SB88, s. 4 14Section 4. 254.595 (4) of the statutes is amended to read:
SB88,4,2315 254.595 (4) The receiver appointed under this section shall have a lien, for the
16expenses necessarily incurred to abate the nuisance or in the execution of the order,
17upon the premises upon or in respect of which the work required by the order has
18been done or expenses incurred. The municipality that sought the order declaring
19the property to be a nuisance or human health hazard may also recover its expenses
20and the expenses of the receiver under subs. (3) (a) and (5), to the extent that the
21expenses are not reimbursed under s. 632.103 (2) from funds withheld from an
22insurance settlement, by maintaining an action against the property owner under
23s. 74.53.
SB88, s. 5 24Section 5. 815.39 of the statutes is renumbered 815.39 (1) and amended to
25read:
SB88,5,6
1815.39 (1) Within Except as provided in sub. (2), within one year after an
2execution sale the real estate sold, or any lot, tract or portion that was separately
3sold, may be redeemed by the payment to the purchaser, to the purchaser's personal
4representatives or assigns, or to the then sheriff of the county where such the real
5estate is situated, for the use of such purchaser, of the sum paid on the sale thereof,
6together with the interest from the time of the sale.
SB88, s. 6 7Section 6. 815.39 (2) of the statutes is created to read:
SB88,5,98 815.39 (2) If an execution sale is for a lien filed under s. 823.23 (5), the period
9of redemption under sub. (1) is 2 months.
SB88, s. 7 10Section 7. 815.44 (1) of the statutes is amended to read:
SB88,5,1411 815.44 (1) Who may acquire. In case the premises sold on execution or any part
12of them are not redeemed within the year prescribed by ss. 815.39 (1) and 815.40 then
13the interest of the purchaser may be acquired within 3 months after the expiration
14of the redemption period by the persons and on the terms prescribed in this section.
SB88, s. 8 15Section 8. 823.23 of the statutes is created to read:
SB88,5,16 16823.23 Receivership for public nuisances. (1) Definitions. In this section:
SB88,5,2017 (a) "Abatement" means the removal or suspension of any condition at a
18residential property that has been adjudicated to constitute a nuisance.
19"Abatement" may include the demolition of some or all of the improvements on the
20residential property if the residential property is unoccupied.
SB88,5,2321 (b) "Interested party" means any person that possesses any legal or equitable
22interest of record in the residential property, including the holder of any lien or
23encumbrance of record on the residential property.
SB88,5,2424 (c) "Purchase money security interest" means any of the following:
SB88,6,3
11. The interest of a vendor under a land contract relating to the residential
2property if the contract was recorded prior to the issuance of the notice under sub.
3(2) (b).
SB88,6,64 2. The interest of a mortgagee under a purchase money mortgage relating to
5the residential property if the mortgage was recorded prior to the issuance of the
6notice under sub. (2) (b).
SB88,6,97 3. The interest of a beneficiary under a purchase money trust deed relating to
8the residential property if the trust deed was recorded prior to the issuance of the
9notice under sub. (2) (b).
SB88,6,1110 (d) "Rehabilitate" means to make any improvements or corrections necessary
11to remove a threat to public health, safety, or welfare.
SB88,6,1512 (f) "Residential property" means land, together with all the improvements
13erected on the land, that is located in a 1st or 2nd class city and used or intended to
14be used for residential purposes, including single-family, duplex, and multifamily
15structures, and mixed-use structures that have one or more residential units.
SB88,6,19 16(2) Receivership for buildings that constitute a nuisance; procedure. (a) If
17a residential property is alleged to be a nuisance under this chapter or s. 254.595, the
181st or 2nd class city in which the property is located may apply to the circuit court
19for the appointment of a receiver to abate or rehabilitate the residential property.
SB88,6,2420 (b) At least 60 days before filing an application for the appointment of a receiver
21under par. (a), the 1st or 2nd class city shall give written notice by 1st class mail to
22all owners, owner's agents, and interested parties at their last-known address of the
23intent to file the application and by publication as a class 1 notice under ch. 985. The
24notice shall include all of the following information:
SB88,6,2525 1. The address and other information that identifies the residential property.
SB88,7,2
12. The conditions of the residential property that constitute a nuisance and that
2resulted in the decision to apply for a receiver.
SB88,7,53 3. The name, address, and telephone number of the person or department
4where additional information can be obtained concerning the nuisance and the
5action necessary to abate the nuisance.
SB88,7,76 4. That the appointment of a receiver may be requested unless action is taken
7to abate the nuisance within 60 days after receipt of the notice.
