildings,	142
lands, or subsidized housing that is commenced in a court of	143
common pleas, municipal court, housing or environmental division	144
of a municipal court, or county court, or in any civil action for	145
abatement commenced in a court of common pleas, municipal court,	146
housing or environmental division of a municipal court, or county	147
court, by a municipal corporation in which the building, land, or	148
subsidized housing involved is located, by any neighbor, tenant,	149
or by a nonprofit corporation that is duly organized and has as	150
one of its goals the improvement of housing conditions in the	151
county or municipal corporation in which the building, land, or	152
subsidized housing involved is located, if a building, land, or	153
subsidized housing is alleged to be a public nuisance, the	154
municipal corporation, neighbor, tenant, or nonprofit corporation	155
may apply in its complaint for an injunction or other order as	156
described in division (C)(1) of this section, or for the relief	157
described in division (C)(2) of this section, including, if	158
necessary, the appointment of a receiver as described in	159
divisions (C)(2) and (3) of this section, or for both such an	160
injunction or other order and such relief. The municipal	161
corporation, neighbor, tenant, or nonprofit corporation	162
commencing the action is not liable for the costs, expenses, and	163
fees of any receiver appointed pursuant to divisions (C)(2) and	164
(3) of this section.	165

(b) Prior to commencing a civil action for abatement when the	166
property alleged to be a public nuisance is subsidized housing,	167
the municipal corporation, neighbor, tenant, or nonprofit	168
corporation commencing the action shall provide the landlord of	169
that property with written notice that specifies one or more	170
defective conditions that constitute a public nuisance as that	171
term applies to subsidized housing and states that if the landlord	172
fails to remedy the condition within sixty days of the service of	173
the notice, a claim pursuant to this section may be brought on the	174
basis that the property constitutes a public nuisance in	175
subsidized housing. Any party authorized to bring an action	176
against the landlord shall make reasonable attempts to serve the	177
notice in the manner prescribed in the Rules of Civil Procedure to	178
the landlord or the landlord's agent for the property at the	179
property's management office, or at the place where the tenants	180
normally pay or send rent. If the landlord is not the owner of	181
record, the party bringing the action shall make a reasonable	182
attempt to serve the owner. If the owner does not receive service	183
the person bringing the action shall certify the attempts to serve	184
the owner.	185

(2)(a) In a civil action described in division (B)(1) of this	186
section, a copy of the complaint and a notice of the date and time	187
of a hearing on the complaint shall be served upon the owner of	188
the building, land, or subsidized housing and all other interested	189
parties in accordance with the Rules of Civil Procedure. If	190
certified mail service, personal service, or residence service of	191
the complaint and notice is refused or certified mail service of	192
the complaint and notice is not claimed, and if the municipal	193
corporation, neighbor, tenant, or nonprofit corporation	194
commencing the action makes a written request for ordinary mail	195
service of the complaint and notice, or uses publication service,	196
in accordance with the Rules of Civil Procedure, then a copy of	197
the complaint and notice shall be posted in a conspicuous place	198
on the building, land, or subsidized housing.	199

(b) The judge in a civil action described in division (B)(1)	200
of this section shallmay conduct a summary hearing to consider	201
and issue any temporary orders that are necessary to protect the	202
public health, welfare, and safety pending further proceedings.	203

(c) The judge shall conduct a hearing on the complaint at	204
least twenty-eight days after the owner of the building, land, or	205
subsidized housing and the other interested parties have been	206
served with a copy of the complaint and the notice of the date	207
and time of the hearing in accordance with division (B)(2)(a) of	208
this section.	209

(c)(d) In considering whether subsidized housing is a public	210
nuisance, the judge shall construe the standards set forth in	211
division (A)(2)(b)(A)(3)(c) of this section in a manner	212
consistent with department of housing and urban development and	213
judicial interpretations of those standards. The judge shall deem	214
that the property is not a public nuisance if during the twelve	215
months prior to the service of the notice that division (B)(1)(b)	216
of this section requires, the department of housing and urban	217
development's real estate assessment center issued a score of	218
seventy-five or higher out of a possible one hundred points	219
pursuant to its regulations governing the physical condition of	220
multifamily properties pursuant to 24 C.F.R. part 200, subpart P,	221
and since the most recent inspection, there has been no	222
significant change in the property's conditions that would create	223
a serious threat to the health, safety, or welfare of the	224
property's tenants.	225

