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2017 SESSION
17102899DBe it enacted by the General Assembly of Virginia:
1. That § 15.2-907.2 of the Code of Virginia is amended and reenacted as follows:
§ 15.2-907.2. Authority of locality
A. Any locality that has adopted an ordinance pursuant to §
15.2-907.1 may petition the circuit court for the appointment of the locality or a land bank
entity created pursuant to the Land Bank Entities
Act (§ 15.2-7500 et seq.) to
act as a receiver to repair real property that contains residential dwelling
units only in accordance with all of the following: 1. The locality has properly declared the subject property to
be a derelict building in compliance with the provisions of § 15.2-907.1; 2. The property owners are in noncompliance with the
provisions of § 15.2-907.1; 3. The locality has properly declared the subject property to
be blighted in compliance with the provisions of § 36-49.1:1 for spot blight
abatement, and the subject property is itself blighted; 4. The property owners are in noncompliance with the
provisions of § 36-49.1:1 requiring abatement of the blighted condition of the
property; 5. The locality has made bona fide efforts to ensure
compliance by the property owners of the subject property with the requirements
of §§ 15.2-907.1 and 36-49.1:1; 6. The repairs to the subject property are necessary to bring
the subject property into compliance with the provisions of the Uniform
Statewide Building Code; 7. The repairs to the subject property necessary to satisfy
the requirements of subdivision 6 shall not result in a change of use for
zoning purposes of the subject property; 8. Upon appointment by the circuit court to serve as a
receiver, the locality or land bank entity shall have the authority to contract for all reasonable
repairs necessary to bring the property into compliance with the provisions of
the Uniform Statewide Building Code, subject to all applicable requirements of
state and local procurement laws. Such repairs shall be made in a time period
established by the court, but in no event shall a receivership exceed two
years; 9. Notwithstanding any other provision of law, the provisions
of this section are subject to the requirements of the Servicemembers Civil
Relief Act (50 U.S.C. § 3901 et seq.); and 10. Notwithstanding any other provisions of law, the subject
property shall be eligible for any real estate abatement programs that exist in
the locality. B. A petition by the locality to be appointed, or to appoint a land bank entity created pursuant
to the Land Bank Entities Act (§
15.2-7500 et seq.), to
act as a receiver shall include affirmative statements that the locality has
satisfied each of the requirements of this section and further state that the
locality has recorded a memorandum of lis pendens simultaneously with the
filing of said petition. The costs of the receivership, along with reasonable
attorney fees, incurred by the locality or land bank entity
as receiver shall constitute a lien in favor of the locality or land bank entity against
the subject property in accordance with the provisions of § 58.1-3340, and
shall be on par with and collectible in the same manner as delinquent real
estate taxes owed to the locality. The judicial proceedings herein shall be
held in accordance with the requirements, statutory or arising at common law,
relative to effecting the sale of real estate by a creditor's bill in equity to
subject real estate to the lien of a judgment creditor. C. The locality or land bank entity
created pursuant to the Land Bank Entities
Act (§ 15.2-7500 et seq.)
appointed to be a receiver may enforce the receiver's lien by a sale of the
property at public auction, but only upon application for and entry of an order
of sale by the circuit court. The court shall appoint a special commissioner to
conduct the sale, and an attorney employed by the locality may serve as special
commissioner. Such sale shall be upon order of the court entered after notice
as required by the Rules of the Supreme Court of Virginia and following publication
of notice of the sale once a week for four consecutive weeks in a newspaper of
general circulation. Following such public auction, the special commissioner
shall file an accounting with the court and seek confirmation of the sale. Upon
confirmation, the special commissioner shall be authorized to execute a deed
conveying title, which shall pass free and clear to the purchaser at public
auction. Following such sale, the former owner or owners, or any heirs,
assignees, devisees, or successors in interest to the property shall be
entitled to the surplus received in excess of the receiver's lien, taxes,
penalties, interest, reasonable attorney fees, costs, and any recorded liens
chargeable against the property. At any time prior to confirmation of the sale
provided for herein, the owner shall have the right to redeem the property, as
provided for in subsection D. The character of the title acquired by the
purchaser of the property at public auction shall be governed by the principles
and rules applicable to the titles of purchases at judicial sales of real
estate generally. D. The owner of any property subject to receivership may
redeem the property at any time prior to the expiration of the two-year period
or prior to confirmation of sale at public auction by paying the receiver's
lien in full and the taxes, penalties, interest, reasonable attorney fees,
costs, and any recorded liens chargeable against the property. Partial payment
shall not be sufficient to redeem the property and shall not operate to suspend
the receivership. E. In lieu of appointment of a receiver, the circuit court
shall permit repair by a property owner or a person with an interest in the
property secured by a deed of trust properly recorded upon the following
conditions: 1. Demonstration of the ability to complete the repair within
a reasonable amount of time to be determined by the court; and 2. Entry of a court order setting forth a schedule for such
repair.