130th Ohio General Assembly
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Sub. H. B. No. 323  As Reported by the House Housing and Urban Revitalization Committee
As Reported by the House Housing and Urban Revitalization Committee

128th General Assembly
Regular Session
2009-2010
Sub. H. B. No. 323


Representative Murray 

Cosponsors: Representatives Chandler, Letson, Okey, Phillips, Koziura, Yuko, Domenick, Foley, Pillich, Driehaus, Luckie, Winburn, Stewart, Heard 



A BILL
To amend sections 317.13, 323.47, 2303.20, 2323.07, 2329.01, 2329.02, 2329.09, 2329.191, 2329.26, 2329.31, 2329.33, 2329.36, 3767.41, and 5723.01 and to enact sections 2308.01 to 2308.05, 2308.051, and 2308.06 to 2308.15 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 317.13, 323.47, 2303.20, 2323.07, 2329.01, 2329.02, 2329.09, 2329.191, 2329.26, 2329.31, 2329.33, 2329.36, 3767.41, and 5723.01 be amended and sections 2308.01, 2308.02, 2308.03, 2308.04, 2308.05, 2308.051, 2308.06, 2308.07, 2308.08, 2308.09, 2308.10, 2308.11, 2308.12, 2308.13, 2308.14, and 2308.15 of the Revised Code be enacted to read as follows:
Sec. 317.13.  (A) Except as otherwise provided in division (B) of this section, the county recorder shall record in the proper record, in legible handwriting, typewriting, or printing, or by any authorized photographic or electronic process, all deeds, mortgages, plats, or other instruments of writing that are required or authorized by the Revised Code to be recorded and that are presented to the recorder for that purpose. The recorder shall record the instruments in regular succession, according to the priority of presentation, and shall enter the file number at the beginning of the record. On the record of each instrument, the recorder shall record the date and precise time the instrument was presented for record. All records made, prior to July 28, 1949, by means authorized by this section or by section 9.01 of the Revised Code shall be deemed properly made.
(B) The county recorder may refuse to record an instrument of writing presented to the recorder for recording if the instrument is not required or authorized by the Revised Code to be recorded or the recorder has reasonable cause to believe the instrument is materially false or fraudulent. This division does not create a duty upon a recorder to inspect, evaluate, or investigate an instrument of writing that is presented for recording.
(C) If a person presents an instrument of writing to the county recorder for recording and the recorder, pursuant to division (B) of this section, refuses to record the instrument, the person may commence an action in or apply for an order from the court of common pleas in the county that the recorder serves to require the recorder to record the instrument. If the court determines that the instrument is required or authorized by the Revised Code to be recorded and is not materially false or fraudulent, it shall order the recorder to record the instrument.
(D) The county recorder shall not record a deed for the sale or transfer of any residential property if the county auditor's delinquent tax records show that the real property taxes for that property are delinquent for one year or more unless the board of county commissioners exempts the property from this provision when, at its discretion, it concludes that the transfer would be beneficial with respect to nuisance abatement and redevelopment efforts.
Sec. 323.47. (A) If land held by tenants in common is sold upon proceedings in partition, or taken by the election of any of the parties to such proceedings, or real estate is sold by administrators, executors, guardians, or trustees, the court shall order that the taxes, penalties, and assessments then due and payable, and interest on those taxes, penalties, and assessments, that are or will be a lien on such land or real estate at the time the deed is transferred following the sale, be discharged out of the proceeds of such sale or election. For purposes of determining such amount, the county treasurer shall estimate the amount of taxes, assessments, interest, and penalties that will be payable at the time the deed of the property is transferred to the purchaser. If the county treasurer's estimate exceeds the amount of taxes, assessments, interest, and penalties actually payable when the deed is transferred to the purchaser, the officer who conducted the sale shall refund to the purchaser the difference between the estimate and the amount actually payable. If the amount of taxes, assessments, interest, and penalties actually payable when the deed is transferred to the purchaser exceeds the county treasurer's estimate, the officer shall certify the amount of the excess to the treasurer, who shall enter that amount on the real and public utility property tax duplicate opposite the property; the amount of the excess shall be payable at the next succeeding date prescribed for payment of taxes in section 323.12 of the Revised Code.
(B)(1) If real estate is sold at judicial sale, the court shall order that the total of the following amounts shall be discharged out of the proceeds of the sale but only to the extent of such proceeds:
(a)(1) Taxes and assessments the lien for which attaches before the confirmation of sale but that are not yet determined, assessed, and levied for the year in which confirmation occurs, apportioned pro rata to the part of that year that precedes confirmation, and any penalties and interest on those taxes and assessments, the amount of which shall be based on the date of the sale;
(b)(2) All other taxes, assessments, penalties, and interest the lien for which attached for a prior tax year but that have not been paid on or before the date of confirmation.
