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ARTICLE III. RESIDENTIAL ABANDONED PROPERTY PROGRAM
The purpose of this section is to establish an abandoned residential property registration program and to regulate the maintenance of abandoned residential properties by parties asserting a collateral or other legal or equitable interest in the property. This section is intended to reduce and prevent neighborhood blight, to ameliorate conditions that threaten the health, safety and welfare of the public, to promote neighborhood stability and residential owner occupancy by preserving the condition and appearance of residential properties, and to maintain residential property values and assessments. Nothing in this section shall be construed as waiving, relieving or otherwise excusing an owner of residential property from compliance with all applicable building codes and ordinances and the owner or owners shall at all times remain responsible and liable therefor.
(Ord. 3756, passed 7-13-2009)
In this section:
ABANDONED PROPERTY or ABANDONED PREMISES. A property that is vacant as the result of the relinquishment of possession or control by a mortgager or the mortgager’s assigns whether or not the mortgager or mortgager’s assigns have relinquished equity and title. Property may be deemed abandoned when there is evidence of conditions, taken separately or as a whole, that would lead a reasonable person to conclude that the property was abandoned, including, but not limited to evidence of overgrown or dead vegetation, accumulation of newspapers, circulars, flyers or mail, past due utility notices, accumulation of junk, litter, trash or debris, absence of window treatments such as blinds, curtains or shutters, absence of furnishings and personal items, and statements by neighbors, delivery agents or similarly situated persons that the property is vacant.
ACCESSIBLE STRUCTURE. A building that is accessible through a compromised door, wall, window or similar structure and which is unsecured in a manner that allows access to interior space by unauthorized persons.
AGENT. A person, firm or other entity that, by agreement for payment of services, is responsible to a bank, lender, other financial institution or individual, for securing, maintaining, foreclosing upon or selling any residential property as the result of loan default or mortgage foreclosure proceedings. In this section, AGENT does not include a servicing company. Except, however, an attorney shall not be deemed to be an AGENT if that attorney is retained solely to represent a bank, lender or other financial institution in connection with a foreclosure proceeding in a Court of competent jurisdiction.
FINANCIAL INSTITUTION. Any individual, firm, corporation or entity other than a lender or duly constituted bank that asserts a collateral interest in residential real property as the result of an assignment, sale or transfer of a mortgage or similar instrument.
FORECLOSURE. Judicial and non-judicial foreclosure.
MORTGAGE. A written instrument creating a lien on real property whereby the mortgager retains the interest that the mortgager had at the time of mortgage until that interest is divested by some later act.
OCCUPIED PROPERTY or OCCUPIED PREMISES. A premises on which any person over one year of age, including an owner or operator, lives, sleeps, cooks or otherwise maintains actual possession.
SERVICING COMPANY. An individual, firm or entity that, as a regular part of its business, provides services to the owner or holder of one or more mortgage liens which services may include collection of payments, creation and administration of escrow and insurance accounts, assessment of late-payment charges, managing loss mitigation, and securing and managing foreclosed properties on behalf of the holder of a mortgage lien or the holder’s attorney or agent.
VACANT PREMISES. A building that is not lawfully occupied.
(Ord. 3756, passed 7-13-2009)
(a) Initial inspection. Whenever a bank, lender or other financial institution shall directly, or through an agent or servicing company, initiate foreclosure proceedings upon residential real property, the bank, lender or other financial institution, either directly or through its agent or servicing company, shall cause a physical inspection to be made of the property not later than thirty (30) days from the date of notice and in no event later than thirty (30) days after the filing of foreclosure proceedings. One or more photographs shall be taken of the residential property accurately portraying the condition of the exterior premises. Photographs shall be dated and preserved.
(b) Periodic inspections. Any bank, lender or financial institution, or its agent or servicing company, shall perform a re-inspection of a residential premises subject to foreclosure proceedings at least once every thirty (30) days following the initial inspection until such time as the property is no longer in default as a result of agreement with the owner, or is sold at a sheriff’s sale or is otherwise lawfully conveyed to a new owner. One or more photographs shall be taken at each re-inspection and shall be dated and preserved in the same manner as is required upon initial inspection.
(Ord. 3756, passed 7-13-2009)
(a) If, upon inspection of residential property required by § 24-110, it should be determined that the property is abandoned, the bank, lender, other financial institution or its responsible agent or servicing company shall register the property in the name of the lien holder with the appropriate City official (“appropriate official”) on a form prescribed by the appropriate official that includes, but is not limited to, information identifying the location of the property, the last known owner or owners of the property, the date foreclosure proceedings were commenced and the docket number of the foreclosure action, a description of the external condition of the property and whether there is an accessible structure on the property. Registration information shall identify the agent or servicing company, if any, that is authorized by the lien holder to enter upon the property and to conduct repairs or maintenance as required in § 24-112(a).
