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HomeMy WebLinkAboutAugust 26, 2008 Work SessionITS( L I E! S90 40th Avenue N.E., Columbia Heights, MN SS421-3878 (763} 706-3600 TDD (763} 706-3692 Visit Our Website at: www.ci.columbia-heights.mu.us .4'J.n~rn~rUTR.~Ttn~~ NOTICE OF CLTY COUNCIL MEETING to be held in the CITY OF COL tIMBIA .HEIGHTS As follotivs: Meeting of: Date of Meeting: Time of Meeting: Location: Purpose of Meeting: COLUMBIA HEIGHTS CITY COUNCIL TI~L~D:ii', .=~i_,T€,vST 2.3, ?i'if~i IMMIJDI:~TI/LY FOLL01'~IING TIE 7:()0 PtiI EDA ~'[ti1JTINC_ CONFLRINCIJ ROO~'I l «'ORIL Sr~SSiON 1. Discussion on Housing Issues (Including Rental Moratorium) The City of Columbia Heights does not discriminate on the basis of disability in the admission. or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the City Clerk at 763-706-3611 to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EOUAL OPPORTUNITY EMPLOYER C®LLTIVIBIA HEIGHTS CITY C®I11~vC'IL LETTER ~Inrlre~ecirn~ MPPiina nf' l~n1?11St 2h. 200R AGENDA SECTION: ORIGINATING DEPARTMENT: CITY MANAGER'S NO: 1 Community Development APPROVAL ITEM: Discussion. on Housing Issues BY: Scott Claric BY: (Including Rental Moratorium) DATE: August 20, 2008 BACKGROUND: On May 12, 2008 the City Council authorized an emergency moratorium on the issuance of new residential rental occupancy licenses. As stated within the resolution, the reason for this moratorium was based on the need far staff to study the effects of the City's rapidly increasing rental rates combined with the number of foreclosure properties. It is interesting to note that at the time of Ordinance passage, the Cit<,T had 2?? foreclosures a.~d as of the date of this ~•epart that number is 347, based on a reporting period starting on January 1, 2007. Over the past three months staff has reviewed issues relevant to the City's housing stock from three perspectives: 1} Single family homes a.~d the possibility of creating greater neighborhood identity 2) Rental licensing and whether additional regulatory controls or other types of programs could strengthen this portion of our community 3} Foreclosed properties and the City's ability to control the same. h1 addition to the above, staff has also spent a considerable amount of time looping at various funding opportunities (grants, loans, partnerships, etc.} to assist otu community. Attached with this main memorandum is a series of documents, which illustrates the existing housing conditions (sales, foreclosures, etc.), financial and program options. Staff will review these attachments so this memorandum will not detail the same. Based on our investigation and discussions to date, staff's recommendations are as follows: Recommendations: 1) Staff is of the opiiuon that existing rental license holders should not have any additional. regulations or special inspections placed upon the~~z. However, staff reeormncnds that any new or transferred rental licensed property have a "base inspection" completed by the City's Building Official. This review would be done under the auspices of the City's existing property maintenance code but a more rigorous test, then previously done, would be applied. Items such as condition of stairs, windows, roofs, deeps, outbuildings and a complete structural review ~=ould be completed. The concept is that the building official establishes the base level of a dwelling, per the maintenance code, and the Fire Department then continues with an asuZUa1 maintenance inspection. Staff recomil~ends that the City establish within their fee structure resolution an ilicreased rental fee for this first time review. At this time the Fire Department has a list of twenty new properties that are seeping new licenses. 2} Establislnnent of an Abandoned Property Ordinance. The intent of this regulation would be to establish the conditions by which dwellings can be deemed abandoned (attached is an outline that gives the parameters of a proposed program}. The key concept to this program is that if a building is deemed abandoned the City would remove the Certificate of Occupancy. A new Certificate would not be reissued until a property maintenance inspection was conducted on the property and certain minimum tluesholds were completed. Staff views that this type of program would ensure that severely damaged foreclosure properties could not be sold in the market, without the City having Leverage regarding the reuse of the building. 3) With these two new programs being unplemented, staff recommends that the rental maratoritun be lifted. As stated in item #1, approximately twenty individuals have contacted the City and will seek a license immediately. 4} The next major issue is what role does the City Council want to take regarding purchasing properties that are severally blighted and/or securing properties in areas that have been earmarked as redevelopment priorities. The three questions that this issue raises are establishing priorities far purchase, the ability of how to finance and then the end use of these properties (e.g., demolition, rehab, conversion of rental to single family, etc.). Attached is a summary of financing options for the City including usi~lg existing tax increment reserves and the most aggressive option, being the use of proceeds from a low interest, five-year loan, originating from FANNIL MAE (this is the Community Lending Program}. It is obvious that if tl~e City does want to aggressively pursue purchasing properties, as a method for neighborhood redevelopment, that the market conditions are at historically lows when comparing assessing tax values to sale prices. 5) Staff views that the above items are a start towards improving the City's housing stock. As a further recommendation., the staff will continue to explore other initiatives (this investigation is an inter-departmental. process). These efforts could include preparing amaual reports to measure community health, piloting a Neighborhood Action Plan program, Crime Free Multi-fanuly Housing Program, special neighborhood code enforcement/clean-up campaign program and working to establish outside partnerships to assist our efforts both financially and with programmatic thoughts and ideas. If any City Council lr~ember has questions or desires additional information prior to tl.e meeting please contact staff accordingly. Attaclunents: 1) Parameters for Vacaalt/Abandoned Property Ordinance 2) Examples of other City Ordinances 3) Examples of Abandoned Property Registration Data Base 4) Rental. Moratorium Ordinance 5) "Waiting List" for Rental Licenses 6) A Woodstock Institute Study on the "Effect of Single-Family Mortgage foreclosures on Property Values" 7}federal Reserve Subprime Loan Seliedule 8}Memo dated, August 8, 2008 Regarding "I-lousing Revenue Sources" 9) Notice of "foreclosure Workshop" for September 17, 2008 COUNCIL ACTION H:\City Council\Letters\2008~I-lousing Issues Work Session 8-26-2008 Parameters for Vacant/abandoned Pro~erty Ordinance This ordinance essentially will. affect foreclosure properties. The concept of the ordinance is if a house were declared vacant and/or abandoned the Certificate of Occupancy (CO) would be pulled on the house. In order to receive a new CO an intensive inspection of the property would be performed by the city, based on the existing property maintenance code. if corrections were issued, the corrections would have to be completed before a new CO is issued. Therefore no one could live in the house until the corrections are remedied. A significant fee would be charged to issue a new CO. Staffs have discussed this with the City Manger and City Attot-~zey, and agree that specific def nitions are necessary for vacant and abandoned property. Some things to consider when defining this ordinance. • People that leave for the winter • `Water shut off « Evidence by abatement action • Rental license revocation • Vandalism • Lack of exterior maintenance • Public safety calls • Utility service shut off • Property abandoned as evidence by public document According to Webster's New Dictionary Abandon is defined "to give up completely, to desert, um-estrained activity." Tlczccznt is defined "having nothing >11 it, not held occupied." used. on recent Council meetings and discussions of the public, staff proposes this type of ordinance to address some of the issues with foreclosures. There are several cities throughout the United States that have a similar ordinance in place; a summary table of these ordinances and cities is in your packet. The city of ivlinneapolis and St. Paul are two in Minnesota that have a similar ordinance. Sorne of the cities require the property to be registered with the city as vacant/abandoned and are required to secure the property. Some cities require the property to be inspected and maintained at the expense of the owner and maintained up to code. With Council direction staff will do more research and come back to the City Council with a proposed ordinance. SUBSTITUTE ~R®INANCE AS AMENDED BE IT ORC~AINED BY THE CITY COUNCIL OF THE CITY OF CHICAG®: SECTION 1. Section 13-12-125 of the Municipal Code of Chicago is hereby amended by deleting the struck-through language and adding the underscored language as follows: 13-12-125 Vacant buildings--Owner required to act--Enforcement authority. (a} (1 } The owner of any building that has become vacant shall within 30 days after the building becomes vacant or within 30 days after assuming ownership ofthe building, whichever is later, file a registration statement for each such building with the department of buildings on forms provided by that department for such purposes. The registration shall remain valid for six months from the date of registration. The owner shall be required to renew the registration for successive six-month periods as long as the building remains vacant and shall pay a registration or renewal fee in the amount prescribed in paragraph (3} of this subsection (a} for each registered building; provided, however, that all eleemosynary, religious, educational, benevolent or charitable associatiansorganized on anot-for-profit basis and all governmental agencies shall be exempt from the payment of the registration fee. The owner shall notify the department of buildings, within 20 days, of any change in the registration information by filing an amended registration statement on a form provided by the department of buildings for such purposes. The registration statement shall be deemed prima facie proof ofthe statements therein contained in any administrative enforcement proceeding or court proceeding instituted by the city against the owner or owners of the building. Registration of a building in accordance with this section shaii be deemedto satisry the registration requirement set forth in Section 13-10-030 and the notification requirement set forth in Section 13-11-030. After filing a registration statement, the building owner shall provide access to the city to conduct an exterior and interior inspection of the building to determine compliance with the municipal code, following reasonable notice, during the period covered by the initial registration or any subsequent renewal. (2} In addition to other information required by the commissioner of buildings, the registration statement shall include the name, street address and telephone number of a natural person 21 years of age ar alder, designated by the owner or owners as the authorized agent for receiving notices of code violations and for receiving process, in any court proceeding or administrative enforcement proceeding, on behalf of such owner or owners in connection with the enforcement of this Code. This person must maintain an office in Cook County, Illinois, or must actually reside within Cook County, Illinois. An owner who is a natural person and who meets the requirements of this subsection as to location of residence or office may designate himself as agent. By designating an authorized agent under the provisions of this subsection the owner is consenting to receive any and all notices of cede violations concerning the registered building and all process in any court proceeding or administrative enforcement proceeding brought to enforce code provisions concerning the registered building by service of the notice or process on the authorized agent. Any owner who has designated an authorized agent under the provisions of this subsection shall be deemed to consent to the continuation of the agent's designation for the purposes of this subsection until the owner notifies the department of buildings of a change of authorized agent or until the owner files a new annual registration statement. Any owner who fails to register a vacant building under the provisions of this subsection shall further be deemed to consent to receive, by posting at the building, any and all notices of code violations and all process in are arimin!Strat;e;a proCe?dir?g hrn~ght to enforce code provisions concerning the building. (3} The registration and renewal fee for each registered building shall be $250 (the "base registration fee"). Provided, however, that any vacant building subject to the base registration fee that is in violation of any provision of the building code or fire code at the time renewal is required shall be assessed a renewal fee of $500 for such renewal period (the "doubled period"). If a vacant building in