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H. B. No. 323 As IntroducedAs Introduced
128th General Assembly | Regular Session | 2009-2010 |
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Cosponsors:
Representatives Chandler, Letson, Okey, Phillips, Koziura, Yuko, Domenick, Foley, Pillich, Driehaus
A BILL
To amend sections 2323.07, 2329.01, 2329.02, 2329.07,
2329.33,
and 3767.41 and to enact sections
2308.01 to
2308.06 of the Revised
Code relative
to foreclosure actions and certain related
nuisance abatement actions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 2323.07, 2329.01, 2329.02, 2329.07,
2329.33,
and
3767.41 be amended and sections
2308.01, 2308.02,
2308.03,
2308.04,
2308.05, and 2308.06 of the Revised
Code be
enacted to
read as follows:
Sec. 2308.01. As used in this chapter:
(A) "Abate," "abatement," and "neighbor" have the same
meanings
as in section 3767.41 of the Revised Code.
(B) "Residential area commercial property mortgage" means an
obligation to pay a sum of money evidenced by a note and secured
by a lien upon a commercial property that meets all of the
following criteria:
(1) The structure or structures on the property total less
than four thousand square feet.
(2) The property is located within five hundred feet of a
residential property.
(3) The property is not a brownfield, as defined in section
122.65 of the Revised Code.
(C) "Residential mortgage" means an obligation to pay a sum
of money evidenced by a note and secured by a lien upon a
residential property.
(D) "Residential property" means real property located within
this state consisting of land and a structure on that land
containing four or fewer dwelling units, each of which is intended
for occupancy by a separate household. "Residential property"
includes a residential condominium unit owned by an individual,
notwithstanding the number of units in the structure, and a
manufactured or mobile home that is subject to real property taxes
under section 4503.06 of the Revised Code.
(E) "Tenant" has the same meaning as in section 5321.01 of
the Revised Code.
Sec. 2308.02. (A) No person shall file a complaint to
initiate a residential mortgage foreclosure action unless that
complaint is accompanied by a writing that contains all of the
following:
(1) A statement setting forth the name of the holder of the
note and asserting that the named holder is the true party in
interest with a right to file the action;
(2) A statement as to whether the mortgage note has been
securitized and if so, the identity of any mortgage-backed
security that holds the loan and the name of the trustee of that
mortgage-backed security;
(3) A statement, based on the best information of the person
making the filing, as to whether the residential property is
occupied and the date that its occupancy status last was assessed.
(B) Within fourteen days after filing a complaint to initiate
a residential mortgage foreclosure action, the plaintiff shall
file with the clerk the preliminary judicial
report that section
2329.191 of the Revised Code requires.
(C) If the mortgagor answers the summons and complaint the
clerk of court issues pursuant to a filing for foreclosure, within
forty-five days following that answer, the plaintiff shall file
with the clerk all of the following:
(1) Based on the best information of the plaintiff, an
estimate of the value of the property. This value may
be the
value the auditor of the county in which the property is
located
has assigned the property in the course of the auditor's
most
recent valuation, a good faith estimate by the plaintiff
considering the property's current condition, or a formal
appraisal conducted by a real estate professional or a licensed
appraiser.
(2)
A copy of a completed property status report in
substantially the
following form or the form that a court
modifies by rule, at the
court's discretion.
"Case Number:.......................
COURT OF COMMON PLEAS
........... COUNTY, OHIO
Judge
Residential Property Status Report
Address: ................................................
Titled Owner(s): ........................................
Number of Units: .......... Occupied: YES NO
If YES, by whom: .....................
If NO, when vacated: .................
Current city code violations: YES NO If YES, attach copy of
violation notice(s)
Abandoned/Unlicensed Vehicles: YES NO
Is this property the subject of litigation in any other
court? YES NO
Is owner a defendant in other foreclosure cases in this
court? YES NO
If YES, list case
number(s):
............................................
How long has current owner owned
property?
................................
If less than 5 years, list previous owners for last five
years:
........................................................
Is this action being brought pursuant to:
(1) R.C. section 5721.39? YES NO
(2) The foreclosure of a residential mortgage loan? YES NO
(Please affix a color photograph of the premises not older than 30
days here)
I certify that the information contained herein is accurate and
true, to the best of my knowledge.
........................ .........................
