[As Amended by House on Final Action]
Session of 1999
By Representative Haley

10             AN  ACT concerning cities; relating to the rehabilitation of abandoned
11             property; amending K.S.A. 79-3102 and K.S.A. 1998 Supp. 12-1750,
12             12-1752, 12-1753, 12-1756a, 12-1756b, 12-1756c, 12-1756d, 12-1756e
13             and 12-1756f and repealing the existing sections.
15       Be it enacted by the Legislature of the State of Kansas:
16             Section  1. K.S.A. 1997 Supp. 12-1750 is hereby amended to read as
17       follows: 12-1750. As used in this act:
18             (a) "Structure" means any building, wall or other structure.
19             (b) "Enforcing officer" means the building inspector or other officer
20       designated by ordinance and charged with the administration of the pro-
21       visions of this act.
22             (c) "Abandoned property" means any residential real estate for which
23       taxes are delinquent for the preceding two years and which has been
24       unoccupied continuously by persons legally in possession for the preced-
25       ing one year.
26             (d) "Organization" means any nonprofit corporation organized under
27       the laws of this state and which has among its purposes the improvement
28       of housing "Person" means any individual or not-for-profit corporation
29       organized under the laws of the state of Kansas.
30             (e) "Rehabilitation" means the process of improving the property,
31       including, but not limited to, bringing property into compliance with ap-
32       plicable fire, housing and building codes.
33             (f) "Parties in interest" means any owner or owners of record, judg-
34       ment creditor, tax purchaser or other party having any legal or equitable
35       title or interest in the property.
36             (g) "Last known address" includes the address where the property is
37       located, or the address as listed in the tax records.
38             (h) "Low or moderate income housing" means housing for persons
39       and families with incomes within the income limitations prescribed by
40       the department of housing and urban development pursuant to section 8
41       of the federal housing and community development act of 1937, as
42       amended.
43             Sec.  2. K.S.A. 1998 Supp. 12-1752 is hereby amended to read as

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  1       follows: 12-1752. (a) Whenever the enforcing officer files with the gov-
  2       erning body of the city a statement in writing that any structure, describ-
  3       ing the same and where located, is unsafe or dangerous or is abandoned
  4       property, the governing body, by resolution, shall fix a time and place at
  5       which the owner, the owner's agent, any lienholders of record and any
  6       occupant of such structure may appear and show cause why such structure
  7       should not be condemned and ordered repaired or demolished in the
  8       case of unsafe or dangerous structures or rehabilitated in the case of
  9       abandoned property. Such resolution shall be published once each week
10       for two consecutive weeks on the same day of each week. At least 30 days
11       shall elapse between the last publication and the date set for the hearing.
12       A copy of the resolution shall be mailed by certified mail within three
13       days after its first publication to each such owner, agent, lienholder and
14       occupant, at the last known address and shall be marked "deliver to ad-
15       dressee only."
16             (b) Cities located in Wyandotte county shall be subject to the follow-
17       ing procedure prior to making any orders concerning abandoned property
18       pursuant to subsection (a).
19             (1) A governing body shall establish and appoint the members of an
20       abandoned property review authority to review and set priorities for the
21       demolition or rehabilitation of abandoned structures. The authority shall
22       consist of at least five members. One member shall be a licensed architect.
23       One member shall be an employee of the unified government of Wyandotte
24       county and Kansas City, Kansas. One member shall be the county ap-
25       praiser or the appraiser's designee. Other members shall be selected at
26       large, but shall be residents of the county. The authority shall elect a
27       chairperson from among its members and shall meet as frequently as the
28       authority designates.
29             The authority shall cooperate with the enforcing officer to compile a
30       list of abandoned property within the city or property which may be
31       deemed dangerous or unsafe. The authority shall evaluate the property
32       so identified to determine the suitability of the property for rehabilitation.
33       Property which is structurally sound and or could be rehabilitated for
34       less than the cost of razing the property shall be designated as low-priority
35       property. Property which contains some structural flaws, but which may
36       be suitable for rehabilitation shall be deemed medium-priority property.
37       Property which is dangerous and not suitable for rehabilitation shall be
38       deemed high-priority property.
39             The authority shall develop a list of persons who are interested in re-
40       habilitating abandoned property. Such list shall contain the names and
41       addresses of persons so interested. The governing body of cities subject to
42       this subsection shall provide written notice of low-priority property which
43       may be available for rehabilitation to the individuals listed.