the doubled period is in violation of any provision of the building code or fire code at the time renewal is required, the fee shall be $750 for such renewal (the "tripled period"}. If a vacant building in the tripled period is in violation of any provision of the building code or fire code at the time renewal is required, the fee shall be $1,000 for such renewal, and shall remain at $1,000 far each subsequent renewal, if, at the time such renewal is required, the building is in violation (the "quadrupled period"). If the owner of a building that is in the doubled, tripled or quadrupled period can show to the satisfaction of the building commissioner and the fire commissioner, at the time renewal is required, that the building is in full compliance with the building code and fire code, then such renewal shall revert to the base registration fee. For purposes of this subparagraph (3), "in violation" shall mean that a citation has been issued, and the conditions forming the basis for the citation have not been fully remedied. In the event of a final determination that issuance of the citation was not factually supported, the increased fee far the six-month periods} at issue shall be refunded to the owner. (b} The owner of any building that has become vacant, and any person maintaining, operating or collecting rent for any building that has become vacant shall, within 30 days, do the following: (1} enclose and secure the building as provided in Section 13-12-135 of this Code; (2) post a sign affixed to the building indicating the name, address and telephone number of the owner and the owner's authorized agent for the purpose of service of process. The name, address and telephone number of a person responsible far day-to-day supervision and management of the building, if such person is different from the owner holding title or authorized agent, shall be indicated on the sign as well. The sign shall be of a size and placed in such a location so as to be legible from the nearest public street or sidewalk, whichever is nearer; and (3) maintain the building in a secure and closed condition and maintain the sig~i ur ~til the building is again occupied or demolished or until repair or completion of the building has been undertaken. (c) The owner of any building that has become vacant shall, within 30 days, acquire or othenrvise maintain 6iability insurance, in an amount of not less than $300,000.00 for buildings designed primarily for use as residential units and not less than $1,000,000.00 for any other building, including, but not limited to, buildings designed for manufacturing, industrial, storage or commercial uses, covering any damage to any person or any property caused by any physical condition of or in the building. Any insurance policy acquired after the building has become vacant shall provide for written notice to the commissioner of buildings within 30 days of any lapse, cancellation or change in coverage. The owner and the owner's authorized agent for service of process shall provide evidence of the insurance, upon request, to the commissioner of buildings or his or her designee. (d} The building commissioner may issue rules and regulations for the administration of this section. Any person who violates any provision of this section or of the rules and regulations -2- issued hereunder shall be fined not less than $500.00 and not more than $1,000.00 far each offense. Every day that a violation continues shall constitute a separate and distinct offense. Fines assessed under this chapter sha!I be recoverable from the owner and shat! be a lien on the property. (e) For purposes of this section, "vacant" means a building which is lacking habitual presence of human beings who have a legal right to be on the premises, or at which substantially all lawful business or construction operations or residential occupancy has ceased, or which is substantially devoid of content. In determining whether a building is vacant, it is relevant to consider, among other factors, the percentage of the overall square footage of the building or floor to the occupied space, the condition and value of any items in the building and the presence of rental or far sale signs on the property; provided that a residential property shall not be deemed vacant if it has been used as a residence by a person entitled to possession for a period of at least three months within the previous nine months and a person entitled to possession intends to resume residing at the property; and further provided that multi-family residential property containing ten or more dwelling units shall be considered vacant when ninety percent or more of the dwelling units are unoccupied. SECTION 2. Chapter 13-12 of the Municipal Code of the City of Chicago is hereby amended by inserting a new section 13-12-135 as follows: 13-12-135 Minimum requirements far vacant buildings For purposes of this section, the term "vacant" shall be defined as provided in section 13-12- 125. In addition to any other applicable code requirements, each vacant building must be kept in compliance with the following requirements far as long as the building remains vacant: (a) Lot Maintenance Standards -the lot the building stands on, and the surrounding public way, shall be maintained as follows: (1}all grass and weeds on the premises, including abutting sidewalks, gutters and alleys, shall be kept beiovv ten (10) inches in height, and a!! dead or broken trees, tree limbs or shrubbery shall be cut and removed from the premises; (2} the interior walkway leading to the main entry door, and any public sidewalk adjoining the lot, shall be shoveled clear of snow; (3}junk, rubbish, waste, and any material that creates a health, safety or fire hazard, including but not limited to any mail or flyers that have been delivered to the building, shall not be permitted to accumulate on any portion of the exterior lot of the building; (4) no portion of the lot, nor any structure, vehicle, receptacle, or object thereon, shall be maintained or operated in any manner that causes or produces any health or safety hazard or permits the premises to become a rodent harborage or is conducive to rodent harborage; (5) the lot shall be maintained so that water does not accumulate or stand on the ground; (6) all fences and gates shalt be maintained in sound condition and in good repair. -3- (b) Exterior Maintenance Standards -The exterior of the building shall be enclosed, secured and maintained as follows: (1}foundations, basements, cellars, and crawlspaces shall be maintained in sound and watertightcondition, adequate to supportthe building, and protected againstthe entry of rodents or other animals; (2) exterior walls shall be free of holes, breaks, loose or rotting boards or timbers, and any other conditions which might admit rain or dampness to the interior portions of the walls or the interior spaces and shall be protected against the entry of rodents or other animals; (3) exterior windows and doors shall be maintained in sound condition and good repair. Windows and doors shall fit tightly within their frames and the frames shall be constructed and maintained in such relation to the adjacent wall construction as to prevent rain from entering the building; (A) exterior windows and doors shall be equipped with hardware far locking, and the locking mechanism shall be maintained in properly functioning condition; (B) all points of possible ingress and egress, including but not limited to exteriorwindowssnd doors, shall be secured to prevent unauthorized entry; (C) any window which is broken, cracked or missing glass or glazing shall be replaced and maintained in good repair, or the building opening shall otherwise be adequately Secured pursuant to section 13-12-13~{d); (4) the roof shall be adequately supported, and shall be maintained in weathertight condition; the gutters, downspouts, scuppers, and appropriate flashing shall be in good repair and adequate to remove the water from the building or structure; (5) chimneys and flues shall be kept in sound, functional, weathertight condition and in good repair; (6) every outside stair or step shall be rnaintairied in sound condition and i~~ good repair; every porch, stoop, deck, veranda, balcony and walk shall be maintained in sound condition far its purpose; (7} all exit areas shall have continuous exterior lighting from dusk to dawn; normal intensity of lighting shall be not less than two footcandles per square foot on the floor surfaces, within an eight-foot radius around said exit. This requirement may be met by the use of battery-powered or solar-powered lighting if such lighting meets the performance standards set by this paragraph. (c) Interior Maintenance Standards -The interior of any building shall be maintained as folloWS: (1) it is prohibited to accumulate or permit the accumulation of junk, trash and debris, boxes, lumber, scrap metal, junk vehicles or any other materials in such a manner that may produce any health, fire, or safety hazard, or provide harborage -4- for rodents or other animals on the premises; materials stared by the owner or permitted to be stored by the owner shall be stacked safely, and away from stairs nr hatl;noay~ anri any ev~,ths,~r places of !ngrecc anri ar~sraee; (2) every foundation, roof, floor, wall, stair, ceiling, and any other structural support shall be safe and capable of supporting the loads that normal use may cause to be placed thereon, and shall be kept in sound condition and in good repair; floors and stairs shall be free of holes, grooves, and cracks that could be potentially hazardous; (3) any plumbing fixtures shall be maintained with no leaking pipes; and all pipes for water shall be either completely drained or heated to resist being frozen; (4) every exit door maintained as such in compliance with subsection (d)(3) shall be secured with an internal deadbolt lock, or with a lacking mechanism deemed equivalent or better by the department of buildings, and every such exit door shall be capable of being opened from the inside easily and without the use of a key or special knowledge; (5) interior stairs shall have treads and risers that have uniform dimensions, are sound, securely fastened, and have no rotting, loose, or deteriorating supports; (6} every owner shall be responsible for the extermination of insects, rodents and other vermin in or about the premises. (d} Building Security Standards -The following standards apply to the securing of vacant buildings: (1) all building openings shall be closed and secured, using secure doors, glazed windows, commercial-quality steel security panels, orfilled with like-kind material as the surrounding wall, as applicable, to prevent entry by unauthorized persons. Except as specifically authorized in this subsection (d}, use of plywood is prohibited; (2) openings less than one (1) square foot in area may be boarded with plywood, provided that the boarding is made weathertight and finished with varnish, or paint of a similar color to the exterior wal{, and cut to the inside dimension of the exterior of the opening, and otherwise secured in the manner prescribed by rules and regulations issued by the department of buildings; (3) at least one building entrance shall be accessible from the exterior and secured with a door that is locked to allow access only to authorized persons; a minimum of two exit doors shall be available to exit from the interior of the building, with at least one exit door available per 150 linear feet of horizontal travel at ground-floor level; (4) for the first six (6) months a building is vacant but not thereafter, openings more than one (1) square foot in area may be boarded with plywood, which shall be installed and secured as prescribed by this section and by rules and regulations issued by the department of buildings; (5) if a building has been vacant for six months or longer, or upon any renewal of the registration statement required in Section 13-12-125, the building owner must implement and provide proof satisfactory to the department of buildings that, in -5- addition to complying with the security standards set forth elsewhere in this subsection {d), said building either: {i) contains all of the security features set forth i,r; ~~ ebparagraph (,4), ar (ii) is ~nvialateti, as rlesr_.ribed in subparagraph {F~): (A) every opening larger than one (1 }square foot in area that is located less than eight (8} feet above the ground or that is accessible from ground level or within eight {8} feet in any direction of an exterior stairway, fire escape, or ether means of access shall be closed and secured with acommercial- quality, 14-gauge, rust-proof steel security panel or door; (i} security panels and doors shall have an exterior finish that allows for easy graffiti removal; and (ii) security panels and doors shall be secured from the interior of the building to prevent unauthorized removal. (B) Far purposes of this paragraph (5), the term "unviolated" shall refer to a building: (i) that has a permanent door or window, as applicable, in each appropriate building opening, (ii) that has each such door orwindow secured to prevent unauthorized entry, and (iii) that has all its door and window components, including without limitation frames, jambs, rails, stiles, muntins, mullions, panels, sashes, lights and panes, intact and unbroken. A building