Attorney for Plaintiff Date"
(D)(1) In a residential mortgage foreclosure action, if the
mortgagor has not filed an answer to the summons and complaint
within sixty days after that answer is due, the plaintiff may file
with the clerk a motion for a default judgment beginning on the
sixty-first day after the answer is due and ending on the one
hundred twenty-first day after the answer is due. The plaintiff
shall include with the motion an affidavit attesting that the
affiant personally inspected the property, attempted to telephone
all residences located on the property, and directed
correspondence to all residences located on the property and that
the affiant has no reason to believe that the premises are
occupied. Upon receiving the motion and accompanying affidavit,
the clerk shall issue a default judgment in favor of the
plaintiff.
(2) In a residential mortgage foreclosure action, if the
mortgagor has not filed an answer to the summons and complaint
within sixty days after that answer is due, and the plaintiff does
not file a motion for a default judgment pursuant to division
(D)(1) of this section, the plaintiff's complaint is dismissed
with prejudice, the plaintiff is deemed to have abandoned any
right to the property or making any claim against the property,
and the plaintiff shall not receive any proceeds from a sale of
the property.
(E) A court may adopt by rule forms that incorporate the
information divisions (A) and (C) of this section require, and may
include
on those forms any additional information that the court
requires,
at the court's discretion.
Sec. 2308.03. (A) No court may issue a judgment that orders
the sale of a
property
that is the subject of a residential
mortgage foreclosure action or residential area commercial
property mortgage foreclosure action,
and no county recorder
shall accept for recording
any deed based
on that sale, if that
property constitutes a public
nuisance as
defined in section
3767.41 of the Revised Code.
(B) Except as otherwise provided in division (D) of this
section, in any residential mortgage foreclosure action or
residential area commercial property mortgage foreclosure action,
a court
may hold a hearing to determine whether there is probable
cause to
believe that the property constitutes a public nuisance.
A court's determination that there is probable cause
to believe
that the property is a public nuisance is a rebuttable
presumption. The court
may hold a probably cause hearing on its
own accord or upon a request made
pursuant to section 2308.04 of
the Revised Code. If the court
holds such a hearing, the court
shall consider whether there is
probable cause on the basis of
any
of the following:
(1) Information the plaintiff provides, including information
contained in the property status report;
(2) Information in a public record that indicates the
existence of a building with air pollution, sanitation, health,
fire, zoning, or safety code violations or other conditions that
constitute a public nuisance;
(3) A court ordered inspection of the property, or a
voluntary authorization of inspection of the property under any
right of the plaintiff to enter the property.
(C)(1) In any hearing held pursuant to division (B) of this
section, the court shall provide the plaintiff in the foreclosure
action with notice of time, date, place, and purpose of the
hearing and provide the plaintiff an opportunity to present
information that the property is not a public nuisance or to
request the court to allow the plaintiff to abate the nuisance. If
the plaintiff wishes to have an opportunity to present information
of that nature or to abate the nuisance, the plaintiff shall
request the opportunity from the court within ten days after
receiving the court's notice of the hearing.
(2) If at the hearing a plaintiff elects to abate the
nuisance, the court
shall grant that request and require the
plaintiff to report to
the court within thirty days on the
progress the plaintiff is
making in abating the nuisance. The
court shall continue with the
foreclosure proceedings if it
determines that the plaintiff is
making reasonable progress in
abating the nuisance condition. If the plaintiff does not make
reasonable progress in abating the nuisance or does not report as
required, the court immediately shall approve any request made
pursuant to section 2308.04 of the Revised Code to bring a
nuisance abatement action.
(D) A court shall stay any probable cause hearing on an
alleged nuisance condition if the mortgagee or any other judgment
creditor submits a writing to the court that pledges to bid at the
sale of the property at least the balance owed on the mortgage
principle on the property and, if the mortgagee or other judgment
creditor is the successful bidder at the sale, to abate the
nuisance subsequent to taking title to the property. If the court
stays a probable cause hearing pursuant to this division and if a
judgment creditor takes title to the property, not later than
thirty days after the judgment creditor takes title to the
property, the judgment creditor shall provide the court with a
written appraisal of progress in abating the alleged nuisance
conditions. If the court does not receive an appraisal of progress
within that time, the court may resume the probable cause hearing.
(E) If the court finds probable cause that the residential
property constitutes a public nuisance, the plaintiff shall file
notice of that finding with the agency that is responsible for
enforcement of housing occupancy codes within the municipal
corporation or county in which the residential property is
located, if there is such an agency. An agency inspecting the
residential property as a result of receiving such a notice may
charge the judgment debtor a reasonable fee to cover the costs of
the inspection.
