April 4, 2003
ENGROSSED
HOUSE BILL No. 1378
_____
DIGEST OF HB 1378
(Updated April 3, 2003 11:55 AM - DI 106)
Citations Affected: IC 32-30; IC 36-1; IC 36-7; noncode.
Synopsis: Abandoned buildings. Grants neighborhood associations
standing to commence civil actions to promote compliance with
ordinances when permitted by the enforcing agency. Allows
neighborhood associations to acquire dwellings through urban
homesteading for rehabilitation and sale. Allows municipalities to
recover costs of bringing property into compliance with ordinances.
Allows a receiver in possession of property to sell the property.
Provides that an order issued by an enforcement authority under the
unsafe building law concerning repair and rehabilitation of an unsafe
building to bring it into compliance with certain required standards for
building condition or maintenance becomes final ten days after notice
is given unless a hearing is requested in writing by a person holding:
(1) a fee interest; (2) life estate interest; or (3) an equitable interest of
a contract purchaser in the unsafe premises. Provides for repair
alternatives for unsafe buildings in a receivership. Makes certain other
changes.
Effective: Upon passage; July 1, 2003.
Day
, Alderman
, Moses
, Porter
(SENATE SPONSORS _ SERVER, ROGERS)
January 14, 2003, read first time and referred to Committee on Local Government.
February 26, 2003, amended, reported _ Do Pass.
March 3, 2003, read second time, ordered engrossed. Engrossed.
March 4, 2003, read third time, passed. Yeas 96, nays 0.
SENATE ACTION
March 10, 2003, read first time and referred to Committee on Criminal, Civil and Public
Policy.
April 3, 2003, amended, reported favorably _ Do Pass.
April 4, 2003
First Regular Session 113th General Assembly (2003)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
this style type, and deletions will appear in
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in
this style type. Also, the
word
NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2002 Regular or Special Session of the General Assembly.
ENGROSSED
HOUSE BILL No. 1378
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 32-30-5-7; (03)EH1378.1.1. -->
SECTION 1. IC 32-30-5-7, AS ADDED BY P.L.2-2002, SECTION
15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2003]: Sec. 7. The receiver may, under control of the court or the
judge:
(1) bring and defend actions;
(2) take and keep possession of the property;
(3) receive rents; and
(4) collect debts; and
(5) sell property;
in the receiver's own name, and generally do other acts respecting the
property as the court or judge may authorize.
SOURCE: IC 36-1-6-2; (03)EH1378.1.2. -->
SECTION 2. IC 36-1-6-2, AS AMENDED BY P.L.50-2002,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 2. (a) If a condition violating an ordinance of a
municipal corporation exists on real property, officers of the municipal
corporation may enter onto that property and take appropriate action to
bring the property into compliance with the ordinance. However,
before action to bring compliance may be taken, all persons holding a
substantial interest in the property must be given a reasonable
opportunity of at least ten (10) days but not more than sixty (60)
days to bring the property into compliance. If action to bring
compliance is taken by the municipal corporation, the expense involved
may be made a lien against the property.
(b) If the violation described in subsection (a) is a violation that is
located outdoors and does not involve a building or structure, The
municipal corporation may also issue a bill to the owner of the real
property for the costs incurred by the municipal corporation in bringing
the property into compliance with the ordinance, including
administrative costs and removal costs.
(c) If the owner of the real property fails to pay a bill issued under
subsection (b), the municipal corporation may, after thirty (30) days,
certify to the county auditor the amount of the bill, plus any additional
administrative costs incurred in the certification. The auditor shall
place the total amount certified on the tax duplicate for the property
affected, and the total amount, including any accrued interest, shall be
collected as delinquent taxes are collected and shall be disbursed to the
general fund of the municipal corporation.
SOURCE: IC 36-7-9-2; (03)EH1378.1.3. -->
SECTION 3. IC 36-7-9-2 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 2. As used in this chapter:
"Community organization" means a citizen's group,
neighborhood association, neighborhood development corporation,
or similar organization that:
(1) has specific geographic boundaries defined in its bylaws or
articles of incorporation and contains at least forty (40)
households within those boundaries;
(2) is a nonprofit corporation that is representative of at least
twenty-five (25) households or twenty percent (20%) of the
households in the community, whichever is less;
(3) is operated primarily for the promotion of social welfare
and general neighborhood improvement and enhancement;
(4) has been incorporated for at least two (2) years; and
(5) is exempt from taxation under Section 501(c)(3) or
501(c)(4) of the Internal Revenue Code.
