HF 1394

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:50am

A bill for an act
relating to real property; specifying notice requirements; modifying provisions
governing the reduced redemption period for abandoned property; establishing
a duty to protect vacant foreclosed property under certain circumstances;
providing for the imposition of fines for failure to maintain property; altering the
posting requirement for trespassing on construction sites; modifying provisions
governing public nuisances; imposing civil and criminal penalties; amending
Minnesota Statutes 2008, sections 463.251, subdivision 2; 580.04; 582.031;
582.032, subdivision 2, by adding a subdivision; 609.605, subdivision 1; 617.80,
subdivision 7, by adding a subdivision; 617.81, subdivisions 2, 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 463.251, subdivision 2, is amended to read:

Subd. 2.

Order; notice.

If in any city a building becomes vacant or unoccupied
and is deemed hazardous due to the fact that the building is open to trespass and has not
been secured and the building could be made safe by securing the building, the governing
body may order the building secured and shall cause notice of the order to be served upon
the owner of record of the premises or the owner's agent deleted text begin , the taxpayer identified in the
property tax records for that parcel, the holder of the mortgage or sheriff's certificate, and
any neighborhood association for the neighborhood in which the building is located that
has requested notice, deleted text end by delivering or mailing a copy to deleted text begin the owner or agent, the identified
taxpayer, the holder of the mortgage or sheriff's certificate, and the neighborhood
association, at deleted text end the last known address. Service by mail is complete upon mailing.

Sec. 2.

Minnesota Statutes 2008, section 580.04, is amended to read:

580.04 REQUISITES OF NOTICE.

Each notice shall specify new text begin or contain new text end :

(1) the name of the mortgagor, the mortgagee, each assignee of the mortgage, if any,
and the original or maximum principal amount secured by the mortgage;

(2) the date of the mortgage, and when and where recorded, except where the
mortgage is upon registered land, in which case the notice shall state that fact, and when
and where registered;

(3) the amount claimed to be due on the mortgage on the date of the notice;

(4) a description of the mortgaged premises, conforming substantially to that
contained in the mortgage new text begin , and the commonly used street address of the mortgaged
premises new text end ;

(5) the time and place of sale;

(6) the time allowed by law for redemption by the mortgagor, the mortgagor's
personal representatives or assigns; and

(7) deleted text begin if the party foreclosing the mortgage desires to preserve the right to reduce the
redemption period under section 582.032 after the first publication of the notice, the
notice must also state deleted text end new text begin the following statement new text end in capital letters: "THE TIME ALLOWED
BY LAW FOR REDEMPTION BY THE MORTGAGOR, THE MORTGAGOR'S
PERSONAL REPRESENTATIVES OR ASSIGNS, MAY BE REDUCED TO FIVE
WEEKS IF A JUDICIAL ORDER IS ENTERED UNDER MINNESOTA STATUTES,
SECTION 582.032, DETERMINING, AMONG OTHER THINGS, THAT THE
MORTGAGED PREMISES ARE IMPROVED WITH A RESIDENTIAL DWELLING
OF LESS THAN FIVE UNITS, ARE NOT PROPERTY USED IN AGRICULTURAL
PRODUCTION, AND ARE ABANDONED."

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2009, and applies to
notices of sale first published on or after that date.
new text end

Sec. 3.

Minnesota Statutes 2008, section 582.031, is amended to read:

582.031 LIMITED RIGHT OF ENTRY new text begin ; DUTY TO ENTER AND PROTECT
PREMISES new text end .

Subdivision 1.

Right of entry.

new text begin (a) new text end If premises described in a mortgage or sheriff's
certificate are vacant or unoccupied, the holder of the mortgage or sheriff's certificate or
the holder's agents and contractors may, but is under no obligation to, enter upon the
premises to protect the premises from waste new text begin and trespass new text end , until the holder of the mortgage
or sheriff's certificate receives notice that the premises are occupied. The holder of the
mortgage or sheriff's certificate does not become a mortgagee in possession by taking
actions authorized new text begin or required new text end under this section. An affidavit of the sheriff, new text begin the licensing,
regulatory, or inspection authority of a municipality in which the property is located, new text end the
holder of the mortgage or sheriff's certificate, or a person acting on behalf of the holder,
describing the premises and stating that the same are vacant or unoccupied, is prima facie
evidence of the facts stated in the affidavit and is entitled to be recorded in the office of the
county recorder or the registrar of titles in the county where the premises are located, if it
contains a legal description of the premises.

new text begin (b) The holder of the mortgage or sheriff's certificate shall enter the premises and
take the actions authorized under subdivision 2, to the extent reasonably necessary to
protect the premises, if the holder knows or has reason to know that there is prima facie
evidence of abandonment of the property as described in section 582.032, subdivision 7,
clauses (1) to (6).
new text end

Subd. 2.

