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H. B. No. 531 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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Cosponsors:
Representatives Foley, Yuko, McGregor, J., Skindell, Hagan, R., Celeste, Brown, Williams, S., Otterman, J., Stewart, D., Letson
A BILL
To amend section 3767.41 of the Revised Code to
expand the law governing the abatement of public
nuisances to buildings not occupied by an owner as
a primary residence with three or fewer
residential units and to vacant land and to make
the title in property sold by court order pursuant
to a public nuisance action free and clear of most
liens and encumbrances.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 3767.41 of the Revised Code be
amended to read as follows:
Sec. 3767.41. (A) As used in this section:
(1) "Building" means, except as otherwise provided in this
division, any building or structure that is used or intended to
be
used for residential purposes. "Building" includes, but is
not
limited to, a building or structure in which any floor is
used for
retail stores, shops, salesrooms, markets, or similar
commercial
uses, or for offices, banks, civic administration
activities,
professional services, or similar business or civic
uses, and in
which the other floors are used, or designed and
intended to be
used, for residential purposes. "Building" does
not include any
except a
building or structure that is occupied by its
owner and
that
contains three or fewer residential
units, with one of the
residential units being occupied by the owner of the building or
structure.
(2) "Land" means any parcel of land that is not the site of a
building or other structure.
(3)(a) "Public nuisance" as it applies to a building means a
building that is a menace to
the public health, welfare, or
safety; that is structurally
unsafe, unsanitary, or not provided
with adequate safe egress;
that constitutes a fire hazard, or is
otherwise dangerous to human
life, or; that is otherwise no longer
fit and habitable if the building is used or designed to be used
for residential purposes; or that, in
relation to its existing
use, constitutes a hazard to the public
health, welfare, or safety
by reason of inadequate maintenance,
dilapidation, obsolescence,
or abandonment.
(b) "Public nuisance" as it applies to land means land that
constitutes a hazard to the public health, welfare, or safety by
reason of unsafe or unsanitary conditions.
(c) "Public nuisance" as it applies to subsidized housing
means subsidized housing that fails to meet the following
standards as specified in the federal rules governing each
standard:
(i) Each building on the site is structurally sound, secure,
habitable, and in good repair, as defined in 24 C.F.R. 5.703(b);
(ii) Each building's domestic water, electrical system,
elevators, emergency power, fire protection, HVAC, and sanitary
system is free of health and safety hazards, functionally
adequate, operable, and in good repair, as defined in 24 C.F.R.
5.703(c);
(iii) Each dwelling unit within the building is structurally
sound, habitable, and in good repair, and all areas and aspects of
the dwelling unit are free of health and safety hazards,
functionally adequate, operable, and in good repair, as defined in
24 C.F.R. 5.703(d)(1);
(iv) Where applicable, the dwelling unit has hot and cold
running water, including an adequate source of potable water, as
defined in 24 C.F.R. 5.703(d)(2);
(v) If the dwelling unit includes its own sanitary facility,
it is in proper operating condition, usable in privacy, and
adequate for personal hygiene, and the disposal of human waste, as
defined in 24 C.F.R. 5.703(d)(3);
(vi) The common areas are structurally sound, secure, and
functionally adequate for the purposes intended. The basement,
garage, carport, restrooms, closets, utility, mechanical,
community rooms, daycare, halls, corridors, stairs, kitchens,
laundry rooms, office, porch, patio, balcony, and trash collection
areas are free of health and safety hazards, operable, and in good
repair. All common area ceilings, doors, floors, HVAC, lighting,
smoke detectors, stairs, walls, and windows, to the extent
applicable, are free of health and safety hazards, operable, and
in good repair, as defined in 24 C.F.R. 5.703(e);
(vii) All areas and components of the housing are free of
health and safety hazards. These areas include, but are not
limited to, air quality, electrical hazards, elevators,
emergency/fire exits, flammable materials, garbage and debris,
handrail hazards, infestation, and lead-based paint, as defined in
24 C.F.R. 5.703(f).
(3)(4) "Abate" or "abatement" in connection with any building
means the removal or correction of any conditions that constitute
a public nuisance and in connection with any building includes the
making of any other improvements that
are needed to effect a
rehabilitation of the building that is
consistent with maintaining
safe and habitable conditions over
its
remaining useful life.