Sec. 2308.04. (A) Any municipal corporation in which a
property is located, or any neighbor, tenant, or 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 property is located
may intervene as an
interested party at any time prior to the issuance of a judgment
in the foreclosure
proceeding of a
residential property to
request the court's permission to
bring a
civil action under
section 3767.41 of the Revised Code for
the
abatement of a
public nuisance.
(B) If pursuant to a request made pursuant to division (A) of
this section a
court finds under section 2308.03 of the Revised
Code probable
cause to believe that the property is a public
nuisance, the court
may authorize the interested party to bring
an abatement action
and the court shall stay the foreclosure
action to allow hearings to be held
on the public nuisance
pursuant to section 3767.41 of the Revised
Code. The interested
party shall apprise the court of
its
progress in the action in
writing not later than thirty days
after the court grants
permission to bring an action. If the court
does not receive this
notice within the specified
time, it may
resume the
foreclosure
proceedings.
(C) In addition to the requirement that the court find
probable
cause that the property is a public nuisance under
division (B) of
section 2308.03 of the Revised Code, the court
may establish any
guidelines it considers
appropriate as a
condition of granting
the interested party
permission to bring
an abatement action
against the residential
property
undergoing
foreclosure.
(D) Nothing in the section shall be construed as preventing a
court from staying a hearing when a judgment creditor complies
with division (D) of section 2308.03 of the Revised Code.
Sec. 2308.05. (A) Within sixty days after the clerk of court
provides lienholders with the notice of the filing of the
certificate of judgment under division (G) of section
2329.02 of
the Revised Code, the judgment creditor and any other lienholder
may file for a writ of
execution of that judgment. A lienholder
other than the primary
lienholder shall file for a contingent
writ of execution. A
lienholder who fails to file for a writ
within the time frame this
section establishes is deemed to have
abandoned any right to the
judgment and to the property, is
barred
from seeking another
judgment on that property or making
any claim
against the
property, and shall not receive any
proceeds from a
sale of the
property.
(B)(1) Sixty days after providing notice to lienholders of
the
filing of the certificate of judgment, the clerk shall issue
a writ of execution pursuant to section 2329.091 of the Revised
Code in
the order of priority of the liens of the lienholders who
filed
for a writ of execution. The clerk shall direct the officer
conducting the sale to distribute the proceeds from the sale in
the order of priority of the liens of the lienholders who filed
for a writ of execution pursuant to this section.
(2) At its discretion, the court may extend the time period
this section establishes
for filing for a writ of execution or
issuing that writ if the
mortgagee and the mortgagor in the
action so request, for any
reason that the court considers
appropriate.
(C) Notwithstanding sections 2329.09 and 2329.091 of the
Revised Code, a court may stay the issuance of a writ of execution
if the judgment debtor and the judgment creditor, along with all
other lienholders, enter into a forbearance agreement that allows
the judgment debtor to make payments over a specified period of
time and that agreement is filed with the court. The stay shall be
effective so long as all of the parties to the agreement comply
with the terms of the agreement.
Sec. 2308.06. (A) Notwithstanding any other provision of the
Revised Code, if no lienholder files for a writ of execution or a
contingent writ of execution under
section 2308.05 of the Revised
Code, and the property owner does
not redeem the property as
division (B) of section 2329.33 of the
Revised Code provides, the
property owner and lienholders are
deemed to have abandoned all
rights to the property and the
property is deemed an abandoned
property. The title of such a
property vests without further
action in the name of the county
recorder.
(B) When a property is deemed abandoned pursuant to division
(A) of this section, the
prosecuting attorney of the county shall
prepare a deed to convey that property from the judgment debtor to
the county
recorder. The deed shall contain the names of the
parties to the
judgment and the owners of the property, a
reference to
the volume and page of the recording of the
next
preceding
recorded instrument by or through which the county
recorder claims
title, the date and the amount of the judgment,
and the date on
which each lienholder is deemed to have abandoned
the property. The county recorder shall record the deed within
fourteen
business days after the latest date on which a
lienholder is deemed to have abandoned
the property.
(C) The county recorder may dispose of property acquired
under this section pursuant to rules the board of county
commissioners adopts. The rules shall specify that if the county
has a land bank, the county recorder shall place the property in
that land bank pursuant to the rules. If the county does not have
a land bank, the recorder shall dispose of the property pursuant
to the discretion of the board of county commissioners.