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  1             (2) The governing body of the city shall apply the priorities estab-
  2       lished by the authority in scheduling properties for demolition. All high-
  3       priority properties shall be razed before a governing body may authorize
  4       demolition of medium-priority or low-priority properties unless legal or
  5       other extenuating circumstances significantly delay demolition of all such
  6       properties. All medium-priority property shall be demolished before low-
  7       priority property unless legal or other circumstances significantly delay
  8       demolition of all such properties.
  9             Sec.  3. K.S.A. 1998 Supp. 12-1753 is hereby amended to read as
10       follows: 12-1753. (a) On the date fixed for hearing or any adjournment
11       thereof, the governing body shall hear all evidence submitted by the
12       owner, the owner's agent, lienholders of record and occupants having an
13       interest in such structure as well as evidence submitted by the enforcing
14       officer filing the statement and shall make findings by resolution. If the
15       governing body of the city finds that such structure is unsafe or dangerous,
16       such resolution shall direct the structure to be repaired or removed and
17       the premises made safe and secure. If the governing body of the city finds
18       that such structure is abandoned property, the governing body may au-
19       thorize the rehabilitation of such property as provided by K.S.A. 1998
20       Supp. 12-1756a, and amendments thereto. The governing body of any city
21       located in Wyandotte county shall not order any property razed if a per-
22       son has submitted a proposal which the authority determines would re-
23       habilitate such property within 18 months at a cost less than the cost of
24       razing and removing of such property. Such
25             (b) The resolution required by subsection (a) shall be published once
26       in the official city paper and a copy mailed to the owners, agents, lien-
27       holders of record and occupants in the same manner provided for the
28       notice of hearing. The resolution shall fix a reasonable time within which
29       the repair or removal of such structure shall be commenced and a state-
30       ment that if the owner of such structure fails to commence the repair or
31       removal of such structure within the time stated or fails to diligently
32       prosecute the same until the work is completed, the governing body will
33       cause the structure to be repaired or razed and removed in the case of
34       unsafe or dangerous structures or rehabilitated in the case of abandoned
35       property.
36             Sec.  4. K.S.A. 1998 Supp. 12-1756a is hereby amended to read as
37       follows: 12-1756a. (a) An organization Any person may file a petition with
38       the district court for an order for temporary possession of property if:
39             (1) The property has been declared abandoned pursuant to K.S.A.
40       12-1753, and amendments thereto;
41             (2) the organization person intends to rehabilitate the property and
42       use the property as housing for low and moderate income persons and
43       families; and

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  1             (3) the organization person has sent notice to the enforcing officer
  2       and the parties in interest of the property, by certified or registered mail,
  3       mailed to their last known address and posted on the property at least 30
  4       days but not more than 60 days before the date the petition is filed, of
  5       the organization's person's intent to file a petition for possession under
  6       K.S.A. 12-1750 through 12-1756e, and amendments thereto.
  7             (b) The proceeding shall be commenced by filing a verified petition
  8       in the district court in the county in which the property is located. The
  9       petition shall state that the conditions specified in subsection (a) exist. All
10       parties in interest of the property shall be named as defendants in the
11       petition. Summons shall be issued and service shall be made pursuant to
12       K.S.A. 60-303, and amendments thereto. Service may be made by pub-
13       lication if the organization petitioner with due diligence is unable to make
14       service of summons upon a defendant pursuant to subsection (a)(3) of
15       K.S.A. 60-307, and amendments thereto.
16             (c) Any defendant may file as part of such defendant's answer, as an
17       affirmative defense, a plan for the rehabilitation of the property. The
18       court shall grant the defendant 90 days to bring the property into com-
19       pliance with applicable fire, housing and building codes. The court, for
20       good cause shown, may extend the ninety-day compliance period. If the
21       property is brought into such compliance within the ninety-day period or
22       extension of time thereof, the petition shall be dismissed. If the defendant
23       fails to bring the property into such compliance within the ninety-day
24       period or extension of time thereof, or if the defendant's plan is otherwise
25       insufficient, the defendant's affirmative defense shall be stricken.
26             (d) At the hearing on the organization's petition, the organization
27       petitioner shall submit to the court a plan for the rehabilitation of the
28       property and present evidence that the organization petitioner has ade-
29       quate resources to rehabilitate and thereafter manage the property. For
30       the purpose of developing such a plan, representatives of the organization
31       the petitioner or the petitioner's designees may be permitted entry onto
32       the property by the court at such times and on such terms as the court
33       may deem appropriate.
34             (e) The court shall make its own determination as to whether the
35       property is in fact abandoned consistent with the terms of K.S.A. 12-1750
36       through 12-1756e, and amendments thereto.
37             (f) If the court approves the petition, the court shall enter an order
38       approving the rehabilitation plan and granting temporary possession of
39       the property to the organization petitioner. The organization petitioner,
40       subject to court approval, may enter into leases or other agreements in
41       relation to the property. Whether the court approves or denies the peti-
42       tion, the organization petitioner shall provide the governing body a copy
43       of the order within 10 days of the organization's petitioner's receipt or