"Abatement" does not include the The
closing or
boarding up of
any building that is found to be a
public nuisance, by itself,
does not serve as an abatement of the public nuisance.
(4)(5) "Interested party" means any owner, mortgagee,
lienholder, tenant, or person that possesses an interest of
record
in any property that becomes subject to the jurisdiction
of a
court pursuant to this section, and any applicant for the
appointment of a receiver pursuant to this section.
(5)(6) "Neighbor" means any owner of real property,
including, but
not limited to, any person who is purchasing real
property by land
installment contract or under a duly executed
purchase contract,
that is located within five hundred feet of any
real property that
becomes subject to the jurisdiction of a court
pursuant to this
section, and any occupant of a building that is
so located.
(6)(7) "Tenant" has the same meaning as in section 5321.01 of
the Revised Code.
(7)(8) "Subsidized housing" means a property consisting of
more
than four dwelling units that, in whole or in part, receives
project-based assistance pursuant to a contract under any of the
following federal housing programs:
(a) The new construction or substantial rehabilitation
program under section 8(b)(2) of the "United States Housing Act of
1937," Pub. L. No. 75-412, 50 Stat. 888, 42 U.S.C. 1437f(b)(2) as
that program was in effect immediately before the first day of
October, 1983;
(b) The moderate rehabilitation program under section 8(e)(2)
of the "United States Housing Act of 1937," Pub. L. No. 75-412, 50
Stat. 888, 42 U.S.C. 1437f(e)(2);
(c) The loan management assistance program under section 8 of
the "United States Housing Act of 1937," Pub. L. No. 75-412, 50
Stat. 888, 42 U.S.C. 1437f;
(d) The rent supplement program under section 101 of the
"Housing and Urban Development Act of 1965," Pub. L. No. 89-174,
79 Stat. 667, 12 U.S.C. 1701s;
(e) Section 8 of the "United States Housing Act of 1937,"
Pub. L. No. 75-412, 50 Stat. 888, 42 U.S.C. 1437f, following
conversion from assistance under section 101 of the "Housing and
Urban Development Act of 1965," Pub. L. No. 89-174, 79 Stat. 667,
12 U.S.C. 1701s;
(f) The program of supportive housing for the elderly under
section 202 of the "Housing Act of 1959," Pub. L. No. 86-372, 73
Stat. 654, 12 U.S.C. 1701q;
(g) The program of supportive housing for persons with
disabilities under section 811 of the "National Affordable Housing
Act of 1990," Pub. L. No. 101-625, 104 Stat. 4313, 42 U.S.C. 8013;
(h) The rental assistance program under section 521 of the
"United States Housing Act of 1949," Pub. L. No. 90-448, 82 Stat.
551, as amended by Pub. L. No. 93-383, 88 Stat. 696, 42 U.S.C.
1490a.
(8)(9) "Project-based assistance" means the assistance is
attached to the property and provides rental assistance only on
behalf of tenants who reside in that property.
(9)(10) "Landlord" has the same meaning as in section 5321.01
of
the Revised Code.