"Department" refers to the executive department authorized by
ordinance to administer this chapter. In a consolidated city, this
department is the department of metropolitan development, subject to
IC 36-3-4-23.
"Enforcement authority" refers to the chief administrative officer of
the department, except in a consolidated city. In a consolidated city, the
division of development services is the enforcement authority, subject
to IC 36-3-4-23.
"Hearing authority" refers to a person or persons designated as such
by the executive of a city or county, or by the legislative body of a
town. However, in a consolidated city, the director of the department
or a person designated by him is the hearing authority. An employee of
the enforcement authority may not be designated as the hearing
authority.
"Substantial property interest" means any right in real property that
may be affected in a substantial way by actions authorized by this
chapter, including a fee interest, a life estate interest, a future interest,
a present possessory interest, or an equitable interest of a contract
purchaser. In a consolidated city, the interest reflected by a deed, lease,
license, mortgage, land sale contract, or lien is not a substantial
property interest unless the deed, lease, license, mortgage, land sale
contract, lien, or evidence of it is:
(1) recorded in the office of the county recorder; or
(2) the subject of a written information that is received by the
division of development services and includes the name and
address of the holder of the interest described.
SOURCE: IC 36-7-9-5; (03)EH1378.1.4. -->
SECTION 4. IC 36-7-9-5 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 5. (a) The enforcement authority
may issue an order requiring action relative to any unsafe premises,
including:
(1) vacating of an unsafe building;
(2) sealing an unsafe building against intrusion by unauthorized
persons, in accordance with a uniform standard established by
ordinance;
(3) extermination of vermin in and about the unsafe premises;
(4) removal of trash, debris, or fire hazardous material in and
about the unsafe premises;
(5) repair or rehabilitation of an unsafe building to bring it into
compliance with standards for building condition or maintenance
required for human habitation, occupancy, or use by a statute, a
rule adopted under IC 4-22-2, or an ordinance;
(6) removal of part of an unsafe building;
(7) removal of an unsafe building; and
(8) requiring, for an unsafe building that will be sealed for a
period of more than ninety (90) days:
(A) sealing against intrusion by unauthorized persons and the
effects of weather;
(B) exterior improvements to make the building compatible in
appearance with other buildings in the area; and
(C) continuing maintenance and upkeep of the building and
premises;
in accordance with standards established by ordinance.
Notice of the order must be given under section 25 of this chapter. The
ordered action must be reasonably related to the condition of the unsafe
premises and the nature and use of nearby properties. The order
supersedes any permit relating to building or land use, whether that
permit is obtained before or after the order is issued.
(b) The order must contain:
(1) the name of the person to whom the order is issued;
(2) the legal description or address of the unsafe premises that are
the subject of the order;
(3) the action that the order requires;
(4) the period of time in which the action is required to be
accomplished, measured from the time when the notice of the
order is given;
(5) if a hearing is required, a statement indicating the exact time
and place of the hearing, and stating that person to whom the
order was issued is entitled to appear at the hearing with or
without legal counsel, present evidence, cross-examine opposing
witnesses, and present arguments;
(6) if a hearing is not required, a statement that an order under
subsection (a)(2), (a)(3), or (a)(4) , or (a)(5) becomes final ten
(10) days after notice is given, unless a hearing is requested in
writing by a person holding a fee interest, life estate interest, or
equitable interest of a contract purchaser in the unsafe premises,
and the request is delivered to the enforcement authority before
the end of the ten (10) day period;
(7) a statement briefly indicating what action can be taken by the
enforcement authority if the order is not complied with;
(8) a statement indicating the obligation created by section 27 of
this chapter relating to notification of subsequent interest holders
and the enforcement authority; and
(9) the name, address, and telephone number of the enforcement
authority.
(c) The order must allow a sufficient time, of at least ten (10) days,
but not more than sixty (60) days, from the time when notice of the
order is given, to accomplish the required action. If the order allows
more than thirty (30) days to accomplish the action, the order may
require that a substantial beginning be made in accomplishing the
action within thirty (30) days.
(d) The order expires two (2) years from the day the notice of the
order is given, unless one (1) or more of the following events occurs
within that two (2) year period:
(1) A complaint requesting judicial review is filed under section
9 of this chapter.
(2) A contract for action required by the order is let at public bid
under section 11 of this chapter.
(3) A civil action is filed under section 17 of this chapter.
