As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 323

Representative Murray 

Cosponsors: Representatives Chandler, Letson, Okey, Phillips, Koziura, Yuko, Domenick, Foley, Pillich, Driehaus 

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A BILL

To amend sections 2323.07, 2329.01, 2329.02, 2329.07,

1

2329.33, and 3767.41 and to enact sections

2

2308.01 to 2308.06 of the Revised Code relative

3

to foreclosure actions and certain related

4

nuisance abatement actions.

5

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

Section 1. That sections 2323.07, 2329.01, 2329.02, 2329.07,	6
2329.33, and 3767.41 be amended and sections 2308.01, 2308.02,	7
2308.03, 2308.04, 2308.05, and 2308.06 of the Revised Code be	8
enacted to read as follows:	9

Sec. 2308.01. As used in this chapter:

10

(A) "Abate," "abatement," and "neighbor" have the same	11
meanings as in section 3767.41 of the Revised Code.	12

(B) "Residential area commercial property mortgage" means an	13
obligation to pay a sum of money evidenced by a note and secured	14
by a lien upon a commercial property that meets all of the	15
following criteria:	16

(1) The structure or structures on the property total less	17
than four thousand square feet.	18

(2) The property is located within five hundred feet of a	19
residential property.	20

(3) The property is not a brownfield, as defined in section	21
122.65 of the Revised Code.	22

(C) "Residential mortgage" means an obligation to pay a sum	23
of money evidenced by a note and secured by a lien upon a	24
residential property.	25

(D) "Residential property" means real property located within	26
this state consisting of land and a structure on that land	27
containing four or fewer dwelling units, each of which is intended	28
for occupancy by a separate household. "Residential property"	29
includes a residential condominium unit owned by an individual,	30
notwithstanding the number of units in the structure, and a	31
manufactured or mobile home that is subject to real property taxes	32
under section 4503.06 of the Revised Code.	33

(E) "Tenant" has the same meaning as in section 5321.01 of	34
the Revised Code.	35

Sec. 2308.02. (A) No person shall file a complaint to	36
initiate a residential mortgage foreclosure action unless that	37
complaint is accompanied by a writing that contains all of the	38
following:	39

(1) A statement setting forth the name of the holder of the	40
note and asserting that the named holder is the true party in	41
interest with a right to file the action;	42

(2) A statement as to whether the mortgage note has been	43
securitized and if so, the identity of any mortgage-backed	44
security that holds the loan and the name of the trustee of that	45
mortgage-backed security;	46

(3) A statement, based on the best information of the person	47
making the filing, as to whether the residential property is	48
occupied and the date that its occupancy status last was assessed.	49

(B) Within fourteen days after filing a complaint to initiate	50
a residential mortgage foreclosure action, the plaintiff shall	51
file with the clerk the preliminary judicial report that section	52
2329.191 of the Revised Code requires.	53

(C) If the mortgagor answers the summons and complaint the	54
clerk of court issues pursuant to a filing for foreclosure, within	55
forty-five days following that answer, the plaintiff shall file	56
with the clerk all of the following:	57

(1) Based on the best information of the plaintiff, an	58
estimate of the value of the property. This value may be the	59
value the auditor of the county in which the property is located	60
has assigned the property in the course of the auditor's most	61
recent valuation, a good faith estimate by the plaintiff	62
considering the property's current condition, or a formal	63
appraisal conducted by a real estate professional or a licensed	64
appraiser.	65

(2) A copy of a completed property status report in	66
substantially the following form or the form that a court	67
modifies by rule, at the court's discretion.	68

"Case Number:.......................	69

COURT OF COMMON PLEAS	70

........... COUNTY, OHIO	71

Judge	72

Residential Property Status Report	73

Address: ................................................	74

Titled Owner(s): ........................................	75

Number of Units: ..........   Occupied:   YES   NO	76

If YES, by whom: .....................	77

If NO, when vacated: .................	78

Current city code violations:   YES   NO  If YES, attach copy of	79
violation notice(s)	80

Abandoned/Unlicensed Vehicles:  YES   NO	81

Is this property the subject of litigation in any other	82
court?   YES   NO	83

Is owner a defendant in other foreclosure cases in this	84
court?   YES   NO	85

If YES, list case number(s):	86
............................................	87

How long has current owner owned property?	88
................................	89

If less than 5 years, list previous owners for last five years:	90

........................................................	91

Is this action being brought pursuant to:	92

(1) R.C. section 5721.39?   YES   NO	93

(2) The foreclosure of a residential mortgage loan?   YES   NO	94

(Please affix a color photograph of the premises not older than 30	95
days here)	96

I certify that the information contained herein is accurate and	97
true, to the best of my knowledge.	98

........................      .........................	99

Attorney for Plaintiff         Date"	100

(D)(1) In a residential mortgage foreclosure action, if the	101
mortgagor has not filed an answer to the summons and complaint	102
within sixty days after that answer is due, the plaintiff may file	103
with the clerk a motion for a default judgment beginning on the	104
sixty-first day after the answer is due and ending on the one	105
hundred twenty-first day after the answer is due. The plaintiff	106
shall include with the motion an affidavit attesting that the	107
affiant personally inspected the property, attempted to telephone	108
all residences located on the property, and directed	109
correspondence to all residences located on the property and that	110
the affiant has no reason to believe that the premises are	111
occupied. Upon receiving the motion and accompanying affidavit,	112
the clerk shall issue a default judgment in favor of the	113
plaintiff.	114

(2) In a residential mortgage foreclosure action, if the	115
mortgagor has not filed an answer to the summons and complaint	116
within sixty days after that answer is due, and the plaintiff does	117
not file a motion for a default judgment pursuant to division	118
(D)(1) of this section, the plaintiff's complaint is dismissed	119
with prejudice, the plaintiff is deemed to have abandoned any	120
right to the property or making any claim against the property,	121
and the plaintiff shall not receive any proceeds from a sale of	122
the property.	123

(E) A court may adopt by rule forms that incorporate the	124
information divisions (A) and (C) of this section require, and may	125
include on those forms any additional information that the court	126
requires, at the court's discretion.	127

Sec. 2308.03. (A) No court may issue a judgment that orders	128
the sale of a property that is the subject of a residential	129
mortgage foreclosure action or residential area commercial	130
property mortgage foreclosure action, and no county recorder	131
shall accept for recording any deed based on that sale, if that	132
property constitutes a public nuisance as defined in section	133
3767.41 of the Revised Code.	134

(B) Except as otherwise provided in division (D) of this	135
section, in any residential mortgage foreclosure action or	136
residential area commercial property mortgage foreclosure action,	137
a court may hold a hearing to determine whether there is probable	138
cause to believe that the property constitutes a public nuisance.	139
A court's determination that there is probable cause to believe	140
that the property is a public nuisance is a rebuttable	141
presumption. The court may hold a probably cause hearing on its	142
own accord or upon a request made pursuant to section 2308.04 of	143
the Revised Code. If the court holds such a hearing, the court	144
shall consider whether there is probable cause on the basis of	145
any of the following:	146

(1) Information the plaintiff provides, including information	147
contained in the property status report;	148

(2) Information in a public record that indicates the	149
existence of a building with air pollution, sanitation, health,	150
fire, zoning, or safety code violations or other conditions that	151
constitute a public nuisance;	152

(3) A court ordered inspection of the property, or a	153
voluntary authorization of inspection of the property under any	154
right of the plaintiff to enter the property.	155

