Senate File 93 S-3010 Amend Senate File 93 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. Section 631.1, Code 2019, is amended by adding 4 the following new subsection: 5 NEW SUBSECTION . 10. The district court sitting in small 6 claims has concurrent jurisdiction for administrative warrant 7 applications pursuant to section 657A.1A, subsection 2. 8 Sec. 2. Section 655A.6, Code 2019, is amended to read as 9 follows: 10 655A.6 Rejection of notice. 11 1. If either the mortgagor, or successor in interest of 12 record including a contract purchaser, within thirty days of 13 service of the notice pursuant to section 655A.3 , files with 14 the recorder of the county where the mortgaged property is 15 located, a rejection of the notice reasonably identifying 16 the notice which is rejected together with proofs of service 17 required under section 655A.4 that the rejection has been 18 served on the mortgagee, the notice served upon the mortgagor 19 pursuant to section 655A.3 is of no force or effect. 20 2. Rejection of notice pursuant to subsection 1 shall not be 21 available to a mortgagor, or successor in interest of record 22 including a contract purchaser, of a mortgaged property that a 23 court of competent jurisdiction determined has been abandoned 24 pursuant to section 657A.2, on or after the date as determined 25 in section 657A.2, subsection 5. 26 Sec. 3. Section 657A.1, subsections 1 and 3, Code 2019, are 27 amended to read as follows: 28 1. “Abandoned” or “abandonment” means that a building has 29 remained is vacant , or is occupied only by trespassers, and has 30 been in violation of the housing code or building code of the 31 city in which the property is located or the housing code or 32 building code applicable in the county in which the property 33 is located if outside the limits of a city for a period of six 34 consecutive months . 35 -1- SF93.200 (3) 88 ko/jh 1/ 11 #1.

3. “Building” means a building or structure , excluding a 1 mobile home, a modular home, and a manufactured home as defined 2 in section 435.1, unless the mobile home or manufactured 3 home has been converted to real estate pursuant to section 4 435.26, located in a city or outside the limits of a city in 5 a county, which is used or intended to be used for commercial 6 or industrial purposes or which is used or intended to be 7 used for residential purposes and includes a building or 8 structure in which some floors may be used for retail stores, 9 shops, salesrooms, markets, or similar commercial uses, or for 10 offices, banks, civic administration activities, professional 11 services, or similar business or civic uses, and other floors 12 are used, designed, or intended to be used for residential 13 purposes. 14 Sec. 4. Section 657A.1, Code 2019, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 8. “Responsible building official” or 17 “official” means the person appointed by the city or, if the 18 building is outside the limits of a city, the county, to 19 enforce its building codes and regulations in general or to 20 enforce this chapter in particular. 21 Sec. 5. NEW SECTION . 657A.1A Preliminary inspection of 22 building. 23 1. No sooner than one hundred thirty-five days after a 24 property has become vacant, a person, other than a governmental 25 entity, may request that the responsible building official 26 inspect the property and certify that a property is both 27 abandoned and in need of abatement. The responsible building 28 official may also initiate an inspection on the official’s own 29 initiative at any time. 30 2. If the responsible building official finds from an 31 exterior view of the property, in addition to any other 32 credible information that the official may have, that there 33 is reasonable cause to believe that the property is abandoned 34 and in need of abatement, the official shall schedule a date 35 -2- SF93.200 (3) 88 ko/jh 2/ 11

and time for an inspection of the property by the official. 1 The person requesting the inspection shall provide written 2 notice of the scheduled inspection by first class mail and 3 certified mail to the owner and all interested persons at 4 least twenty days before the inspection. The notice must 5 state the date, time, and place of the inspection and state 6 that unless the owner appears at the inspection to allow the 7 responsible building official access to the interior of the 8 property, the official, accompanied by the person serving 9 notice and any interested persons appearing for the inspection, 10 may enter the property to determine whether the property is 11 abandoned and in need of abatement and, if so, to estimate 12 the costs of abatement. The official may enter the property 13 for an inspection, along with the person serving notice and 14 any interested persons, if the owner is not present for the 15 inspection. Upon request, the inspection may be rescheduled 16 as needed. The responsible building official must obtain an 17 administrative search warrant pursuant to section 808.14 to 18 enter any building to conduct an inspection pursuant to this 19 section. 20 3. The responsible building official’s findings shall 21 be in writing with copies provided to the person requesting 22 the inspection, the owner, and all interested parties. The 23 governmental entity employing the responsible building official 24 may establish and charge a fee to cover the reasonable costs 25 of the inspection, which shall be added to costs in an action 26 under this chapter. 27 4. Evidence that financial obligations in respect to a 28 building, including but not limited to payments of a mortgage, 29 bills, or property taxes, are currently met does not rebut a 30 finding of abandonment if the property is substantially in need 31 of abatement in an action filed under section 657A.2. 32 Sec. 6. Section 657A.2, Code 2019, is amended by striking 33 the section and inserting in lieu thereof the following: 34 657A.2 Petition. 35 -3- SF93.200 (3) 88 ko/jh 3/ 11

