Bill Text: IN HB1317 | 2013 | Regular Session | Introduced
Bill Title: Land banks.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-05-13 - Public Law 110 [HB1317 Detail]
Download: Indiana-2013-HB1317-Introduced.html
Citations Affected: IC 6-1.1; IC 32-29-7-3; IC 32-30; IC 36-1-11-1;
IC 36-7.
Effective: July 1, 2013.
January 15, 2013, read first time and referred to Committee on Government and Regulatory
Reform.
Digest Continued
building law to file a praecipe for a sheriff's sale following a
foreclosure action if: (1) the creditor does not file a praecipe within 90
days; and (2) the enforcement authority has issued an abatement order
with respect to the property. Allows an enforcement authority to
petition a court to determine that a property is abandoned before a
creditor has filed a foreclosure action. Requires the enforcement
authority to serve a copy of its petition on the debtor, creditor, and any
other appropriate party. Provides that, if a court finds that the property
is abandoned, the creditor shall file a foreclosure action within 90 days.
Makes conforming amendments.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Sec. 1. The following definitions apply throughout this chapter and IC 6-1.1-25:
(1) "County executive" means the following:
(A) In a county not containing a consolidated city, the county executive or the county executive's designee.
(B) In a county containing a consolidated city, the executive of the consolidated city.
(2) "Land bank" has the meaning set forth in IC 36-7-37-1(3).
(3) "Substantial property interest of public record" means title to or interest in a tract possessed by a person and recorded in the office of a county recorder or available for public inspection in the office of a circuit court clerk not later
than the hour and date the sale or transfer is scheduled to
begin under this chapter. The term does not include a lien
held by the state or a political subdivision.
(1) for real property located in a municipality (as defined in IC 36-1-2-11) in a county other than Marion County:
(A) the building commissioner's office, if the municipality has a building commissioner; or
(B) the official of the municipality having the equivalent responsibilities of a building commissioner, if the municipality does not have a building commissioner; or
(2) the county executive, if subdivision (1) does not apply.
(a)
(1) In the case of real property other than real property described in subdivision (2), any property taxes or special assessments certified to the county auditor for collection by the county treasurer from the prior year's spring installment or before are delinquent as determined under IC 6-1.1-37-10 and the delinquent property tax or special assessments due exceed twenty-five dollars ($25).
(2) In the case of real property for which
(A) vacant; or
(B) abandoned;
any property taxes or special assessments from the prior year's fall installment or before that are delinquent as determined under IC 6-1.1-37-10.
(3) Any unpaid costs are due under section 2(b) of this chapter from a prior tax sale.
eligible for sale. Except as provided in section 1.2 or another provision
of this chapter, the taxpayer's property shall remain on the list. The list
must:
(1) describe the real property by parcel number and common
address, if any;
(2) for a tract or item of real property with a single owner,
indicate the name of the owner; and
(3) for a tract or item with multiple owners, indicate the name of
at least one (1) of the owners.
(c) (d) Except as otherwise provided in this chapter, the real
property so listed is eligible for sale in the manner prescribed in this
chapter.
(d) (e) Not later than fifteen (15) days after the date of the county
treasurer's certification under subsection (a), (b), the county auditor
shall mail by certified mail a copy of the list described in subsection (b)
(c) to each mortgagee who requests from the county auditor by certified
mail a copy of the list. Failure of the county auditor to mail the list
under this subsection does not invalidate an otherwise valid sale.
(1) prepare a list of the properties certified by the commission; and
(2) delete any property described in that list from the delinquent tax list prepared under section 1 of this chapter.
possessed by a person and recorded in the office of a county recorder
or available for public inspection in the office of a circuit court clerk
no later than the hour and date the sale is scheduled to commence
under this chapter. The term does not include a lien held by the state or
a political subdivision.
(1) A list of tracts or real property eligible for sale under this chapter.
(2) A statement that the tracts or real property included in the list will be sold at public auction to the highest bidder, subject to the right of redemption.
(3) A statement that the tracts or real property will not be sold for an amount which is less than the sum of:
(A) the delinquent taxes and special assessments on each tract or item of real property;
(B) the taxes and special assessments on each tract or item of real property that are due and payable in the year of the sale, whether or not they are delinquent;
(C) all penalties due on the delinquencies;
(D) an amount prescribed by the county auditor that equals the sum of:
(i) the greater of twenty-five dollars ($25) or postage and publication costs; and
(ii) any other actual costs incurred by the county that are directly attributable to the tax sale; and
(E) any unpaid costs due under subsection (b) from a prior tax sale.
(4) A statement that a person redeeming each tract or item of real property after the sale must pay:
(A)
(i) one and five-tenths percent (1.5%) per month on the amount of the minimum bid for which the tract or item of real property was offered at the time of sale, if the tract or item real property is not certified as vacant or
abandoned property; or
(ii) five percent (5%) per month on the amount of the
minimum bid for which the tract or item of real property
was offered at the time of sale, if the tract or item of real
property is certified as vacant or abandoned property;
(B) one hundred fifteen percent (115%) of the amount of the
minimum bid for which the tract or item of real property was
offered at the time of sale if the tract or item of real property is
redeemed more than six (6) months after the date of sale;
(C) (B) the amount by which the purchase price exceeds the
minimum bid on the tract or item of real property, plus:
(i) one and five-tenths percent (1.5%) per month on the
amount by which the purchase price exceeds the
minimum bid, if the tract or item real property is not
certified as vacant or abandoned property; or
(ii) ten five percent (10%) (5%) per annum month on the
amount by which the purchase price exceeds the minimum
bid, if the tract or item of real property is certified as
vacant or abandoned property; and
(D) (C) all taxes and special assessments on the tract or item
of real property paid by the purchaser after the tax sale plus
interest at the rate of:
(i) ten one and five-tenths percent (10%) (1.5%) per
annum month on the amount of taxes and special
assessments paid by the purchaser on the redeemed
property, if the tract or item real property is not certified
as vacant or abandoned property; or
(ii) five percent (5%) per month on the amount of the
minimum bid for which the tract or item of real property
was offered at the time of sale, if the tract or item of real
property is certified as vacant or abandoned property.
(5) A statement for informational purposes only, of the location
of each tract or item of real property by key number, if any, and
street address, if any, or a common description of the property
other than a legal description. The township assessor, or the
county assessor if there is no township assessor for the township,
upon written request from the county auditor, shall provide the
information to be in the notice required by this subsection. A
misstatement in the key number or street address does not
invalidate an otherwise valid sale.
(6) A statement that the county does not warrant the accuracy of
the street address or common description of the property.
(7) A statement indicating:
(A) the name of the owner of each tract or item of real property with a single owner; or
(B) the name of at least one (1) of the owners of each tract or item of real property with multiple owners.
(8) A statement of the procedure to be followed for obtaining or objecting to a judgment and order of sale, that must include the following:
(A) A statement:
(i) that the county auditor and county treasurer will apply on or after a date designated in the notice for a court judgment against the tracts or real property for an amount that is not less than the amount set under subdivision (3), and for an order to sell the tracts or real property at public auction to the highest bidder, subject to the right of redemption; and
(ii) indicating the date when the period of redemption specified in IC 6-1.1-25-4 will expire.
(B) A statement that any defense to the application for judgment must be:
(i) filed with the court; and
(ii) served on the county auditor and the county treasurer;
before the date designated as the earliest date on which the application for judgment may be filed.
(C) A statement that the county auditor and the county treasurer are entitled to receive all pleadings, motions, petitions, and other filings related to the defense to the application for judgment.
(D) A statement that the court will set a date for a hearing at least seven (7) days before the advertised date and that the court will determine any defenses to the application for judgment at the hearing.
(9) A statement that the sale will be conducted at a place designated in the notice and that the sale will continue until all tracts and real property have been offered for sale.
(10) A statement that the sale will take place at the times and dates designated in the notice. Whenever the public auction is to be conducted as an electronic sale, the notice must include a statement indicating that the public auction will be conducted as an electronic sale and a description of the procedures that must be followed to participate in the electronic sale.
(11) A statement that a person redeeming each tract or item after the sale must pay the costs described in IC 6-1.1-25-2(e).
(12) If a county auditor and county treasurer have entered into an agreement under IC 6-1.1-25-4.7, a statement that the county auditor will perform the duties of the notification and title search under IC 6-1.1-25-4.5 and the notification and petition to the court for the tax deed under IC 6-1.1-25-4.6.