(B)(1)(a) In any civil action to enforce any local building,
housing, air pollution, sanitation, health, fire, zoning, or
safety code, ordinance, or regulation applicable to buildings,
lands, or subsidized housing
that is commenced in a court of
common pleas,
municipal court,
housing or environmental division
of a municipal
court, or county
court, or in any civil action for
abatement
commenced in a court
of common pleas, municipal court,
housing or
environmental
division of a municipal court, or county
court, by a
municipal
corporation in which the building, land, or
subsidized housing involved
is located, by any
neighbor, tenant,
or by a nonprofit corporation
that is duly
organized and has as
one of its goals the improvement
of housing
conditions in the
county or municipal corporation in
which the
building, land, or
subsidized housing involved is located, if a
building, land, or
subsidized housing is alleged to be a
public nuisance, the
municipal
corporation, neighbor, tenant, or
nonprofit corporation
may apply
in its complaint for an
injunction
or other order as
described in
division (C)(1) of this
section, or
for the relief
described in
division (C)(2) of this
section,
including, if
necessary, the
appointment of a receiver
as
described in
divisions (C)(2) and
(3) of this section, or for
both
such an
injunction or other
order and such relief. The
municipal
corporation, neighbor,
tenant, or nonprofit corporation
commencing
the action is not
liable for the costs, expenses, and
fees of any
receiver
appointed pursuant to divisions (C)(2) and
(3) of this
section.
(b) Prior to commencing a civil action for abatement when the
property alleged to be a public nuisance is subsidized housing,
the municipal corporation, neighbor, tenant, or nonprofit
corporation commencing the action shall provide the landlord of
that property with written notice that specifies one or more
defective conditions that constitute a public nuisance as that
term applies to subsidized housing and states that if the landlord
fails to remedy the condition within sixty days of the service of
the notice, a claim pursuant to this section may be brought on the
basis that the property constitutes a public nuisance in
subsidized housing. Any party authorized to bring an action
against the landlord shall make reasonable attempts to serve the
notice in the manner prescribed in the Rules of Civil Procedure to
the landlord or the landlord's agent for the property at the
property's management office, or at the place where the tenants
normally pay or send rent. If the landlord is not the owner of
record, the party bringing the action shall make a reasonable
attempt to serve the owner. If the owner does not receive service
the person bringing the action shall certify the attempts to serve
the owner.
(2)(a) In a civil action described in division (B)(1) of
this
section, a copy of the complaint and a notice of the date
and time
of a hearing on the complaint shall be served upon the
owner of
the building, land, or subsidized housing and all other interested
parties in
accordance with
the Rules of Civil Procedure. If
certified mail
service, personal
service, or residence service of
the complaint
and notice is
refused or certified mail service of
the complaint
and notice is
not claimed, and if the municipal
corporation,
neighbor, tenant,
or nonprofit corporation
commencing the action
makes a written
request for ordinary mail
service of the
complaint and notice, or
uses publication service,
in accordance
with the Rules of Civil
Procedure, then a copy of
the complaint
and notice shall be posted
in a conspicuous place
on the
building, land, or subsidized housing.
(b) The judge in a civil action described in division
(B)(1)
of this section shall may conduct a summary hearing to consider
and issue any temporary orders that are necessary to protect the
public health, welfare, and safety pending further proceedings.
(c) The judge shall conduct a hearing on the complaint at
least
twenty-eight days
after the owner of the building, land, or
subsidized housing and the other
interested parties
have been
served with a
copy of the complaint
and the notice of
the date
and time of the
hearing in accordance
with division
(B)(2)(a) of
this section.
(c)(d) In considering whether subsidized housing is a public
nuisance, the judge shall construe the standards set forth in
division (A)(2)(b)(A)(3)(c) of this section in a manner
consistent with
department of housing and urban development and
judicial
interpretations of those standards. The judge shall deem
that the
property is not a public nuisance if during the twelve
months
prior to the service of the notice that division (B)(1)(b)
of this
section requires, the department of housing and urban
development's real estate assessment center issued a score of
seventy-five or higher out of a possible one hundred points
pursuant to its regulations governing the physical condition of
multifamily properties pursuant to 24 C.F.R. part 200, subpart P,
and since the most recent inspection, there has been no
significant change in the property's conditions that would create
a serious threat to the health, safety, or welfare of the
property's tenants.
