The online versions of legislation provided on this website are not official. Enrolled bills are the final version passed by the Ohio General Assembly and presented to the Governor for signature. The official version of acts signed by the Governor are available from the Secretary of State's Office in the Continental Plaza, 180 East Broad St., Columbus.
|
H. B. No. 619 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
| |
A BILL
To amend sections 1901.185 and 3767.50 of the Revised
Code to allow a municipal corporation to bring an
action in municipal court, rather than only in the
environmental division of a municipal court, to
foreclose an existing lien upon a blighted parcel
located in the municipal corporation provided that
no other foreclosure action affecting the parcel
is being actively prosecuted.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1901.185 and 3767.50 of the Revised
Code be amended to read as follows:
Sec. 1901.185. In addition to jurisdiction otherwise granted
in this chapter, a municipal court or the environmental division,
where established, of the municipal court shall have jurisdiction
within its territory in all of the following actions or
proceedings and to perform all of the following functions:
(A) To exercise exclusive original jurisdiction to hear
actions arising under section 3767.50 of the Revised Code and in
those actions to make findings and orders pertaining to blighted
parcels;
(B) When in aid of execution of a judgment of the municipal
court or the environmental division of the municipal court
rendered pursuant to section 3767.50 of the Revised Code, in
actions for the foreclosure of a mortgage on real property given
to secure the payment of money, or the enforcement of a specific
lien for money or other encumbrance or charge on real property,
when the real property is situated within the territory, to
foreclose all liens and all vested and contingent rights, render
judgments, and make findings and orders, between the parties, in
the same manner and to the same extent as in similar cases in the
court of common pleas.
Sec. 3767.50. (A) For purposes of this section:
(1) "Blighted parcel" has the same meaning as in section 1.08
of the Revised Code.
(2) "Owner" means any of the following:
(a) The owner of record as shown on the current tax list of
the county auditor;
(b) A person who has a freehold or lesser estate in the
premises;
(c) A mortgagee in possession or vendee in possession who
evidences charge, care, or control of the premises, including, but
not limited to, a person to whom the sheriff has issued a deed for
the premises after a judicial sale regardless of whether the deed
has been recorded;
(d) A person who has charge, care, or control of the premises
as executor, administrator, assignee, receiver, trustee, or legal
guardian;
(e) A person who holds the person's self out to be in charge,
care, or control of the premises as evidenced by the negotiation
of written or oral lease agreements for the premises, the
collection of rents for the premises, the performance of
maintenance or repairs on the premises, or the authorization of
others to perform maintenance or repairs on the premises.
(B)(1) A municipal corporation, in addition to any other
remedy authorized by law, has a cause of action in the municipal
court, or in the environmental division, where established, of the
municipal court to foreclose any existing liens upon a blighted
parcel located in the municipal corporation provided that no other
foreclosure action affecting the blighted parcel is being actively
prosecuted in any court of record. It is an affirmative defense to
an action under this division that the owner of the blighted
parcel has not been in default on any mortgage on the property for
twelve months or more or that there is a bankruptcy proceeding
pending in which the blighted parcel has been listed as an asset.
To maintain the action, it is not necessary for the municipal
corporation to have a lien of its own upon the property. Rather,
it is sufficient for the municipal corporation to allege that,
because of the continuing existence of conditions causing the
property to be a blighted parcel, the owner has defaulted on the
terms of any agreement giving rise to a lien for failure to
maintain the property, and then to marshal and plead for
foreclosure of any or all outstanding liens upon the blighted
parcel. Section 3767.50 of the Revised Code does not create a
cause of action regarding any property not subject to a lien. The
municipal corporation shall not marshal a lien held by the United
States, a lien held by this state other than a lien for real
property taxes and assessments, a lien held by a political
subdivision other than itself, or a lien vested by a tax
certificate held under sections 5721.30 to 5721.43 of the Revised
Code. The municipal corporation shall join as a party to the
action a lienholder whose lien is being marshaled and shall notify
the lienholder party that the municipal corporation is proceeding
to foreclose the lien under this section and that the lienholder
party may remediate the conditions of the parcel constituting
blight. If a lienholder party certifies to the court that the
party will remediate the conditions of the parcel constituting
blight within sixty days after the party is served with a copy of
the complaint of the foreclosure action, the municipal corporation
shall move to dismiss the action.
In a judicial sale of a blighted parcel that is ordered as a
result of the foreclosure action, the priority of distribution of
the proceeds from the sale shall not be altered because the
municipal corporation marshaled and foreclosed on one or more
liens. Rather, proceeds from the sale shall be distributed
according to the priorities otherwise established by law.
(2) The A municipal court, or the environmental division,
where established, of the municipal court has exclusive original
jurisdiction of an action under this section.
(C)(1) With respect to any blighted parcel that is or may be
subject to an action under this section, the municipal corporation
may notify the taxing authority of each taxing unit in which the
blighted parcel is located that the municipal corporation is
proceeding to foreclose the lien under this section. The notice
shall state that the taxing authority may preserve its claim on
any distributions of delinquent or unpaid taxes and assessments
charged against the blighted parcel and arising from the judicial
sale proceeds by responding in writing to the municipal
corporation within a period of time to be specified in the notice.
The written response shall be certified by the taxing authority or
by the fiscal officer or other person authorized by the taxing
authority to respond. If such a response is received by the
municipal corporation within the specified time, or if such a
notice is not provided, the taxing authority's claim on
distributions of delinquent or unpaid taxes and assessments
charged against the blighted parcel and payable from proceeds of
the judicial sale shall be preserved and shall be disposed of in
the priority and manner otherwise prescribed by law. If such a
notice is provided and the response is not received within the
specified time, the taxing authority's claim on the delinquent or
unpaid taxes and assessments is extinguished, the lien for such
taxes is satisfied and discharged to the extent of that claim, and
the blighted parcel may be sold at judicial sale free and clear of
such lien to that extent, unless the successful bidder at the
judicial sale is a lienholder of the blighted parcel. If the
successful bidder is a lienholder of the blighted parcel, the lien
for all delinquent or unpaid taxes and assessments charged against
the blighted parcel shall continue until discharged as otherwise
provided by law.
(2) The taxing authority of a taxing unit and a municipal
corporation may enter into an agreement whereby the taxing
authority consents in advance to release the taxing authority's
claim on distributions of delinquent or unpaid taxes and
assessments charged against blighted parcels in the taxing unit's
territory and waives its right to prior notice and response under
division (C)(1) of this section. The agreement shall provide for
any terms and conditions on the release of such claim as are
mutually agreeable to the taxing authority and municipal
corporation, including any option vesting in the taxing authority
the right to revoke its release with respect to any blighted
parcel before the release becomes effective, and the manner in
which notice of such revocation shall be effected.
Section 2. That existing sections 1901.185 and 3767.50 of
the Revised Code are hereby repealed.
|
|