Authorized actions.

The holder of the mortgage or sheriff's certificate may
take the following actions to protect the premises from waste new text begin , trespass, new text end or from falling
below minimum community standards for public safety and sanitation: make reasonable
periodic inspections, install or change locks on doors and windows, board windows,
new text begin doors, and other openings, new text end install new text begin and operate new text end an alarm system, and otherwise prevent or
minimize damage to the premises from the elements, vandalism, trespass, or other illegal
activities. If the holder of the mortgage or sheriff's certificate installs or changes locks
under this section, a key to the premises must be promptly delivered to the mortgagor or
any person lawfully claiming through the mortgagor, upon request.

Subd. 3.

Costs.

All costs incurred by the holder of the mortgage new text begin or sheriff's
certificate new text end to protect the premises from waste new text begin or trespass new text end or from falling below minimum
community standards for public safety and sanitation may be added to the principal
balance of the mortgage new text begin or the costs allowable upon redemption new text end . The costs may bear
interest to the extent provided in the mortgage and may be added to the redemption price
if the costs are incurred after a foreclosure sale. If the costs are incurred after a foreclosure
sale, the holder of any sheriff's certificate of sale or certificate of redemption must comply
with the provisions of section 582.03. The provisions of this section are in addition to, and
do not limit or replace, any other rights or remedies available to holders of mortgages and
sheriff's certificates, at law or under the applicable mortgage agreements.

Sec. 4.

Minnesota Statutes 2008, section 582.032, subdivision 2, is amended to read:

Subd. 2.

Before foreclosure sale.

Notwithstanding section 580.23 or 581.10, if at
any time before the foreclosure sale but not more than 30 days before the first publication
of the notice of sale, a court order is entered reducing the mortgagor's redemption period to
five weeks under subdivision 7, after the mortgaged premises have been sold as provided in
chapter 580 or 581, the mortgagor, and the mortgagor's personal representatives or assigns,
within five weeks after the sale under chapter 580, or within five weeks after the date of
the order confirming the sale under chapter 581, may redeem the mortgaged premises as
provided in section 580.23, subdivision 1, or 581.10, as applicable. deleted text begin If an order is obtained
after the first publication of the notice of sale, the five-week redemption period applies
only if the notice of sale contained the statement required by section 580.04, clause (7). deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2009, and applies to
foreclosures for which the notice of sale is first published on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2008, section 582.032, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Initiation of reduced redemption period by municipality. new text end

new text begin (a) The
municipality in which mortgaged premises are located may obtain a court order requiring
the party foreclosing a mortgage, the plaintiff in a foreclosure by action, or the holder of
the sheriff's certificate of sale to initiate a proceeding or make a motion to reduce the
mortgagor's redemption period under this section if the municipality determines that there
is prima facie evidence of abandonment as described in subdivision 7.
new text end

new text begin (b) The municipality may proceed under this subdivision by bringing a petition for
relief that includes the commonly used street address of the mortgaged premises and the
evidence of abandonment and names the party to whom the order is to be directed. In a
foreclosure by action, the municipality may intervene in the action by bringing a motion
for the requested relief. The petition or motion must include a notice that if the petition or
motion is not contested and a hearing requested within ten days of service of the petition
or motion on all parties, the requested relief will be granted and the party to whom the
order is directed will be required to proceed under this section for an order to reduce the
redemption period.
new text end

new text begin (c) If a hearing on the petition or motion is not requested within ten days of service
on all parties, the court shall issue an ex parte order granting the requested relief. If a
hearing is requested, the court shall grant the requested relief unless the court finds that
there is not evidence of abandonment or the responding party establishes good cause
for not proceeding under this section to reduce the redemption period. In determining
whether there is good cause, the court shall consider efforts by the responding party to
enter and protect the mortgaged premises under section 582.031, to maintain the property
as required under section 582.031, and the impact that the condition of the property has on
public health or safety and the value of surrounding properties.
new text end

Sec. 6.

Minnesota Statutes 2008, section 609.605, subdivision 1, is amended to read:

Subdivision 1.

Misdemeanor.