(C)(1) In any hearing held pursuant to division (B) of this	156
section, the court shall provide the plaintiff in the foreclosure	157
action with notice of time, date, place, and purpose of the	158
hearing and provide the plaintiff an opportunity to present	159
information that the property is not a public nuisance or to	160
request the court to allow the plaintiff to abate the nuisance. If	161
the plaintiff wishes to have an opportunity to present information	162
of that nature or to abate the nuisance, the plaintiff shall	163
request the opportunity from the court within ten days after	164
receiving the court's notice of the hearing.	165

(2) If at the hearing a plaintiff elects to abate the	166
nuisance, the court shall grant that request and require the	167
plaintiff to report to the court within thirty days on the	168
progress the plaintiff is making in abating the nuisance. The	169
court shall continue with the foreclosure proceedings if it	170
determines that the plaintiff is making reasonable progress in	171
abating the nuisance condition. If the plaintiff does not make	172
reasonable progress in abating the nuisance or does not report as	173
required, the court immediately shall approve any request made	174
pursuant to section 2308.04 of the Revised Code to bring a	175
nuisance abatement action.	176

(D) A court shall stay any probable cause hearing on an	177
alleged nuisance condition if the mortgagee or any other judgment	178
creditor submits a writing to the court that pledges to bid at the	179
sale of the property at least the balance owed on the mortgage	180
principle on the property and, if the mortgagee or other judgment	181
creditor is the successful bidder at the sale, to abate the	182
nuisance subsequent to taking title to the property. If the court	183
stays a probable cause hearing pursuant to this division and if a	184
judgment creditor takes title to the property, not later than	185
thirty days after the judgment creditor takes title to the	186
property, the judgment creditor shall provide the court with a	187
written appraisal of progress in abating the alleged nuisance	188
conditions. If the court does not receive an appraisal of progress	189
within that time, the court may resume the probable cause hearing.	190

(E) If the court finds probable cause that the residential	191
property constitutes a public nuisance, the plaintiff shall file	192
notice of that finding with the agency that is responsible for	193
enforcement of housing occupancy codes within the municipal	194
corporation or county in which the residential property is	195
located, if there is such an agency. An agency inspecting the	196
residential property as a result of receiving such a notice may	197
charge the judgment debtor a reasonable fee to cover the costs of	198
the inspection.	199

Sec. 2308.04. (A) Any municipal corporation in which a	200
property is located, or any neighbor, tenant, or nonprofit	201
corporation that is duly organized and has as one of its goals the	202
improvement of housing conditions in the county or municipal	203
corporation in which the property is located may intervene as an	204
interested party at any time prior to the issuance of a judgment	205
in the foreclosure proceeding of a residential property to	206
request the court's permission to bring a civil action under	207
section 3767.41 of the Revised Code for the abatement of a	208
public nuisance.	209

(B) If pursuant to a request made pursuant to division (A) of	210
this section a court finds under section 2308.03 of the Revised	211
Code probable cause to believe that the property is a public	212
nuisance, the court may authorize the interested party to bring	213
an abatement action and the court shall stay the foreclosure	214
action to allow hearings to be held on the public nuisance	215
pursuant to section 3767.41 of the Revised Code. The interested	216
party shall apprise the court of its progress in the action in	217
writing not later than thirty days after the court grants	218
permission to bring an action. If the court does not receive this	219
notice within the specified time, it may resume the foreclosure	220
proceedings.	221

(C) In addition to the requirement that the court find	222
probable cause that the property is a public nuisance under	223
division (B) of section 2308.03 of the Revised Code, the court	224
may establish any guidelines it considers appropriate as a	225
condition of granting the interested party permission to bring	226
an abatement action against the residential property undergoing	227
foreclosure.	228

(D) Nothing in the section shall be construed as preventing a	229
court from staying a hearing when a judgment creditor complies	230
with division (D) of section 2308.03 of the Revised Code.	231

Sec. 2308.05. (A) Within sixty days after the clerk of court	232
provides lienholders with the notice of the filing of the	233
certificate of judgment under division (G) of section 2329.02 of	234
the Revised Code, the judgment creditor and any other lienholder	235
may file for a writ of execution of that judgment. A lienholder	236
other than the primary lienholder shall file for a contingent	237
writ of execution. A lienholder who fails to file for a writ	238
within the time frame this section establishes is deemed to have	239
abandoned any right to the judgment and to the property, is	240
barred from seeking another judgment on that property or making	241
any claim against the property, and shall not receive any	242
proceeds from a sale of the property.	243

(B)(1) Sixty days after providing notice to lienholders of	244
the filing of the certificate of judgment, the clerk shall issue	245
a writ of execution pursuant to section 2329.091 of the Revised	246
Code in the order of priority of the liens of the lienholders who	247
filed for a writ of execution. The clerk shall direct the officer	248
conducting the sale to distribute the proceeds from the sale in	249
the order of priority of the liens of the lienholders who filed	250
for a writ of execution pursuant to this section.	251

(2) At its discretion, the court may extend the time period	252
this section establishes for filing for a writ of execution or	253
issuing that writ if the mortgagee and the mortgagor in the	254
action so request, for any reason that the court considers	255
appropriate.	256

(C) Notwithstanding sections 2329.09 and 2329.091 of the	257
Revised Code, a court may stay the issuance of a writ of execution	258
if the judgment debtor and the judgment creditor, along with all	259
other lienholders, enter into a forbearance agreement that allows	260
the judgment debtor to make payments over a specified period of	261
time and that agreement is filed with the court. The stay shall be	262
effective so long as all of the parties to the agreement comply	263
with the terms of the agreement.	264

Sec. 2308.06. (A) Notwithstanding any other provision of the	265
Revised Code, if no lienholder files for a writ of execution or a	266
contingent writ of execution under section 2308.05 of the Revised	267
Code, and the property owner does not redeem the property as	268
division (B) of section 2329.33 of the Revised Code provides, the	269
property owner and lienholders are deemed to have abandoned all	270
rights to the property and the property is deemed an abandoned	271
property. The title of such a property vests without further	272
action in the name of the county recorder.	273

(B) When a property is deemed abandoned pursuant to division	274
(A) of this section, the prosecuting attorney of the county shall	275
prepare a deed to convey that property from the judgment debtor to	276
the county recorder. The deed shall contain the names of the	277
parties to the judgment and the owners of the property, a	278
reference to the volume and page of the recording of the next	279
preceding recorded instrument by or through which the county	280
recorder claims title, the date and the amount of the judgment,	281
and the date on which each lienholder is deemed to have abandoned	282
the property. The county recorder shall record the deed within	283
fourteen business days after the latest date on which a	284
lienholder is deemed to have abandoned the property.	285

(C) The county recorder may dispose of property acquired	286
under this section pursuant to rules the board of county	287
commissioners adopts. The rules shall specify that if the county	288
has a land bank, the county recorder shall place the property in	289
that land bank pursuant to the rules. If the county does not have	290
a land bank, the recorder shall dispose of the property pursuant	291
to the discretion of the board of county commissioners.	292

Sec. 2323.07. (A)(1) When a mortgage is foreclosed or a	293
specific lien enforced, a sale of the property, or a transfer of	294
property pursuant to sections 323.28, 323.65 to 323.78, and	295
5721.19 of the Revised Code, shall be ordered by the court having	296
jurisdiction or the county board of revision with jurisdiction	297
pursuant to section 323.66 of the Revised Code.	298

(2) The sale of property pursuant to judicial procedure is	299
the only order a court may make for the execution of a judgment on	300
a residential property when the action was brought by a mortgagee	301
of that property. As used in this division, "residential property"	302
has the same meaning as in section 2308.01 of the Revised Code.	303