that does not meet the definition of "unviolated" shall be deemed "violated." (C) It shall be a vialation of this Subparagraph (d)(5)(C) far a vacant building to become violated, if the owner has provided proof to the department of buildings that such building is unviolated. With respect to a vacant building represented by the owner as unviolated, if the commissioner of buildings determines, based an an inspection by the department of buildings or a report prepared by another city agency and provided to the department of buildings, that such building is violated, said commissioner shall send by certified mail a written notice of violation to the person responsible far day- to-day supervision and management of the building or to the authorized agent far service of process as identified on the sign required by section 13- 12-125(b)(2), ar if there is no such sign, then sent by certified mail to the owner of record. Within 3G days of the mailing of such notice of vialation, the owner shall be required to either: (i} comply with subparagraph (5)(A) of this section, or (ii} restore the building to an unviolated state and also install and maintain a working burglar alarm system, as defined in Section 4-400- 010, and have an active account with a third party burglar alarm company. The burglar alarm system shall connect to all areas of the building subject to unauthorized human entry, including, but not limited to, all exterior doors, windows or other readily accessible openings. The burglar alarm system shall, upon detecting unauthorized entry, send an automatic signal to a burglar alarm company that has twenty-four (24)- hour live operators who will monitor the system and telephone the building owner or designated agent of the unauthorized entry, and who will also telephone the police department to inform it of the unauthorized entry,_if there is no adequate response from the building owner or designated agent. (e} Rules and Regulations -- The building commissioner may issue rules and regulations for the administration of this section. These rules may specify additionafboard-up materials -6- which may be used when securing a building, if proof is provided, satisfactory to the building commissioner, that such materials will perform in a manner equivalentto, or better than, the materials specified herein. (f) Fines and penalties -- Any person who violates any provision of this section or of the rules and regulations issued hereunder shall be fined not less than $500.00 and not more than $1,000.00 for each offense. Every day that a violation continues sha(i constitute a separate and distinct offense. Fines assessed under this chapter shat( be recoverable from the owner and shall be a lien on the property. SECTION 3. Section 13-12-145 of the Municipal Code of Chicago is hereby amended by deleting the struck-through language and adding the underscored language as follows: 13-12-145 Improperly maintained buildings and structures subject to nuisance abatement proceedings. (a} The following buildings and structures are hereby declared to be public nuisances subject to abatement proceedings under this section: (1) a building or structure found to be vacant and open after the effective date of an order to secure and enclose issued by a court of competent jurisdiction or the department of administrative hearings within the previous 12 months, unless stayed by a court of competent jurisdiction; (2) a building or structure that contains any violation of a health, fire, electrical, plumbing, building or zoning provision of this code which is imminently dangerous and hazardous; (3) a building or structure for which the costs of the repairs necessary to bring the building or structure into compliance with applicable laws would exceed the market value of the building or structure after the repairs would have been made, or when the owner cannot show that it has readily available and sufficient assets to make such repairs or where such repairs otherwise are economically infeasible; or (4} a building or structure where an owner has failed to correct the code violations} that form the basis of an adverse order or judgment involving that building or structure issued by a court of competent jurisdiction or a hearing officer of the department of administrative hearings, within 60 days of entry, unless such adverse order or judgment has been stayed by a court of competent jurisdiction. Far purposes of this section "vacant" shalt be defined as provided in section 13-12-125; and °'open" refers to a building that has any door, window orwall missing or unsecured, or has any other opening so as to allow entry by a human being. (Omitted text is unaffected by this ordinance) SECTION 4. Section 2-14-155 of the Municipal Code of Chicago is hereby amended by adding the underscored language as follows: 2-14-155 Defenses to building code vioiatians. It shall be a defense to a building code violation adjudicated under this article, if the owner, manager, person exercising control, his attorney, or any other agent or representative proves to the administrative law officer that: (a) The building code violation alleged in the notice did not in fact exist at the time of the inspection resulting in the notice; (b} At the time of the hearing on the issue of whether the building code violation does -7- or does not exist, the violation has been remedied or removed. This subsection (b} shall not create a defense to a violation of Section 13-12-135(d)(5)(C), or to a person or entity that is an architect, structural engineer, contractor or builder who has been charged with a violation of Section 13-12-050 or Section 13-12-060 of this Code. However, for violations of Sections 13-196-400 through 13-196-440 of this Code, it shall be a defense under this subsection only where the violation has been remedied ar removed within seven days of service of notice of the building code violations as provided under Section 2-14-152; (Omitted text is unaffected by this ordinance) SECTION 5. This ordinance takes effect 60 days after its passage and approval and shall apply to all vacant buildings, including property for which a registration statement has been submitted prior to, on, or after such effective date, but the changes in subsection (a} of Section 13- 12-125 shall not affect the duration of registration statements submitted to the department of buildings prior to such effective date. -8- ~~`~ ~ ~:l-l °rOPT~I' 249. '~'^~.~,'`~9?' I~!°!®"~;~EE; nQ R~ ~I~rztr, JISA~4C~;~ C:(.~r~ITlc~~9 249.10. Pa{icy. Pursuant to authority provided in Minnesota Statutes, Section 463.26, permitting cities to enact and enforce ordinances on hazardous buildings, and in order to enhance the livability and preserve the tax base and property values of buildings within the city, and based upon the findings contained in section 249.20; and because of the need to assure that buildings which are capable of rehabilitation are promptly rehabilitated and buildings which are not capable of rehabilitation be promptly demolished, the city hereby declared that it is the policy of the city to promote rehabilitation of vacant and unoccupied buildings, and to assure a prompt process for demalition of hazardous buildings through a procedure fixing appropriate responsibility in accordance with due process requirements. (92-Or-110, § 1, 9-11-92) 249.20. Findings. The city council finds, determines and declares that buildings which remain vacant and unoccupied for any appreciable period of time become an attractive nuisance to children, a harborage for rodents, and invitation to derelicts, vagrants and criminals as a temporary abode, and an increased fire hazard, and that the unkept grounds surrounding s! ch propert,~ invite the dumping of garbage and rubbish thereon; that such buildings are permitted to become dilapidated since such buildings are often ecanomically obsolete and the owners of such bui{dings are unwilling to expend the necessary funds to repair or raze the buildings; that such buildings contribute to the growth of blight within the city, depress market values of surrounding praperties to the detriment of the various taxing districts and require additional governmental services; that the use and maintenance of property in such condition and manner endangers the public safely a~ ed health, constitutes an unreasonable use and condition to the annoyance, discomfort and repose of a considerable number of the public, is detrimental to the public good and to the common welfare; and renders a considerable number of the public insecure in the use and enjoyment of their property, and thus may constitute a nuisance condition. Adequate protection of public health, safety and welfare, therefore, requires the establishment and enforcement of the means by which such nuisance conditions may be abated. (76-Or-102, § 1, 7-9-76; 78-Or-233, § 1, 11-9-78; 92-Or-110, § 1, 9-11-92} 249.25. Securing vacant buildings. (a} In general, if any building becomes vacant or unoccupied and is deemed hazardous due to the fact that the building is open to trespass and has not been secured and the building could be made safe by securing the building, the director of inspections may order the building secured and shall cause notice of the order to be served upon the owner of the premises. Such notice may be served personally or by mail. Service by mail is complete upon mailing a copy of the order to the owner at the last known address. If the nwner fails to comply with the order within six (6) days after the order is served, the director of inspections shall cause the building to be boarded up or otherwise properly secured. Whenever a building is boarded up pursuant to the authority of this chapter, the director of inspections may cause all openings to the building to be boarded and secured. (b) Emergency. When it is determined by the director of inspections or the chief of police, or the fire chief that an emergency exists with respect to the health or safety of persons in the community, and immediate boarding and securing of a building is required, and where danger wilt exist to children, transients or others in the absence of an immediate boarding or secs!ring of the building, the director of inspections or the chief of police, or the fire chief may waive all requirements herein and immediately board or otherwise secure the building, provided that: (1) The conditions showing the existence of an exigency are documented in writing by the director of inspections or the chief of police or the fire chief or their designees. (2} Notice be mailed immediately by the department invoking this section to the address of the owner and taxpayer, and, if recorded on the assessors rolls, the address of the mortgage holder, of the date of boarding or otherwise securing and the reasons therefor. (c) After a vacant or unoccupied building has been boarded or otherwise secured ~,nder this section, should the owner fail to maintain the building in a secured condition until such time as it has been repaired and reoccupied, the director of inspections shall resecure any openings into the building whenever it again becomes open to trespass, without further notice to the owner. An administrative fee of one hundred dollars 0100.00) and ail other costs incurred by the city for boarding or otherwise securing a building under this chapter, including, but not limited to the actual casts for boarding, inspecting, posting and monitoring the building, shat! be assessed as provided in section 227.100. "Owner," far the purposes of this section, shall mean the person who is listed as the contact person on the current rental licensing application on file with the city, if any; or, if none, the person listed as owner by the city assessor on the homestead record; or, if none, the taxpayer as shown by the records of the city assessor. "Owner" shall not include a community development agency organized pursuant to the Laws of Minnesota 1980 Chapter 595. (94-Or-123, § 1, 9-16-94; 2001-Or-054, § 1, 4-20-01; 2006-(fir-065, ~ 1, 6-16-06; 2008-Or-008, ~ 1, 2-1-08) 249.30. "Nuisance condition" defined; waiver of waiting period. (a} A building within the city shall be deemed a nuisance condition if: (1} It is vacant and unoccupied for the purpose far which it was erected and for which purpose a certificate of occupancy may have been issued, and the building has remained substantially in such condition for a period of at least six (6} months; or (2) The building is unfit for occupancy as it fails to meet the minimum standards set out by city ordinances before a certificate of code compliance could be granted, or is unfit for human habitation because it fails to meet the minimum standards set out in the Minneapolis housing maintenance code, or the doors, windows and other openings into the building are boarded up or otherwise secured by a means other than the conventional nvethads used in the original construction and design of the building, and the building has remained substantially in such condition for a period of at least sixty (60) days; or (3) Evidence, including but not {invited to neighborhood impact statements, clearly demonstrates that the values of neighborhood properties have diminished as a result of deterioration of the subject building; or (4} Evidence, including but not (invited to rehab assessments completed by CPED, clearly demonstrates that the cost of rehabilitation is not justified when compared to the after rehabilitation resale value of the building. (b) When it is determined by the director of inspections or the city fire marshal that a building constitutes an immediate hazard to the public health and safety, and after approval by the city council, the sixty-day waiting period set out in this section may be waived and the other procedures, as set out in this chapter, may be implemented immediately. (c) Notwithstanding the Foregoing provisions, accessory buildings such as garages, barns and other sEmilar structures, not intended to be used for human habitation, shall be deemed to constitute a nuisance condition when such buildings are in violation of section 244.1560 of the housing maintenance code which regulates nondwelling structures or when such accessory buildings are structurally unsound in the opinion of the director of inspections. (76-Or-102, § 1, 7-9-76; 77-Or-226, § 2, 11-10-77; 78-Or-233, § 2, 11-9-78; 79-Or®016, § 1, 1-26- 79; 80-Or-181, § 1, 8-8-80; 84-Or-095, § 1, 6-15-84; 86-Or-236, § 1, 10-10-86; 91-Or-157, § 1, 8-9-91; 92-Or-110, § 2, 9-11-92; 93-Or-142, § 1, 10-1-93; 94-Or- 123, § 2, 9-16-94; 2006-Or-059, § 1, 5-26-06) Editor's note: It should be noted that Ord. No. 2006-Or-059, adopted May 26, 2006, was effective October 1, 2006. 