Senate Study Bill 1301 



                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            JUDICIARY BILL BY
                                            CHAIRPERSON KREIMAN)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the acquisition of title to abandoned property
  2    by cities.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2678SC 83
  5 md/sc/14

PAG LIN



  1  1    Section 1.  Section 657A.10A, Code 2009, is amended to read
  1  2 as follows:
  1  3    657A.10A  PETITION BY CITY FOR TITLE TO ABANDONED PROPERTY.
  1  4    1.  In lieu of the procedures in sections 657A.2 through
  1  5 657A.10, a city in which an abandoned building is located may
  1  6 petition the court to enter judgment awarding title to the
  1  7 abandoned property to the city.
  1  8    2.  At least thirty days prior to filing a petition for
  1  9 title to abandoned property under this section, the city shall
  1 10 attempt to notify the owner of the property of the city's
  1 11 intent to acquire the property.  The city shall mail the
  1 12 notice by certified mail to the owner at the owner's last
  1 13 known address, to any contract purchaser of record of the
  1 14 property, to any tenant known to be occupying the property,
  1 15 and to any record lienholder or encumbrancer of the property
  1 16 at the lienholder's or encumbrancer's last known address.  The
  1 17 city shall also cause the notice to be posted in a conspicuous
  1 18 place on the building.
  1 19    3.  a.  If more than one abandoned building is located on a
  1 20 parcel of real estate, the city may combine the actions into
  1 21 one petition.  The owner of the building and grounds,
  1 22 mortgagees of record, lienholders or encumbrancers of record,
  1 23 or the county in which the property is located if delinquent
  1 24 property taxes are owing, the holder of tax sale certificates,
  1 25 and other known persons who hold an interest in the property
  1 26 shall be named as respondents on the petition.
  1 27    b.  The petition shall be filed in the district court of
  1 28 the county in which the property is located.  Service on the
  1 29 owner and any other named respondents shall be by certified
  1 30 mail and by posting the notice in a conspicuous place on the
  1 31 building.  The action shall be in equity.
  1 32    4.  a.  Service on the owner and any other named
  1 33 respondents shall be by certified mail.  The petition shall be
  1 34 mailed to each respondent at the respondent's last known
  1 35 address as reflected in county records.  The city shall also
  2  1 cause the petition to be published once in a newspaper of
  2  2 general circulation in the county within ten days of the
  2  3 petition being filed.  Service of the petition shall be deemed
  2  4 complete on the date of publication.
  2  5    b.  In lieu of mailing and publishing the petition, the
  2  6 city may cause the petition to be served upon such persons in
  2  7 the manner provided by the Iowa rules of civil procedure for
  2  8 the personal service of original notice.
  2  9    c.  In addition to notice provided under paragraph "a" or
  2 10 paragraph "b", the city shall also cause notice of the
  2 11 petition to be posted in a conspicuous place on the building.
  2 12    5.  The city shall set forth in the petition the fair
  2 13 market value of the property in the property's condition
  2 14 existing on the date the petition is filed as determined by an
  2 15 appraisal prepared for the city, the amount of delinquent
  2 16 property taxes or special assessments on the property, and
  2 17 evidence that the city has attempted to provide notice under
  2 18 subsection 2.  A copy of the appraisal shall be attached to
  2 19 the petition.
  2 20    2.  6.  Not The city may request a hearing on the petition
  2 21 not sooner than sixty days after the filing of the petition,
  2 22 the city may request a hearing on the petition.  Notice of the
  2 23 hearing shall be provided to all respondents in the manner
  2 24 provided in subsection 4.  Notice of the hearing shall be
  2 25 given not less than thirty days prior to the date of the
  2 26 hearing.
  2 27    3.  7.  In determining whether a property has been
  2 28 abandoned, the court shall consider the following for each
  2 29 building that is located on the property and named in the
  2 30 petition and the building grounds:
  2 31    a.  Whether any property taxes or special assessments on
  2 32 the property were delinquent at the time the petition was
  2 33 filed.
  2 34    b.  Whether any utilities are currently being provided to
  2 35 the property.
  3  1    c.  Whether the building is unoccupied by the owner or
  3  2 lessees or licensees of the owner.
  3  3    d.  Whether the building meets the city's housing code for
  3  4 being fit for human habitation, occupancy, or use.
  3  5    e.  Whether the building is exposed to the elements such