(C)(1) If the judge in a civil action described in
division
(B)(1) of this section finds at the hearing required by
division
(B)(2) of this section that the building involved, land, or
subsidized housing
is a
public
nuisance, if the judge
additionally determines that
the
owner of
the building, land, or
subsidized housing previously has not
been afforded a
reasonable
opportunity to abate the public
nuisance or has been
afforded
such
an opportunity and has not
refused or failed to
abate the
public
nuisance, and if the
complaint of the municipal
corporation,
neighbor, tenant, or
nonprofit corporation
commencing the action
requested the
issuance of an injunction as
described in this
division, then the
judge may issue an
injunction requiring the
owner of the building, land, or
subsidized housing to abate the
public nuisance or issue any
other
order that the judge considers
necessary or appropriate to
cause
the abatement of the public
nuisance. If an injunction is
issued
pursuant to this division,
the owner of the building
involved, land, or subsidized housing shall be given no more than
thirty days from
the
date of
the entry of the judge's order to
comply with the
injunction,
unless the judge, for good cause
shown, extends the
time for
compliance.
(2) If the judge in a civil action described in division
(B)(1) of this section finds at the hearing required by division
(B)(2) of this section that the involves a building involved
is a
public
nuisance, if and the judge additionally determines that
the owner of
the building previously has been
afforded a
reasonable
opportunity
to abate the public nuisance
and has
refused or
failed to do so,
and if the complaint of the
municipal
corporation, neighbor,
tenant, or nonprofit corporation
commencing the action requested
relief as described in this
division, then the judge shall offer
any mortgagee, lienholder,
or other interested party associated
with the property on
which
the building is located, in the order
of the priority of
interest
in title, the opportunity to undertake
the work and to
furnish
the materials necessary to abate the
public nuisance.
Prior to
selecting any interested party, the
judge shall require
the
interested party to demonstrate the
ability to promptly
undertake
the work and furnish the materials
required, to provide
the judge
with a viable financial and
construction plan for the
rehabilitation of the building as
described in
division (D) of
this section, and to post security
for the
performance of the
work and the furnishing of the
materials.
(2) If the judge determines, at the hearing, that the owner
of the building, land, or subsidized housing previously has been
afforded a reasonable opportunity to abate the public nuisance and
has refused or failed to do so and, if the civil action involves a
building, that no interested
party associated with the property on
which the building is located is willing or able to undertake the
work and to furnish the
materials necessary to abate the public
nuisance, or if the judge
determines, at any time after the
hearing, that any party who is
undertaking corrective work
pursuant to this division cannot or
will not proceed, or has not
proceeded with due diligence, the
judge may appoint a receiver
pursuant to division (C)(3) of this
section to take possession and
control of the building, land, or subsidized housing.
(3)(a) The judge in a civil action described in division
(B)(1) of this section shall not appoint any person as a receiver
unless the person first has provided the judge with a viable
financial and construction plan for the rehabilitation of the
building involved, land, or subsidized housing as described in
division (D) of
this section
and
has demonstrated the capacity
and expertise to
perform the
required work and to furnish the
required materials in
a
satisfactory manner. An appointed
receiver may be a financial
institution that possesses an interest
of record in the building
or the property on which it is located,
land, or subsidized housing, a
nonprofit corporation
as
described in divisions (B)(1) and
(C)(3)(b) of this section,
including, but not limited to, a
nonprofit corporation that
commenced the action described in
division (B)(1) of this
section,
or any other qualified property
manager.
(b) To be eligible for appointment as a receiver, no part
of
the net earnings of a nonprofit corporation shall inure to the
benefit of any private shareholder or individual. Membership on
the board of trustees of a nonprofit corporation appointed as a
receiver does not constitute the holding of a public office or
employment within the meaning of sections 731.02 and 731.12 or
any
other section of the Revised Code and does not constitute a
direct
or indirect interest in a contract or expenditure of money
by any
municipal corporation. A member of a board of trustees of
a
nonprofit corporation appointed as a receiver shall not be
disqualified from holding any public office or employment, and
shall not forfeit any public office or employment, by reason of
membership on the board of trustees, notwithstanding any law
to
the contrary.