SB88,7,128 (c) If a notice sent under par. (b) is recorded with the register of deeds in the
9county in which the residential property is located, the notice is considered to have
10been served, as of the date the notice is recorded, on any person claiming an interest
11in the residential property as a result of a conveyance from the owner of record unless
12the conveyance was recorded before the recording of the notice.
SB88,7,1713 (d) A city may not apply for the appointment of a receiver under this subsection
14if an interested party has commenced and is prosecuting in a timely fashion an action
15or other judicial or administrative proceeding to foreclose a security interest on the
16residential property, or to obtain specific performance of, or forfeit, the purchaser's
17interest in a land contract.
SB88,7,2018 (e) Notice of the application for the appointment of a receiver under this section
19shall be served on all owners, owners' agents, and interested parties. At the time that
20the application is filed with the court, the applicant shall file a lis pendens.
SB88,8,221 (f) If, following the application for appointment of a receiver, one or more of the
22interested parties elects to abate the nuisance or rehabilitate the residential
23property, the party or parties shall be required to post security in such an amount
24and character as the court considers appropriate to ensure timely performance of all
25work necessary to abate the nuisance or rehabilitate the residential property, as well

1as satisfy such other conditions as the court considers appropriate for timely
2completion of the abatement or rehabilitation.
SB88,8,93 (g) In the event that all interested parties elect not to act under par. (f) or to
4timely perform work undertaken under par. (f), the court shall make a determination
5as to whether the residential property is a threat to public health, safety, or welfare.
6The court shall determine if abatement or rehabilitation is required, the extent of the
7abatement or rehabilitation necessary, and the scope of work necessary to eliminate
8the conditions and shall appoint a receiver to complete the abatement or
9rehabilitation.
SB88,8,1010 (h) The court shall appoint a receiver who is one of the following:
SB88,8,1311 1. A housing authority, redevelopment company, redevelopment corporation,
12redevelopment authority, or community development authority under ss. 66.1201,
1366.1301, 66.1331, 66.1333, or 66.1335.
SB88,8,1514 2. A nonprofit corporation, the primary purpose of which is the improvement
15of housing conditions within the city in which the property is located.
SB88,8,1816 (i) If the court is unable to appoint a receiver from one of the entities listed in
17par. (h), the court may appoint as a receiver any other person that the court
18determines to be competent.
SB88,8,2019 (j) A receiver appointed by the court pursuant to this section shall not be
20required to give security or bond as a condition of the appointment.
SB88,8,23 21(3) Authority of receiver; financing agreements; fee. (a) A receiver
22appointed under sub. (2) (h) or (i) shall have the authority to do all of the following
23unless specifically limited by the court:
SB88,9,424 1. Take possession and control of the residential property including the right
25to enter into and terminate tenancies, manage and maintain the property under chs.

1704 and 799 and rules related to residential rental practices promulgated under s.
2100.20 (2), and charge and collect rents derived from the residential property,
3applying the sum of those rents to the costs incurred due to the abatement or
4rehabilitation and receivership.
SB88,9,75 2. Negotiate contracts and pay all expenses associated with operation and
6conservation of the residential property including all utility, fuel, custodial, repair,
7or insurance expenses.
SB88,9,108 3. Pay all accrued property taxes, penalties, assessments, and other charges
9imposed on the residential property by a unit of government including any charges
10accruing during the pendency of the receivership.
SB88,9,1211 4. Dispose of any or all abandoned personal property found at the residential
12property.
SB88,9,1413 5. Enter into contracts and pay for the performance of any work necessary to
14complete the abatement or rehabilitation.
SB88,9,2015 (b) In addition to the powers under par. (a), the receiver may, under such terms
16and conditions as a court shall allow, enter into financing agreements with public or
17private lenders and encumber the property so as to have moneys available to abate
18the nuisance or rehabilitate the property. The receiver may give a holder of a
19purchase money security interest who received notice under sub. (2) the first
20opportunity to lend the money under this paragraph.
SB88,9,2321 (c) A receiver may charge an administration fee at an hourly rate approved by
22the court or at a rate of 20% of the total cost of the abatement or rehabilitation,
23whichever the court considers more appropriate.
SB88,9,25 24(4) Limits on landlord authority. (a) In this subsection, "anticipated action"
25means a statement or statements by a person authorized by ordinance to bring an

1action under this section that leads a landlord to conclude that an action under this
2section may be commenced.