SOURCE: IC 36-7-9-7; (03)EH1378.1.5. -->
SECTION 5. IC 36-7-9-7 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 7. (a) A hearing must be held
relative to each order of the enforcement authority, except for an order
issued under section 5(a)(2), 5(a)(3), or 5(a)(4), or 5(a)(5) of this
chapter. An order issued under section 5(a)(2), 5(a)(3), or 5(a)(4), or
5(a)(5) of this chapter becomes final ten (10) days after notice is given,
unless a hearing is requested before the ten (10) day period ends by a
person holding a fee interest, life estate interest, or equitable interest of
a contract purchaser in the unsafe premises. The hearing shall be
conducted by the hearing authority.
(b) The hearing shall be held on a business day no earlier than ten
(10) days after notice of the order is given. The hearing authority may,
however, take action at the hearing, or before the hearing if a written
request is received by the enforcement authority not later than five (5)
days after notice is given, to continue the hearing to a business day not
later than fourteen (14) days after the hearing date shown on the order.
Unless the hearing authority takes action to have the continued hearing
held on a definite, specified date, notice of the continued hearing must
be given to the person to whom the order was issued at least five (5)
days before the continued hearing date, in the manner prescribed by
section 25 of this chapter. If the order being considered at the
continued hearing was served by publication, it is sufficient to give
notice of the continued hearing by publication unless the enforcement
authority has received information in writing that enables it to make
service under section 25 of this chapter by a method other than
publication.
(c) The person to whom the order was issued, any person having a
substantial property interest in the unsafe premises that are the subject
of the order, or any other person with an interest in the proceedings
may appear in person or by counsel at the hearing. Each person
appearing at the hearing is entitled to present evidence, cross-examine
opposing witnesses, and present arguments.
(d) At the conclusion of any hearing at which a continuance is not
granted, the hearing authority may make findings and take action to:
(1) affirm the order;
(2) rescind the order; or
(3) modify the order, but unless the person to whom the order was
issued, or counsel for that person, is present at the hearing, the
hearing authority may modify the order in only a manner that
makes its terms less stringent.
In addition to affirming the order, in those cases in which the hearing
authority finds that there has been a willful failure to comply with the
order, the hearing authority may impose a civil penalty in an amount
not to exceed one five thousand dollars ($1,000) ($5,000). The
effective date of the civil penalty may be postponed for a reasonable
period, after which the hearing authority may order the civil penalty
reduced or stricken if the hearing authority is satisfied that all work
necessary to fully comply with the order has been done. For purposes
of an appeal under section 8 of this chapter or enforcement of an order
under section 17 of this chapter, action of the hearing authority is
considered final upon the affirmation of the order, even though the
hearing authority may retain jurisdiction for the ultimate determination
of a fine.
(e) If, at a hearing, a person to whom an order has been issued
requests an additional period to accomplish action required by the
order, and shows good cause for this request to be granted, the hearing
authority may grant the request. However, as a condition for allowing
the additional period, the hearing authority may require that the person
post a performance bond to be forfeited if the action required by the
order is not completed within the additional period.
(f) The board or commission having control over the department
shall, at a public hearing, after having given notice of the time and
place of the hearing by publication in accordance with IC 5-3-1, adopt
a schedule setting forth the maximum amount of performance bonds
applicable to various types of ordered action. The hearing authority
shall use this schedule to fix the amount of the performance bond
required under subsection (e).
(g) The record of the findings made and action taken by the hearing
authority at the hearing shall be available to the public upon request.
However, neither the enforcement authority nor the hearing authority
is required to give any person notice of the findings and action.
(h) A civil penalty under subsection (d) may be collected in the
same manner as costs under section 13 of this chapter. The amount of
the civil penalty that is collected shall be deposited in the unsafe
building fund.
SOURCE: IC 36-7-9-10; (03)EH1378.1.6. -->
SECTION 6. IC 36-7-9-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 10. (a) The
enforcement authority may cause the action required by an order issued
under section 5(a)(2), 5(a)(3), or 5(a)(4), or 5(a)(5) of this chapter to
be performed by a contractor if:
(1) the order has been served, in the manner prescribed by section
25 of this chapter, on each person having a fee interest, life estate
interest, or equitable interest of a contract purchaser in the unsafe
premises that are the subject of the order;
(2) the order has not been complied with;
(3) a hearing was not requested under section 5(b)(6) of this
chapter, or, if a hearing was requested, the order was affirmed at
the hearing; and
(4) the order is not being reviewed under section 8 of this chapter.