249.40. Abatement of nuisance condition. Buildings determined to be a nuisance condition may be rehabilitated or razed by order of the director of inspections. (1) Before any action is taken to abate a nuisance condition, except as provided in section 249.25 relating to securing vacant buildings, the director of inspections shall examine the building to ascertain whether the nuisance condition should be ordered far rehabilitation or demolition. Among the criteria to be considered are the following: a. The need far neighborhood housing; b. The historic value of the building; c. The impact on the neighborhood and the ability of the neighborhood to attract future residents; ~' The capac°ty ^f +c,~ ~~9ghborhood to use the property; 1,.1. 1 1 1 6fi G{iV fIL e. The zoning and comprehensive plan classifications for the property use; f. The market potential for the property; g. The estimated cost of rehabilitation; h. The severity and the history of neglect; i. The availability of funds for rehabilitation to the owner; j. The structural condition of the building. (2) If the director of inspections determines that the building is a nuisance condition, the director of inspections shall order the building to be demolished, or rehabilitated. The director may impose any and all conditions deemed appropriate to ensure compliance with the order. (3} The division of inspections shall give notice of the director's order to demolish or rehabilitate the building to the owner and other persons shown to have an interest in the building deemed to create a nuisance condition. Proper notice shall be sufficiently given when mailed by certified mail return receipt requested, postage prepaid, addressed to the owner to wham the building is registered with the division of inspections or, if not registered, to the owner or other persons shown to have an interest in the property as ascertained by the files and records of the register of deeds or registrar of titles in and for Hennepin Caunty. Such notice shall also be given to such persons that the director of inspections has actual knowledge of having an interest in the said property. in addition, such natice shall be served by three (3) weeks' published notice in any newspaper of general circulation in the City of Minneapolis as provided for in Minnesota Rules of Civil Procedure and by posting such notice at the street entrance to such building. The notice shall state: a. That the director has determined that the building is a nuisance condition as defined by section 249.30 and that the building is to be demolished or rehabilitated. If the director is ordering that the building be rehabilitated, the notice shall state all of the conditions that are to be imposed. b. The specific reasons the building has been determined to constitute a nuisance condition. c. That unless the notice is appealed within twenty-ane (21 }days of the date the notice was mailed, in the manner provided in section 249.45, the division of inspections will proceed to demolish the building or that the division of inspections will impose the conditions of rehabilitation on the property. d. The natice shall describe how an appeal may be filed under section 249.45. e. The notice shall state that the owner of the property will be responsible for the payment of all costs incurred by the city in razing or rehabilitating the building, as well as an administrative fee of fifteen (15) percent of the cast. The notice shall state that if the costs are unpaid, the costs and the administrative fee shall be levied and collected as a special assessment against the property as provided far under section 227.100 (4) If no appeal is received within twenty-one (21) days of the notice being mailed, the department of inspections may proceed with the director's determination to demolish the building by razing the building, or may proceed with the director's determination to rehabilitate the building by imposing the conditions set forth in the notice. (5} When the owner of a property, that has received a director's order to demolish or rehabilitate the property, intends to sell an interest in the property, the owner must disclosure to the purchaser that a director's order to demolish ar rehabilitate the property has been previously issued. (76-Or-102, § 1, 7-9-76; 76-Or-165, § 1, 9-24-76; 78-Or-233, ~ 4, 11-9-78; 82-Or-256, ~ 1, 12-23-82; 85-Or-114, ~ 1, 6-4-85; 92-0r-110, ~ 4, 9-11- 92; 94-Or-123, § 3, 9-16-94; 2001-Or-054, § 2, 4-20-01; 2006-Or-059, ~ 2, 5-26-06} Editor's note: It should be noted that Ord. No. 2006-Or-059, adopted May 26, 2006, was effective October 1, 2006. 249.45. Abatement of nuisance condition appeals. (a) There is hereby created a nuisance condition process review panel The panel shall consist of the director of operations, licenses and environmental services, the fire marshal, the director of housing policy and development, and the city assessor or their designees. Three (3) members of the panel shall constitute a quorum. The panel shall make decisions by a majority vote. The director of inspections' order, as set forth in the notice, shall be upheld if the panel is deadlocked. (b} The panel shall have authority to hear and decide all appeals from the director of inspections' order to demolish or rehabilitate a nuisance condition building. The panel shall uphold or overturn the director's determination that the building is a nuisance condition as defined by section 249.30 and shall uphold or overturn the director's determination that the building should be demolished or rehabilitated. If the director of inspections imposes conditions on an order to rehabilitate the building, the panel shall have the authority to uphold, modify or overturn those conditions. (c) Any person wishing to appeal a determination of the director of inspections ordering demolition or rehabilitation shall file a written notice of appeal with the department of inspections within twenty-one (21) days after receipt of the director°s order. The notice shall contain a statement of the grounds for the appeal. The notice of appeal shall be accompanied by a fee of three hundred dollars ($300.00). (d} The panel shall meet at the call of the chair to hear appeals. The panel shall notify the owner and any other person known to have an interest in the property in writing of the time and place of the hearing. In addition, notice of the hearing shall be sent to all property owners within three hundred fifty (350) feet of the subject property and to any neighborhood arganization in which the property is located. (e} Notice to the owners, or other parties with an interest in the property, shall inform the owner and parties of (1) the right to appear individually or through a representative or to submit a written statement, (2) the right to examine witnesses at the hearings and offer such evidence as may bear on the decision to demolish or rehabilitate the building, and (3) that the hearing will be recorded. Neighborhood arganizations and owners of property within three hundred fifty (350} feet of the subject propery shall be entitled to present joint or individual neighborhood impact statements to the panel. The neighborhood impact statements shall specifically address the items contained in section 249.40 (1 } a., b., c. and d., and such other relevant material as may be offered. (f} At the hearing, the panel shall hear all relevant evidence and argument. The panel may admit and give probative affect to evidence that possesses probative value commonly accepted by reasonably prudent persons in the conduct of their affairs. The panel shall record the hearing and keep a record of documentary evidence submitted. (g) At the hearing, the division of inspections shall present an oral summary of the background and reasons for its recommendation. Areport, including any pertinent documents and photos shall be filed as part of the record. All parties having an interest in the property may review department documents, subject to restrictions in the Government Data Practices Act, prior to the hearing, and shall be permitted to present evidence in support of their position. Parties having an interest in the property shall have the right to question witnesses at the hearing. (h} The panel shall render its decision in writing within thirty (30) days after the close of the hearing. The panel shall determine whether the building meets the definition of nuisance condition as set forth in section 249.30 and whether the directar of inspections' order to demolish or rehabilitate the building should be upheld or overturned and shall specify the factual and legal basis far the determination. The panel shall make it determination based upon the preponderance of the evidence. (i} The panel shall mail a copy of its decision to the appellant. (j) The panel shall refer its decision to the city council, which she{I have the fine( authority to determine whether the building is a nuisance condition as set forth in section 249.30 and whether the building should be rehabilitated or razed. The panel's findings shall include the date and time of the hearing before the public safety and regulatory services committee. The public safety and regulatory services committee may hear arguments from the appellants, but shall take na further evidence. (2006-Or-059, § 3, 5-26-06} Editor's note: It should be noted that Ord. No. 2006-Or-059, adopted May 26, 2006, was effective October 1, 2006. 249.50. Alternatives to demolition. (a) The city council may consider as an alternate to demolition: (1) Ordering the owner of any nuisance condition to rehabilitate the building and specifying the time within which such rehabilitation shall occur. If rehabilitation is the alternative required by the city council, the owner shall present a plan for rehabilitation to the director of inspections that shall contain a commitment of funds to accomplish the plan. If the plan required herein is not received by the director of inspections within the time ordered by the council, the city shall proceed to demolish the building. (2) If the owner is, for any reason, un~r~~i!!ing or unable to immediately rehabilitate the building, the city may elect to rehabilitate and assess the cost thereof provided that the estimated cost may not exceed fifty (50) percent of the estimated after-rehabilitation market value of the property. Such costs shall be assessed against the property, in the manner provided for in section 249.60. (3) Notwithstanding the limitations of section 249.50(a)( 2), and in order to make funds available for rehabilitation, the city may, to the extent neighborhood action plans of the neighborhood revitalization program allow, create a revolving fund for housing purposes to be used in the neighborhood for which the funds have been earmarked. The city may receive applications and consider, where appropriate, loans to owners for housing rehabilitation purposes. (b) The city council shall order demolition or rehabilitation of the building. The city council shall make such order as it deems appropriate based upon the evidence and record of the appeal hearing. The city council may also impose any and all conditions it deems appropriate. These conditions may include the posting of a perFormance bond in an amount not to exceed the estimated cost of rehabilitation. The public safety and regulatory services committee may postpone its decision and order the owner to update the committee at a future date on the progress of rehabilitation. The order shall be mailed to the last known address of the owner to wham the building is registered with the division of inspections or, if not registered, to persons shown to have an interest in the property as ascertained by the files and records of the registrar of deeds or registrar of titles in and far Hennepin County. (c) The owner of the subject property shall comply with the city council's decision and order. If the owner fails to abide by the order, the director of inspections shall immediately notify the city council which may then order immediate demolition or otherwise amend its order. (76-Or-102, ~ 1, 7-9-76; 77- Or-226, ~ 3, 11-10-77; 78-Or-233, § 5, 11-9-78; 92-Or-110, § 5, 9-11-92; 93-Or- 107, § 1, 7-30-93; 93-Or-142, § 2, 10-1-93; 2001-Or-054, ~ 3, 4-20-01; 2004-Or- 051, § 1, 5-14-04; 2006-Or-059, § 4, 5-26-06) Editor's note: It should be noted that Ord. No. 2006-Or-059, adopted May 26, 2006, was effective October 1, 2006. 