(2) Upon the request of the officer who conducted the sale, the county treasurer shall estimate the amount in division (B)(1)(a) of this section. If the county treasurer's estimate exceeds that amount, the officer who conducted the sale shall refund to the purchaser the difference between the estimate and the actual amount. If the actual amount exceeds the county treasurer's estimate, the officer shall certify the amount of the excess to the treasurer, who shall enter that amount on the real and public utility property tax duplicate opposite the property; the amount of the excess shall be payable at the next succeeding date prescribed for payment of taxes in section 323.12 of the Revised Code.
Sec. 2303.20.  Under the circumstances described in sections 2969.21 to 2969.27 of the Revised Code, the clerk of the court of common pleas shall charge the fees and perform the other duties specified in those sections. In all other cases, the clerk shall charge the following fees and no more:
(A) Twenty-five dollars for each cause of action which shall include the following:
(1) Docketing in all dockets;
(2) Filing necessary documents, noting the filing of the documents, except subpoena, on the dockets;
(3) Issuing certificate of deposit in foreign writs;
(4) Indexing pending suits and living judgments;
(5) Noting on appearance docket all papers mailed;
(6) Certificate for attorney's fee;
(7) Certificate for stenographer's fee;
(8) Preparing cost bill;
(9) Entering on indictment any plea;
(10) Entering costs on docket and cash book.
(B) Two dollars for taking each undertaking, bond, or recognizance;
(C) Two dollars for issuing each writ, order, or notice, except subpoena;
(D) Two dollars for each name for issuing subpoena, swearing witness, entering attendance, and certifying fees;
(E) Twenty-five dollars for calling a jury in each cause;
(F) Two dollars for each page, for entering on journal, indexing, and posting on any docket;
(G) Three dollars for each execution or transcript of judgment, including indexing;
(H) One dollar for each page, for making complete record, including indexing;
(I) Five dollars for certifying a plat recorded in the county recorder's office;
(J) Five dollars for issuing certificate to receiver or order of reference with oath;
(K) Five dollars for entering satisfaction or partial satisfaction of each lien on record in the county recorder's office, and the clerk of courts' office;
(L) One dollar for each certificate of fact under seal of the court, to be paid by the party demanding it;
(M) One dollar for taking each affidavit, including certificate and seal;
(N) Two dollars for acknowledging all instruments in writing;
(O) Five dollars for making certificate of judgment;
(P) Ten dollars for filing, docketing, and endorsing a certificate of judgment, including the indexing and noting the return of the certificate;
(Q) Twenty-five dollars for each cause of action for each judgment by confession, including all docketing, indexing, and entries on the journal;
(R) Five dollars for recording commission of mayor or notary public;
(S) One dollar for issuing any license except the licenses issued pursuant to sections 1533.101, 1533.11, 1533.13, and 1533.32 of the Revised Code;
(T) Fifteen dollars for docketing and indexing each aid in execution or petition to vacate, revive, or modify judgment, including the filing and noting of all necessary documents;
(U) Twenty-five dollars for docketing and indexing each appeal, including the filing and noting of all necessary documents;
(V) A commission of two per cent on the first ten thousand dollars and one per cent on all exceeding ten thousand dollars for receiving and disbursing money, other than costs and fees, paid to or deposited with the clerk of courts in pursuance of an order of court or on judgments, including moneys invested by order of the court and interest earned on them;
(W) Five dollars for numbering, docketing, indexing, and filing each authenticated or certified copy of the record, or any portion of an authenticated or certified copy of the record, of an extra county action or proceeding;
(X) Two dollars for each certificate of divorce, annulment, or dissolution of marriage to the bureau of vital statistics;
(Y) Two dollars for each electronic transmission of a document, plus one dollar for each page of that document. These fees are to be paid by the party requesting the electronic transmission.
(Z) One dollar for each page, for copies of pleadings, process, record, or files, including certificate and seal;
(AA) An additional fee of twenty dollars for each filing for a residential mortgage foreclosure action.
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. No person shall file a complaint to initiate a residential mortgage foreclosure action unless that complaint includes or is accompanied by all of the following:
(A) A writing that sets forth the name of the holder of the note, asserts that the named holder is the true party in interest with a right to file the action, and states 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;
(B) The preliminary judicial report that section 2329.191 of the Revised Code requires.
Sec. 2308.03. If the owner in a residential mortgage foreclosure action answers or otherwise responds to the clerk's summons and complaint in accordance with the Rules of Civil Procedure, the plaintiff shall file with the clerk both of the following within thirty days after that answer or response:
(A) A copy of a completed residential property status report. The residential property status report shall be substantially in the following form:
"Case Number: ..............
COURT OF COMMON PLEAS
........... COUNTY, OHIO
Judge ..........
Residential Property Status Report
To be completed to the best of the plaintiff's knowledge. If any information is not known please write "Don't Know" in the space provided.
Address: ................................................
Titled Owner(s): ........................................
