General Assembly Raised Bill No. 1339 seeks to amend existing laws concerning the assignment of liens for unpaid taxes and assessments on real property by municipalities. Key provisions include a requirement that any assignment executed on or after July 1, 2026, must be documented in a written contract that includes stipulations such as the accrual of interest on delinquent tax obligations at a rate of twelve percent per annum from the date of assignment. The bill also mandates that assignees provide written notice of the assignment to property owners and mortgage holders within sixty days, detailing the amount owed and other relevant information. Additionally, it establishes that attorney's fees for actions commenced on or after July 1, 2026, cannot exceed fifteen percent of any judgment entered, and no attorney's fees can be claimed until a foreclosure action is initiated.

Furthermore, the bill introduces new requirements for the assessment and collection of unpaid sewer assessments and water service charges, allowing municipalities to assign these liens to third parties while ensuring that assignees adhere to specific obligations, such as providing payoff statements and maintaining transparency with property owners. The legislation emphasizes the need for written contracts that outline communication protocols, timelines for foreclosure actions, and the assignee's compliance with legal standards. Overall, Raised Bill No. 1339 aims to enhance accountability and protect property owners in the lien assignment and foreclosure processes, while repealing certain sections of existing law to streamline these procedures.

Statutes affected:
Raised Bill: 12-195h, 7-254, 7-258, 7-239, 49-92o, 49-92p