130th Ohio General Assembly
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H. B. No. 223  As Introduced
As Introduced

130th General Assembly
Regular Session
2013-2014
H. B. No. 223


Representatives Grossman, Curtin 

Cosponsors: Representatives Stinziano, Becker, Roegner, Lundy, Duffey, Mallory, Fedor, Hackett, Williams, Antonio, Beck, Driehaus 



A BILL
To amend sections 1901.18, 1901.185, 2329.01, 2329.02, 2329.20, 2329.33, 2329.52, and 2909.05 and to enact sections 2308.01 to 2308.05 and 3767.51 to 3767.56 of the Revised Code to expedite the foreclosure and transfer of unoccupied, blighted parcels and certain abandoned properties and to make other changes relative to residential foreclosure actions.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1.  That sections 1901.18, 1901.185, 2329.01, 2329.02, 2329.20, 2329.33, 2329.52, and 2909.05 be amended and sections 2308.01, 2308.02, 2308.03, 2308.04, 2308.05, 3767.51, 3767.52, 3767.53, 3767.54, 3767.55, and 3767.56 of the Revised Code be enacted to read as follows:
Sec. 1901.18.  (A) Except as otherwise provided in this division or section 1901.181 of the Revised Code, subject to the monetary jurisdiction of municipal courts as set forth in section 1901.17 of the Revised Code, a municipal court has original jurisdiction within its territory in all of the following actions or proceedings and to perform all of the following functions:
(1) In any civil action, of whatever nature or remedy, of which judges of county courts have jurisdiction;
(2) In any action or proceeding at law for the recovery of money or personal property of which the court of common pleas has jurisdiction;
(3) In any action at law based on contract, to determine, preserve, and enforce all legal and equitable rights involved in the contract, to decree an accounting, reformation, or cancellation of the contract, and to hear and determine all legal and equitable remedies necessary or proper for a complete determination of the rights of the parties to the contract;
(4) In any action or proceeding for the sale of personal property under chattel mortgage, lien, encumbrance, or other charge, for the foreclosure and marshalling of liens on personal property of that nature, and for the rendering of personal judgment in the action or proceeding;
(5) In any action or proceeding to enforce the collection of its own judgments or the judgments rendered by any court within the territory to which the municipal court has succeeded, and to subject the interest of a judgment debtor in personal property to satisfy judgments enforceable by the municipal court;
(6) In any action or proceeding in the nature of interpleader;
(7) In any action of replevin;
(8) In any action of forcible entry and detainer;
(9) In any action concerning the issuance and enforcement of temporary protection orders pursuant to section 2919.26 of the Revised Code or protection orders pursuant to section 2903.213 of the Revised Code or the enforcement of protection orders issued by courts of another state, as defined in section 2919.27 of the Revised Code;
(10) If the municipal court has a housing or environmental division, in any action over which the division is given jurisdiction by section 1901.181 of the Revised Code, provided that, except as specified in division (B) of that section, no judge of the court other than the judge of the division shall hear or determine any action over which the division has jurisdiction;
(11) In any action brought pursuant to division (I) of section 4781.40 of the Revised Code, if the residential premises that are the subject of the action are located within the territorial jurisdiction of the court;
(12) In any civil action as described in division (B)(1) of section 3767.41 of the Revised Code that relates to a public nuisance, and, to the extent any provision of this chapter conflicts or is inconsistent with a provision of that section, the provision of that section shall control in the civil action;
(13) In a proceeding brought pursuant to section 955.222 of the Revised Code by the owner of a dog that has been designated as a nuisance dog, dangerous dog, or vicious dog.
(B) The Cleveland and Toledo municipal court courts also shall have jurisdiction within its their territory in all of the following actions or proceedings and to perform all of the following functions:
(1) In all actions and proceedings for the sale of real property under lien of a judgment of the municipal court or a lien for machinery, material, or fuel furnished or labor performed, irrespective of amount, and, in those actions and proceedings, the court may proceed to foreclose and marshal all liens and all vested or contingent rights, to appoint a receiver, and to render personal judgment irrespective of amount in favor of any party.