Number of Units: ..........   Occupied:   YES   NO
If YES, by whom: .....................
If NO, when vacated: .................
The approximate value of the property ............ (This may be your good faith estimate based on information available to you, considering the property's current condition, or the county auditor's most recent valuation or a formal appraisal conducted by a real estate professional or a licensed appraiser.)
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 the property? ................................
If less than 5 years, list previous owners for last five years:
........................................................
(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.
........................      .........................
Signature         Date"
(B) A writing that responds to the following questions:
(1) Has the plaintiff agreed to comply with the federal "Home Affordable Modification Program"?
(2) Has the owner or a representative of the owner been in contact with the plaintiff?
(3) Has the owner applied for a loan modification? If so, has the plaintiff responded to the request? Has the request been accepted or denied, or is it pending?
(4) Has the owner made further payments since the initiation of the foreclosure action?
Sec. 2308.04. A court may adopt by rule forms that incorporate the information that sections 2308.02 and 2308.03 of the Revised Code require. A court may request on those forms any additional information that the court requires, at the court's discretion.
Sec. 2308.05. (A) If the owner in a residential mortgage foreclosure action does not answer or otherwise respond to the clerk's summons and complaint in accordance with the Rules of Civil Procedure, within ten days after the last due date for any defendant who was served with a summons and complaint, the clerk shall notify the plaintiff of that failure to respond and inform the plaintiff that if the property is not occupied, the plaintiff shall either file a motion for default judgment with the court or submit a statement showing cause sufficient to the court why the plaintiff is not filing such a motion. The plaintiff shall file such a motion or statement within sixty days after the date of the clerk's notice.
(B) If a plaintiff fails to comply with division (A) of this section, the court shall dismiss the residential mortgage foreclosure action without prejudice.
Sec. 2308.051.  (A) Notwithstanding any other provision of the Revised Code, a plaintiff may request, at the time the plaintiff files a motion for a default judgment pursuant to section 2308.05 of the Revised Code, the court deem that the title of the property transferred directly and immediately to the plaintiff in lieu of sale and in lieu of a right to a deficiency judgment. A plaintiff may make such a request, and a court may grant such a request, only if all of the following apply:
(1) In the plaintiff's prayer and complaint to initiate the residential mortgage foreclosure action, the plaintiff specifically reserved the right to request the additional relief of a transfer in lieu of sale and in lieu of a right to a deficiency judgment in the event that the plaintiff filed a motion for a default judgment in the course of the foreclosure action.
(2) All liens attached to the property, other than liens for real property taxes, are those of the plaintiff.
(3) The owner did not answer or otherwise respond to the clerk's summons and complaint in accordance with the Rules of Civil Procedure.
(B)(1) Upon receiving a motion for a default judgment accompanied by a request for the additional relief of a transfer in lieu of sale and in lieu of a right to a deficiency judgment that meets the requirements of division (A) of this section, a court immediately shall provide written notice to the owner of that motion and request for additional relief. In that notice, the court shall order the owner to show cause why the court should not enter a default judgment and transfer the property directly and immediately to the plaintiff in lieu of sale and in lieu of a right to a deficiency judgment. An owner shall show cause within thirty days of the court's order or shall be deemed to not oppose the default judgment and transfer of the property to the plaintiff.
(2) When a court grants a request for a transfer in lieu of sale and in lieu of a right to a deficiency judgment pursuant to this section, the plaintiff shall provide the information section 2329.271 of the Revised Code requires as if the plaintiff were the successful purchaser at sale, and the officer who would have made the sale shall prepare the deed as section 2329.31 of the Revised Code requires. The court shall confirm the transfer in lieu of sale and in lieu of a right to a deficiency judgment in the same manner as the court confirms sales under section 2329.31 of the Revised Code. Such transfer shall be deemed a release of the owner's liability on the underlying debt to the plaintiff, and the value of the property shall be deemed to equal the amount of the underlying debt.
Sec. 2308.06. (A) No court may order the sale of a property that is the subject of a residential mortgage foreclosure action or a residential area commercial property mortgage foreclosure action, and no county recorder shall accept for recording any deed based on such a sale, if a court has found probable cause that the property constitutes a public nuisance as defined in section 3767.41 of the Revised Code and the finding of probable cause was not effectively rebutted, reversed, or the nuisance abated.
(B) A court may stay a foreclosure action and hold a probable cause hearing pursuant to this section on its own accord or upon a request made pursuant to section 2308.11 of the Revised Code. At any such hearing, the court shall consider whether there is probable cause of a public nuisance on the basis of any of the following:
(1) Information the plaintiff provides or information contained in the residential 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) A court's determination that there is probable cause to believe that the property is a public nuisance is a rebuttable presumption.
(D) If a 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 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 owner a reasonable fee to cover the costs of the inspection.
