Reference is to Printer's Date 5/15/14-H.
Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:
/ SECTION ___. Title 6 of the 1976 Code is amended by adding:
Section 6-38-10. This
chapter must be known and may be cited as the 'Dilapidated
Buildings Act'. This chapter may be used only when a
municipality has:
(1) developed and
followed its locally adopted procedures to deal with the
abatement of unsafe structures pursuant to authority granted to
municipalities in Sections 31-15-20 and 5-7-80;
(2) given the owner of
record proper notice requirements and reasonable time under the
circumstances for the correction of a condition pursuant to
Section 5-25-390 or the International Property Maintenance Code
if properly adopted by a municipality pursuant to Section
6-9-60; and
(3) Property or
structure first must be declared unsafe for human occupancy by a
municipality under its police powers pursuant to Section 5-13-30
or 31-15-20 or the International Property Maintenance Code.
Section 6-38-20. (A)
In considering this legislation, a court is
explicitly authorized, notwithstanding the actual language of
the statute itself, to exercise its customary sound equitable
discretion and in so doing take into account reasonable steps
that might be taken, such as to:
(1)
avoid judicial actions taken after a state or national
disaster, such as a hurricane, so as to give owners or lien
holders additional time to respond, to make repairs, or to
otherwise maintain the status quo in light of those highly
unusual exceptional situations;
(2)
exercise an equity court's own inherent equitable
discretion to protect whenever possible or feasible a property
owner's property;
(3)
operate with the presumption that property should not have
a receiver and that as such a receiver may only be appointed to
consider repairs or demolitions when there is clear and
convincing evidence that it is necessary for the immediate
public health, order, or safety to do so; or
(4)
reconfirm that the court has the discretion not to require
immediate expenditures but to phase in necessary repairs that
are most appropriate for the situation. The court may direct
incremental repairs to portions of a building be undertaken to
preserve public safety or to ameliorate imminent danger.
(B) The presumption
remains that a receiver is a special, extraordinary equitable
remedy to be used sparingly and all reasonable doubts will be
exercised to preserve the property rights of existing property
owners and lien holders of record and the order of appointing a
receiver will recite specifically what evidence permits the
court to exercise its extraordinary authority pursuant to this
chapter.
Section 6-38-30. The rules of equity govern an action under this chapter unless inconsistent with this chapter or other law.
Section 6-38-40. For
purposes of this chapter:
(1) 'Imminent danger'
means a condition that could cause serious or life-threatening
injury or death at any time.
(2) 'Owner of record'
means a person who is the owner of property according to the
most recently approved county tax roll.
(3) 'Police power'
means the basic right granted under state law to make laws and
regulations for the purpose of preserving public health, order,
or safety.
(4) 'Unsafe structures'
means buildings that are found to be dangerous to the life,
health, property, or safety of the public or the occupants.
(5) 'Substantial
compliance' means compliance with the substantial or essential
requirements of the local ordinance relating to unsafe
structures that satisfies its purpose or objective even though
it failed to exactly meet the specifics.
(6) 'Substantial risk'
means a strong possibility, as contrasted with a remote or even
a significant possibility, that a certain result may occur or
that a certain circumstance may exist. It is risk of such a
nature and degree that to disregard it constitutes a gross
deviation from the standard of care that a reasonable person
would exercise in such a situation.
Section 6-38-50. A
municipality or county council may bring an action under this
chapter in circuit court against an owner of property that is
not in substantial compliance with one or more municipal
ordinances regarding:
(1) prevention of
substantial risk of injury to a person;
(2) condition of the
property constitutes an imminent danger to the public health or
safety; or
(3) public nuisance,
building code, or sanitary code.
Section 6-38-60. (A) On
or before the sixtieth day before the date a municipality files
an action pursuant to this chapter, it must provide notice of an
ordinance violation and written notice why the municipality
believes there is a serious, present, and imminent public health
harm or safety hazard, alleged to exist on the property, by
mail, to the:
(1)
physical address of the property; and
(2)
address as indicated on the most recently approved county
tax roll for the property owner or the agent of the property
owner.
(B) A municipality
bringing an action pursuant to this chapter shall serve notice
of the proceedings to each owner of record and holders of
recorded property interests. An owner of record or lien holder
of record who is not available after due diligence may be served
by alternative means, including publication, as prescribed by
the South Carolina Rules of Civil Procedure. Actual service or
service by publication on all owners of record or lien holders
of record constitutes notice to each owner of record or lien
holder of record.
