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Administrative Foreclosure A RECOMMENDED MECHANISM TO ADDRESS BLIGHTED AND ABANDONED PROPERTIES WITHIN THE CITY OF HALLANDALE BEACH 1.

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Presentation on theme: "Administrative Foreclosure A RECOMMENDED MECHANISM TO ADDRESS BLIGHTED AND ABANDONED PROPERTIES WITHIN THE CITY OF HALLANDALE BEACH 1."— Presentation transcript:

1 Administrative Foreclosure A RECOMMENDED MECHANISM TO ADDRESS BLIGHTED AND ABANDONED PROPERTIES WITHIN THE CITY OF HALLANDALE BEACH 1

2 Background September 22, 2014 the HBCRA presented 19 properties that have been identified as distressed and/or abandoned 16 of these properties have existing code violations and code liens in excess of $100,000 Only one of these properties has a homestead exemption All of these properties have gone through Special Magistrate and continue to accrue daily fines Currently, the City is without a formal administrative process by which action is taken to exercise statutory foreclose 2

3 Overview The Problem A growing number of abandoned and blighted properties with existing code violations Stalled private development as a result of blighted conditions A lack of a formal administrative foreclosure process that is clearly defined, timely and cost efficient 802 NW 5 Terrace Liens $280, NW 7 Street Liens $472, NW 3 Court Liens $298, Examples of Blighted and Abandoned Structures

4 4 Example of New HBCRA Single Family Home Next to a Blighted and Abandoned Structure Additional Examples of Blighted or Abandoned Structures 34 SW 8 Street Liens $646, New CRA In-Fill Housing Unit Unsafe Structure (Recently Demolished by the City; but still privately owned) Liens $297,201.96

5 Overview Proposed solution Adoption of an administrative foreclosure process An administrative foreclosure process would serve as an on- going mechanism to gain site control of properties that meet established criteria The process would be adopted by Resolution and Chapter 9 of the City’s Code of Ordinances would be amended by Ordinance This ordinance is intended to spur compliance with the City’s Code of Ordinance by non-responsive property owners 5

6 Florida Statute (03) provides: “A certified copy of an order imposing a fine, … may be recorded in the public records and thereafter shall constitute a lien against the land on which the violation exists ….” After three (3) months from the filing of any code enforcement lien which remains unpaid, the local governing body may authorize the city attorney to foreclose on the lien or to sue to recover a money judgment for the amount of the lien plus accrued interest. No lien created pursuant may to the provisions of Chapter (03) may be foreclosed on real property which is homestead under s. 4, Art. X of the State Constitution. Money judgments also do not apply to real property or personal property covered under s. s. 4, Art. X of the State Constitution. 6

7 Proposed Criteria for Administrative Foreclosure  Non-Homestead properties, unoccupied properties  Properties with existing code violations that are blighted and unsightly which affect the health, safety and public welfare of the surrounding community  Properties with accruing fines and liens in excess of $100,  Properties suitable for redevelopment  Minimum of four (4) attempts to contact property owner to achieve voluntary compliance or voluntary sale  Other considerations include but not limited to, other liens on the property, unpaid taxes and the like  Program would sunset in 2025, concurrent with the end of the CRA’s life 7

8 Current Administrative Foreclosure Process 8 Pursuant to section 9-59 of Ordinance No the Mayor and City Commission may authorize the City Attorney to initiate foreclosure on code enforcement liens and/or to recover a money judgment for the amount of the liens. Utilizing the current process the estimated time frame to foreclose is approximately 12 to 15 months (uncontested).

9 Proposed Administrative Foreclosure Process City and CRA Identify Properties Meeting Criteria for Administrative Foreclosure Obtain Title Search of the Property Staff submits IWO request to City Attorney’s Office for Foreclosure Evaluation City Attorney’s Office does not recommend Administrative Foreclosure based on full review City Attorney’s Office recommends Foreclosure Action based on full review Foreclosure Complaint Filed in Court Final Judgment / Foreclosure Sale Acquisition of Title 9 Conveyance of the Property to the HBCRA for Redevelopment Purposes

10 Proposed Administrative Foreclosure A formal administrative foreclosure process will enable the following: A means of quickly identifying and evaluating those properties that meet eligibility criteria for foreclosure An on-going mechanism to mitigate blighted property conditions Identifies the intent of the use of property once foreclosed upon (redevelopment) Allows for quicker and more cost effective method to foreclose on blighted properties The estimated time frame to foreclose under the proposed process for administrative foreclosure is approximately 6 to 9 months (uncontested). 10

11 Summary The objective of a City Code regarding property maintenance is to establish a consistent aesthetic standard throughout the community The primary goal of Code Enforcement is to seek voluntary compliance In seeking to fulfill the City’s strategic priorities, an assessment of current processes, and their limitations is critical The recommended administrative foreclosure process establishes a structured, on-going mechanism to reach the City’s desired goals. 11

12 Benefits of the Administrative Foreclosure Program Established criteria for property eligibility Spurs non responsive property owners into compliance Creates an on-going mechanism for in-fill redevelopment Enhances efficiencies between mission of the City and mission of the CRA Considers and addresses the impact distressed properties have on public safety Stimulates private development and investment 12

13 Next Steps City Attorney’s Office will prepare an Ordinance amending chapter 9 (Property Maintenance) for 1 st reading for City Commission consideration. At 2 nd reading of the Ordinance, City Staff will bring back a Resolution, which approves and adopts the City’s administrative foreclosure process. Staff will include an element of communication to existing property owners and other stakeholders about new process. 13


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