Sec. 2323.07. (A)(1) When a mortgage is foreclosed or a
specific
lien enforced, a
sale of the property, or a transfer of
property
pursuant to sections 323.28, 323.65 to 323.78, and
5721.19 of the
Revised Code, shall be ordered by the court having
jurisdiction or
the county board of revision with jurisdiction
pursuant to section
323.66 of the Revised Code.
(2) The sale of property pursuant to judicial procedure is
the only order a court may make for the execution of a judgment on
a residential property when the action was brought by a mortgagee
of that property. As used in this division, "residential property"
has the same meaning as in section 2308.01 of the Revised Code.
(B) When the real property to be sold is in one or more
tracts,
the court may
order the officer who makes the sale to
subdivide,
appraise, and sell them in
parcels, or sell any one of
the tracts
as a whole.
(C) When the mortgaged property is situated in more than one
county, the court may
order the sheriff or master of each county
to make sale of the property in
the sheriff's or master's
county,
or may direct one officer to sell the whole. When it
consists of
a
single tract, the court
may direct that it be sold
as one tract
or in separate parcels, and shall
direct whether
appraisers shall
be selected for each county or one set for
all;
and whether
publication of the sale shall be made in all the
counties, or
in
one county only.
Sec. 2329.01. (A) Lands and tenements, including vested
legal interests therein,
permanent leasehold estates renewable
forever, and goods and chattels, not
exempt by law, shall be
subject to the payment of debts, and liable to be
taken on
execution and sold as provided in sections 2329.02 to 2329.61,
inclusive, of the Revised Code.
(B) As used in sections 2329.02 to 2329.61 of the Revised
Code, "residential mortgage" and "residential property" have the
same meanings as in section 2308.01 of the Revised Code.
Sec. 2329.02. (A) Any judgment or decree rendered by any
court of general
jurisdiction, including district courts of the
United States, within this
state shall be a lien upon lands and
tenements of each judgment debtor within
any county of this state
from the time there is filed in the office of the
clerk of the
court of common pleas of such county a certificate of such
judgment, setting forth the court in which the same was rendered,
the title
and number of the action, the names of the judgment
creditors and judgment
debtors, the amount of the judgment and
costs, the rate of interest, if the
judgment provides for
interest, and the date from which such interest accrues,
the date
of rendition of the judgment, and the volume and page of the
journal
entry thereof.
(B) No such judgment or decree shall be a lien upon any
lands, whether or not
situated within the county in which such
judgment is rendered, registered
under sections 5309.02 to
5309.98, inclusive, and 5310.01 to 5310.21,
inclusive, of the
Revised Code, until a certificate under the hand and
official seal
of the clerk of the court in which the same is entered or of
record, stating the date and purport of the judgment, giving the
number of the
case, the full names of the parties, plaintiff and
defendant, and the volume
and page of the journal or record in
which it is entered, or a certified copy
of such judgment, stating
such facts, is filed and noted in the office of the
county
recorder of the county in which the land is situated, and a
memorial of
the same is entered upon the register of the last
certificate of title to the
land to be affected.
Such certificate shall be made by the clerk of the court in
which the judgment
was rendered, under the seal of said court,
upon the order of any person in
whose favor such judgment was
rendered or upon the order of any person
claiming under him a
person in whose favor such judgment was
rendered, and shall be
delivered to the party so ordering the same;
and the fee therefor
shall be taxed in the costs of the action.
(C) When any such certificate is delivered to the clerk of
the court of common
pleas of any county in this state, the same
shall be filed by such clerk, and
he the clerk shall docket and
index it under the names of the
judgment creditors and the
judgment debtors in a judgment docket, which shall show as to each
judgment
all of the matters set forth in such certificate as
required by this section.
The fee for such filing, docketing, and
indexing shall be taxed as increased
costs of such judgment upon
such judgment docket and shall be included in the
lien of the
judgment.
(D) When the clerk of any court, other than that rendering
the judgment, in whose
office any such certificate is filed, has
docketed and indexed the same,
he the clerk
shall indorse upon
such certificate the fact of such filing with the date
thereof and
the volume and page of the docket entry of such certificate and
shall return the same so indorsed to the clerk of the court in
which the
judgment was rendered, who shall note upon the original
docket the fact of the
filing of said certificate, showing the
county in which the same was filed and
the date of such filing.
When such certificate is filed, docketed, and
indexed in the
office of the clerk of the court which rendered the judgment,
such
clerk shall likewise indorse the certificate and make like
notation upon
the original docket.