(C) A municipality bringing an action
pursuant to this chapter shall file a notice of lis pendens to
provide constructive notice of the pending action.
Section 6-38-80. The
court may appoint a receiver for the property for a term not to
exceed two years or for a time determined appropriate by the
court based on the nature of the work to be done if the court
finds:
(1) structures on the
property are in substantial violation of one or more ordinances
of the municipality pursuant to Section 6-38-50;
(2) the property is not
an owner-occupied, single-family residence;
(3) the property does
not have one to four family residences where at least one unit
is owner occupied; and
(4) the property is not
currently in foreclosure or bankruptcy proceedings.
Section 6-38-90. A
receiver appointed under this chapter may petition the court to
terminate the receivership and order the sale of the property
if:
(1) the work has been
successfully completed; and
(2) the owner of record
lien holders, and others holding recorded interests have been
served with notice but none of these have repaid the outstanding
costs and expenses of the receiver and any receivership fee on
or before the ninetieth day after the date the notice was
served.
Section 6-38-100.
Subject to control of the court, a court-appointed
receiver has all powers necessary and customary to the powers of
a receiver under the laws of equity and may:
(1) take possession and
control of the property;
(2) operate and manage
the property;
(3) establish and
collect rents and income on the property;
(4) lease the
property;
(5) make repairs and
improvements necessary to bring the property into compliance
with local codes, ordinances, and state laws, including:
(a)
performing and entering into contracts for the performance
of work and the furnishing of materials for repairs and
improvements; and
(b)
entering into loan and grant agreements for repairs and
improvements to the property;
(6) pay expenses,
including paying for utilities and paying taxes and assessments,
insurance premiums, and reasonable compensation to a property
management agent;
(7) enter into
contracts for operating and maintaining the property;
(8) exercise all other
authority of an owner of the property other than the authority
to sell the property; and
(9) perform other acts
regarding the property as authorized by the court.
Section 6-38-110. (A)
Before beginning any work the receiver must
submit to the court a detailed report describing the problems
associated with the property and a detailed plan for abating the
problems.
(1)
This report must be accompanied by a performance bond or
performance bond binder as well as a detailed timeline for
completion of the work.
(2)
The court shall require the receiver to submit progress
reports every forty-five days or as the court determines to
demonstrate compliance with the time schedules established for
commencement and performance of the work.
(3)
The court also shall provide a copy of the report and
estimate to the owner of record, lien holders, and others with a
recorded property interest.
(B)(1) A
court-appointed receiver may demolish a structure only after a
hearing is held to demolish the property where a detailed report
from the receiver establishes:
(a)
it is not economically feasible to bring the structure
into compliance with local codes, local ordinances, and state
laws; and
(b)
the structure:
(i)
is unfit for human habitation;
(ii)
is a hazard to public health or safety; or
(iii)
has been unoccupied by its owners, lessees, or other
invitees, for at least one hundred eighty consecutive days and
property taxes are in arrears and have not been paid, and
electricity has not been maintained.
(2)
A copy of the report must be sent to all owners of record,
all lien holders, and all others with a recorded property
interest, and the property must be posted with notice of the
pending action. If, within ninety days of this notice being
sent and property posted, no owner, lien holder, or other person
with a recorded interest appears to explain to the court's
satisfaction why the property has been left in its current
state, the court may approve demolition of the structure.
(3)
In considering the factors mentioned above, the court also
may consider whether the property is unsecured from unauthorized
entry to the extent that it could be entered or used by vagrants
or other uninvited persons as a place of harborage or could be
entered or used by children. If the property is boarded,
fenced, or otherwise secured, the court may consider
whether:
(a)
the structure constitutes a danger to the public even
though secured from entry; or
(b)
the means used to secure the structure are inadequate to
prevent unauthorized entry or use of the structure.
(C) On demolition of
the structure, the court may authorize the sale of the property
to an individual or organization that will bring the property
into productive use after compliance with the notice
requirements of Section 6-38-90 and Section 6-38-150.
Section 6-38-120. The
following may serve as a court-appointed receiver:
(1) an entity with, as
determined by the court, sufficient capacity, resources, and
experience rehabilitating properties, abating code
violations;
(2) an individual with,
as determined by the court, sufficient capacity, resources, and
experience rehabilitating properties, abating code violations,
or both;
(3) in the case of
historic properties, an entity, nonprofit organization, or
individual with, as determined by the court, sufficient
capacity, experience, and demonstrated record of rehabilitating
historical buildings to comply with the guidelines for
rehabilitating historic properties established by the United
States Secretary of the Interior under 16 U.S.C. Section 470, et
seq., or the historic preservation ordinance of the
municipality, if applicable; or
(4) a licensed and
bonded contractor in the State of South Carolina who possesses
appropriate levels of insurance coverage, including general
liability insurance, workers' compensation insurance, and other
coverage that is required by law.