1. No sooner than the latter of thirty days after provision 1 of the responsible building official’s findings under section 2 657A.1A and six months after a building has become abandoned, 3 a petition for abatement under this chapter may be filed in 4 the district court of the county in which the property is 5 located by the city in which the property is located, by the 6 county if the property is located outside the limits of a city, 7 by a neighboring landowner, or by a duly organized nonprofit 8 corporation which has as one of its goals the improvement of 9 housing conditions in the county or city in which the property 10 in question is located. The petition shall not demand a 11 personal judgment against any party, but shall concern only 12 the interests in the property. A petition for abatement filed 13 under this chapter shall include the legal description of 14 the real property upon which the public nuisance is located 15 unless the public nuisance is not situated on or confined to 16 a parcel of real property, or is portable or capable of being 17 removed from the real property. Service shall be made on all 18 interested persons by personal service or, if personal service 19 cannot be made, by certified mail and first class mail to the 20 last known address of record of the interested person and by 21 posting the notice in a conspicuous place on the building, 22 or by publication. The last known address of record for the 23 property owner shall be the address of record with the county 24 treasurer of the county where the property is located. Service 25 may also be made as provided in section 654.4A. 26 2. If entering judgment, the court shall determine any 27 issues at law, including issues relating to title, raised by 28 the plaintiff or by a party in interest who has filed a motion 29 or answer. 30 3. In any evidentiary hearing or motion in a proceeding 31 under this chapter, the written findings of the responsible 32 building official relating to the condition of the building and 33 other matters within the scope of this chapter, if provided 34 at least ten days before the hearing to all persons not in 35 -4- SF93.200 (3) 88 ko/jh 4/ 11

default, shall be accepted as evidence without prejudice to the 1 right of any party to require the personal testimony of the 2 responsible building official at the hearing. 3 4. If the court finds at a hearing pursuant to this section 4 that the building is abandoned or is a public nuisance, the 5 court may issue an injunction requiring the owner to correct 6 any conditions that make such building a public nuisance, or 7 issue another order that the court deems appropriate to address 8 the public nuisance. 9 5. If the court finds at a hearing pursuant to this 10 section that the building is abandoned, unless the court 11 order establishes otherwise, the property shall be deemed 12 continuously abandoned from the date the action is indexed 13 pursuant to section 617.10, subsection 1. 14 6. A property shall not be claimed as homestead pursuant to 15 chapter 561 on or after the date determined in subsection 5. 16 7. In a proceeding under this section, if the court 17 determines the building is not abandoned, the court shall 18 dismiss the petition and may require the petitioner to pay an 19 interested party’s reasonable attorney fees. An owner of the 20 property who failed to appear for an inspection pursuant to 21 section 657A.1A shall not be awarded attorney fees under this 22 section. 23 8. If a party to the action holds an interest in the 24 property as a nominee, a fiduciary, or another representative 25 capacity for a third party, or an underlying loan on the 26 property is guaranteed by a third party, the party to the 27 action may apply to the court for a stay of action, as it 28 affects the party’s interest, for a reasonable time to allow 29 the party to obtain the appropriate authority, information, or 30 instructions from or on behalf of the beneficiary or guarantor 31 as related to the property interest or underlying loan. 32 Sec. 7. Section 657A.3, Code 2019, is amended to read as 33 follows: 34 657A.3 Interested persons —— opportunity to abate public 35 -5- SF93.200 (3) 88 ko/jh 5/ 11

nuisance. 1 1. Before appointing a receiver to perform work or to 2 furnish material to abate a public nuisance under this chapter , 3 the court shall conduct a hearing at which the court shall 4 offer mortgagees of record, lienholders of record, or other 5 known interested persons in the order of priority of interest 6 in title, the opportunity to undertake the work and to furnish 7 the materials necessary to abate the public nuisance. The 8 establish a date before which interested persons may file with 9 the court shall require the person selected to demonstrate 10 the written proof of intent and ability to promptly undertake 11 promptly the work required and to post security for the 12 performance of the work. If no such written proof is filed 13 by that date, the court may appoint a receiver pursuant to 14 subsection 3. 15 2. All amounts expended by the person toward abating the 16 public nuisance are a lien on the property if the expenditures 17 were are approved in advance by the a judge and if the person 18 desires the lien. The Unless an interested person has a 19 contract with the owner providing for a different interest 20 rate, the lien shall bear interest at the rate provided for 21 judgments pursuant to section 535.3 , and shall be payable upon 22 terms approved by the judge. If a certified copy of the a 23 court order that approved approving the expenses and the terms 24 of payment for the lien, and a description of the property 25 in question , are filed for of record within thirty days of 26 the date of issuance of the order in the office of the county 27 recorder of the county in which the property is located, the 28 lien has the same priority as the mortgage of a receiver as 29 provided in section 657A.7 . 30 2. 3. If the court determines by the date established 31 in subsection 1 or at the a hearing conducted pursuant 32 to subsection 1 , on the sufficiency of a timely filed 33 rehabilitation plan that no interested person can undertake the 34 work and furnish the materials required to abate the public 35 -6- SF93.200 (3) 88 ko/jh 6/ 11