Sec. 2308.07. (A) Prior to any probable cause hearing held pursuant to section 2308.06 of the Revised Code, the court shall provide the plaintiff and any lienholder who has appeared in the foreclosure action with notice of the time, date, place, and purpose of the hearing. The notice shall inform the plaintiff and such lienholders of an opportunity to appear at the hearing and shall set forth the procedures for requesting such an appearance.
(B) A plaintiff, any other lienholder, or the owner in the foreclosure action may appear at any probable cause hearing held pursuant to section 2308.06 of the Revised Code for any of the following purposes:
(1) To present information that the property is not a public nuisance;
(2) To request permission to abate the nuisance pursuant to section 2308.08 of the Revised Code while the foreclosure action continues;
(3) To pledge to enter a bid on the property at the sheriff's sale and to abate the nuisance subsequent to gaining title to the property pursuant to section 2308.09 of the Revised Code.
(C) A plaintiff, other lienholder, or owner may request an appearance at a probable cause hearing by submitting a written request for such an appearance to the court within ten days after receiving the court's notice of the hearing.
Sec. 2308.08. (A) At a probable cause hearing held pursuant to section 2308.06 of the Revised Code, a plaintiff or other lienholder may request the court to lift the stay on the foreclosure proceedings and permit the plaintiff or other lienholder to abate the alleged nuisance while the foreclosure action continues. The court may grant such a request and require the party to make an initial report to the court within thirty days on the progress in abating the alleged nuisance. The court may request subsequent reports at its discretion.
(B) The court shall continue with the foreclosure proceedings upon receiving any initial or subsequent report of progress if the court determines that the party abating the alleged nuisance is making reasonable progress. At any time the court determines that the party is not making reasonable progress in abating the alleged nuisance or does not report as required, the court immediately shall stay the foreclosure proceedings and resume the probable cause hearings and may approve any request made pursuant to section 2308.11 of the Revised Code to stay the proceedings so that an interested party may file with the court a motion for the abatement of a public nuisance.
Sec. 2308.09. (A) At any time prior to or during a probable cause hearing, the plaintiff or other lienholder may submit to the court a written pledge to purchase the property at the sale and to abate the alleged nuisance subsequent to taking title to the property. In the writing, the plaintiff or other lienholder shall pledge to bid at least the principal balance owed on its lien on the property and, if the successful bidder at the sale, to abate the nuisance. A plaintiff or other lienholder may present the written pledge at the hearing if the plaintiff or other lienholder requests an appearance pursuant to section 2308.08 of the Revised Code.
(B) The court shall stay any probable cause hearing on an alleged nuisance condition and continue with the foreclosure proceedings upon receiving from a plaintiff or other such lienholder a written pledge made pursuant to this section. The court shall require that the plaintiff or other such lienholder provide a written report of progress within thirty days after taking title to the property. The court shall maintain continuing jurisdiction over the property pursuant to section 2308.10 of the Revised Code and may require any subsequent reports at the court's discretion.
(C) The court shall resume any probable cause hearing and may approve any request to bring a nuisance abatement action if either of the following occur:
(1) It receives information from the officer making the sale that the plaintiff failed to bid as pledged at the auction.
(2) The plaintiff or other lienholder who pledged to abate a nuisance failed to provide the court with a written report of progress in abating the alleged nuisance condition within thirty days after taking title to the property.
Sec. 2308.10. In any foreclosure action in which the court approves the abatement of an alleged nuisance pursuant to section 2308.08 or 2308.09 of the Revised Code, the court shall maintain continuing jurisdiction until the nuisance condition is abated. The court may resume a probable cause hearing at the court's own discretion or upon a complaint by any person named in division (A) of section 2308.11 of the Revised Code and may approve any request made pursuant to that section to bring a nuisance abatement action under section 3767.41 of the Revised Code.
Sec. 2308.11. (A) Any municipal corporation in which a property is located, or any nonprofit corporation that is duly organized and has as one of its primary 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 a foreclosure proceeding of a residential property to request the court to stay the foreclosure action so the interested party may file with the court a motion under section 3767.41 of the Revised Code for the abatement of a public nuisance. Upon such a request that is supported by sufficient evidence, a court, in its discretion, may hold a probable cause hearing pursuant to section 2308.06 of the Revised Code.
(B) If the court finds probable cause to believe that the property is a public nuisance, and if neither the plaintiff nor any other lienholder agreed to abate the alleged nuisance pursuant to section 2308.08 or 2308.09 of the Revised Code, the court may stay the foreclosure action to hold hearings pursuant to section 3767.41 of the Revised Code.
(C) An interested party who the court authorizes to abate the nuisance shall apprise the court of its progress in writing not later than thirty days after the court grants that permission. If the court does not receive this notice within the specified time, it may resume the foreclosure proceedings.
(D) The court may establish any guidelines it considers appropriate as a condition of staying the foreclosure proceedings to enable the interested party to bring an abatement action. Such guidelines shall be in addition to the requirement that the court find probable cause under section 2308.06 of the Revised Code that the property is a public nuisance.