(b) The enforcement authority may cause the action required by an
order, other than an order under section 5(a)(2), 5(a)(3), or 5(a)(4), or
5(a)(5) of this chapter, to be performed if:
(1) service of an order, in the manner prescribed by section 25 of
this chapter, has been made on each person having a substantial
property interest in the unsafe premises that are the subject of the
order;
(2) the order has been affirmed or modified at the hearing in such
a manner that all persons having a substantial property interest in
the unsafe premises that are the subject of the order are currently
subject to an order requiring the accomplishment of substantially
identical action;
(3) the order, as affirmed or modified at the hearing, has not been
complied with; and
(4) the order is not being reviewed under section 8 of this chapter.
(c) If action is being taken under this section on the basis of an order
that was served by publication, it is sufficient to serve the statement by
publication and indicate that the enforcement authority intends to
perform the work, by publication, unless the authority has received
information in writing that enables it to make service under section 25
of this chapter by a method other than publication.
SOURCE: IC 36-7-9-17; (03)EH1378.1.7. -->
SECTION 7. IC 36-7-9-17 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 17. (a) The department,
acting through its enforcement authority, or a person designated by the
enforcement authority, or a community organization may bring a
civil action regarding unsafe premises in the circuit, superior, or
municipal court of the county. The department is not liable for the costs
of such an action. The court may grant one (1) or more of the kinds of
relief authorized by sections 18 through 22 of this chapter.
(b) A civil action may not be initiated under this section before
the final date of an order or an extension of an order under section
5(c) of this chapter requiring:
(1) the completion; or
(2) a substantial beginning toward accomplishing the
completion;
of the required remedial action.
(c) A community organization may not initiate a civil action
under this section if:
(1) the enforcement authority or a person designated by the
enforcement authority has filed a civil action under this
section regarding the unsafe premises; or
(2) the enforcement authority has issued a final order that the
required remedial action has been satisfactorily completed.
(d) A community organization may not initiate a civil action
under this section if the real property that is the subject of the civil
action is located outside the specific geographic boundaries of the
area defined in the bylaws or articles of incorporation of the
community organization.
(e) At least sixty (60) days before commencing a civil action
under this section, a community organization must issue a notice
by certified mail, return receipt requested, that:
(1) specifies:
(A) the nature of the alleged nuisance;
(B) the date the nuisance was first discovered;
(C) the location on the property where the nuisance is
allegedly occurring;
(D) the intent of the community organization to bring a
civil action under this section; and
(E) the relief sought in the action; and
(2) is provided to:
(A) the owner of record of the premises;
(B) tenants located on the premises;
(C) the enforcement authority; and
(D) any person that possesses an interest of record.
SOURCE: IC 36-7-9-20; (03)EH1378.1.8. -->
SECTION 8. IC 36-7-9-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 20. (a) A court acting
under section 17 of this chapter may appoint a receiver for the unsafe
premises, subject to the following conditions:
(1) The purpose of the receivership must be to take possession of
the unsafe premises for a period sufficient to accomplish and pay
for repairs and improvements.
(2) The receiver may be a not-for-profit nonprofit corporation the
primary purpose of which is the improvement of housing
conditions in the county where the unsafe premises are located, or
may be any other capable person residing in the county.
(3) Notwithstanding any prior assignments of the rents and other
income of the unsafe premises, the receiver must collect and use
that income to repair or remove the defects as required by the
order, and may, upon approval by the court, make repairs and
improvements in addition to those specified in the order or
required by applicable statutes, ordinances, codes, or regulations.
(4) The receiver may make any contracts and do all things
necessary to accomplish the repair and improvement of the unsafe
premises.
(5) A receiver that expends money, performs labor, or
furnishes materials or machinery, including the leasing of
equipment or tools, for the repair of an unsafe premises may
have a lien that is equal to the total expended. When a lien
exists, the receiver may sell the property:
(A) to the highest bidder at auction under the same notice
and sale provisions applicable to a foreclosure sale of
mechanic's liens or mortgages; or
(B) for fair market value if all persons having a substantial
property interest in the unsafe premises agree to the
amount and procedure.
The transferee in either a public or private sale must first
demonstrate the necessary ability and experience to
rehabilitate the premises within a reasonable time to the
satisfaction of the receiver.
(6) The court may, after a hearing, authorize the receiver to obtain
money needed to accomplish the repairs and improvement by the
issuance and sale of notes or receiver's certificates to the receiver
or any other person or party bearing interest fixed by the court.
