Relating to abandoned structures and abatement of public nuisances

The bill requires a property to remain vacant for 135 days before a person may request a responsible building official to inspect a building to determine whether it is abandoned and in need of abatement, but allows a responsible building official, which is defined in the bill, to initiate an inspection at any time. The bill requires the responsible building inspector to make an application to the court for an administrative warrant to enter any building to conduct an inspection. The term “building” currently includes buildings and structures only.26. Current law relies on the current definition of “abandoned” to start the clock for when a person may file a petition for abatement. A hearing is required to determine if the building is abandoned or is a public nuisance. Currently, a petitioner must make service on the building owner in one of three methods. The bill provides that a petition for abatement may be filed no sooner than the latter of six months after the building has become abandoned and days after the responsible building official’s inspection findings have been provided to the person requesting the inspection, the owner of the building, and all interested parties. The bill does not allow for a personal judgment against any party and requires the petition to be solely against the interested persons’ interest in the property. The bill includes additional methods of service. The bill allows a responsible building official’s written inspection report to be accepted as evidence in an evidentiary hearing or motion in a proceeding under Code chapter 657A under certain circumstances.10. A property cannot be claimed as homestead, and a mortgagor, or successor in interest of record, cannot reject a nonjudicial foreclosure written notice served on the mortgagor, or successor in interest, after such date. Current law allows an owner to collect reasonable attorney fees actually incurred from a petitioner if the court finds that the building in question is not abandoned or a public nuisance. The bill allows the court to require the petitioner to pay an interested party’s reasonable attorney fees.1A shall not be awarded attorney fees. If a party to the action holds an interest in the property as a nominee, a fiduciary, or another representative capacity for a third party, or an underlying loan on the property is guaranteed by a third party, the party to the action may apply to the court for a stay of action for a reasonable time necessary to obtain the appropriate authority, information, or instructions from or on behalf of the beneficiary or guarantor. Current law requires the court to conduct a hearing to offer mortgagees of record, lienholders of record, or other known interested persons the opportunity to abate a public nuisance. The bill eliminates such hearing and creates a new process for interested persons to demonstrate their intent and ability to abate the nuisance and act as a receiver. If the building is a historic building or located in a historic district, the court shall give preference to an economically feasible rehabilitation plan that preserves the historical nature of the building. Current law allows a court to empower a receiver to issue notes and secure the notes by mortgages bearing interest at the statutory rate and any terms and conditions approved by the court. The bill allows the court to provide for a higher interest rate. If the receiver contemplates a transfer of the note and mortgage, at the time that the receiver seeks court authorization of the contemplated transfer, the receiver must disclose to the mortgagee the contemplated transfer in the receiver’s application for approval of the mortgage. The bill provides that it is unlawful, and a receiver may be held liable, for actual damages for entering a property that is not abandoned for purposes of trying to render the property abandoned by trying to force, intimidate, harass, or coerce a lawful occupant to vacate the property. If a receiver enters a property peacefully for the purpose of rendering it vacant, and makes a good-faith effort to comply with all requirements as detailed in the bill, and with any applicable mortgage, lease, or other agreement related to occupancy of the building, the receiver is immune from liability. The bill makes an interested party responsible for paying the mortgagee’s reasonable costs and attorney fees if the interested party pays off the receiver’s mortgage loan. The bill requires a receiver to pay a plaintiff’s reasonable attorney fees in most situations, but provides that a neighboring landowner who pursued an action in bad faith may be liable for attorney fees. The court may bar such landowner from filing further actions under Code chapter 657A. The bill provides that a city may petition the court to enter judgment awarding the city the title to an abandoned property located in the city if the building has been abandoned for at least six consecutive months. Current law does not require the building to be abandoned for six consecutive months.10 shall only apply to cities and counties that adopt such by ordinance.10, the bill allows a city, or a county that has an alleged nuisance property outside the limits of a city, to petition the court for an injunction that requires the property owner to correct any conditions causing the property to be a public nuisance.10B, and to correct internal Code references as necessary.