(13) A statement that, if the tract or item of real property is sold for an amount more than the minimum bid and the property is not redeemed, the owner of record of the tract or item of real property who is divested of ownership at the time the tax deed is issued may have a right to the tax sale surplus.
(14) If a determination has been made under subsection (d), a statement that tracts or items will be sold together.
(15) With respect to a tract or an item of real property that is subject to sale under this chapter after June 30, 2012, and before July 1, 2013, a statement declaring whether an ordinance adopted under IC 6-1.1-37-10.1 is in effect in the county and, if applicable, an explanation of the circumstances in which penalties on the delinquent taxes and special assessments will be waived.
(b) If within sixty (60) days before the date of the tax sale the county incurs costs set under subsection (a)(3)(D) and those costs are not paid, the county auditor shall enter the amount of costs that remain unpaid upon the tax duplicate of the property for which the costs were set. The county treasurer shall mail notice of unpaid costs entered upon a tax duplicate under this subsection to the owner of the property identified in the tax duplicate.
(c) The amount of unpaid costs entered upon a tax duplicate under subsection (b) must be paid no later than the date upon which the next installment of real estate taxes for the property is due. Unpaid costs entered upon a tax duplicate under subsection (b) are a lien against the property described in the tax duplicate, and amounts remaining unpaid on the date the next installment of real estate taxes is due may be collected in the same manner that delinquent property taxes are collected.
(d) The county auditor and county treasurer may establish the condition that a tract or item will be sold and may be redeemed under this chapter only if the tract or item is sold or redeemed together with one (1) or more other tracts or items. Property may be sold together only if the tract or item is owned by the same person.
1(a)(2) 1(b)(2) or 1.5(d) 1.5(c) of this chapter, the notice must also
contain a statement that:
(1) the property is on the alternate list prepared under section
1(a)(2) 1(b)(2) or 1.5(d) 1.5(c) of this chapter;
(2) if the property is not redeemed within one hundred twenty
(120) days after the date of sale, the county auditor shall execute
and deliver a deed for the property to the purchaser or purchaser's
assignee; and
(3) if the property is offered for sale and a bid is not received for
at least the amount required under section 5 of this chapter, the
county auditor may execute and deliver a deed for the property to
the county executive, subject to IC 6-1.1-25.
(1) the owner of record of real property with a single owner; or
(2) at least one (1) of the owners, as of the date of certification, of real property with multiple owners;
at the last address of the owner for the property as indicated in the records of the county auditor on the date that the tax sale list is certified. In addition, the county auditor shall mail a duplicate notice to the owner of record, as described in subdivisions (1) and (2), by first class mail to the owners from whom the certified mail return receipt was not signed and returned. Additionally, the county auditor may determine that mailing a first class notice to or serving a notice on the property is a reasonable step to notify the owner, if the address of the owner is not the same address as the physical location of the property. If both notices are returned due to incorrect or insufficient addresses, the county auditor shall research the county auditor records to determine a more complete or accurate address. If a more complete or accurate address is found, the county auditor shall resend the notices to the address that is found in accordance with this section. Failure to obtain a more complete or accurate address does not invalidate an otherwise valid sale. The county auditor shall prepare the notice in the form prescribed by the state board of accounts. The notice must set forth the key number, if any, of the real property and a street address, if any, or other common description of the property other than a legal description. The notice must include the statement set forth in section
2(a)(4) of this chapter. With respect to a tract or an item of real
property that is subject to sale under this chapter after June 30, 2012,
and before July 1, 2013, the notice must include a statement declaring
whether an ordinance adopted under IC 6-1.1-37-10.1 is in effect in the
county and, if applicable, an explanation of the circumstances in which
penalties on the delinquent taxes and special assessments will be
waived. The county auditor must present proof of this mailing to the
court along with the application for judgment and order for sale.
Failure by an owner to receive or accept the notice required by this
section does not affect the validity of the judgment and order. The
owner of real property shall notify the county auditor of the owner's
correct address. The notice required under this section is considered
sufficient if the notice is mailed to the address or addresses required by
this section.
(b) In addition to the notice required under subsection (a) for real
property on the list prepared under section 1(a)(2) 1(b)(2) or 1.5(d)
1.5(c) of this chapter, the county auditor shall prepare and mail the
notice required under section 2.2 of this chapter no later than forty-five
(45) days after the county auditor receives the certified list from the
county treasurer under section 1(a) of this chapter.
(c) On or before the day of sale, the county auditor shall list, on the
tax sale record required by IC 6-1.1-25-8, all properties that will be
offered for sale.
(b) The sale must:
(1) be held at the times and place stated in the notice of sale; and
(2) not extend beyond one hundred seventy-one (171) days after the list containing the tract or item of real property is certified to the county auditor.
(c) A tract or an item of real property may not be sold under this chapter to collect:
(1) delinquent personal property taxes; or
(2) taxes or special assessments which are chargeable to other real property.
(d) A tract or an item of real property may not be sold under this chapter if all the delinquent taxes, penalties, and special assessments on the tract or an item of real property and the amount prescribed by section 2(a)(3)(D) of this chapter, reflecting the costs incurred by the
county due to the sale, are paid before the time of sale.
(e) The county treasurer shall sell the tract or item of real property,
subject to the right of redemption, to the highest bidder at public
auction whose bid is at least the minimum bid specified in subsection
(f) or (g), as applicable.
(f) Except as provided in subsection (g), a tract or an item of real
property may not be sold for an amount which is less than the sum of:
(1) the delinquent taxes and special assessments on each tract or
item of real property;
(2) the taxes and special assessments on each tract or item of real
property that are due and payable in the year of the sale,
regardless of whether the taxes and special assessments are
delinquent;
(3) all penalties which are due on the delinquencies;
(4) the amount prescribed by section 2(a)(3)(D) of this chapter
reflecting the costs incurred by the county due to the sale;
(5) any unpaid costs which are due under section 2(b) of this
chapter from a prior tax sale; and
(6) other reasonable expenses of collection, including title search
expenses, uniform commercial code expenses, and reasonable
attorney's fees incurred by the date of the sale.
The amount of penalties due on the delinquencies under subdivision (3)
must be adjusted in accordance with IC 6-1.1-37-10.1, if applicable.
(g) If an ordinance adopted under section 15(a) of this chapter is in
effect in the county in which a tract or an item of real property is
located, the tract or item of real property may not be sold for an amount
that is less than the lesser of:
(1) the amount determined under subsection (f); or
(2) seventy-five percent (75%) of the gross assessed value of the
tract or item of real property, as determined on the most recent
assessment date.
(h) For purposes of the sale, it is not necessary for the county
treasurer to first attempt to collect the real property taxes or special
assessments out of the personal property of the owner of the tract or
real property.
(i) The county auditor shall serve as the clerk of the sale.
(j) Real property certified to the county auditor under section 1(a)(2)
1(b)(2) of this chapter must be offered for sale in a different phase of
the tax sale or on a different day of the tax sale than the phase or day
during which other real property is offered for sale.
(k) The public auction required under subsection (e) may be
conducted by electronic means, at the option of the county treasurer.
The electronic sale must comply with the other statutory requirements
of this section. If an electronic sale is conducted under this subsection,
the county treasurer shall provide access to the electronic sale by
providing computer terminals open to the public at a designated
location. A county treasurer who elects to conduct an electronic sale
may receive electronic payments and establish rules necessary to
secure the payments in a timely fashion. The county treasurer may not
add an additional cost of sale charge to a parcel for the purpose of
conducting the electronic sale.
(1) a description of real property that corresponds to the description used on the notice of sale;
(2) the name of:
(A) the owner of record at the time of the sale of real property with a single owner; or
(B) at least one (1) of the owners of real property with multiple owners;
(3) the mailing address of the owner of the real property sold as indicated in the records of the county auditor;
(4) the name of the purchaser;
(5) the date of sale;
(6) the amount for which the real property was sold;
(7) the amount of the minimum bid for which the tract or real property was offered at the time of sale as required by section 5 of this chapter;
(8) the date when the period of redemption specified in IC 6-1.1-25-4 will expire;
(9) the court cause number under which judgment was obtained; and
(10) the street address, if any, or common description of the real property.
(b) When a certificate of sale is issued under this section, the purchaser acquires a lien against the real property for the entire amount paid. The lien of the purchaser is superior to all liens against the real
property which exist at the time the certificate is issued.
(c) A certificate of sale is assignable. However, an assignment is not
valid unless it is endorsed on the certificate of sale, acknowledged
before an officer authorized to take acknowledgments of deeds, and
registered in the office of the county auditor. When a certificate of sale
is assigned, the assignee acquires the same rights and obligations that
the original purchaser acquired.
