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 contribute
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 the lack of adequate maintenance of properties that
are in foreclosure or foreclosed, and to provide a mechanism to avert
foreclosure actions through timely intervention, education, or counseling
of property owners.
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:
DEFAULT
That the mortgagor has not complied with the terms of the
mortgage on the property, or the promissory note, or other evidence
of the debt, referred to in the mortgage.
ENFORCEMENT OFFICER
Any law enforcement officer, code enforcement officer, fire
inspector, building inspector, or other person authorized by the City
to enforce the applicable codes.
EVIDENCE OF VACANCY
Any condition that, on its own, or combined with other conditions
present, would lead a reasonable person to believe that the property
is vacant. Such conditions may include, but are not limited to, overgrown
and/or dead vegetation; past-due utility notices and/or disconnected
utilities; accumulation of trash, junk or debris; abandoned vehicles,
auto parts and/or materials; the absence of furnishings and/or personal
items consistent with habitation or occupancy; the presence of an
unsanitary, stagnant swimming pool; the accumulation of newspapers,
circulars, flyers and/or mail; statements by neighbors, passers-by,
delivery agents or government agents; and/or the presence of boards
over doors, windows or other openings in violation of applicable codes.
FORECLOSURE or FORECLOSURE ACTION
The legal process by which a mortgagee, or other lien holder,
terminates or attempts to terminate a property owner's equitable
right of redemption to obtain legal and equitable title to the real
property pledged as security for a debt or the real property subject
to the lien. The legal process is not concluded until the property
obtained by the mortgagee, lien holder, or their designee, by certificate
of title, or any other means, is sold to a nonrelated bona fide purchaser
in an arm's-length transaction to satisfy the debt or lien.
MORTGAGEE
The creditor, including but not limited to, trustees; mortgage
servicing companies; lenders in a mortgage agreement; any agent, servant,
or employee of the creditor; any successor in interest; or any assignee
of the creditor's rights, interests or obligations under the
mortgage agreement; or any other person or entity with the legal right
to foreclose on the real property, excluding governmental entities.
OWNER
Every person, entity, or mortgagee who, alone or severally
with others, has legal or equitable title to any real property as
defined by this chapter; has legal care, charge, or control of any
such property; is in possession or control of any such property; and/or
is vested with possession or control of any such property. The property
manager shall not be considered the owner.
PROPERTY MANAGER
Any party designated by the owner as responsible for inspecting,
maintaining and securing the property as required in this chapter.
REAL PROPERTY
Any residential or commercial land and/or buildings, leasehold
improvements and anything affixed to the land, or portion thereof,
identified by a property parcel identification number, located in
the City limits.
REGISTRABLE PROPERTY
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, 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 nonrelated bona
fide purchaser in an arm's-length transaction or the foreclosure
action has been dismissed; or
B.
Any property that is "vacant" as defined in this section, below.
REGISTRY
A web-based electronic database of searchable real property
records, used by the City to allow mortgagees and owners the opportunity
to register properties and pay applicable fees as required in this
chapter.
SEMIANNUAL REGISTRATION
Six months from the date of the first action that requires
registration, as determined by the City, or its designee, and every
subsequent six months. The date of the initial registration may be
different from the date of the first action that required registration.
UTILITIES AND SERVICES
Any utility and/or service that is essential for a building
to be habitable and/or perform a service necessary to comply with
all City codes. This includes, but is not limited to, electrical,
gas, water, sewer, lawn maintenance, pool maintenance, and snow removal.
VACANT
Any parcel of land in the City that contains any building
that is not lawfully occupied for a period of at least 60 days. A
building shall not be considered vacant if:
A.
The owner is engaged in ongoing, good faith attempts to rent,
sell or renovate as evidenced by proof of attempted sale or lease
via contract with a realtor or appropriate listing, or by procurement
of appropriate permits or contracts for renovation; and
B.
Such attempts do not exceed a period of one year; and
C.
The property is not exhibiting "evidence of vacancy" as that
term is defined in this section, above.
There is hereby established a registry cataloging each registrable
property within the City, containing the information required by this
chapter.
Any person who violates any provisions of this chapter shall,
upon conviction thereof, be subject to a fine of not less than $250
nor more than $1,000 or by imprisonment for a period not exceeding
15 days, or by both such fine and imprisonment. Each day that a violation
is permitted to exist shall constitute a separate offense.