(D) Prior to ordering an owner, interested party, or receiver
to undertake any work to be undertaken, or the
furnishing of any
materials, to abate a public nuisance under
this
section, the
judge in a civil action described in division
(B)(1)
of this
section shall review the submitted financial and
construction plan
for the rehabilitation of the building involved, land, or
subsidized housing
and, if it specifies all of the following,
shall approve that
plan:
(1) The estimated cost of the labor, materials, and any
other
development costs that are required to abate the public
nuisance;
(2) The estimated income and expenses of the building and
the
property on which it is located, land, or subsidized housing after
the furnishing of the
materials and the completion of the repairs
and improvements;
(3) The terms, conditions, and availability of any
financing
that is necessary to perform the work and to furnish
the
materials;
(4) If repair and rehabilitation of the a building are found
not to be feasible, the cost of demolition of the building or of
the portions of the building that constitute the public nuisance.
(E) Upon the written request of any of the interested
parties
to have a building, or portions of a building, that
constitute a
public nuisance demolished because repair and
rehabilitation of
the building are found not to be feasible, the
judge may order the
demolition. However, the demolition shall
not be ordered unless
the requesting interested parties have paid
the costs of
demolition and, if any, of the receivership, and, if
any, all
notes, certificates, mortgages, and fees of the
receivership.
(F) Before proceeding with the duties of receiver,
any
receiver appointed by the judge in a civil action described in
division
(B)(1) of this section may be required by the judge to
post a
bond in an amount fixed by the judge, but not exceeding the
value
of the building involved, land, or subsidized housing as
determined by
the judge.
The judge may empower the receiver to do any or all of the
following:
(1) Take possession and control of the building and the
property on which it is located, land, or subsidized housing,
operate and manage the
building
and the property, land, or
subsidized housing, establish and collect rents and
income, lease
and rent the building and the property, land, or subsidized
housing, and
evict tenants;
(2) Pay all expenses of operating and conserving the
building
and the property, land, or subsidized housing, including, but not
limited to, the
cost
of
electricity, gas, water, sewerage,
heating fuel, repairs
and
supplies, custodian services, taxes and
assessments, and
insurance
premiums, and hire and pay reasonable
compensation to a
managing
agent;
(3) Pay pre-receivership mortgages or installments of them
and other liens;
(4) Perform or enter into contracts for the performance of
all work and the furnishing of materials necessary to abate, and
obtain financing for the abatement of, the public nuisance;
(5) Pursuant to court order, remove and dispose of any
personal property abandoned, stored, or otherwise located in or
on
the building and the property on which the building is located,
land, or subsidized housing that creates a dangerous or
unsafe
condition or that constitutes a violation of any local
building,
housing, air pollution, sanitation, health, fire,
zoning, or
safety code, ordinance, or regulation;
(6) Obtain mortgage insurance for any receiver's mortgage
from any agency of the federal government;
(7) Enter into any agreement and do those things necessary
to
maintain and preserve the building and the property on which the
building is located, land, or subsidized housing and
comply
with
all local building, housing, air pollution,
sanitation,
health,
fire, zoning, or safety codes, ordinances, and
regulations;
(8) Give the custody of the building and the property on
which the building is located, land, or subsidized housing, and
the opportunity to abate the nuisance and operate
the building
and property, land, or subsidized housing,
to
its owner or any
mortgagee or lienholder
of record;
(9) Issue notes and secure them by a mortgage bearing
interest, and upon terms and conditions, that the judge approves.
When sold or transferred by the receiver in return for valuable
consideration in money, material, labor, or services, the notes
or
certificates shall be freely transferable. Any mortgages
granted
by the receiver shall be superior to any claims of the
receiver.
