Summary of Sub SB 172 Modifying Ohio laws governing land reutilization programs and property tax foreclosures of abandoned lands

Transcription

1 (D) and generally (E) repealed (F)(2)(d) (J) (A) This amendment moves the existing recording fee exemption for instruments recorded by County Land Banks from RC section to the more appropriate RC Section (Recording Fees) and recognizes this exemption for municipal land banks and wholly owned subsidiaries of CLRCs. Extends the existing conveyance fee exemption for CLRCs to wholly owned subsidiaries of CLRCs. This amendment clarifies that treasurers and prosecuting attorneys may utilize surplus D-TAC funds for land reutilization purposes and provides flexibility for making such determination. This statute prescribes the contents of the statutory notice of tax delinquency. The amendment changes the notice of tax foreclosure from one year to 60 days to be consistent with existing which calls for 60 days rather than one year. This amendment allows the county to foreclosure on properties that have been properly certified and are ready for foreclosure according to law. The amendment provides that with respect to abandoned lands, it is not technically necessary to advertise the delinquencies, even though this is the practice and publication, as a separate matter, is required in other statutes. Advertisement of delinquency in a newspaper is a collection tool and not a predicate to tax foreclosure and therefore need not be a predicate or necessarily tied to the filing a properly certified and case ready tax foreclosure. Under H.B. 294, abandoned lands need only be exposed to sale once. This should also be the case under all other tax foreclosure proceedings involving vacant and abandoned lands. This amendment provides that if a CLRC is both the judgment creditor on mortgage or other collateralized paper, and the purchaser at a sheriff sale resulting from a judicial foreclosure, the taxes and assessments due on the real estate are extinguished in the same manner as existing direct transfers pursuant to a RC to tax foreclosure or a deed in lieu of foreclosure donation pursuant to RC Clarifies and makes consistent the definition of delinquent vacant land and delinquent land with the definition of Clarifies descriptions of criteria for Unoccupied lands by removing circular references to Abandoned Lands. Repeals repetitive definition of Delinquent vacant lands already provided in (D) Clarifies that abandoned land includes delinquent lands that are open, vacant, or vandalized upon visible inspection. 1. Changes the length of the Alternative redemption period from 45 to 28 days after the adjudication of foreclosure is journalized by the court or county board of revision. 2. Clarifies that the alternative redemption period commences on the day immediately following the journalization of the adjudication of foreclosure. Clarifies and makes consistent with that the newspaper advertisement of a delinquent land is not a predicate to the filing of an actual foreclosure. 1

2 323.69(B)(2) (D) , ,323.72, (B) (C) (B) This amendment changes the time period set forth in the notice of summons and complaint for a defendant to request an automatic dismissal from a BOR hearing from 20 days to 14 days. Dismissals are costly and result in a waste of PJR and FJR costs, publications and filing fees and prosecutorial resources. This change conforms the time period to request a dismissal with the changes in the amendments to (B). This amendment conforms the practice used in judicial tax foreclosure cases to BOR tax foreclosure cases. A defendant who must be served through publication now has 28 days from the date of notice by publication to file an answer with the BOR or be deemed in default. These additional changes to , , , and provide more clarity to how and when this new ability to transfer between the BOR and judicial forum will occur. Reduces the 20 day automatic dismissal rule to 14 days, and restricts the dismissal only to titled owners. Also, currently, there is no ability to transfer a Board of Revision tax foreclosure case to the judiciary in the event it is determined that the BOR has no jurisdiction; likewise there is no mechanism whereby a tax foreclosure in the judiciary can be transferred to the BOR if it is determined that the property is vacant and abandoned. This addition allows these transfers. The benefit is that the entire process and the costs incurred to that point are not wasted by virtue of a dismissal, but can be simply transferred to the other adjudicating body thereby saving these costs and promoting judicial economy. The other benefit is that vacant and abandoned property disposition will not be delayed by virtue of the dismissal, but can continue to proceed as originally filed. Likewise, the automatic 20-day dismissal rule is lessened to 14 days and the exception for the Fed is removed, leaving only title owners the right to seek a 14-day dismissal. This is a technical change to conform to and (B). When a dismissal occurs in the Board of Revision, it is not removed from the abandoned land list, rather, the case is merely dismissed so that it can be filed in a different forum. Clarifies that a county board of revision has the power to subpoena in order to adjudicate a tax foreclosure case under R.C to Clarifies that when a dismissal occurs in the Board of Revision, it is not removed from the abandoned land list, rather, the case is dismissed so that It can be filed in a different forum. 2