249.60. Collection of costs. The director of inspections shall notify the owner of the cost incurred in razing or rehabilitating the building, under section 249.50, and the owner shall be responsible for the payment of the same, together with an administrative fee of fifteen (15} percent of the cast, within thirty (30} days of such notification. Upon default of payment after the said thirty (30) days, the cost of such razing or rehabilitating and the administrative fee shall be levied and collected as a special assessment against the property as provided for under section 227.100 of this Code, with interest at the rate of eight (8) per cent per annum on the unpaid balance thereof. (76-Or-102, § 1, 7-9-76; 78-Or-233, ~ 6, 11-9-78; 92-Or-110, ~ 6, 9-11-92; 93-Or-142, ~ 3, 10-1-93) 249.65. Revolving fund for abatement of buildings in a nuisance condition. The department of inspections shall maintain a revolving fund to be known as the nuisance building abatement fund (hereinafter referred to as "the fund"). The fund may be drawn upon to perform abatement of buildings within the city that have been deemed to be a nuisance condition pursuant to Chapter 249. All costs and fees incurred abating buildings that are a nuisance condition, including appropriate interest, shall be recovered from the property owner pursuant to section 249.60 and 227.100. The fund shall be credited with the collection of the casts and fees recovered. Disbursements from the fund shall not be subject to the provisions and requirements of the procurement process of the city. (2006-Or-059, ~ 5, 5-26-06} Editor's note: It should be noted that Ord. No. 2006-Or-059, adapted May 26, 2006, was effective October 1.2006. 249.70. [Authority of city.] Nothing herein shall limit the city's authority under the provisions of Minnesota Statutes, Chapter 463. (92-Or-110, § 7, 9-11-92; 93- Or-142, ~ 4, 10-1-93) 249.80. Vacant building registration. (a) The owner of a residential building or building located in a residentially zoned area shall register the building with the director of inspections within five (5) days after it becomes a vacant building. In this section, a "vacant building" is one that is: (1} Condemned; (2} Unoccupied and unsecured for five (5} days or more; (3) Unoccupied and secured by means other than those normally used in the design of the building for thirty (30} days or more; (4} Unoccupied and has multiple housing maintenance, fire or building code violations existing for thirty (30} days or more; (5) Unoccupied for a period of time over three hundred sixty-five (365} days and during which time an order has been issued to correct a nuisance condition pursuant to section 227.90. (b} The registration shall be submitted on forms provided by the director of inspections and shall include the following information supplied by the owner: (1 } A description of the premises; (2} The names and addresses of the owner or owners; (3) The names and addresses of all known lienholders and all other parties with an ownership interest in the building; (4} The period of time the building plan and timetable for returning the far demolition of the building. is expected to remain vacant; and a building to appropriate occupancy or (c) The owner shall submit a plan and timetable that must comply with the guidelines adapted by the director of inspections. The guidelines are adapted for purposes of preventing nuisance conditions and maintaining compliance with this code. These guidelines shall be made available to building owners. The plan shall be submitted at the time of registration, or within a reasonable period of time thereafter to be determined by the director of inspections. (d) The owner shall comply with all applicable laws and codes. The owner shall notify the director of inspections of any changes in information supplied as part of the vacant building registration within thirty (30} days of the change. !f the plan or timetable for the vacant building is revised in any way, the revisions must meet the approval of the director of inspections. (e} The owner and the subsequent owners shall keep the building secured and safe and the building and grounds properly maintained until the rehabilitation or demolition has been completed. (f) Failure of the owner or any subsequent owner to maintain the building and premises that result in abatement completed by the city shall be grounds for revocation of the approved plan and shall be subject to any applicable penalties provided by law. (g} The new owners} shall register or re-register the vacant building with the director of inspections within thirty (30) days of any transfer of an ownership interest in a vacant building. The new owners} shall comply with the approved plan and timetable submitted by the previous owner unti6 any proposed changes are submitted and meet the approval of the director of inspections. {h) The director of inspections shall include in the file any property-specific written statements from community organizations, other interested parties or citizens regarding the history, problems, status or blighting influence of a vacant building. (i} Vacant building fees: (1 } The owner of a vacant building shall pay an annual fee as established in the director's fee schedule pursuant to section 91.70. The fee is imposed to recover all costs incurred by the city for monitoring and regulating vacant buildings, including nuisance abatement, enforcement and administrative costs This fee may be waived or suspended far the current year as a term or condition of a written restoration agreement or order issued pursuant to section 249.50. This fee may be waived for the current year and previous years if the property is acquired by the Community Planning and Economic Development (CPED) Department. (2} The first annual fee shall be paid no later than five (5) days after the building becomes vacant. Subsequent annual fees shall be due on the anniversary date of initial vacancy. The fees shall be paid in full prior to the issuance of any building permits, with the exception of a demolition permit. (3} Unpaid fees shall be levied and collected as a special assessment against the property as provided for under section 227.100, with interest at the rate of eight (8) percent per annum on the unpaid balance thereof. Upon transfer of ownership, the new owners} shall be responsible for all unpaid and subsequent annual fees. (j) A building owner shall provide access to all interior portions of an unoccupied building in order to permit a complete inspection for the purpose of enforcing and assuring compliance with the provisions of this chapter. (92-Or-110, § 8, 9-11-92; 2001-Or-054, §§ 4, 5, 4-20-01; 2006-Or-059, ~ 6, 5-26-06; 2008-Or-017, § 1, 2- 29-08) 249.90. Penalties. Any person who violates a provision of this chapter or provides false information on a required registration or plan, is guilty of a misdemeanor, punishable as provided in section 1.30 of this Code. (93-Or-003, ~ 1, 1-15-93; 2001-Or-054, ~~ 6, 7, 4-20-01) VaeanfJAbandon~d ProparEy Roglstration DaEabasO Ci State Contact Overseein Da artmart ONinance Title Ci Code Ordinance Descri fion Pro ram Website Pro ram Notes Chula Vista CA Doug Leeper Planning and Building Abandoned Ordinance No. 3080 An abandoned residential property is: defauhed residential property which modgage lenders have confumed www.ci.chula-vista.ca.us Code Enforcement Manager, Depadment Residentlal CVMC1S.60Abandonetl vacant. City of ChulaVsta PropsrryProgram Reside~alProperlyRegisfrauon Penal(las: dleeper@a.chula-visfa.a.us • Within 10 days the owner must ezemise theabentlonmenf clause In their modgage contract (951) 906-9274 •Owner must register the property with the coy and pay annual $10 lea. • Owner must immediately begin to secure and maintain the properly tothe neighborhood standard. • Owner must lure a local company fo inspect the properly on a weeky basis. • The properly must be posted with the name and 24-hour contact number of the company responsible for the weeky inspecSon, maintenance and security of the property. DeserlHotSpnogs CA PlanningDmision PlaoninGDivision Abandoned Title g, Chapter 100 An abandoned propertyis:apropertythalisvaranfandisundarcunentnotlceofdefardtarsubjecliotmstee's httpalwww.desert-hof- EnactetlApri12,2066.Modeledon Resitlen5al sale, or pending lien sale, or in deed booster In lieu of foreclosurelsale. springs.usl programs in Chicago, Detroit, and Chula (760) 329-6411- ezf. 260 Properly Vista. Regisuation Penafiy: Ordinance • When lender sends the first notice of defauH the lender must Inspacf the proparly to sue if if is oceupied. • If if isnat the lendermusthlre a pmperly management company within 5 miles of the property fo maintain fhe home. • The property management company must inspect the properly weekly to ansure ifs compliance with city codes. • Lenders must notify city within 10 days of a home going Into foreclosure. • Tdle holder must pay annual fee of $6D. • The properly must be posted with the name end 24hour contact number of the poperty management Washington DC Depadmanl of Consumerand Depadment of Consumerantl Vacant Pmperry DC Code 42.3131.12 Avaant property Is: a property has been unoccupied for a minimum of 3a consecutive days. www.dcra.washingtondc.gov Enacted December28, 20D6.Individuals RegulatoryAffairs RegulataryAffairs Registration canreportvacantproperfiesbysendinga ONinance Penalties: form (available on wabslle} to the city. The (202j 442-4332 •Owner must register properly annually. properly is Then Inspected for code • Owner must pay registration fee of $20 z the number residential & commercial units on fhe property. compCance. •Vacantresidontialpropefiesarefazatlat5.7timestheraleofoccupiedproperues. Vacant commercial properties are taxed at 2.7 Umes the rate of occupied propedies. • Owner must bring building fo code compliance. • lithe owner does not bring the building Ie compliance DCRAhas fhe authority fo abate the violation and recover the funds by placing a f en on the properly. • Cify can administer fines up fo $2000 and jail ume up to 90 days for unregistered and noncompliant properties. Wimington DE Depadment of Licenses and Department of Licenses and Vacant Property Chapter 4, 0427,125.0 eiseq. Avacant properly ks: e building that have been vacant for more than fang-live (45 cons~~ilva days. w~xi .ci.wilmington.de.us Passad in i960s and revised in 2003, fhe Inspections Inspections Registration Fee $25 annual fee was replaced titnth cunent Pmgrem Penalties: fee schedule. Cdy estimates that within 8rs( (302)57&3D96 • Pwner must rsgisier his or her property. three years afterthe revision vacant • Owner must pay a regishation fee fir each property that has been vacant for at least one (1 }yeas property owners spenf $39 million on • If owner fails to register all vacant propeNes, io amend fhe registration statement if applicable, orpay fhe renovations and reoccupied 300 vacant registration fee the city may institute criminal proceedings againstlhe owner of the property, including a buildings, pofenliai fine of $500. In atltlifien, the aty may bring a civil action to called any unpaid registraiian fees. Fee schedule: • 1 year vacant $500 • 2 years vacant: $1,000 • 3-0 years vacant: $2,000 •5-9yearsvacant: $3,500 •t0yearsvacant: $5,000 • 10+ years vaant: $5,000, plus an additional $500 for every year the property is vacant over 10 years. Page 1 VacantJAbandoned Property Registration Database Albany GA Planning and Development Planning artl Development Vacant Building, DNinance 0&164, Chapter 16, Avacani shudure is: a building unoccupied for 9d days or more. No program website Passed Feb 28, 2008. Exemptions for SeMCes Services Ordinance Article 1 §13.2 "fempomry emergency silua6ons" Penalles: Enforced by code enforcement inspectors P.O. Box 447 •Owoars mus4 within 10 days of notice from Cotle Enforcement, regiser their shudures with the city's doing block-by-block surveys of targeted 240 Pine AvenuefSuife 300 Planning and Development Services. areas. Nbany, Georgia 31702 • Registration must be renewed every six month the building is vacant Submit a plan inducting the length of time the owner ezpedsthe vacancy to eartinue, proposed rehabilrfafion Phone: (229) 43&3923 tc be made and description of measures haken to secure dmdure. Fax: (229 438-3965 • submit a form that grants permission for inspection and a descdpdon of action that wll be taken to secure the shudure. • Vacant shucture must be up to maintenance code. • If the sfmdure is fo be boarded up, owner must applyforaboard-up permit and abide by that code. Fee schedule: Unknown osted in Planning and Develo meot services office. Chicago IL DennisCalllnan Department ofBultlings TheVacan( Title l3-11&13-12 Vacant Propertiis:apropertythathasbeenvacantfnr30ormoredays. egov.citVOfchicago.orp Ordinancelsunctertheumbrellaofthe Vacant Mulriple Dwelling Building Vacant Properties Program, which began in Registrations Program Registration and Penalties; 20061c expand on 1heTroubled 