(E) Nothing in this section shall be construed as preventing a court from staying a hearing when a plaintiff makes a request pursuant to section 2308.08 or 2308.09 of the Revised Code.
Sec. 2308.12. (A)(1) The plaintiff and any other lienholder, within sixty days after receiving the clerk's notice of the filing of the judgment of foreclosure under division (G) of section 2329.02 of the Revised Code, shall file for a writ of execution of a judgment in a residential mortgage foreclosure action or show cause for not filing. A lienholder other than the primary lienholder shall file for a contingent writ of execution or show cause why a contingent writ is not being sought within that same sixty-day period. The court shall issue an order accordingly to the owner, the plaintiff, and any other lienholder who appeared in the action stating that, during that same sixty-day period, the owner, the plaintiff, and any other lienholder may show cause why that property should not be deemed abandoned and transferred pursuant to section 2308.13 of the Revised Code. A party may assert any reason that the property should not be deemed abandoned, including those listed under Rule 60 of the Rules of Civil Procedure.
(2) A plaintiff or other lienholder who fails to file for a writ of execution as this section requires and who does not show cause for that failure or why the property should not be deemed abandoned and transferred, and an owner who fails to show cause for why that property should not be deemed abandoned and transferred, shall be deemed to have abandoned all interest in the property and to any right of redemption. Any party who is deemed to have abandoned 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.
(3) The court shall vacate any order of abandonment if the plaintiff or other lienholder files a motion under Rule 60 of the Rules of Civil Procedure, establishing that its failure was due to mistake or inadvertence, or other good cause shown.
(4) If the plaintiff, all other lienholders, and the owner are deemed to have abandoned the property, the property shall be transferred pursuant to section 2308.13 of the Revised Code sixty days after the court enters the order of abandonment, unless a motion to vacate the order has been filed prior to that date. If the motion is denied, the property shall be transferred in accordance with this division.
(5) When a property is deemed abandoned pursuant to this section, the rights of the plaintiff and other lienholders to seek to collect the debts through other means or against assets other than the real property which is the subject of the foreclosure action remain unaffected.
(B) Upon receiving a filing for a writ of execution from the plaintiff, the clerk shall issue the writ of execution pursuant to section 2329.091 of the Revised Code.
(C) 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 plaintiff and the owner in the action so request, for any reason that the court considers appropriate.
(D) Notwithstanding sections 2329.09 and 2329.091 of the Revised Code, a court may for good cause stay the issuance or enforcement of a writ of execution if the owner and the plaintiff, along with all other lienholders, enter into a forbearance or loan modification agreement that allows the owner 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.
(E) No plaintiff or other lienholder may withdraw or dismiss a petition for a writ of execution or an order of sale unless the plaintiff or the owner requests such a dismissal and shows good cause for that dismissal.
Sec. 2308.13. (A) Notwithstanding any other provision of the Revised Code, a property upon which a residential mortgage foreclosure action has been filed is subject to transfer under this section if either of the following occur:
(1) The plaintiff, all other lienholders, and the owner are deemed to have abandoned rights to the property under section 2308.12 of the Revised Code and no party showed cause sufficient to the court as to why the property should not be deemed abandoned.
(2) The officer making the sale has advertised the sale three times and held three auctions on the property, and at those auctions no person placed a bid. Notwithstanding any other section of the Revised Code, the three auctions shall be conducted with the first sale requiring a minimum bid of two-thirds of the appraised value, the second sale requiring a fixed price without reappraisal set at two-thirds of that appraised value, and the third sale being made with the minimum bid as the court sets at its discretion.
(B) The title of a property deemed abandoned pursuant to this section vests without further action in the board of county commissioners in the county where the property is located. The clerk shall issue a notice of that vesting to the board of county commissioners. The county prosecuting attorney shall prepare a deed that contains the names of the parties to the judgment and the owners of the foreclosed property, a reference to the volume and page of the recording of the recorded instrument by or through which the board of county commissioners claims title, the date and the amount of the judgment, and the date on which the owner and each lienholder is deemed to have abandoned the property. The board of county commissioners shall record the deed within fourteen business days after the latest date on which an owner and any lienholder is deemed to have abandoned the property.
(C) The board of county commissioners may dispose of property acquired under this section pursuant to rules it adopts. The rules shall specify that the board shall place the property in the county's land bank if the county has a land bank. If the county does not have a land bank, the board shall dispose of the property at its discretion.
(D) No board of county commissioners shall be liable for damages arising from a breach, or subject to equitable remedies for a breach of common law duty, or for violation of sections 3737.87 to 3737.891 of the Revised Code or Chapter 3704., 3734., 3745., 3746., 3750., 3751., 3752., 6101., or 6111. of the Revised Code or any rule adopted or order, permit, license, variance, or plan approval issued under any of those chapters that is or was committed by another person in connection with a property the board of county commissioners acquires pursuant to this section.