3 323.73(C) This change creates an optional procedure and remedy against defaulting bidders at sheriff s sales who bid on BOR tax foreclosed properties. Unlike existing law which authorizes contempt hearings that are required to punish a defaulting bidder at a sheriff sale of judicially foreclosed properties, this new mechanism is self executing because it requires no action by the board to take effect. With proper notice, if a bidder does not pay the balance of their bid within 30 days of the auction, any interest in the property is lost and any deposit is retained by the county sheriff as payment for costs of readvertising the resale of the property. Clarifies the alternative 28-day right of redemption and when the period starts to run. Clarifies when the alternative right of redemption expires and clarifies when the appeal time runs from a Board of Revision tax foreclosure case. This amendment allows a city or a county land bank to file a separate lien for nuisance abatement costs (demolitions, board-up, weed cutting). The current statutes allow cities and land banks to separately assert these liens by way of the duplicate and to separately file foreclosure actions. Cities and county land banks will now be able to assert separate liens and file a separate foreclosure action for the amount of their lien much like a mechanic s lien holder who provides services and expenses on behalf of a property. The statute also allows the cities and county land banks to file separate foreclosures and, upon a decree of foreclosure to receive the property in lieu of taxes as permitted under (deed-in-lieu statute). The amendment also incorporates the bona fide purchaser rules to clarify marketable title to a city land bank, a CLRC and its successors. Prohibits the placement of liens for abatement activities on tax duplicate when they occurred prior to acquisition of the parcel by an electing subdivision or a purchaser at sheriff sale. Authorizes county auditors to remove such erroneous charges from the duplicate upon notification by owner or electing subdivision. So long as a land reutilization corporation itself is not responsible for water usage incurred by a prior owner in the chain of title, no lien is operative as against the CLRC. This promotes the marketability of title in repurposing or reconveying property that would otherwise constitute a toxic title due to liens imposed on a parcel for old charges down the chain of title. The previous account holders that actually incurred the charges continue to be responsible for such utility usage. Prohibits the placement of liens for water rents or charges on tax duplicate when they occurred prior to acquisition of the parcel by an electing subdivision or a purchaser at sheriff sale. Authorizes county auditors to remove such erroneous charges from the duplicate upon notification by owner or electing subdivision. This amendment loosens the restriction on the number of occupied properties a CLRC may hold. It changes the limit to be the greater of either 50 properties or 25% of the total number of properties held by a CLRC. 3

4 (C)(1)(q) & (F) (F) (A)(1) (B)(5) (A) (B) (D) repealed (I) When former Representative Peter Uvagi introduced and passed H.B. 313 which opened up land banking to the rest of the State, he added a section into H.B. 313 which provided civil immunity to land banks much like the numerous agencies, commissions and public purpose entities in R.C To avoid confusion, this provision should be located in Section to clarify the nature of the immunity, and land reutilization corporations should be named as immunized agencies in that section of the Code, in addition to Chapter All properties acquired by an electing subdivision are eligible for the exempt status if they file a tax exemption form with the County Auditor/Fiscal Officer. CLRCs are not required to file a tax exemption form. All other electing subdivisions (municipal land banks) should not have to file with the tax commissioner for exemption no matter how a property is acquired, consistent with existing laws treatment of CLRCs. This required filing is an unnecessary administrative burden because the law already affords the tax exempt status. The exemption should exist under 5722 and This amendment also extends the exemption from real estate taxation for properties owned by a county land bank to properties owned by a wholly owned subsidiary of the county land bank. In order to qualify for this exemption, the wholly owned subsidiary must identify itself as such in the deed of conveyance to the exempted property. Clarifies the definition of delinquent lands for purposes of Chapter 5722, and foreclosures under (and ) and includes lands unimproved by any dwelling. The intent of this change is to and clarify that the delinquent vacant lands definition in (A)(2) is relevant specifically and exclusively to foreclosure and forfeiture proceedings. Clarifies that the advertisement of a delinquent land is not a predicate to the filing of an actual foreclosure. Clarifies that a county prosecuting attorney may also institute a tax foreclosure proceeding on lands listed on the delinquent vacant lands list using to BOR tax foreclosure proceedings Clarifies that the in rem forfeiture proceedings under this statute are limited to this section only. Clarifies that the advertisement of a delinquent land is not a predicate to the filing of an actual foreclosure. Clarifies that a prosecuting attorney must not make a determination in his/her pleading that a foreclosure action under division (B) or (C) of is precluded by law in order to file a foreclosure action under division (A) of the same section. This is a surplusage in the statute which has no substantive purpose. Fixes a typo in the Code. Section (I) reference a division E which should read division C 4