(B) When the real property to be sold is in one or more	304
tracts, the court may order the officer who makes the sale to	305
subdivide, appraise, and sell them in parcels, or sell any one of	306
the tracts as a whole.	307

(C) When the mortgaged property is situated in more than one	308
county, the court may order the sheriff or master of each county	309
to make sale of the property in the sheriff's or master's county,	310
or may direct one officer to sell the whole. When it consists of	311
a single tract, the court may direct that it be sold as one tract	312
or in separate parcels, and shall direct whether appraisers shall	313
be selected for each county or one set for all; and whether	314
publication of the sale shall be made in all the counties, or in	315
one county only.	316

Sec. 2329.01. (A) Lands and tenements, including vested	317
legal interests therein, permanent leasehold estates renewable	318
forever, and goods and chattels, not exempt by law, shall be	319
subject to the payment of debts, and liable to be taken on	320
execution and sold as provided in sections 2329.02 to 2329.61,	321
inclusive, of the Revised Code.	322

(B) As used in sections 2329.02 to 2329.61 of the Revised	323
Code, "residential mortgage" and "residential property" have the	324
same meanings as in section 2308.01 of the Revised Code.	325

Sec. 2329.02. (A) Any judgment or decree rendered by any	326
court of general jurisdiction, including district courts of the	327
United States, within this state shall be a lien upon lands and	328
tenements of each judgment debtor within any county of this state	329
from the time there is filed in the office of the clerk of the	330
court of common pleas of such county a certificate of such	331
judgment, setting forth the court in which the same was rendered,	332
the title and number of the action, the names of the judgment	333
creditors and judgment debtors, the amount of the judgment and	334
costs, the rate of interest, if the judgment provides for	335
interest, and the date from which such interest accrues, the date	336
of rendition of the judgment, and the volume and page of the	337
journal entry thereof.	338

(B) No such judgment or decree shall be a lien upon any	339
lands, whether or not situated within the county in which such	340
judgment is rendered, registered under sections 5309.02 to	341
5309.98, inclusive, and 5310.01 to 5310.21, inclusive, of the	342
Revised Code, until a certificate under the hand and official seal	343
of the clerk of the court in which the same is entered or of	344
record, stating the date and purport of the judgment, giving the	345
number of the case, the full names of the parties, plaintiff and	346
defendant, and the volume and page of the journal or record in	347
which it is entered, or a certified copy of such judgment, stating	348
such facts, is filed and noted in the office of the county	349
recorder of the county in which the land is situated, and a	350
memorial of the same is entered upon the register of the last	351
certificate of title to the land to be affected.	352

Such certificate shall be made by the clerk of the court in	353
which the judgment was rendered, under the seal of said court,	354
upon the order of any person in whose favor such judgment was	355
rendered or upon the order of any person claiming under hima	356
person in whose favor such judgment was rendered, and shall be	357
delivered to the party so ordering the same; and the fee therefor	358
shall be taxed in the costs of the action.	359

(C) When any such certificate is delivered to the clerk of	360
the court of common pleas of any county in this state, the same	361
shall be filed by such clerk, and hethe clerk shall docket and	362
index it under the names of the judgment creditors and the	363
judgment debtors in a judgment docket, which shall show as to each	364
judgment all of the matters set forth in such certificate as	365
required by this section. The fee for such filing, docketing, and	366
indexing shall be taxed as increased costs of such judgment upon	367
such judgment docket and shall be included in the lien of the	368
judgment.	369

(D) When the clerk of any court, other than that rendering	370
the judgment, in whose office any such certificate is filed, has	371
docketed and indexed the same, hethe clerk shall indorse upon	372
such certificate the fact of such filing with the date thereof and	373
the volume and page of the docket entry of such certificate and	374
shall return the same so indorsed to the clerk of the court in	375
which the judgment was rendered, who shall note upon the original	376
docket the fact of the filing of said certificate, showing the	377
county in which the same was filed and the date of such filing.	378
When such certificate is filed, docketed, and indexed in the	379
office of the clerk of the court which rendered the judgment, such	380
clerk shall likewise indorse the certificate and make like	381
notation upon the original docket.	382

Each such judgment shall be deemed to have been rendered in	383
the county in which is kept the journal of the court rendering the	384
same, in which journal such judgment is entered.	385

(E) Certificates or certified copies of judgments or decrees	386
of any courts of general jurisdiction, including district courts	387
of the United States, within this state, may be filed, registered,	388
noted, and memorials thereof entered, in the office of the	389
recorder of any county in which is situated land registered under	390
sections 5309.02 to 5309.98, inclusive, and 5310.01 to 5310.21,	391
inclusive, of the Revised Code, for the purpose of making such	392
judgments liens upon such registered land.	393

(F) Notwithstanding any other provision of the Revised Code,	394
any judgment issued in a court of record may be transferred to any	395
other court of record. Any proceedings for collection may be had	396
on such judgment the same as if it had been issued by the	397
transferee court.	398

(G)(1) The clerk of the court shall include a notation on any	399
certificate that is filed pursuant to the foreclosure of a	400
residential mortgage that the payment of that judgment shall be	401
made to the judgment creditor and other lienholders in the order	402
of the priority of the liens of the lienholders who file for a	403
writ of execution of judgment pursuant to division (G) of this	404
section.	405

(2) When a clerk files a certificate of judgment, the clerk	406
shall provide notice of that filing to the judgment debtor, the	407
judgement creditor, and all lienholders and persons listed in	408
division (B)(7) of section 2329.191 of the Revised Code. The	409
notice shall state that a certificate of judgment has been filed	410
and that the lienholder has sixty days from the date of the	411
notice to file for a writ of execution to request the sale of the	412
property. A lienholder who is not the primary lienholder shall	413
file a contingency request for a writ of execution of judgment.	414
The clerk shall issue the writ in the order of priority of the	415
liens of the lienholders who file pursuant to this section.	416

(3) Any lienholder who fails to file for a writ of execution	417
as division (G) of this section requires shall be deemed to have	418
abandoned any right to the lien and has no further right to claim	419
on the property or to collect from any proceeds of the sale of	420
the property.	421

Sec. 2329.07. (A)(1) If neither execution on a judgment	422
rendered in a court of record or certified to the clerk of the	423
court of common pleas in the county in which the judgment was	424
rendered is issued, nor a certificate of judgment for obtaining a	425
lien upon lands and tenements is issued and filed, as provided in	426
sections 2329.02 and 2329.04 of the Revised Code, within five	427
years from the date of the judgment or within five years from the	428
date of the issuance of the last execution thereon or the issuance	429
and filing of the last such certificate, whichever is later, then,	430
unless the judgment is in favor of the state, the judgment shall	431
be dormant and shall not operate as a lien upon the estate of the	432
judgment debtor.	433

(2) If the judgment is in favor of the state, the judgment	434
shall not become dormant and shall not cease to operate as a lien	435
against the estate of the judgment debtor provided that either	436
execution on the judgment is issued or a certificate of judgment	437
is issued and filed, as provided in sections 2329.02 and 2329.04	438
of the Revised Code, within ten years from the date of the	439
judgment or within fifteen years from the date of the issuance of	440
the last execution thereon or the issuance and filing of the last	441
such certificate, whichever is later, except as otherwise provided	442
in division (C) of this section. The fifteen-year limitation	443
period applies to executions issued and certificates of judgments	444
issued and filed before, on, or after the effective date of the	445
amendment of this section by ........ of the 126th general	446
assemblyMarch 29, 2007.	447

