[HISTORY: Adopted by the Common Council of the City of Buffalo 5-28-2019, effective 5-28-2019.
Amendments noted where applicable.]
The Common Council of the City of Buffalo intends to establish
a process to address the deterioration, crime, and decline in the
value of City neighborhoods caused by properties with defaulted mortgages
located within the City. It is the Common Council's intent to
establish a Mortgage in Default registration program as a mechanism
to protect neighborhoods from becoming blighted through lack of adequate
maintenance and security of abandoned properties subject to a mortgage
or properties subject to mortgages which are in default.
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. Any other word
that is not defined shall be interpreted by the plain meaning of the
word.
The City of Buffalo or its designee.
A property is in default when the mortgagor has not complied
with the terms of the mortgage on the property, or the promissory
note, or other evidence of debt, referred to in the mortgage.
Any full time law enforcement officer, building inspector,
fire marshal, code enforcement officer, or other person authorized
by the City to enforce the applicable codes.
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 bills and/or disconnected
utilities; accumulation of trash or debris; abandoned vehicles, auto
parts, or materials; the absence of furnishings or personal items;
the accumulation of newspapers; statements by neighbors; and/or the
presence of boards over doors, windows, or other openings in violation
of applicable codes.
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 non-related bona fide purchaser
in an arm's length transaction to satisfy the debt or lien.
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.
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 such property; and/or
is vested with possession or control of any such property. The Property
Manager shall not be considered an Owner.
Any party licensed in accordance with the provisions of Chapter 265 of this Code, designated by the Owner as responsible for inspecting, maintaining, and securing property as required in this chapter.
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 within the limits
of the City of Buffalo.
Any Real Property located in the City, whether vacant or
occupied, that is encumbered by a mortgage in Default, is subject
to an ongoing Foreclosure Action by the Mortgagee or Trustee, has
been 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 "default/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 and
any Default on the mortgage has been cured.
A web-based electronic database of searchable real property
records used by the City, or its designee, to allow Mortgagees the
opportunity to register properties and pay applicable fees as required
in this chapter.
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 that the property is Registrable. The date of
the initial registration may be different than the day of the first
action that required registration.
Any utility 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,
sewer, water, lawn maintenance, pool maintenance, and snow removal.
Any parcel of land in the City that contains any building
or structure that is not lawfully occupied.
This chapter shall be considered cumulative and not superseding
or subject to any other law or provision for same, but shall rather
be an additional remedy available to the City beyond any other state,
county, or local provisions. This chapter relates to property subject
to a mortgage which has been determined by the mortgagee to be in
default.
Pursuant to the provisions of this chapter, the City, or its
designee, shall establish a registry cataloging each Registerable
Property within the City, containing the information required by this
chapter.
A.
Any Mortgagee who holds a mortgage on Real Property located within
the City shall perform an inspection of the property upon it being
in Default or Defaulted by the mortgagor or prior to the issuance
of a notice of default.
B.
Property inspected pursuant to Subsection A of § 277-5 that remains in Default or Defaulted shall be inspected every 30 days by the Mortgagee or Mortgagee's designee. If an inspection shows a change in the property's occupancy status, the Mortgagee shall, within 10 days of inspection, update the occupancy status of the property registration.
C.
Within 10 days of the date any Mortgagee declares its mortgage to
be in default or Defaulted, the Mortgagee shall register the Real
Property with the City Registry, and, at the time of registration,
indicate whether the property is Vacant, and if so shall designate,
in writing a Property Manager to inspect, maintain, and secure the
Real Property subject to the mortgage in Default or Defaulted. A separate
registration is required for each Registrable Property.
D.
Initial registration pursuant to this section shall contain at a
minimum the name of the Mortgagee, the mailing address of the Mortgagee,
the email address of the Mortgagee, the telephone number of the Mortgagee,
and the name of the Property Manager and said person's address,
email address, and telephone number.
E.
At the time of initial registration each registrant shall pay a nonrefundable
Semi-Annual Registration fee of $500 for each Registrable Property.
(1)
If, at the time of any subsequent Semi-Annual Registration of a property,
the property is reported as vacant, the Semi-Annual Registration fee
shall increase by $500 per Semi-Annual Registration. No fee, however,
shall be for more than $3,000 per Semi-Annual Registration.
(2)
If, at the time of any subsequent Semi-Annual Registration of a property,
the property is occupied by tenants or the mortgagor, the Semi-Annual
Registration fee shall remain $500 per Semi Annual Registration.
F.
If the Defaulted Mortgage and/or servicing on a property is sold
or transferred, the new Mortgagee is subject to all the terms of this
chapter. Within 10 days of the transfer, the new Mortgagee shall register
the property or update the existing registration. The previous Mortgagee(s)
will not be released from the responsibility of paying all previous
unpaid fees, fines, and penalties accrued during that Mortgagee's
involvement with the Registrable Property.
G.
If the Mortgagee sells or transfers the Registrable Property in a
non-arm's-length transaction to a related entity or person, the
transferee is subject to all the terms of this chapter. Within 10
days of the transfer, the transferee shall register the property or
upgrade the existing registration. Any and all previous unpaid fees,
fines, and penalties, regardless of who the Mortgagee was at the time
registration was required, including, but not limited to, unregistered
periods during the foreclosure process, are the responsibility of
the transferee and are due and payable with the updated registration.
