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HomeMy WebLinkAboutR002554 CCM 1-26-2010 CITY COUNCIL AGENDA STATEMENT ~!!~ CITY OF .~ (HUlA VISTA JANUARY 26,2010 Item '1 ITEM TITLE: ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE SECTION 15.60 REQUIRING THE REGISTRATION OF ABANDONED RESIDENTIAL PROPERTIES RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A NEW CITY COUNCIL POLICY GOVERNING ENFORCEMENT OF CHULA VISTA MUNICIPAL CODE SECTION 15.60 SUBMITTED BY: DEPUTY CITY MANAGEBBEVELOPMENT SERVICES DIRECTOR ~ REVIEWED BY: CITY MANAGE V 4/STHS VOTE: YES D NO I X I SUMMARY The Development Services Department has prepared amendments to CVMC Section 15.60 Abandoned Residential Property Registration Program and a new Council Policy governing the enforcement of CVMC Section 15.60. These proposed modifications were prepared in response to concerns raised by members of the local real estate sales industry. These amendments and new Council Policy address several of the concerns which were brought to the Department and City COLillcil's attention over the last year. ENVIRONMENTAL REVIEW The Environmental Coordinator has reviewed the proposed activity (amendment to the existing Registration of Abandoned Residential Properties Ordinance) 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 because it will not result in a physical change to the environment; therefore, pursuant to Section 15060(C)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council conduct the public hearing, place the following ordinance on first reading and adopt the resolution. 9-1 Item No: ~ Meeting Date: 1-26-10 Page 2 of 6 BOARDS/COMMISSION RECOMMENDATION None , I oj I , DISCUSSION The Code Enforcement Division drafted the Abandoned Residential Properties Registration Ordinance in June of2007, both in response to an increased number of complaints involving vacant abandoned homes and in anticipation of an unprecedented increase in residential foreclosures. The City Council adopted the ordinance in July 2007 and it became effective October of that same year. Since that time much attention has been given to the Residential Abandoned Property Program (RAPP). Over 400 jurisdictions from across the nation have contacted the City's Code Enforcement Division to discuss the ordinance and corresponding program. Many of these jurisdictions have used it as a template for implementing similar programs within their communities. The program has been noted and featured in newspaper and magazine articles across the country. It has been recognized by the League of California Cities and received a Helen Putnam Award for Excellence in Internal Administration and by Harvard University as an outstanding program and was a finalist in the Kennedy School - Ash Institute - Innovations in American Government Award competition. Additionally it was featured in Congressional Hearings involving the foreclosure crisis. Vacant financially distressed - abandoned - properties have a negative impact on surrounding neighborhoods. According to reports form the US Conference of Mayors, HUD, V A and others; these abandoned unmaintained properties can reduce property values and marketability for up to a quarter mile. Numerous communities have been severely impacted by this crisis. The impact in Chula Vista has been lessened by the implementation of this proactive program. When compared to other fast-growth, high-foreclosure cities that did not take a proactive approach Chula Vista has seen much less blight and crime resulting from abandoned properties. Although a successful model for addressing, as well as preventing, the problems and blight that are prevalent with abandoned financially distressed properties, there have also been concerns raised by members of the local real estate industry. Staff has had numerous meetings with the real estate, lending, foreclosure and field servicing industries regarding the implementation of the RAP Program and possible enhancements that are intended to improve the program. These enhancements should make registration easier and less costly, communication with all parties more readily accessible and compliance more attainable without weakening staffs ability to enforce the provisions of the ordinance. Staff believes that the majority of the concerns listed have been addressed through the proposed amendments and Council Policy. 9-2 Item No: 3_ Meeting Date: 1-26-10 Page 3 of 6 In addition staff has made non-substantive changes for clarification and correction of typographical errors. The following is a list of the concerns raised with the RAP Program along with staff responses to those concerns. It is not an exhaustive list, but a summary of the significant issues staff is aware of: Not all vacant properties are abandoned. In some instances they are being marketed during the foreclosure process. Staff response: The proposed ordinance amendments include a revision to the definition of "abandonment" that will exempt properties "currently being offered for sale, rent or lease" during the foreclosure process. Although there is a definition for vacant property there is no definition for occupied property. Staff response: The proposed ordinance amendments include a definition of "Evidence of Occupancy." The ordinance requires that the property be inspected but does not define what an inspection is. Staff response: The proposed ordinance amendments include a definition of "Inspection. " The registration requirement of $70..00 per calendar year is not prorated so a property registered ill December must be reregistered in January at an additional cost of $70.00. Staff response: The proposed amendments remove the registration renewal requirement and allow the initial registration to remain valid on a property as long as it is subject to the ordinance. There was an additional requirement placed on the responsible party to update City records whenever information required on the registration changes. The update is required within ten (10) days of the change in information. In addition stalT is proposing the use of a national electronic registration database as an alternative to hard copy registration with the City. An electronic database would remove the requirement to complete a City of ChuIa Vista registration form and submit the $70.00 registration fee. Staff has been recognizing this system as a beta test for the last six months and is finding it is a successful alternative. The ordinance requires that the property be kept free of discarded personal items such as furniture, clothing, appliances etc., but the landlord/tenant law requires that the lender notifY the borrower alld hold these items for a period of time prior to disposal. Staff response: The ordinance does not require the lender to dispose of such items. These types of items may be stored in the interior of the garage or house without being in violation. In addition, such items may be stored offsite at a mini-storage or similar facility. The proposed anlendments would add "the exterior" to the section to clarification. "The exterior of properties subject to this section" must be kept free of such items. 