(B) If, in any county other than that in which a judgment was	448
rendered, the judgment has become a lien by reason of the filing,	449
in the office of the clerk of the court of common pleas of that	450
county, of a certificate of the judgment as provided in sections	451
2329.02 and 2329.04 of the Revised Code, and if no execution is	452
issued for the enforcement of the judgment within that county, or	453
no further certificate of the judgment is filed in that county,	454
within five years or, if the judgment is in favor of the state,	455
within fifteen years from the date of issuance of the last	456
execution for the enforcement of the judgment within that county	457
or the date of filing of the last certificate in that county,	458
whichever is the later, then the judgment shall cease to operate	459
as a lien upon lands and tenements of the judgment debtor within	460
that county, except as otherwise provided in division (C) of this	461
section. The fifteen-year limitation period applies to executions	462
issued and certificates of judgments issued and filed before, on,	463
or after the effective date of the amendment of this section by	464
H.B. 699 of the 126th general assemblyMarch 29, 2007.	465

(C)(1) As used in division (C) of this section, "interim	466
period" means the period beginning September 26, 2003, and ending	467
September 27, 2006.	468

(2) Division (C) of this section applies only to judgments in	469
favor of the state that are subject to this section and to which	470
both of the following apply:	471

(a) The first issuance of execution on the judgment, or the	472
first issuance and filing of the certificate of judgment, was	473
issued or issued and filed within the ten-year period provided in	474
this section before the beginning of the interim period;	475

(b) Subsequent issuance of execution on the judgment or	476
subsequent issuance and filing of the certificate of judgment	477
would have been required during the interim period in order to	478
keep the lien from becoming dormant under this section as this	479
section existed on September 25, 2003, and as if this section as	480
it existed on that date had been in effect during the interim	481
period.	482

(3) Such a judgment shall not become dormant and shall not	483
cease to operate as a lien against the estate of the judgment	484
debtor if either execution on the judgment is issued or a	485
certificate of judgment is issued and filed, as provided in	486
sections 2329.02 and 2329.04 of the Revised Code, within fifteen	487
years after the expiration of the ten-year period following	488
issuance of the last execution on the judgment or following the	489
issuance and filing of the last such certificate, whichever is	490
later.	491

(D) When a judgment is issued with respect to a residential	492
mortgage foreclosure action, a judgment creditor and all other	493
lienholders may file for a writ of execution of the judgment	494
pursuant to division (A) of section 2308.05 of the Revised Code	495
within sixty days following a notice from the clerk of court that	496
the clerk has filed the certificate of judgment. Any lienholder	497
who fails to file for a writ during the time frame this section	498
provides is deemed to have abandoned any right to the judgment and	499
the property, and pursuant to section 2308.05 of the Revised Code	500
is barred from making further claims against the property.	501

Sec. 2329.33. In(A) Except as otherwise provided in	502
division (B) of this section, in sales of real estate on execution	503
or order of sale, at any time before the confirmation thereof, the	504
debtor may redeem it from sale by depositing in the hands of the	505
clerk of the court of common pleas to which such execution or	506
order is returnable, the amount of the judgment or decree upon	507
which such lands were sold, with all costs, including poundage,	508
and interest at the rate of eight per cent per annum on the	509
purchase money from the day of sale to the time of such deposit,	510
except where the judgment creditor is the purchaser, the interest	511
at such rate on the excess above histhe judgment creditor's	512
claim. The court of common pleas thereupon shall make an order	513
setting aside such sale, and apply the deposit to the payment of	514
such judgment or decree and costs, and award such interest to the	515
purchaser, who shall receive from the officer making the sale the	516
purchase money paid by himthe purchaser, and the interest from	517
the clerk. This	518

(B) Notwithstanding division (A) of this section, in any	519
residential mortgage foreclosure action, the judgment debtor may	520
redeem the property not later than sixty days following the date	521
the clerk of the court provides notice of the filing of the	522
certificate of judgment pursuant to section 2329.02 of the Revised	523
Code. Any such right of redemption expires at the end of the	524
business day on the sixtieth day following the clerk's notice of	525
filing the certificate of judgment. A judgment debtor may redeem	526
the property by depositing with the clerk of the court who filed	527
the certificate of judgment the amount of the judgment along with	528
all costs. The court shall deposit the amount of the payment to	529
the satisfaction of the judgment and order the judgment set	530
aside.	531

(C) This section does not take away the power of the court to	532
set aside such sale for any reason for which it might have been	533
set aside prior to April 16, 1888.	534

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

535

(1) "Building" means, except as otherwise provided in this	536
division, any building or structure that is used or intended to be	537
used for residential purposes. "Building" includes, but is not	538
limited to, a building or structure in which any floor is used for	539
retail stores, shops, salesrooms, markets, or similar commercial	540
uses, or for offices, banks, civic administration activities,	541
professional services, or similar business or civic uses, and in	542
which the other floors are used, or designed and intended to be	543
used, for residential purposes. "Building" does not include any	544
building or structure that is occupied by its owner and that	545
contains three or fewer residential units when one of the units	546
is occupied by the owner of the building or structure unless that	547
building or structure is a residential property as defined in	548
section 2308.01 of the Revised Code and the nuisance action is	549
initiated pursuant to section 2308.04 of the Revised Code.	550

(2) "Land" means any parcel of land that is not the site of a	551
building or other structure.	552

(3)(a) "Public nuisance" as it applies to a building means a	553
building that is a menace to the public health, welfare, or	554
safety; that is structurally unsafe, unsanitary, or not provided	555
with adequate safe egress; that constitutes a fire hazard,or is	556
otherwise dangerous to human life, or; that is otherwise no longer	557
fit and habitable if used or designed to be used for residential	558
purposes; or that, in relation to its existing use, constitutes a	559
hazard to the public health, welfare, or safety by reason of	560
inadequate maintenance, dilapidation, obsolescence, or	561
abandonment.	562

(b) "Public nuisance" as it applies to land means land that	563
constitutes a hazard to the public health, welfare, or safety by	564
reason of unsafe or unsanitary conditions.	565

(c) "Public nuisance" as it applies to subsidized housing	566
means subsidized housing that fails to meet the following	567
standards as specified in the federal rules governing each	568
standard:	569

(i) Each building on the site is structurally sound, secure,	570
habitable, and in good repair, as defined in 24 C.F.R. 5.703(b);	571

(ii) Each building's domestic water, electrical system,	572
elevators, emergency power, fire protection, HVAC, and sanitary	573
system is free of health and safety hazards, functionally	574
adequate, operable, and in good repair, as defined in 24 C.F.R.	575
5.703(c);	576

(iii) Each dwelling unit within the building is structurally	577
sound, habitable, and in good repair, and all areas and aspects of	578
the dwelling unit are free of health and safety hazards,	579
functionally adequate, operable, and in good repair, as defined in	580
24 C.F.R. 5.703(d)(1);	581

(iv) Where applicable, the dwelling unit has hot and cold	582
running water, including an adequate source of potable water, as	583
defined in 24 C.F.R. 5.703(d)(2);	584

(v) If the dwelling unit includes its own sanitary facility,	585
it is in proper operating condition, usable in privacy, and	586
adequate for personal hygiene, and the disposal of human waste, as	587
defined in 24 C.F.R. 5.703(d)(3);	588