(2) In all 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 amount claimed by the plaintiff does not exceed fifteen thousand dollars and the real property is situated within the territory, and, in those actions, the court may proceed to foreclose all liens and all vested and contingent rights and may proceed to render judgments and make findings and orders between the parties in the same manner and to the same extent as in similar actions in the court of common pleas.
(3) In all actions for the recovery of real property situated within the territory to the same extent as courts of common pleas have jurisdiction;
(4) In all actions for injunction to prevent or terminate violations of the ordinances and regulations of the city of Cleveland or Toledo enacted or promulgated under the police power of the city of Cleveland or Toledo, pursuant to Section 3 of Article XVIII, Ohio Constitution, over which the court of common pleas has or may have jurisdiction, and, in those actions, the court may proceed to render judgments and make findings and orders in the same manner and to the same extent as in similar actions in the court of common pleas.
Sec. 1901.185.  (A) In addition to jurisdiction otherwise granted in this chapter, 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)(1) 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)(2) When in aid of execution of a judgment of 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.
(B) In addition to jurisdiction otherwise granted in this chapter, the housing or environmental division, where established, of the municipal court shall have jurisdiction within its territory to exercise exclusive original jurisdiction to hear actions arising under section 3767.52 of the Revised Code and in those actions to make findings and orders pertaining to unoccupied, blighted parcels pursuant to sections 3767.52 and 3767.53 of the Revised Code.
Sec. 2308.01. As used in this chapter:
(A) "Residential mortgage" means an obligation to pay a sum of money evidenced by a note and secured by a lien upon a residential property.
(B) "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.
Sec. 2308.02. (A)(1) The plaintiff and any other lienholder, within sixty days after receiving the clerk's notice of the filing of a 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 2308.03 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 2308.03 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 that is the subject of the foreclosure action remain unaffected. Any right to collect any such debt or deficiency thereon remains unenforceable after the expiration of two years after the date of transfer of the property.
(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. 2308.03. (A) Notwithstanding any other provision of the Revised Code, a property upon which a residential mortgage foreclosure action has been filed shall be deemed abandoned and 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 2308.02 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 two times and held two auctions on the property as described in division (B) of section 2329.52 of the Revised Code, and at those auctions no person placed a bid.
(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. 2308.04.  (A) A lender who holds a mortgage on a residential property may document a good faith belief that the owner has abandoned the property. Documentation may include, but is not limited to, a record of any of the following:
(1) Contacting or attempting to contact the owner by telephone at any number available to the lender, including landline and any means of wireless communication, to determine whether the owner has abandoned the property;
(2) Contacting or attempting to contact the owner by regular or electronic mail to determine whether the owner has abandoned the property;
(3) Photographing the property from its exterior to demonstrate signs of neglect or abandonment.
(B) Unless otherwise prohibited by the mortgage contract or a specific provision of law, a lender who has documented a good faith belief that a property on which the lender holds a mortgage is abandoned may enter that property to secure and protect it from damage any time after the lender has filed a residential mortgage foreclosure action on that property.
(C) A lender who has not filed a residential mortgage foreclosure action on a property for which the lender holds a mortgage may enter and secure that property only if the mortgage contract or other documents provide for such an entry.
(D) During the five-year period following the effective date of this section, a plaintiff in a residential mortgage foreclosure action who has a good faith belief that the property is abandoned may provide the court with documentation of a good faith belief that the owner has abandoned the property and request the court to deny the owner the equitable and statutory rights to redemption of the mortgage on that property.
Sec. 2308.05.  A person who is an owner of residential property who knowingly causes physical harm to that property after the person has been personally served with a summons and complaint in a residential mortgage foreclosure action relating to that property is guilty of vandalism in violation of section 2909.05 of the Revised Code.
