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HomeMy WebLinkAbout2007/07/17 Item 15 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 15-1 Date, Item No.: 15 Meeting Date: July 17. 2007 Page 2 of3 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. 15-2 Date, Item No.: IS Meeting Date: Julv 17. 2007 Page 3 of3 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 H,IBW _HSGIBRADRICOUNClL AGENDA STA TEMENT ABANDONED2.dot 15-3 ATTACHMENT "A" MINUTES OF A REGULAR MEETING BOARD OF APPEALS AND ADVISORS CITY OF CHULA VISTA, CALIFORNIA June 11, 2007 Planning & Building Conference Room #137 Public Services Building 276 Fourth Avenue 5:15 p.m. CALL MEETING TO ORDER: Chairman Flach called the meeting to order at 5:15 p.m. ROLL CALL: Flach, Buddingh, Hieronimus, Buencamino- Andrews, Turner, West MEMBERS ABSTAINING: CITY STAFF PRESENT: None Brad Remp, Asst. Director/ Deputy Building Official; Lou EI-Khazen, Deputy Building Official; Doug Leeper, Code Enforcement Manager; Rosemarie Rice, Secretary; and Eileen Dimagiba, Senior Office Specialist (Recording Secretary) OTHERS PRESENT: Richard Amonette, Isabel Hall (McMillin Realty), Gary and Gail Nordstrom (McMillin Realty), Dan O'Hanlon (McMillin Realty), Negar Mirgoli (McMillin Realty), Mark Scott (Realtor), Patti McKelvy (McMillin Realty), Brad Wilson (Realtor), Chris Lewis (McMillin Realty), Lupe Soto (McMillin Realty), John' Miller (Realtor), Dante Lora (Realty Executives), Mariana Alan (McMillin Realty) . 1. . DECLARATION OF EXCUSED/UNEXCUSED ABSENTEEISM: Member Romo is attending a Meeting in Los Angeles. 2. APPROVAL OF MINUTES: None. Mr. Remp announced the minutes from April 9, 2007 meeting will be brought to our next regularly scheduled meeting. Results of Election: M MSC (Buddingh/Andrews) Flach/Buddin (5-0-1-1) motion to elect Ben West as Chairman; Ion to elect David Turner as Vice Chairman. 2'd term expires this month and is no A. mber Flach announced that new nominations for Chairperson an an en for nominations. It was also ounced by Mr. Remp that Member Ro longer eligible fo -election. 3. B. Official presented information on a proposed ordinance for a Property Transfer Repo ogram that nhance the City's ability to detect and resolve code enforcement violations. T' program will focus a tion on ensuring that potential buyers of existing homes are given relev code enforcement informatio bout the legal status of the property prior to completion of the s . Sellers, of residential properties, or . agents will be responsible for requesting a property tra r report from the City within 10 days of placing roperty on the market for sale. A $70 fee wi e charged as a means of recovering the cost of adminis 'ng the program. The report can be ac sed through the city's internet website. Mr. Remp clarified that thl : not intended to 'hold up" a s of a property: He presented a list of 23 other jurisdictions in California tha e currently engaged in is type of a program, and stated that they have been successful. . Doug Leeper, Code EnforcerT1Eint"Manager presented information on proposed ordinance. Thi~ ~raft ordinance for this report does not require an on-site inspection, but should the seller o~ potential buyer request one from the City, one will be provided to them at their own expense. Mr. Leeper ". , 15-4 Boards of Appeals & Advisors Minutes -2- June 11. 2007 also said that the report would be used as another tool, which is available through the C fornia vernment Code to Local Jurisdictions, to aid in identifying and resolving issues of un ermitted co truction. This issue is one that code enforcement deals with daily. In speaking ith other juris 'ctions in California, that have passed this kind of ordinance, he discovered thatt y had fewer cases f unpermitted construction. Mr. Leeper thought adopting this ordinance would b nstrumental in curtailin the amount of problems that the City is experiencing with building without ermit. Mr. Remp r d off the list of cities in California that have adopted this type of ordi nce; including those cities that ha incorporated the inspection component. He stated that about o-thirds to one-half of these cities ha a mandatory inspection component, but stressed, our city is t recommending that as part of this propo al. Member's Comment Chairman Flach pointed utthat some of the information from e city report was not complete. Mr. , Rempstated they intend to olicitthesupport of the City Attor y's Office to,incIude,a disclaimer that states that the information wil e as accurate and up to date s can be. .. - " .....;.