(vi) The common areas are structurally sound, secure, and	589
functionally adequate for the purposes intended. The basement,	590
garage, carport, restrooms, closets, utility, mechanical,	591
community rooms, daycare, halls, corridors, stairs, kitchens,	592
laundry rooms, office, porch, patio, balcony, and trash collection	593
areas are free of health and safety hazards, operable, and in good	594
repair. All common area ceilings, doors, floors, HVAC, lighting,	595
smoke detectors, stairs, walls, and windows, to the extent	596
applicable, are free of health and safety hazards, operable, and	597
in good repair, as defined in 24 C.F.R. 5.703(e);	598

(vii) All areas and components of the housing are free of	599
health and safety hazards. These areas include, but are not	600
limited to, air quality, electrical hazards, elevators,	601
emergency/fire exits, flammable materials, garbage and debris,	602
handrail hazards, infestation, and lead-based paint, as defined in	603
24 C.F.R. 5.703(f).	604

(3)(4) "Abate" or "abatement" in connection with any building	605
means the removal or correction of any conditions that constitute	606
a public nuisance and, in connection with any building, includes	607
the making of any other improvements that are needed to effect a	608
rehabilitation of the building that is consistent with maintaining	609
safe and habitable conditions over its remaining useful life.	610
"Abatement" does not include theThe closing or boarding up of	611
any building that is found to be a public nuisance, by itself,	612
does not serve as an abatement of the public nuisance.	613

(4)(5) "Interested party" means any owner, mortgagee,	614
lienholder, tenant, or person that possesses an interest of record	615
in any property that becomes subject to the jurisdiction of a	616
court pursuant to this section, and any applicant for the	617
appointment of a receiver pursuant to this section.	618

(5)(6) "Neighbor" means any owner of real property,	619
including, but not limited to, any person who is purchasing real	620
property by land installment contract or under a duly executed	621
purchase contract, that is located within five hundred feet of any	622
real property that becomes subject to the jurisdiction of a court	623
pursuant to this section, and any occupant of a building that is	624
so located.	625

(6)(7) "Tenant" has the same meaning as in section 5321.01 of	626
the Revised Code.	627

(7)(8) "Subsidized housing" means a property consisting of	628
more than four dwelling units that, in whole or in part, receives	629
project-based assistance pursuant to a contract under any of the	630
following federal housing programs:	631

(a) The new construction or substantial rehabilitation	632
program under section 8(b)(2) of the "United States Housing Act of	633
1937," Pub. L. No. 75-412, 50 Stat. 888, 42 U.S.C. 1437f(b)(2) as	634
that program was in effect immediately before the first day of	635
October, 1983;	636

(b) The moderate rehabilitation program under section 8(e)(2)	637
of the "United States Housing Act of 1937," Pub. L. No. 75-412, 50	638
Stat. 888, 42 U.S.C. 1437f(e)(2);	639

(c) The loan management assistance program under section 8 of	640
the "United States Housing Act of 1937," Pub. L. No. 75-412, 50	641
Stat. 888, 42 U.S.C. 1437f;	642

(d) The rent supplement program under section 101 of the	643
"Housing and Urban Development Act of 1965," Pub. L. No. 89-174,	644
79 Stat. 667, 12 U.S.C. 1701s;	645

(e) Section 8 of the "United States Housing Act of 1937,"	646
Pub. L. No. 75-412, 50 Stat. 888, 42 U.S.C. 1437f, following	647
conversion from assistance under section 101 of the "Housing and	648
Urban Development Act of 1965," Pub. L. No. 89-174, 79 Stat. 667,	649
12 U.S.C. 1701s;	650

(f) The program of supportive housing for the elderly under	651
section 202 of the "Housing Act of 1959," Pub. L. No. 86-372, 73	652
Stat. 654, 12 U.S.C. 1701q;	653

(g) The program of supportive housing for persons with	654
disabilities under section 811 of the "National Affordable Housing	655
Act of 1990," Pub. L. No. 101-625, 104 Stat. 4313, 42 U.S.C. 8013;	656

(h) The rental assistance program under section 521 of the	657
"United States Housing Act of 1949," Pub. L. No. 90-448, 82 Stat.	658
551, as amended by Pub. L. No. 93-383, 88 Stat. 696, 42 U.S.C.	659
1490a.	660

(8)(9) "Project-based assistance" means the assistance is	661
attached to the property and provides rental assistance only on	662
behalf of tenants who reside in that property.	663

(9)(10) "Landlord" has the same meaning as in section 5321.01	664
of the Revised Code.	665

(B)(1)(a) In any civil action to enforce any local building,	666
housing, air pollution, sanitation, health, fire, zoning, or	667
safety code, ordinance, resolution, or regulation applicable to	668
buildings, lands, or subsidized housing that is commenced in a	669
court of common pleas, municipal court, housing or environmental	670
division of a municipal court, or county court, or in any civil	671
action for abatement commenced in a court of common pleas,	672
municipal court, housing or environmental division of a municipal	673
court, or county court, by a municipal corporation or township in	674
which the building, land, or subsidized housing involved is	675
located, by any neighbor, tenant, or by a nonprofit corporation	676
that is duly organized and has as one of its goals the	677
improvement of housing conditions in the county or municipal	678
corporation in which the building, land, or subsidized housing	679
involved is located, if a building, land, or subsidized housing	680
is alleged to be a public nuisance, the municipal corporation,	681
township, neighbor, tenant, or nonprofit corporation may apply in	682
its complaint for an injunction, relief, or other order as	683
described in division (C)(1) of this section, or for the relief	684
described in division (C)(2) of this section, including, if	685
necessary, the appointment of a receiver as described in	686
divisions (C)(2) and (3) of this section, or for both such an	687
injunction or other order and such relief. The municipal	688
corporation, township, neighbor, tenant, or nonprofit corporation	689
commencing the action is not liable for the costs, expenses, and	690
fees of any receiver appointed pursuant to divisions (C)(2) and	691
(3) of this section.	692

(b) Prior to commencing a civil action for abatement when the	693
property alleged to be a public nuisance is subsidized housing,	694
the municipal corporation, township, neighbor, tenant, or	695
nonprofit corporation commencing the action shall provide the	696
landlord of that property with written notice that specifies one	697
or more defective conditions that constitute a public nuisance as	698
that term applies to subsidized housing and states that if the	699
landlord fails to remedy the condition within sixty days of the	700
service of the notice, a claim pursuant to this section may be	701
brought on the basis that the property constitutes a public	702
nuisance in subsidized housing. Any party authorized to bring an	703
action against the landlord shall make reasonable attempts to	704
serve the notice in the manner prescribed in the Rules of Civil	705
Procedure to the landlord or the landlord's agent for the	706
property at the property's management office, or at the place	707
where the tenants normally pay or send rent. If the landlord is	708
not the owner of record, the party bringing the action shall make	709
a reasonable attempt to serve the owner. If the owner does not	710
receive service the person bringing the action shall certify the	711
attempts to serve the owner.	712

(2)(a) In a civil action described in division (B)(1) of this	713
section, a copy of the complaint and a notice of the date and time	714
of a hearing on the complaint shall be served upon the owner of	715
the building, land, or subsidized housing and all other interested	716
parties in accordance with the Rules of Civil Procedure. If	717
certified mail service, personal service, or residence service of	718
the complaint and notice is refused or certified mail service of	719
the complaint and notice is not claimed, and if the municipal	720
corporation, township, neighbor, tenant, or nonprofit	721
corporation commencing the action makes a written request for	722
ordinary mail service of the complaint and notice, or uses	723
publication service, in accordance with the Rules of Civil	724
Procedure, then a copy of the complaint and notice shall be	725
posted in a conspicuous place on the building, land, or	726
subsidized housing.	727