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 2308.02 of the Revised Code and the consequences of a failure to comply with that section.
Sec. 2329.20.  No Except as otherwise provided in this section or sections 2329.51 and 2329.52 of the Revised Code, no tract of land shall be sold for less than two thirds of the value returned in the inquest required by section 2329.17 of the Revised Code; except that in. In all cases where in which a junior mortgage or other junior lien is sought to be enforced against real estate by an order, judgment, or decree of court, subject to a prior lien thereon, and such prior lien, and the claims or obligations secured thereby, are unaffected by such order, judgment, or decree, the court making such order, judgment, or decree, may determine the minimum amount for which such real estate may be sold, such minimum amount to be not less than two thirds of the difference between the value of the real estate appraised as provided in such section, and the amount remaining unpaid on the claims or obligations secured by such prior lien. The price at which a foreclosed residential property sells at a sheriff's auction shall not be used as a basis for establishing the market value of any other property.
Sec. 2329.33.  In Except as provided in section 2308.02 or any other section of the Revised Code, in sales of real estate on execution or order of sale, at any time before the confirmation thereof, the debtor may redeem it from sale by depositing in the hands of the clerk of the court of common pleas to which such execution or order is returnable, the amount of the judgment or decree upon which such lands were sold, with all costs, including poundage, and interest at the rate of eight per cent per annum on the purchase money from the day of sale to the time of such deposit, except where the judgment creditor is the purchaser, the interest at such rate on the excess above his the judgment creditor's claim. The court of common pleas thereupon shall make an order setting aside such sale, and apply the deposit to the payment of such judgment or decree and costs, and award such interest to the purchaser, who shall receive from the officer making the sale the purchase money paid by him the purchaser, and the interest from the clerk. This 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. 2329.52.  When (A) Except as otherwise provided in division (B) of this section, when premises are ordered to be sold, if said premises, or a part thereof, remain unsold for want of bidders after having been once appraised, advertised, and offered for sale, the court from which the order of sale issued may, on motion of the plaintiff or defendant and from time to time until said premises are disposed of, order a new appraisement and sale or direct the amount for which said premises, or a part thereof, may be sold.
The court may order that the premises be sold as follows: One third cash in hand, one third in nine months from the day of sale, and the remaining one third in eighteen months from the day of sale, the deferred payments to draw interest at six per cent and be secured by a mortgage on the premises.
(B) When a residential property is ordered to be sold pursuant to a residential mortgage foreclosure action, if the property remains unsold after the first auction with a minimum bid of two-thirds of the appraised value as established pursuant to section 2329.17 of the Revised Code, a second auction shall be held with no set minimum bid, and the residential property shall be sold to the highest bidder. A residential property that remains unsold after two auctions shall be deemed abandoned pursuant to section 2308.03 of the Revised Code and is subject to transfer as provided in that section.
Sec. 2909.05.  (A) No person shall knowingly cause serious physical harm to an occupied structure or any of its contents.
(B)(1) No person shall knowingly cause physical harm to property that is owned or possessed by another, when either of the following applies:
(a) The property is used by its owner or possessor in the owner's or possessor's profession, business, trade, or occupation, and the value of the property or the amount of physical harm involved is one thousand dollars or more;
(b) Regardless of the value of the property or the amount of damage done, the property or its equivalent is necessary in order for its owner or possessor to engage in the owner's or possessor's profession, business, trade, or occupation.
(2) No person shall knowingly cause serious physical harm to property that is owned, leased, or controlled by a governmental entity. A governmental entity includes, but is not limited to, the state or a political subdivision of the state, a school district, the board of trustees of a public library or public university, or any other body corporate and politic responsible for governmental activities only in geographical areas smaller than that of the state.
(C) No person, without privilege to do so, shall knowingly cause serious physical harm to any tomb, monument, gravestone, or other similar structure that is used as a memorial for the dead; to any fence, railing, curb, or other property that is used to protect, enclose, or ornament any cemetery; or to a cemetery.