5 (A)(3) (C) and (F) (D) and (F) (C) Allows and clarifies that any land bank, city, county or township may repurchase sold tax lien certificates at par value for a period of one year after the sale of the tax lien certificate. Conforms delinquent land definition to that in Also, under the land bank statutes and the affidavit system required and implemented thereunder, there is an ambiguity as to the definition of non-productive land. The change allows eligible lands to be considered non-productive, whether or not they are deemed necessary for a land reutilization program. This change does not expand the definition of non-productive lands. Instead, it only provides clarification that a determination of necessity need not be part of identifying land as non-productive. This statute merely conforms the one-sale rule currently employed in 5721, and , et seq. and adds the bona fide purchaser status to land reutilization corporations. This amendment provides a mechanism for an electing subdivision to move a Court or Board to vacate a decree of foreclosure, order of direct transfer, or confirmation of sale that has resulted in the electing subdivision inadvertently or improvidently taking title to a property it should not have indicated its desire to acquire. Pursuant to this amendment, an electing subdivision shall be deemed to have standing to so move a Court or Board even though it is not a named party to the action. This motion to vacate shall be granted by a Court or Board as of right if requested within Sixty (60) days of the electing subdivision taking title. If the request is made after 60 days, it still may be granted at the Court or Board s discretion. This amendment clarifies the application of the bona fide purchaser rules for forfeited lands under this statute. This amendment clarifies that municipal land banks can transfer land banked properties to county land banks without the need for an appraisal to determination of the fair market value of the property. Currently, deed-in-lieu practice requires the consent of the Auditor. However, there is no guidance as to how that consent is to be administered and therefore is subject to attack from an owner or another land bank city that the consent process is arbitrary. The land banking statutes apply to nonproductive land, and hence the consent should be in conformity with such properties being deemed abandoned as defined in RC (tax delinquent and unoccupied). Also reasserts the bona fide purchaser rules. This amendment conforms the land banking tax exemption statute with which is the tax-exemption statute for land banks and cities. County Land Banks are not required to file with the Tax commissioner for taxexemption status, and neither should cities. This would eliminate unnecessary, costly and voluminous processing of the exemption forms by the Auditor s office. 5

6 (B) and (C) (C)(Conjunction with (C)) (W) This amendment provides local governments and land banks a right of entry and protections from liability when they enter upon lands that have been forfeited to the state for nonpayment of taxes in order to do environmental assessments or other public health and safety inspections. This would be an important tool for land banks and municipalities to use when they are considering the potential for economic redevelopment of lands with a history of commercial or industrial use. Often, in order to secure funding for such assessments, an entity must secure an access agreement with the owner of the land. Without such an agreement, the local governmental agency providing the funding is concerned about potential liability arising from an unauthorized entry. Trying to acquire this permission is often difficult if not impossible on forfeited land because the previous owner is either defunct or wants no part in the land. Along with the right of entry, a local government or land bank would be provided the immunity from claims consistent with that of existing law when undertaking environmental assessments or remediation. Establishes bona fide purchaser status as against uncertified or unknown assessments down the chain of title. Assures marketable title to CLRCs and their successors, thus promoting productive land reuse. Establishes bona fide purchaser status as against uncertified or unknown assessments down the chain of title. Assures marketable title to CLRCs and their successors, thus promoting productive land reuse. Establishes bona fide purchaser status as against uncertified or unknown assessments down the chain of title, thus promoting productive land reuse. Prohibits the placement of liens for unpaid sewer charges on tax duplicate when they occurred prior to acquisition of the parcel by an electing subdivision or a purchaser at sheriff sale. Authorizes county auditors to remove such erroneous charges from the duplicate upon notification by owner or electing subdivision. 6