(d) Subject to subsection (e) and IC 36-1-11-8, the county
executive may assign a certificate of sale held in the name of the
county executive to any political subdivision during the life of the
certificate. If an assignment is made under this subsection, the period
of redemption of the real property under IC 6-1.1-25 is one hundred
twenty (120) days after the date of the assignment.
(e) If the county executive wishes make an assignment to a land
bank under subsection (d), the county executive must first offer the
certificate of sale to the land bank in whose territory the tract or
item of real property is located, if any.
(1) the sum of the amounts prescribed in subsections (b) through (f); or
(2) the amount prescribed in subsection (g);
reduced by any amounts held in the name of the taxpayer or the purchaser in the tax sale surplus fund.
(b) Except as provided in subsection (g), the total amount required for redemption includes:
(1) one hundred ten percent (110%) of the minimum bid for which the tract or real property was offered at the time of sale, as required by IC 6-1.1-24-5, if:
(A) the certificate of sale for the tract or item of real property was originally issued before July 1, 2013; and
(B) the tract or item of real property is redeemed not more than six (6) months after the date of sale;
(2) one hundred fifteen percent (115%) of the minimum bid for which the tract or real property was offered at the time of sale, as required by IC 6-1.1-24-5, if:
(A) the certificate of sale for the tract or item of real property was originally issued before July 1, 2013; and
(B) the tract or item of real property is redeemed more than six (6) months but not more than one (1) year after the date of
sale; or
(3) if the certificate of sale for the tract or item of real
property was originally issued after June 30, 2013, the
amount of the minimum bid for which the tract or real
property was offered at the time of sale plus:
(A) one and five-tenths percent (1.5%) per month on the
amount of the minimum bid for which the tract or item of
real property was offered at the time of sale, if the tract or
item real property is not certified as vacant or abandoned
property under IC 6-1.1-24-1(b)(2); or
(B) five percent (5%) per month on the amount of the
minimum bid for which the tract or item of real property
was offered at the time of sale, if the tract or item of real
property is certified as vacant or abandoned property
under IC 6-1.1-24-1(b)(2).
(c) Except as provided in subsection (g), in addition to the amount
required under subsection (b), the total amount required for redemption
includes the amount by which the purchase price exceeds the minimum
bid on the real property plus:
(1) if the certificate of sale for the tract or item of real
property was originally issued before July 1, 2013, ten percent
(10%) per annum on the amount by which the purchase price
exceeds the minimum bid on the property; or
(2) if the certificate of sale for the tract or item of real
property was originally issued after June 30, 2013:
(A) one and five-tenths percent (1.5%) per month on the
amount by which the purchase price exceeds the minimum
bid on the property, if the tract or item real property is not
certified as vacant or abandoned property under
IC 6-1.1-24-1(b)(2); or
(B) five percent (5%) per month on the amount by which
the purchase price exceeds the minimum bid on the
property, if the tract or item real property is certified as
vacant or abandoned property under IC 6-1.1-24-1(b)(2).
(d) Except as provided in subsection (g), in addition to the amount
required under subsections (b) and (c), the total amount required for
redemption includes all taxes and special assessments upon the
property paid by the purchaser after the sale plus:
(1) if the certificate of sale for the tract or item of real
property was originally issued before July 1, 2013, ten percent
(10%) interest per annum on those taxes and special assessments;
or
(2) if the certificate of sale for the tract or item of real property was originally issued after June 30, 2013:
(A) one and five-tenths percent (1.5%) per month on those taxes and special assessments, if the tract or item real property is not certified as vacant or abandoned property under IC 6-1.1-24-1(b)(2); or
(B) five percent (5%) per month on those taxes and special assessments, if the tract or item real property is certified as vacant or abandoned property under IC 6-1.1-24-1(b)(2).
(e) Except as provided in subsection (g), in addition to the amounts required under subsections (b), (c), and (d), the total amount required for redemption includes the following costs, if certified before redemption and not earlier than thirty (30) days after the date of sale of the property being redeemed by the payor to the county auditor on a form prescribed by the state board of accounts, that were incurred and paid by the purchaser, the purchaser's assignee, or the county, before redemption:
(1) The attorney's fees and costs of giving notice under section 4.5 of this chapter.
(2) The costs of a title search or of examining and updating the abstract of title for the tract or item of real property.
(f) The total amount required for redemption includes, in addition to the amounts required under subsections (b) and (e), all taxes, special assessments, interest, penalties, and fees on the property that accrued after the sale.
(g) With respect to a tract or item of real property redeemed under section 4(c) of this chapter, instead of the amounts stated in subsections (b) through (f), the total amount required for redemption is the amount determined under IC 6-1.1-24-6.1(b)(4).
(1) one (1) year after the date of sale;
(2) one hundred twenty (120) days after the date of sale to a purchasing agency qualified under IC 36-7-17; or
(3) one hundred twenty (120) days after the date of sale of real property on the list prepared under
(b) Subject to subsection (l) and IC 6-1.1-24-9(d), the period for redemption of real property:
(1) on which the county executive acquires a lien under IC 6-1.1-24-6; and
(2) for which the certificate of sale is not sold under IC 6-1.1-24-6.1;
is one hundred twenty (120) days after the date the county executive acquires the lien under IC 6-1.1-24-6.
(c) The period for redemption of real property:
(1) on which the county executive acquires a lien under IC 6-1.1-24-6; and
(2) for which the certificate of sale is sold under IC 6-1.1-24;
is one hundred twenty (120) days after the date of sale of the certificate of sale under IC 6-1.1-24.
(d) When a deed for real property is executed under this chapter, the county auditor shall cancel the certificate of sale and file the canceled certificate in the office of the county auditor. If real property that appears on the list prepared under IC 6-1.1-24-1.5 is offered for sale and an amount that is at least equal to the minimum sale price required under IC 6-1.1-24-5 is not received, the county auditor shall issue a deed to the real property, subject to this chapter.
(e) When a deed is issued under this chapter to a county executive
(f) A tax deed executed under this chapter vests in the grantee an estate in fee simple absolute, free and clear of all liens and encumbrances created or suffered before or after the tax sale except those liens granted priority under federal law and the lien of the state or a political subdivision for taxes and special assessments which accrue subsequent to the sale and which are not removed under subsection (e). However, subject to subsection (g), the estate is subject to:
(1) all easements, covenants, declarations, and other deed restrictions shown by public records;
(2) laws, ordinances, and regulations concerning governmental police powers, including zoning, building, land use, improvements on the land, land division, and environmental protection; and
(3) liens and encumbrances created or suffered by the grantee.
(g) A tax deed executed under this chapter for real property sold in a tax sale:
(1) does not operate to extinguish an easement recorded before the date of the tax sale in the office of the recorder of the county in which the real property is located, regardless of whether the easement was taxed under this article separately from the real property; and
(2) conveys title subject to all easements recorded before the date of the tax sale in the office of the recorder of the county in which the real property is located.
(h) A tax deed executed under this chapter is prima facie evidence of:
(1) the regularity of the sale of the real property described in the deed;
(2) the regularity of all proper proceedings; and
(3) valid title in fee simple in the grantee of the deed.
(i) A county auditor is not required to execute a deed to the county executive under this chapter if the county executive determines that the property involved contains hazardous waste or another environmental hazard for which the cost of abatement or alleviation will exceed the fair market value of the property. The county executive may enter the property to conduct environmental investigations.
(j) If the county executive makes the determination under subsection (i) as to any interest in an oil or gas lease or separate mineral rights, the county treasurer shall certify all delinquent taxes, interest, penalties, and costs assessed under IC 6-1.1-24 to the clerk, following the procedures in IC 6-1.1-23-9. After the date of the county treasurer's certification, the certified amount is subject to collection as delinquent personal property taxes under IC 6-1.1-23. Notwithstanding IC 6-1.1-4-12.4 and IC 6-1.1-4-12.6, the assessed value of such an interest shall be zero (0) until production commences.
(k) When a deed is issued to a purchaser of a certificate of sale sold under IC 6-1.1-24-6.1, the county auditor shall, in the same manner that taxes are removed by certificate of error, remove from the tax duplicate the taxes, special assessments, interest, penalties, and costs remaining due as the difference between the amount of the last minimum bid under IC 6-1.1-24-5 and the amount paid for the certificate of sale.