9-3 Item No: L Meeting Date: 1-26-10 Page 4 of6 The ordinance requires that the landscaping be brought up to a higher standard than the rest of the neighborhood. StatI response: The existing ordinance requires that properties subject to the ordinance be maintained to the neighborhood standard, and since the standard may vary from neighborhood to neighborhood the "Neighborhood Standard" is defined within the ordinance. i i ilIaintaining to the neighborhood standard is too subjective. What if there is no landscaping to maintain? Staff response: Although the ordinance defines neighborhood standard, the proposed amendments would add the caveat, "Insofar as there is existing or previously existing landscaping. . ." front and visible side yards must be maintained and, "If no landscaping previously existed at the property in the front and visible side yards, installation is not required under this ordinance." Some properties do not have automatic irrigation systems. And, We are in a drought and need to conserve water. Staff response: The proposed amendments allow the use of "turf stain," which is an environmentally safe stain/dye that colors dead/dormant vegetation green. This stain/dye is used on a commercial basis by golf courses and sports teams as well homeowners and lasts approximately three months. The amendment includes the requirement to "re-stain" if washed off or faded. The ordinance requires that gates be secured but fines have been issued even after the gates were closed and latched. Staff response: Although the ordinance states, "Secure manner includes but is not limited to the closure and locking of. . . gates .. .", the proposed amendments would provide the clarification that "Locking includes measures that require a key, keycard, tool or special knowledge to open or gain access." Posting a sign with the property manager's name and contact number is only advertising that the property is a vacant and invites vandals and thieves. Staff response: Unmaintained vacant properties are attractive to children, vandals and thieves without any signage. The conditions of unmaintained properties are advertisement enough to identify these properties for them. Many real estate agents place 6" X 24" red lettered banner signs of "FORECLOSURE" or "BAt'JK OWNED" atop six foot high tee-signs advertising the property for sale. Various Internet sites, including those of local real estate companies/agents, have web pages dedicated to foreclosures and bank owned properties. Information on the location of these vacant properties is readily available. What isn't readily accessible to neighbors is the contact information for the party responsible for the property. In response to the concerns raised, the proposed amendments would reduce the size of the posting from 18" X 24" to 8 Y," x II," consistent with that required by HOD, V A and other federal insurers. Issues voiced by the local real estate industry not amended/addressed III the attached amendments include: 9-4 Item No: -t!L- Meeting Date: 1-26-10 Page 5 of6 Requiring a bank to im]Ject and/or take action on property they do not yet own require that they trespass. Staff response: Trespassing, otherwise referred to as unauthorized entry of a dwelling unit, requires that a person enter or remain in a dwelling unit without consent or remain after being advised to leave. The lenders mortgage contract provides them consent (authorization), from the borrower, to enter, secure, maintain and remedy issues, including code violations, that could otherwise jeopardize the lenders collateral i.e.: the property. As such no amendments to these scctions are proposed. In addition, "owners" may not be able to legally claim trespass on properties they have abandoned. Fines are too higll and e;'(cessive given the lack of severity of the violations. Staff response: All propertics subject to this section are issued a Notice of Violation, which includes advisement of the potential actions and fines if compliance is not obtained within thirty (30) days. No fines are assessed if compliance is obtained. Many of the properties that have received fines were later brought into compliance and improved beyond what the ordinance requires. In these and other cases the fines have been reduced, and even waived based on timcly compliance, the condition of other properties under the control of the lender/owner and overall improvements made. In all, nearly 33% of the total of the fines issued under the program have been reduced/waived. The cost to appeal City action is too high and should be lowered or removed altogether. Staff response: The cost (deposit) for filing an appeal is set by CVMC 140.020(C) and is not exclusive to the RAP Program. Any changes to that section could negatively impact other departments/divisions that must use the process. It should be noted that the deposit is returned if the appellant prevails. The deposit is retained by the City to cover additional costs associated with appeal hearing, if the appeal is denied. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and 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. CURRENT YEAR FISCAL IMP ACT No impact. ONGOING FISCAL IMPACT There could be a slight to moderate reduction in revenue generated from the loss of the $70 registration fee if lenders avail themselves to the on-line electronic registration option proposed in the amendments. If 100% of the lenders use the electronic system, the reduction would be approximately $126,000. Any reduction in revenue will be offset by a reduction of hourly staff needed to receive and process registration forms and payments. 9-5 , I I I i I I :1 'I , ATTACHMENTS Proposed amendments to CYMC 15.60 Proposed Council Policy governing enforcement of CYMC 15.60 Item No: ~ Meeting Date: 1-26-10 Page 6 01'6 Prepared by: Doug Leeper, Code Enforcement Division !vlanager, Development Services Department 9-6