AB 622

The statutes specify a procedure for municipalities (cities, villages, and towns)

to follow for the razing of old, dilapidated, or out-of-repair buildings. The

municipality may order the owner of such a building to repair it, if the building can

be made safe by reasonable repairs, or to raze it. If the cost of repair would exceed

a specified percentage in relation to the assessed value of the building, repairs are

presumed unreasonable. The order is served on the owner like a summons and

specifies a time within which the repairing or razing must be done. If the owner does

not comply with the order, the municipality may commence a legal action for a court

order requiring the owner to raze the building or may proceed to raze the building

through a public agency or by contract with a private party. The cost of razing the

building may be charged against the real estate on which the building was located

and, if so, becomes a lien on the real estate and may be assessed and collected as a

special tax. A first class city (Milwaukee) may enact ordinances with alternative or

additional provisions governing razing buildings.

This bill requires the plaintiff in a mortgage foreclosure action to post a surety

bond with the clerk of circuit court when the action is commenced. The bond is to

guarantee reimbursement by the plaintiff to the municipality in which the property

in foreclosure is located for up to $15,000 in costs incurred by the municipality if the

municipality razes a building on the property during the foreclosure action. The

clerk is required to return the bond to the plaintiff if a building on the property is not

razed before the first of any of the following occurs: 1) the foreclosure action is

dismissed; 2) the mortgagor redeems the property (pays the amount owed); or 3) the

court confirms the sale of the property at the end of the foreclosure action. The bill

prohibits any of the costs incurred by the plaintiff from being recovered from the

mortgagor or from being included in the amount of the judgment, in the amount of

any deficiency, in the amount that the mortgagor must pay to redeem the property,

or in the costs of the foreclosure action.