(b) The judge in a civil action described in division (B)(1)	728
of this section shallmay conduct a summary hearing at leastto	729
consider and issue any temporary orders that are necessary to	730
protect the public health, welfare, and safety pending further	731
proceedings.	732

(c) The judge shall conduct a hearing on the complaint not	733
earlier than twenty-eight days after the owner of the building,	734
land, or subsidized housing and the other interested parties have	735
been served with a copy of the complaint and the notice of the	736
date and time of the hearing in accordance with division	737
(B)(2)(a) of this section.	738

(c)(d) In considering whether subsidized housing is a public	739
nuisance, the judge shall construe the standards set forth in	740
division (A)(2)(b)(A)(3)(c) of this section in a manner consistent	741
with department of housing and urban development and judicial	742
interpretations of those standards. The judge shall deem that the	743
property is not a public nuisance if during the twelve months	744
prior to the service of the notice that division (B)(1)(b) of this	745
section requires, the department of housing and urban	746
development's real estate assessment center issued a score of	747
seventy-five or higher out of a possible one hundred points	748
pursuant to its regulations governing the physical condition of	749
multifamily properties pursuant to 24 C.F.R. part 200, subpart P,	750
and since the most recent inspection, there has been no	751
significant change in the property's conditions that would create	752
a serious threat to the health, safety, or welfare of the	753
property's tenants.	754

(C)(1) If the judge in a civil action described in division	755
(B)(1) of this section finds at the hearing required by division	756
(B)(2) of this section that the building involved, land, or	757
subsidized housing is a public nuisance, if the judge	758
additionally determines that the owner of the building, land, or	759
subsidized housing previously has not been afforded a reasonable	760
opportunity to abate the public nuisance or has been afforded such	761
an opportunity and has not refused or failed to abate the public	762
nuisance, and if the complaint of the municipal corporation,	763
township, neighbor, tenant, or nonprofit corporation commencing	764
the action requested the issuance of an injunction as described	765
in this division, then the judge may issue an injunction	766
requiring the owner of the building, land, or subsidized housing	767
to abate the public nuisance or issue any other order that the	768
judge considers necessary or appropriate to cause the abatement	769
of the public nuisance. If an injunction is issued pursuant to	770
this division, the owner of the building, land, or subsidized	771
housing involved shall be given no more than thirty days from	772
the date of the entry of the judge's order to comply with the	773
injunction, unless the judge, for good cause shown, extends the	774
time for compliance.	775

(2) If the judge in athe civil action described in division	776
(B)(1) of this section finds at the hearing required by division	777
(B)(2) of this section that the building involved is a public	778
nuisance, if the judge additionally determines that the owner of	779
the building, land, or subsidized housing previously has beenwas	780
afforded a reasonable opportunity to abate the public nuisance	781
and has refused or failed to do so, and if the complaint of the	782
municipal corporation, township, neighbor, tenant, or nonprofit	783
corporation commencing the action requested relief as described	784
in this division, then the judge shall offer any mortgagee,	785
lienholder, or other interested party associated with the	786
property on which the building is located, in the order of the	787
priority of interest in title, the opportunity to undertake the	788
work and to furnish the materials necessary to abate the public	789
nuisance. Prior to selecting any interested party, the judge	790
shall require the interested party to demonstrate the ability to	791
promptly undertake the work and furnish the materials required,	792
to provide the judge with a viable financial and construction	793
plan for the rehabilitation of the building as described in	794
division (D) of this section, and to post security for the	795
performance of the work and the furnishing of the materials.	796

(2) If the judge determines, at the hearing, that no	797
interested party associated with the building, land, or subsidized	798
housing is willing or able to undertake the work and to furnish	799
the materials necessary to abate the public nuisance, or if the	800
judge determines, at any time after the hearing, that any party	801
who is undertaking corrective work pursuant to this division	802
cannot or will not proceed, or has not proceeded with due	803
diligence, the judge may appoint a receiver pursuant to division	804
(C)(3) of this section to take possession and control of the	805
building, land, or subsidized housing.	806

(3)(a) The judge in a civil action described in division	807
(B)(1) of this section shall not appoint any person as a receiver	808
unless the person first has provided the judge with a viable	809
financial and construction plan for the rehabilitation of the	810
building involved, land, or subsidized housing as described in	811
division (D) of this section and has demonstrated the capacity	812
and expertise to perform the required work and to furnish the	813
required materials in a satisfactory manner. An appointed receiver	814
may be a financial institution that possesses an interest of	815
record in the building or the property on which itthe building is	816
located, land, or subsidized housing, a nonprofit corporation as	817
described in divisions (B)(1) and (C)(3)(b) of this section,	818
including, but not limited to, a nonprofit corporation that	819
commenced the action described in division (B)(1) of this section,	820
or any other qualified property manager.	821

(b) To be eligible for appointment as a receiver, no part of	822
the net earnings of a nonprofit corporation shall inure to the	823
benefit of any private shareholder or individual. Membership on	824
the board of trustees of a nonprofit corporation appointed as a	825
receiver does not constitute the holding of a public office or	826
employment within the meaning of sections 731.02 and 731.12 or any	827
other section of the Revised Code and does not constitute a direct	828
or indirect interest in a contract or expenditure of money by any	829
municipal corporation. A member of a board of trustees of a	830
nonprofit corporation appointed as a receiver shall not be	831
disqualified from holding any public office or employment, and	832
shall not forfeit any public office or employment, by reason of	833
membership on the board of trustees, notwithstanding any law to	834
the contrary.	835

(D) Prior to ordering an owner, interested party, or receiver	836
to undertake any work to be undertaken, or the furnishing of any	837
materials, to abate a public nuisance under this section, the	838
judge in a civil action described in division (B)(1) of this	839
section shall review the submitted financial and construction plan	840
for the rehabilitation of the building involved, land, or	841
subsidized housing and, if it specifies all of the following,	842
shall approve that plan:	843

(1) The estimated cost of the labor, materials, and any other	844
development costs that are required to abate the public nuisance;	845

(2) The estimated income and expenses of the building and the	846
property on which itthe building is located, land, or subsidized	847
housing after the furnishing of the materials and the completion	848
of the repairs and improvements;	849

(3) The terms, conditions, and availability of any financing	850
that is necessary to perform the work and to furnish the	851
materials;	852

(4) If repair and rehabilitation of thea building are found	853
not to be feasible, the cost of demolition of the building or of	854
the portions of the building that constitute the public nuisance.	855

(E) Upon the written request of any of the interested parties	856
to have a building, or portions of a building, that constitute a	857
public nuisance demolished because repair and rehabilitation of	858
the building are found not to be feasible, the judge may order the	859
demolition. However, the demolition shall not be ordered unless	860
the requesting interested parties have paid the costs of	861
demolition and, if any, of the receivership, and, if any, all	862
notes, certificates, mortgages, and fees of the receivership.	863

(F) Before proceeding with the duties of receiver, any	864
receiver appointed by the judge in a civil action described in	865
division (B)(1) of this section may be required by the judge to	866
post a bond in an amount fixed by the judge, but not exceeding the	867
value of the building involved, land, or subsidized housing as	868
determined by the judge.	869

The judge may empower the receiver to do any or all of the	870
following:	871

(1) Take possession and control of the building and the	872
property on which itthe building is located, land, or subsidized	873
housing, operate and manage the building and the property, land,	874
or subsidized housing, establish and collect rents and income,	875
lease and rent the building and the property, land, or subsidized	876
housing, and evict tenants;	877

