BILL NUMBER: SB 1427ENROLLED BILL TEXT PASSED THE SENATE AUGUST 19, 2010 PASSED THE ASSEMBLY AUGUST 5, 2010 AMENDED IN ASSEMBLY AUGUST 2, 2010 AMENDED IN SENATE MAY 12, 2010 AMENDED IN SENATE APRIL 19, 2010 INTRODUCED BY Senator Price FEBRUARY 19, 2010 An act to add Sections 2929.4 and 2929.45 to the Civil Code, relating to foreclosures. LEGISLATIVE COUNSEL'S DIGEST SB 1427, Price. Foreclosures: property maintenance. Existing law, until January 1, 2013, requires a legal owner to maintain vacant residential property purchased at a foreclosure sale, or acquired by that owner through foreclosure under a mortgage or deed of trust. Existing law authorizes a governmental entity to impose civil fines and penalties for failure to maintain that property of up to $1,000 per day per violation. This bill would require a governmental entity, prior to imposing a fine or penalty for failure to maintain a vacant property that is subject to a notice of default, that is purchased at a foreclosure sale, or that is acquired through foreclosure, to provide the owner of that property with a notice of the violation and an opportunity to correct the violation. This notice requirement would not apply if the governmental entity determines that a specific condition of the property threatens public health or safety. The bill would further provide that the costs of nuisance abatement measures taken by a governmental entity with regard to property that is subject to a notice of default, that is purchased at a foreclosure sale, or acquired through foreclosure, shall not exceed the actual and reasonable costs of nuisance abatement. This bill would also prohibit a governmental entity from imposing an assessment or lien for the costs of nuisance abatement prior to the adoption of those costs by the elected officials of that governmental entity at a public hearing. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 2929.4 is added to the Civil Code, to read: 2929.4. (a) Prior to imposing a fine or penalty for failure to maintain a vacant property that is subject to a notice of default, that is purchased at a foreclosure sale, or that is acquired through foreclosure under a mortgage or deed of trust, a governmental entity shall provide the owner of that property with a notice of the violation and an opportunity to correct that violation. (b) This section shall not apply if the governmental entity determines that a specific condition of the property threatens public health or safety. SEC. 2. Section 2929.45 is added to the Civil Code, to read: 2929.45. (a) An assessment or lien to recover the costs of nuisance abatement measures taken by a governmental entity with regard to property that is subject to a notice of default, that is purchased at a foreclosure sale, or that is acquired through foreclosure under a mortgage or deed of trust, shall not exceed the actual and reasonable costs of nuisance abatement. (b) A governmental entity shall not impose an assessment or lien unless the costs that constitute the assessment or lien have been adopted by the elected officials of that governmental entity at a public hearing.