CHAPTER 90 HOUSE BILL No. 2122 An Act concerning abandoned property; relating to the rehabilitation thereof; amending
K.S.A. 12-1750, 12-1756a, 12-1756b and 12-1756e and repealing the existing sections. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 12-1750 is hereby amended to read as follows: 12-
1750. As used in this act:

      (a) ``Structure'' means any building, wall or other structure.

      (b) ``Enforcing officer'' means the building inspector or other officer
designated by ordinance and charged with the administration of the pro-
visions of this act.

      (c) ``Abandoned property'' means any residential real estate for which
taxes are delinquent for the preceding two years and which has been
unoccupied continuously by persons legally in possession for the preced-
ing one year 180 days.

      (d) ``Organization'' means any nonprofit corporation organized under
the laws of this state and which has among its purposes the improvement
of housing.

      (e) ``Rehabilitation'' means the process of improving the property,
including, but not limited to, bringing property into compliance with ap-
plicable fire, housing and building codes.

      (f) ``Parties in interest'' means any owner or owners of record, judg-
ment creditor, tax purchaser or other party having any legal or equitable
title or interest in the property.

      (g) ``Last known address'' includes the address where the property is
located, or the address as listed in the tax records.

      (h) ``Low or moderate income housing'' means housing for persons
and families with incomes within the income limitations prescribed by
the department of housing and urban development pursuant to section 8
of the federal housing and community development act of 1937, as
amended.

      Sec.  2. K.S.A. 12-1756a is hereby amended to read as follows: 12-
1756a. (a) An organization may file a petition with the district court for
an order for temporary possession of property if:

      (1) The property has been declared abandoned pursuant to K.S.A.
12-1753 meets the definition of abandoned as set forth in K.S.A. 12-1750,
and amendments thereto;

      (2) the organization intends to rehabilitate the property and use the
property as housing for low and moderate income persons and families;
and

      (3) the organization has sent notice to the enforcing officer and the
parties in interest of the property, by certified or registered mail, mailed
to their last known address and posted on the property at least 30 20 days
but not more than 60 days before the date the petition is filed, of the
organization's intent to file a petition for possession under K.S.A. 12-1750
through 12-1756e, and amendments thereto.

      (b) The proceeding shall be commenced by filing a verified petition
in the district court in the county in which the property is located. The
petition shall state that the conditions specified in subsection (a) exist. All
parties in interest of the property shall be named as defendants in the
petition. Summons shall be issued and service shall be made pursuant to
K.S.A. 60-303, and amendments thereto. Service may be made by pub-
lication if the organization with due diligence is unable to make service
of summons upon a defendant pursuant to subsection (a)(3) of K.S.A. 60-
307, and amendments thereto.

      (c) Any defendant may file as part of such defendant's answer, as an
affirmative defense, a plan for the rehabilitation of the property and ev-
idence of capacity and resources necessary to complete rehabilitation of
the property. The court shall grant the defendant 90 days to bring the
property into compliance with applicable fire, housing and building codes
and to pay all delinquent ad valorem property tax. The court, for good
cause shown, may extend the ninety-day compliance period. If the prop-
erty is brought into such compliance within the ninety-day period or ex-
tension of time thereof, the petition shall be dismissed. For good cause
shown, the court may extend the ninety-day compliance period. If the
property is brought into such compliance within the ninety-day period or
extension of time thereof, the petition shall be dismissed. If the defendant
fails to bring the property into such compliance within the ninety-day
period or extension of time thereof, or if the defendant's plan is otherwise
insufficient, the defendant's affirmative defense shall be stricken.

      (d) At the hearing on the organization's petition, the organization
shall submit to the court a plan for the rehabilitation of the property and
present evidence that the organization has adequate resources to reha-
bilitate and thereafter manage the property. For the purpose of devel-
oping such a plan, representatives of the organization may be permitted
entry onto the property by the court at such times and on such terms as
the court may deem appropriate.

      (e) The court shall make its own determination as to whether the
property is in fact abandoned consistent with the terms of K.S.A. 12-1750
through 12-1756e, and amendments thereto.

      (f) If the court approves the petition, the court shall enter an order
approving the rehabilitation plan and granting temporary possession of
the property to the organization. The organization, subject to court ap-
proval, may enter into leases or other agreements in relation to the prop-
erty. Whether the court approves or denies the petition, the organization
shall provide the governing body a copy of the order within 10 30 days
of the organization's receipt or knowledge of such order.

      Sec.  3. K.S.A. 12-1756b is hereby amended to read as follows: 12-
1756b. An organization which has possession of property pursuant to
K.S.A. 12-1756a, and amendments thereto, shall file an annual report with
the governing body of the city court concerning the rehabilitation and
use of the property. The city court shall require reports and status dates
to be filed as it deems appropriate under the circumstances but no less
frequently than once a year. The report shall include statements of all
expenditures made by the organization including, but not limited to, pay-
ments for the rehabilitation, operation and maintenance of and repairs to
the property, and for real estate taxes, and payments to mortgagees and
lienholders during the preceding year and shall include statements of all
income and receipts from the property for the preceding year.

      Sec.  4. K.S.A. 12-1756e is hereby amended to read as follows: 12-
1756e. If an owner of property of which temporary possession has been
transferred to an organization pursuant to K.S.A. 12-1756a, and amend-
ments thereto, takes no action to regain possession of the property in the
five-year period following the granting of temporary possession of the
property to the organization prior to the organization completing reha-
bilitation of the property, the organization may file a petition for judicial
deed to the property and. Upon due notice to the named defendants and,
an order may be entered granting a quit-claim judicial deed to the or-
ganization providing that the property shall be used for low and moderate
income housing for at least a 10-year period after the deed is granted . A
conveyance by judicial deed shall operate to extinguish all existing own-
ership interests in, liens on, and other interest in the property, except tax
liens or mechanics' liens.

      New Sec.  5. Any person who purchases a house from an organization
which has rehabilitated such house pursuant to K.S.A. 12-1750 et seq.,
and amendments thereto, shall agree to occupy such house for at least
three years following the date of taking title to such property.

 Sec.  6. K.S.A. 12-1750, 12-1756a, 12-1756b and 12-1756e are hereby
repealed.

 Sec.  7. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 16, 2003.
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