  3  6 that deterioration of the building is occurring.
  3  7    f.  Whether the building is boarded up.
  3  8    g.  Past efforts to rehabilitate the building and grounds.
  3  9    h.  The presence of vermin, accumulation of debris, and
  3 10 uncut vegetation.
  3 11    i.  The effort expended by the petitioning city to maintain
  3 12 the building and grounds.
  3 13    j.  Past and current compliance with orders of the local
  3 14 housing official.
  3 15    k.  Any other evidence the court deems relevant.
  3 16    4.  8.  In lieu of the considerations in subsection 3 7, if
  3 17 the city can establish to the court's satisfaction that all
  3 18 parties with an interest in the property have received proper
  3 19 notice and either consented to the entry of an order awarding
  3 20 title to the property to the city or did not make a good faith
  3 21 effort to comply with the order of the local housing official
  3 22 within sixty days after the filing of the petition, the court
  3 23 shall enter judgment against the respondents granting the city
  3 24 title to the property.
  3 25    5.  9.  If the court determines that the property has been
  3 26 abandoned or that subsection 4 8 applies, the court shall
  3 27 enter judgment awarding title to the city and shall determine
  3 28 an award of damages pursuant to subsection 10.  The title
  3 29 awarded to the city shall be free and clear of any claims,
  3 30 liens, or encumbrances held by the respondents.
  3 31    10.  a.  If the court awards title of the property to the
  3 32 city, the court shall award to the respondents the fair market
  3 33 value of the property and shall give consideration to the
  3 34 value of the property in its current condition and the costs
  3 35 that may be incurred in cleaning up or repairing the property.
  4  1    b.  The city may take possession of the property upon
  4  2 deposit of the amount awarded with the clerk of the district
  4  3 court.  Notice of the deposit with the clerk of the district
  4  4 court shall be provided to all respondents in the manner
  4  5 provided in subsection 4.  If the amount deposited with the
  4  6 clerk of the district court is not claimed within two years of
  4  7 the date of deposit, the clerk of the district court shall
  4  8 transfer the money to the city for deposit in the general fund
  4  9 of the city.
  4 10                           EXPLANATION
  4 11    This bill amends Code section 657A.10A relating to the
  4 12 authority of a city to petition a court to enter judgment
  4 13 awarding title to abandoned property located in the city.
  4 14    The bill requires the city to attempt to notify the owner
  4 15 and other specified interest holders of the property by
  4 16 certified mail of the city's intent to acquire the property at
  4 17 least 30 days prior to filing a petition.  The bill also
  4 18 requires the city to post the notice in a conspicuous place on
  4 19 the building.
  4 20    The bill also amends the requirements for providing notice
  4 21 of the petition to the owner and other respondents by, in
  4 22 addition to posting the petition in a conspicuous place on the
  4 23 building, requiring service by certified mail and publication
  4 24 in a newspaper of general circulation, or personal service
  4 25 pursuant to the requirements of the Iowa rules of civil
  4 26 procedure.
  4 27    The bill requires the city to set forth in the petition the
  4 28 fair market value of the property in the property's condition
  4 29 existing on the date the petition is filed as determined by an
  4 30 appraisal prepared for the city, the amount of delinquent
  4 31 property taxes or special assessments on the property, and
  4 32 evidence that the city attempted to notify the owner and
  4 33 interest holders prior to filing the petition.  The city is
  4 34 required to attach a copy of the appraisal to the petition.
  4 35    The bill requires the city to provide notice of a hearing,
  5  1 if a hearing is requested.
  5  2    The bill requires the city to pay an award of damages to
  5  3 the respondents if the city is awarded title to the property.
  5  4 An award is required to be equal to the fair market value of
  5  5 the property in its current condition, including consideration
  5  6 of the costs that may be incurred in cleaning up or repairing
  5  7 the property.  The bill authorizes the city to take possession
  5  8 of the property upon deposit of the award with the clerk of
  5  9 the district court.  Notice of the deposit with the clerk of
  5 10 the district court must be provided to all respondents.  Under
  5 11 the bill, if the amount deposited with the clerk of the
  5 12 district court is not claimed within two years of the date of
  5 13 deposit, the clerk of the district court is required to
  5 14 transfer the money to the city for deposit in the city's
  5 15 general fund.
  5 16 LSB 2678SC 83
  5 17 md/sc/14