(C)(1) If the judge in a civil action described in division	226
(B)(1) of this section finds at the hearing required by division	227
(B)(2) of this section that the building involved, land, or	228
subsidized housing is a public nuisance, if the judge	229
additionally determines that the owner of the building, land, or	230
subsidized housing previously has not been afforded a reasonable	231
opportunity to abate the public nuisance or has been afforded	232
such an opportunity and has not refused or failed to abate the	233
public nuisance, and if the complaint of the municipal	234
corporation, neighbor, tenant, or nonprofit corporation	235
commencing the action requested the issuance of an injunction as	236
described in this division, then the judge may issue an	237
injunction requiring the owner of the building, land, or	238
subsidized housing to abate the public nuisance or issue any	239
other order that the judge considers necessary or appropriate to	240
cause the abatement of the public nuisance. If an injunction is	241
issued pursuant to this division, the owner of the building	242
involved, land, or subsidized housing shall be given no more than	243
thirty days from the date of the entry of the judge's order to	244
comply with the injunction, unless the judge, for good cause	245
shown, extends the time for compliance.	246

(2) If the judge in a civil action described in division	247
(B)(1) of this section finds at the hearing required by division	248
(B)(2) of this section that theinvolves a building involvedis a	249
public nuisance, ifand the judge additionally determines that	250
the owner of the building previously has been afforded a	251
reasonable opportunity to abate the public nuisance and has	252
refused or failed to do so, and if the complaint of the	253
municipal corporation, neighbor, tenant, or nonprofit corporation	254
commencing the action requested relief as described in this	255
division, then the judge shall offer any mortgagee, lienholder,	256
or other interested party associated with the property on which	257
the building is located, in the order of the priority of	258
interest in title, the opportunity to undertake the work and to	259
furnish the materials necessary to abate the public nuisance.	260
Prior to selecting any interested party, the judge shall require	261
the interested party to demonstrate the ability to promptly	262
undertake the work and furnish the materials required, to provide	263
the judge with a viable financial and construction plan for the	264
rehabilitation of the building as described in division (D) of	265
this section, and to post security for the performance of the	266
work and the furnishing of the materials.	267

(2) If the judge determines, at the hearing, that the owner	268
of the building, land, or subsidized housing previously has been	269
afforded a reasonable opportunity to abate the public nuisance and	270
has refused or failed to do so and, if the civil action involves a	271
building, that no interested party associated with the property on	272
which the building is located is willing or able to undertake the	273
work and to furnish the materials necessary to abate the public	274
nuisance, or if the judge determines, at any time after the	275
hearing, that any party who is undertaking corrective work	276
pursuant to this division cannot or will not proceed, or has not	277
proceeded with due diligence, the judge may appoint a receiver	278
pursuant to division (C)(3) of this section to take possession and	279
control of the building, land, or subsidized housing.	280

(3)(a) The judge in a civil action described in division	281
(B)(1) of this section shall not appoint any person as a receiver	282
unless the person first has provided the judge with a viable	283
financial and construction plan for the rehabilitation of the	284
building involved, land, or subsidized housing as described in	285
division (D) of this section and has demonstrated the capacity	286
and expertise to perform the required work and to furnish the	287
required materials in a satisfactory manner. An appointed	288
receiver may be a financial institution that possesses an interest	289
of record in the building or the property on which it is located,	290
land, or subsidized housing, a nonprofit corporation as	291
described in divisions (B)(1) and (C)(3)(b) of this section,	292
including, but not limited to, a nonprofit corporation that	293
commenced the action described in division (B)(1) of this	294
section, or any other qualified property manager.	295