Sec. 2308.14. The officer making a sale pursuant to a residential mortgage foreclosure action shall, upon the sale of the lands and tenements in satisfaction of the writ of judgment, prepare and submit to the court a confirmation order setting forth the information confirming that sale. The information shall include the name of the person making the purchase of the property in sufficient detail so a court may determine if the purchaser is a plaintiff who pledged to purchase then abate a nuisance pursuant to section 2308.09 of the Revised Code.
Sec. 2308.15.  (A) No plaintiff or other lienholder in a residential mortgage foreclosure action may file a motion to dismiss or vacate the judgment, the writ of execution, the order of sale, the sale, or the confirmation of the sale, and no court shall accept such a motion unless for good cause shown.
(B) In any residential mortgage foreclosure action in which a plaintiff and an owner enter into a workout agreement or loan modification, the court shall stay the foreclosure action at any time prior to the sale upon the filing of a motion and affidavit indicating that the plaintiff and owner have entered into a workout agreement or loan modification. If at any time the plaintiff notifies the court that the owner did not make payments as agreed, the court shall notify the owner that it will resume the foreclosure action.
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) No specific lien may be enforced or suit brought on a note on a residential property unless that action initially is brought in a judicial foreclosure proceeding.
(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) When a clerk files a judgment of foreclosure in a residential mortgage foreclosure action, the clerk shall provide notice of that filing to the judgment debtor, the judgment creditor, and any lienholder who has appeared in the action. The notice shall include information with respect to the requirements of section 2308.12 of the Revised Code and the consequences of a failure to comply with that section.
Sec. 2329.09.  (A) The writ of execution against the property of a judgment debtor issuing from a court of record shall command the officer to whom it is directed to levy on the goods and chattels of the debtor. If no goods or chattels can be found, the officer shall levy on the lands and tenements of the debtor. If the court rendering the judgment or decree so orders, real estate may be sold under execution as follows: one third cash on the day of sale, one third in one year, one third in two years thereafter, with interest on deferred payments, to be secured by mortgage on the premises so sold. An execution on a judgment rendered against a partnership firm by its firm name shall operate only on the partnership property. The exact amount of the debt, damages, and costs, for which the judgment is entered, shall be indorsed on the execution.
(B) On any order of sale that the clerk delivers to the officer making the sale in a residential mortgage foreclosure action, the clerk shall include a notation that sets forth all of the clerk's costs with respect to that foreclosure action and sale. The clerk shall deliver a copy of the order of sale to the attorney for the lienholder who filed for the writ of execution.
Sec. 2329.191. (A) As used in this section, "title insurance company" has the same meaning as in section 3953.01 of the Revised Code.
(B) In every action demanding the judicial sale of residential real estate consisting of one to four single-family units, the party seeking that judicial sale shall file with the clerk of the court of common pleas within fourteen days after filing the pleadings requesting relief, together with the complaint a preliminary judicial report on a form that is approved by the department of insurance that is prepared and issued by a duly licensed title insurance agent on behalf of a licensed title insurance company or by a title insurance company that is authorized by the department of insurance to transact business in this state. The preliminary judicial report shall be effective within thirty days prior to the filing of the complaint or other pleading requesting a judicial sale and shall include at least all of the following:
(1) A legal description of each parcel of real estate to be sold at the judicial sale;
(2) The street address of the real estate or, if there is no street address, the name of the street or road upon which the real estate fronts together with the names of the streets or roads immediately to the north and south or east and west of the real estate;
(3) The county treasurer's permanent parcel number or other tax identification number of the real estate;
(4) The name of the owners of record of the real estate to be sold;
(5) A reference to the volume and page or instrument number of the recording by which the owners acquired title to the real estate;
(6) A description of the record title to the real estate; however, easements, restrictions, setback lines, declarations, conditions, covenants, reservations, and rights-of-way that were filed for record prior to the lien being foreclosed are not required to be included;
(7) The name and address of each lienholder and the name and address of each lienholder's attorney, if any, as shown on the recorded lien of the lienholder.
Prior to submitting any order or judgment entry to a court that would order the sale of the residential real estate, the party submitting the order or judgment entry shall file with the clerk of the court of common pleas a final judicial report that updates the state of the record title to that real estate from the effective date of the preliminary judicial report through the date of lis pendens and includes a copy of the court's docket for the case. The cost of the title examination necessary for the preparation of both the preliminary judicial report and the final judicial report together with the premiums for those reports computed as required by the department of insurance, based on the fair market value of the real estate, or in the case of a foreclosure, the principal balance of the mortgage or other lien being foreclosed on or any other additional amount as may be ordered by the court shall be taxed as costs in the case.