~. - . j. Member Buddingh brought up he fact that there is liability waiver in the draft ordinance. He suggested a' provision be added: the buyer choos to purchase the property regardless of any violation issues, there should be Ian age in the ordi ance that states the buyer is waiving any claims againsllhe seller for those issues bein raised in th report. Another issue was that limiting the list only to properties that are listed, is too narro He su ested including properties that aren't listed as well. Mr. Buddingh also addressed an issue un r .XX.090 REMIDATION- CORRECTIVE ACTION, how the notice of violation should not just be iss to the owner of record. If there was a case where the owner had sold the property, it should be sued to the prospective purchaser as well. Lastly, he addressed issues under XX.XX.170 APP LS, r. Remp stated that this was cross~referenced and the appeal process would be the same as e code ~forcement appeal process. Chairman Flach then asked if the real estate agent is resp sible for giv~~ out this information. Mr. Remp stated that the seller of the property would be the e that is ultimat~ responsible. \ Member Buencamino-Andre stated she agrees wit~dea of the buyer having the option to sign a waiver if they choose not to c rect issues identified in this r~ort and waiving any legal action from the buyer to the seller. \ Member Turner asked' the property report would cover proble~ that have already been identified by a city building inspector Mr. Le,eper said that the report would cove r"~1 known building permits that were issued on that prop and their status. Mr. Turner said that buyers ould likely interpret this report as saying that the Ci has approved any projects on the property. The de ils of an on-site inspection were discussed. Mr. urner asked about the average cost of an on-site ins~ction by a code enforcement officer. Mr. Leper said it would be a minimum of two hours of full cost ",covery at about $198.00 an hour. The blic would be notified of this optional on-site inspection throu~\PubliC outreach. , Membe est commented that he would welcome this ordinance as a potentiah~uyer and see this as an extra yer of protection. He stated that he was in favor of this. \ \ ~ber Hieronlmus was concerned that if the currenlseller did not know about the illegal constnuction, was it fair to hold them responsible? Mr. Leeper answered that this is one of the mai~'feaSOns for this ordinance to stop this kind of transfer. If the constnuction can be legalized by obtain'irg the proper permits, the seller can come in and get the proper permits to avoid costs and difficulty'in the future. Code Enforcement would apply the building codes that were in effect at the time the construction was made. Mr. Leeper stated this ordinance is "protection" for both the buyer and the seller unaware of illegal construction that may pose a life and safety hazard. ' 15-5 Boards of Appeals & Advisors Minutes -3- Public Comments: , ~ ichard Dascoli from Pacific Southwest Association of Realtors commented that no one m the blic has read the staff report prior to this meeting. The board will be making a decisio ased on a port that Mr. Remp gave to them that "wasn't very detailed" without the boar' complete insi t. Mr. Remp and Mr. Leeper stated that they will have time from now until Ju 9th, which is when is needs to go to council, to meet again, to further discuss the draftordin ce if they need to. ~ Dan O'H Ion from McMillin Realty applauded the fact to provide a "volunta on-site inspection" from the city. Ho ever, everything that was discussed is already in place' their procedures as a realtor. It wou be difficult to explain this "voluntary inspection" to the yer because the wording and language is omplex. ~ Gary Nordstrom s ted he was a former Planning Commissioner d former Chair of the Growth Management Over . ht Committee. He thought this ordinance uld dictate to every prospective . seller that before the could sell their home they have to ens e that any upgrade or renovation had the proper permit In his opinion, this would cause aos and would deter people from complying. He asked th the board table this issue beca e this information was not provided in a timely manner, and that he board takes a common' ense approach to this issue that could cause all kinds of liabilities t buyers, sellers, realtor and to the City of Chula Vista. ~ Negar Mirgoli, Broker, from A rcrombie & Associa s asked who would get the $70 fee from this report. Mr. Remp stated that th City would get st of it and a portion would go to the outside vendor. Ms. Mirgoli also commen d on this iss of "properties listed within 10 days". She noted in today's market properties listed re take off within days (because they aren't selling) and turned into rentals. Therefore, the ow rs 0 his property are paying a $70 fee that they don't need to incur. In her view, it would make be ense that this be done prior to the close of escrow, so that the $70 expense can be taken 0 e seller's shoulder until transaction is finalized. Mr. Leeper added that this report is not d ign to delay or sabotage a sale, but just to make sure the homes that sell, are safe to live in. ~ Mark Scott, stated as a realtor th are alread equired to do an "agent visual inspection", per civil code to see any deficiencies r potential pro ms. It's beyond their expertise to identify the problem as a code issue, s they get the appro riate people to inspect. He said that the law already exists, and the city' "double-legislating" w' t laws are already in place. He also brought up XX.XX. 030 REQUIR , and said that it would better to take out the word "agent" and just leave broker, so the re onsibility would fall only on th roker and not the agent. He doesn't like the fact that it is no he duty of the agent/broker to get is report and pay for it too. Mr. Remp stated the City an ode Enforcement are trying to prote the individuals who are buying these individual units d the community as a whole. This progra would solve the illegal construction problem throu an effective exchange of information. ~ Patti McKel from McMillan Realty stated that this would cause problem and she disagrees. In her opinio ,it was the city's way of getting extra revenue. ~ Brad Wi on, Real Estate Agent/ General Contractor thought legisl ion should be written towards the b . ding inspectors hired to inspect these properties, instead of e realtors. ~ Mar Scott stated that for a layperson it would be difficult to understan the information on these re orts. Mr. Remp commented that every permit that has been issued since December 1991, are Igitized and in our automated system. \ Isabel Hall from McMillin Realty stated that the city may have good intent ns but California is already a "requirement-heavy" State and this information is already available 0 the buyer. What the City is doing is legislating and making it a requirement that they MUST kno this information. She said that this City does not have "compliance inspections" in place, which is omething that should be required if this ordinance passes. (Chairman Flach stepped out temporarily; Mr. West temporarily stepped in as Chair) \ ~ Chris Lewis with McMillin Realty addressed the issue of agentsl real estate community \ 15-6 Boards of Appeals & Advisors Minutes -4- June 11. 2007 being the "watchdog" on this. He pointed out that agents aren't code experts and shouldn' countable for submitting reports and disagrees with this ordinance. ~ Lu Soto, with McMillin Realty stated she was against the ordinance, as it would eate chaos. Seller ill be discouraged from selling their properties. In her opinion, this ord' ance forces the agent to I erpret the codes and they shouldn't be put in this position becaus gents are not code experts. ~ Member Turne tepped in to comment on what's been addressed so r. He was in favor of the report. He em asized that this is not a "burden" to the seller, Ii everyone perceives it to be. He stressed again th he idea of this ordinance is to stop illega onstruction from being passed from one seller to anoth ~ John Miller, Realtor, sugge d it would be a good idea to ke the inspection "official" by making it from a city building inspecto, hen there will be no q stion about what is code compliant and what is not. l> Dante Laura from Realty Executives entioned e language pertaining to disclosure is already incorporated into their real estate docu nts. e cautioned the city to be prepared for an onslaught of inspections because of this 0 nance most every buyer will want one. ~ , Mariana Alan from McMillin Realty sai at Itors already have forms and procedures to do this.When they've encountered this roblem 0 permitted construction on a home for sale, they've made corrections right a ' l> Another realtor from McMillin alty asked if this ordin ce would exclude "for sale by owner" properties. If it does, it will ourage sellers to sell prope . s on their