(b) To be eligible for appointment as a receiver, no part of	296
the net earnings of a nonprofit corporation shall inure to the	297
benefit of any private shareholder or individual. Membership on	298
the board of trustees of a nonprofit corporation appointed as a	299
receiver does not constitute the holding of a public office or	300
employment within the meaning of sections 731.02 and 731.12 or any	301
other section of the Revised Code and does not constitute a direct	302
or indirect interest in a contract or expenditure of money by any	303
municipal corporation. A member of a board of trustees of a	304
nonprofit corporation appointed as a receiver shall not be	305
disqualified from holding any public office or employment, and	306
shall not forfeit any public office or employment, by reason of	307
membership on the board of trustees, notwithstanding any law to	308
the contrary.	309

(D) Prior to ordering an owner, interested party, or receiver	310
to undertake any work to be undertaken, or the furnishing of any	311
materials, to abate a public nuisance under this section, the	312
judge in a civil action described in division (B)(1) of this	313
section shall review the submitted financial and construction plan	314
for the rehabilitation of the building involved, land, or	315
subsidized housing and, if it specifies all of the following,	316
shall approve that plan:	317

(1) The estimated cost of the labor, materials, and any other	318
development costs that are required to abate the public nuisance;	319

(2) The estimated income and expenses of the building and the	320
property on which it is located, land, or subsidized housing after	321
the furnishing of the materials and the completion of the repairs	322
and improvements;	323

(3) The terms, conditions, and availability of any financing	324
that is necessary to perform the work and to furnish the	325
materials;	326

(4) If repair and rehabilitation of thea building are found	327
not to be feasible, the cost of demolition of the building or of	328
the portions of the building that constitute the public nuisance.	329

(E) Upon the written request of any of the interested parties	330
to have a building, or portions of a building, that constitute a	331
public nuisance demolished because repair and rehabilitation of	332
the building are found not to be feasible, the judge may order the	333
demolition. However, the demolition shall not be ordered unless	334
the requesting interested parties have paid the costs of	335
demolition and, if any, of the receivership, and, if any, all	336
notes, certificates, mortgages, and fees of the receivership.	337

(F) Before proceeding with the duties of receiver, any	338
receiver appointed by the judge in a civil action described in	339
division (B)(1) of this section may be required by the judge to	340
post a bond in an amount fixed by the judge, but not exceeding the	341
value of the building involved, land, or subsidized housing as	342
determined by the judge.	343

The judge may empower the receiver to do any or all of the	344
following:	345

(1) Take possession and control of the building and the	346
property on which it is located, land, or subsidized housing,	347
operate and manage the building and the property, land, or	348
subsidized housing, establish and collect rents and income, lease	349
and rent the building and the property, land, or subsidized	350
housing, and evict tenants;	351

(2) Pay all expenses of operating and conserving the building	352
and the property, land, or subsidized housing, including, but not	353
limited to, the cost of electricity, gas, water, sewerage,	354
heating fuel, repairs and supplies, custodian services, taxes and	355
assessments, and insurance premiums, and hire and pay reasonable	356
compensation to a managing agent;	357

(3) Pay pre-receivership mortgages or installments of them	358
and other liens;	359

(4) Perform or enter into contracts for the performance of	360
all work and the furnishing of materials necessary to abate, and	361
obtain financing for the abatement of, the public nuisance;	362

(5) Pursuant to court order, remove and dispose of any	363
personal property abandoned, stored, or otherwise located in or on	364
the building and the property on which the building is located,	365
land, or subsidized housing that creates a dangerous or unsafe	366
condition or that constitutes a violation of any local building,	367
housing, air pollution, sanitation, health, fire, zoning, or	368
safety code, ordinance, or regulation;	369

(6) Obtain mortgage insurance for any receiver's mortgage	370
from any agency of the federal government;	371

(7) Enter into any agreement and do those things necessary to	372
maintain and preserve the building and the property on which the	373
building is located, land, or subsidized housing and comply with	374
all local building, housing, air pollution, sanitation, health,	375
fire, zoning, or safety codes, ordinances, and regulations;	376

(8) Give the custody of the building and the property on	377
which the building is located, land, or subsidized housing, and	378
the opportunity to abate the nuisance and operate the building	379
and property, land, or subsidized housing, to its owner or any	380
mortgagee or lienholder of record;	381