nuisance, or if the court determines at any time after the 1 hearing that an interested person who is undertaking corrective 2 work pursuant to this section cannot or will not proceed, or 3 has not proceeded with due diligence, the court may appoint a 4 receiver to take possession and control of the property. The 5 receiver shall be appointed in the manner provided in section 6 657A.4 . 7 4. If the building is a historic building or is located in 8 a designated historic district, the court shall give preference 9 to an economically feasible rehabilitation plan that preserves 10 the historical nature of the building. 11 5. Unless a receiver’s mortgage provides for periodic 12 payments, a notice, in lieu of the notice pursuant to section 13 654.2D, shall also be served by ordinary or electronic mail 14 informing all interested persons of the date certain for the 15 maturity of the mortgage note, or the event triggering maturity 16 of the mortgage note, and that on maturity the receiver’s 17 mortgage loan will be payable in full and the mortgagee may 18 then commence foreclosure without further notice. A notice 19 pursuant to section 654.4B shall also be served by ordinary or 20 electronic mail on the owner of record of the property. The 21 mortgagee shall not commence foreclosure of the mortgage until 22 sixty calendar days have passed since the date of service of a 23 notice under this subsection. 24 Sec. 8. Section 657A.4, Code 2019, is amended to read as 25 follows: 26 657A.4 Appointment of receiver. 27 After conducting If after expiration of a date established 28 pursuant to section 657A.3, subsection 1, or a hearing 29 pursuant to section 657A.3 , the court may appoint a receiver 30 to take possession and control of the property in question. 31 A person shall not be appointed as a receiver unless the 32 person has first provided the court with a viable financial 33 and construction plan for the rehabilitation of the property 34 in question and has demonstrated the capacity and expertise 35 -7- SF93.200 (3) 88 ko/jh 7/ 11

to perform the required work in a satisfactory manner. The 1 appointed receiver may be a financial institution that 2 possesses an interest of record in the property, a nonprofit 3 corporation that is duly organized and exists for the primary 4 purpose of improving housing conditions in the county or city 5 in which the property in question is located, or any person 6 deemed qualified by the court. No part of the net earnings of a 7 nonprofit corporation serving as a receiver under this section 8 shall benefit a private shareholder or individual. Membership 9 on the board of trustees of a nonprofit corporation does not 10 constitute the holding of a public office or employment and is 11 not an interest, either direct or indirect, in a contract or 12 expenditure of money by a city or county. No member of a board 13 of trustees of a nonprofit corporation appointed as receiver 14 is disqualified from holding public office or employment, nor 15 is a member required to forfeit public office or employment by 16 reason of the membership on the board of trustees. 17 Sec. 9. Section 657A.6, subsection 9, Code 2019, is amended 18 to read as follows: 19 9. Issue notes and secure the notes by mortgages bearing 20 interest at the rate provided for judgments pursuant to 21 section 535.3 , and any terms and conditions as approved by 22 the court. The court may provide for a higher interest rate 23 if the receiver has established to the satisfaction of the 24 court that the receiver has sought financing from individuals 25 and institutions willing to lend money for rehabilitation 26 of property and that the terms proposed by the receiver are 27 reasonable. When transferred by the receiver in return for 28 valuable consideration in including money, material, labor, 29 or services, the notes issued by the receiver are freely 30 transferable. If the receiver has notice that the mortgagee 31 of the receiver’s mortgage is contemplating a transfer of the 32 mortgage, the receiver shall disclose such to the court in the 33 application for approval of the mortgage. 34 Sec. 10. NEW SECTION . 657A.6A Receiver —— prohibited acts. 35 -8- SF93.200 (3) 88 ko/jh 8/ 11

