Minnesota Legislature
HF 1698
as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:53am
Current Version - as introduced
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A bill for an act
relating to housing; providing for the rehabilitation of housing that is vacant and
abandoned as a result of the foreclosure crisis; protecting the health, safety, and
welfare of the community through appropriate police powers; providing a legal
process to appoint receivers for abandoned properties and recovery of funds
expended to bring the property up to code; proposing coding for new law in
Minnesota Statutes, chapter 463.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[463.270] MINNESOTA NEIGHBORHOOD RENEWAL ACT.
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Sections 463.270 to 463.274 may be referred to a the "Minnesota Neighborhood
Renewal Act."
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Sec. 2.
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[463.271] DEFINITIONS.
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new text begin Subdivision 1. new text end
new text begin Scope. new text end
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As used in sections 463.271 to 463.274, the terms defined in
this section have the meanings given them.
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new text begin Subd. 2. new text end
new text begin Last known address. new text end
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"Last known address" includes the address where
the property is located or the recorded address as listed in the applicable tax records.
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new text begin Subd. 3. new text end
new text begin Nonprofit housing organization. new text end
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"Nonprofit housing organization" or
"organization" means a nonprofit corporation organized under chapter 317A that has
as one of its purposes the improvement of housing or stabilization of neighborhoods.
Nonprofit housing organization further includes, but is not limited to, a nonprofit
community development corporation or a neighborhood association.
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new text begin Subd. 4. new text end
new text begin Nuisance. new text end
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"Nuisance" means any property that because of its physical
condition or use is:
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(1) a public nuisance, under sections 617.80 and 617.92 to 617.97;
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(2) a private nuisance, under section 561.01;
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(3) a hazardous building or hazardous condition, under section 463.16;
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(4) vacant and boarded for 180 days; or
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(5) condemned or without a certificate of occupancy due to local code or ordinance
violations for 180 days.
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new text begin Subd. 5. new text end
new text begin Parties in interest. new text end
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"Parties in interest" means any owner or owners of
record, judgment creditor, tax purchaser, or other party having a recorded interest in the
property.
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new text begin Subd. 6. new text end
new text begin Property. new text end
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"Property" means the building, structure, or land that is the
subject of an action under the Minnesota Neighborhood Renewal Act.
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new text begin Subd. 7. new text end
new text begin Property owner. new text end
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"Property owner" means the owner or owners of record
of the property for tax purposes.
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new text begin Subd. 8. new text end
new text begin Rehabilitation or rehabilitate. new text end
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"Rehabilitation" or "rehabilitate" means
the process of improving the property including, but not limited to, bringing the property
into compliance with applicable state and local fire, housing, and building codes.
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new text begin Subd. 9. new text end
new text begin Taxes. new text end
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"Taxes" means any tax, fee, or assessment charged by any city,
county, state, or federal governing entity on the property as a tax, fee, special assessment,
or lien on the property.
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Sec. 3.
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[463.272] REQUIREMENTS AND RELIEF.
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new text begin Subdivision 1. new text end
new text begin General requirements. new text end
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An action under the Minnesota
Neighborhood Renewal Act shall only be taken:
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(1) by a person acting on behalf of the state, county, municipality, or nonprofit
housing organization;
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(2) if the subject property is a nuisance; and
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(3) service has been made upon all parties in interest at last known address.
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new text begin Subd. 2. new text end
new text begin Access to property. new text end
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The court has the authority to grant any party access
to the property for the purpose of determining necessary actions under sections 463.270 to
463.274.
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new text begin Subd. 3. new text end
new text begin Relief. new text end
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A person acting on behalf of a state, county, municipality, or
nonprofit housing organization may seek any of the following relief from the court:
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(a) An injunction requiring the property owner to rehabilitate the property, including,
but not limited to, an order for the property owner to:
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(1) comply with state law;
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(2) comply with local ordinances and codes; and
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(3) take actions deemed necessary by the court to eliminate the existing or ongoing
nuisance.
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(b) The appointment of a receiver to rehabilitate the property, including, but not
limited to, an order for the receiver to cause the property to:
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(1) comply with state law;
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(2) comply with local ordinances and codes; and
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(3) take actions deemed necessary by the court to eliminate the existing or ongoing
nuisance.
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(c) The court shall authorize the receiver, if appointed, to recover its costs, including
attorney fees, by the issuance of a receiver's certificate or note identifying the costs and
bearing interest the court may fix, and, after the initial issuance, the certificate or note shall
be freely transferable and shall be a first lien upon the real estate and the rents and issues
of the real estate, and shall be superior to all prior assignments of rents, prior existing
liens, prior existing mortgages, and prior existing encumbrances, except taxes. Within 90
days of the issuance, the holder of the receiver's certificate or note must file a notice of lien
in the office of the recorder in the county in which the real estate is located or in the office
of the registrar of titles. The notice of the lien filed shall set forth:
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(1) a description of the real estate affected sufficient for the identification of the
real estate;
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(2) the face amount of the receiver's certificate or note that was sold or transferred
for value by the receiver;
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(3) the date when the receiver's certificate or note was issued by the court; and
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(4) that the lien is placed on the property to recover for rehabilitation costs under the
Minnesota Neighborhood Renewal Act.
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(d) Attorney fees and costs.
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Sec. 4.
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[463.273] RELEASE OF LIEN.
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Upon payment to the holder of the receiver's certificate or note of the face amount
of the certificate, together with any interest on the certificate, the lien on the certificate
shall be released.
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Sec. 5.
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[463.274] ENFORCEMENT OF LIEN.
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new text begin Subdivision 1. new text end
new text begin Default. new text end
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The date of default shall be deemed to occur 90 days from
the date of issuance of the receiver's certificate or note, if at that time the note or certificate
remains unpaid in whole or in part.
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new text begin Subd. 2. new text end
new text begin Separate proceeding. new text end
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The lien may be enforced by proceeding to
foreclose as in the case of mortgages or mechanics' liens, by advertisement under chapter
580, or foreclosure by action under chapter 581. Action to foreclose the lien may be
commenced at any time after the date of default.
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new text begin Subd. 3. new text end
new text begin Control of the property. new text end
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After the issuance of the receiver's certificate or
note, the receiver is entitled to remain in possession of the property until the certificate or
note is paid or the foreclosure process is completed.
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