(9) Issue notes and secure them by a mortgage bearing	382
interest, and upon terms and conditions, that the judge approves.	383
When sold or transferred by the receiver in return for valuable	384
consideration in money, material, labor, or services, the notes or	385
certificates shall be freely transferable. Any mortgages granted	386
by the receiver shall be superior to any claims of the receiver.	387
Priority among the receiver's mortgages shall be determined by the	388
order in which they are recorded.	389

(G) A receiver appointed pursuant to this section is not	390
personally liable except for misfeasance, malfeasance, or	391
nonfeasance in the performance of the functions of the office of	392
receiver.	393

(H)(1) The judge in a civil action described in division	394
(B)(1) of this section may assess as court costs, the expenses	395
described in division (F)(2) of this section, and may approve	396
receiver's fees to the extent that they are not covered by the	397
income from the property. Subject to that limitation, a receiver	398
appointed pursuant to divisions (C)(2) and (3) of this section is	399
entitled to receive fees in the same manner and to the same extent	400
as receivers appointed in actions to foreclose mortgages.	401

(2)(a) Pursuant to the police powers vested in the state, all	402
expenditures of a mortgagee, lienholder, or other interested party	403
that has been selected pursuant to division (C)(2)(1) of this	404
section to undertake the work and to furnish the materials	405
necessary to abate a public nuisance, and any expenditures in	406
connection with the foreclosure of the lien created by this	407
division, is a first lien upon the building involved and the	408
property on which itthe building is located, land, or subsidized	409
housing and is superior to all prior and subsequent liens or	410
other encumbrances associated with the building or theand	411
property, land, or subsidized housing including, but not limited	412
to, those for taxes and assessments, upon the occurrence of both	413
of the following:	414

(i) The prior approval of the expenditures by, and the entry	415
of a judgment to that effect by, the judge in the civil action	416
described in division (B)(1) of this section;	417

(ii) The recordation of a certified copy of the judgment	418
entry and a sufficient description of the property on which the	419
building is located, land, or subsidized housing with the county	420
recorder in the county in which the property is located within	421
sixty days after the date of the entry of the judgment.	422

(b) Pursuant to the police powers vested in the state, all	423
expenses and other amounts paid in accordance with division (F) of	424
this section by a receiver appointed pursuant to divisions (C)(2)	425
and (3) of this section, the amounts of any notes issued by the	426
receiver in accordance with division (F) of this section, all	427
mortgages granted by the receiver in accordance with that	428
division, the fees of the receiver approved pursuant to division	429
(H)(1) of this section, and any amounts expended in connection	430
with the foreclosure of a mortgage granted by the receiver in	431
accordance with division (F) of this section or with the	432
foreclosure of the lien created by this division, are a first lien	433
upon the building involved and the property on which itthe	434
building is located, land, or subsidized housing and are superior	435
to all prior and subsequent liens or other encumbrances	436
associated with the building or theand property, land, or	437
subsidized housing, including, but not limited to, those for	438
taxes and assessments, upon the occurrence of both of the	439
following:	440

(i) The approval of the expenses, amounts, or fees by, and	441
the entry of a judgment to that effect by, the judge in the civil	442
action described in division (B)(1) of this section; or the	443
approval of the mortgages in accordance with division (F)(9) of	444
this section by, and the entry of a judgment to that effect by,	445
that judge;	446

(ii) The recordation of a certified copy of the judgment	447
entry and a sufficient description of the property on which the	448
building is located, land, or subsidized housing, or, in the	449
case of a mortgage, the recordation of the mortgage, a certified	450
copy of the judgment entry, and such a description, with the	451
county recorder of the county in which the property is located	452
within sixty days after the date of the entry of the judgment.	453

(c) Priority among the liens described in divisions (H)(2)(a)	454
and (b) of this section shall be determined as described in	455
division (I) of this section. Additionally, the creation pursuant	456
to this section of a mortgage lien that is prior to or superior to	457
any mortgage of record at the time the mortgage lien is so	458
created, does not disqualify the mortgage of record as a legal	459
investment under Chapter 1107. or 1151. or any other chapter of	460
the Revised Code.	461