The notes or certificates are a first lien on the unsafe premises and
the rents and income of the unsafe building. This lien is superior
to all other assignments of rents, liens, mortgages, or other
encumbrances on the property, except taxes, if, within sixty (60)
days following the sale or transfer for value of the notes by the
receiver, the holder of the notes files a notice containing the
following information in the county recorder's office:
(A) The legal description of the tract of real property on which
the unsafe building is located.
(B) The face amount and interest rate of the note or certificate.
(C) The date when the note or certificate was sold or
transferred by the receiver.
(D) The date of maturity.
(6) (7) Upon payment to the holder of a receiver's note or
certificate of the face amount and interest, and upon filing in the
recorder's office of a sworn statement of payment, the lien of that
note or certificate is released. Upon a default in payment on a
receiver's note or certificate, the lien may be enforced by
proceedings to foreclose in the manner prescribed for mechanic's
liens or mortgages. However, the foreclosure proceedings must be
commenced within two (2) years after the date of default.
(7) (8) The receiver is entitled to the same fees, commissions, and
necessary expenses as receivers in actions to foreclose mortgages.
The fees, commissions, and expenses shall be paid out of the rents
and incomes of the property in receivership.
(b) The issuance of an order concerning unsafe premises is not a
prerequisite to the appointment of a receiver nor does such an order
prevent the appointment of a receiver.
(c) If the enforcement authority or the enforcement authority's
designee requests the appointment of a receiver, all persons having a
substantial property interest in the unsafe premises shall be made party
defendants.
(d) A court, when granting powers and duties to a receiver, shall
consider:
(1) the occupancy of the unsafe premises;
(2) the overall condition of the property;
(3) the hazard to public health, safety, and welfare;
(4) the number of persons having a substantial property
interest in the unsafe premises; and
(5) other factors the court considers relevant.
(e) Instead of appointing a receiver to sell or rehabilitate an
unsafe premises, the court may permit an owner, a mortgagee, or
a person with substantial interest in the unsafe premises to
rehabilitate the premises if the owner, mortgagee, or person with
substantial interest:
(1) demonstrates ability to complete the rehabilitation within
a reasonable time, but not to exceed sixty (60) days;
(2) agrees to comply within a specified schedule for
rehabilitation; and
(3) posts a bond as security for performance of the required
work in compliance with the specified schedule in subdivision
(2).
SOURCE: IC 36-7-9-26; (03)EH1378.1.9. -->
SECTION 9. IC 36-7-9-26 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 26. (a) The
enforcement authority shall record in the office of the county recorder
orders issued under section 5 5(a)(6), 5(a)(7), or 6(a) of this chapter .
If the enforcement authority records an order issued under section
5(a)(6), 5(a)(7), or 6(a) of this chapter, statements of rescission
issued under section 6(b) of this chapter, statements that public bids are
to be let under section 11 of this chapter, and records of action in which
an the order is affirmed, modified, or rescinded taken by the hearing
authority under section 7 of this chapter shall be recorded. The
recorder shall charge the fee required under IC 36-2-7-10 for recording
these items.
(b) A person who takes an interest in unsafe premises that are the
subject of an a recorded order takes that interest, whether or not a
hearing has been held, subject to the terms of the order and other
documents recorded under subsection (a) and in such a manner that
all of the requirements of sections 10, 11, and 17 through 22 of this
chapter relating to the issuance of orders, service of orders and
affirmation of orders are considered satisfied. If a hearing has been
held, the interest is taken subject to the terms of the order as modified
at the hearing, in other documents recorded under subsection(a),
and in such a manner that all of the requirements of sections 10, 11,
and 17 through 22 of this chapter relating to the issuance of orders,
service of orders, and modification of orders at hearing are considered
satisfied.
(c) A person who takes an interest in unsafe premises that are the
subject of a recorded statement that public bids are to be let takes the
interest subject to the terms of the statement and in such a manner that
the notice of the statement required by section 11 of this chapter is
considered given to the person.
SOURCE: IC 36-7-15.1-12; (03)EH1378.1.10. -->
SECTION 10. IC 36-7-15.1-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 12. (a) If no appeal is
taken, or if an appeal is taken but is unsuccessful, the commission shall
proceed with the proposed project, to the extent that money is available
for that purpose.
(b) The commission shall first approve and adopt a list of the real
property and interests in real property to be acquired, and the price to
be offered to the owner of each parcel or interests. The prices to be
offered may not exceed the average of two (2) independent appraisals
of fair market value procured by the commission, except that appraisals
are not required in transactions with other governmental agencies.
