2024-09 Ordinance Creating Chapter 70.2 - Registration of at Risk Properties

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-CHAPTER 70.2- -REGISTRATION OF "AT-RISK" PROPERTIES- I. PURPOSE AND INTENT. It is the purpose and intent of the Council to establish a process to address the deterioration,crime, and decline in value of City neighborhoods caused by property with foreclosing or foreclosed mortgages located within the City, and to identify, regulate, limit and reduce the number of these properties located within the City. It has been determined that owner-occupied structures are generally better maintained when compared to vacant structures, even with a diligent off-site property owner. Vacant structures or structures owned by individuals who are economically strained and unable to meet their mortgage obligations are often not properly or diligently maintained, which contributes to blight, declined property values, and have a negative impact on social perception of the residential areas where they are located. It is the Council's further intent to establish a registration program as a mechanism to help protect neighborhoods from becoming blighted through a lack of adequate maintenance of derelict vacant properties and those that are in foreclosure, and to provide a mechanism to avert foreclosure actions through timely intervention, education, or counseling of property owners. A registry which is kept up to date is in the public interest, as it is a mechanism to ensure that foreclosed properties, nuisance properties and/or other vacant and distressed (VAD) properties that financially over-burden and strain valuable limited public resources,do not impair the efficient economical and indispensable governmental functions of the City. 2. DEFINITIONS The following words, terms, and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning. At-Risk Registrable Property shall mean: (a) Any real property located in the City,whether vacant or occupied,that is encumbered by a mortgage subject to an ongoing foreclosure action by the mortgagee or trustee, that has been the subject of a foreclosure action by a mortgagee or trustee and a judgment has been entered, or has been the subject of a foreclosure, sale where the title was transferred to the beneficiary of a mortgage involved in the foreclosure and any properties transferred under a deed in lieu of foreclosure/sale.The designation of a foreclosure property as"registrable" shall remain in place until such time as the property is sold to a non-related bona fide purchaser in an arm's length transaction,designation as a Registerable Property is changed by the City as provided herein, or the foreclosure action has been dismissed; or (b) Any property that is vacant for more than sixty (60) days and has had a property maintenance violation judgment entered in administrative or circuit court in the previous 12 months, or lacks actively used utilities and services, and where the property has evidence of derelict vacancy.