(D) No person, without privilege to do so, shall knowingly cause physical harm to a place of burial by breaking and entering into a tomb, crypt, casket, or other structure that is used as a memorial for the dead or as an enclosure for the dead.
(E) No person who is an owner of a residential property shall knowingly cause physical harm to that property after the person has been personally served with a summons and complaint in a residential mortgage foreclosure action relating to that property.
(F) Whoever violates this section is guilty of vandalism. Except as otherwise provided in this division, vandalism is a felony of the fifth degree that is punishable by a fine of up to two thousand five hundred dollars in addition to the penalties specified for a felony of the fifth degree in sections 2929.11 to 2929.18 of the Revised Code. If the value of the property or the amount of physical harm involved is seven thousand five hundred dollars or more but less than one hundred fifty thousand dollars, vandalism is a felony of the fourth degree. If the value of the property or the amount of physical harm involved is one hundred fifty thousand dollars or more, vandalism is a felony of the third degree.
(F)(G) For purposes of this section:
(1) "Cemetery" means any place of burial and includes burial sites that contain American Indian burial objects placed with or containing American Indian human remains.
(2) "Residential property" has the same meaning as in section 2308.01 of the Revised Code.
(3) "Serious physical harm" means physical harm to property that results in loss to the value of the property of one thousand dollars or more.
Sec. 3767.51.  As used in sections 3767.52 to 3767.56 of the Revised Code:
(A) "Blighted parcel" has the same meaning as in section 1.08 of the Revised Code.
(B) "Unoccupied" means any of the following:
(1) Property that is not physically inhabited or used as a dwelling;
(2) Property on which no trade or business is actively being conducted by the owner or another party occupying the parcel pursuant to a lease or other legal authority;
(3) Property that is uninhabited with no signs or active indications that it is undergoing improvements.
Sec. 3767.52.  (A) A municipal corporation may commence a cause of action by filing a complaint in the housing or environmental division of a municipal court against the owner of property that is an unoccupied, blighted parcel located in that municipal corporation. The complaint shall seek an order that the owner remediate the conditions of the property constituting blight.
(B) Upon commencing an action pursuant to division (A) of this section, a municipal corporation shall do both of the following:
(1) In addition to service required under the Rules of Civil Procedure, cause service of the complaint to all entities that hold a lien or other interest in the property, as indicated in the public record;
(2) Cause service of a notice to all entities that hold a lien or other interest in the property, as indicated in the public record, which states both of the following:
(a) The lienholder or interested person may remediate the conditions of the property constituting blight within a period of time determined by the municipal corporation.
(b) If the blight is not remediated, the housing or environmental division of the municipal court in which the complaint was filed shall order the blighted parcel to be sold free and clear of all liens and interests in the property other than federal tax liens.
(C)(1) A person who receives the complaint and notice described in division (B) of this section shall have sixty days after the service to certify to the court that the person will remediate the conditions of the property constituting blight. A person wishing to certify remediation shall propose to the court a period of time within which the person will remediate the conditions constituting blight. The court may approve or disapprove a certification of remediation. If the court approves the certification, the court shall stay the action until the period of time for remediation has elapsed. If the court disapproves the certification due to a proposal of an unreasonable period of time for remediation, the court shall establish a reasonable period of time within which the person shall remediate the conditions constituting blight. The person shall accept or reject the court's proposed period of time for remediation. If the person accepts the court's proposed period of time for remediation, the person shall certify that it will remediate the conditions constituting blight, and the court shall approve the certification. If the person rejects the court's proposed period of time for remediation, the court shall proceed as if no certification was made.
More than one lienholder or interested person may make a certification for remediation. If more than one person makes a certification, the court shall approve the certification of the lienholder or person who proposes to remediate the conditions constituting blight within the shortest period of time.