However, if the real property is less than five (5) acres in size and the
fair market value of the real property or interest has been appraised by
one (1) independent appraiser at less than ten thousand dollars
($10,000), the second appraisal may be made by a qualified employee
of the department. The prices indicated on the list may not be exceeded
unless specifically authorized by the commission under section 7 of
this chapter or ordered by a court in condemnation proceedings. The
commission may except from acquisition any real property in the area
if it finds that such an acquisition is not necessary under the
redevelopment plan. Appraisals made under this section are for the
information of the commission and are not open for public inspection.
(c) Negotiations for the purchase of property may be carried on
directly by the commission, by its employees, or by expert negotiators
employed for that purpose. The commission shall adopt a standard
form of option for use in negotiations, but no option, contract, or
understanding relative to the purchase of real property is binding on the
commission until approved and accepted by the commission in writing.
The commission may authorize the payment of a nominal fee to bind
an option, and as a part of the consideration for conveyance may agree
to pay the expense incident to the conveyance and determination of the
title of the property. Payment for the property purchased shall be made
when and as directed by the commission, but only on delivery of proper
instruments conveying the title or interest of the owner to "City of
__________ for the use and benefit of its Department of Metropolitan
Development".
(d) Notwithstanding subsections (a) through (c), the commission
may, before the time referred to in this section, accept gifts of property
needed for the redevelopment of blighted, deteriorated, or deteriorating
areas. The commission may, before the time referred to in this section,
take options on or contract for the acquisition of property needed for
the redevelopment of blighted, deteriorated, or deteriorating areas if the
options and contracts are not binding on the commission or the
redevelopment district until the time referred to in this section and until
money is available to pay the consideration set out in the options or
contracts.
(e) Section 15(a) through 15(h) of this chapter does not apply to
exchanges of real property (or interests in real property) in connection
with the acquisition of real property (or interests in real property) under
this section. In acquiring real property (or interests in real property)
under this section the commission may, as an alternative to offering
payment of money as specified in subsection (b), offer for the real
property (or interest in real property) that the commission desires to
acquire:
(1) exchange of real property or interests in real property owned
by the redevelopment district;
(2) exchange of real property or interests in real property owned
by the redevelopment district, along with the payment of money
by the commission; or
(3) exchange of real property or interests in real property owned
by the redevelopment district along with the payment of money by
the owner of the real property or interests in real property that the
commission desires to acquire.
The commission shall have the fair market value of the real property or
interests in real property owned by the redevelopment district appraised
as specified in section 15(b) of this chapter. The appraisers may not
also appraise the value of the real property or interests in real property
to be acquired by the redevelopment district. The commission shall
establish the nature of the offer to the owner based on the difference
between the average of the two (2) appraisals of the fair market value
of the real property or interests in real property to be acquired by the
commission and the average of the appraisals of fair market value of
the real property or interests in real property to be exchanged by the
commission.
SOURCE: IC 36-7-15.1-15.1; (03)EH1378.1.11. -->
SECTION 11. IC 36-7-15.1-15.1, AS AMENDED BY P.L.86-1999,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 15.1. (a) As used in this section, "qualifying
corporation" refers to a nonprofit corporation or neighborhood
development corporation that meets the requirements of subsection
(b)(1) and the criteria established by the county fiscal body under
subsection (i).
(b) The commission may sell or grant at no cost title to real property
to a nonprofit corporation or neighborhood development corporation
for the purpose of providing low or moderate income housing or other
development that will benefit or serve low or moderate income families
if the following requirements are met:
(1) The nonprofit corporation or neighborhood development
corporation has, as a major corporate purpose and function, the
provision of housing for low and moderate income families within
the geographic area in which the parcel of property is located.
(2) The qualifying corporation agrees to cause development that
will serve or benefit low or moderate income families on the
parcel of property within a specified period, which may not
exceed five (5) years from the date of the sale or grant.
(3) The qualifying corporation, if the qualifying corporation is a
neighborhood development corporation, agrees that the qualifying
corporation and each applicant, recipient, contractor, or
subcontractor undertaking work in connection with the real
property will:
(A) use lower income project area residents as trainees and as
employees; and
(B) contract for work with business concerns located in the
project area or owned in substantial part by persons residing
in the project area;
to the greatest extent feasible, as determined under the standards
specified in 24 CFR 135.
(4) The county fiscal body has determined that the corporation
meets the criteria established under subsection (i).
