HOUSE BILL NO. 4123

February 05, 2019, Introduced by Reps. Whitsett, Neeley, Cynthia Johnson, Sabo, Brixie, Elder and Jones and referred to the Committee on Local Government and Municipal Finance.

"The home rule city act,"

by amending section 4r (MCL 117.4r), as amended by 2013 PA 192.

the people of the state of michigan enact:

Sec. 4r. (1) If a defendant does not pay a civil fine or costs or an installment payment ordered by a hearing officer under section 4q within 30 days after the date on which payment is due for a blight violation involving the use or occupation of land or a building or other structure, the city may obtain a lien against the land, building, or structure involved in the violation by recording a copy of the final decision and order requiring payment of the fines or costs with the register of deeds for the county in which the land, building, or structure is located. The order shall not be recorded unless a legal description of the property is incorporated in or attached to the order. The lien is effective immediately upon recording of the order with the register of deeds.

(2) An order recorded with a register of deeds under subsection (1) constitutes notice of the pendency of the lien. In addition, the city shall send a written notice of the lien, and any subsequent attachments under subsection (9), by first-class mail to the owner of record of the land, building, or structure at the owner's last known address.

(3) A lien under this section may be enforced and discharged by the city in the manner prescribed by its charter, in the same manner as are liens for delinquent taxes under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, or by an ordinance duly passed by the governing body of the city. However, property Property that is exempt as a principal residence under section 7cc of the general property tax act, 1893 PA 206, MCL 211.7cc, is not subject to forfeiture, foreclosure, and sale under sections 78 to 79a of the general property tax act, 1893 PA 206, MCL 211.78 to 211.79a, for nonpayment of a civil fine or costs or an installment ordered under section 4q unless the property is also subject to forfeiture, foreclosure, and sale under sections 78 to 79a of the general property tax act, 1893 PA 206, MCL 211.78 to 211.79a, for delinquent property taxes.

(4) A lien created under this section has priority over any other lien unless 1 or more of the following apply:

(a) The other lien is a lien for taxes or special assessments.

(b) The other lien is was created before May 1, 1994.

(d) The other lien is was recorded before the lien under this section is recorded.

(5) A city may institute an action in circuit court for the collection of a judgment imposed by an order under section 4q for a blight violation. However, an An attempt by the a city to collect the a judgment by any process does not invalidate or waive the a lien upon the land, building, or structure.

(6) A lien under this section expires 10 years after a copy of the order imposing a fine or costs, or both, is recorded, unless within that time an action to enforce the lien is commenced.

(7) A default in the payment of a civil fine or costs under section 4q or an installment of the fine or costs may be collected by a means authorized for the enforcement of a court judgment under chapter 40 or 60 of the revised judicature act of 1961, 1961 PA 236, MCL 600.4001 to 600.4065, and MCL 600.6001 to 600.6098.

(8) A city shall not commence an action to enforce a lien under this section if the city has commenced an action for a writ of garnishment with respect to the unpaid fine, costs, or payment under section 4027 of the revised judicature act of 1961, 1961 PA 236, MCL 600.4027.

(9) If a city obtains a lien under subsection (1), the lien shall attach to any other land, building, or structure in this state found to be currently owned or subsequently purchased by the defendant. The lien shall not be enforceable against the land, building, or structure described in this subsection unless the following requirements are met:

(a) A legal description of the land, building, or structure is attached or subsequently added to, or otherwise incorporated in, the copy of the final decision and order that is recorded with the register of deeds under subsection (1).

(b) A certified copy of the documents described in subdivision (a) is deposited in the office of the register of deeds in the county where the land, building, or structure is located.

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.