8uild'mgs Administrator Insurance • Owner mud register bolding with the City of Chicago within 30 days after fr becomes vacant. Iniliatiue. Cedilcafion • Owner must pay $50 yearly regis6aiion fee. (312) 749-34Sfi Ordinance • Owner must secure the building • Owner must post a notice of vacancy on the building. • Owner must maintain the building fo code. • Owner must show evidence that they have liability insurance no less than $300K for resitlenllal properties $1M for commercial or industrial properties in 30 days fo defray potential demolition costs. Revere MA Nicholas R. Gatineau Department of Municipal VaantPropedy Chapter 8.05 Vacant property is: a building in which no one is residing or no business is being conducted, or buildings in No programwebsife Enacted in January 2007. Based on Diredorof Municipal Inspections Inspections Registration which coon: than half ofthe exterior windows and doors are broken, boarded up, orwithout a tuncloning lock. Wilmington's wcte. Dept Drtlinance Penalties: (781) 28fi-8197 • Wflhin 0.5 days of a building bewmingvacen~ the owner is required le r°gister itwlh the cih/s Departmentof Municipal Inspections. • by Nov.15 of each year, the owner must pay a regidration fee fo cosec the administm6ue costof"monifpring and ensuring the property maintenance° of the building. • Building owners Gave the rightto appeal the fees to the Board of Health, but only based on the issue of whether the building is vacanf and for how long. Those who don't register or pay their fees are subject to$300- perctayfines. Fee Schedule: • foes escalate based on the amount of ume the struc[uz has been vacont, 5om $506 for properies than have been vacanf for less Phan a year to $3,000 for (hose vacant for three years or more. Page 2 VacanttAbandoned Property Regtstaatlon Database Sl Paul MN S(eva Magner Planning and Oevebprnent Vaani building Chapter45 Avaant bu~ldmg is: a building tha(is unoceupied for 3G or ire days and is: httpalwwwstpaul.gov Code specfies ezemptian for houses That Vacant Buildings Supervisor Services Registration • Unsecured, or have mr~nt fns damage. Ordinance • Secured by other than normal means, or is (651) 28&2542 • A dangerous stmctura, or is • Condemned, or • Nas muhiple housing or Building Cotle violations, or • Is wndemned and illegally occupied, or • Is unoccupied far a period of ftme longer than one year during which Time the Enfomemeni Offcar has issued an oNer fi wrest nuisance conbillons. Penaflies: • Owners musi submit a Vaant Bulltling Registration Formv4thin 30 days, tlescdbing plans for rehabilitating and reoccupying or demoEshing the building. • Owners must disclose of pertinent ownership information. • Owners must daclose all peNnent Tien holders. • Owners must disclose anyarentTrulh~in5ale of Housing 6isclosure Repods. • Owners must pay an annual Vacant Buildng Registration fee of $256.00 within 30 days of mceMng this letter. • Owners must provide unencumbered access to ail podians of the premises of the build'mgs to permit the Enforcement Oscar io make a wmplefe inspection. • Owners must keep buii~ing secure and cede compliant Nbany NY Robert C. Foreai, Sr. Rre Depadment's OMSion of Vacantbuilding Ordinance No.57.62.98, Adicle Avacanf budding is: a building or porion thereofthat is unoccupied or Illegaltyoccupied for more thar, 36 days No program websife First enacted in 2000. In Jan 2006 fees Deputy Chief, Nbany Buildings and Codes Registry (passed in XIA§ 133-78 and is: increased from $260 fo $250 the firstyear. Deparlmen! of Fire and 2000} & Vacant • unsecured, or Legislation is currently enforced by the Emergency Services Bulltling • secured by other Than nornal means, or "Block by Block" iniflative,which targets Commdtee • is deemed unsafe by the Dept. of Fire, Emergency and Bm7tling Services, or sheets with the mast vacam properties by rcforeaiaOalbany-ny.org (created in 2005) • has multiple housing or building code violations, or surveying them looking forviolalions. The (618) 434-8645 • is unoccupied for over 365 days tlndngwhich 6'me the enforcement officer has issued an orderto correct code inifiative also uses a vacantbuildings toad violaflons fa give summonses to unregistered vaant propeties. _ Penalties: • Ownermust registerfhe property & pay fee. • Owner musi submit a vacant building plan for approval -must include either plans and fimefmme far demolition, or plans to secun; the building to compliance and Jusfificatlon for vaancy, or plans fir rehabilitz6on i and occupanoywhicir wdl be completed in less than 365 days. • if ownership is transferred the new owner must ra-register within 3G days. Foe schedule: • 1 year vacant $250 2 or 3 years vaant: $400 ' • 4 years vacant: $7,560 • 5 or more ears: $2,006 .Binghamton NY Keih, Namn Building and Cade Vacenf Buiitling s2&cr6 Avaeant building is: a building, a portion of a budding, or a sWeiure which is any one or more of the below: www.citVOfbin4hamton.com Enacted 5131107. Legislation part of "Blight I Vacant Properties 0f6cer Oeparfmeof Registration • Unoccupied and unsecured; Prevention NiGaGva° developed by a task Ordinance ~ Unowupied and secured by other than normal means; fine made up Cotle, Building and 38 Hawley Street, 4th floor • Unowupied and an unsafe building as determined by an EnfiorcementOfficer; ConsWction, Police, Legal, Planning, Binghamton, NY 13961 • Unoccupied and enforcement offcer has Issued an oNer fo corset cads violations; Housing and Community Development, • Illegally occupied; or Parks and Rec, and Finance oficials. Law (607) 772-7070 • Unoccnpied for a period of Ume over 30 days. modeled after legislation In Nbany and (607) 772-7162 fez Roahesfer NY; Wilmington, 6E; and Penalties: Evanston, IL. • Owner must register and pay an annual $.56 fee. • If the building remains vacant for a year or more, the owner must submit an annual $600 vaant budding fee. •Ownermustsubmiia lanforbuildin'srehabilflation.demolhionormaintenance. Page 3 vntr apnea Property ~sf ton Cincinnati ON EdwaN Cunningham Oepadment of Buildings and UacantBuilding Ord'manca fig-216 (kmendmant) Avacanf properly is: a propedyor6ered vacated due to noncompliance of a 13 point code by Buildings & wudw.cincinnati~h.go_v Supervisorof Inspections Inspecions Maintenance Sections 1109-11, 79,129 Inspections ~epf. License edward.cunningham@cincinnafi- Penalties: oh.gou • AppLcant muss apply fa Vacant Building Maiotenancs Ucense wrin 36 days of order to vaate. (513) 352-1909 ~ Applianf moss pay fee or request waiver. • Applipnf must provide evidence ofgeoeral Lability insurance for property (min of $300kfor residen(ial $1M fo commercial or induslrialj • Building must be broughtinfo VBML compliance (demolished, rehabil'tlafed or upto code) wrfhin 60 days of application. • Unpaid fees become liens. Fae schedule: • $900lyear for properties Thal have been odered or kept vacated for less than 9 year • $t,BD0lyear for properties that have keen ordered or kepi vacated for al Last 1, but less (hen 2 years • $2,7061year far properties that have been ordered or kept vacated for at leas( 2, but less Than 5 years • $3,500tyear for pmpedies that have been ordered or kept vara(ed font least 5 Sioux Falls SC Buifd'mg Services Planning and 8uilding City of Sioux Falls Article IX §19 Avacanf building is: a building Ihaf bas been unoccupied for30 days or more and is: wwwsiouxialls.org Fxampfions made for buildings under Services Ortlinaoce Article • unsecured, or permiffod consWction. 805-367-8254 IX Vacnt buildings • secured by other than normal means, or • a dangerous slmcfure, or • condemned, or • has city code violations, or condemned and illegally occupied. Penaltes: Owner must register & pay annual $290 fee. • Owner must present a plan for continued Cara and upkeep wtih a timetable far restoring fhe building to appropriate occupancy ore demolition plan. • Owner must keep builtli~q secured and maintain the building and Ifs grounds. Building mus(not be used for storage. • If ownership is transferred the new owner must re-register vdlhin 30 days. Milwaukee WI Martin Collins Depadment of Municipal Propetly Recording Chapter200, subchapfer8 & Avacant bulldmg Is: a non-0wneroccupied residential or commercial building orpad of such a building vtithout www.ciN.milwaukee.gov Enacted in 1993 as part of the Property Inspac6'ons ONinance Chapter276§32-7 acedifiateofoccupancyfhat RecordmgPragram.Theprogramis MCOLLI@mihvaukee.gov • has code violations, or designed Ie deal with vacant properties, (414) 28&2542 • remains vacant for 8 or more mon'~hs, or although Doty records occupied property. • is improperly secured Penalties: • Ovmer must appy for a certificate of occupancy & pay a $35 registration fee within 75 daps of sale, ftansfar or 6 month mark. • Property must be inspected and he fourtl up to wdo. • If a sWcture Is secured and vacant for 6 or more months the owner must within 30 days submL a detailed plan to sell, occupy, demolish, or rehabiLlate the bulltling. • If plans are not su6mifled or are not carried out the huiiding wi{i be declared anuisance, allowing the cityto impose fines no less than $150 per violation per day nor more than $5,000 for each unh found to be in violaton, in addition to afher legal action. Page 4 ORDINANCE NO. 1546 AN ORDINANCF ESTAI3LISHINC~ .4N EMERGENCY ?VIORATORIL11ifI ON TI-IE ISSUANCE OF RESIllENTIAL RENTAL OCCUPANCY LICENSES, PER CITY ORDINANCE SECTION SA.4Q1, ON PROPERTIES NOT LICENSED SINCE JANUARY ;! , Zaa6 Whereas, Mn. State Statute 4G2.355, Adopt, Amend Comps°ehensive Plan; Inter•in2 C)t-dir~anc~e, Subd. 4 authorizes a City to establish interim ordinances to regulate, restrict or prohibit any use or development in all or part of the City while the City or its planning department is conducting studies, or has authorized. a study to be done, and Whereas, the City of Columbia Heights is desirous of using this legislation to temporarily suspend the issuance of new occupancy licenses, per City Ordinance 5A.401, on properties not previously licensed since January 1, 240G City, and Whereas, the City of Columbia Heights has seen a marlted increase of 15G additional praperties licensed for rental within the past tluee years; specifically-G1$ licenses in 2005, 722 licenses in 200G and 774 licenses in 2007, and Whereas, neighborhoods are experiencing additional marketing difficulties as shown by the City's significant foreclosure properties (estimated to be 277 properties at the time of passage of this Ordinance with an estimated minimum total of 300 properties for years 2007 and 200$}, as illustrated on a map dated. May 5, 200$ and held at the Community Development Departtiieiit as reference, and Whereas, the City of Columbia heights has concerns with increasing rental property demands and the ability of these rentals to potentially have long range effects on selected neighborhoods if not properly controlled. The sharp increase of rental properties may create greater crime and pz-operty code compliance issues, decreasing property market values and destabilizing general community health, and Whereas, the City can reasonably expect that the demand for more rental housing licenses will increase due to the number of city-wide foreclosures, which is estimated to be at a minimum 375 units for the years of 2007 and 2008 collectively, and Whereas, the City needs time to properly plan, analyze and potentially implement new ordinances, programs or strategic policies, and Whereas, the analysis to be undei-talcen will include: 1) Development of a community health inventory (which will consist of compiling data of crime, rental rates, reinvestment through building permits, sales, housing values, code enforcement issues, etc.) in order to determine specif c neighborhood issues 2} Determination of the impact of the City's recently adopted and modified International Property Maintenance Code 3} Determination of the need for a Residential Inspection before Sale Program ~l) Determination of the effects of the foreclosure market on the City's rental and single family housing enviromnent 5) Completion of the City's statutorily required Comprehensive Plan, 6) Development of a Master Work Plan to deal with identified issues, and 'vVhereas, the City Council for the City of Coluzn'oia Fleights has detez~n~ined that a s'aspezrsion o_f new occupancy licenses is critical to preserve and maintain the health of its neighborhoods, Now Therefore Be It Resolved, that the City Council of the City of Columbia Heights ordains: 1) For a period of six months from the date of approval of this Ordinance, no occupancy license, as required by City under city Cade SA.401 will be issued for a property that has not previously been licensed by the City since January 1, 2006 2) This Ordinance shall be effective upon passage. Offered By: Nawrocki. Second By: Williams Roll Call: Ayes: Peterson., Williams, Nawrocki, Diei~zn, Kelzezzberg `~ Attest: ---_r_ ~I'atricia Muscovitz, CMC l City Clerk Gary L. "Waiting list" for rental licenses 4344 2"d Street 4942 5~' Street 4450 Van Buren 1.455 42"`~ 4308 Sti' Street 4224 Jackson Street 3801 Buchanan 4960 7`~' Street 1013 42 '/Z Ave 4204 7t~' Street 3848 2'/z 1.843 39`x' Street 4036 Washington. 