own for a lower amount to avoid this law and extra es. . l> Richard Dascoli com nted that before the Board makes a de . ion on this ordinance more research is neede ,ecause it will affect many peopie. ~. A roval of Ordin ce: Mr. Remp asked that the Board table this decision ba d on the information heard tonight. e suggested meeting again in 2 weeks so additional commen could be made available. M '(Buddingh/Andrews) (6-0-1-0) Approve motion to table this or . ance until a Special ting held in two weeks. '" mp re-iterated that the next special meeting of Board of Appeals & Advi~ors will be in lwoweeks, prior to meeting, realtors need to provide us with any written comments to forward to the Board, Q Brad Remp, Assistant Director/ Deputy Building Official presented information on a proposed ordinance for Distressed Property Registration Program, which is intended to hold lenders and/or banks responsible for maintaining and identifying these vacant properties. Many houses are going to foreclosure and this requires lenders who own vacant residential homes to register properties with the City and the ordinance requires lenders to retain the services of a local property maintenance property to respond to requests for required maintenance. Discussion: Mr. Remp stated the city is seeing an increase in number of homes becoming _bank-owned, causing negative impact to neighbors, with properties not being maintained, and . this will help solve this problem. l> Member Buddingh thought it was a great idea and needs to be done. He suggested several revisions as follows: On page four, under XX.XX.050 MAINTENANCE REQUIREMENTS second paragraph should include obligation to "remove such markings"; on page five the fourth paragraph should be typed in BOLD. Under XX.XX.060 SECURITY REQUIREMENTS, where it refers to "The posting"it should require that the sign be "weatherproof'; under XX.XX.070 ADDITIONAL . AUTHORITY; the last couple sentences are vague and should be looked at by the City Attorney. l> Member Turner expressed concern on enforceability and how to find out "Who's got it?" and if this is realistically enforceable and how the city will track down these lenders. Mr. Leeper explained that with this ordinance lenders would realize that it is cheaper to hire a maintenance company to monitor property than to pay fines from the city. Ms. Buencamino-Andrews also addressed the issue of prosecution under XX.XX.090 VIOLATION/PENALTY, and what exactly are the penalties. 15-7 Boards of Appeals & Advisors Minutes -5- June 11. 2007 Mr. Leeper explained the process of civil penalties. Memeber Buencamino-Andrews expressed overall appreciation for this ordinance. ~ Member Turner stated language under XX.XX.030 might be re-stating law already in place. Mr.Leeper said from his research with real estate attorneys; he found out that there 'is no requirement by law that the lenders record their assignments. Member Turner also noted in the third paragraph under XX.XX.060, that "and" should be deleted before "24-hour". ~ Mr. Richard Dascoli asked if the City Attorney has gone through this document, if not, they should. He also felt more clarification on the "30-mile radius" requirement page two was needed. Approval of Ordinance: MSC (WestlBuddingh) (6-0-1-0) motion to move forward with Distressed Property Registration Program including the changes that were discussed. CHAIRMAN'S COMMENTS/REPORT: None 5. BING OFFICIAL'S COMMENT'S/REPORTS: 1.) The Wild land-Urban Interface dealing with Buildin de requirements for buildings in areas exposed to potential wild land fi I be coming forward 'with adoption cess. 2.) Lou EI Khazen, Deputy Building Official will be . g lead on training this Board with new building, mbing, mechanical, electrical codes effective ary 2008. 3.) Currently still in process of approving the New get for the upcoming Fiscal Ye anning and Building has let go a significant number of employees. 4.) City Manager appoi , Mr. David Garcia. 5.) Mr. Romo's 2'. term expires this month and no longer can be ointe ever, he can continue to serve until a replacement member is appointed. 6. COMMUNICATIONS ITIONAL BOARD CO TSIWRITTEN CORRESPONDENCE/: Member Hieronimus ssed Property Transfer Report and Issue when this ordinance passes, to consider if you rst seller of the home, would this report would apply em, and addressed the merit of waiver. 