Priority among the receiver's mortgages shall be
determined by the
order in which they are recorded.
(G) A receiver appointed pursuant to this section is not
personally liable except for misfeasance, malfeasance, or
nonfeasance in the performance of the functions of the
office
of
receiver.
(H)(1) The judge in a civil action described in division
(B)(1) of this section may assess as court costs, the expenses
described in division (F)(2) of this section, and may approve
receiver's fees to the extent that they are not covered by the
income from the property. Subject to that limitation, a receiver
appointed pursuant to divisions (C)(2) and (3) of this section is
entitled to receive fees in the same manner and to the same
extent
as receivers appointed in actions to foreclose mortgages.
(2)(a) Pursuant to the police powers vested in the state,
all
expenditures of a mortgagee, lienholder, or other interested
party
that has been selected pursuant to division (C)(2)(1) of this
section
to undertake the work and to furnish the materials
necessary to
abate a public nuisance, and any expenditures in
connection with
the foreclosure of the lien created by this
division, is a first
lien upon the building involved and the
property on which it the building is
located, land, or subsidized
housing and is superior to all
prior and
subsequent liens or
other
encumbrances associated with
the
building or the and
property,
land, or subsidized housing including,
but not limited
to, those
for taxes and assessments,
upon the
occurrence of both
of the
following:
(i) The prior approval of the expenditures by, and the
entry
of a judgment to that effect by, the judge in the civil
action
described in division (B)(1) of this section;
(ii) The recordation of a certified copy of the judgment
entry and a sufficient description of the property on which the
building is
located, land, or subsidized housing with the county
recorder in the county in
which the property is located within
sixty days after the date of
the entry of the judgment.
(b) Pursuant to the police powers vested in the state, all
expenses and other amounts paid in accordance with division (F)
of
this section by a receiver appointed pursuant to divisions
(C)(2)
and (3) of this section, the amounts of any notes issued
by the
receiver in accordance with division (F) of this section,
all
mortgages granted by the receiver in accordance with that
division, the fees of the receiver approved pursuant to division
(H)(1) of this section, and any amounts expended in connection
with the foreclosure of a mortgage granted by the receiver in
accordance with division (F) of this section or with the
foreclosure of the lien created by this division, are a first
lien
upon the building involved and the property on which it the
building is
located, land, or subsidized housing
and are superior
to all
prior
and subsequent liens or
other
encumbrances
associated with
the
building or the and property, land, or
subsidized housing,
including,
but
not limited to, those for
taxes and assessments,
upon the
occurrence of both of the
following:
(i) The approval of the expenses, amounts, or fees by, and
the entry of a judgment to that effect by, the judge in the civil
action described in division (B)(1) of this section; or the
approval of the mortgages in accordance with division (F)(9) of
this section by, and the entry of a judgment to that effect by,
that judge;
(ii) The recordation of a certified copy of the judgment
entry and a sufficient description of the property on which the
building is
located, land, or subsidized housing, or, in the
case of a mortgage, the
recordation of the mortgage, a certified
copy of the judgment
entry, and such a description, with the
county recorder of the
county in which the property is located
within sixty days after
the date of the
entry of the judgment.
(c) Priority among the liens described in divisions
(H)(2)(a)
and (b) of this section shall be determined as
described in
division (I) of this section. Additionally, the
creation pursuant
to this section of a mortgage lien that is
prior to or superior to
any mortgage of record at the time the
mortgage lien is so
created, does not disqualify the mortgage of
record as a legal
investment under Chapter 1107. or
1151. or any
other chapter of
the Revised Code.
(I)(1) If a receiver appointed pursuant to divisions
(C)(2)
and (3) of this section files with the judge in the civil
action
described in division (B)(1) of this section a report
indicating
that the public nuisance has been abated, if the judge
confirms
that the receiver has abated the public nuisance, and if
the
receiver or any interested party requests the judge to enter
an
order directing the receiver to sell the building and the
property
on which it the building
is located, land, or subsidized housing,
the judge
may enter that order
after
holding a hearing as
described in
division (I)(2) of this
section
and otherwise
complying with that
division.