(C) In every action demanding the judicial sale of residential real estate consisting of more than four single-family units or of commercial real estate, the party seeking that judicial sale shall file with the clerk of the court of common pleas within fourteen days after filing the pleadings requesting relief together with the complaint either a preliminary judicial report or a commitment for an owner's fee policy of title insurance on the form approved by the department of insurance that is prepared and issued by a duly licensed title insurance agent on behalf of a licensed title insurance company. Division (B) of this section applies if the party seeking the judicial sale files a preliminary judicial report. If the party seeking the judicial sale files a commitment for an owner's fee policy of title insurance, the commitment shall have an effective date within fourteen days prior to the filing of the complaint or other pleading requesting a judicial sale and shall contain at least all of the information required in divisions (B)(1) to (7) of this section. The commitment shall cover each parcel of real estate to be sold, shall include the amount of the successful bid at the judicial sale, shall show the purchaser at the judicial sale as the proposed insured, and shall not expire until thirty days after the recordation of the deed by the officer who makes the sale to that purchaser. After the officer's return of the order of sale and prior to the confirmation of the sale, the party requesting the order of sale shall cause an invoice for the cost of the title insurance policy, commitment cost related expenses, and cancellation fees, if any, to be filed with the clerk of the court of common pleas. The amount of the invoice shall be taxed as costs in the case. The purchaser at the judicial sale may, by paying the premium for the title insurance policy, obtain the issuance of title insurance in accordance with the commitment.
Sec. 2329.26.  (A) Lands and tenements taken in execution shall not be sold until all of the following occur:
(1)(a) Except as otherwise provided in division (A)(1)(b) of this section, the judgment creditor who seeks the sale of the lands and tenements or the judgment creditor's attorney does both of the following:
(i) Causes a written notice of the date, time, and place of the sale to be served in accordance with divisions (A) and (B) of Civil Rule 5 upon the judgment debtor and upon each other party to the action in which the judgment giving rise to the execution was rendered;
(ii) At least seven calendar days prior to the date of the sale, files with the clerk of the court that rendered the judgment giving rise to the execution a copy of the written notice described in division (A)(1)(a)(i) of this section with proof of service endorsed on the copy in the form described in division (D) of Civil Rule 5.
(b) Service of the written notice described in division (A)(1)(a)(i) of this section is not required to be made upon any party who is in default for failure to appear in the action in which the judgment giving rise to the execution was rendered.
(2) The officer taking the lands and tenements gives public notice of the date, time, and place of the sale for at least three weeks before the day of sale by advertisement in a newspaper published in and of general circulation in the county. The court ordering the sale may designate in the order of sale the newspaper in which this public notice shall be published, and this public notice is subject to division (A) of section 2329.27 of the Revised Code.
(3) The officer taking the lands and tenements shall collect collects the purchaser's information required by section 2329.271 of the Revised Code.
(B) The officer making the sale may accept a written bid from a lienholder at any time prior to that sale. The public notice of the sale may include notice of this opportunity to make a written bid prior to the sale. The officer may, at the officer's discretion, open the bidding at the amount of any written bid.
(C) If the purchaser at a sale is a lienholder, the officer making the sale shall not charge the purchaser any deposit or other fees prior to the time at which the purchase price is due pursuant to division (B) of section 2329.31 of the Revised Code.
(D) If the purchaser at sale plans to assign the right to purchase that property to another party, and that party will pay the balance of the purchase price to the officer making the sale, the assignment of the purchaser's bid may be made at any time prior to the preparation of the deed, and notice of that assignment may be filed with the officer at any time prior to the preparation of the deed.
(E) A sale of lands and tenements taken in execution may be set aside in accordance with division (B) of section 2329.27 of the Revised Code.
Sec. 2329.31. (A) Upon (1) Except as otherwise provided in division (A)(2) of this section, upon the return of any writ of execution for the satisfaction of which lands and tenements have been sold, on careful examination of the proceedings of the officer making the sale, if the court of common pleas finds that the sale was made, in all respects, in conformity with sections 2329.01 to 2329.61 of the Revised Code, it shall, within thirty days of the return of the writ, direct the clerk of the court of common pleas to make an entry on the journal that the court is satisfied of the legality of such sale and that the attorney who filed the writ of execution make to the purchaser a deed for the lands and tenements. Nothing
(2) In any sale pursuant to a residential mortgage foreclosure action, if the clerk of court receives no written objection to that sale within seven days after the return to the clerk of the writ of execution, on careful examination of the proceedings of the officer making the sale, the court shall deem that the sale is final and shall confirm that sale. The clerk shall make an entry on the journal that the sale is deemed legal.
(3) Nothing in this section prevents the court of common pleas from staying the confirmation of the sale to permit a property owner time to redeem the property or for any other reason that it determines is appropriate. In those instances, the sale shall be confirmed within thirty days after the termination of any stay of confirmation.
(B) The officer making the sale shall require the purchaser, including a lienholder, to pay within thirty days of after the confirmation of the sale the balance amount due on the purchase price of the lands and tenements unless the court grants the purchaser an extension for good cause.
