SUBJECT/RECOMMENDATION:
Title
Request authority to initiate foreclosure actions on behalf of the City to recover amounts owed on municipal liens imposed against certain real property. (consent)
Body
SUMMARY:
On July 19, 2018, the City retained Weidner Law, P.A. for representation in municipal lien foreclosure matters, and that agreement was recently amended and renewed. Weidner Law has filed several foreclosure lawsuits against blighted properties to ensure that code compliance is attained.
Filing a lawsuit does not preclude the City from settling such a matter, if compliance is achieved during the process or an agreement is made with a prospective buyer to bring the property into compliance. Any settlement of such a claim must comply with City Code Sec. 2.527 and would be brought back to Council for approval if required.
City staff has identified several properties as viable candidates for foreclosure based on such variables as: 1) the length of time that the property has been in violation; 2) whether the property is currently in compliance with city codes; 3) whether the property is homestead or currently occupied by someone; and 3) whether there are any superior liens identified on the property from a basic search.
The following properties have been identified as viable foreclosure candidates because they appear to be unoccupied or abandoned and in a continuous state of disrepair:
1915 Macomber - Case 41-23, Case 48-24
1115 La Salle - Case 203-19
1113 La Salle - Case 39-24
2387 Nash St - Case 15-23, Case 144-23
1234 Eldridge - Case 60-22, Case 128-23
The properties identified for foreclosure have progressed through the City’s code enforcement process and have been determined to be in ongoing violation of the City’s municipal codes. These properties present a continued fiscal burden to the City, can pose public safety concerns, and continue to contribute to neighborhood blight.
The subject properties are vacant parcels or unoccupied structures that have remained unmaintained and noncompliant despite repeated enforcement efforts. Over the past several years, the Planning and Development Department’s Code Compliance Division has spent significant staff time and resources responding to citizen complaints, monitoring nuisance activities or neglect and addressing blight through abatement activities at these locations.
The City has made extensive efforts to achieve voluntary compliance, including the issuance of Notices of Violation, posting the properties, administrative enforcement actions (MCEB), mailing of cleanup cost recovery invoices, and annual follow-up notifications through the City Clerk’s Office. Despite these efforts, property owners have failed to respond or bring the properties into compliance.
As of the date of this agenda item, the subject properties collectively carry an estimated $575,400.00 in outstanding daily accruing fines and have required 48 separate city-funded cleanup and abatement actions over the past two to five years. These costs remain unpaid and continue to accrue. Without further intervention, the City will continue to incur additional expenses to address safety issues and maintain minimum standards. Two of the parcels are vacant lots that are unmaintained by the owners, and the city has abated numerous times. The inspectors have not been able to contact with the owner to gain voluntary compliance. The other three parcels are single family homes that are all vacant, have no active utilities, and have outstanding fines accruing for abandoned building and other items in addition to what has now become routine property abatements each year.
Initiating foreclosure proceedings represents the most effective and fiscally responsible method to recover public funds, eliminate persistent blight, and return these properties to productive use. This action is being pursued as a last resort following the exhaustion of voluntary compliance and administrative enforcement options and is intended to protect neighborhood stability, public safety, and taxpayer resources.
The liens that the City seeks to foreclose also attach to any other non-exempt real property that the violator owns. As a result, additional properties may be included in the foreclosure action if they are cross-encumbered by the subject liens, and other remedies such as money judgments may be sought in order to obtain compliance.
Based on the above, the city staff is requesting authority to initiate foreclosure actions to recover the amounts owed on the municipal liens that attach to the properties listed above.
APPROPRIATION CODE AND AMOUNT:
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