(l) If a tract or item of real property did not sell at a tax sale and the county treasurer and the owner of real property agree before the expiration of the period for redemption under subsection (b) to a mutually satisfactory arrangement for the payment of the entire amount required for redemption under section 2 of this chapter before the
expiration of a period for redemption extended under this subsection:
(1) the county treasurer may extend the period for redemption;
and
(2) except as provided in subsection (m), the extended period for
redemption expires one (1) year after the date of the agreement.
(m) If the owner of real property fails to meet the terms of an
agreement entered into with the county treasurer under subsection (l),
the county treasurer may terminate the agreement after providing thirty
(30) days written notice to the owner. If the county treasurer gives
notice under this subsection, the extended period for redemption
established under subsection (l) expires thirty (30) days after the date
of the notice.
(1) the purchaser, the purchaser's assignee, the county executive, or the purchaser of the certificate of sale under IC 6-1.1-24 may; or
(2) in a county where the county auditor and county treasurer have an agreement under section 4.7 of this chapter, the county auditor shall, upon the request of the purchaser or the purchaser's assignee;
file a verified petition in the same court and under the same cause number in which the judgment of sale was entered asking the court to direct the county auditor to issue a tax deed if the real property is not redeemed from the sale. Notice of the filing of this petition shall be given to the same parties and in the same manner as provided in section 4.5 of this chapter, except that, if notice is given by publication, only one (1) publication is required. The notice required by this section is considered sufficient if the notice is sent to the address required by section 4.5(d) of this chapter. Any person owning or having an interest in the tract or real property may file a written objection to the petition with the court not later than thirty (30) days after the date the petition was filed. If a written objection is timely filed, the court shall conduct a hearing on the objection.
(b) Not later than sixty-one (61) days after the petition is filed under subsection (a), the court shall enter an order directing the county
auditor (on the production of the certificate of sale and a copy of the
order) to issue to the petitioner a tax deed if the court finds that the
following conditions exist:
(1) The time of redemption has expired.
(2) The tract or item of real property has not been redeemed from
the sale before the expiration of the period of redemption
specified in section 4 of this chapter.
(3) Except with respect to a petition for the issuance of a tax deed
under a sale of the certificate of sale on the property under
IC 6-1.1-24-6.1, all taxes and special assessments, penalties, and
costs have been paid.
(4) The notices required by this section and section 4.5 of this
chapter have been given.
(5) The petitioner has complied with all the provisions of law
entitling the petitioner to a deed.
The county auditor shall execute deeds issued under this subsection in
the name of the state under the county auditor's name. If a certificate of
sale is lost before the execution of a deed, the county auditor shall issue
a replacement certificate if the county auditor is satisfied that the
original certificate existed.
(c) Upon application by the grantee of a valid tax deed in the same
court and under the same cause number in which the judgment of sale
was entered, the court shall enter an order to place the grantee of a
valid tax deed in possession of the real estate. The court may enter any
orders and grant any relief that is necessary or desirable to place or
maintain the grantee of a valid tax deed in possession of the real estate.
(d) Except as provided in subsections (e) and (f), if:
(1) the verified petition referred to in subsection (a) is timely
filed; and
(2) the court refuses to enter an order directing the county auditor
to execute and deliver the tax deed because of the failure of the
petitioner under subsection (a) to fulfill the notice requirement of
subsection (a);
the court shall order the return of the amount, if any, by which the
purchase price exceeds the minimum bid on the property under
IC 6-1.1-24-5 minus a penalty of twenty-five percent (25%) of that
excess. The petitioner is prohibited from participating in any manner
in the next succeeding tax sale in the county under IC 6-1.1-24. The
county auditor shall deposit penalties paid under this subsection in the
county general fund.
(e) Notwithstanding subsection (d), in all cases in which:
(1) the verified petition referred to in subsection (a) is timely
filed;
(2) the petitioner under subsection (a) has made a bona fide
attempt to comply with the statutory requirements under
subsection (b) for the issuance of the tax deed but has failed to
comply with these requirements;
(3) the court refuses to enter an order directing the county auditor
to execute and deliver the tax deed because of the failure to
comply with these requirements; and
(4) the purchaser, the purchaser's successors or assignees, or the
purchaser of the certificate of sale under IC 6-1.1-24 files a claim
with the county auditor for refund not later than thirty (30) days
after the entry of the order of the court refusing to direct the
county auditor to execute and deliver the tax deed;
the county auditor shall not execute the deed but shall refund the
purchase money minus a penalty of twenty-five percent (25%) of the
purchase money from the county treasury to the purchaser, the
purchaser's successors or assignees, or the purchaser of the certificate
of sale under IC 6-1.1-24. The county auditor shall deposit penalties
paid under this subsection in the county general fund. All the
delinquent taxes and special assessments shall then be reinstated and
recharged to the tax duplicate and collected in the same manner as if
the property had not been offered for sale. The tract or item of real
property, if it is then eligible for sale under IC 6-1.1-24, shall be placed
on the delinquent list as an initial offering under IC 6-1.1-24.
(f) Notwithstanding subsections (d) and (e), the court shall not order
the return of the purchase price or any part of the purchase price if:
(1) the purchaser or the purchaser of the certificate of sale under
IC 6-1.1-24 has failed to provide notice or has provided
insufficient notice as required by section 4.5 of this chapter; and
(2) the sale is otherwise valid.
(g) A tax deed executed under this section vests in the grantee an
estate in fee simple absolute, free and clear of all liens and
encumbrances created or suffered before or after the tax sale except
those liens granted priority under federal law, and the lien of the state
or a political subdivision for taxes and special assessments that accrue
subsequent to the sale. However, the estate is subject to all easements,
covenants, declarations, and other deed restrictions and laws governing
land use, including all zoning restrictions and liens and encumbrances
created or suffered by the purchaser at the tax sale. The deed is prima
facie evidence of:
(1) the regularity of the sale of the real property described in the
deed;
(2) the regularity of all proper proceedings; and
(3) valid title in fee simple in the grantee of the deed.
(h) A tax deed issued under this section is incontestable except by appeal from the order of the court directing the county auditor to issue the tax deed filed not later than sixty (60) days after the date of the court's order.
(1) First, to the cost of the sale or offering for sale of the real property, including the cost of:
(A) maintenance;
(B) preservation;
(C) administration of the property before the sale or offering for sale of the property;
(D) unpaid costs of the sale or offering for sale of the property;
(E) preparation of the property for sale;
(F) advertising; and
(G) appraisal.
(2) Second, to any unrecovered cost of the sale or offering for sale of other real property in the same taxing district acquired by the county under IC 6-1.1-24 and this chapter, including the cost of:
(A) maintenance;
(B) preservation;
(C) administration of the property before the sale or offering for sale of the property;
(D) unpaid costs of the sale or offering for sale of the property;
(E) preparation of the property for sale;
(F) advertising; and
(G) appraisal.
(3) Third, to the payment of the taxes on the real property that were removed from the tax duplicate under section 4(c) of this chapter.
(4) Fourth, any surplus remaining into the county general fund.
(b) The county auditor shall file a report with the board of commissioners before January 31 of each year. The report must:
(1) list the real property acquired under IC 6-1.1-24 and this chapter; and
(2) indicate if any person resides or conducts a business on the
property.
(c) The county auditor shall mail a notice by certified mail before
March 31 of each year to each person listed in subsection (b)(2). The
notice must state that the county has acquired title to the tract the
person occupies.
(d) If the county executive determines that any real property
acquired under this section should be retained by the county, then the
county executive shall not dispose of the real property. The county
executive may repair, maintain, equip, alter, and construct buildings
upon the real property so retained in the same manner prescribed for
other county buildings.
(e) The county executive may transfer title to real property
described in subsection (a) to the redevelopment commission a land
bank at no cost to the commission for sale, grant, or other disposition
under IC 36-7-14-22.2, IC 36-7-14-22.5, IC 36-7-15.1-15.1,
IC 36-7-15.1-15.2, or IC 36-7-15.1-15.5. land bank.
(f) If the real property is located in a geographic area that is not
served by a redevelopment commission land bank and the county
executive determines that any real property acquired under this section
should be held for later sale or transfer by the county executive, the
county executive shall wait until an appropriate time to dispose of the
real property. The county executive may do the following:
(1) Examine, classify, manage, protect, insure, and maintain the
property being held.
(2) Eliminate deficiencies (including environmental deficiencies),
carry out repairs, remove structures, make improvements, and
control the use of the property.
(3) Lease the property while it is being held.
The county executive may enter into contracts to carry out part or all of
the functions described in subdivisions (1) through (3).
