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S. B. No. 277 As IntroducedAs Introduced
127th General Assembly | Regular Session | 2007-2008 |
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Cosponsors:
Senators Seitz, Miller, D., Kearney
A BILL
To enact sections 1901.185 and
3767.50 of the Revised
Code to create a new cause
of action in
foreclosure in the environmental or housing
division of a municipal court to abate nuisance
properties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1901.185 and
3767.50 of the Revised
Code be enacted to read as follows:
Sec. 1901.185. In addition to jurisdiction otherwise granted
in this chapter, the environmental or housing division, where
established, of the municipal court shall have jurisdiction within
its territory in all of the following actions or proceedings and
to perform all of the following functions:
(A) To hear actions arising under section 3767.50 of the
Revised Code;
(B) In any action authorized by section 3767.50 of the
Revised Code, the environmental or housing division of the
municipal court, where established, shall exercise exclusive
original jurisdiction to make findings and orders pertaining to
nuisance properties.
(C) When in aid of execution of a judgment of the
environmental or housing division of the municipal court rendered
pursuant to section 3767.50 of the Revised Code, in actions for
the foreclosure of a mortgage on real property given to secure the
payment of money, or the enforcement of a specific lien for money
or other encumbrance or charge on real property, when the real
property is situated within the territory, and, in those cases,
the environmental or housing division may proceed to foreclose all
liens and all vested and contingent rights and proceed to render
judgments, and make findings and orders, between the parties, in
the same manner and to the same extent as in similar cases in the
court of common pleas.
Sec. 3767.50. (A) For purposes of this section:
(1) "Nuisance property" means a building, premises, real
estate, or an appurtenance thereto that is vacant and
meets any
of the following:
(a) It is out of compliance with any applicable building,
housing, air pollution, sanitation, health, fire, zoning, or
safety code or it is a blighted parcel as defined in section 1.08
of the Revised Code.
(b) Real property taxes remain unpaid on the property at the
time the county auditor delivers the duplicate of the delinquent
land list to the county treasurer under section 5721.011 of the
Revised Code.
(c) The existence of a nuisance or public nuisance on the
property has been admitted or established in a civil action under
section 3767.03 or 3767.41 of the Revised Code and the property
owner has failed to abate the nuisance or public nuisance as
otherwise required under this chapter.
(d) The property was used or occupied by a criminal gang as
defined in section 2923.41 of the Revised Code on more than two
occasions within a one-year period to engage in a pattern of
criminal gang activity as defined in section 2923.41 of the
Revised Code.
(e) The property is used in violation of Chapter 2915. of the
Revised Code.
(2) "Owner" means any of the following:
(a) The owner of record as shown on the current tax list of
the county auditor.
(b) The mortgage holder of record, if any, as shown in the
mortgage records of the county recorder.
(c) A person who has a freehold or lesser estate in the
premises.
(d) A mortgagee or vendee in possession who evidences charge,
care, or control of the premises, including, but not limited to, a
person to whom the sheriff has issued a deed for the premises
after a judicial sale regardless of whether the deed has been
recorded.
(e) A person who has charge, care, or control of the premises
as agent, executor, administrator, assignee, receiver, trustee,
guardian, or lessee.
(f) A person who holds the person's self out to be in charge,
care, or control of the premises as evidenced by the negotiation
of written or oral lease agreements for the premises, the
collection of rents for the premises, the performance of
maintenance or repairs on the premises, or the authorization of
others to perform maintenance or repairs on the premises.
(B) A municipal corporation, in addition to any other remedy
authorized by law, has a cause of action to foreclose liens upon a
nuisance property located in the municipal corporation. The
environmental or housing division of the municipal court has
exclusive
original jurisdiction of the action. To maintain the
action, it is
not necessary for the municipal corporation to have
a lien of its
own upon the property. Rather, it is sufficient for
the municipal
corporation to allege that, because of the
continuing existence of
conditions causing the property to be
nuisance property, the owner
has defaulted on the terms of any
agreement giving rise to a lien
for failure to maintain the
property, and then to marshal and
plead for foreclosure of any or
all outstanding liens upon the
nuisance property. The municipal
corporation shall not marshal a
lien held by the United States,
by this state, or by a political
subdivision other than itself,
or a lien vested by a tax certificate held under sections 5721.30
to 5721.43 of the Revised Code. The municipal corporation shall
join as a party to the action a lienholder whose lien is being
marshaled and shall notify the lienholder party that the municipal
corporation is proceeding to foreclose the lien under this section
and that the lienholder party may abate the nuisance. If a
lienholder party abates the nuisance within forty-five days after
the party is served with notice of the foreclosure action, the
municipal corporation shall move to dismiss the action.
In a judicial sale of a nuisance property that is ordered as
a result of the foreclosure action, the priority of distribution
of the proceeds from the sale shall not be altered because the
municipal corporation marshaled and foreclosed on one or more
liens. Rather, proceeds from the sale shall be distributed
according to the priorities otherwise established by law.
(C)(1) With respect to any nuisance property that is or may
be subject to an action under this section, the municipal
corporation may notify the taxing authority of each taxing unit in
which the nuisance property is located that the municipal
corporation is proceeding to foreclose the lien under this
section. The notice shall state that the taxing authority may
preserve its claim on any distributions of delinquent or unpaid
taxes and assessments charged against the property and arising
from the judicial sale proceeds by responding in writing to the
municipal corporation within a period of time to be specified in
the notice. The written response shall be certified by the taxing
authority or by the fiscal officer or other person authorized by
the taxing authority to respond. If such a response is received by
the municipal corporation within the specified time, or if such a
notice is not provided, the taxing authority's claim on
distributions of delinquent or unpaid taxes and assessments
charged against the property and payable from proceeds of the
judicial sale shall be preserved and shall be disposed of in the
priority and manner otherwise prescribed by law. If such a notice
is provided and the response is not received within the specified
time, the taxing authority's claim on the delinquent or unpaid
taxes and assessments is extinguished, the lien for such taxes is
satisfied and discharged to the extent of that claim, and the
property may be sold at judicial sale free and clear of such lien
to that extent, unless the successful bidder at the judicial sale
is a lienholder of the property. If the successful bidder is a
lienholder of the property, the lien for all delinquent or unpaid
taxes and assessments charged against the property shall continue
until discharged as otherwise provided by law.
(2) The taxing authority of a taxing unit and a municipal
corporation may enter into an agreement whereby the taxing
authority consents in advance to release the taxing authority's
claim on distributions of delinquent or unpaid taxes and
assessments charged against nuisance properties in the taxing
unit's territory and waives its right to prior notice and response
under division (C)(1) of this section. The agreement shall provide
for any terms and conditions on the release of such claim as are
mutually agreeable to the taxing authority and municipal
corporation, including any option vesting in the taxing authority
the right to revoke its release with respect to any nuisance
property before the release becomes effective, and the manner in
which notice of such revocation shall be effected.
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