HomeMy WebLinkAboutR002554 CCM 7-17-2007
CITY COUNCIL
AGENDA STATEMENT
:$'Yf:.. CITY OF
~~~~ CHUIA VISTA
Item No.: I~
Meetin2 Date: J1ID'-17,-2007
ITEM TITLE:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AMENDING CHAPTER X (BUILDING) OF THE CITY'S MASTER FEE
SCHEDULE
ORDINANCE OF THE CITY OF CHULA VISTA REQUIRING THE
REGISTRATION OF ABANDONED RESIDENTIAL PROPERTIES (FIRST.
READING)
SUBMITTED BY:
DIRECTOR OF PLANN
CITY MANAGER
~
ACTING ASSIST T CITY MANAGER "';>}
REVIEWED BY:
4/5THS VOTE: YES
NO X
BACKGROUND
The Planning and Building Department is requesting the City Council adopt an Abandoned
Residential Property Registration Program as a means of ensuring that residential neighborhoods are
spared the negative impacts associated with abandoned residential properties. This Ordinance will
require lenders that own or are responsible for abandoned homes in Chula Vista to pay a fee to
register those homes with the City's Code Enforcement Section and to retain the services of a local
property management company. Registration will facilitate periodic monitoring by Code
Enforcement staff and provide a mechanism for staff and neighbors to alert the local property
management company of the need to take action to maintain the property. A fee of $70 per property
will be charged as a means of recovering the cost of administering the program.
ENVIRONMENTAL REVIEW:
The Environmental Review Coordinator has reviewed the proposed activity for compliance with the
California Environmental Quality Act (CEQA) and has determined that the activity is not a
"Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to
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Date, Item No.: 15
Meeting Date: July 17. 2007
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Section 15060(C)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no
environmental review is necessary.
RECOMMENDATION
That the Council adopt the ordinance and resolution establishing an abandoned residential property
registration program and establishing a fee in the master fee schedule to cover the cost of
administering such a program.
BOARDS/COMMISSION RECOMMENDATION
The Board of Appeals and Advisors met on June 12, 2007 and unanimously endorsed the
establishment of the abandoned residential property registration program and associated fee. See
section 3C of Attachment "A".
DISCUSSION
It has been a well-reported fact that there has been a significant increase in the number of residential
properties in default or foreclosure. Chula Vista has been particularly vulnerable to this
phenomenon due to the large number of new homes that were constructed during 2001 to 2005.
Many of these new homes were purchased using risky financing arrangements offered by lenders
specializing in sub-prime loans. Many of the Adjustable Rate Mortgages (ARM) have now adjusted
upwardly to the point that the owners cannot afford the new payments nor can they refinance their
homes due to lack of equity or inability to meet the new qualifYing standards to acquire a new loan.
The owners are defaulting and lenders are foreclosing on an increasing number of homes.
Residential properties that fall into [mancial distress or default often become vacant. Routinely,
security and maintenance of these properties is neglected by the out-of-area lender while the
property processes through the default/foreclosure process. This process can take several months to
complete; all the while the property is abandoned with no maintenance or security.
The mortgage industry has reported that the existence of an abandoned and distressed property
typically reduces adjacent property's values by approximately $50,000. This situation not only
impacts the individual property owner, but also the City's property tax revenues. It is in the City's
best interest to invest staff resources into a program that will help maintain property values. ln
addition, the Chula Vista Police Department has reported seeing a trend develop that indicates that
some of these abandoned homes are being used for illegal purposes by transients, drug users and
even becoming the sites of massive unsupervised parties. Responding to these types of incidents
represents an unwarranted drain on our public safety resources.
DECISION-MAKER CONFLICTS:
Not Applicable:
Staff has reviewed the decision contemplated by this action and has determined that it is not site
specific and consequently the 500 foot rule found in California Code of Regulations Section
18704.2(a)(1) is not applicable to this decision.
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Meeting Date: Julv 17. 2007
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FISCAL IMPACT
Assessing a registration fee of $70 per abandoned residential property is anticipated to generate
approximately $50,000 annually to the general fund. This revenue is projected to be equivalent to
our commitment of staff resources at the established full cost recovery rate.
ATTACHMENTS
Attachment A: Board of Appeals and Advisors Minutes 6/11/07
Attachment B: Master Fee Schedule amendment
Prepared by: Brad Remp, Building Official, Planning and Building Department
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