(2) Pay all expenses of operating and conserving the building	878
and the property, land, or subsidized housing, including, but not	879
limited to, the cost of electricity, gas, water, sewerage,	880
heating fuel, repairs and supplies, custodian services, taxes and	881
assessments, and insurance premiums, and hire and pay reasonable	882
compensation to a managing agent;	883

(3) Pay pre-receivership mortgages or installments of them	884
and other liens;	885

(4) Perform or enter into contracts for the performance of	886
all work and the furnishing of materials necessary to abate, and	887
obtain financing for the abatement of, the public nuisance;	888

(5) Pursuant to court order, remove and dispose of any	889
personal property abandoned, stored, or otherwise located in or on	890
the building and the property, land, or subsidized housing that	891
creates a dangerous or unsafe condition or that constitutes a	892
violation of any local building, housing, air pollution,	893
sanitation, health, fire, zoning, or safety code, ordinance, or	894
regulation;	895

(6) Obtain mortgage insurance for any receiver's mortgage	896
from any agency of the federal government;	897

(7) Enter into any agreement and do those things necessary to	898
maintain and preserve the building and the property, land, or	899
subsidized housing and comply with all local building, housing,	900
air pollution, sanitation, health, fire, zoning, or safety codes,	901
ordinances, resolutions, and regulations;	902

(8) Give the custody of the building and the property, land,	903
or subsidized housing, and the opportunity to abate the nuisance	904
and operate the building and property, land, or subsidized	905
housing, to its owner or any mortgagee or lienholder of record;	906

(9) Issue notes and secure them by a mortgage bearing	907
interest, and upon terms and conditions, that the judge approves.	908
When sold or transferred by the receiver in return for valuable	909
consideration in money, material, labor, or services, the notes or	910
certificates shall be freely transferable. Any mortgages granted	911
by the receiver shall be superior to any claims of the receiver.	912
Priority among the receiver's mortgages shall be determined by the	913
order in which they are recorded.	914

(G) A receiver appointed pursuant to this section is not	915
personally liable except for misfeasance, malfeasance, or	916
nonfeasance in the performance of the functions of the office of	917
receiver.	918

(H)(1) The judge in a civil action described in division	919
(B)(1) of this section may assess as court costs, the expenses	920
described in division (F)(2) of this section, and may approve	921
receiver's fees to the extent that they are not covered by the	922
income from the property. Subject to that limitation, a receiver	923
appointed pursuant to divisions (C)(2) and (3) of this section is	924
entitled to receive fees in the same manner and to the same extent	925
as receivers appointed in actions to foreclose mortgages.	926

(2)(a) Pursuant to the police powers vested in the state, all	927
expenditures of a mortgagee, lienholder, or other interested party	928
that has been selected pursuant to division (C)(2)(1) of this	929
section to undertake the work and to furnish the materials	930
necessary to abate a public nuisance, and any expenditures in	931
connection with the foreclosure of the lien created by this	932
division, is a first lien upon the building involved and the	933
property on which itthe building is located, land, or subsidized	934
housing and is superior to all prior and subsequent liens or other	935
encumbrances associated with the building or theand property,	936
land, or subsidized housing, including, but not limited to, those	937
for taxes and assessments, upon the occurrence of both of the	938
following:	939

(i) The prior approval of the expenditures by, and the entry	940
of a judgment to that effect by, the judge in the civil action	941
described in division (B)(1) of this section;	942

(ii) The recordation of a certified copy of the judgment	943
entry and a sufficient description of the property on which the	944
building is located, land, or subsidized housing with the county	945
recorder in the county in which the property is located within	946
sixty days after the date of the entry of the judgment.	947

(b) Pursuant to the police powers vested in the state, all	948
expenses and other amounts paid in accordance with division (F) of	949
this section by a receiver appointed pursuant to divisions (C)(2)	950
and (3) of this section, the amounts of any notes issued by the	951
receiver in accordance with division (F) of this section, all	952
mortgages granted by the receiver in accordance with that	953
division, the fees of the receiver approved pursuant to division	954
(H)(1) of this section, and any amounts expended in connection	955
with the foreclosure of a mortgage granted by the receiver in	956
accordance with division (F) of this section or with the	957
foreclosure of the lien created by this division, are a first lien	958
upon the building involved and the property on which itthe	959
building is located, land, or subsidized housing and are superior	960
to all prior and subsequent liens or other encumbrances	961
associated with the building or theand property, land, or	962
subsidized housing, including, but not limited to, those for taxes	963
and assessments, upon the occurrence of both of the following:	964

(i) The approval of the expenses, amounts, or fees by, and	965
the entry of a judgment to that effect by, the judge in the civil	966
action described in division (B)(1) of this section; or the	967
approval of the mortgages in accordance with division (F)(9) of	968
this section by, and the entry of a judgment to that effect by,	969
that judge;	970

(ii) The recordation of a certified copy of the judgment	971
entry and a sufficient description of the property on which the	972
building is located, land, or subsidized housing, or, in the case	973
of a mortgage, the recordation of the mortgage, a certified copy	974
of the judgment entry, and such a description, with the county	975
recorder of the county in which the property is located within	976
sixty days after the date of the entry of the judgment.	977

(c) Priority among the liens described in divisions (H)(2)(a)	978
and (b) of this section shall be determined as described in	979
division (I) of this section. Additionally, the creation pursuant	980
to this section of a mortgage lien that is prior to or superior to	981
any mortgage of record at the time the mortgage lien is so	982
created, does not disqualify the mortgage of record as a legal	983
investment under Chapter 1107. or 1151. or any other chapter of	984
the Revised Code.	985

(I)(1) If a receiver appointed pursuant to divisions (C)(2)	986
and (3) of this section files with the judge in the civil action	987
described in division (B)(1) of this section a report indicating	988
that the public nuisance has been abated, if the judge confirms	989
that the receiver has abated the public nuisance, and if the	990
receiver or any interested party requests the judge to enter an	991
order directing the receiver to sell the building and the property	992
on which itthe building is located, land, or subsidized housing,	993
the judge may enter that order after holding a hearing as	994
described in division (I)(2) of this section and otherwise	995
complying with that division.	996

(2)(a) The receiver or interested party requesting an order	997
as described in division (I)(1) of this section shall cause a	998
notice of the date and time of a hearing on the request to be	999
served on the owner of the building involved, land, or subsidized	1000
housing and all other interested parties in accordance with	1001
division (B)(2)(a) of this section. The judge in the civil action	1002
described in division (B)(1) of this section shall conduct the	1003
scheduled hearing. At the hearing, if the owner or any interested	1004
party objects to the sale of the building and the property, land,	1005
or subsidized housing, the burden of proof shall be upon the	1006
objecting person to establish, by a preponderance of the	1007
evidence, that the benefits of not selling the building and the	1008
property, land, or subsidized housing outweigh the benefits of	1009
selling them. If the judge determines that there is no objecting	1010
person, or if the judge determines that there is one or more	1011
objecting persons but no objecting person has sustained the	1012
burden of proof specified in this division, the judge may enter	1013
an order directing the receiver to offer the building and the	1014
property, land, or subsidized housing for sale upon terms and	1015
conditions that the judge shall specify.	1016