(I)(1) If a receiver appointed pursuant to divisions (C)(2)	462
and (3) of this section files with the judge in the civil action	463
described in division (B)(1) of this section a report indicating	464
that the public nuisance has been abated, if the judge confirms	465
that the receiver has abated the public nuisance, and if the	466
receiver or any interested party requests the judge to enter an	467
order directing the receiver to sell the building and the property	468
on which itthe building is located, land, or subsidized housing,	469
the judge may enter that order after holding a hearing as	470
described in division (I)(2) of this section and otherwise	471
complying with that division.	472

(2)(a) The receiver or interested party requesting an order	473
as described in division (I)(1) of this section shall cause a	474
notice of the date and time of a hearing on the request to be	475
served on the owner of the building involved, land, or subsidized	476
housing and all other interested parties in accordance with	477
division (B)(2)(a) of this section. The judge in the civil action	478
described in division (B)(1) of this section shall conduct the	479
scheduled hearing. At the hearing, if the owner or any	480
interested party objects to the sale of the building and the	481
property, land, or subsidized housing, the burden of proof shall	482
be upon the objecting person to establish, by a preponderance of	483
the evidence, that the benefits of not selling the building and	484
the property, land, or subsidized housing outweigh the benefits	485
of selling them. If the judge determines that there is no	486
objecting person, or if the judge determines that there is one or	487
more objecting persons but no objecting person has sustained the	488
burden of proof specified in this division, the judge may enter	489
an order directing the receiver to offer the building and the	490
property, land, or subsidized housing for sale upon terms and	491
conditions that the judge shall specify.	492

(b) In any sale of subsidized housing that is ordered	493
pursuant to this section, the judge shall specify that the	494
subsidized housing not be conveyed unless that conveyance complies	495
with applicable federal law and applicable program contracts for	496
that housing. Any such conveyance shall be subject to the	497
condition that the purchaser enter into a contract with the	498
department of housing and urban development or the rural housing	499
service of the federal department of agriculture under which the	500
property continues to be subsidized housing and the owner	501
continues to operate that property as subsidized housing unless	502
the secretary of housing and urban development or the	503
administrator of the rural housing service terminates that	504
property's contract prior to or upon the conveyance of the	505
property.	506

(3) If a sale of a building and the property, on which it is	507
located, land, or subsidized housing is ordered pursuant to	508
divisions (I)(1) and (2) of this section and if the sale occurs	509
in accordance with the terms and conditions specified by the	510
judge in the judge's order of sale, then the receiver shall	511
distribute the proceeds of the sale and the balance of any	512
funds that the receiver may possess, after the payment of the	513
costs of the sale, in the following order of priority and in the	514
described manner:	515

(a) First, in satisfaction of any notes issued by the	516
receiver pursuant to division (F) of this section, in their order	517
of priority;	518

(b) Second, any unreimbursed expenses and other amounts paid	519
in accordance with division (F) of this section by the receiver,	520
and the fees of the receiver approved pursuant to division (H)(1)	521
of this section;	522

(c) Third, all expenditures of a mortgagee, lienholder, or	523
other interested party that has been selected pursuant to division	524
(C)(2)(1) of this section to undertake the work and to furnish the	525
materials necessary to abate a public nuisance, provided that the	526
expenditures were approved as described in division (H)(2)(a) of	527
this section and provided that, if any such interested party	528
subsequently became the receiver, its expenditures shall be paid	529
prior to the expenditures of any of the other interested parties	530
so selected;	531

(d) Fourth, the amount due for delinquent taxes, assessments,	532
charges, penalties, and interest owed to this state or a political	533
subdivision of this state, provided that, if the amount available	534
for distribution pursuant to division (I)(3)(d) of this section is	535
insufficient to pay the entire amount of those taxes, assessments,	536
charges, penalties, and interest, the proceeds and remaining funds	537
shall be paid to each claimant in proportion to the amount of	538
those taxes, assessments, charges, penalties, and interest that	539
each is due.	540

(e) The amount of any pre-receivership mortgages, liens, or	541
other encumbrances, in their order of priority.	542

(4) Following a distribution in accordance with division	543
(I)(3) of this section, the receiver shall request the judge in	544
the civil action described in division (B)(1) of this section to	545
enter an order terminating the receivership. If the judge	546
determines that the sale of the building and the property on which	547
it is located, land, or subsidized housing, occurred in accordance	548
with the terms and conditions specified by the judge in the	549
judge's order of sale under division (I)(2) of this section and	550
that the receiver distributed the proceeds of the sale and the	551
balance of any funds that the receiver possessed, after the	552
payment of the costs of the sale, in accordance with division	553
(I)(3) of this section, and if the judge approves any final	554
accounting required of the receiver, the judge may terminate the	555
receivership.	556