(5) The qualifying corporation agrees to rehabilitate or otherwise
develop the property in a manner that is similar to and consistent
with the use of the other properties in the area served by the
qualifying corporation.
(c) To carry out the purposes of this section, the commission may
secure from the county under IC 6-1.1-25-9(e) parcels of property
acquired by the county under IC 6-1.1-24 and IC 6-1.1-25.
(d) Before offering any parcel of property for sale or grant, the fair
market value of the parcel of property must be determined. by an
appraiser, who may be an The fair market value may be determined
by an appraisal made by a qualified employee of the department.
However, if the qualified employee of the department determines
that:
(1) the property:
(A) is less than five (5) acres in size; and
(B) has a fair market value that is less than ten thousand
dollars ($10,000); or
(2) if the commission has obtained the parcel in the manner
described in subsection (c);
an appraisal is not required. An appraisal under this subsection is solely
for the information of the commission and is not available for public
inspection.
(e) The commission must decide whether the commission will sell
or grant the parcel of real property at a public meeting. In making this
decision, the commission shall give substantial weight to the extent to
which and the terms under which the qualifying corporation will cause
development to serve or benefit families of low or moderate income. If
more than one (1) qualifying corporation is interested in acquiring a
parcel of real property, the commission shall conduct a hearing at
which a representative of each corporation may state the reasons why
the commission should sell or grant the parcel to that corporation.
(f) Before conducting a hearing under subsection (e), the
commission shall publish a notice in accordance with IC 5-3-1
indicating that at a designated time the commission will consider
selling or granting the parcel of real property under this section. The
notice must state the general location of the property, including the
street address if any, or a common description of the property other
than the legal description.
(g) If the county agrees to transfer a parcel of real property to the
commission to be sold or granted under this section, the commission
may conduct a hearing to sell or grant the parcel to a qualifying
corporation even though the parcel has not yet been transferred to the
commission. After the hearing, the commission may adopt a resolution
directing the department to take appropriate steps necessary to acquire
the parcel from the county and to transfer the parcel to the qualifying
corporation.
(h) A conveyance of property to a qualifying corporation under this
section shall be made in accordance with section 15(i) of this chapter.
(i) The county fiscal body shall establish criteria for determining the
eligibility of nonprofit corporations and neighborhood development
corporations for sales or grants of real property under this section. A
nonprofit corporation or neighborhood development corporation may
apply to the county fiscal body for a determination concerning the
corporation's compliance with the criteria established under this
subsection.
SOURCE: IC 36-7-17-2; (03)EH1378.1.12. -->
SECTION 12. IC 36-7-17-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 2. The fiscal body of a
unit may by ordinance designate an agency or quasi-public corporation,
or establish a new agency, to administer an urban homesteading
program under which family dwellings for one (1) through four (4)
families may be conveyed to individuals or families, who must occupy
and rehabilitate the dwellings, and community organizations that
must rehabilitate the dwellings and offer them for sale.
SOURCE: IC 36-7-17-5; (03)EH1378.1.13. -->
SECTION 13. IC 36-7-17-5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 5. (a) A person or
community organization may apply for the program by completing a
bid application.
(b) The following An applicant is applicants are qualified and
shall be approved to receive real property offered under this chapter:
if he:
(1) A person who:
(A) is at least eighteen (18) years of age;
(2) (B) possesses the financial resources to support a loan, the
necessary skills to rehabilitate the property, or a combination
of both; and
(3) (C) has, including immediate family, not previously
participated in the program.
(2) A community organization as described in IC 36-7-9-2.
(c) Approved applicants are entitled to receive a list of all properties
owned by the unit that are available under this chapter.
(d) Approved applicants may apply for each dwelling in which they
are interested. A drawing shall be held to determine those persons
applicants receiving the dwellings. Persons applying under this
chapter shall receive priority over community organizations if
both indicate an interest in the same dwelling. Each approved
applicant person and his or her immediate family may receive only
one (1) dwelling in the drawing. Each approved community
organization may receive as many dwellings as the agency
considers proper.
SOURCE: IC 36-7-17-6; (03)EH1378.1.14. -->
SECTION 14. IC 36-7-17-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 6. The conveyance of
a dwelling to an applicant under this chapter shall be made in return for
a fee of one dollar ($1) or more and the execution by the applicant of
an agreement with the following minimum conditions:
(1) The applicant must:
(A) if a person, reside in the dwelling as his the person's
principal place of residence for a period of not less than three
(3) years; or
(B) if a community organization, agree to list the dwelling
for sale within twelve (12) months after possession.
