HB1573 (2008) Detail

Relative to hazardous and dilapidated buildings.


CHAPTER 293

HB 1573-FN-LOCAL – FINAL VERSION

12Mar2008… 0430h

05/01/08 1430s

04Jun2008… 2038cofc

2008 SESSION

08-2452

06/09

HOUSE BILL 1573-FN-LOCAL

AN ACT relative to hazardous and dilapidated buildings.

SPONSORS: Rep. Theberge, Coos 4; Rep. King, Coos 1; Rep. Ingersoll, Coos 4; Rep. Osborne, Merr 12; Rep. Y. Thomas, Coos 4; Sen. Gallus, Dist 1

COMMITTEE: Municipal and County Government

ANALYSIS

This bill permits municipalities to place a lien on real property within the state, and on the property owner’s interest in the proceeds of certain property insurance, to recover the costs of correcting hazardous conditions.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

12Mar2008… 0430h

05/01/08 1430s

04Jun2008… 2038cofc

08-2452

06/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

AN ACT relative to hazardous and dilapidated buildings.

Be it Enacted by the Senate and House of Representatives in General Court convened:

293:1 Order; Contents. Amend RSA 155-B:3 to read as follows:

155-B:3 Order; Contents. The order shall state, in writing, the grounds therefor, specifying the necessary repairs, if any, and providing a reasonable time for compliance. It shall also state that a motion for summary enforcement of the order will be made to the court of the district or municipality in which the hazardous building is situated unless corrective action is taken, or unless an answer is filed within the time specified in RSA 155-B:6 and that any costs, attorney’s fees, and expenses incurred by the municipality in bringing the property into compliance may be enforced as a lien against the subject property and any other property owned by the same owner in the state pursuant to RSA 155-B:9, II.

293:2 Enforcement of Judgment. Amend RSA 155-B:9 to read as follows:

155-B:9 Enforcement of Judgment.

I. If a judgment is not complied with in the time prescribed, the governing body may cause the building to be repaired, razed, or removed as set forth in the judgment. The cost of such repairs, razing, or removal shall be a lien against the real estate on which the building is located and may be levied and collected in the same manner as provided in RSA 80 for tax liens. When the building is razed or removed by the municipality, the governing body may sell the salvage and valuable materials at public auction upon 3 days’ posted notice.

II. If the value of the subject real estate is deemed by the municipality to have insufficient value, based on the current tax assessment, to cover the cost of repairs, razing, or removal, the governing body may place a lien for the balance of the cost on any other real property in the state that is owned by the same owner, which additional lien may be levied and collected in the same manner as provided in RSA 80 for tax liens; provided that RSA 80:59 giving such liens priority over all other liens shall not apply. The municipal lien shall be subordinate to any lien of record on such real property.

293:3 New Sections; Municipal Lien on Owner’s Interest in Property Insurance Proceeds; Sale of Materials. Amend RSA 155-B by inserting after section 9 the following new section:

155-B:9-a Municipal Lien on Owner’s Interest in Property Insurance Proceeds. If the value of the subject real estate is deemed by the municipality to have insufficient value, based on the current tax assessment, to cover the cost of repairs, razing, or removal, and the owner has no other real property within the state, a municipality may assert a lien on the owner’s interest in any real property insurance proceeds that are payable as a result of the damage or destruction of that property owner’s real property located in the municipality. The lien shall be for the estimated cost to repair, raze, or remove the damaged structure, whichever of those options is the least expensive, minus the value in the remaining real property based on the current tax assessments. The municipal lien shall be subordinate to any lien holder of record, and to any rights, title, or interest in such real property insurance proceeds in favor of any lender holding a mortgage on such real property and who was named as an additional insured or loss payee, by means of loss payable endorsement or otherwise, on any policy of insurance insuring such real property. The insurer’s obligations under this section shall commence upon its receipt of a copy of the order under RSA 155-B:4, and a statement of the estimated lien amount allowed under this section, and shall apply only to insurance proceeds held by the insurer as of that date and due to be paid to the owner. The lien, the estimated cost of which shall be approved by the court, shall be for the purpose of reimbursing the municipality for all costs permitted to be recovered by it under RSA 155-B if the municipality elects to demolish the property. Any unexpended funds from the lien shall be returned to the property owner. The property owner shall, within 72 hours of the receipt of a written request by the municipality, provide the municipality with the names, addresses, agents, and policy numbers of all insurance companies which have provided the property owner with insurance on the property. The lien shall automatically expire if the owner rebuilds or demolishes the real property in the manner required by this chapter and the municipality shall provide a written release of the lien to the insurer and the property owner. The insurer shall distribute all proceeds due to the property owner that exceed the lien amount allowed under this section. The municipality shall release the lien in order to permit payment for repairs, razing, or removal of the building.

293:4 Effective Date. This act shall take effect upon its passage.

Approved: June 27, 2008

Effective Date: June 27, 2008