(b) In any sale of subsidized housing that is ordered	1017
pursuant to this section, the judge shall specify that the	1018
subsidized housing not be conveyed unless that conveyance complies	1019
with applicable federal law and applicable program contracts for	1020
that housing. Any such conveyance shall be subject to the	1021
condition that the purchaser enter into a contract with the	1022
department of housing and urban development or the rural housing	1023
service of the federal department of agriculture under which the	1024
property continues to be subsidized housing and the owner	1025
continues to operate that property as subsidized housing unless	1026
the secretary of housing and urban development or the	1027
administrator of the rural housing service terminates that	1028
property's contract prior to or upon the conveyance of the	1029
property.	1030

(3) If a sale of a building and the property on which it is	1031
located, land, or subsidized housing is ordered pursuant to	1032
divisions (I)(1) and (2) of this section and if the sale occurs	1033
in accordance with the terms and conditions specified by the	1034
judge in the judge's order of sale, then the receiver shall	1035
distribute the proceeds of the sale and the balance of any funds	1036
that the receiver may possess, after the payment of the costs of	1037
the sale, in the following order of priority and in the described	1038
manner:	1039

(a) First, in satisfaction of any notes issued by the	1040
receiver pursuant to division (F) of this section, in their order	1041
of priority;	1042

(b) Second, any unreimbursed expenses and other amounts paid	1043
in accordance with division (F) of this section by the receiver,	1044
and the fees of the receiver approved pursuant to division (H)(1)	1045
of this section;	1046

(c) Third, all expenditures of a mortgagee, lienholder, or	1047
other interested party that has been selected pursuant to division	1048
(C)(2)(1) of this section to undertake the work and to furnish the	1049
materials necessary to abate a public nuisance, provided that the	1050
expenditures were approved as described in division (H)(2)(a) of	1051
this section and provided that, if any such interested party	1052
subsequently became the receiver, its expenditures shall be paid	1053
prior to the expenditures of any of the other interested parties	1054
so selected;	1055

(d) Fourth, the amount due for delinquent taxes, assessments,	1056
charges, penalties, and interest owed to this state or a political	1057
subdivision of this state, provided that, if the amount available	1058
for distribution pursuant to division (I)(3)(d) of this section is	1059
insufficient to pay the entire amount of those taxes, assessments,	1060
charges, penalties, and interest, the proceeds and remaining funds	1061
shall be paid to each claimant in proportion to the amount of	1062
those taxes, assessments, charges, penalties, and interest that	1063
each is due.	1064

(e) The amount of any pre-receivership mortgages, liens, or	1065
other encumbrances, in their order of priority.	1066

(4) Following a distribution in accordance with division	1067
(I)(3) of this section, the receiver shall request the judge in	1068
the civil action described in division (B)(1) of this section to	1069
enter an order terminating the receivership. If the judge	1070
determines that the sale of the building and the property on which	1071
it is located, land, or subsidized housing occurred in accordance	1072
with the terms and conditions specified by the judge in the	1073
judge's order of sale under division (I)(2) of this section and	1074
that the receiver distributed the proceeds of the sale and the	1075
balance of any funds that the receiver possessed, after the	1076
payment of the costs of the sale, in accordance with division	1077
(I)(3) of this section, and if the judge approves any final	1078
accounting required of the receiver, the judge may terminate the	1079
receivership.	1080

(J)(1) A receiver appointed pursuant to divisions (C)(2) and	1081
(3) of this section may be discharged at any time in the	1082
discretion of the judge in the civil action described in division	1083
(B)(1) of this section. The receiver shall be discharged by the	1084
judge as provided in division (I)(4) of this section, or when all	1085
of the following have occurred:	1086

(a) The public nuisance has been abated;

1087

(b) All costs, expenses, and approved fees of the	1088
receivership have been paid;	1089

(c) Either all receiver's notes issued and mortgages granted	1090
pursuant to this section have been paid, or all the holders of the	1091
notes and mortgages request that the receiver be discharged.	1092

(2) If a judge in a civil action described in division (B)(1)	1093
of this section determines that, and enters of record a	1094
declaration that, a public nuisance has been abated by a receiver,	1095
and if, within three days after the entry of the declaration, all	1096
costs, expenses, and approved fees of the receivership have not	1097
been paid in full, then, in addition to the circumstances	1098
specified in division (I) of this section for the entry of such an	1099
order, the judge may enter an order directing the receiver to sell	1100
the building involved and the property on which itthe building is	1101
located, land, or subsidized housing. Any such order shall be	1102
entered, and the sale shall occur, only in compliance with	1103
division (I) of this section.	1104

(K) The title in any building, and in the property on which	1105
itthe building is located, land, or subsidized housing, that is	1106
sold at a sale ordered under division (I) or (J)(2) of this	1107
section shall be incontestable in the purchaser and shall be free	1108
and clear of all liens for delinquent taxes, assessments,	1109
charges, penalties, and interest owed to this state or any	1110
political subdivision of this state, that could not be satisfied	1111
from the proceeds of the sale and the remaining funds in the	1112
receiver's possession pursuant to the distribution under division	1113
(I)(3) of this section. Alland of all other liens and	1114
encumbrances with respect to the building and the property shall	1115
survive the sale, including, but not limited to, land, or	1116
subsidized housing, except a federal tax lien notice that was	1117
properly filed in accordance with section 317.09 of the Revised	1118
Code prior to the time of the sale, and the easements and	1119
covenants of record running with the property that were created	1120
prior to the time of the sale.	1121

(L)(1) Nothing in this section shall be construed as a	1122
limitation upon the powers granted to a court of common pleas, a	1123
municipal court or a housing or environmental division of a	1124
municipal court under Chapter 1901. of the Revised Code, or a	1125
county court under Chapter 1907. of the Revised Code.	1126

(2) The monetary and other limitations specified in Chapters	1127
1901. and 1907. of the Revised Code upon the jurisdiction of	1128
municipal and county courts, and of housing or environmental	1129
divisions of municipal courts, in civil actions do not operate as	1130
limitations upon any of the following:	1131

(a) Expenditures of a mortgagee, lienholder, or other	1132
interested party that has been selected pursuant to division	1133
(C)(2) of this section to undertake the work and to furnish the	1134
materials necessary to abate a public nuisance;	1135

(b) Any notes issued by a receiver pursuant to division (F)	1136
of this section;	1137

(c) Any mortgage granted by a receiver in accordance with	1138
division (F) of this section;	1139

(d) Expenditures in connection with the foreclosure of a	1140
mortgage granted by a receiver in accordance with division (F) of	1141
this section;	1142

(e) The enforcement of an order of a judge entered pursuant	1143
to this section;	1144

(f) The actions that may be taken pursuant to this section by	1145
a receiver or a mortgagee, lienholder, or other interested party	1146
that has been selected pursuant to division (C)(2)(1) of this	1147
section to undertake the work and to furnish the materials	1148
necessary to abate a public nuisance.	1149

(3) A judge in a civil action described in division (B)(1) of	1150
this section, or the judge's successor in office, has continuing	1151
jurisdiction to review the condition of any building, land, or	1152
subsidized housing that was determined to be a public nuisance	1153
pursuant to this section.	1154

(4) Nothing in this section shall be construed to limit or	1155
prohibit a municipal corporation or township that has filed with	1156
the superintendent of insurance a certified copy of an adopted	1157
resolution, ordinance, or regulation authorizing the procedures	1158
described in divisions (C) and (D) of section 3929.86 of the	1159
Revised Code from receiving insurance proceeds under section	1160
3929.86 of the Revised Code.	1161

Section 2. That existing sections 2323.07, 2329.01, 2329.02,	1162
2329.07, 2329.33, and 3767.41 of the Revised Code are hereby	1163
repealed.	1164