(2) If a lienholder or interested person certifies that it will remediate the conditions constituting blight but does not do so within the accepted period of time established pursuant to division (C)(1) of this section, or if no person makes a certification within the period of time stated in the notice described in division (B)(2) of this section, the lien or other interest of the persons in the property shall be extinguished but may be paid pursuant to division (D) of section 3767.54 of the Revised Code. The lienholder may still pursue payment of the debt represented by the lien, and a person may still seek recourse for the loss of other interest against the owner of the property if otherwise permitted by law.
(3) If the lienholder or other interested person remediates the blight, the court shall grant the lienholder or other interested person a lien in the amount expended to remediate the conditions constituting blight.
(D) If the court finds that the property was unoccupied at the time the complaint was filed and is a blighted parcel, and if no lienholder or other interested person has certified in accordance with division (C)(1) of this section that it will remediate the conditions constituting blight or if such a person certifies that it will remediate the blight but fails to timely do so, the court shall order the owner to remediate the conditions constituting blight within a specified period of time. If the blight is not remediated within this period of time, the court shall order the property sold pursuant to sections 3767.53 and 3767.54 of the Revised Code. If the blight is remediated, the court shall dismiss the action.
Sec. 3767.53.  (A) A housing or environmental division of a municipal court shall order the sale of an unoccupied, blighted parcel pursuant to section 3767.54 of the Revised Code by the sheriff of the county where the property is located, if all of the following apply:
(1) The municipal corporation commenced a cause of action by filing a complaint for the owner of the blighted parcel to remediate the conditions of the property constituting blight in accordance with division (A) of section 3767.52 of the Revised Code.
(2) The municipal corporation caused service of the complaint and notice in accordance with division (B) of section 3767.52 of the Revised Code.
(3) One of the following applies:
(a) No lienholder or other interested person certified that it would remediate the conditions constituting blight pursuant to division (C) of section 3767.52 of the Revised Code.
(b) A lienholder or other interested person certified that it would remediate the conditions constituting blight, but does not do so within the accepted period of time established pursuant to division (C) of section 3767.52 of the Revised Code.
(4) The court has entered a finding that the property was unoccupied at the time the complaint described in division (A)(1) of this section was filed and is a blighted parcel pursuant to division (D) of section 3767.52 of the Revised Code.
(5) The court ordered the owner of the property to remediate the conditions constituting blight pursuant to division (D) of section 3767.52 of the Revised Code and the owner failed to do so.
(B) If a court issues an order of sale pursuant to division (A) of this section, the court shall also issue an order that the successful qualified bidder at a sheriff's sale conducted pursuant to section 3767.54 of the Revised Code shall deposit with the municipal corporation that commenced the action under section 3767.52 of the Revised Code a bond as security in the amount the municipal corporation determines necessary to remediate the conditions constituting the blight.
(C) If a property that a housing or environmental division of a municipal court orders sold under this section remains unsold for want of qualified bidders, as defined in section 3767.54 of the Revised Code, after having been advertised and offered for sale in accordance with that section, the court may, on motion of the municipal corporation and from time to time until the property is sold, order a new sale.
(D) The housing or environmental division of a municipal court has exclusive original jurisdiction of an action under sections 3767.52 to 3767.54 of the Revised Code.
Sec. 3767.54.  (A) If the housing or environmental division of a municipal court orders an unoccupied, blighted parcel to be sold pursuant to section 3767.53 of the Revised Code, the sheriff of the county where the property is located shall do all of the following:
(1) Cause notice of the sale, notice of the order issued pursuant to division (B) of section 3767.53 of the Revised Code, and notice that only qualified bidders are eligible to purchase the unoccupied, blighted parcel to be sent to both of the following:
(a) The owner of the property in the same manner as provided in section 2329.091 of the Revised Code;
(b) The public in the same manner as provided in division (A)(2) of section 2329.26 of the Revised Code, except the date, time, and place of the sale need only be published once at least one week before the day of sale by advertisement in a newspaper of general circulation in the county.