(1) the period is:
(A) twelve (12) months in a proceeding for the foreclosure of a mortgage executed before January 1, 1958; and
(B) six (6) months in a proceeding for the foreclosure of a mortgage executed after December 31, 1957, but before July 1, 1975; and
(2) if the court finds under IC 32-30-10.6 or IC 32-30-10.7 that the mortgaged real estate has been abandoned, a judgment or decree of sale may be executed on the date the judgment of foreclosure or decree of sale is entered, regardless of the date the mortgage is executed.
(b) A judgment and decree in a proceeding to foreclose a mortgage that is entered by a court having jurisdiction may be filed with the clerk in any county as provided in IC 33-32-3-2. After the period set forth in subsection (a) expires, a person who may enforce the judgment and decree may file a praecipe with the clerk in any county where the judgment and decree is filed, and the clerk shall promptly issue and certify to the sheriff of that county a copy of the judgment and decree under the seal of the court. However, if:
(1) a praecipe is not filed with the clerk within
(A) the period specified in subsection (a) expires; or
(B) the judgment and decree is filed; and
(2) the sale is not:
(A) otherwise prohibited by law;
(B) subject to a voluntary statewide foreclosure moratorium; or
(C) subject to a written agreement that:
(i) provides for a delay in the sale of the mortgaged real estate; and
(ii) is executed by and between the owner of the mortgaged real estate and a party entitled to enforce the judgment and decree;
an enforcement authority that has issued an abatement order under IC 36-7-36-9 with respect to the mortgaged real estate may file a praecipe with the clerk in any county where the judgment and decree is filed. If an enforcement authority files a praecipe under this subsection, the clerk of the county in which the praecipe is filed shall promptly issue and certify to the sheriff of that county a copy of the judgment and decree under the seal of the court.
(c) Upon receiving a certified judgment under subsection (b), the sheriff shall, subject to section 4 of this chapter, sell the mortgaged premises or as much of the mortgaged premises as necessary to satisfy the judgment, interest, and costs at public auction at the office of the sheriff or at another location that is reasonably likely to attract higher competitive bids. The sheriff shall schedule the date and time of the sheriff's sale for:
(1) a date not later than one hundred twenty (120) days after the
date on which the judgment and decree under seal of the court are
certified to the sheriff by the clerk; and
(2) a time certain between the hours of 10 a.m. and 4 p.m. on any
day of the week except Sunday.
(d) Before selling mortgaged property, the sheriff must advertise the
sale by publication once each week for three (3) successive weeks in
a daily or weekly newspaper of general circulation. The sheriff shall
publish the advertisement in at least one (1) newspaper published and
circulated in each county where the real estate is situated. The first
publication shall be made at least thirty (30) days before the date of
sale. At the time of placing the first advertisement by publication, the
sheriff shall also serve a copy of the written or printed notice of sale
upon each owner of the real estate. Service of the written notice shall
be made as provided in the Indiana Rules of Trial Procedure governing
service of process upon a person. The sheriff shall charge a fee of ten
dollars ($10) to one (1) owner and three dollars ($3) to each additional
owner for service of written notice under this subsection. The fee is:
(1) a cost of the proceeding;
(2) to be collected as other costs of the proceeding are collected;
and
(3) to be deposited in the county general fund for appropriation
for operating expenses of the sheriff's department.
(e) The sheriff also shall post written or printed notices of the sale
at the door of the courthouse of each county in which the real estate is
located.
(f) If the sheriff is unable to procure the publication of a notice
within the county, the sheriff may dispense with publication. The
sheriff shall state that the sheriff was not able to procure the
publication and explain the reason why publication was not possible.
(g) Notices under subsections (d) and (e) must contain a statement,
for informational purposes only, of the location of each property by
street address, if any, or other common description of the property other
than legal description. A misstatement in the informational statement
under this subsection does not invalidate an otherwise valid sale.
(h) The sheriff may charge an administrative fee of not more than
two hundred dollars ($200) with respect to a proceeding referred to in
subsection (b) for actual costs directly attributable to the administration
of the sale under subsection (c). The fee is:
(1) payable by the person seeking to enforce the judgment and
decree; and
(2) due at the time of filing of the praecipe;
under subsection (b).
(1) Inform the debtor that:
(A) the debtor is in default;
(B) the debtor is encouraged to obtain assistance from a mortgage foreclosure counselor; and
(C) if the creditor proceeds to file a foreclosure action and obtains a foreclosure judgment, the debtor has a right to do the following before a sheriff's sale is conducted:
(i) Appeal a finding of abandonment by a court under IC 32-30-10.6 or IC 32-30-10.7.
(ii) Redeem the real estate from the judgment under IC 32-29-7-7.
(iii) Retain possession of the property under IC 32-29-7-11(b), subject to the conditions set forth in IC 32-29-7-11(b).
(2) Provide the contact information for the Indiana Foreclosure Prevention Network.
(3) Include the following statement printed in at least 14 point boldface type:
"NOTICE REQUIRED BY STATE LAW
Mortgage foreclosure is a complex process. People may approach you about "saving" your home. You should be careful about any such promises. There are government agencies and nonprofit organizations you may contact for helpful information about the foreclosure process. For the name and telephone number of an organization near you,
please call the Indiana Foreclosure Prevention Network.".
(b) The notice required by subsection (a) shall be sent to:
(1) the address of the mortgaged property; or
(2) the last known mailing address of the debtor if the creditor's
records indicate that the mailing address of the debtor is other
than the address of the mortgaged property.
If the creditor provides evidence that the notice required by subsection
(a) was sent by certified mail, return receipt requested, and in
accordance with this subsection, it is not necessary that the debtor
accept receipt of the notice for an action to proceed as allowed under
this chapter.
(c) Except as provided in subsection (e) and section 10(g) of this
chapter, if a creditor files an action to foreclose a mortgage, the creditor
shall:
(1) in the case of a foreclosure action filed after June 30, 2009,
but before July 1, 2011, include with the complaint served on the
debtor, on a form prescribed by the authority; and
(2) subject to subsection (f), in the case of a foreclosure action
filed after June 30, 2011, include on the first page of the summons
that is served on the debtor in conjunction with the complaint;
a notice that informs the debtor of the debtor's right to participate in a
settlement conference, subject to section 9(b) of this chapter. The
notice under subdivision (1) or (2) must inform the debtor that the
debtor may schedule a settlement conference by notifying the court, not
later than thirty (30) days after the complaint is served on the debtor,
of the debtor's intent to participate in a settlement conference.
(d) If a creditor files an action to foreclose a mortgage, the creditor
shall do the following:
(1) Include with the complaint filed with the court:
(A) except as provided in subsection (e) and section 10(g) of
this chapter, a copy of the notices sent to the debtor under
subsections (a) and (c), if the foreclosure action is filed after
June 30, 2009, but before July 1, 2011; or
(B) the following, if the foreclosure action is filed after June
30, 2011:
(i) Except as provided in subsection (e) and section 10(g) of
this chapter, a copy of the notice sent to the debtor under
subsection (a).
(ii) The following most recent contact information for the
debtor that the creditor has on file: all telephone numbers
and electronic mail addresses for the debtor and any mailing
address described in subsection (b)(2). The contact
information provided under this item is confidential under
IC 5-14-3-4(a)(13).
(2) For a foreclosure action filed after June 30, 2011, at the time
the complaint is filed with the court, send:
(A) by certified mail, return receipt requested; and
(B) to the last known mailing address of the insurance
company;
a copy of the complaint filed with the court to the insurance
company of record for the property that is the subject of the
foreclosure action.
It is not necessary that the insurance company accept receipt of the
copy of the complaint for the creditor to satisfy the requirement of
subdivision (2). A creditor's failure to provide a copy of the complaint
as required by subdivision (2) does not affect the foreclosure action or
subject the creditor to any liability. Subject to section 9(b) of this
chapter, in the case of a foreclosure action filed after June 30, 2011,
upon the filing of the complaint by the creditor, the court shall send to
the debtor, by United States mail and to the address of the mortgaged
property, or to an address for the debtor provided by the creditor under
subdivision (1)(B)(ii), if applicable, a notice that informs the debtor of
the debtor's right to participate in a settlement conference. The court's
notice must inform the debtor that the debtor may schedule a settlement
conference by notifying the court of the debtor's intent to participate in
a settlement conference. The court's notice must specify a date by
which the debtor must request a settlement conference, which date
must be the date that is thirty (30) days after the date of the creditor's
service of the complaint on the debtor under subsection (c), as
determined by the court from the service list included with the
complaint filed with the court. The court may not delegate the duty to
send the notice the court is required to provide under this subsection to
the creditor or to any other person.