4171 Maureen Dr 4132 2"d 1637 37`x' Street 1322 41 '/z Ave xxxx North. Upland Crest Them Goes the Neighborhood: The Effect of Single-Family Mortgage Foreclosures on Property Values liy Dan Immergluck City and Regional Planning Program Georgia Institnte of Technology and Geoff Smith Woodstock Institute June,zoas Woodstock Institute 407 S. Dearborn, Chicago, IL 60605 ~3IZ} 4z~-so~o e-mail: Woodstock@woodstockinst.arg web page: http://wwFVV.woodstoclcinst.org ©2005 By Woodstock institute Executive Summary Since at least the late 1960s, foreclosures of single-farniiy homes have been v~iewcd as a serious threat to neighbor°hood stability and community well-being. Although initially considered a problem primarily associated with the Federal Housing administration's loan. programs, recent research has shown that the explosion in foreclosures that started in the 1990s was primarily driven by the growth of high- risk, conventional subprime lending. Foreclosures, particularly in lower-income neighborhoods, can lead to vacant, boarded-up, or abandoned properties. These properties, in turn, contribute to the stock of "physical disorder" in a community that can create a haven far criminal activity, discourage social capital formation, and lead to filrther disinvestment. If foreclosures lead to such negative effects, then we would expect them also to lead to lower property values in their immediate vicinity, especially for residential property. This report uses a unique database that combines data on foreclosures during 1997 and 1998 with data on neighborhood characteristics a~~d more than 9,600 single-family pi°operty transactions in the city of Chicago in 1.999 to measure the impact of nearby foreclosures on property values. Even after controlling for more than 40 characteristics of properties and their respective neighborhoods, we find that foreclosures of conventional, single-family loans have a significant impact on nearby property values. Results include the following: Our most conservative estimates indicate that each conventional foreclosure within an eighth of a mile (essentially a city block) of asingle-family home results in a 0.9 percent decline in value. Cumulatively, this means that, for the entire city of Chicago, the 3,750 foreclosures in 1997 and 1998 are estimated to reduce nearby property values by more than $598 million, for an average cumulative single-family property value effect of $159,000 per foreclosure. This does not include effects on the values of condominiums, larger multifamily rental properties, and commercial buildings. Less conservative estimates suggest that each conventional foreclosure within an eighth of a mile of a property results in a 1.136 percent decline in that property's value and that each foz°eciosui°e from one-eighth to one-quarter mile away results in a 0.325 percent decline in value. This less conservative finding corresponds to a city-wide lass in single-family property values of just over $1.39 billion. This corresponds to an average cumulative property value effect of more than $371,000 per foreclosure. Isolating properties in low- and moderate-income census ti°acts, we find that nearby foreclosures have an even larger effect on single-family property values. Our conservative estimate shows property values declining by 1.44 percent for each. foreclosure within one-eighth of a mile of a house in a low- or moderate-income census tract. Given are average selling price of $111,002 for properties in low- and moderate-income tracts, this amounts to a loss of nearly $1,600 per foreclosure for the average property. Our less conservative estimate indicates that for each additional foreclosure within one-eighth of a mile of a house, property value is reduced. by almost 1.8 percent, or approximately $1,989 per foreclosure for the average single-family property in a low- ar moderate-income tract. The analysis in this report demonstrates that conventional foreclosures-which are increasingly driven by the subprnne lending markethave a statistically significant and financially significant effect on nearby property values. If policy makers are to make wise judgments about how and how much to regulate high-risk mortgage lending, they must consider the very significant costs of high-risk lending. These costs are not just bolzle by individual homeowners and lenders, but also by communitiesmany of them lower-income anal working class neighborhoods-who Have no direct role in the mortgage lending process. This study shawl that irresponsible lending has real implications for communities and cities- implications that can be measured, at least partially, in lost wealth and a decreased property tax base. ,~ ~ ~ ~ `/ IL March 2008 Subprime _ Total of 388 loans for 55421 7~"" ~ "~ ~ ` ~-~'`~ ~-'"' ~ Loans Category* other Non owner occupied 31 A Average current interest rate B 8.568 Average Balance B $175,472 Average loan. age B 29 months Origination in 2008 0 B Origination in 2007 34 B Origination in 2006 132 B Origination in or before 2005 191 B Average FICO score 631 Number of cash out finances B 178 Purchases B 148 Loans used far other purposes B 31 Loans w/ prepayment pena]ty B 181 Loans w/ second lien _ _ B 121 Loans w/ high LTV Ratio S 167 Loans not missing a payment in last vear _____ B 1.44 Loans w/ current payment B 180 Loan payment past due 30-59 days B 27 Loan payment past due 60-89 da s B 17 Loan payment past due 90+ days B 13 Loans in foreclosure B 37 Loans ul REO B 67 # interest only loans B 91 Loans w/variable rate D 284 of reset loans D 127 # of loans resetting D 0-5 months=63 6-11 months =52 12-23 months =30 Over 24 months= 12 157 total Loan Count Uluverse Categories .~. -Statistics calculated on first lien and active {including RFO) loans. B. -Statistics calculated on first lien, owner occupied, and active (including REC}} loans. C. -Statistics calculated on first lien, owner occupied and active loans (illeluding REO}, where "pre-payment penalty in force" denotes the loan age is less than the pre-payment penalty term. D. -Statistics calculate don first lien, ovtnler occupied and active (including RHO) variable rate laasis. REO =Real T='state Owned. property that goes back. to the mortgage company after an unsuccessful foreclosure auction. T'he mortgage company owns the property and there is no longer a mortgage. REO - F3uying Bai~tlc Owned Real Estate Page 1 of 2 Buying Bank Owned Properties (REO} by Walt Harvey Walt and Aria Harvey are Realtors in Honolulu, Nawaii. So you'd fiI<e to buy a hank owned property? You've watched the late-night infomercials and you're ready to do the bank "a favor" and take a problem off their hands. Pius, you expect to make "a killing" in the process. Sounds great and it might just happen, but first you should take a look at some facts and get prepared. REO vs. Foreclosure An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessfu{ foreclosure auction. You see, most foreclosure auc±ions da net even result in bids. After ail, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale. Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property. There may also be other liens against the property. Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. it becomes an REO, or "real estate owned" property. P,EC7 Properties For Sale The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner's association dues. As a purchaser of an P,EO property, the buyer will receive a title ins!Irance policy and the opportunity to investigate the property. A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if you're successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don't get caught up in a 'bidding war' and pay over market value. It's an old myth that "foreclosures" are a bargain. Slow Banks Sett REO's Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in "dumping" real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory. Once you make an offer to purchase, banks generally present a "counter-offer." It may be at a higher price than you expect, but they have to demonstrate to investors, shareholders and auditors that they attempted to get the highest price possible. You should plan to counter the counter-offer. Your offer orcounter-offer will probably have to be reviewed and approved by several individuals and companies. Even once an offer is accepted, the bank may insert wording like "..subject to corporate approval with 5 days." Property Condition Banks always want to sell a property in "as is" condition. Most will provide a Section 1 pest certification, but not unless you include it in your offer and negotiate the paint. They will allow you to get all the inspections you want (at your expense}, but 'they may not agree to do any repairs. http://www.reaiestateabc.com/homeguide/reO.htm 8/19/2008 REO - Luying t3anlc Owned Real Tstate Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct. Even though you agreed to "as is,"always give the bank another opportunity to make repairs or give you a credit after you've completed your inspections. Sometimes they'll re- negotiate to save the transaction instead of putting the property back on the market, but don't take it for granted. Banks do not want to sea a lot of proprietary disclosures; they are exempt from the California Seller's Transfer Disclosure Statement (TDS-14}. If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements. Most banks will not provide financing on their REOs but it doesn't hurt to ask. Especially if the property has extensive damage and you are purchasing it "as is." l1ttp://w-ww.realestateabc.co~nlhomeguide/reo.htm Page ? 01' 2 8/19!2008 IT L I I T 590 40th Avenue N.E., Columbia Heights, MN 55421-3&78 (763) 706-3600 TDD (763) 706-369? Visit Our Web.cite at: www.ci.colu~mbia-{teights.nm.~~s tlayor: Gary L. Peterson Couotcilmembers: Bruce Nawroclci Bobby Williams Tammera Diehm Bruce ICelzenberg City Manager: Walter R. Fehst COLUMBIA HEIGHTS COMMUNITY DEVELOPMENT DEPARTMENT DATE: August 8, 2008 TO: Scott Clark, Community Development Director FROM: Sheila Cartney, Assistant Community Development Director RE: Revenue Source(s) and other options for Housing Dollars As part of the rental moratorium staff determined that the city's revenue sources for housing dollars should be identified and explored. Tl1is memo will provide preliminary information on city revenue as well as other housing dollars that may be available. Upon Council direction staff can start looking into same of these programs. The Community Lending program through Fannie Mae appears to be the most effective program for the city if the direction is to buy certain properties as they become available. City Revenue $900,000 in TIF dollars (approximately $400,000 in current revenue will. be residual in four years}. HUD Good Neighbor~hood~~°o~~•a>~z: City can purchase a FIUD owned home far $1, plus closing costs, if the home has been on the market for 6 months. The city is in the process of purchasing one home (4011 St'') through this program and is now registered as a buyer. Unfortl.ulately this will be rare. Co~nn~unity Develo~Tnent Block Gr°ant (CD13G): Used to create affordable housing, create jobs through expansion and retention of business. The city has used CDBG for various projects in the past. Fannie Mae Cona»~urzity Lending: Essentially this program provides a direct 1i11e of credit to the city through Farnlie Mae. This is a five-year Line of credit that has to be paid back at the end of the five years. The pay bark can be with any money (grant, city money etc). The minimum borrow amount is $500,000 and the maximum is $SOmillion. This money can be used for any housing projects, no income restrictions apply, the city can even loan THE CITY OF COLUMBIA HEIGHTS DOF_S NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SF_RVICES EQUAL OPPORTUNITY EMPLOYER this money out to developers if so desired. The interest rate ranges between 2-3% depending on the city's credit. Collateral for the line of credit depends on the city's credit history. There are different methods of paying back the loan as well. All at once at the end of the five years, interest only until the live years, monthly payments, annual payments etc. ~`ommtmir~~ Capaeity Development Office {CCDO} llleed and Seed: "connnunity-based strategy sponsored by the US Department of .lustice, is an innovative, comprehensive mutli-agency approach to law enforcement, crime prevention, and community revitalization." This program is used to prevent, control, and reduce violent crime, drug abuse and gang activit~~ in designated neighborhoods, "weed" out violent criminals and drug abusers and ``seed'' with human services, including prevention, intervention and neighborhood restoration. There is a five-year eligibility period for a maximum of ~lmillion in funds. Minneapolis and St. Paul have used this program on target neighborhoods. Metropolitan Council Land Acquisition fo~^ Affo~^dable New Developr~~ent (LAAND): Funds available for cities to acquire sites} for affordable housing that are consistent with the community's future affordable housing needs and the stated strategic growth goals. Projects constructed on acquired land shall. have a minimum of 2d% of housing unites developer for affordable units. Units shall be affordable to families eanling 60% of the area medium income in the Metro area. Density requirements for the Green Cormnunities criteria, MN overlay must also be met. Livable Comn~aunities Demonst~^ation Account (LCDA): Funds development and redevelopment projects that achieve comlected development patterns linking housing, jobs and service and. maximize the development potential of existing infrastructure and regional facilities. Local Housing Incentive Account (LHIA): Funds lifecycle and affordable rental and ownership housing development and preservation. Grants are matched 1:1 ratio by the recipient. Department of Employment and Economic Development (DEED) Contarrrir~ation Clean up hwestigation G~^ant P~^og~^a~n: Provides grant money for contamination clean up and investigations for redevelopment. The City participated in this grant for the Huset Park Condo redevelopment. MN Housing Finance Agency~MHFA) MN U~^ban and Rug^al Ho~nesteadi~~g Program (MURL): provides homeownership opportunities to homebuyers who will assist in stabilizing declining neighborhoods, Prevent the spread of blight though the preservation of existing, dilapidate singe family 1lousing within a designated area. Administrators (city} are provided grant funding to acquire and rehabilitate such housing. Rehabbed homes are sold to at-risk homebuyers via an interested-free contract far deed. homebuyers also agree to follow a "good neighbor" policy; monthly applications process. Homebuyers must be low income at time of purchase Co~n»~unity Revitalization Fuizd (CRV): Funds for owner-occupied affordable housing. Funds can be used for acquisition of land existing houses, construction of houses, demo. The type of funds are 1) Interim Construction Financing - 20 month construction loan at 2% interest. 