Bill Text: OR SB929 | 2011 | Regular Session | Introduced

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Bill Title: Relating to sale of real property to enforce lien for local improvements.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB929 Detail]

Download: Oregon-2011-SB929-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3837

                         Senate Bill 929

Sponsored by Senator PROZANSKI (at the request of Scott Rohter)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Changes procedures for local government to sell land and
improvements to enforce liens or unpaid assessments for local
improvements. Establishes minimum sale price based on specified
factors. Returns amount of sale in excess of debt to debtor.

                        A BILL FOR AN ACT
Relating to sale of real property to enforce lien for local
  improvements; creating new provisions; and amending ORS
  223.505, 223.520 and 223.525.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 223.505 is amended to read:
  223.505. As used in ORS 223.505 to 223.595  { - , unless the
context requires otherwise, - }  { + :
  (1) 'Lawfully established unit of land' has the meaning given
that term in ORS 92.010.
  (2) 'Tract' has the meaning given that term in ORS 215.010.
  (3) + } 'Treasurer' means the officer designated by charter or
ordinance of the local government to collect unpaid liens or
assessments, take all steps necessary to enforce delinquent liens
or assessments and to maintain records pertaining to collection
proceedings thereon.
  SECTION 2. ORS 223.520 is amended to read:
  223.520. Upon receipt of the list described in ORS 223.515, the
treasurer shall proceed to collect the unpaid liens or final
assessments named in the list by advertising and selling the
 { - lots or tracts - }   { + lawfully established units of land
or tracts + } in the manner now provided by law for the sale of
real property on execution, except as otherwise provided in ORS
223.525 to 223.580 and except that sale may be made at
 { - such - }   { + the + } place within the boundaries of the
local government   { - as may be - }  designated in the notice of
sale.
  SECTION 3. ORS 223.525 is amended to read:
  223.525.   { - Each piece or tract of land shall be sold,
separately, and for a sum equal to but not exceeding the unpaid
lien or final assessment thereon and the interest, penalty and
cost of advertising and sale. If there is more than one bid the
land shall be sold to the bidder first offering to take it for
the amount accrued thereon. No levy upon such lots or parcels of
land shall be required except that a notice shall be posted four
consecutive weeks before the sale upon every lot or parcel. - }
   { +  (1) Each lawfully established unit of land or tract must
be sold separately and for a sum equal to the lesser of:
  (a) The market value of the land and the improvements on the
land, plus interest, penalties and the costs of conducting the
sale;
  (b) The total assessed value of the land and improvements as
determined by the assessor of the county in which the land and
improvements are located; or
  (c) The fair market value of the land and improvements as
determined by an independent real estate appraisal.
  (2) If none of the bids equal or exceed a sum described by
subsection (1) of this section or the sale is not completed for
any other reason, a second sale must be held not less than 180
days after the initial sale. At the second sale, the land and
improvements may be offered for 90 percent of the lowest sum
described in subsection (1) of this section.
  (3) If none of the bids equal or exceed the sum described by
subsection (2) of this section or the sale is not completed for
any other reason, a third sale must be held not less than one
year after the initial sale. At the third sale, the land and
improvements may be offered for 80 percent of the lowest sum
described in subsection (1) of this section.
  (4) Land and improvements may not be sold under this section
for less than 80 percent of the lowest sum described by
subsection (1) of this section.
  (5) If there is more than one bid that equals or exceeds the
minimum sum for which land and improvements may be sold at a sale
under this section, the land and improvements must be sold to the
highest bidder.
  (6) If the sum received for the sale of land and improvements
under this section exceeds the amount of the unpaid assessment,
including penalties, interest and the costs of conducting the
sale, the remainder of the sum must be returned to the debtor or
the debtor's heirs or assigns.
  (7) A levy is not required upon lawfully established units of
land on the list described in ORS 223.515, but a notice of sale
must be posted four consecutive weeks before the sale of each
lawfully established unit of land or tract. + }
  SECTION 4.  { + The amendments to ORS 223.505, 223.520 and
223.525 by sections 1 to 3 of this 2011 Act apply to the sale of
real property to enforce liens and collect unpaid assessments
that are levied on or after the effective date of this 2011
Act. + }
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