Each such judgment shall be deemed to have been rendered in
the county in
which is kept the journal of the court rendering the
same, in which journal
such judgment is entered.
(E) Certificates or certified copies of judgments or decrees
of any courts of
general jurisdiction, including district courts
of the United States, within
this state, may be filed, registered,
noted, and memorials thereof entered, in
the office of the
recorder of any county in which is situated land registered
under
sections 5309.02 to 5309.98, inclusive, and 5310.01 to 5310.21,
inclusive, of the Revised Code, for the purpose of making such
judgments liens
upon such registered land.
(F) Notwithstanding any other provision of the Revised Code,
any judgment issued
in a court of record may be transferred to any
other court of record. Any
proceedings for collection may be had
on such judgment the same as if it had
been issued by the
transferee court.
(G)(1) The clerk of the court shall include a notation on any
certificate that is filed pursuant to the foreclosure of a
residential mortgage that the payment of that judgment shall be
made to the judgment creditor and other lienholders in the order
of the priority of the liens of the lienholders who file for a
writ of execution of judgment pursuant to division (G) of this
section.
(2) When a clerk files a certificate of judgment, the clerk
shall provide notice of that filing to the judgment debtor, the
judgement creditor, and
all lienholders and persons listed in
division (B)(7) of section 2329.191 of
the Revised Code. The
notice shall state that a certificate of
judgment has been filed
and that the lienholder has sixty days
from the date of the
notice to file for a writ of execution to
request the sale of the
property. A lienholder who is not the
primary lienholder shall
file a contingency request for a writ of
execution of judgment.
The clerk shall issue the writ in the order
of priority of the
liens of the lienholders who file pursuant to
this section.
(3) Any lienholder who fails to file for a writ of execution
as division (G) of this section requires shall be deemed to have
abandoned any right to the
lien and has no further right to claim
on the property or to
collect from any proceeds of the sale of
the property.
Sec. 2329.07. (A)(1) If neither execution on a judgment
rendered
in a court of record or certified to the clerk of the
court of
common pleas in the county in which the judgment was
rendered is
issued, nor a certificate of judgment for obtaining a
lien upon
lands and tenements is issued and filed, as provided in
sections
2329.02 and 2329.04 of the Revised Code, within five
years from
the date of the judgment or within five years from the
date of
the issuance of the last execution thereon or the issuance
and
filing of the last such certificate, whichever is later, then,
unless the judgment is in favor of the state, the judgment shall
be dormant and shall not operate as a lien upon the estate of the
judgment debtor.
(2) If the judgment is in favor of the state, the judgment
shall not become dormant and shall not cease to operate as a lien
against the estate of the judgment debtor
provided that either
execution on the judgment is issued or a certificate of
judgment
is issued and filed, as provided in sections 2329.02 and
2329.04
of the Revised Code, within ten years from the date of
the
judgment or within fifteen years from the date of the issuance of
the last execution thereon or the issuance and filing of the last
such certificate, whichever is later, except as otherwise provided
in division (C) of this section. The fifteen-year limitation
period applies to executions issued and certificates of judgments
issued and filed before, on, or after the effective date of the
amendment of this section by ........ of the 126th
general
assembly March 29, 2007.
(B) If, in any county other than that in which a judgment was
rendered, the judgment has become a lien by reason of the filing,
in the office of the clerk of the court of common pleas of that
county, of a certificate of the judgment as provided in sections
2329.02 and 2329.04 of the Revised Code, and if no execution is
issued for the enforcement of the judgment within that county, or
no further certificate of the judgment is filed in that county,
within five years or, if the judgment is in favor of the state,
within fifteen years from the date of issuance of the last
execution
for the enforcement of the judgment within that county
or the
date of filing of the last certificate in that county,
whichever
is the later, then the judgment shall cease to operate
as a lien
upon lands and tenements of the judgment debtor within
that
county, except as otherwise provided in division (C) of this
section. The fifteen-year limitation period applies to executions
issued and certificates of judgments issued and filed before, on,
or after the effective date of the amendment of this section by
H.B. 699 of the 126th general assembly March 29, 2007.
(C)(1) As used in division (C) of this section, "interim
period" means the period beginning September 26, 2003, and ending
September 27, 2006.
