HB2321 - 492R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 9-499, Arizona Revised Statutes, is amended to read:

START_STATUTE9-499. Removal of rubbish, trash, weeds, filth, debris and dilapidated structures; removal by city; costs assessed; collection; priority of assessment; definitions

A. The governing body of a city or town, by ordinance, shall compel the owner, lessee or occupant of property or the beneficiary of a deed of trust as provided in subsection G of this section to remove rubbish, trash, weeds or other accumulation of filth, debris or dilapidated structures which that constitute a hazard to public health and safety from buildings, grounds, lots, contiguous sidewalks, streets and alleys. An ordinance shall require:

1. Written notice to the owner, the owner's authorized agent or the owner's statutory agent and to the occupant or lessee. The notice shall be served either by personal service or by certified mail. If notice is served by certified mail, the notice shall be mailed to the last known address of the owner, the owner's authorized agent or the owner's statutory agent and to the address to which the tax bill for the property was last mailed. The notice shall be given not less than thirty days before the day set for compliance and shall include the legal description of the property and the cost of such removal to the city or town if the owner, occupant or lessee does not comply. The owner shall be given not less than thirty days to comply. The city or town may record the notice in the county recorder's office in the county in which the property is located. If the notice is recorded and compliance with the notice is subsequently satisfied, the city or town shall record a release of the notice.

2. Provisions for appeal to and a hearing by the governing body of the city or town or a board of citizens that is appointed by the governing body on both the notice and the assessments, unless the removal or abatement is ordered by a court.

3. That any person, firm or corporation that places any rubbish, trash, filth or debris upon any private or public property not owned or under the control of that person, firm or corporation is guilty of a class 1 misdemeanor or a civil violation and, in addition to any fine or penalty which may be imposed for a violation of any provision of this section, is liable for all costs which may be assessed pursuant to this section for removing, abating or enjoining the rubbish, trash, filth or debris.

B. The ordinance may provide that if any person with an interest in the property, including an owner, lienholder, lessee or occupant, after notice as required by subsection A, paragraph 1 of this section does not remove such rubbish, trash, weeds, filth, debris or dilapidated structures and abate the condition which that constitutes a hazard to public health and safety, the city or town may remove, abate, enjoin or cause their removal.

C. The governing body of the city or town may prescribe by ordinance a procedure for the removal or abatement, and for making the actual cost of the removal or abatement, including the actual costs of any additional inspection and other incidental connected costs, an assessment upon the property from which the rubbish, trash, weeds or other accumulations are removed or abated.

D. The ordinance may provide that the cost of removal, abatement or injunction of such rubbish, trash, weeds, filth, debris or dilapidated structures from any lot or tract of land, and associated legal costs for abatement or injunctions, shall be assessed on the property from which the rubbish, trash, weeds, accumulations or dilapidated structures are removed, abated or enjoined. The city or town may record the assessment in the county recorder's office in the county in which the property is located, including the date and amount of the assessment, the legal description of the property and the name of the city or town imposing the assessment. Any assessment recorded after July 15, 1996 is prior and superior to all other liens, obligations, mortgages or other encumbrances, except liens for general taxes. A sale of the property to satisfy an assessment obtained under the provisions of this section shall be made upon judgment of foreclosure and order of sale. A city or town shall have the right to bring an action to enforce the assessment in the superior court in the county in which the property is located at any time after the recording of the assessment, but failure to enforce the assessment by such action shall not affect its validity. The recorded assessment shall be prima facie evidence of the truth of all matters recited in the assessment and of the regularity of all proceedings prior to the recording of the assessment.

E. Assessments that are imposed under subsection D of this section run against the property until paid and are due and payable in equal annual installments as follows:

1. Assessments of less than five hundred dollars shall be paid within one year after the assessment is recorded.

2. Assessments of five hundred dollars or more but less than one thousand dollars shall be paid within two years after the assessment is recorded.

3. Assessments of one thousand dollars or more but less than five thousand dollars shall be paid within three years after the assessment is recorded.

4. Assessments of five thousand dollars or more but less than ten thousand dollars shall be paid within six years after the assessment is recorded.

5. Assessments of ten thousand dollars or more shall be paid within ten years after the assessment is recorded.

F. An assessment that is past due accrues interest at the rate prescribed by section 44‑1201.

G. For any residential property for which the city or town receives a notice of pending foreclosure pursuant to section 33-807, the city or town on its own motion may inspect the exterior of the property and send notice pursuant to subsection a of this section to the beneficiary of the deed of trust to remove rubbish, trash, weeds or other accumulation of filth, debris or dilapidated structures that constitute a hazard to public health and safety from buildings, grounds and lots of the trust property. Thereafter, the beneficiary is properly noticed as a party to any order to remove or abate the hazard pursuant to this section, including any order regarding payment of costs or an assessment. The trustee shall pay all assessments levied pursuant to this section against the trust property and, on recordation of a release of assessment lien by the city or town, may proceed with a notice of sale pursuant to section 33-807. If the city or town does not send a notice pursuant to subsection a of this section to the beneficiary within ninety days after receiving the notice of pending foreclosure, the city or town waives its authority to order any removal against the beneficiary pursuant to this section, and the beneficiary may proceed with a notice of sale pursuant to section 33-807.