Notwithstanding section 657A.10, it shall be unlawful, and a 1 receiver may be held liable for actual damages as determined 2 by a court, for entering a residential property that is not 3 abandoned for the purpose of forcing, intimidating, harassing, 4 or coercing a lawful occupant of the property to vacate in 5 order to render the property vacant and abandoned, and it shall 6 be unlawful to otherwise force, intimidate, harass, or coerce 7 a lawful occupant of a residential property to vacate so the 8 property may be deemed vacant and abandoned. A receiver who 9 peacefully enters a property for the purpose of rendering the 10 property vacant and abandoned shall be immune from liability 11 if the receiver makes a good-faith effort to comply with this 12 chapter and all terms of any applicable mortgage, lease, or 13 other agreement related to the occupancy of the building. 14 Sec. 11. Section 657A.7, subsection 1, Code 2019, is amended 15 to read as follows: 16 1. If the receiver’s mortgage is filed for of record in 17 the office of the county recorder of the county in which the 18 property is located within sixty days of the issuance of a 19 secured note, the receiver’s mortgage is a first lien upon the 20 property and is superior to claims of the receiver and to all 21 prior or subsequent liens and encumbrances except taxes and 22 assessments , including taxes and assessments advanced by any 23 mortgagee in the twelve-month period immediately preceding the 24 date a petition is filed pursuant to section 657A.2 . Priority 25 among the receiver’s mortgages is determined by the order in 26 which the mortgages are recorded. 27 Sec. 12. Section 657A.7, Code 2019, is amended by adding the 28 following new subsection: 29 NEW SUBSECTION . 3. If a mortgagee of the receiver’s 30 mortgage begins foreclosure procedures pursuant to chapter 655A 31 and an interested party desires to pay off the mortgage loan, 32 the interested party shall also pay the mortgagee’s reasonable 33 costs and attorney fees. 34 Sec. 13. Section 657A.8, Code 2019, is amended to read as 35 -9- SF93.200 (3) 88 ko/jh 9/ 11

follows: 1 657A.8 Assessment of costs. 2 The court may assess the costs and expenses set out in 3 section 657A.6, subsection 2 , and may approve receiver’s fees 4 to the extent that the fees are not covered by the income 5 from the property. The receiver shall pay the costs and 6 reasonable attorney fees of a plaintiff who requested an 7 inspection pursuant to section 657A.1A unless an interested 8 party not in default who appeared for the inspection objects 9 to the fees and costs in whole or in part. The court shall 10 determine the merits of such objection. If the court finds 11 that a neighboring landowner has pursued an action pursuant to 12 this chapter in bad faith, the court may assess attorney fees 13 against the neighboring landowner and may bar such neighboring 14 landowner from filing future actions under this chapter. If a 15 foreclosure of the receiver’s mortgage pursuant to chapter 655A 16 is contemplated, the court may retain jurisdiction to determine 17 the amount of attorney fees payable under section 657A.7, 18 subsection 3. 19 Sec. 14. Section 657A.10A, subsection 1, paragraph a, Code 20 2019, is amended to read as follows: 21 a. In lieu of the procedures in sections 657A.2 657A.1A 22 through 657A.10 and 657A.10B , a city in which an abandoned a 23 building that has been abandoned for at least six consecutive 24 months is located may petition the court to enter judgment 25 awarding title to the abandoned property to the city. A 26 petition filed under this section shall include the legal 27 description of the abandoned property. If more than one 28 abandoned building is located on a parcel of real estate, the 29 city may combine the actions into one petition. The owner of 30 the building and grounds, mortgagees of record, lienholders 31 of record, or other known persons who hold an interest in the 32 property shall be named as respondents on the petition. 33 Sec. 15. NEW SECTION . 657A.10B Applicability. 34 The provisions of sections 657A.1A through 657A.10 shall 35 -10- SF93.200 (3) 88 ko/jh 10/ 11

only apply to cities and counties that have, by ordinance, 1 provided that the provisions shall apply. 2 Sec. 16. NEW SECTION . 657A.10C Petition for injunction. 3 As an alternative to the remedies under this chapter, a 4 city, or a county if a property that is alleged to be a public 5 nuisance is located outside the limits of a city, may petition 6 the court for an injunction that requires the owner of the 7 property to correct or eliminate the condition or violation 8 causing the public nuisance. Service of the original notice 9 shall be made as provided in section 657A.2, subsection 1. 10 Sec. 17. CODE EDITOR DIRECTIVE. 11 1. The Code editor is directed to renumber section 657A.10B, 12 as enacted in this Act, as section 657A.10A, and to renumber 13 section 657A.10A as section 657A.10B. 14 2. The Code editor shall correct internal references in the 15 Code and in any enacted legislation as necessary due to the 16 enactment of this section. > 17 ______________________________ COMMITTEE ON LOCAL GOVERNMENT JEFF EDLER, CHAIRPERSON -11- SF93.200 (3) 88 ko/jh 11/ 11