As Introduced

127th General Assembly
Regular Session
2007-2008
S. B. No. 277


Senator Stivers 

Cosponsors: Senators Seitz, Miller, D., Kearney 

A BILL
To enact sections 1901.185 and 3767.50 of the Revised 1
Code to create a new cause of action in 2
foreclosure in the environmental or housing3
division of a municipal court to abate nuisance 4
properties.5


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

       Section 1. That sections 1901.185 and 3767.50 of the Revised 6
Code be enacted to read as follows:7

       Sec. 1901.185.  In addition to jurisdiction otherwise granted 8
in this chapter, the environmental or housing division, where 9
established, of the municipal court shall have jurisdiction within 10
its territory in all of the following actions or proceedings and 11
to perform all of the following functions:12

       (A) To hear actions arising under section 3767.50 of the 13
Revised Code;14

       (B) In any action authorized by section 3767.50 of the 15
Revised Code, the environmental or housing division of the 16
municipal court, where established, shall exercise exclusive 17
original jurisdiction to make findings and orders pertaining to 18
nuisance properties.19

       (C) When in aid of execution of a judgment of the 20
environmental or housing division of the municipal court rendered 21
pursuant to section 3767.50 of the Revised Code, in actions for 22
the foreclosure of a mortgage on real property given to secure the 23
payment of money, or the enforcement of a specific lien for money 24
or other encumbrance or charge on real property, when the real 25
property is situated within the territory, and, in those cases, 26
the environmental or housing division may proceed to foreclose all 27
liens and all vested and contingent rights and proceed to render 28
judgments, and make findings and orders, between the parties, in 29
the same manner and to the same extent as in similar cases in the 30
court of common pleas.31

       Sec. 3767.50. (A) For purposes of this section:32

       (1) "Nuisance property" means a building, premises, real 33
estate, or an appurtenance thereto that is vacant and meets any 34
of the following:35

       (a) It is out of compliance with any applicable building, 36
housing, air pollution, sanitation, health, fire, zoning, or 37
safety code or it is a blighted parcel as defined in section 1.08 38
of the Revised Code.39

       (b) Real property taxes remain unpaid on the property at the 40
time the county auditor delivers the duplicate of the delinquent 41
land list to the county treasurer under section 5721.011 of the 42
Revised Code.43

       (c) The existence of a nuisance or public nuisance on the 44
property has been admitted or established in a civil action under 45
section 3767.03 or 3767.41 of the Revised Code and the property 46
owner has failed to abate the nuisance or public nuisance as 47
otherwise required under this chapter.48

       (d) The property was used or occupied by a criminal gang as 49
defined in section 2923.41 of the Revised Code on more than two 50
occasions within a one-year period to engage in a pattern of 51
criminal gang activity as defined in section 2923.41 of the 52
Revised Code.53

       (e) The property is used in violation of Chapter 2915. of the 54
Revised Code.55

        (2) "Owner" means any of the following:56

       (a) The owner of record as shown on the current tax list of 57
the county auditor.58

       (b) The mortgage holder of record, if any, as shown in the 59
mortgage records of the county recorder.60

        (c) A person who has a freehold or lesser estate in the 61
premises.62

       (d) A mortgagee or vendee in possession who evidences charge, 63
care, or control of the premises, including, but not limited to, a 64
person to whom the sheriff has issued a deed for the premises 65
after a judicial sale regardless of whether the deed has been 66
recorded.67

       (e) A person who has charge, care, or control of the premises 68
as agent, executor, administrator, assignee, receiver, trustee, 69
guardian, or lessee.70

       (f) A person who holds the person's self out to be in charge, 71
care, or control of the premises as evidenced by the negotiation 72
of written or oral lease agreements for the premises, the 73
collection of rents for the premises, the performance of 74
maintenance or repairs on the premises, or the authorization of 75
others to perform maintenance or repairs on the premises.76

       (B) A municipal corporation, in addition to any other remedy 77
authorized by law, has a cause of action to foreclose liens upon a 78
nuisance property located in the municipal corporation. The 79
environmental or housing division of the municipal court has 80
exclusive original jurisdiction of the action. To maintain the 81
action, it is not necessary for the municipal corporation to have 82
a lien of its own upon the property. Rather, it is sufficient for 83
the municipal corporation to allege that, because of the 84
continuing existence of conditions causing the property to be 85
nuisance property, the owner has defaulted on the terms of any 86
agreement giving rise to a lien for failure to maintain the 87
property, and then to marshal and plead for foreclosure of any or 88
all outstanding liens upon the nuisance property. The municipal 89
corporation shall not marshal a lien held by the United States, 90
by this state, or by a political subdivision other than itself, 91
or a lien vested by a tax certificate held under sections 5721.30 92
to 5721.43 of the Revised Code. The municipal corporation shall 93
join as a party to the action a lienholder whose lien is being 94
marshaled and shall notify the lienholder party that the municipal 95
corporation is proceeding to foreclose the lien under this section 96
and that the lienholder party may abate the nuisance. If a 97
lienholder party abates the nuisance within forty-five days after 98
the party is served with notice of the foreclosure action, the 99
municipal corporation shall move to dismiss the action.100

       In a judicial sale of a nuisance property that is ordered as 101
a result of the foreclosure action, the priority of distribution 102
of the proceeds from the sale shall not be altered because the 103
municipal corporation marshaled and foreclosed on one or more 104
liens. Rather, proceeds from the sale shall be distributed 105
according to the priorities otherwise established by law.106

       (C)(1) With respect to any nuisance property that is or may 107
be subject to an action under this section, the municipal 108
corporation may notify the taxing authority of each taxing unit in 109
which the nuisance property is located that the municipal 110
corporation is proceeding to foreclose the lien under this 111
section. The notice shall state that the taxing authority may 112
preserve its claim on any distributions of delinquent or unpaid 113
taxes and assessments charged against the property and arising 114
from the judicial sale proceeds by responding in writing to the 115
municipal corporation within a period of time to be specified in 116
the notice. The written response shall be certified by the taxing 117
authority or by the fiscal officer or other person authorized by 118
the taxing authority to respond. If such a response is received by 119
the municipal corporation within the specified time, or if such a 120
notice is not provided, the taxing authority's claim on 121
distributions of delinquent or unpaid taxes and assessments 122
charged against the property and payable from proceeds of the 123
judicial sale shall be preserved and shall be disposed of in the 124
priority and manner otherwise prescribed by law. If such a notice 125
is provided and the response is not received within the specified 126
time, the taxing authority's claim on the delinquent or unpaid 127
taxes and assessments is extinguished, the lien for such taxes is 128
satisfied and discharged to the extent of that claim, and the 129
property may be sold at judicial sale free and clear of such lien 130
to that extent, unless the successful bidder at the judicial sale 131
is a lienholder of the property. If the successful bidder is a 132
lienholder of the property, the lien for all delinquent or unpaid 133
taxes and assessments charged against the property shall continue 134
until discharged as otherwise provided by law.135

       (2) The taxing authority of a taxing unit and a municipal 136
corporation may enter into an agreement whereby the taxing 137
authority consents in advance to release the taxing authority's 138
claim on distributions of delinquent or unpaid taxes and 139
assessments charged against nuisance properties in the taxing 140
unit's territory and waives its right to prior notice and response 141
under division (C)(1) of this section. The agreement shall provide 142
for any terms and conditions on the release of such claim as are 143
mutually agreeable to the taxing authority and municipal 144
corporation, including any option vesting in the taxing authority 145
the right to revoke its release with respect to any nuisance 146
property before the release becomes effective, and the manner in 147
which notice of such revocation shall be effected.148