(2) The applicant must bring the residence up to a minimum code
standard, including building, plumbing, electrical, and fire code
standards, within twelve (12) months after possession, or before
possession if required under subdivision (4).
(3) The applicant must carry fire and liability insurance on the
dwelling at all times.
(4) The applicant must comply with any additional terms,
conditions, and requirements that the agency may impose to
assure that the purposes of this chapter are carried out. This may
include the requirement that the dwelling be rehabilitated to
minimum building code standards before possession.
SOURCE: IC 36-7-17-7; (03)EH1378.1.15. -->
SECTION 15. IC 36-7-17-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 7. (a) The agency shall
convey the real property acquired for the purposes of this chapter to
those persons or community organizations qualified under section 6
of this chapter by using the methods prescribed by subsection (b), or
subsection (c), or (d).
(b) The real property may be conveyed by a conditional sales
contract, with title to remain in the agency for a period of at least one
(1) year.
(c) The title to real property may be conveyed to the purchaser a
person purchasing the property as a determinable fee, with the
language of the granting clause in the deed of conveyance to include
the language "The property is conveyed on the conditions that the
purchaser:
(1) will reside in the dwelling as his principal place of residence
for a period of not less than three (3) years;
(2) will bring the residence up to minimum code standards in
twelve (12) months;
(3) will carry adequate fire and liability insurance on the dwelling
at all times; and
(4) will comply with such additional terms, conditions, and
requirements as the agency requires before __________ (date of
the deed) under IC 36-7-17".
(d) The title to real property may be conveyed to a community
organization purchasing the property as a determinable fee, with
the language of the granting clause in the deed of conveyance to
include the language: "The property is conveyed on the conditions
that the purchaser:
(1) will list the property for sale within twelve (12) months of
taking possession;
(2) will bring the residence up to minimum code standards in
twelve (12) months;
(3) will carry adequate fire and liability insurance on the
dwelling at all times; and
(4) will comply with any additional terms, conditions, and
requirements as the agency requires before __________ (date
of the deed) under IC 36-7-17.".
SOURCE: IC 36-7-17-9; (03)EH1378.1.16. -->
SECTION 16. IC 36-7-17-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9.
(a) When, after
the
purchaser purchase, a person has resided in the dwelling for the
required three (3) year period, brought the property into compliance
with the required code standards, and otherwise complied with the
terms of
his the person's agreement, the agency shall convey to
him
the person a fee simple title to the property.
(b) When, after purchase, a community organization has
brought the property into compliance with the required code
standards, documented its intent to list the property for sale, and
otherwise complied with the terms of its agreement, the agency
shall convey to it a fee simple title to the property.
SOURCE: ; (03)EH1378.1.17. -->
SECTION 17. [EFFECTIVE UPON PASSAGE] (a)
Notwithstanding IC 36-1-6 and IC 36-7-9, a municipal corporation
under IC 36-1-6-2, as amended by this act, and an enforcement
authority under IC 36-7-9-2, as amended by this act, may establish
and maintain a registry of properties within its jurisdiction known
to be:
(1) in a condition that violates local ordinances; and
(2) eligible for enforcement procedures under IC 36-1-6-2 and
IC 36-7-9-5, both as amended by this act.
(b) The information in the registry shall be made available to
the public under IC 5-14-3 for inspection and copying during
ordinary business hours.
(c) The owners of property recorded in the registry shall
provide:
(1) either:
(A) their mailing address; or
(B) the name and mailing address of their agent;
for the purpose of service of process; and
(2) the name and address of the insurance carrier providing
insurance coverage on the property.
(d) The registered owner of the property must notify the
enforcement authority of a change in ownership.
(e) Beginning July 1, 2003, new enforcement activities made
possible under IC 36-1-6 or IC 36-7-9 by the amendments in this
act may not be initiated by a municipal corporation or enforcement
authority that affect a property recorded in a registry until
October 1, 2003.
(f) This SECTION expires on October 1, 2003.
SOURCE: ; (03)EH1378.1.18. -->
SECTION 18. [EFFECTIVE UPON PASSAGE] This act does not
affect:
(1) rights or liabilities accrued;
(2) penalties incurred;
(3) crimes committed; or
(4) proceedings begun;
before the effective date of this act. Those rights, liabilities,
penalties, crimes, and proceedings continue and shall be imposed
and enforced under prior law as if this act had not been enacted.
SOURCE: ; (03)EH1378.1.19. -->
SECTION 19.
An emergency is declared for this act.