(2) Division (C) of this section applies only to judgments in
favor of the state that are subject to this section and to which
both of the following apply:
(a) The first issuance of execution on the judgment, or the
first issuance and filing of the certificate of judgment, was
issued or issued and filed within the ten-year period provided in
this section before the beginning of the interim period;
(b) Subsequent issuance of execution on the judgment or
subsequent issuance and filing of the certificate of judgment
would have been required during the interim period in order to
keep the lien from becoming dormant under this section as this
section existed on September 25, 2003, and as if this section as
it existed on that date had been in effect during the interim
period.
(3) Such a judgment shall not become dormant and shall not
cease to operate as a lien against the estate of the judgment
debtor if either execution on the judgment is issued or a
certificate of judgment is issued and filed, as provided in
sections 2329.02 and 2329.04 of the Revised Code, within fifteen
years after the expiration of the ten-year period following
issuance of the last execution on the judgment or following the
issuance and filing of the last such certificate, whichever is
later.
(D) When a
judgment is issued with respect to a residential
mortgage foreclosure
action, a
judgment creditor and all other
lienholders may
file for a writ of execution of the judgment
pursuant to division (A) of section 2308.05 of the Revised Code
within sixty days
following a notice from the clerk of court that
the clerk has
filed the certificate of judgment. Any lienholder
who fails to file for a writ during the time frame this section
provides is deemed to have abandoned any right to the judgment and
the property, and pursuant to section 2308.05 of the Revised Code
is barred from making further claims against the property.
Sec. 2329.33. In (A) Except as otherwise provided in
division (B) of this section, in sales of real estate on execution
or
order of sale, at any time before the confirmation thereof, the
debtor may redeem it from sale by depositing in the hands of the
clerk of the court of common pleas to which such execution or
order is returnable, the amount of the judgment or decree upon
which such lands were sold, with all costs, including poundage,
and interest at the rate of eight per cent per annum on the
purchase money from the day of sale to the time of such deposit,
except where the judgment creditor is the purchaser, the interest
at such rate on the excess above his the judgment creditor's
claim. The court of common
pleas thereupon shall make an order
setting aside such sale, and
apply the deposit to the payment of
such judgment or decree and
costs, and award such interest to the
purchaser, who shall
receive from the officer making the sale the
purchase money paid
by him the purchaser, and the interest from
the clerk. This
(B) Notwithstanding division (A) of this section, in any
residential mortgage foreclosure action, the judgment debtor may
redeem the property not later than sixty days following the date
the clerk of the court provides notice of the filing of the
certificate of judgment pursuant to section 2329.02 of the Revised
Code. Any such right of redemption expires
at the end of the
business day on the sixtieth day following the
clerk's notice of
filing the certificate of judgment. A judgment debtor may redeem
the property by depositing with the clerk of the court who filed
the
certificate of judgment the amount of the judgment along with
all costs. The
court shall
deposit the amount of the payment to
the satisfaction of the
judgment and order the judgment set
aside.
(C) This section does not
take away the power of the court to
set aside such sale for any
reason for which it might have been
set aside prior to April 16,
1888.
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
building or structure that is occupied by its
owner and that
contains three or fewer residential units when one of the units
is occupied by the owner of the building or
structure unless that
building or structure is a residential
property as defined in
section 2308.01 of the Revised Code and the
nuisance action is
initiated pursuant to section 2308.04 of the Revised
Code.
(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 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, resolution, 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 or township 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,
township, neighbor,
tenant, or
nonprofit corporation may apply in
its complaint for an
injunction, relief,
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, township, 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, township, 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, township,
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 at least
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 not
earlier than
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,
township,
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, land, or subsidized
housing
involved 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 the 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 is a public
nuisance, if the judge additionally determines that the owner of
the building, land, or subsidized housing previously has been was
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, township,
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 no
interested
party associated with the building, land, or subsidized
housing 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 the building 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 the building 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 the building 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, 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, land, or
subsidized housing and comply
with all local building, housing,
air pollution, sanitation,
health, fire, zoning, or safety codes,
ordinances, resolutions,
and
regulations;
(8) Give the custody of the building and the property, 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) 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.
(4) Nothing in this section shall be construed to limit or
prohibit a municipal corporation or township that has filed with
the superintendent of insurance a certified copy of an adopted
resolution, ordinance, or regulation authorizing the procedures
described in divisions (C) and (D) of section 3929.86 of the
Revised Code from receiving insurance proceeds under section
3929.86 of the Revised Code.
Section 2. That existing sections 2323.07, 2329.01, 2329.02,
2329.07,
2329.33, and 3767.41 of the Revised Code
are hereby
repealed.
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