The previous Mortgagee will not be released from the responsibility
of paying all previous unpaid fees, fines, and penalties accrued during
that Mortgagee's involvement with the Registrable Property.
H.
If the Defaulted Property is not registered, or the registration
fee is not paid within 30 days of when the registration or renewal
is required pursuant to this section, a late fee equivalent to 20%
of the Semi-Annual Registration fee shall be charged for every thirty-day
period, or a portion therefor, the property is not registered and
shall be due and payable with the registration.
I.
This section shall also apply to properties that have been the subject
of a foreclosure sale where title is transferred to the mortgagee
as well as any properties transferred to the mortgagee under a deed
in lieu of foreclosure or by any other legal means.
J.
Properties subject to this section shall remain subject to the Semi-Annual
Registration requirement, and the inspection, security, and maintenance
standards of this chapter as long as the property remains Registrable.
K.
Failure of the Mortgagee and/or property Owner of record to properly
register or to modify the registration to reflect a change of circumstances
as required by this ordinance is a violation of this chapter and shall
be subject to enforcement by any of the enforcement means available
to the City.
L.
If any property is in violation of this chapter, the City or its
designee may take necessary action to ensure compliance with and/or
place a lien on the property for the cost of the outstanding obligation
and any additional cost incurred to bring the property into compliance.
A.
Properties subject to this chapter shall be kept free of weeds, overgrown
brush, dead vegetation, trash, debris, building materials, accumulation
of newspapers, flyers, notices, except those required by state, local,
or federal law, discarded personal items, or printed material or any
other items that give the appearance that the property is abandoned
or not being properly maintained.
B.
Registrable Property shall be maintained free of graffiti or similar
markings by removal or painting over with exterior-grade paint that
matches the color of the exterior of the structure.
C.
Yards of the Registrable Property shall be maintained in accordance
with the applicable code(s) at the time registration is required.
Maintenance shall include, but not be limited to, watering, irrigation,
cutting, and mowing of required ground cover or landscape and removal
of all trimmings.
D.
Pools and spas shall be maintained so the water remains free and
clear of pollutants and debris, or shall be drained and covered, and
shall comply with the regulations set forth in the applicable codes.
E.
Failure of the mortgagee or property owner of record to properly
maintain the property as required by this chapter may result in a
violation of the applicable code, and lead to the issuance of a citation
or notice of violation in accordance with the applicable codes of
the City.
F.
In addition to the requirements of this chapter, all Registrable
Property is required to be maintained in accordance with all codes
and regulations of the City.
A.
Properties subject to this chapter shall be maintained in a secure
manner so as not to be accessible to unauthorized persons.
B.
A "secure manner" shall include, but not be limited to, the closure
and locking of windows, doors, gates, and other openings of such size
that may allow a child to access the interior of the property or structure.
Broken windows, doors, gates, and other openings of such size that
may allow a child to access the interior of the property or structure
must be repaired.
C.
If a property is Registrable, and the property has become vacant
or blighted, a Property Manager shall be designated by the Mortgagee
or Owner to perform the work necessary to bring the property into
compliance with the applicable codes of the City, and the Property
Manager must perform regular inspections to verify compliance with
the requirements of this chapter, and any other applicable local,
state, or federal laws.
D.
In addition to the above, the property is required to be secured
in accordance with the applicable codes of the City.
E.
When a property subject to this Chapter becomes Vacant, it shall
be posted with the name and contact telephone number of the Property
Manager. The Manager shall be available to be contacted by the City
Monday through Friday, 9:00 a.m. to 5:00 p.m., legal holidays excluded.
The sign shall be placed in a window facing the street and shall be
visible from the street. The posting shall be no less than 18 inches
by 24 inches and shall be of a font that is legible. The posting must
include the Property Manager's Name, the affiliate company of
the Property Manager, and the Property Manager's Telephone number
and email address.
F.
Failure of the Mortgagee and/or property Owner of record to properly
inspect and secure the property, and post and maintain the signage
noted in this section, is a violation of this Code and may result
in a citation by the City's code enforcement officers.
The provisions of this chapter are cumulative with and in addition
to other available remedies. Nothing contained in this chapter shall
prohibit the City from collecting on fees, fines, and penalties in
any lawful manner; or enforcing its codes by any other means, including,
but not limited to, injunction, abatement, or as otherwise provided
by law or ordinance.
Any Enforcement Officer shall have the authority to require
the mortgagee and/or owner of record of any property affected by this
section to implement additional maintenance and security measures
as required by the applicable codes.
Any Enforcement Officer, or any person authorized by the Enforcement
Officer, shall be immune from prosecution, civil or criminal, for
reasonable, good faith entrance upon real property while in the discharge
of the duties imposed by this chapter.
It is the intention of the Council that the sections, paragraphs,
clauses, and phrases of this chapter are severable, and if any phrase,
clause, sentence, paragraph, or section of this chapter shall be declared
unconstitutional by the valid judgment or decree of a court of competent
jurisdiction, such unconstitutionality shall not affect the remaining
phrases, clauses, sentences, paragraphs, and sections of this chapter.
