HB430 Summary

• Establishes a judicial in rem foreclosure procedure for Class 2 municipalities to foreclose on non-owner occupied properties with unpaid municipal code liens for building code violations.

• Creates a minimum 6-month waiting period after recording a municipal code lien before the municipality may file a foreclosure petition, and requires 60-day advance notice to taxing agencies.

• Municipal code liens accrue interest at 7.5% per annum and are superior to all liens except tax liens; the redemption amount includes the lien payoff plus any applicable delinquent taxes.

• Court must hold a hearing between 30-90 days after petition filing where interested parties may contest the lien delinquency, proceeding adequacy, owner-occupancy status, and tax payoff amounts.

• Property is sold at public auction with a minimum bid price equal to the redemption amount; the municipality may credit bid the municipal code lien payoff portion, and any sale surplus is distributed to interested parties by priority.