7. ADJOURNMENT: Member. West adjourned the meeting at 7:45 PM to a P.!lcial Meeting in two weeks on Tuesday, June 26111, 2007 in the City Council Chambers. ' ........... ~~ BRAD REMP, C.B.O. ASST. DIR. OF PLANNIN & BUilDING / BUilDING OFFICIAL SECRETARY TO THE BOARD OF APPEALS AND ADVISORS ~ EilEEN DIMAGIBA, SR. OFFICE SPECIALIST (RECORDING SECRETARY) PLANNING & BUilDING DEPARTMENT J:\Bld_HsglJudi Bell\Board of Appeals & AdvisorS06.11.2007m.doc 15-8 ATTACHMENT "B" K. ABANDONED RESIDENTIAL PROPERTY REGISTRATION The fee for annual registration of abandoned residential property with the City of Chula Vista shall be $70. Annual registration will expire on December 3151 of each year. Master Fee Schedule Part II - Development Chapter X - Building Page 34 RESOLUTION NO. 2007- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER X (BUILDING) OF THE CITY'S MASTER FEE SCHEDULE WHEREAS, in January, 2007, the City Council adopted the existing Building Fee Schedule; and WHEREAS, the amendment to Chapter X (Building) of the City's Master Fee Schedule will ensure owners of vacant residential properties pay the estimated reasonable cost of administering the Abandoned Residential Property Registration Program; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity for compliance with 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 section 15060(c)(2) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby adopt Attachment C, amending Chapter X (Building) of the City's Master Fee Schedule, on file with the City Clerk. BE IT FURTHER RESOLVED that, pursuant to California Government Code section 66017(a), the amendment to Chapter X (Building) of the City's Master Fee Schedule shall become effective sixty days after the adoption of this resolution. Submitted by Approved as to form by ~~~\\.r~~ Ann Moore City Attorney J.D. Sandoval Planning and Building Director J:\AlIomey\RESOIPLANN1NG\Abandoned Property Fee Reso_07.I 7.07.doc 15-10 Ordinance No. Page 1 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REQUIRING THE REGISTRATION OF ABANDONED RESIDENTIAL PROPERTIES I. Recitals. WHEREAS, the presence of vacant, abandoned residences can lead to neighborhood decline; and WHEREAS, the presence of vacant, abandoned residences can create an attractive public nuisance; and WHEREAS, the presence of vacant abandoned residences can contribute to lower property values; and WHEREAS, the presence of vacant abandoned residences can discourage potential buyers from purchasing a home adjacent to or in neighborhoods with vacant abandoned residences; and WHEREAS, many vacant abandoned residences are the responsibility of out of area, out of state lenders and trustees; and, WHEREAS, in many instances the lenders and trustees fail to adequately maintain and secure these vacant residences; and WHEREAS, the city has an obligation to protect its residential neighborhoods from decline and devaluation; and. WHEREAS, on June 11, 2007 the Board of Appeals and Advisors met, reviewed and discussed the proposed ordinance; and, WHEREAS, the Board of Appeals and Advisors voted unanimously to recommend passage of the proposed ordinance to the City Council; and NOW THEREFORE THE CITY COUNCIL of the City of Chula Vista does hereby ordain as follows: Section I. That the proposed Vacant Abandoned Residential Property Registration ordinance be enacted as follows: 15-11 Ordinance No. Page 2 15.60 ABANDONED RESIDENTIAL PROPERTY REGISTRATION 15.60.010 PURPOSE/SCOPE It is the purpose and intent of the Chula Vista City Council, through the adoption of this Chapter, to establish an abandoned residential property registration program as a mechanism to protect residential neighborhoods from becoming blighted through the lack of adequate maintenance and security of abandoned properties. 15.60.020 DEFINITIONS For the purposes of this chapter, certain words and phrases used in this chapter are defined as follows: "Abandoned" means a property that is vacant and is under a current Notice of Default and/or Notice of Trustee's Sale, pending Tax Assessors Lien Sale and/or properties that have been the subject of a foreclosure sale where the title was retained by the beneficiary of a deed of trust involved in the foreclosure and any properties transferred under a deed in lieu of foreclosure/sale. "Accessible property" means a property that is accessible through a compromised/breached gate, fence, wall etc.. "Accessible structure" means a structure/building that is unsecured and/or breached in such a way as to allow access to the interior space by unauthorized persons. "Aareement" means any agreement or written