(e) A creditor is not required to send the notices described in this
section if:
(1) the mortgage is secured by a dwelling that is not occupied by
the debtor as the debtor's primary residence;
(2) the mortgage has been the subject of a prior foreclosure
prevention agreement under this chapter and the debtor has
defaulted with respect to the terms of that foreclosure prevention
agreement; or
(3) bankruptcy law prohibits the creditor from participating in a
settlement conference under this chapter with respect to the
mortgage.
(f) Not later than June 1, 2011, the authority, in consultation with the division of state court administration, shall prescribe language for the notice required under subsection (c)(2) to be included on the first page of the summons that is served on the debtor in a foreclosure action filed after June 30, 2011. The language must convey the same information as the form prescribed by the authority under subsection (c)(1) for foreclosure actions filed after June 30, 2009, but before July 1, 2011. The authority shall make the language prescribed under this subsection available on the authority's Internet web site. A creditor complies with subsection (c)(2) in a foreclosure action filed after June 30, 2011, if the creditor includes on the first page of the summons served on the debtor:
(1) the language that is prescribed by the authority under this subsection and made available on the authority's Internet web site; or
(2) language that conveys the same information as the language that is prescribed by the authority under this subsection and made available on the authority's Internet web site.
Chapter 10.7. Judicial Determination of Abandonment
Sec. 1. This chapter does not apply to a property with respect to which a foreclosure action has been filed under IC 32-30-10-3.
Sec. 2. As used in this chapter, "enforcement authority" refers to the enforcement authority (as defined in IC 36-7-9-2) that has jurisdiction in the location of the property that is the subject of a mortgage foreclosure action.
Sec. 3. At any time before a mortgage foreclosure action has been filed, the enforcement authority that has jurisdiction in the location of a mortgaged property may petition a court for a determination that the mortgaged property is abandoned. A petition filed with the court under this section must:
(1) include a statement of the enforcement authority's jurisdiction in the location of the mortgaged property;
(2) allege that the mortgaged property is abandoned; and
(3) include evidence that one (1) or more of the conditions set forth in section 5(a) or 5(b) of this chapter apply.
A petition under this section shall be served on the creditor, the debtor, and any other appropriate party in the manner prescribed by the Indiana Rules of Trial Procedure.
Sec. 4. (a) Upon receiving a request for a determination of
abandonment from an enforcement authority through a petition
filed with the court and served on the required parties in
accordance with section 3 of this chapter, the court shall issue an
order to show cause as to why the property should not be found to
be abandoned and directing the petitioner, the debtor, the creditor,
and any other person or party the court considers appropriate to
appear before the court on a date and time specified in the order
under subdivision (1). The court's order under this subsection must
do the following:
(1) Direct the parties subject to the order to appear before the
court on a date and time specified by the court. The date
specified under this subdivision must not be:
(A) earlier than fifteen (15) days; or
(B) later than twenty-five (25) days;
after the date of the court's order under this section.
(2) Notify the parties subject to the order that any party
ordered to appear:
(A) may present evidence or objections on the issue of
abandonment to the court:
(i) in writing before the appearance date specified by the
court under subdivision (1); or
(ii) in writing or by oral testimony on the date and at the
time specified by the court under subdivision (1);
in the manner specified by the court; and
(B) has the right to be represented by an attorney when
appearing before the court.
(3) Notify the parties subject to the order that if a party fails
to:
(A) submit written evidence or objections to the court
before the appearance date specified by the court under
subdivision (1); or
(B) appear before the court on the date and at the time
specified by the court under subdivision (1);
the failure to submit evidence or objections or to appear
before the court may result in a finding of abandonment by
the court.
(b) A party subject to an order issued by the court under this
section has the following rights, as described in the court's order
under subsection (a):
(1) The right to present evidence or objections on the issue of
abandonment to the court:
(A) in writing before the appearance date specified in the
court's order under subsection (a)(1); or
(B) in writing or by oral testimony on the date and at the
time specified in the court's order under subsection (a)(1);
in the manner specified by the court.
(2) The right to be represented by an attorney when
appearing before the court.
Sec. 5. (a) Subject to subsection (b), for purposes of an
abandonment determination under this chapter, one (1) or more of
the following constitute prima facie evidence that mortgaged
property is abandoned:
(1) The enforcement authority that has jurisdiction in the
location of the mortgaged property has issued an order under
IC 36-7-36-9 with respect to the property.
(2) Windows or entrances to the mortgaged property are
boarded up or closed off.
(3) Multiple window panes on the mortgaged property are
broken and unrepaired.
(4) One (1) or more doors to the mortgaged property are
smashed through, broken off, unhinged, or continuously
unlocked.
(5) Gas service, electric service, water service, or other utility
service to the mortgaged property has been terminated.
(6) Rubbish, trash, or debris has accumulated on the
mortgaged property.
(7) The mortgaged property is deteriorating and is either
below or in imminent danger of falling below minimum
community standards for public safety and sanitation.
(8) The creditor has changed the locks on the mortgaged
property and for at least fifteen (15) days after the changing
of the locks the owner has not requested entrance to the
mortgaged property.
(9) One (1) or more written statements, including documents
of conveyance, exist that have been executed by the debtor, or
by the debtor's personal representatives or assigns, and that
indicate a clear intent to abandon the mortgaged property.
(10) Other evidence exists indicating a clear intent to abandon
the mortgaged property.
(b) Regardless of whether any of the conditions described in
subsection (a) are found to apply, the failure to either:
(1) present evidence or objections on the issue of
abandonment to the court in writing before the appearance
date specified in the court's order under section 4(a)(1) of this
chapter; or
(2) appear before the court on the date specified in the court's
order under section 4(a)(1) of this chapter;
constitutes prima facie evidence that the mortgaged property is
abandoned.
(c) If the court finds that:
(1) one (1) or more of the conditions described in subsection
(a) apply; or
(2) the circumstances described in subsection (b) apply;
the court shall issue an order finding that the mortgaged property
is abandoned.
Sec. 6. If a court has issued an order under this chapter finding
that the mortgaged property is abandoned, the creditor shall file
an action to foreclose the mortgage not later than ninety (90) days
from the date the court issues its order.
(1) political subdivisions; and
(2) their agencies.
(b) This chapter does not apply to the following:
(1) The disposal of property under an urban homesteading program under IC 36-7-17.
(2) The lease of school buildings under IC 20-47.
(3) The sale of land to a lessor in a lease-purchase contract under IC 36-1-10.
(4) The disposal of property by a redevelopment commission established under IC 36-7.
(5) The leasing of property by a board of aviation commissioners established under IC 8-22-2 or an airport authority established under IC 8-22-3.
(6) The disposal of a municipally owned utility under IC 8-1.5.
(7) The sale or lease of property by a unit to an Indiana nonprofit corporation organized for educational, literary, scientific, religious, or charitable purposes that is exempt from federal income taxation under Section 501 of the Internal Revenue Code or the sale or reletting of that property by the nonprofit corporation.
(8) The disposal of surplus property by a hospital established and operated under IC 16-22-1 through IC 16-22-5, IC 16-22-8, IC 16-23-1, or IC 16-24-1.
(9) The sale or lease of property acquired under IC 36-7-13 for industrial development.
(10) The sale, lease, or disposal of property by a local hospital authority under IC 5-1-4.
(11) The sale or other disposition of property by a county or municipality to finance housing under IC 5-20-2.
(12) The disposition of property by a soil and water conservation district under IC 14-32.
(13) The sale, lease, or disposal of property by the health and hospital corporation established and operated under IC 16-22-8.
(14) The disposal of personal property by a library board under IC 36-12-3-5(c).
(15) The sale or disposal of property by the historic preservation commission under IC 36-7-11.1.
(16) The disposal of an interest in property by a housing authority under IC 36-7-18.
(17) The disposal of property under IC 36-9-37-26.
(18) The disposal of property used for park purposes under IC 36-10-7-8.
(19) The disposal of textbooks that will no longer be used by school corporations under IC 20-26-12.
(20) The disposal of residential structures or improvements by a municipal corporation without consideration to:
(A) a governmental entity; or
(B) a nonprofit corporation that is organized to expand the supply or sustain the existing supply of good quality, affordable housing for residents of Indiana having low or moderate incomes.
