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H. B. No. 223 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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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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