Senate File 415 - Reprinted



                                       SENATE FILE       
                                       BY  COMMITTEE ON JUDICIARY

                                       (SUCCESSOR TO SSB 1301)


    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 disaster-affected
  2    abandoned property by cities in certain years.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 SF 415
  5 md/sc/jh/26

PAG LIN



  1  1    Section 1.  PETITION BY CITY FOR TITLE TO DISASTER=AFFECTED
  1  2 ABANDONED PROPERTY.
  1  3    1.  In lieu of the procedures in sections 657A.2 through
  1  4 657A.10A, a city in which a disaster=affected abandoned
  1  5 building is located may petition the court to enter judgment
  1  6 awarding title to the disaster=affected abandoned property to
  1  7 the city.  For the purposes of this section,
  1  8 "disaster=affected abandoned building" means a building that
  1  9 is abandoned as defined in section 657A.1, and the land the
  1 10 building is located on, that was damaged by a disaster as
  1 11 defined in section 29C.2 between May 1, 2008, and September 1,
  1 12 2008, that is located in an area for which the governor
  1 13 proclaimed a state of disaster emergency during 2008, that
  1 14 constitutes a public nuisance, and that is not feasible to
  1 15 rehabilitate.
  1 16    2.  At least thirty days prior to filing a petition for
  1 17 title to disaster=affected abandoned property under this
  1 18 section, the city shall attempt to notify the owner of the
  1 19 property of the city's intent to acquire the property.  The
  1 20 city shall mail the notice by certified mail to the owner at
  1 21 the owner's last known address, to any contract purchaser of
  1 22 record of the property, to any tenant known to be occupying
  1 23 the property, and to any record lienholder or encumbrancer of
  1 24 the property at the lienholder's or encumbrancer's last known
  1 25 address.  The city shall also cause the notice to be posted in
  1 26 a conspicuous place on the building.
  1 27    3.  a.  If more than one disaster=affected abandoned
  1 28 building is located on a parcel of real estate, the city may
  1 29 combine the actions into one petition.  The owner of the
  1 30 building and land, mortgagees of record, lienholders or
  1 31 encumbrancers of record, the county in which the property is
  1 32 located if delinquent property taxes are owing, the holder of
  1 33 tax sale certificates, and other known persons who hold an
  1 34 interest in the property shall be named as respondents on the
  1 35 petition.
  2  1    b.  The petition shall be filed in the district court of
  2  2 the county in which the property is located.  A petition under
  2  3 this section shall be filed not later than December 31, 2010.
  2  4 The action shall be in equity.
  2  5    4.  a.  Service on the owner and any other named
  2  6 respondents shall be by certified mail.  The petition shall be
  2  7 mailed to each respondent at the respondent's last known
  2  8 address as reflected in county records.  The city shall also
  2  9 cause the petition to be published once in a newspaper of
  2 10 general circulation in the county within ten days of the
  2 11 petition being filed.  Service of the petition shall be deemed
  2 12 complete on the date of publication.
  2 13    b.  In lieu of mailing and publishing the petition, the
  2 14 city may cause the petition to be served upon such persons in
  2 15 the manner provided by the Iowa rules of civil procedure for
  2 16 the personal service of original notice.
  2 17    c.  In addition to notice provided under paragraph "a" or
  2 18 paragraph "b", the city shall also cause notice of the
  2 19 petition to be posted in a conspicuous place on the building.
  2 20    5.  The city shall set forth in the petition all public
  2 21 nuisance conditions existing on the property, the fair market
  2 22 value of the property in the property's condition existing on
  2 23 the date the petition is filed as determined by an appraisal
  2 24 prepared for the city, the amount of delinquent property taxes
  2 25 or special assessments on the property, and evidence that the
  2 26 city has attempted to provide notice under subsection 2.  A
  2 27 copy of the appraisal shall be attached to the petition.
  2 28    6.  The city may request a hearing on the petition not
  2 29 sooner than sixty days after the filing of the petition.
  2 30 Notice of the hearing shall be provided to all respondents in
  2 31 the manner provided in subsection 4.  Notice of the hearing
  2 32 shall be given not less than thirty days prior to the date of
  2 33 the hearing.
  2 34    7.  In determining whether a property is a
  2 35 disaster=affected abandoned building, the court shall consider
  3  1 the following for each building that is located on the
  3  2 property and named in the petition and the building grounds:
  3  3    a.  Whether any property taxes or special assessments on
  3  4 the property were delinquent at the time the petition was
  3  5 filed.
  3  6    b.  Whether any utilities are currently being provided to
  3  7 the property.
  3  8    c.  Whether the building is unoccupied by the owner or
  3  9 lessees or licensees of the owner.
  3 10    d.  Whether the building meets the city's housing code for
  3 11 being fit for human habitation, occupancy, or use.
  3 12    e.  Whether the building is exposed to the elements such
  3 13 that deterioration of the building is occurring.
  3 14    f.  Whether the building is boarded up.
  3 15    g.  Past efforts to rehabilitate the building and grounds.
  3 16    h.  The presence of vermin, accumulation of debris, and
  3 17 uncut vegetation.
  3 18    i.  Other public nuisance conditions existing on the
  3 19 property.
  3 20    j.  Past and current compliance with orders of the local
  3 21 housing official.
  3 22    k.  Any other evidence the court deems relevant.
  3 23    8.  In lieu of the considerations in subsection 7, if the
  3 24 city can establish to the court's satisfaction that all
  3 25 parties with an interest in the property have received proper
  3 26 notice and consented to the entry of an order awarding title
  3 27 to the property to the city, the court shall enter judgment
  3 28 against the respondents granting the city title to the
  3 29 property.
  3 30    9.  If the court determines that the property is a
  3 31 disaster=affected abandoned building or that subsection 8
  3 32 applies, the court shall enter judgment awarding title to the
  3 33 city and shall determine an award of damages pursuant to
  3 34 subsection 10.  The title awarded to the city shall be free
  3 35 and clear of any claims, liens, or encumbrances held by the
  4  1 respondents.
  4  2    10.  a.  If the court awards title of the property to the
  4  3 city, the court shall award to the respondents the fair market
  4  4 value of the property and shall give consideration to the
  4  5 value of the property in its current condition.
  4  6    b.  The city may take possession of the property upon
  4  7 deposit of the amount awarded with the clerk of the district
  4  8 court.  Notice of the deposit with the clerk of the district
  4  9 court shall be provided to all respondents in the manner
  4 10 provided in subsection 4.  If the amount deposited with the
  4 11 clerk of the district court is not claimed within two years of
  4 12 the date of deposit, the clerk of the district court shall
  4 13 transfer the money to the city for deposit in the general fund
  4 14 of the city.
  4 15 SF 415
  4 16 md/sc/jh/26