(21) The disposal of historic property without consideration to a nonprofit corporation whose charter or articles of incorporation allows the corporation to take action for the preservation of historic property. As used in this subdivision, "historic property" means property that is:
(A) listed on the National Register of Historic Places; or
(B) eligible for listing on the National Register of Historic Places, as determined by the division of historic preservation and archeology of the department of natural resources.
(22) The disposal of real property without consideration to:
(A) a governmental agency; or
(B) a nonprofit corporation that exists for the primary purpose of enhancing the environment;
when the property is to be used for compliance with a permit or
an order issued by a federal or state regulatory agency to mitigate
an adverse environmental impact.
(23) The disposal of property to a person under an agreement
between the person and a political subdivision or an agency of a
political subdivision under IC 5-23.
(24) The disposal of residential real property pursuant to a federal
aviation regulation (14 CFR 150) Airport Noise Compatibility
Planning Program as approved by the Federal Aviation
Administration.
(25) The disposal of property to or by a land bank established
under IC 36-7-37.
(1) "Local governmental agency" has the meaning set forth in section 1109(a) of this chapter.
(2) "Permit" has the meaning set forth in section 1109(b) of this chapter.
(b) A local governmental agency may not issue a permit, approval of a land use, or approval for construction of a development, a building, or another structure if:
(1) delinquent property taxes or special assessments on the real property that the permit or approval concerns remain unpaid, unless an agreement to pay the delinquent property taxes or special assessments under IC 6-1.1-24-1.2(c), IC 6-1.1-25-4(l), or any other law is in effect;
(2) costs or civil penalties imposed under IC 36-7-9 for the real property that the permit or approval concerns remain unpaid; or
(3) both subdivisions (1) and (2) apply.
(1) The urban enterprise association has incorporated as a nonprofit corporation under IC 5-28-15-14(b)(3).
(2) The parcel of property to be sold or granted is located entirely within the enterprise zone for which the urban enterprise association was created under IC 5-28-15-13.
(3) The urban enterprise association agrees to cause development on the parcel of property within a specified period that may not exceed five (5) years from the date of the sale or grant.
(4) The urban enterprise association agrees to rehabilitate or otherwise develop the property in a manner that is similar to and consistent with the use of the other properties in the enterprise zone.
(b) The commission may sell or grant, at no cost, title to real property to a community development corporation (as defined in IC 4-4-28-2) for the purpose of providing low or moderate income housing or other development that will benefit or serve low or moderate income families if the following requirements are met:
(1) The community development corporation has as a major corporate purpose and function the provision of housing for low and moderate income families within the geographic area in which the parcel of real property is located.
(2) The community development corporation agrees to cause development that will serve or benefit low or moderate income families on the parcel of real property within a specified period, which may not exceed five (5) years from the date of the sale or grant.
(3) The community development corporation agrees that the community development corporation and each applicant, recipient, contractor, or subcontractor undertaking work in connection with the real property will:
(A) use lower income project area residents as trainees and as employees; and
(B) contract for work with business concerns located in the project area or owned in substantial part by persons residing in the project area;
to the greatest extent feasible, as determined under the standards specified in 24 CFR 135.
(4) The community development corporation agrees to rehabilitate or otherwise develop the property in a manner that is similar to and consistent with the use of the other properties in the area served by the community development corporation.
commission has obtained the parcel in the manner described in
subsection (c), from the county under IC 6-1.1-25-9(e) before July
1, 2013, an appraisal is not required. An appraisal under this subsection
is solely for the information of the commission and is not available for
public inspection.
(e) (d) The commission must decide at a public meeting whether the
commission will sell or grant the parcel of real property. In making this
decision, the commission shall give substantial weight to the extent to
which and the terms under which the urban enterprise association or
community development corporation will cause development on the
property.
(f) (e) Before conducting a meeting under subsection (g), (f), the
commission shall publish a notice in accordance with IC 5-3-1
indicating that at a designated time the commission will consider
selling or granting the parcel of real property under this section. The
notice must state the general location of the property, including the
street address, if any, or a common description of the property other
than the legal description.
(g) (f) If the county agrees to transfer a parcel of real property to the
commission to be sold or granted under this section, the commission
may conduct a meeting to sell or grant the parcel to an urban enterprise
zone or to a community development corporation even though the
parcel has not yet been transferred to the commission. After the
hearing, the commission may adopt a resolution directing the
department to take appropriate steps necessary to acquire the parcel
from the county and to transfer the parcel to the urban enterprise
association or to the community development corporation.
(h) (g) A conveyance of property under this section shall be made
in accordance with section 22(i) of this chapter.
(i) (h) An urban enterprise association that purchases or receives
real property under this section shall report the terms of the conveyance
to the board of the Indiana economic development corporation not later
than thirty (30) days after the date the conveyance of the property is
made.
(1) Real property:
(A) that was acquired by the commission to carry out a redevelopment project, an economic development area project, or an urban renewal project; and
(B) relative to which the commission has, at a public hearing,
decided that the real property is not needed to complete the
redevelopment activity, an economic development activity, or
urban renewal activity in the project area.
(2) Real property acquired under this chapter that is not in a
redevelopment project area, economic development area, or an
urban renewal project area.
(3) Parcels of property secured from the county under
IC 6-1.1-25-9(e) that were acquired by the county under
IC 6-1.1-24 and IC 6-1.1-25.
(4) (3) Real property donated or transferred to the commission to
be held and disposed of under this section.
However, this section does not apply to property acquired under section
32.5 of this chapter.
(b) The commission may do the following to or for real property
described in subsection (a):
(1) Examine, classify, manage, protect, insure, and maintain the
property.
(2) Eliminate deficiencies (including environmental deficiencies),
carry out repairs, remove structures, and make improvements.
(3) Control the use of the property.
(4) Lease the property.
(5) Use any powers under section 12.2 of this chapter in relation
to the property.
(c) The commission may enter into contracts to carry out part or all
of the functions described in subsection (b).
(d) The commission may extinguish all delinquent taxes, special
assessments, and penalties relative to real property donated to the
commission to be held and disposed of under this section. The
commission shall provide the county auditor with a list of the real
property on which delinquent taxes, special assessments, and penalties
are extinguished under this subsection.
(e) Real property described in subsection (a) may be sold,
exchanged, transferred, granted, donated, or otherwise disposed of in
any of the following ways:
(1) In accordance with section 22, 22.2, 22.6, or 22.7 of this
chapter.
(2) In accordance with the provisions authorizing an urban
homesteading program under IC 36-7-17.
(f) In disposing of real property under subsection (e), the
commission may:
(1) group together properties for disposition in a manner that will
best serve the interest of the community, from the standpoint of
both human and economic welfare; and
(2) group together nearby or similar properties to facilitate
convenient disposition.
(b) The commission may sell or grant at no cost title to real property to a nonprofit corporation or neighborhood development corporation for the purpose of providing low or moderate income housing or other development that will benefit or serve low or moderate income families if the following requirements are met:
(1) The nonprofit corporation or neighborhood development corporation has, as a major corporate purpose and function, the provision of housing for low and moderate income families within the geographic area in which the parcel of property is located.
(2) The qualifying corporation agrees to cause development that will serve or benefit low or moderate income families on the parcel of property within a specified period, which may not exceed five (5) years from the date of the sale or grant.
(3) The qualifying corporation, if the qualifying corporation is a neighborhood development corporation, agrees that the qualifying corporation and each applicant, recipient, contractor, or subcontractor undertaking work in connection with the real property will:
(A) use lower income project area residents as trainees and as employees; and
(B) contract for work with business concerns located in the project area or owned in substantial part by persons residing in the project area;
to the greatest extent feasible, as determined under the standards specified in 24 CFR 135.
(4) The county fiscal body has determined that the corporation meets the criteria established under subsection
(5) The qualifying corporation agrees to rehabilitate or otherwise develop the property in a manner that is similar to and consistent with the use of the other properties in the area served by the qualifying corporation.
acquired by the county under IC 6-1.1-24 and IC 6-1.1-25.
(d) (c) Before offering any parcel of property for sale or grant, the
fair market value of the parcel of property must be determined. The fair
market value may be determined by an appraisal made by a qualified
employee of the department. However, if the qualified employee of the
department determines that:
(1) the property:
(A) is less than five (5) acres in size; and
(B) has a fair market value that is less than ten thousand
dollars ($10,000); or
(2) if the commission has obtained the parcel in the manner
described in subsection (c); from the county under
IC 6-1.1-25-9(e) before July 1, 2013;
an appraisal is not required. An appraisal under this subsection is solely
for the information of the commission and is not available for public
inspection.