(2) Verify that each bidder who intends to bid at the sale is included in the list of qualified bidders provided to the sheriff in accordance with section 3767.55 of the Revised Code and is in possession of proof that the bidder is a qualified bidder;
(3) Conduct the sale of the property.
(B) As a condition of the sale of a property sold pursuant to this section, the winning qualified bidder shall deposit with the municipal corporation that commenced a cause of action under section 3767.52 of the Revised Code a bond in accordance with division (B) of section 3767.55 of the Revised Code. A property sold pursuant to this section shall be sold free and clear of all liens, including all taxes and assessments other than federal taxes, to the highest qualified bidder.
(C) No appraisal of or minimum bid for the property shall be required as a condition of a sale conducted pursuant to this section.
(D) The proceeds of the sale conducted pursuant to this section shall first be paid to satisfy the costs of the municipal corporation for bringing the action under section 3767.52 of the Revised Code and then shall be distributed according to the priorities otherwise established by law, including to lienholders whose liens are extinguished by the sale.
(E)(1) After a sale conducted pursuant to this section, the housing or environmental division of the municipal court shall make an entry on the journal that the court is satisfied of the legality of the sale.
(2) Notwithstanding section 2329.36 of the Revised Code, the municipal corporation who filed the complaint pursuant to division (A) of section 3767.52 of the Revised Code shall file and record the deed of the property in accordance with that section.
(F) As used in sections 3767.53 to 3767.56 of the Revised Code, "qualified bidder" means a person who satisfies all of the following criteria:
(1) Has been prequalified, in accordance with section 3767.55 of the Revised Code;
(2) Has the capacity to remediate the conditions that constitute blight of the blighted parcel;
(3) Has agreed, as a condition of the sale, to own the property for at least eighteen months following the sale and to remediate the conditions constituting blight within the time period the bidder owns the property, to the satisfaction of the municipal corporation that commenced the action under section 3767.52 of the Revised Code in relation to the property.
Sec. 3767.55. A municipal corporation that commences a cause of action under section 3767.52 of the Revised Code shall do the following:
(A)(1) Establish qualifications to allow a person to bid at a sheriff's sale conducted pursuant to section 3767.54 of the Revised Code. The qualifications shall include a requirement that the person be able and willing to remediate the conditions that constitute blight of the unoccupied, blighted parcel and agree to deposit a bond in accordance with division (B) of this section upon submission of the winning bid.
(2) Issue proof of qualification to a qualified bidder in a form determined by the municipal corporation;
(3) Compile a list of qualified bidders for each sale;
(4) Provide the list of qualified bidders to the sheriff conducting the sale at least one day prior to the sale.
(B)(1) Determine the amount of bond that is necessary to remediate the conditions constituting blight of an unoccupied, blighted parcel;
(2) Determine the manner in which a successful qualified bidder at a sheriff's sale conducted pursuant to section 3767.54 of the Revised Code shall deposit the required bond.
Sec. 3767.56.  (A) If the successful qualified bidder of a property sold under section 3767.54 of the Revised Code fails to remediate the conditions constituting blight of the property within eighteen months after the sale, the municipal corporation that commenced the cause of action under section 3767.52 of the Revised Code in relation to that property shall use the bond deposited with the municipal corporation by the bidder in accordance with division (B) of section 3767.55 to remediate the blight.
(B) If the successful qualified bidder of a property sold under section 3767.54 of the Revised Code remediates the conditions constituting blight of the property within eighteen months after the sale, the municipal corporation that commenced the cause of action under section 3767.52 of the Revised Code in relation to that property shall return the bond to the bidder.
Section 2.  That existing sections 1901.18, 1901.185, 2329.01, 2329.02, 2329.20, 2329.33, 2329.52, and 2909.05 of the Revised Code are hereby repealed.
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