instrument, which provides that title to residential property, shall be transferred or conveyed from one owner to another owner after the sale, trade, transfer or exchange. "Assianment of Rents" means an instrument that transfers the beneficial interest under a deed of trust from one lender/entity to another. "Beneficiarv" means a lender under a note secured by a deed of trust. "Buver" means any person, co-partnership, association, corporation, or fiduciary who agrees to transfer anything of value in consideration for property described in an agreement of sale, as defined in this subsection. "Danaerous buildina" means any building/structure that is violation of any condition referenced in CVMC Chapter 15.18. "Davs" means consecutive calendar days. "Deed of Trust" means an instrument by which title to real estate is transferred to a third party trustee as security for a real estate loan. Used in California instead 15-12 Ordinance No. Page 3 of a mortgage. This definition applies to any and all subsequent deeds of trust i.e.: 2nd trust deed, 3rd trust deed, etc. "Deed in lieu of foreclosure/sale" means a recorded document that transfers ownership of a property from the trustor to the holder of a deed of trust upon consent of the beneficiary of the deed of trust. "Default" means the failure to fulfill a contractual obligation, monetary or conditional. "Distressed" means a property that is under a current Notice of Default and/or Notice of Trustee's Sale and/or pending Tax Assessor's Lien Sale or has been foreclosed upon by the trustee or has been conveyed to the beneficiary/trustee via a Deed in lieu of Foreclosure/sale. "Evidence of vacancv" means 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 include but are not limited to, overgrown and/or dead vegetation, accumulation of newspapers, circulars, flyers and/or mail, past due utility notices and/or disconnected utilities, accumulation of trash, junk and/or debris, the absence of window coverings such as curtains, blinds and/or shutters, the absence of furnishings and/or personal items consistent with residential habitation, statements by neighbors, passersby, delivery agents, government employees that the property is vacant. "Foreclosure" means the process by which a property, placed as security for a real estate loan, is sold at auction to satisfy the debt if the trustor (borrower) defaults. "Local" means within forty (40) road/driving miles distance of the subject property. "NeiQhborhood standard" means those conditions that are present on a simple majority of properties within a three hundred (300) foot radius of an individual property. A property that is the subject of a neighborhood standard comparison, or any other abandoned property within the three hundred (300) foot radius, shall not be counted toward the simple majority. "Notice of Default" means a recorded notice that a default has occurred under a deed of trust and that the beneficiary intends to proceed with a trustee's sale. "Out of area" means in excess of forty (40) road/driving miles distance of the subject property. "Owner" means any person, co-partnership, association, corporation, or fiduciary having a legal or equitable title or any interest in any real property. 15-13 Ordinance No. Page 4 "Owner of record" means the person having recorded title to the property at any given point in time the record is provided by the San Diego County Recorders Office. "Property" means any unimproved or improved real property, or portion thereof, situated in the city and includes the buildings or structures located on the property regardless of condition. "Residential buildino" means any improved real property, or portion thereof, situated in the city, designed or permitted to be used for dwelling purposes, and shall include the buildings and structures located on such improved real property. This includes any real property being offered for sale, trade, transfer, or exchange as "residential" whether or not it is legally permitted and/or zoned for such use. "Securino" means such measures as may be directed by the Director of Planning and Building or his or her designee that assist in rendering the property inaccessible to unauthorized persons, including but not limited to the repairing of fences and walls, chaining/pad locking of gates, the repair or boarding of door, window and/or other openings. Boarding shall be completed to a minimum of the current HUD securing standards at the time the boarding is completed or required. "Trustee" means the person, firm or corporation holding a Deed of Trust on a property. "Trustor" means a borrower under a deed of trust, who deeds property to a trustee as security for the payment of a debt. "Vacant" means a building/structure that is not legally occupied. 