Section 6-38-125. If a loss occurs to the property entrusted to the receiver, out of the receiver's negligence or dishonest execution of trust, the receiver must be liable for damages.
Section 6-38-130. (A)
A receiver who completes repairs to a
structure or demolishes a structure, upon or before petitioning
a court for termination of the receivership, shall file with the
court a full accounting of:
(1)
all costs and expenses incurred in the repairs or
demolition, including reasonable costs for labor and
supervision;
(2)
all income received from the property; and
(3)
at the discretion of the receiver, a receivership fee not
to exceed ten percent of the costs and expenses in item (1).
(B) If the property was
sold pursuant to Section 6-38-150 and the revenue exceeds the
total of the costs and expenses incurred by the receiver plus a
receivership fee, any net income must be returned to the owner
after all liens have been paid. If the property is not sold and
the income produced exceeds the total of the costs and expenses
incurred by the receiver plus a receivership fee, the
rehabilitated property must be restored to the owner and any net
income must be returned to the owner. If the total of the costs
and expenses incurred by the receiver plus a receivership fee
exceeds the income produced during the receivership, the
receiver may maintain control of the property until all
rehabilitation and maintenance costs plus a receivership fee are
recovered or until the receivership is terminated pursuant to
Section 6-38-150.
Section 6-38-140. (A)
A receiver shall have a lien on the property
for all of the unreimbursed costs and expenses of the receiver,
plus a receivership fee.
(B) A lien holder of
record or other person with a recorded property interest may,
after initiation of an action pursuant to this chapter:
(1)
intervene in the action; and
(2)
request appointment as a receiver pursuant to this chapter
if the lien holder or other person with a recorded property
interest demonstrates to the court an ability and willingness to
rehabilitate the property.
Section 6-38-150. (A)
The court may order the sale of the property
if the court finds that:
(1)
ninety-day notice was given to each recorded owner of the
property and each lien holder of record and those holding
recorded property interests;
(2)
the receiver's costs are reasonable based on:
(a)
nature, extent, and difficulty of the services rendered;
(b)
time and labor devoted to the case;
(c)
professional standing of the receiver;
(d)
contingency of compensation;
(e)
fee customarily charged in the locality for similar
services; and
(f)
beneficial results obtained;
(3)
the receiver has been in control of the property and the
owner has failed to repay all the receiver's outstanding costs
and expenses of rehabilitation plus a receivership fee within
the period pursuant to Section 6-38-90; and
(4)
no lien holder of record or other holder of a recorded
property interest has intervened in the action and tendered the
costs and expenses of the receiver, plus a receivership fee, and
assumed control of the property.
(B) The court may order
the property sold:
(1)
at public auction; or
(2)
to a party as the court may direct.
(C) The receiver may
bid on the property at the sale described by this section and
may use a lien granted pursuant to Section 6-38-140 as credit
toward the purchase. The court must confirm the sale of the
property.
Section 6-38-160. (A)
The court shall confirm a sale under this
chapter and order a distribution of the proceeds of the sale in
the following order:
(1)
court costs;
(2)
costs and expenses, plus a receivership fee, and any lien
held by the receiver; and
(3)
other valid liens.
(B) Any remaining
overage belongs to the owner of record. These sums are payable
ninety days after execution of the deed unless a judicial action
is instituted during that time by another claimant. If neither
claimed nor assigned within five years of date of public auction
sale, the overage shall escheat to the general fund of the
governing body to be set aside for the purpose. Before the
escheat date unclaimed overages must be kept in a separate
account and must be invested so as not to be idle and the
governing body of the political subdivision is entitled to the
earnings for keeping the overage. On escheat date the overage
must be transferred to the general funds of the governing body.
Section 6-38-170. (A)
The court shall award fee title to the
purchaser after the proceeds are distributed. If proceeds from
the sale are insufficient to pay all liens, claims, and
encumbrances on the property, the court shall extinguish all
unpaid liens, claims, and encumbrances on the property and award
title to the purchaser free and clear.
(B) This chapter does
not foreclose any right or remedy that may be available under
other state law or the laws of equity." /
Renumber sections to conform.
Amend title to conform.