(a) The following terms have the meanings given
them for purposes of this section.

(1) "Premises" means real property and any appurtenant building or structure.

(2) "Dwelling" means the building or part of a building used by an individual as a
place of residence on either a full-time or a part-time basis. A dwelling may be part of a
multidwelling or multipurpose building, or a manufactured home as defined in section
168.002, subdivision 16.

(3) "Construction site" means the site of the construction, alteration, painting, or
repair of a building or structure.

(4) "Owner or lawful possessor," as used in paragraph (b), clause (9), means the
person on whose behalf a building or dwelling is being constructed, altered, painted, or
repaired and the general contractor or subcontractor engaged in that work.

(5) "Posted," as used:

(i) new text begin in paragraph (b), clause (4), means the placement of a sign at least 8-1/2 inches
by 11 inches in a conspicuous place on the exterior of the building, or in a conspicuous
place within the property on which the building is located. The sign must carry a general
notice warning against trespass;
new text end

new text begin (ii) new text end in paragraph (b), clause (9), means the placement of a sign at least new text begin 8-1/2 inches
by new text end 11 inches deleted text begin square deleted text end in a conspicuous place on the exterior of the building that is under
construction, alteration, or repair, deleted text begin and additional signs in at least two conspicuous places
for each ten acres being protected. deleted text end new text begin or in a conspicuous place within the area being
protected. If the area being protected is less than three acres, one additional sign must
be conspicuously placed within that area. If the area being protected is three acres but
less than ten acres, two additional signs must be conspicuously placed within that area.
For each additional full ten acres of area being protected beyond the first ten acres of
area, two additional signs must be conspicuously placed within the area being protected. new text end
The sign must carry deleted text begin an appropriate deleted text end new text begin a general new text end notice deleted text begin and the name of the person giving
the notice, followed by the word "owner" if the person giving the notice is the holder of
legal title to the land on which the construction site is located or by the word "occupant"
if the person giving the notice is not the holder of legal title but is a lawful occupant
of the land deleted text end new text begin warning against trespass new text end ; and

deleted text begin (ii) deleted text end new text begin (iii) new text end in paragraph (b), clause (10), means the placement of signs that:

(A) deleted text begin state "no trespassing" or similar terms deleted text end new text begin carry a general notice warning against
trespass new text end ;

(B) display letters at least two inches high;

(C) state that Minnesota law prohibits trespassing on the property; and

(D) are posted in a conspicuous place and at intervals of 500 feet or less.

(6) "Business licensee," as used in paragraph (b), clause (9), includes a representative
of a building trades labor or management organization.

(7) "Building" has the meaning given in section 609.581, subdivision 2.

(b) A person is guilty of a misdemeanor if the person intentionally:

(1) permits domestic animals or fowls under the actor's control to go on the land
of another within a city;

(2) interferes unlawfully with a monument, sign, or pointer erected or marked to
designate a point of a boundary, line or a political subdivision, or of a tract of land;

(3) trespasses on the premises of another and, without claim of right, refuses to
depart from the premises on demand of the lawful possessor;

(4) occupies or enters the dwelling or locked or posted building of another, without
claim of right or consent of the owner or the consent of one who has the right to give
consent, except in an emergency situation;

(5) enters the premises of another with intent to take or injure any fruit, fruit trees, or
vegetables growing on the premises, without the permission of the owner or occupant;

(6) enters or is found on the premises of a public or private cemetery without
authorization during hours the cemetery is posted as closed to the public;

(7) returns to the property of another with the intent to abuse, disturb, or cause
distress in or threaten another, after being told to leave the property and not to return, if the
actor is without claim of right to the property or consent of one with authority to consent;

(8) returns to the property of another within one year after being told to leave the
property and not to return, if the actor is without claim of right to the property or consent
of one with authority to consent;

(9) enters the locked or posted construction site of another without the consent of the
owner or lawful possessor, unless the person is a business licensee; or

(10) enters the locked or posted aggregate mining site of another without the consent
of the owner or lawful possessor, unless the person is a business licensee.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2009, and applies to crimes
committed on or after that date.
new text end

Sec. 7.

Minnesota Statutes 2008, section 617.80, subdivision 7, is amended to read:

Subd. 7.

Owner.

"Owner," for purposes of sections 617.80 to 617.87, means deleted text begin the
person in whose name the building or affected portion is recorded with the county auditor
for taxation purposes. deleted text end new text begin a person having legal title to the premises, a mortgagee or vendee in
possession, a trustee in bankruptcy, a receiver, or any other person having legal ownership
or control of the premises. new text end

Sec. 8.