15.60.030 RECORDATION OF TRANSFER OF LOAN/DEED OF TRUST/ASSIGNMENT OF RENTS Within ten (10) days of the purchase and/or transfer of a loan/deed of trust secured by residential property the new beneficiary/trustee shall record, with the San Diego County Recorders Office, an Assignment of Rents, or similar document, that lists the name of the corporation, and/or individual, the mailing address and contact phone number of the new beneficiary/trustee responsible for receiving payments associated with the loan/deed of trust. 15.60.040 REGISTRATION Any beneficiary/trustee, who holds a deed of trust on a property located within the City of Chula Vista, shall perform an inspection of the property that is the security for the deed of trust, upon default by the trustor, prior to recording a Notice of Default with the San Diego County Recorders Office. If the property is 15-14 Ordinance No. Page 5 found to be vacant or shows evidence of vacancy, it is, by this chapter, deemed abandoned and the beneficiary/trustee shall, within ten (10) days of the inspection, register the property with the Director of Planning and Building or his or her designee on forms provided by the City. If the property is occupied but remains in default it shall be inspected by the beneficiary/trustee, or his designee, monthly until 1 ) The trustor other or party remedies the default or 2) It is found to be vacant or shows evidence of vacancy at which time it is deemed abandoned, and the trustee shall, within ten (10) days of that inspection, register the property with the Director of Planning and Building or his designee on forms provided by the City. In either case the registration shall contain the name of the beneficiary/trustee (corporation or individual), the direct street/office mailing address of the beneficiary/ trustee (no P. O. Boxes), a direct contact name and phone number for the beneficiary/trustee and, in the case of a corporation or out of area beneficiary/trustee, the local property management company responsible for the security, maintenance and marketing of the property. Registration fees will not be prorated. An annual registration fee shall accompany the registration form. The fee and registration shall be valid for the calendar year, or remaining portion of the calendar year, in which the registration was initially required. Subsequent registrations and fees are due January 1st of each year and must be received no later than January 31 of the year due. This section shall also apply to properties that have been the subject of a foreclosure sale where the title was transferred to the beneficiary of a deed of trust involved in the foreclosure and any properties transferred under a deed in lieu of foreclosure/sale. Properties subject to this chapter shall remain under the annual registration requirement, security and maintenance standards of this section as long as they remain vacant. Any person, firm or corporation that has registered a property under this chapter must report any change of information contained in the registration within ten (10) days of the change. 15.60.050 MAINTENANCE REQUIREMENTS Properties subject to this section shall be, in comparison to the neighborhood standard, kept free of weeds, dry brush, dead vegetation, trash, junk, debris, building materials, any accumulation of newspapers, circulars, flyers, notices, accept those required by federal, state or local law, discarded personal items including but not limited to, furniture, clothing, large and small appliances, printed 15-15 Ordinance No. Page 6 material or any other items that give the appearance that the property is abandoned. The property shall be maintained free of graffiti, tagging or similar markings by removal or painting over with an exterior grade paint that matches the color of the exterior of the structure. Visible front and side yards shall be landscaped and maintained to the neighborhood standard at the time registration was required. Landscape includes, but is not limited to, grass, ground covers, bushes, shrubs, hedges or similar plantings, decorative rock or bark or artificial turf/sod designed specifically for residential installation. Landscape does not include weeds, gravel, broken