2) Deferred Loans -must provide funds to an eligible homebuyer in a form of an interest-free deferred loan 30-year term. 3) Grants - to finance value gap, and/or covering costs beyond what the eligible homebuyer could not afford, Two Rivers Community Land Trust Provides affordable housing by purchasing the land and house and only selling the house while maintaining the land in a trust. This reduces the cost ofthe house by at least 25%. If the city is interested in this program we are to contact the trust and give them leads on properties that may be good for this program. Foreclosure Workshop Open House Receive foreclosure information and talk with one of our erns r e ors. ednesday, September 17, 2008 4:30 p.m. - 7:30 p.m. Fridley Community Center 6085 7t11 Street Fridley, ~~v 55432 For questions or direetions sell: 763-783-4880 % s'fi ;-. 63rd (SVn N[ -. v,` m ~-_, .n. 4E.. z.,m ~fi ~~ ~ n~ a ... n~.~ _ c~ . ixsmet En Ne ~ '~ ;, z z N[ m ~~ ,~ Q, - .a,T, qj ~. c ii ~a _ z a _, ... ,' _., F 61St five NC .__.._ ~ s _ ,., ~~ m m m ~ ~1..6p7n AUt1 wq ~ ~>ru,n~., kr,:. ~' ~ a i ~ I ~ ~ ~ Aa ~ ~ ~ i z ~ ~' ~ m 1 "59ttiR kE i ~ r ~ 59th by 'kE c _ 59[It AVr'idE .... > ~' 250M ~ m ~ iz m ~ 1~ ..... hlar9o!d Tzr kC TM itkU ft 58th dve kE~? Yahm! ~e.Qa„__ - _' FR.L~T Financial Fitness Workshop • Credit Rebuilding • Budget Repair • Debt Reduction Thursday, September 18, 2008 6:00 p.m. - 9:00 p.m. Fridley Community Center 6085 7`h Street Fridley, MN 55432 ~. r-, ~- ~ . ®~~ ~~ Foreclosure Prevention Counselors provided by: ,: c. ~ L ~1~' ~ Anoka County Community Action 1'rograsn Website: www.accap.org Produced By: Cities of Fridley, Columbia Heights, Spring Lake Park, Hilltop, and ACCAP. -~.~-~ AGE1`~IDA Work Session. Discussion 8/26/08 1. Overview of Discussion. 2. Rental Housing a. Inspections b. Moratorium 3. Abandoned/Vacant Property Ordinance 4. Future Housing Strategies a. Purchasing propehties b. First time home buyer program c. Financing Options 5. Other Additional hlfoi7nation is attached. The '4 GO. Market updates for goo Twin Cities Communities A free research tool from the North Metro REALTORS®Association Brought to you by the unique data-sharing traditions of the REALTOR®community olu is eights Anoka County, MN 2007 2008 Change 2007 2008 Change ~ New Listings 68 61 - 10.3% 402 429 + 6.7°/a Closed Sales 17 24 + 41.2% 114 139 + 21.9% Average Sales Price $189,635 $152,667 - 19.5% $187,188 $151,575 - 19.0% Percent of Original List Price Received at Sale 94.1 % 91.0% - 3.4% 94.8% 89.9% - 5.2% Average Days on Market Until Sale« 104 157 + 50.9% 118 168 + 42.9% Single-Family Detached Inventory 173 164 - 5.2% -- -- -- Townhouse-Condo Inventory 51 35 - 31.4% -- -- -- 'Does not accounE for list prices from any previous listing contracts "City market time figures were first available in August 2006, accounts for previous listing contracts Activity-Most Recent Month Activity-Year to Date 68 ~ New Listings ~ New Listings m"Closed Sales s1 4e2 ®CI d S I _ ~., ,.; "1 j 24 _, ___` _ __, r- 2007 2008 Avera~e Sales Price 189,635 $152,667 ~ 2007 -~ ^ 2008 $187,188 $151,575 azs ose a es T :~ k r I I 114 139 Ratio of Sales Price to Original List Price 94.1 % 91.0 I 94.8 200 r E3 200E 89.9 July Year to Date July Year to Date Average Days on Market Until Sale Inventory of Homes for Sale 1sa 157 173 164 07 X2007 11s - ~2008 ,~., 9 51 35 __ _..._. __ -----__.I I __. ___.~ .__. __.I I I __.. July Year to Date Single-Family Detached Townhouse-Condo Some of the figures referenced in this report are for only one month worth of activity. As such, they can sometimes look extreme due to the small sample size involved. For broader historical market information, please feel free to contact us. The 100© is a trademark of the Minneapolis Area Association of REALTORS®. The North Metro REALTORS© Association uses it under license. 2007 2008 RECORDS O_F PROPERTY SAES BEG. APRIL 200.8 DATE PURCHASE-PRICE ----- - ------ - ----- ', ~i ~ EMV OF PROPERTY ~ REDUCTION % ~, INFO FROM ~ SECTION 25: I-- __ - - - _- ---_i----- ~ 1340 Pierce Terr 4/14/2008 157,590 204,600 I -22.80% HS 4531 Fillmore St I~ Feb-08 200,000 ', 225,300 I -11.20% CRV 1340 Pierce Terr 4/3/2008 157,590 204,600 -22.80% CRV 2227 Maiden Ln _ j 4/29/2008 195,000 187,100 ~ 4% i CRV 1070 Grandview Crt #303 _ ; 2/1/5 008 149,900 200,900 i -25% CRV 4550 Polk St ~ ~ 7/16/2008 185,000 _ ( 180,200 ~ -2°t° HS 4532-34 Fillmore St - - - -- j 12/312007 _ - 189,900 _ 328,600 ~ _ } 42% I CRV 1150 Polk PI ~ ~ 7/2/2008 ~ - 222,000 _ -- _--- j 248,600 _..--- ! -11 % ~ - -- CRV 1227 45 1/2 Ave _ _ -j .6/26/2008 ~ _ 156,400_ _ _ ~ 192,200 ~ -19% CRV SECTION 26: 8/14/20081 * i* 664 48TH AVE 4/22/2008 120,950 199,500 -39.30% HS 666 46 1/2 Ave 4/23/2008 119,000 180,200 -34% HS * 5101 7th St 1/23/2008 84,000 139,200 -40% C;RV 5240 7th St ~ __ 2!25/20.0__8 _ -195,000 j 198,200 j -1.60% _ _CRV _ ---- 4650-52 Wash 1 _-~ 3/28/2008 155,000 ~ 218,200 ~ -29% CRV 4654-56 Wash ~ 3/28!2008 155,0.00 i 234,800 -34%° CRV 4505 4th St _ ~ 3/21 /2008 ~ __ _ ~_ - - 793 Parkside bn - ~ ~ 110,000 ~ 152,000 j 27.70 /° CRV ~ _ 5/16/2008 j 164 697 ~ 196,200 ~ -16% HS r 4753 4th St ' 5!8/2008 '; 149 900 158,300 __ _ -5% HS ---- ~-- __ ----- _ - -- -- ---- ----- , _ _---- 1- - - --T 620 Sull Dr ; 511 512 0 0 8 { 235 000 216,900 + ~ HS 818 50th Ave _~ 4/28/2008 167 500 200,000 ; -16% _ CRV 786_ Parkside Ln new _ T 5/17/2008 155 000 243 400 j -36.30% __; CRV _ j - -- _- ---CRV 781 Parkside Ln anew __ ~ 5/30/2008 ~ 159 900 _ _ 238,500 331° r- - 790 Parkside Ln new -~ 5/30/2008 ~ 159,900 - _ _ 230,700 '~ -30.60% ! CRV -!- 813 Parkside Ln new j 5/30/2008 I 230,900 ~ 226,400 2% CRV 5135 7th St 5/23/2008 ~ 149,900 197,800 -24% CRV * 4729 5th St _ - 7/31/2008 1_ 161,800- L ___ 186,600____ j-_ -13% _HS 651 46th ave ; 7/7/2008 ~ 136,000 159,800 ~ -15% HS ' 4645 Washington 10/20/2007 165,000 224,300 -26% CRV _ ° 782 Parkside Ln ~ ~ 5/30/2008 159,900 j 243,400 34 /° CRV __ -- __ - - 801 Parkside Ln ! 1 6/20!2008 ; 230,900 ~~~ 226,400 2%° i CRV I 793 Parkside Ln _ 5/16/2008 ' _ 164,697 238,500 -31 % CRV '~ -- - _ - _- -- --- ------ -- .__ ---- - - 1- 785 Parkside_ Ln { '_5/30/2008 { 161,900 238,500 __ -32% CRV - I _ ---- j - - ~ , --- -- _ - - _ --- o - ------ -L 5025 6th St j 6/30!2008 , 160,000 213,800 25 to CRV I, 4924 6th St 6/27/2008 115,000 155,400 -26% CRV * 4558 Jefferson st _~_ 7/8/2008 ~ 90,000 ~- 160,000 -44% CRV 4244 Washington St 7/7!2008 99,750 189,200 -47.00% CRV 4148 Quincy St 6/27/2008 90,000 163,100 -44.80% CRV 4453 Madison St _ _ I 8/7/2008 I 159,500 i 174,000 -8.00% HS _ _ - -- -- _ - -- -- -- - - - ---- -- - _ --- SECTION 36: ~ I i I 1611 37th Ave 4/1/2008 119,531 198,400 -39.80% HS 4212 Arthur St 4/10/2008 130,000 189,600 -31.40% HS 4151 Stinson Blvd j Feb-08 ~ 201,465 ~ 334,600 -40% I CRV 1116-18 45th Ave 3!20/2008 139,023 209,200 -33.60% CRV 1323 41st Ave ' ~--- ~ 5/28/2008 ~ 200,000 l 211,700 -5.60% ', HS - Y ~ 3912 Ha es St -- ~ _ _ i 5/30/2008 _ - - 197,900 I 187,800 ° 5.40 /° ~ -HS _ _ ___ 4146 Cleveland ~ 4/11/2008 ; 193,500 _ __ __ 199,500 I _ _ -3% C,RV 4108 Stinson Blvd 4/10/2008 185,000 _ ~ 221 300 -16.40% ~ I CRV - --- 1323 41st Ave ~ 5/28/2008 200,000 212,700 _ I -6% ~I CRV _ 4428 Tyler_St - 'I _ 4/25/2008 ~ 169,888 _ 182,200 ~ -6.70%~ _ CRV ~ 4110 Cleveland St ! _ 5/16/2008 203,000 _ ~ 208,900 -2.80% 'I CRV 3926 Ulysses St 3/25/2008 200,000 267,300 -25% CRV 1011 41st Ave #112 ~ ~ 5!19/2008 j 95,000 138,600 ~ -31.40% ~ CRV ~; 3919 Tyler St 4/10/2008 52,000 175,700 -70% CRV 4226 Polk St -- _ -- ~ 5/23/2008 ~ ( 160 000 178,400 - 10.30% ~ ~ CRV ! 1327 43 1/2 Ave ~ --- -- 6/4/2008 ~ ---. ---.._ 188 900 _ _ _ ~ 188,800 _ __ _ 0 ~ _ - - CRV -.. 1127 42 1/2 Ave 6/13/2008 ! -- 215,000 213,000 1% CRV 4207 Fdlmore st ~ 6!18/2008 ~ __ 241,000 ~ 222,000 i 7.80% _ CRV 1455 42nd Ave 6/13/2008 182,000 235,300 -22.60% CRV 1314 43 1/2 Ave ~ ; 6/24/2008 199,000 i 205,500 ~ 3 /° ~ CRV ____ _ 1600 39th Ave ~ __ 5/30/2008 j _ _ 204,900 j 208,600 _ ~ -1.80% ~ _ ~ CRV 1316-18 CirTerr Blvd 4/3012008 144,400 292,900 -50.60% CRV I* Page 1 of 1 Scott Clark -Columbia Heights Moratorium From: Gene Savers <little zit ayahoo.com> To: <Scott.Clarksci.columbia-heights.mn.us> Date: 8/22/2008 3:04 PM Subject: Columbia Heights Moratorium This message is in reference to the Columbia Heights rental moratorium. We appreciate and fully understand the reasoning behind the moratorium. Everything has to start somewhere and the intent of the moratorium to improve community properties is commendable. Slaving said that, allow me to explain our situation. In August 1984 we purchased a condominium in the La Belle Park complex at 1011. 41st Ave, apartment 303, for the wife's mother who could not afford to buy or rent with only her social security income. Mrs. Nordquist resided there until March of this year, 2008, at which time at age 94 it was necessary that she go into a musing home. We advertised the condo for rent and accepted an applicant in May only to learn the City of Columbia l-Ieights had a moratorium in place. We had to cancel the rental agreement. We entertained the idea of selling the property but the market is embarrassing low and we do not want to be forced into a money lasing situation. We feel the moratorium. should have either excluded certain properties or allowed for exceptions such as our situation where the property changed from private to rental due to circumstances beyond our control. Had we signed a rental agreement prior to the 1st of May we would have been exempt from the rule. However it tools from the time of Mrs. Nordquist moving out in March to the 1st of May to dispose of her furniture and get the condo ready for renters. Tt is costing $330.00 a month in fees, taxes and electrical to maintain the property. We strongly urge the City Council to cancel the moratorium or grant us an exception to allow us to rent the condo. Thank you very much, Clarence & Debris Savers 17135 705th Ave. Dassel, Mn. 55325 320-587-1005 file://C:\Documents and Settings\CC1-l-User\Local Settings\Temp\~Pgrpwise\48AED59Bechgw10016C3... 8/22/2008 This map is for display purpases only It is not a legal document and should not be used as such. Any questions concerning this map should be sent to the Gity of Golumbia Heights Gommunity Deveiopment Department. ~~®V V FD~~ Map Date: August 22, 2008 Sources: Golumbia Heights Gommunity Development Golumbia Heights GIS <~ -- ~ -- - - ~; _I - ~ _~~ -_ I: CI _ =-~ -~= .~~~ r' ~ I i f __ fi - n _ _ ~..J: _,.._ ~ ~ S - - - - _ _ __. _ ~~ ~ :. .... _ -_ _ s _ ~. a __ ~,-..i ~, nor -_ ~ c«w=. L _ - - --. _ m - F G G' -G - [PJPS _... ~ ~ /''t` max,- .. __ ~ _ ~ 1 ' - ~ ~ ~ s ~~ (1 ~x ' -~ ~' ~ _ _ a ~ ~~.J ~ .- K ~ a o ~ I__ mow, ~ ~ ~ ~ - ~~ _ ~- i _~'~ l ads I _ i ,. - °_ - ~ `-1 - - ~ `~r ~ ~ ~~ ~~- = r ,- ra x ' ~ ~ I ~-~ - _<~_ ~ ~. _ ,. -- __ _ _ __ ~ ~1~ - ~ I~ _ _ ~ ~' - 5 y's'u" ~ I 5 .r ~ _ _ _ _ ~ _ _... ~ 1 ~a~,~ j _ .. ~ _ - i ~' vE ~ _. . ~ - - ~ sum ' i`.,-~ i~rl _ ~ -'~_ . _ ~ - ~ - I _ zz_~ i, H , _ _ [ _ - __ J.. U ~ ~ ~" - . j~ caaaowEw .', _ ~, i, i I ~ .^_ _ ~ ~ ~ a "~ ~' T'-~ I G ~-~ Total Number of Single and Two Family Properties: 1200 ' '- ~_ h ~ _' . ~a ~ ~-____ _ -- _ ' ~ , ~ ~ ~a; _~ ~I -Total Number of Rental Properties: 113 ~ ~~ ~ _ ~ ~~ _ _~.~. ~~' ~--~ ~„`i Percent Rental: 9 2% .. ~,~ .~~ ~, o I ._ _ ~,~_ _'' ~ -~ I-_~~~ _~ ~l ~~ _ - _ ~ -~ , Total Number of Foreclosure Properties: 89 ~ , ~ ~ - ~ ,--~ . ~ ent Foreclosure: 7 4% c -- _ ~. ~~ ~ > ~ r_.. ~= `` I 3 .rte ^ _ „-. _ r. ~ ~__'.. :I s ~ ~' _ /~, ~ r J I ~ 6 i v ~~ ~ ~i,, '~I ~ II I ~ - ~ ~ ~ .: y ~~ 5 ~ Y..~ -- ~` ~ ~ - ~~^ ~ ~ ~- t ~ u J ' ;-, ~ r" ~.'s---~°~ ~:wa .gat ~~, _. ~, ~ .. _:_ -= ~ ~ _ .. ~ro ~ ~ ~~ -~ = o~ - ~ ~ ~~ I , L~ ~-~ ~ , A ~,' a.. ~~ ~ I' ~~~ ~~ ti, Z"x ~ ;' x-~,, ..~ ~ iv ~C~ ~-~ it ~_ ~~ ~~~ .. ~._ -, t -. I~~y~pp ~ ~ : ~G a - r « ~f-' ~ ~ I f w I~ ~ _ ~ _ ", t a~uE r ~ L_ - K I I ~~ c7 ~ _~ j~ r ,°-'~ °"9' ~" > ~ '~ , err.. 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