House Bill 1530

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF HATTIESBURG, MISSISSIPPI, TO WAIVE LIENS, UNDER CERTAIN CIRCUMSTANCES, THAT ARE IMPOSED ON REAL PROPERTY FOR COSTS AND/OR PENALTIES ASSOCIATED WITH THE CITY'S CLEANING OF REAL PROPERTY THAT HAS BEEN DEEMED A MENACE; TO PROVIDE THAT AN APPLICATION FOR THE WAIVER BE SUBMITTED FOR CONSIDERATION OF SUCH WAIVER; TO PROHIBIT THE PROPERTY OWNER WHO CAUSED THE PROPERTY TO BE DEEMED A MENACE BY THE CITY FROM SUBMITTING SUCH APPLICATION; AND FOR RELATED PURPOSES.

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

SECTION 1. As used in this act unless the context otherwise requires:

(a) "Amnesty" or "waiver" means the forgiveness of an assessment against a property or individual(s) of the costs and related penalties associated with the cleanup incurred by or paid by the city to clear code violations. Approvals for such amnesty or waiver shall specify dollar amounts or are otherwise assumed to be in full. Amnesty or waiver referenced in this section applies to those costs and penalties applicable through Mississippi Code Annotated Title 21-19-11 and in no way relieves costs, fines, or other orders imposed by any court.

(b) "City" means the City of Hattiesburg, Mississippi.

SECTION 2. The governing authorities of the City of Hattiesburg, Mississippi, is authorized with the conditions enumerated in this act to consider and award, when it deems appropriate, the full or partial waiver of assessments against properties or individuals as a result of the city having acted to clear code violations.

SECTION 3. Whereas, the purpose of the governing authorities in exercising this authority, is to foster development and reuse of properties formerly found to be a menace by the city by virtue of any number of code violations or blight conditions, the following circumstances must exist to consider such waiver or amnesty:

(a) The governing authorities must have adopted a resolution and entered on their minutes a finding that (i) collection of the assessment and related penalties through the ordinary process of law has been and will likely be ineffectual and therefore is a doubtful claim; and (ii) it will be more beneficial to the city for the new owner of the property to have the property free of any liens of the city, which will make it easier for the owner to develop, reuse or redevelop the property.

(b) Such waiver or amnesty shall not unduly benefit the owner(s) responsible for the property's past code violation condition. Application shall be made by a new owner or a prospective new owner.

(c) The property for which such waiver or amnesty is requested are those where the city, by its own labor or its contractors, have acted to clear violations by any legal process available to it and where there are costs and/or penalties associated with the property and/or its owner(s) and where the work performed was no less than one year prior to the application for amnesty.

(d) The city shall have documented costs and/or penalties, which may have been adjudicated as an assessment against the property via the chancery clerk or against the owner(s) of the property via the circuit clerk. Costs and/or penalties may be considered for waiver/amnesty regardless of whether or not the associated costs have been assessed by the tax collector to be collected along with the standard taxes for the property. Costs and/or penalties may also be considered for waiver/amnesty if they have been sold for taxes but have not yet been redeemed. Costs/penalties already paid or sold at tax sale and already redeemed shall not be eligible for waiver/amnesty.

SECTION 4. The City of Hattiesburg shall require application for consideration of lien waiver/amnesty to include the following:

(a) An owner or prospective owner must make application to the city for such amnesty, but in no case may the owner responsible for the past code enforcement action or anyone in any way affiliated with such owner be eligible to apply.

(b) Application must include plans for redevelopment, reuse, alternative use, or improved maintenance of the property, and the governing authorities shall use the assurances of the developer as the basis for negotiating any terms and conditions it deems appropriate.

(c) Application for amnesty requires that the new or prospective owner supply one recent appraisal of the property from a reputable real estate appraiser or the county tax assessor's appraised value, or if vacant land, an appraisal, the tax assessor's appraised value, or a competitive sales analysis by a reputable real estate professional, identifying its post-cleaning condition. The applicant must also provide a copy of the contract or closing documents for purchase revealing that the purchase price does not exceed the appraised or analyzed value.

SECTION 5. The governing authorities shall be the decision-making body determining what developments warrant lien waiver/amnesty and conditions to apply.

(a) Amnesty may be denied or may be awarded in full or only represent a portion of that owed depending on the will of the governing authorities and its consideration of all factors, but in no case shall any such lien be waived or reduced until such time that the governing authorities has acted to confirm that its conditions have been met. Likewise, the governing authorities is enabled to phase its waiver based on production of the developer.

(b) For properties where demolition is a part of the agreed upon plan, demolition must occur within twelve (12) months of approval. For reuse or redevelopment of structures, all conditions must be satisfied within eighteen (18) months of approval. For agreements where demolition is the only proposed action or where improved maintenance of a vacant parcel is the only proposed action, the property must be sufficiently maintained for no less than twelve (12) months prior to finding that all conditions of amnesty have been satisfied. For good cause shown, the municipality may allow an additional six (6) to twelve (12) months to satisfy conditions.

(c) Approvals for lien waivers/amnesty shall be approved on conditional basis only, and releases therefor shall not be approved or filed until the governing authorities has formally acknowledged that the conditions of lien waiver/amnesty agreement have been met.

(d) Upon approval of a conditional waiver/amnesty where the cost has already been posted to the tax rolls, the city will coordinate with the tax collector to withdraw and hold in abeyance that assessment until such time that the conditions of the governing authorities have been satisfied.

(e) If the owner has not satisfied the conditions within the time period established and the municipality has not extended the period allowed, the owner must pay the principal amount of the municipality's lien plus interest at the rate of eight percent (8%) per annum.

(f) If the owner desires to sell or dispose of the real property prior to satisfying the conditions, the owner must first obtain the municipality's approval. If the municipality approves the sale or disposal of the real estate prior to satisfying the conditions, the owner shall pay the principal amount of the lien on or before the closing date of the sale unless a subsequent purchaser of the blighted real property has applied for and been granted conditional lien amnesty.

(g) If an owner sells or disposes of the real property prior to satisfying the conditions without the municipality's approval, then the owner shall be liable to the city for the principal amount of the lien plus interest at the rate of eight percent (8%), and a penalty of One Thousand Five Hundred Dollars ($1,500.00) will also be assessed against the owner.

SECTION 6. This act shall take effect and be in force from and after its passage.