Minnesota Statutes 2008, section 617.80, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Possessor. new text end

new text begin "Possessor" means a person who occupies or resides in a
building or rental unit with the permission of the owner or a tenant or lessee.
new text end

Sec. 9.

Minnesota Statutes 2008, section 617.81, subdivision 2, is amended to read:

Subd. 2.

Acts constituting a nuisance.

(a) For purposes of sections 617.80 to
617.87, a public nuisance exists (1) upon proof of one or more separate behavioral
incidents described in item (i), (v), deleted text begin or deleted text end (viii), new text begin or (ix), new text end or (2) upon proof of two or more
separate behavioral incidents described in item (ii), (iii), (iv), (vi), (vii), or deleted text begin (ix) deleted text end new text begin (x) new text end ,
committed within the previous 12 months within the building:

(i) prostitution or prostitution-related activity committed within the building;

(ii) gambling or gambling-related activity committed within the building;

(iii) maintaining a public nuisance in violation of section 609.74, clause (1) or (3);

(iv) permitting a public nuisance in violation of section 609.745;

(v) unlawful sale, possession, storage, delivery, giving, manufacture, cultivation, or
use of controlled substances committed within the building;

(vi) unlicensed sales of alcoholic beverages committed within the building in
violation of section 340A.401;

(vii) unlawful sales or gifts of alcoholic beverages by an unlicensed person
committed within the building in violation of section 340A.503, subdivision 2, clause (1);

new text begin new text end

(viii) new text begin unlawful sales or gifts of alcoholic beverages committed within the building
in violation of section 340A.401 or 340A.503, subdivision 2, clause (1), if multiple
violations occur during the same behavioral incident when the building is not occupied by
the owner or a tenant, lessee, or possessor;
new text end

new text begin (ix) new text end unlawful use or possession of a dangerous weapon as defined in section 609.02,
subdivision 6, committed within the building; or

deleted text begin (ix) deleted text end new text begin (x) new text end violation by a commercial enterprise of local or state business licensing
regulations, ordinances, or statutes prohibiting the maintenance of a public nuisance as
defined in section 609.74 or the control of a public nuisance as defined in section 609.745.

(b) If the building contains more than one rental unit, two or more behavioral
incidents must consist of conduct:

(1) anywhere in the building by the same tenant deleted text begin or deleted text end new text begin , new text end lessee new text begin , possessor new text end , or persons
acting in conjunction with or under the control of the same tenant deleted text begin or deleted text end new text begin , new text end lessee new text begin , or possessor new text end ;

(2) by any persons within the same rental unit while occupied by the same tenant
deleted text begin or deleted text end new text begin , new text end lessee new text begin , or possessor, new text end or within two or more rental units while occupied by the same
tenant deleted text begin or deleted text end new text begin , new text end lessee new text begin , or possessor new text end ; or

(3) by the owner of the building or persons acting in conjunction with or under
the control of the owner.

(c) Proof of a nuisance exists if each of the elements of the conduct constituting the
nuisance is established by clear and convincing evidence.

Sec. 10.

Minnesota Statutes 2008, section 617.81, subdivision 4, is amended to read:

Subd. 4.

Notice.

(a) If a prosecuting attorney has reason to believe that a nuisance is
maintained or permitted in the jurisdiction the prosecuting attorney serves, and intends to
seek abatement of the nuisance, the prosecuting attorney shall provide the written notice
described in paragraph (b), by personal service or certified mail, return receipt requested,
to deleted text begin the owner deleted text end new text begin all owners new text end and deleted text begin all deleted text end interested parties known to the prosecuting attorney.

(b) The written notice must:

(1) state that a nuisance as defined in subdivision 2 is maintained or permitted in the
building and must specify the kind or kinds of nuisance being maintained or permitted;

(2) summarize the evidence that a nuisance is maintained or permitted in the
building, including the date or dates on which nuisance-related activity or activities are
alleged to have occurred;

(3) inform the recipient that failure to abate the conduct constituting the nuisance or
to otherwise resolve the matter with the prosecuting attorney within 30 days of service of
the notice may result in the filing of a complaint for relief in district court that could, among
other remedies, result in enjoining the use of the building for any purpose for one year or,
in the case of a tenant, new text begin lessee, or possessor, new text end could result in cancellation of the lease; and

(4) inform the owner of the options available under section 617.85.