(J)(1) A receiver appointed pursuant to divisions (C)(2) and	557
(3) of this section may be discharged at any time in the	558
discretion of the judge in the civil action described in division	559
(B)(1) of this section. The receiver shall be discharged by the	560
judge as provided in division (I)(4) of this section, or when all	561
of the following have occurred:	562

(a) The public nuisance has been abated;

563

(b) All costs, expenses, and approved fees of the	564
receivership have been paid;	565

(c) Either all receiver's notes issued and mortgages granted	566
pursuant to this section have been paid, or all the holders of the	567
notes and mortgages request that the receiver be discharged.	568

(2) If a judge in a civil action described in division (B)(1)	569
of this section determines that, and enters of record a	570
declaration that, a public nuisance has been abated by a receiver,	571
and if, within three days after the entry of the declaration, all	572
costs, expenses, and approved fees of the receivership have not	573
been paid in full, then, in addition to the circumstances	574
specified in division (I) of this section for the entry of such an	575
order, the judge may enter an order directing the receiver to sell	576
the building involved and the property on which itthe building is	577
located, land, or subsidized housing. Any such order shall be	578
entered, and the sale shall occur, only in compliance with	579
division (I) of this section.	580

(K) The title in any building, and in the property on which	581
itthe building is located, land, or subsidized housing, that is	582
sold at a sale ordered under division (I) or (J)(2) of this	583
section shall be incontestable in the purchaser and shall be	584
free and clear of all liens for delinquent taxes, assessments,	585
charges, penalties, and interest owed to this state or any	586
political subdivision of this state, that could not be satisfied	587
from the proceeds of the sale and the remaining funds in the	588
receiver's possession pursuant to the distribution under division	589
(I)(3) of this section. Alland of all other liens and	590
encumbrances with respect to the building and the property shall	591
survive the sale, including, but not limited to, land, or	592
subsidized housing, except a federal tax lien notice that was	593
properly filed in accordance with section 317.09 of the Revised	594
Code prior to the time of the sale, and the easements and	595
covenants of record running with the property that were created	596
prior to the time of the sale.	597

(L)(1) Nothing in this section shall be construed as a	598
limitation upon the powers granted to a court of common pleas, a	599
municipal court or a housing or environmental division of a	600
municipal court under Chapter 1901. of the Revised Code, or a	601
county court under Chapter 1907. of the Revised Code.	602

(2) The monetary and other limitations specified in Chapters	603
1901. and 1907. of the Revised Code upon the jurisdiction of	604
municipal and county courts, and of housing or environmental	605
divisions of municipal courts, in civil actions do not operate as	606
limitations upon any of the following:	607

(a) Expenditures of a mortgagee, lienholder, or other	608
interested party that has been selected pursuant to division	609
(C)(2)(1) of this section to undertake the work and to furnish the	610
materials necessary to abate a public nuisance;	611

(b) Any notes issued by a receiver pursuant to division (F)	612
of this section;	613

(c) Any mortgage granted by a receiver in accordance with	614
division (F) of this section;	615

(d) Expenditures in connection with the foreclosure of a	616
mortgage granted by a receiver in accordance with division (F) of	617
this section;	618

(e) The enforcement of an order of a judge entered pursuant	619
to this section;	620

(f) The actions that may be taken pursuant to this section by	621
a receiver or a mortgagee, lienholder, or other interested party	622
that has been selected pursuant to division (C)(2)(1) of this	623
section to undertake the work and to furnish the materials	624
necessary to abate a public nuisance.	625

(3) A judge in a civil action described in division (B)(1) of	626
this section, or the judge's successor in office, has continuing	627
jurisdiction to review the condition of any building, land, or	628
subsidized housing that was determined to be a public nuisance	629
pursuant to this section.	630

Section 2. That existing section 3767.41 of the Revised Code	631
is hereby repealed.	632