Bill Text: IN HB1122 | 2010 | Regular Session | Introduced
Bill Title: Abatement of vacant or abandoned structures.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Passed) 2010-03-25 - Sections 4 through 5 effective 07/01/2010 [HB1122 Detail]
Download: Indiana-2010-HB1122-Introduced.html
Citations Affected: IC 32-30-10-14; IC 36-7-9-14; IC 36-7-36.
Effective: Upon passage; July 1, 2010.
January 7, 2010, read first time and referred to Committee on Financial Institutions.
Digest Continued
initiate a sheriff's sale within 180 days after the issuance of the
abatement notice and order and subsequently cancels the sale, the
foreclosure judgment holder is liable for: (1) any civil penalties that
otherwise would have applied during the 180 day period; (2) any civil
penalties that accrue after the 180 day period; and (3) certain costs
incurred by the sheriff in preparing for the sheriff's sale before its
cancellation. Provides that civil penalties collected for structures that
remain vacant or abandoned shall be deposited in: (1) the local unsafe
building fund; or (2) another fund or account specified in the rules and
procedures adopted by the legislative body. Provides that if any civil
penalties assessed against a foreclosure judgment holder remain unpaid
after a subsequent sheriff's sale of the property, the unpaid civil
penalties shall be paid from the proceeds of the sheriff's sale. Requires
a county or municipality that, before July 1, 2010, has adopted: (1) the
statute concerning the abatement of vacant structures and abandoned
structures; and (2) rules and procedures to enforce the statute; to amend
its rules and procedures not later than August 1, 2010, to comply with
changes to the statute.
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
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A BILL FOR AN ACT to amend the Indiana Code concerning
property.
(1) Expenses of the offer and sale, including expenses incurred under IC 32-29-7-4 or section 9 of this chapter (or IC 34-1-53-6.5 or IC 32-15-6-6.5 before their repeal).
(2) The amount of any property taxes on the property sold:
(A) that are due and owing; and
(B) for which the due date has passed as of the date of the sheriff's sale.
The sheriff shall transfer the amounts collected under this subdivision to the county treasurer not more than ten (10) days after the date of the sheriff's sale.
(3) For a sale that occurs after June 30, 2010, the amount of any unpaid civil penalties against the foreclosure judgment holder under IC 36-7-36-10(g).
In all cases in which the proceeds of sale exceed the amounts described in subdivisions (1) through
(b) Money for the unsafe building fund may be received from any source, including appropriations by local, state, or federal governments, and donations. The following money shall be deposited in the fund:
(1) Money received as payment for or settlement of obligations or judgments established under sections 9 through 13 and 17 through 22 of this chapter.
(2) Money received from bonds posted under section 7 of this chapter.
(3) Money received in satisfaction of receivers' notes or certificates that were issued under section 20 of this chapter and were purchased with money from the unsafe building fund.
(4) Money received for payment or settlement of civil penalties or fines imposed under section 7 of this chapter or under IC 36-7-36-10.
(5) Money received from the collection of special assessments under section 13.5 of this chapter.
(c) Money in the unsafe building fund may be used for the expenses incurred in carrying out the purposes of this chapter or IC 36-7-36, including:
(1) the cost of obtaining reliable information about the identity and location of each person who owns a substantial property interest in unsafe premises;
(2) the cost of an examination of an unsafe building by a registered architect or registered engineer not employed by the department;
(3) the cost of surveys necessary to determine the location and dimensions of real property on which an unsafe building is located;
(4) the cost of giving notice of orders, notice of statements of rescission, notice of continued hearing, and notice of statements that public bids are to be let in the manner prescribed by section 25 of this chapter;
(5) the bid price of work by a contractor under section 10 or sections 17 through 22 of this chapter;
(6) the cost of emergency action under section 9 of this chapter;
(7) the cost of notes or receivers' certificates issued under section 20 of this chapter; and
(8) any costs incurred under IC 36-7-36 with respect to a vacant structure or an abandoned structure under IC 36-7-36.
(d) Payment of money from the unsafe building fund must be made in accordance with applicable law.
(1) may adopt this chapter by ordinance; and
(2) if the legislative body adopts this chapter by ordinance, shall adopt rules and procedures for its enforcement.
(b) This subsection applies to a legislative body that, under subsection (a) and before July 1, 2010, has adopted:
(1) an ordinance to adopt this chapter, as in effect July 1, 2009; and
(2) rules and procedures for the enforcement of this chapter, as in effect July 1, 2009.
Not later than January 1, 2011, a legislative body to which this subsection applies shall amend the rules and procedures that, before July 1, 2010, were adopted under subsection (a). The amended rules and procedures must comply with sections 9 and 10 of this chapter, both as in effect July 1, 2010. This subsection expires July 1, 2011.
(1) abate the vacant structure or abandoned structure by cleaning and securing or boarding up the vacant structure or abandoned structure and the premises upon which it is located;
(2) erect fences, barriers, berms, or other suitable means to discourage:
(A) access to the vacant structure or abandoned structure; and
(B) illegal dumping or littering on the premises upon which the vacant structure or abandoned structure exists; and
(3) perform any other action necessary to bring the vacant structure or abandoned structure into compliance with standards for building condition or maintenance required by:
(A) a statute;
(B) a rule adopted under IC 4-22-2; or
(C) an ordinance;
for human habitation, occupancy, or use.
(b) Subject to subsection (c), an abatement notice and order described in subsection (a) may be issued to a foreclosure judgment holder if the enforcement authority determines that:
(1) a judgment and decree of sale concerning the vacant structure or abandoned structure has been issued after June 30, 2010, in a mortgage foreclosure proceeding subject to IC 32-30-10.5; and
(2) the foreclosure judgment holder has not filed a praecipe with the county clerk to initiate a sheriff's sale, in accordance with the procedure set forth in IC 32-29-7-3(b), not later than one hundred eighty (180) days after the entry of the judgment
by the court.