(2)(a) The receiver or interested party requesting an order
as described in division (I)(1) of this section shall cause a
notice of the date and time of a hearing on the request to be
served on the owner of the building involved, land, or subsidized
housing and
all other
interested parties in accordance with
division (B)(2)(a)
of this
section. The judge in the civil action
described in
division
(B)(1) of this section shall conduct the
scheduled
hearing. At
the
hearing, if the owner or any
interested party
objects to the
sale
of the building and the
property, land, or subsidized housing, the burden of proof shall
be
upon the
objecting person to establish, by a preponderance of
the
evidence, that the benefits of not selling the building and
the
property, land, or subsidized housing outweigh the benefits
of
selling them. If the judge
determines that there is no
objecting
person, or if the judge
determines
that there is one or
more
objecting persons but no
objecting
person has sustained the
burden of proof specified in
this
division, the judge may enter
an order directing the receiver
to
offer the building and the
property, land, or subsidized housing for sale upon terms and
conditions that the judge shall specify.
(b) In any sale of subsidized housing that is ordered
pursuant to this section, the judge shall specify that the
subsidized housing not be conveyed unless that conveyance complies
with applicable federal law and applicable program contracts for
that housing. Any such conveyance shall be subject to the
condition that the purchaser enter into a contract with the
department of housing and urban development or the rural housing
service of the federal department of agriculture under which the
property continues to be subsidized housing and the owner
continues to operate that property as subsidized housing unless
the secretary of housing and urban development or the
administrator of the rural housing service terminates that
property's contract prior to or upon the conveyance of the
property.
(3) If a sale of a building and the
property, on which it
is
located, land,
or subsidized housing is ordered pursuant to
divisions
(I)(1)
and (2) of
this
section and if the sale occurs
in
accordance
with the terms
and
conditions specified by the
judge
in the
judge's order
of
sale,
then the receiver shall
distribute the
proceeds of the sale
and
the
balance of any
funds
that the
receiver may possess, after
the
payment of the
costs of
the
sale, in the following order of
priority and in the
described
manner:
(a) First, in satisfaction of any notes issued by the
receiver pursuant to division (F) of this section, in their order
of priority;
(b) Second, any unreimbursed expenses and other amounts
paid
in accordance with division (F) of this section by the
receiver,
and the fees of the receiver approved pursuant to
division (H)(1)
of this section;
(c) Third, all expenditures of a mortgagee, lienholder, or
other interested party that has been selected pursuant to
division
(C)(2)(1) of this section to undertake the work and to
furnish the
materials necessary to abate a public nuisance,
provided that the
expenditures were approved as described in
division (H)(2)(a) of
this section and provided that, if any such
interested party
subsequently became the receiver, its
expenditures shall be paid
prior to the expenditures of any of
the other interested parties
so selected;
(d) Fourth, the amount due for delinquent taxes,
assessments,
charges, penalties, and interest owed to this state
or a political
subdivision of this state, provided that, if the
amount available
for distribution pursuant to division (I)(3)(d)
of this section is
insufficient to pay the entire amount of those
taxes, assessments,
charges, penalties, and interest, the
proceeds and remaining funds
shall be paid to each claimant in
proportion to the amount of
those taxes, assessments, charges,
penalties, and interest that
each is due.
(e) The amount of any pre-receivership mortgages, liens,
or
other encumbrances, in their order of priority.
(4) Following a distribution in accordance with division
(I)(3) of this section, the receiver shall request the judge in
the civil action described in division (B)(1) of this section to
enter an order terminating the receivership. If the judge
determines that the sale of the building and the property on
which
it is located, land, or subsidized housing, occurred in accordance
with the terms and
conditions
specified by the judge in the
judge's order of
sale under
division (I)(2) of this section and
that the receiver distributed
the proceeds of the sale and the
balance of any funds that the
receiver possessed, after the
payment of the costs of the sale,
in
accordance with division
(I)(3) of this section, and if the
judge
approves any final
accounting required of the receiver, the
judge
may terminate the
receivership.