SB88,10,133 (b) A landlord or receiver, or any agent of a landlord or receiver, of a residential
4rental unit that is the subject of any action, or anticipated action, to abate an alleged
5nuisance under this section may not with respect to the tenant of the rental unit,
6increase rent, decrease services, bring a court proceeding for possession of the unit,
7refuse to renew the rental agreement, or threaten or attempt to do any of the
8foregoing if the tenant, in a court proceeding commenced by the tenant, or landlord,
9establishes by a preponderance of the credible evidence that the foregoing conduct
10would not have occurred but for the bringing of an action for the abatement of a
11nuisance under this section with respect to the rental unit or the anticipation of such
12an action being brought. To prevail, the tenant must also establish by a
13preponderance of the evidence that one of the following applies:
SB88,10,1414 1. No nuisance was found with respect to the rental unit.
SB88,10,1515 2. The tenant was found not to cause a nuisance with respect to the rental unit.
SB88,10,1716 3. If a nuisance exists under this section, the conduct specified in this
17paragraph is not necessary to abate the nuisance.
SB88,10,2018 (d) Any action or inaction by a landlord, receiver, or agent described in par. (b)
19is subject to chs. 704 and 799, and any court proceeding regarding such an action or
20inaction shall be heard by the following court:
SB88,10,2221 1. If the court proceeding is brought by a receiver, by the court that appointed
22the receiver.
SB88,10,2423 2. If the court proceeding is brought by the tenant or landlord, in small claims
24court as an eviction action.
SB88,11,2
1(e) In any action taken under par. (b), the notice given to the tenant must state
2the basis for the action and the right of the tenant to contest the action.
SB88,11,9 3(5) Review of expenditures by court; lien for unpaid expenses. (a) All moneys
4the receiver expends and all of the costs and obligations that he or she incurs in
5performing the abatement or rehabilitation, including the receiver's administrative
6fee, shall be reviewed by the court for reasonableness and necessity. To the extent
7that the court finds the moneys, costs, or obligations to be reasonable and necessary,
8it shall issue an order reciting this fact as well as the amount found to be reasonable
9and necessary.
SB88,11,1510 (b) If all of the costs and obligations that the court found to be reasonable and
11necessary under par. (a) have not been paid, the court shall issue a judgment for the
12unpaid amount and file that judgment with the office of the clerk of court within 60
13days after the receiver files a statement of those unpaid costs and obligations with
14the court and that judgment shall constitute a lien on the residential property from
15the date of the filing of the judgment.
SB88,11,23 16(6) Effect on purchase money security interest of lien for unpaid abatement
17expenses.
(a) The issuance of the notice under sub. (2) (b) shall constitute a default
18for waste under any purchase money security interest relating to the residential
19property subject to the notice, and if any violations of the building code listed in the
20notice are not corrected within 30 days after the mailing of the notice, the vendor,
21mortgagee, or beneficiary under any purchase money security interest may
22commence proceedings to exercise the remedies set forth in the purchase money
23security interest.
SB88,12,3
1(b) A lien created under sub. (5) (b) shall be prior and superior to any purchase
2money security interest in the residential property if all of the following apply to that
3purchase money security interest:
SB88,12,64 1. The city gave the holder of the purchase money security interest and any
5vendee, mortgagor, or grantor under such purchase money security interest the
6notice under sub. (2) (b).
SB88,12,107 2. The holder of the purchase money security interest has not, prior to the
8appointment of a receiver under sub. (2) (g), initiated proceedings to foreclose the
9purchase money security interest, to abate the conditions resulting in issuance of the
10notice under sub. (2) (b) or to gain possession of the property.
SB88,12,1511 (c) Except for property tax liens, assessment liens, and purchase money
12security interests not included in par. (b), a lien created under sub. (5) (b) shall be
13prior and superior to all other liens, mortgages, and encumbrances against the
14residential property upon which it is imposed without regard to the date the other
15liens, mortgages, or encumbrances were attached to the residential property.
SB88,12,18 16(7) Termination of receivership. (a) The receivership into which the court
17placed the residential property under sub. (2) (h) or (i) shall terminate only by an
18order of the court.
SB88,12,2119 (b) The court shall terminate the receivership if the residential property's
20owner or owner's agent or an interested party or the receiver show the court all of the
21following:
SB88,12,2222 1. That the abatement or rehabilitation has been completed.
SB88,13,223 2. That the costs and obligations incurred due to the abatement or
24rehabilitation, including the receiver's administrative fee, have been paid by an

1owner, owner's agent, or interested party or that a lien has been filed pursuant to sub.
2(5).
SB88,13,43 3. That the owner, owner's agent, or interested party will manage the
4residential property in conformance with applicable housing codes.
SB88,13,65 (c) The court shall terminate the receivership if the receiver shows the court
6one of the following:
SB88,13,77 1. That the abatement or rehabilitation is not feasible.
SB88,13,98 2. That the improvements on the property have been demolished by the 1st or
92nd class city.
SB88,13,1010 (End)
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