Bill Text: IN HB1066 | 2011 | Regular Session | Introduced
Bill Title: Abandoned housing.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-01-05 - First reading: referred to Committee on Judiciary [HB1066 Detail]
Download: Indiana-2011-HB1066-Introduced.html
Citations Affected: IC 32-29; IC 32-30; IC 36-1-6-1.5; IC 36-7.
Synopsis: Abandoned housing. Requires a person who purchases
property at a foreclosure sale to record the deed within 60 days. With
respect to mortgaged real property that the mortgagor surrenders in
writing to the court or to a mortgagee, provides that 30 days after the
date on which the mortgagor surrenders real property the mortgagee is
responsible for ensuring that the property does not violate local
ordinances or nuisance, unsafe building, and vacant and abandoned
structures statutes. Specifies that the mortgagee is personally liable for
ensuring that the property complies with local ordinances or nuisance,
unsafe building, and vacant and abandoned structures statutes, and
provides that the mortgagee may be liable for additional civil penalties
as determined by the appropriate local legislative body. Requires a
mortgagee to whom property has been surrendered to record the
mortgagee's interest in the property not later than 60 days after receipt.
Provides that a mortgagee has the authority to enter onto real property
in order to carry out its responsibilities.
Effective: July 1, 2011.
January 5, 2011, read first time and referred to Committee on Judiciary.
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A BILL FOR AN ACT to amend the Indiana Code concerning
property and to make an appropriation.
(1) execute and deliver to the purchaser; and
(2) except as provided in subsection (b), record with the recorder of the county in which the premises are located;
a deed of conveyance for the premises, which must be valid to convey all the right, title, and interest held or claimed by all of the parties to the action and all persons claiming under them. The sheriff shall file a return with the clerk of the court.
(b) The sheriff is not required to record the deed of conveyance for the premises under subsection (a)(2) if the mortgage involved in the foreclosure action resulting in the foreclosure sale under this chapter was insured by the United States Department of Housing and Urban Development.
(c) This section does not apply if the mortgage involved in the
foreclosure action resulting in the foreclosure sale under this
chapter was insured by the United States Department of Housing
and Urban Development. Not later than sixty (60) days after the
date on which a purchaser receives a deed of conveyance for the
premises, the purchaser shall record the deed with the county
recorder.
(d) A purchaser who fails to record a deed under subsection (c)
may be liable for additional civil penalties if the county legislative
body has established a civil penalty for failure to comply with
subsection (c). A civil penalty collected under this subsection shall
be deposited in the county general fund and shall be appropriated
to the county treasurer for purposes relating to abandoned
property.
Chapter 12. Effect of Surrender in Bankruptcy
Sec. 1. (a) This chapter applies only to mortgaged real property that the mortgagor surrenders in writing to the court or to a mortgagee as a part of or while in bankruptcy proceedings.
(b) This chapter does not apply to mortgaged real property that the mortgagor surrenders to the court or to a mortgagee as a part of or while in bankruptcy proceedings while the real property is occupied by the mortgagor or a tenant.
Sec. 2. (a) Thirty (30) days after the date on which a mortgagor surrenders real property to which this chapter applies, the mortgagee of the property is responsible for:
(1) abating a nuisance under IC 32-30-6;
(2) abating an indecent nuisance under IC 32-30-7;
(3) abating a drug nuisance under IC 32-30-8;
(4) bringing the property into compliance with an ordinance under IC 36-1-6;
(5) complying with IC 36-7-9; and
(6) abating unsafe conditions under IC 36-7-36.
(b) If the real property has one (1) or more mortgagees, each mortgagee is jointly and severally liable for abatement expenses.
(c) Liability for abatement expenses under this chapter is personal liability.
(d) A mortgagee has the authority to enter onto real property described in this chapter to carry out its responsibilities under this section.
Sec. 3. A mortgagee shall properly record the mortgagee's
interest in the property with the county recorder not later than
sixty (60) days after the property is surrendered under this
chapter.
Sec. 4. (a) A mortgagee who fails to carry out the mortgagee's
responsibilities under this chapter may be liable for additional civil
penalties as determined by the:
(1) legislative body of the unit having responsibility for
enforcing the items described in section 2 of this chapter, for
noncompliance with an item described in section 2 of this
chapter; or
(2) county legislative body for failure to record a deed as
required by section 3 of this chapter. A civil penalty collected
under this subdivision shall be deposited in the county general
fund and shall be appropriated to the county treasurer for
purposes relating to abandoned property.