(c) A foreclosure judgment holder, or any director, officer,
manager, employee, or agent of a foreclosure judgment holder,
that performs, or causes to be performed, any work or other action
required by an abatement notice and order issued to the
foreclosure judgment holder under subsection (b) is not liable to
any of the following upon any claim, legal or equitable, whether
arising out of contract or tort, with respect to the work or action
performed:
(1) The owner of the property.
(2) The enforcement authority.
(3) Any other person.
(1) documentation has been filed and approved by the enforcement authority that indicates the owner's or foreclosure judgment holder's intent to eliminate the vacant structure or abandoned structure status of the property;
(2)
(A) that are due and owing; and
(B) for which the due date has passed;
with respect to the property; and
(3) at least one (1) of the following applies:
(A) The structure is the subject of a valid building permit for repair or rehabilitation and the owner or foreclosure judgment holder is proceeding diligently and in good faith to complete the repair or rehabilitation of the structure as defined in the enforcement order.
(B) The structure is:
(i) maintained in compliance with this chapter and any
applicable statute, rule, or ordinance described in section
9(a)(3) of this chapter; and
(ii) actively being offered for sale, lease, or rent.
(C) The owner or foreclosure judgment holder can
demonstrate that the owner or foreclosure judgment holder
made a diligent and good faith effort to implement actions
approved by the enforcement authority.
(b) Subject to subsections (c) and (d), if the abatement notice
and order has been issued to a foreclosure judgment holder, the
foreclosure judgment holder is not liable for any civil penalty that
may be imposed under subsection (a) or (e) if the foreclosure
judgment holder files, not later than one hundred eighty (180) days
after the date of issuance of the abatement notice and order, a
praecipe with the county clerk to initiate a sheriff's sale, in
accordance with the procedure set forth in IC 32-29-7-3(b). The
foreclosure judgment holder may avoid the civil penalties for
which the foreclosure judgment would otherwise be liable by
providing, not later than one hundred eighty (180) days after the
date of issuance of the abatement notice and order, evidence to the
enforcement authority that the foreclosure judgment holder has
met either or both of the following:
(1) The exception set forth in this subsection.
(2) The conditions set forth in subsection (a).
(c) During the one hundred eighty (180) day period described in
subsection (b), the enforcement authority may not impose any civil
penalty against a foreclosure judgment holder that would
otherwise apply under subsection (a) or (e). If, after the one
hundred eighty (180) day period described in subsection (b), the
foreclosure judgment has not provided evidence to the enforcement
authority that the foreclosure judgment holder has met:
(1) the exception set forth in subsection (b);
(2) the conditions set forth in subsection (a); or
(3) both subdivisions (1) and (2);
the enforcement authority may impose any civil penalty that would
have applied under subsection (a) or (e) during the one hundred
eighty (180) day period described in subsection (b), in addition to
any civil penalties that accrue after the one hundred eighty (180)
day period described in subsection (b), subject to the annual limit
on civil penalties set forth in subsection (e).
(d) If a foreclosure judgment holder files a praecipe with the
county clerk to initiate a sheriff's sale within the time specified in
subsection (b) and subsequently cancels the sale at any time before
the date of the scheduled sale, the foreclosure judgment holder is
liable for any civil penalties that otherwise would have applied
under subsection (a) or (e) during the one hundred eighty (180) day
period described in subsection (b), in addition to any civil penalties
that accrue after the one hundred eighty (180) day period
described in subsection (b), subject to the annual limit on civil
penalties set forth in subsection (e). In addition, the foreclosure
judgment holder may be liable for any costs that:
(1) are actually incurred by the sheriff in preparing for the
sheriff's sale before its cancellation;
(2) are not covered by the administrative fee described in
IC 32-29-7-3(h); and
(3) would have been payable from the proceeds of the sale
under IC 32-30-10-14(1).
(b) (e) If the structure continues to remain a vacant structure beyond
the initial ninety (90) days described in subsection (a) and the owner
or foreclosure judgment holder does not meet any of the exceptions
set forth in this section, subsection (a) or (b), the enforcement
authority may continue to assess penalties each year on each structure
in the following amounts:
(1) One thousand dollars ($1,000) for the second ninety (90)
calendar day period each structure remains a vacant structure or
an abandoned structure.
(2) One thousand five hundred dollars ($1,500) for the third
ninety (90) calendar day period each structure remains a vacant
structure or an abandoned structure.
(3) Two thousand dollars ($2,000) for the fourth and each
subsequent ninety (90) calendar day period thereafter each
structure remains a vacant structure or an abandoned structure.
(4) Five thousand dollars ($5,000) for the fifth and each
subsequent ninety (90) calendar day period thereafter each
structure remains a vacant structure or an abandoned
structure.
A civil penalty under this subsection may not exceed five thousand
dollars ($5,000) per structure per year, as measured from the date of
the abatement notice and order issued under section 9 of this
chapter.
(f) A civil penalty collected under subsection (a) or (e) shall be
deposited in:
(1) an unsafe building fund established under IC 36-7-9-14; or
(2) any other fund or account specified in the rules and
procedures adopted by the legislative body under section 7 of
this chapter.
(g) If any civil penalties assessed against a foreclosure judgment
holder under subsection (a) or (e) remain unpaid after a
subsequent sheriff's sale of the property is conducted in connection
with the foreclosure action, the unpaid civil penalties shall be paid
from the proceeds of the sheriff's sale, as specified in
IC 32-30-10-14.
