Cosponsors:
Senators Seitz, Miller, D., Kearney, Goodman, Schuring, Fedor, Harris, Mason, Miller, R., Mumper, Roberts, Sawyer, Cates
Representatives Hughes, Bacon, Boyd, Celeste, DeBose, Domenick, Flowers, Foley, Goyal, Grady, Harwood, Heard, Letson, Luckie, McGregor, J., Nero, Oelslager, Sayre, Skindell, Stewart, D., Ujvagi, Yuko
(B) When in aid of execution of a judgment of the
| 16 |
environmental division of the municipal court rendered
pursuant | 17 |
to section 3767.50 of the Revised Code, in actions for
the | 18 |
foreclosure of a mortgage on real property given to secure the
| 19 |
payment of money, or the enforcement of a specific lien for money
| 20 |
or other encumbrance or charge on real property, when the real
| 21 |
property is situated within the territory, to foreclose all
liens | 22 |
and
all vested and contingent rights, render
judgments,
and | 23 |
make findings and orders, between the parties, in
the same | 24 |
manner and to the same extent as in similar cases in the
court of | 25 |
common pleas. | 26 |
(B)(1) A municipal corporation, in addition to any other | 49 |
remedy
authorized by law, has a cause of action in the | 50 |
environmental division of the municipal court to foreclose any | 51 |
existing
liens upon a blighted parcel located in the municipal | 52 |
corporation
provided that no other foreclosure action affecting | 53 |
the blighted
parcel is being actively prosecuted in any court of | 54 |
record. It is
an affirmative defense to an action under this | 55 |
division that the
owner of the blighted parcel has not been in | 56 |
default on any
mortgage on the property for twelve months or more | 57 |
or that there
is a bankruptcy proceeding pending in which the | 58 |
blighted parcel
has been listed as an asset. To maintain the
| 59 |
action, it is
not necessary for the
municipal corporation to | 60 |
have
a lien of its
own upon the
property. Rather, it is | 61 |
sufficient for
the municipal
corporation
to allege that, | 62 |
because of the
continuing existence of
conditions causing the | 63 |
property to be
a blighted parcel, the
owner
has defaulted on | 64 |
the terms of any
agreement giving rise
to
a lien
for failure | 65 |
to maintain the
property, and then to
marshal
and
plead for | 66 |
foreclosure of any or
all outstanding
liens upon
the
blighted | 67 |
parcel. Section 3767.50 of the Revised
Code does not
create a | 68 |
cause of action regarding any property not
subject to a
lien. | 69 |
The municipal
corporation shall not marshal a
lien held by
the | 70 |
United States,
a lien held by this state other than a lien for | 71 |
real property taxes and assessments, a lien held by a political
| 72 |
subdivision
other than itself,
or a lien vested by a tax | 73 |
certificate held
under sections 5721.30
to 5721.43 of the | 74 |
Revised Code. The
municipal corporation shall
join as a party to | 75 |
the action a
lienholder whose lien is being
marshaled and shall | 76 |
notify the
lienholder party that the municipal
corporation is | 77 |
proceeding to
foreclose the lien under this section
and that the | 78 |
lienholder
party may remediate the conditions of the parcel | 79 |
constituting
blight. If a
lienholder party certifies to the | 80 |
court that the
party will remediate the conditions of the parcel | 81 |
constituting
blight within sixty days after
the party is served | 82 |
with a copy of
the complaint of the foreclosure action, the
| 83 |
municipal
corporation shall move to dismiss the action. | 84 |
(C)(1) With respect to any blighted parcel that is or may
be | 93 |
subject to an action under this section, the municipal
| 94 |
corporation may notify the taxing authority of each taxing unit in
| 95 |
which the blighted parcel is located that the municipal
| 96 |
corporation is proceeding to foreclose the lien under this
| 97 |
section. The notice shall state that the taxing authority may
| 98 |
preserve its claim on any distributions of delinquent or unpaid
| 99 |
taxes and assessments charged against the blighted parcel and | 100 |
arising
from the judicial sale proceeds by responding in writing | 101 |
to the
municipal corporation within a period of time to be | 102 |
specified in
the notice. The written response shall be certified | 103 |
by the taxing
authority or by the fiscal officer or other person | 104 |
authorized by
the taxing authority to respond. If such a response | 105 |
is received by
the municipal corporation within the specified | 106 |
time, or if such a
notice is not provided, the taxing authority's | 107 |
claim on
distributions of delinquent or unpaid taxes and | 108 |
assessments
charged against the blighted parcel and payable from | 109 |
proceeds of the
judicial sale shall be preserved and shall be | 110 |
disposed of in the
priority and manner otherwise prescribed by | 111 |
law. If such a notice
is provided and the response is not | 112 |
received within the specified
time, the taxing authority's claim | 113 |
on the delinquent or unpaid
taxes and assessments is | 114 |
extinguished, the lien for such taxes is
satisfied and discharged | 115 |
to the extent of that claim, and the
blighted parcel may be sold | 116 |
at judicial sale free and clear of such lien
to that extent, | 117 |
unless the successful bidder at the judicial sale
is a lienholder | 118 |
of the blighted parcel. If the successful bidder is a
lienholder | 119 |
of the blighted parcel, the lien for all delinquent or unpaid
| 120 |
taxes and assessments charged against the blighted parcel shall | 121 |
continue
until discharged as otherwise provided by law. | 122 |
(2) The taxing authority of a taxing unit and a municipal
| 123 |
corporation may enter into an agreement whereby the taxing
| 124 |
authority consents in advance to release the taxing authority's
| 125 |
claim on distributions of delinquent or unpaid taxes and
| 126 |
assessments charged against blighted parcels in the taxing
unit's | 127 |
territory and waives its right to prior notice and response
under | 128 |
division (C)(1) of this section. The agreement shall provide
for | 129 |
any terms and conditions on the release of such claim as are
| 130 |
mutually agreeable to the taxing authority and municipal
| 131 |
corporation, including any option vesting in the taxing authority
| 132 |
the right to revoke its release with respect to any
blighted | 133 |
parcel before the release becomes effective, and the manner in
| 134 |
which notice of such revocation shall be effected. | 135 |