(b) A mortgagee is personally liable for a civil penalty imposed
under this section.
Chapter 13. Surrender of Property to a Mortgagee
Sec. 1. (a) This chapter applies only to mortgaged real property that the mortgagor surrenders to a mortgagee in accordance with section 2 of this chapter.
(b) This chapter does not apply to mortgaged real property:
(1) that the mortgagor surrenders to the court or to a mortgagee as a part of or while in bankruptcy proceedings; or
(2) while the real property is occupied by the mortgagor or a tenant.
Sec. 2. A mortgagor may surrender mortgaged property to a mortgagor as follows:
(1) The mortgagor transmits to the mortgagee by certified mail, return receipt requested:
(A) written notice of the mortgagor's intent to surrender the mortgaged property; and
(B) a valid quitclaim deed transferring the mortgaged property to the mortgagee.
(2) The mortgagor transmits a copy of the notice of intent to surrender the property and a copy of the quitclaim deed to the county auditor.
Sec. 3. (a) Thirty (30) days after the date on which a mortgagor surrenders real property to which this chapter applies in
accordance with section 2 of this chapter, the mortgagee of the
property is responsible for:
(1) abating a nuisance under IC 32-30-6;
(2) abating an indecent nuisance under IC 32-30-7;
(3) abating a drug nuisance under IC 32-30-8;
(4) bringing the property into compliance with an ordinance
under IC 36-1-6;
(5) complying with IC 36-7-9; and
(6) abating unsafe conditions under IC 36-7-36.
(b) If the real property has one (1) or more mortgagees, each
mortgagee is jointly and severally liable for abatement expenses.
(c) Liability for abatement expenses under this chapter is
personal liability.
(d) A mortgagee has the authority to enter onto real property
described in this chapter to carry out its responsibilities under this
section.
Sec. 4. A mortgagee shall properly record the quitclaim deed
received under section 2 of this chapter with the county recorder
not later than sixty (60) days after receipt of the quitclaim deed.
Sec. 5. (a) A mortgagee who fails to carry out the mortgagee's
responsibilities under this chapter may be liable for additional civil
penalties as determined by the:
(1) legislative body of the unit having responsibility for
enforcing the items described in section 3 of this chapter, for
noncompliance with an item described in section 3 of this
chapter; or
(2) county legislative body for failure to record a deed as
required by section 4 of this chapter. A civil penalty collected
under this subdivision shall be deposited in the county general
fund and shall be appropriated to the county treasurer for
purposes relating to abandoned property.
(b) A mortgagee is personally liable for a civil penalty imposed
under this section.
(1) A person who uses, occupies, establishes, maintains, or conducts an indecent nuisance.
(2) The owner (including a mortgagee responsible for the property under IC 32-29-12-2 or IC 32-29-13-3), agent, or lessee of any interest in an indecent nuisance.
(3) A person employed in an indecent nuisance.
(1) each tenant of the property; and
(2) the owner of record, including a mortgagee responsible for the property under IC 32-29-12-2 or IC 32-29-13-3;
that a nuisance exists on the property.
(b) The notice required under this section must specify the following:
(1) The date and time the nuisance was first discovered.
(2) The location on the property where the nuisance is allegedly occurring.
(c) The notice must be:
(1) hand delivered; or
(2) sent by certified mail;
to each tenant and the owner of record.
(d) A person initiating an action to abate a nuisance under this chapter shall:
(1) when notice is provided under this section, produce all evidence in the person's possession or control of the existence of the nuisance; and
(2) if requested by the owner, assist the owner in the production of witness and physical evidence.
"Community organization" means a citizen's group, neighborhood association, neighborhood development corporation, or similar organization that:
(1) has specific geographic boundaries defined in its bylaws or articles of incorporation and contains at least forty (40) households within those boundaries;
(2) is a nonprofit corporation that is representative of at least twenty-five (25) households or twenty percent (20%) of the
households in the community, whichever is less;
(3) is operated primarily for the promotion of social welfare and
general neighborhood improvement and enhancement;
(4) has been incorporated for at least two (2) years; and
(5) is exempt from taxation under Section 501(c)(3) or 501(c)(4)
of the Internal Revenue Code.
