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H. B. No. 621 As IntroducedAs Introduced
|129th General Assembly|
To enact section 2323.08 of the Revised Code to
require a mortgagee who is a plaintiff in a
mortgage foreclosure action to keep the condition
of certain real property in accordance with
requirements of the state building and fire codes,
and any applicable local codes, for the period of
time between the judgment of foreclosure and the
recording of the deed of the property.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 2323.08 of the Revised Code be
enacted to read as follows:
Sec. 2323.08. (A)(1) "Assistant state fire marshal" has the
same meaning as "assistant fire marshal," as defined in section
3737.01 of the Revised Code.
(2) "Fire safety inspector" has the same meaning as in
section 3737.01 of the Revised Code.
(3) "State inspector" means the superintendent of labor, an
inspector employed by the division of labor within the department
of commerce, the state fire marshal, an assistant state fire
marshal, or a certified fire safety inspector.
(4) "Local inspector" means an individual who has the
authority in a municipal corporation, township, or county, as
applicable, to enforce any of the following:
(b) State and local building codes;
(B) Except as provided in division (F) of this section, if a
mortgagee is a plaintiff in a mortgage foreclosure action and if
the mortgagee obtains a judgment of foreclosure pursuant to
section 2323.07 of the Revised Code, the mortgagee or a designee
of the mortgagee shall periodically monitor the real property that
is the subject of the mortgage to determine whether the real
property is the type of real property described in division (I) of
this section. If the mortgagee or the mortgagee's designee
determines that the real property is that type of real property,
the mortgagee shall bring an action against the mortgagor of the
real property in the court of common pleas of the county in which
the real property is located to obtain possession of the real
property for purposes of complying with division (D) of this
section. If the mortgagee is successful in that action, the
mortgagee shall be a mortgagee in possession of the real property.
Nothing in this section shall be construed as extinguishing the
right of redemption of the mortgagor under section 2329.33 of the
(C) If a state or local inspector determines that the real
property is the type of real property described in division (I) of
this section, and if the state or local inspector determines that
a mortgagee described in division (B) of this section has not
pursued an action described in that division, the state or local
inspector may bring an action in a court of competent jurisdiction
to require the mortgagee to bring an action described under
division (B) of this section.
(D) Upon becoming a mortgagee in possession as described in
division (B) of this section, the mortgagee in possession shall
keep the condition of the real property in accordance with the
requirements of the state residential or nonresidential building
codes adopted pursuant to section 3781.10 of the Revised Code
applicable to that real property, the state fire code adopted
pursuant to section 3737.82 of the Revised Code, the local zoning
code applicable to the real property, any local building code
applicable to the real property, or any other similar safety or
health regulation applicable to the real property, and shall
remedy any violations with respect to those codes or regulations,
until ownership of the real property has been transferred and the
deed for the real property has been duly recorded pursuant to
section 2329.36 of the Revised Code.
(E) A mortgagee described in division (B) of this section
shall have the right to peaceably enter the real property to which
division (I) of this section applies, or to cause others to
peaceably enter the real property, for the limited purpose of
inspections, repairs, and maintenance as required by this section
or as ordered by a court. If the real property is occupied by a
tenant, the mortgagee must provide notice to the tenant seven days
in advance of the entry, unless emergency repairs are required, in
which case reasonable notice shall be provided to the tenant.
A mortgagee that complies with division (D) of this section
shall recover any costs incurred as a result of keeping the
condition of the real property in accordance with the requirements
of the applicable state residential or nonresidential building
code, the state fire code, the applicable local building code, the
applicable local zoning code, or the health and safety
regulations, from the sale of the property in accordance with
section 2329.21 of the Revised Code. If the mortgagor exercises
the mortgagor's right of redemption under section 2329.33 of the
Revised Code, the mortgagee may bring an action in a court of
competent jurisdiction to recover those costs. The authority
provided by this division shall be in addition to, and shall not
diminish or reduce, any rights of the parties described under
existing law against the mortgagor of property for failure to
maintain the real property.
(F)(1) If a municipal corporation or other governmental
entity holds a mortgage subordinate to one or more mortgages on
the real property specified in division (I) of this section, the
municipal corporation or other governmental entity shall not be
subject to division (B) of this section.
(2) If the mortgagor of the real property commences a
proceeding in bankruptcy court prior to the completion of the sale
of the real property under execution or order of sale required by
Chapter 2329. of the Revised Code, the duties created by this
section shall be suspended during the pendency of the bankruptcy
proceeding, or until an order has been entered in that proceeding
lifting or removing the automatic stay of the foreclosure sale.
(3) A mortgagee shall be relieved of the mortgagee's
responsibilities under this section for the period that a receiver
of the real property is serving.
(G) Nothing in this section shall diminish in any way the
obligations pursuant to any state or local law of the mortgagor of
the real property specified in division (I) of this section, or a
receiver of rents and profits appointed in an action to foreclose
a mortgage, to maintain the real property prior to the recording
of the deed pursuant to a foreclosure sale.
(H) This section shall not preempt, reduce, or limit any
rights or obligations imposed by any local laws with respect to
real property maintenance and the locality's ability to enforce
(I) This section applies to real property that is vacant, or
becomes vacant after the issuance of a judgment of foreclosure
pursuant to section 2323.07 of the Revised Code, or is abandoned
by the mortgagor but occupied by a tenant.
Section 2. The General Assembly declares its intent in
enacting section 2323.08 of the Revised Code pursuant to this act
to respond to the issues raised in Hausman v. City of Dayton, 73
Ohio St.3d 671 (1995).