G. H. A prior assessment for the purposes provided in this section shall not be a bar to a subsequent assessment or assessments for these purposes, and any number of assessments on the same lot or tract of land may be enforced in the same action.

H. I. This section applies to all cities and towns organized and operating under the general law of this state, and cities and towns organized and operating under a special act or charter.

I. J. For the purposes of this section:

1. "Property" includes buildings, grounds, lots and tracts of land.

2. "Structures" includes buildings, improvements and other structures that are constructed or placed on land. END_STATUTE

Sec. 2. Section 11-268, Arizona Revised Statutes, is amended to read:

START_STATUTE11-268. Removal of rubbish, trash, weeds, filth, debris and dilapidated buildings; violation; classification; removal by county; costs assessed; collection; priority of lien; definition

A. The board of supervisors, by ordinance, shall compel the owner, lessee or occupant, or the beneficiary of a deed of trust as provided in subsection F of this section, of buildings, grounds or lots located in the unincorporated areas of the county to remove rubbish, trash, weeds, filth, debris or dilapidated buildings which that constitute a hazard to public health and safety from buildings, grounds, lots, contiguous sidewalks, streets and alleys. Any such ordinance shall require and include:

1. Reasonable written notice to the owner, any lienholder, the occupant or the lessee. The notice shall be given not less than thirty days before the day set for compliance and shall include the estimated cost to the county for the removal if the owner, occupant or lessee does not comply. The notice shall be either personally served or mailed by certified mail to the owner, occupant or lessee at his last known address, or the address to which the tax bill for the property was last mailed. If the owner does not reside on the property, a duplicate notice shall also be sent to the owner at the owner's last known address.

2. Provisions for appeal to the board of supervisors on both the notice and the assessments.

3. That any person, firm or corporation that places any rubbish, trash, filth or debris upon any private or public property located in the unincorporated areas of the county not owned or under the control of the person, firm or corporation is guilty of a class 1 misdemeanor and, in addition to any fine which may be imposed for a violation of any provision of this section, is liable for all costs which may be assessed pursuant to this section for the removal of the rubbish, trash, filth or debris.

B. The ordinance may provide that if any person with an interest in the property, including an owner, lienholder, lessee or occupant of the buildings, grounds or lots, after notice as required by subsection A, paragraph 1, does not remove the rubbish, trash, weeds, filth, debris or dilapidated buildings and abate the condition which that constitutes a hazard to public health and safety, the county may, at the expense of the owner, lessee or occupant, may remove, abate, enjoin or cause the removal of the rubbish, trash, weeds, filth, debris or dilapidated buildings.

C. The board of supervisors may prescribe by the ordinance a procedure for such removal or abatement and for making the actual cost of such removal or abatement, including the actual costs of any additional inspection and other incidental costs in connection with the removal or abatement, an assessment upon the lots and tracts of land from which the rubbish, trash, weeds, filth, debris or dilapidated buildings are removed.

D. The ordinance may provide that the cost of removal, abatement or injunction of the rubbish, trash, weeds, filth, debris or dilapidated buildings from any lot or tract of land located in the unincorporated areas of the county and associated legal costs be assessed in the manner and form prescribed by ordinance of the county upon the property from which the rubbish, trash, weeds, filth, debris or dilapidated buildings are removed, abated or enjoined. The county shall record the assessment in the county recorder's office in the county in which the property is located, including the date and amount of the assessment and the legal description of the property. Any assessment recorded after the effective date of this amendment to this section August 6, 1999 is prior and superior to all other liens, obligations or other encumbrances, except liens for general taxes and prior recorded mortgages. A sale of the property to satisfy an assessment obtained under this section shall be made on judgment of foreclosure and order of sale. The county may bring an action to enforce the lien in the superior court in the county in which the property is located at any time after the recording of the assessment, but failure to enforce the lien by such action does not affect its validity. The recorded assessment is prima facie evidence of the truth of all matters recited in the assessment and of the regularity of all proceedings before the recording of the assessment.

E. Assessments that are imposed under subsection D run against the property until they are paid and are due and payable in equal annual installments as follows:

1. Assessments of less than five hundred dollars shall be paid within one year after the assessment is recorded.

2. Assessments of five hundred dollars or more but less than one thousand dollars shall be paid within two years after the assessment is recorded.