"Continuous enforcement order" means an order that:
(1) is issued for compliance or abatement and that remains in full
force and effect on a property without further requirements to
seek additional:
(A) compliance and abatement authority; or
(B) orders for the same or similar violations;
(2) authorizes specific ongoing compliance and enforcement
activities if a property requires reinspection or additional periodic
abatement;
(3) can be enforced, including assessment of fees and costs,
without the need for additional notice or hearing; and
(4) authorizes the enforcement authority to assess and collect
ongoing costs for continuous enforcement order activities from
any party that is subject to the enforcement authority's order.
"Department" refers to the executive department authorized by
ordinance to administer this chapter. In a consolidated city, this
department is the department of metropolitan development, subject to
IC 36-3-4-23.
"Enforcement authority" refers to the chief administrative officer of
the department, except in a consolidated city. In a consolidated city, the
division of development services is the enforcement authority, subject
to IC 36-3-4-23.
"Hearing authority" refers to a person or persons designated as such
by the executive of a city or county, or by the legislative body of a
town. However, in a consolidated city, the director of the department
or a person designated by the director is the hearing authority. An
employee of the enforcement authority may not be designated as the
hearing authority.
"Known or recorded fee interest, life estate interest, or equitable
interest of a contract purchaser" means any fee interest, life estate
interest, or equitable interest of a contract purchaser held by a person
whose identity and address may be determined from:
(1) an instrument recorded in the recorder's office of the county
where the unsafe premises is located;
(2) written information or actual knowledge received by the
department (or, in the case of a consolidated city, the enforcement
authority); or
(3) a review of department (or, in the case of a consolidated city,
the enforcement authority) records that is sufficient to identify
information that is reasonably ascertainable.
"Known or recorded substantial property interest" means any right
in real property, including a fee interest, a life estate interest, a future
interest, a mortgage interest, a lien as evidenced by a certificate of sale
issued under IC 6-1.1-24, or an equitable interest of a contract
purchaser, that:
(1) may be affected in a substantial way by actions authorized by
this chapter; and
(2) is held by a person whose identity and address may be
determined from:
(A) an instrument recorded in:
(i) the recorder's office of the county where the unsafe
premises is located; or
(ii) the office of the county auditor of the county where the
unsafe premises are located in the case of a lien evidenced
by a certificate of sale issued under IC 6-1.1-24;
(B) written information or actual knowledge received by the
department (or, in the case of a consolidated city, the
enforcement authority); or
(C) a review of department (or, in the case of a consolidated
city, the enforcement authority) records that is sufficient to
identify information that is reasonably ascertainable.
"Owner" includes a mortgagee responsible for the property
under IC 32-29-12-2 or IC 32-29-13-3.
"Substantial property interest" means any right in real property that
may be affected in a substantial way by actions authorized by this
chapter, including a fee interest, a life estate interest, a future interest,
a mortgage interest, or an equitable interest of a contract purchaser.
(1) Commercial real property or a vacant structure on commercial real property that is used or was previously used for industrial or commercial purposes, and:
(A) that the owner of the property or structure has declared in writing to be abandoned; or
(B) for which the owner of the property or structure has been given a written order by an enforcement authority to
rehabilitate or demolish, and the owner:
(i) has not applied for a permit to rehabilitate or demolish
the property or structure; or
(ii) applied for and was granted a permit, but rehabilitation
or demolition work has not commenced on the property or
structure within thirty (30) days after the date the permit was
granted.
(2) Real property that has not been used for a legal purpose for at
least six (6) consecutive months and:
(A) in the judgment of an enforcement authority, is in need of
completion, rehabilitation, or repair, and completion,
rehabilitation, or repair work has not taken place on the
property for at least six (6) consecutive months;
(B) on which at least one (1) installment of property taxes is
delinquent; or
(C) that has been declared a public nuisance by a hearing
authority.
(3) Real property that has been declared in writing to be
abandoned by the owner, including an estate or a trust that
possesses the property.
(4) Vacant real property on which a municipal lien has remained
unpaid for at least one (1) year.
(5) Mortgaged real property that has been surrendered in
bankruptcy as described in IC 32-29-12-1 and that is not
occupied by the mortgagor or a tenant.