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  1       knowledge of such order.
  2             Sec.  5. K.S.A. 1998 Supp. 12-1756b is hereby amended to read as
  3       follows: 12-1756b. An organization Any person which has possession of
  4       property pursuant to K.S.A. 12-1756a, and amendments thereto, shall file
  5       an annual report with the governing body of the city concerning the re-
  6       habilitation and use of the property. The city shall require reports and
  7       status dates to be filed as it deems appropriate under the circumstances
  8       but no less frequently than once a year. The report shall include state-
  9       ments of all expenditures made by the organization person including, but
10       not limited to, payments for the rehabilitation, operation and mainte-
11       nance of and repairs to the property, and for real estate taxes, and pay-
12       ments to mortgagees and lienholders during the preceding year and shall
13       include statements of all income and receipts from the property for the
14       preceding year.
15             Sec.  6. K.S.A. 1998 Supp. 12-1756c is hereby amended to read as
16       follows: 12-1756c. The owner of property of which temporary possession
17       has been transferred to an organization any person pursuant to K.S.A.
18       12-1756a, and amendments thereto, shall be entitled to regain possession
19       of the property by petitioning to the district court of the county in which
20       such property is located for restoration of possession and, upon notice to
21       the organization such person for a hearing on such petition. At the hear-
22       ing, the court shall determine proper compensation to the organization
23       such person for its expenditures, including management fees, based on
24       the organization's such person's reports to the court. The court, in deter-
25       mining the proper compensation to the organization person, may consider
26       income or receipts received from the property by the organization person.
27       After the owner pays the compensation to the organization person as
28       determined by the court, the owner shall resume possession of the prop-
29       erty, subject to all existing rental agreements whether written or verbal,
30       entered into by the organization person.
31             Sec.  7. K.S.A. 1998 Supp. 12-1756d is hereby amended to read as
32       follows: 12-1756d. If property of which temporary possession has been
33       transferred to an organization a person pursuant to K.S.A. 12-1756a, and
34       amendments thereto, is sold for unpaid taxes, an organization a person
35       with temporary possession may redeem the property in the same manner
36       as the owner and amounts paid to redeem the property shall be included
37       as expenditures in the organization's such person's report to the court.
38             Sec.  8. K.S.A. 1998 Supp. 12-1756e is hereby amended to read as
39       follows: 12-1756e. If an owner of property of which temporary possession
40       has been transferred to an organization a person pursuant to K.S.A. 12-
41       1756a, and amendments thereto, takes no action to regain possession of
42       the property in the five-year period following the granting of temporary
43       possession of the property to the organization, the organization thereto,