(J)(1) A receiver appointed pursuant to divisions (C)(2)
and
(3) of this section may be discharged at any time in the
discretion of the judge in the civil action described in division
(B)(1) of this section. The receiver shall be discharged by the
judge as provided in division (I)(4) of this section, or when all
of the following have occurred:
(a) The public nuisance has been abated;
(b) All costs, expenses, and approved fees of the
receivership have been paid;
(c) Either all receiver's notes issued and mortgages
granted
pursuant to this section have been paid, or all the
holders of the
notes and mortgages request that the receiver be
discharged.
(2) If a judge in a civil action described in division
(B)(1)
of this section determines that, and enters of record a
declaration that, a public nuisance has been abated by a
receiver,
and if, within three days after the entry of the
declaration, all
costs, expenses, and approved fees of the
receivership have not
been paid in full, then, in addition to the
circumstances
specified in division (I) of this section for the
entry of such an
order, the judge may enter an order directing
the receiver to sell
the building involved and the property on
which it the building is
located, land, or subsidized housing. Any
such order shall be
entered,
and the
sale shall occur, only in
compliance with
division (I) of
this
section.
(K) The title in any building, and in the property on
which
it the building is located, land, or subsidized housing,
that is
sold at a sale ordered under
division (I)
or (J)(2) of
this
section shall be incontestable in
the purchaser
and shall be
free and clear of all liens for
delinquent taxes,
assessments,
charges, penalties, and interest
owed to this state
or any
political subdivision of this state,
that could not be
satisfied
from the proceeds of the sale and the
remaining funds in
the
receiver's possession pursuant to the
distribution under
division
(I)(3) of this section. All and of all other
liens and
encumbrances
with respect to the building and the
property shall
survive the
sale, including, but
not limited to, land, or
subsidized housing, except a
federal tax lien notice that was
properly filed
in accordance with section
317.09 of the Revised
Code prior to
the time of the sale, and the
easements and
covenants of record
running with the property that
were created
prior to the time of
the sale.
(L)(1) Nothing in this section shall be construed as a
limitation upon the powers granted to a court of common pleas, a
municipal court or a housing or environmental division of a
municipal court under Chapter 1901. of the Revised Code, or a
county court under Chapter 1907. of the Revised Code.
(2) The monetary and other limitations specified in
Chapters
1901. and 1907. of the Revised Code upon the
jurisdiction of
municipal and county courts, and of housing or
environmental
divisions of municipal courts, in civil actions do
not operate as
limitations upon any of the following:
(a) Expenditures of a mortgagee, lienholder, or other
interested party that has been selected pursuant to division
(C)(2)(1) of this section to undertake the work and to furnish the
materials necessary to abate a public nuisance;
(b) Any notes issued by a receiver pursuant to division
(F)
of this section;
(c) Any mortgage granted by a receiver in accordance with
division (F) of this section;
(d) Expenditures in connection with the foreclosure of a
mortgage granted by a receiver in accordance with division (F) of
this section;
(e) The enforcement of an order of a judge entered
pursuant
to this section;
(f) The actions that may be taken pursuant to this section
by
a receiver or a mortgagee, lienholder, or other interested
party
that has been selected pursuant to division (C)(2)(1) of this
section
to undertake the work and to furnish the materials
necessary to
abate a public nuisance.
(3) A judge in a civil action described in division (B)(1)
of
this section, or the judge's successor in office, has
continuing
jurisdiction to review the condition of any building, land, or
subsidized housing that was
determined to be a public nuisance
pursuant to
this section.
Section 2. That existing section 3767.41 of the Revised Code
is hereby repealed.
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