3. Assessments of one thousand dollars or more but less than five thousand dollars shall be paid within three years after the assessment is recorded.

4. Assessments of five thousand dollars or more but less than ten thousand dollars shall be paid within six years after the assessment is recorded.

5. Assessments of ten thousand dollars or more shall be paid within ten years after the assessment is recorded.

F. For any residential property for which the county receives a notice of pending foreclosure pursuant to section 33-807, the county on its own motion may inspect the exterior of the property and send notice pursuant to subsection a of this section to the beneficiary of the deed of trust to remove rubbish, trash, weeds or other accumulation of filth, debris or dilapidated structures that constitute a hazard to public health and safety from buildings, grounds and lots of the trust property. Thereafter, the beneficiary is properly noticed as a party to any order to remove or abate the hazard pursuant to this section, including any order regarding payment of costs or an assessment. The trustee shall pay all assessments levied pursuant to this section against the trust property and, on recordation of a release of assessment lien by the county, may proceed with a notice of sale pursuant to section 33-807. If the county does not send a notice pursuant to subsection a of this section to the beneficiary within ninety days after receiving the notice of pending foreclosure, the county waives its authority to order any removal against the beneficiary pursuant to this section, and the beneficiary may proceed with a notice of sale pursuant to section 33-807.

F. G. A prior assessment for the purposes provided in this section is not a bar to a subsequent assessment or assessments for such purposes, and any number of liens on the same lot or tract of land may be enforced in the same action.

G. H. Before the removal of a dilapidated building the board of supervisors shall consult with the state historic preservation officer to determine if the building is of historical value.

H. I. If a county removes a dilapidated building pursuant to this section, the county assessor shall adjust the valuation of the property on the property assessment tax rolls from the date of removal.

I. J. As used in this section, occupant does not include any corporation or association operating or maintaining rights-of-way for and on behalf of the United States government, either under contract or under federal law.

J. K. As used in For the purposes of this section, "dilapidated building" means any real property structure that is in such disrepair or is damaged to the extent that its strength or stability is substantially less than a new building or it is likely to burn or collapse and its condition endangers the life, health, safety or property of the public. END_STATUTE

Sec. 3. Section 33-807, Arizona Revised Statutes, is amended to read:

START_STATUTE33-807. Sale of trust property; power of trustee; foreclosure of trust deed

A. By virtue of his the trustee's position, a power of sale is conferred upon the trustee of a trust deed under which the trust property may be sold, in the manner provided in this chapter, after a breach or default in performance of the contract or contracts, for which the trust property is conveyed as security, or a breach or default of the trust deed. At the option of the beneficiary, a trust deed may be foreclosed in the manner provided by law for the foreclosure of mortgages on real property in which event chapter 6 of this title governs the proceedings. The beneficiary or trustee shall constitute the proper and complete party plaintiff in any action to foreclose a deed of trust. The power of sale may be exercised by the trustee without express provision therefor in the trust deed.

B. The trustee or beneficiary may file and maintain an action to foreclose a deed of trust at any time before the trust property has been sold under the power of sale. A sale of trust property under the power of sale shall not be held after an action to foreclose the deed of trust has been filed unless the foreclosure action has been dismissed.

C. The trustee or beneficiary may file an action for the appointment of a receiver according to sections 12‑1241 and 33‑702. The right to appointment of a receiver shall be independent of and may precede the exercise of any other right or remedy.

D. EXCEPT for residential property, the power of sale of trust property conferred upon the trustee shall not be exercised before the ninety‑first day after the date of the recording of the notice of the sale. The sale shall not be set for a Saturday or legal holiday. The trustee may schedule more than one sale for the same date, time and place.

E. For residential property, the power of sale of trust property conferred on the trustee shall not be exercised until after delivery of a notice of pending foreclosure to the city, town or county in which the trust property is located. On receipt of the notice of pending foreclosure, the city, town or county may issue an order to the beneficiary and take other action against the beneficiary pursuant to section 9-499 or 11-268. On compliance with any orders and discharge of any assessment lien, the beneficiary and trustee may proceed with a notice of sale on the trust property. On expiration of ninety days after the city, town or county received the notice of pending foreclosure and if no order to remove, abate or otherwise comply with section 9-499 or 11-268 is issued by the city, town or county against the beneficiary, the beneficiary or trustee may proceed with a notice of sale on the trust property.

E. F. The trustee need only be joined as a party in legal actions pertaining to a breach of the trustee's obligation under this chapter or under the deed of trust. Any order of the court entered against the beneficiary is binding upon the trustee with respect to any actions that the trustee is authorized to take by the trust deed or by this chapter. If the trustee is joined as a party in any other action, the trustee is entitled to be immediately dismissed and to recover costs and reasonable attorney fees from the person joining the trustee. END_STATUTE