concrete, asphalt, decomposed granite, plastic sheeting, mulch, indoor-outdoor carpet or any similar material. Maintenance includes, but is not limited to regular watering, irrigation, cutting, pruning and mowing of required landscaped and removal of all trimmings. Pools and spas shall be kept in working order so the water remains clear and free of pollutants and debris or drained and kept dry. In either case properties with pools and/or spas must comply with the minimum security fencing requirements of the Sate of California. Adherence to this section does not relieve the beneficiary/trustee or property owner of any obligations set forth in any Covenants Conditions and Restrictions and/or Home Owners Association rules and regulations which may apply to the property. 15.60.060 SECURITY REQUIREMENTS Properties subject to this section shall be maintained in a secure manner so as not to be accessible to unauthorized persons. Secure manner includes but is not limited to the closure and locking of windows, doors (walk-through, sliding and garage) gates and any other opening of such size that it may allow a child to access the interior of the property and or structure(s). In the case of broken windows securing means the reglazing or boarding of the window. If the property is owned by a corporation and/or out of area beneficiary/trustee/ owner, a local property management company shall be contracted to perform weekly inspections to verify that the requirements of this section, and any other applicable laws, are being met. 15-16 Ordinance No. Page 7 The property shall be posted with name and 24-hour contact phone number of the local property management company. The posting shall be no less than 18" X 24" and shall be of a font that is legible from a distance of forty-five (45) feet and shall contain along with the name and 24-hour contact number, the words "THIS PROPERTY MANAGED BY" and "TO REPORT PROBLEMS OR CONCERNS CALL". The posting shall be placed on the interior of a window facing the street to the front of the property so it is visible from the street, or secured to the exterior of the building/structure facing the street to the front of the property so it is visible from the street or if no such area exists, on a stake of sufficient size to support the posting in a location that is visual from the street to the front of the property but not readily accessible to vandals. Exterior posting must be constructed of and printed with weather resistant materials. The local property management company shall inspect the property on a weekly basis to determine if the property is in compliance with the requirements of this chapter. 15.60.070 ADDITIONAL AUTHORITY In addition to the enforcement remedies established in Chapters 1.20, 1.30 and 1.41, the Director of Planning and Building or his or her designee shall have the authority to require the beneficiary/trustee/owner and/or owner of record of any property affected by this section, to implement additional maintenance and/or security measures including but not limited to, securing any/all door, window or other openings, installing additional security lighting, increasing on-site inspection frequency, employment of an on-site security guard or other measures as may be reasonably required to arrest the decline of the property. 15.60.080 FEES The fee for registering an Abandoned Residential Property shall be set by resolution of the City Council. 15.60.90 ENFORCEMENT Violations of this chapter may by enforced in any combination as allowed in Chapters 1.20, 1.30 and 1.41. 15.60.100 APPEALS Any person aggrieved by any of the requirements of this section my appeal insofar as such appeal is allowed under Chapter 1.40. 15.60.110 VIOLATION/PENALTY Violations of this chapter shall be treated as a strict liability offense regardless of intent. Any person, firm and/or corporation that violates any portion of this section shall be subject to prosecution and/or administrative enforcement under Chapters 1.20 and 1.41. 15-17 Ordinance No. Page 8 15.60.120 SEVERABILITY Should any provision, section, paragraph, sentence or word of this chapter be determined or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this chapter shall remain in full force and effect. Section II. Effective Date This ordinance shall take effect and be in full force on the 60th day from and after its second reading. Presented by Approved as to form by James D. Sandoval Director of Planning and Building ~j~\,<\QU~ Ann Moore City Attorney 15-18