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  1       such person may file a petition for judicial deed and upon due notice to
  2       the named defendants and an order may be entered granting a quit-claim
  3       judicial deed to the organization such person providing that the property
  4       shall be used for low and moderate income housing for at least a 10-year
  5       ten-year period after the deed is granted.
  6             Sec.  9. K.S.A. 1998 Supp. 12-1756f is hereby amended to read as
  7       follows: 12-1756f. The enforcing officer shall maintain a list of all organ-
  8       izations persons who are interested in rehabilitating abandoned property
  9       and who have requested to be included on such list. The organizations
10       persons on such list shall be given written notice of abandoned property
11       which may be available for rehabilitation by any such organization. The
12       enforcing officer may require that requests to be included on such list be
13       submitted annually to the enforcing officer.
14             Sec.  10. K.S.A. 79-3102 is hereby amended to read as follows: 79-
15       3102. (a) Before any mortgage of real property, or renewal or extension
16       of such a mortgage, is received and filed for record, there shall be paid
17       to the register of deeds of the county in which such property or any part
18       thereof is situated a registration fee of .26% of the principal debt or
19       obligation which is secured by such mortgage. In the event the mortgage
20       states that an amount less than the entire principal debt or obligation will
21       be secured thereby, the registration fee shall be paid on such lesser
22       amount.
23             (b) If the governing body of any city located in Wyandotte county
24       has created a housing development fund pursuant to section 11, prior to
25       registration of any mortgage of real property located in such city, there
26       shall be paid to the register of deeds of Wyandotte county an additional
27       fee of .04% of the principal debt or obligation which is secured by such
28       mortgage. The register of deeds shall deposit all moneys realized from the
29       additional fee in the city's housing development fund pursuant to section
30       11.
31             (b) (c) As used herein, "principal debt or obligation" shall not include
32       any finance charges or interest.
33             (c) (d) In any case where interest has been precomputed, the register
34       of deeds may require the person filing the mortgage to state the amount
35       of the debt or obligation owed before computation of interest.
36             (d) (e) No registration fee whatsoever shall be paid, collected or re-
37       quired for or on: (1) Any mortgage or other instrument given solely for
38       the purpose of correcting or perfecting a previously recorded mortgage
39       or other instrument; (2) any mortgage or other instrument given for the
40       purpose of providing additional security for the same indebtedness, where
41       the registration fee herein provided for has been paid on the original
42       mortgage or instrument; (3) any mortgage or other instrument upon that
43       portion of the consideration stated in the mortgage tendered for filing

HB 2310--Am. on FA


  1       which is verified by affidavit to be principal indebtedness covered or in-
  2       cluded in a previously recorded mortgage or other instrument with the
  3       same lender or their assigns upon which the registration fee herein pro-
  4       vided for has been paid; (4) any lien, indenture, mortgage, bond or other
  5       instrument or encumbrance nor for the note or other promise to pay
  6       thereby secured, all as may be assigned, continued, transferred, reissued
  7       or otherwise changed by reason of, incident to or having to do with the
  8       migration to this state of any corporation, by merger or consolidation with
  9       a domestic corporation as survivor, or by other means, where the original
10       secured transaction, for which the registration fee has once been paid, is
11       thereby continued or otherwise acknowledged or validated; (5) any mort-
12       gage or other instrument given in the form of an affidavit of equitable
13       interest solely for the purpose of providing notification by the purchaser
14       of real property of the purchaser's interest therein; (6) any mortgage in
15       which a certified development corporation certified by the United States
16       small business administration participates pursuant to its community ec-
17       onomic development program; (7) any mortgage or other instrument
18       given for the sole purpose of changing the trustee; or (8) any mortgage
19       for which the registration fee is otherwise not required by law.
20             (e) (f) The register of deeds shall receive no additional fees or salary
21       by reason of the receipt of fees as herein provided. After the payment of
22       the registration fees as aforesaid the mortgage and the note thereby se-
23       cured shall not otherwise be taxable.
24             New Sec.  11. (a) Any city located in Wyandotte county, by adoption
25       of an ordinance, may create a housing development fund to assist persons
26       seeking to rehabilitate abandoned property. Such assistance may take the
27       form of grants or loans, but shall be provided only to individuals who have
28       taken possession of such property pursuant to K.S.A. 12-1750 et seq., and
29       amendments thereto. Moneys may be budgeted and transferred to such
30       fund from any source which may be lawfully utilized for such purposes.
31             (b) Moneys credited to such fund from annually budgeted transfers
32       shall not thereafter be subject to the provisions of K.S.A. 79-2925 through
33       79-2937, and amendments thereto. In making the budget of the city, the
34       amounts credited to, and the amount on hand in, such housing devel-
35       opment fund and the amount expended therefrom shall be shown thereon
36       for the information of taxpayers. Moneys in such fund may be invested
37       in accordance with K.S.A. 10-131, and amendments thereto, with the
38       interest credited to the fund. 
39       Sec.  12. [11.] K.S.A. 79-3102 and K.S.A. 1998 Supp. 12-1750, 12-
40       1752, 12-1753, 12-1756a, 12-1756b, 12-1756c, 12-1756d, 12-1756e and
41       12-1756f are hereby repealed.
42        Sec.  13. [12.] This act shall take effect and be in force from and after
43       its publication in the statute book.