(e) (d) The commission must decide whether the commission will
sell or grant the parcel of real property at a public meeting. In making
this decision, the commission shall give substantial weight to the extent
to which and the terms under which the qualifying corporation will
cause development to serve or benefit families of low or moderate
income. If more than one (1) qualifying corporation is interested in
acquiring a parcel of real property, the commission shall conduct a
hearing at which a representative of each corporation may state the
reasons why the commission should sell or grant the parcel to that
corporation.
(f) (e) Before conducting a hearing under subsection (e), (d), the
commission shall publish a notice in accordance with IC 5-3-1
indicating that at a designated time the commission will consider
selling or granting the parcel of real property under this section. The
notice must state the general location of the property, including the
street address if any, or a common description of the property other
than the legal description.
(g) (f) If the county agrees to transfer a parcel of real property to the
commission to be sold or granted under this section, the commission
may conduct a hearing to sell or grant the parcel to a qualifying
corporation even though the parcel has not yet been transferred to the
commission. After the hearing, the commission may adopt a resolution
directing the department to take appropriate steps necessary to acquire
the parcel from the county and to transfer the parcel to the qualifying
corporation.
(h) (g) A conveyance of property to a qualifying corporation under
this section shall be made in accordance with section 15(i) of this
chapter.
(i) (h) The county fiscal body shall establish criteria for determining
the eligibility of nonprofit corporations and neighborhood development
corporations for sales or grants of real property under this section. A
nonprofit corporation or neighborhood development corporation may
apply to the county fiscal body for a determination concerning the
corporation's compliance with the criteria established under this
subsection.
(1) The urban enterprise association has incorporated as a nonprofit corporation under IC 5-28-15-14(b)(3).
(2) The parcel of property to be sold or granted is located entirely within the enterprise zone for which the urban enterprise association was created under IC 5-28-15-13.
(3) The urban enterprise association agrees to cause development on the parcel of property within a specified period that may not exceed five (5) years from the date of the sale or grant.
(4) The urban enterprise association agrees to rehabilitate or otherwise develop the property in a manner that is similar to and consistent with the use of the other properties in the enterprise zone.
cause development on the property.
(e) (d) Before conducting a meeting under subsection (d), (c), the
commission shall publish a notice in accordance with IC 5-3-1
indicating that at a designated time the commission will consider
selling or granting the parcel of real property under this section. The
notice must state the general location of the property, including the
street address, if any, or a common description of the property other
than the legal description.
(f) (e) If the county agrees to transfer a parcel of real property to the
commission to be sold or granted under this section, the commission
may conduct a meeting to sell or grant the parcel to an urban enterprise
zone even though the parcel has not yet been transferred to the
commission. After the hearing, the commission may adopt a resolution
directing the department to take appropriate steps necessary to acquire
the parcel from the county and to transfer the parcel to the urban
enterprise association.
(g) (f) A conveyance of property to an urban enterprise association
under this section shall be made in accordance with section 15(i) of this
chapter.
(h) (g) An urban enterprise association that purchases or receives
real property under this section shall report the terms of the conveyance
to the board of the Indiana economic development corporation not later
than thirty (30) days after the date the conveyance of the property is
made.
(1) Real property:
(A) that was acquired by the commission to carry out a redevelopment project, an economic development area project, or an urban renewal project; and
(B) relative to which the commission has, at a public hearing, decided that the real property is not needed to complete the redevelopment activity, an economic development area activity, or urban renewal activity in the project area.
(2) Real property acquired under this chapter that is not in a redevelopment project area, an economic development area, or an urban renewal project area.
be held and disposed of under this section.
However, this section does not apply to property acquired under section
22.5 of this chapter.
(b) The commission may do the following to or for real property
described in subsection (a):
(1) Examine, classify, manage, protect, insure, and maintain the
property.
(2) Eliminate deficiencies (including environmental deficiencies),
carry out repairs, remove structures, and make improvements.
(3) Control the use of the property.
(4) Lease the property.
(5) Use any powers under section 7(a) or 7(b) of this chapter in
relation to the property.
(c) The commission may enter into contracts to carry out part or all
of the functions described in subsection (b).
(d) The commission may extinguish all delinquent taxes, special
assessments, and penalties relative to real property donated to the
commission to be held and disposed of under this section. The
commission shall provide the county auditor with a list of the real
property on which delinquent taxes, special assessments, and penalties
are extinguished under this subsection.
(e) Real property described in subsection (a) may be sold,
exchanged, transferred, granted, donated, or otherwise disposed of in
any of the following ways:
(1) In accordance with section 15, 15.1, 15.2, 15.6, or 15.7 of this
chapter.
(2) In accordance with the provisions authorizing an urban
homesteading program under IC 36-7-17.
(f) In disposing of real property under subsection (e), the
commission may:
(1) group together properties for disposition in a manner that will
best serve the interest of the community, from the standpoint of
both human and economic welfare; and
(2) group together nearby or similar properties to facilitate
convenient disposition.
Chapter 37. Land Banks
Sec. 1. The following definitions apply throughout this chapter:
(1) "Distressed real property" includes real property in a neglected or unmarketable condition.
(2) "Eligible unit" means:
(A) a county;
(B) a consolidated city; or
(C) a second class city;
to which IC 36-7-9 applies.
(3) "Land bank" means an entity established by or in accordance with an ordinance adopted under section 2 of this chapter.
Sec. 2. (a) The legislative body of an eligible unit may adopt an ordinance:
(1) establishing a body corporate and politic; or
(2) directing the executive of the eligible unit to organize a nonprofit corporation under IC 23-17;
as an independent instrumentality exercising essential governmental functions. The primary purpose of an entity established under this subsection is to manage and improve the marketability of distressed real property located in the territory of the eligible unit.
(b) The legislative body shall specify the following in the ordinance:
(1) The name of the entity.
(2) The number of board members, subject to section 3 of this chapter.
(3) The appointing authorities of the board members.
(4) The terms of service of the initially appointed board members.
(5) The regular terms of service of appointed board members.
(c) The territory of a land bank established by a county is all the territory of the county except for the territory of a second class city located in the county.
Sec. 3. A land bank is governed by a board of at least five (5) and at most seven (7) individuals, appointed to serve for terms as provided by ordinance.
Sec. 4. Except as otherwise provide in this chapter, a land bank is granted all powers necessary, convenient, or appropriate to carry out and effectuate the land bank's public and corporate purposes, which includes the power to do the following:
(1) Sue or be sued in the land bank's own name.
(2) Enter into contracts, including contracts to provide services to other governmental entities.
(3) Establish accounts with financial institutions.
(4) Acquire, lease, improve, repair, renovate, and dispose of
property.
(5) Borrow money, including issue bonds.
(6) Pledge collateral.
(7) Make investments.
(8) Hire employees, including an executive director.
(9) Procure insurance.
Sec. 5. A land bank shall do the following:
(1) Maintain an inventory of real property held by the land
bank.
(2) Develop procedures and guidelines for the acquisition,
redevelopment, and disposition of property by and from the
land bank.
(3) Make the information described in subdivisions (1) and (2)
available for inspection:
(A) at the offices of the land bank during regular business
hours; and
(B) on the land bank's Internet web site.
(4) Make reasonable efforts to coordinate the land bank's
activities with any land use plans that affect real property
held by the land bank.
Sec. 6. (a) This subsection does not apply to a consolidated city.
The legislative body of an eligible unit that has adopted an
ordinance to create a land bank under section 2 of this chapter may
not rescind the ordinance that the legislative body adopted under
IC 36-7-9-3, unless the land bank is dissolved.
(b) A land bank does not have authority to exercise the power
of eminent domain.
Sec. 7. (a) Employees of a land bank are not employees of the
eligible unit that established the land bank.
(b) The board of a land bank may elect by resolution to provide
programs of group health insurance for the land bank's employees
and retired employees as provided in IC 5-10-8-2.6.
(c) The board of a land bank may elect by resolution to provide
retirement and disability benefits for employees, which may be by
means of participation in the public employees' retirement fund as
provided in IC 5-10.3-6.
Sec. 8. A land bank's income is not subject to taxation under
IC 6-3-1 through IC 6-3-7.
Sec. 9. A land bank is subject to IC 5-14-1.5 (open door law) and
IC 5-14-3 (public records law).
Sec. 10. The state board of accounts shall audit the funds and
accounts of a land bank as provided in IC 5-11-1-25.
(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) Real estate that a court has determined to be abandoned under IC 32-30-10.6 or IC 32-30-10.7.