(b) Registration of abandoned property shall be made within five (5) working days of inspection. The fee for registration of abandoned residential property shall be the same fee charged for rental registration.
(c) The registration will be dissolved and considered void upon receipt by the appropriate official of written evidence of a sale in foreclosure, redemption of the property by the lien holder or other transfer of the lien holder’s interest.
(Ord. 3756, passed 7-13-2009)
(a) The property maintenance duties of a registrant are limited to the following:
(1) Assuring that there are no accessible structures on the premises.
(2) Assuring that there are no conditions upon the property presenting an immediate risk to health and safety of the public. This duty includes removing or abating fire hazards, removing or containing potentially toxic materials and explosives, securing the perimeters of swimming pools, ponds or other bodies of water, maintaining public walkways and thoroughfares free from ice, snow, mud and other debris and tripping hazards, and abating overgrown weeds and trash.
(b) A registrant shall include a statement in the registration form identifying any action taken or planned to be taken to comply with the requirements of subsection (a). From and after registration of the abandoned residential property, or from and after the time that registration is required to be made, and until the abandoned residential property has been sold at a sheriff’s foreclosure sale or has otherwise been legally conveyed to a new owner, the appropriate official may make a finding that the conditions of the residential premises constitute an immediate threat to the health, safety and welfare of the public and, upon such finding, may issue a written order to the registrant to abate the condition. If the registrant, or party with a duty to register, fails to comply with the order of the appropriate official within ten days, the registrant, or party with a duty to register, shall be held liable and punished in the same manner and to the same extent as the owner of the property could be punished.
(c) The minimum requirements of a registrant, or party with a duty to register, for preservation and protection of residential premises, absent a specific order of the appropriate official to abate a condition of the premises, shall be consistent with the rules, regulations and other requirements published by the Federal Housing Administration (FHA) of the United States Department of Housing and Urban Development for the preservation and protection of single-family residential properties secured by FHA loans as those requirements may be amended by FHA mortgagee letters or otherwise, and as applied by the FHA to the State of Michigan including guidelines related to winterization and heating systems. These requirements are incorporated by reference. Under these guidelines, debris removal shall be deemed to include snow and ice removal and the abatement of overgrown weeds and other plant growths. After notice and an opportunity to be heard, the appropriate official may require a registrant, or party with a duty to register, to repay the Department the reasonable costs incurred by the Department related to abatement of conditions that are subject to FHA guidelines identified in this subsection or which are subject to an order under subsection (b) and threaten the health, welfare and safety of the public.
(d) A registrant shall maintain written records, including photographs, of any re-inspection required by § 24-110(b) that identifies any change in condition of the abandoned real property requiring correction and identifying actions taken or planned to assure compliance. Written records of re-inspection shall be made available to the appropriate official or appropriate official’s designee upon request.
(e) A registrant, or registrant’s agent or servicing company, shall provide notice to the appropriate official, in a manner to be prescribed by the appropriate official, within fifteen (15) working days, of any agreement executed by the lawful owner with the party or parties asserting a mortgage lien interest curing or otherwise forgiving default of the mortgage lien, or within 15 days of a sheriff’s sale in foreclosure or other sale or lawful conveyance of the abandoned residential property, and declaring that registrant is no longer responsible for inspection of the registered property or for securing or maintaining the property. Upon receipt of the notice required in this paragraph, the appropriate official shall dissolve the registration.
(Ord. 3756, passed 7-13-2009)
(a) Failure to inspect. Any person, firm, bank, lender, financial institution or an agent or servicing company that fails its duty to inspect or re-inspect residential property under § 24-110 shall be subject to a fine of not less than $250.00 nor more than $1,000.00, together with the cost of the action, and in default of payment thereof the City may obtain a lien on the property.
(b) Failure to register. Any person, firm, bank, lender, financial institution or an agent or servicing company that fails its duty to register abandoned residential property under § 24-111 shall be subject to a fine of not less than $500.00 nor more than $2,000.00, together with the cost of the action, and in default of payment thereof the City may obtain a lien on the property.
(c) Failure to secure and maintain. Any person, firm, bank, lender, financial institution or an agent or servicing company having a duty to register abandoned residential property that fails its duty to secure and maintain the property under § 24-112(a) and (b) shall be subject to a fine of not less than $350.00 nor more than $1,500.00, together with the cost of the action, and in default of payment thereof the City may obtain a lien on the property.
(d) Failure to maintain records or provide written notice. Any person, firm, bank, lender, financial institution or responsible agent or servicing company that fails to maintain records required in § 24-112(d) or to provide the notices required in § 24-112(e) shall be subject to a fine of not less than $100.00 nor more than $500.00, together with the cost of the action, and in default of payment thereof the City may obtain a lien on the property.
(Ord. 3756, passed 7-13-2009)