Sec. 2329.33.  In sales of real estate on execution or order of sale, at any time before the confirmation thereof or, if a residential foreclosure action, not later than sixty days following the clerk's notice of the filing of the judgment, 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 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. 2329.36. (A) The attorney who files the writ of execution shall, not later than seven days after the filing of clerk files the order of confirmation of sale pursuant to section 2329.31 of the Revised Code, make to the purchaser a deed, containing the names of the parties to the judgment, the names of the owners of the property sold, a reference to the volume and page of the recording of the next preceding recorded instrument by or through which the owners claim title, the date and amount of the judgment, the substance of the execution or order on which the property was sold, the substance of the officer's return thereon, and the order of confirmation and deliver the deed to the officer who sold the real property. The deed shall be executed, acknowledged, and recorded as other deeds. The officer or the officer's legal representative may review and approve or reject the deed for form and substance.
(B) By placing a bid at a sale conducted pursuant to this chapter, the purchaser appoints the officer who makes the sale as agent of the purchaser for the sole purpose of accepting delivery of the deed described in division (A) of this section.
(C)(1) The officer who sells the real property shall record the deed, or for registered land file the documents required by section 5309.64 of the Revised Code, with the county recorder within fourteen business days of after the date the purchaser pays the balance due on the purchase price of the lands and tenements. The officer shall charge the purchaser a fee to cover the actual costs of preparing and recording the deed or filing the documents.
(2) Notwithstanding division (C)(1) of this section, a purchaser may deliver any remaining balance of the purchase price to the officer making the sale, together with an affidavit stating the purchaser will submit the deed for recording within seven days after receipt of the deed. Upon receiving the remaining balance and affidavit, the officer making the sale shall release the unrecorded deed to the purchaser who shall submit that deed for recording within the seven-day period and deliver evidence of the same to the sheriff or face penalties for contempt of court. If the purchaser fails to deliver evidence to the sheriff that the deed has been submitted for recording with the seven-day period, the sheriff shall notify the court and the court shall schedule proceedings against the purchaser for contempt of court.
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 2308.06 or 2308.11 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.
Sec. 5723.01.  (A)(1) Every tract of land and town lot, which, pursuant to foreclosure proceedings under section 323.25, sections 323.65 to 323.79, or section 5721.18 of the Revised Code, has been advertised and offered for sale on two separate occasions, not less than two weeks apart, and not sold for want of bidders, shall be forfeited to the state or to a political subdivision, school district, or county land reutilization corporation pursuant to division (A)(3) of this section.
(2) The county prosecuting attorney shall certify to the court that such tract of land or town lot has been twice offered for sale and not sold for want of a bidder. Such forfeiture of lands and town lots shall be effective when the court by entry orders such lands and town lots forfeited to the state or to a political subdivision, school district, or county land reutilization corporation pursuant to division (A)(3) of this section. A copy of such entry shall be certified to the county auditor and, after the date of the certification, all the right, title, claim, and interest of the former owner is transferred to and vested in the state to be disposed of in compliance with this chapter.
(3) After having been notified pursuant to division (A)(2) of this section that the tract of land or town lot has been twice offered for sale and not sold for want of bidders, the court shall notify the political subdivision and school district in which the property is located, and any county land reutilization corporation in the county, and offer to forfeit the property to the political subdivision, school district, or corporation, or to an electing subdivision as defined in section 5722.01 of the Revised Code, upon a petition from the political subdivision, school district, or corporation. If no such petition is filed with the court within ten days after notification by the court, the court shall forfeit the property to the state. If a political subdivision, school district, or corporation requests through a petition to receive the property through forfeiture, the forfeiture of land and town lots is effective when, by entry, the court orders such lands and town lots forfeited to the political subdivision, school district, or corporation. The court shall certify a copy of the entry to the county auditor and, after the date of certification, all the right, title, claim, and interest of the former owner is transferred to and vested in the political subdivision, school district, or corporation the county auditor shall promptly transfer to such political subdivision, school district, or corporation, by auditor's deed, the fee simple title to the property free and clear of all taxes, assessments, charges, penalties, interest, and costs. Any subordinate liens shall be deemed fully and forever satisfied and discharged and the property shall be deemed sold by the state for no consideration. The political subdivision, school district, or corporation shall file the deed for recording.
(B) Every parcel against which a judgment of foreclosure and forfeiture is made in accordance with section 5721.16 of the Revised Code is forfeited to the state on the date the court enters a finding under that section. After that date, all the right, title, claim, and interest of the former owner is transferred to the state to be disposed of in compliance with the relevant provisions of this chapter.
Section 2. That existing sections 317.13, 323.47, 2303.20, 2323.07, 2329.01, 2329.02, 2329.09, 2329.191, 2329.26, 2329.31, 2329.33, 2329.36, 3767.41, and 5723.01 of the Revised Code are hereby repealed.
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