(A) Purpose. It is the purpose and intent of the city, through the adoption of this section, to establish a vacant property registration program as a mechanism to protect residential and commercial neighborhoods from becoming blighted through the lack of adequate maintenance and for the security of distressed properties and vacant properties.
(B) Scope. The provisions of this section shall apply to all existing, residential, commercial, multi- family, industrial, and institutional properties and structures. This section does not relieve an owner from compliance with all applicable city ordinances and regulations or all applicable state laws and regulations.
(C) Definitions. For the purpose of this section, the following definitions apply unless the context clearly indicates or requires a different meaning.
BENEFICIARY. A lender or other entity under a note secured by a deed of trust or mortgage lien.
BUILDING. A structure with a roof supported by columns or walls to serve as a shelter or enclosure.
DEFAULT. A failure to perform a contractual obligation, monetary or conditional.
DISTRESSED PROPERTY.
(a) A property that is under a current:
1. Pending foreclosure or tax lien sale;
2. Properties that have been the subject of foreclosure sale where the title was retained by the lender or beneficiary of a deed of trust involved in the foreclosure; and/or
3. Any properties transferred under a deed in lieu of foreclosure.
(b) DISTRESSED PROPERTY also can include property that is vacant as a result of probate or the death of the owner of record.
EVIDENCE OF VACANCY. 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; broken or boarded windows; abandoned vehicles and/or auto parts or materials; the absence of window coverings such as curtains, blinds, and/or shutters; the absence of furnishings and/or personal items consistent with habitation; and/or statements by neighbors, passerby, delivery agents, or government employees that the property is vacant.
FORECLOSURE. The process by which a property, placed as security for a real estate loan, is sold through the courts at auction to satisfy the debt if the owner/borrower/mortgagor defaults.
LENDER/MORTGAGEE. The person or entity who is the secured party under any mortgage or deed of trust instrument, or who has a fiduciary interest in the property, which can include the mortgage servicer.
NOTICE OF DEFAULT. A notice that a default has occurred under a mortgage or deed of trust and that the beneficiary intends to proceed with a trustee’s or foreclosure sale.
OWNER. Any person, partnership, corporation, unincorporated association, limited liability entity, trust, personal representative of an estate, or fiduciary having legal or equitable title to or interest in any real property.
OWNER OF RECORD. The person having record title to the property as shown in the land records of Montgomery County, Maryland.
PROPERTY. 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.
RESPONSIBLE PARTY. The beneficiary that is pursuing foreclosure of a property subject to this section secured by a mortgage, deed of trust, or similar instrument or a property that has been acquired by the lender or beneficiary of a deed of trust involved in the foreclosure. RESPONSIBLE PARTY may also include a mortgage servicer or the property preservation company or property management company instructed with the security and maintenance of the property.
SECURING. Such measures as may be directed by the City Manager, 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/padlocking of gates, the repair or boarding of door, window, and/or other openings at the time the boarding is completed or required. LOCKING includes measures that require a key, keycard, tool, or special knowledge to open or gain access.
VACANT. No person or persons currently conduct a lawful business or lawfully reside or live in any part of the building or structure as a legal or equitable owner(s) or tenant occupant(s) on a permanent, non-transient basis. A property that is VACANT when there is no habitual presence of persons who have a legal right to be on the premises, or all lawful business or construction activity or residential occupancy has substantially ceased, or which is substantially devoid of contents. In the case of mixed-use buildings, a separate tenanted portion of the building which meets these criteria may also be deemed VACANT.
VACANT PROPERTY.
(a) A lot or parcel of real property with at least one building, structure, or portion that is not currently used or occupied for a period in excess of 30 days. A building or structure that remains furnished, has utilities connected or in use, and on property that is maintained while the owner is absent shall not be considered VACANT unless the building or structure is vacant for a period greater than one year.
(b) A building or structure that is under active construction or undergoing active rehabilitation, renovation, or repair, and there is a building permit to make the building fit for occupancy that was issued, renewed, or extended within six months of the date of vacancy shall not be subject to the vacant property registration requirement of this section; provided, however, that the cessation of active construction, rehabilitation, repair, or demolition activity for more than 30 days, unless good cause is shown for cessation, will result in the property being deemed a VACANT PROPERTY and subject to the registration, security, and maintenance requirements of this section.
(c) A building that the owner or owner’s agent is actively trying to sell or rent (as evidenced by a sign posted on the property advertising the property for sale or rent with contact information and current telephone number, listing agreement with realty contact information, MRIS or MLS electronic listing, or other advertisement of sale or rent) shall not be considered a VACANT PROPERTY registration requirement for a building for sale or rent may be extended for one additional period upon a showing that the building is still actively for sale of rent; and provided, that the building is in compliance with the VACANT PROPERTY maintenance requirements of this section.
VACANT PROPERTY REGISTRY. The official record of vacant distressed property and vacant property registered with the city in accordance with the requirements of this section.
(D) Inspections of distressed property.
(1) Prior to filing a complaint of foreclosure or notice of default or accepting a deed in lieu of foreclosures, the responsible party, or his, her, or their designee, shall inspect a distressed property to determine whether the property is vacant. If the distressed property is found to be vacant or shows evidence of vacancy, the responsible party shall, within 30 days, register the property as a vacant distressed property with the Planning and Zoning Director for the purpose of minimizing hazards to persons and property as a result of the vacancy.
(2) (a) If a distressed party is occupied, but remains in default, it shall be inspected by the responsible party, or his, her, or their designee, monthly until:
1. The default is remedied; or
2. The property is found to be vacant or shows evidence of vacancy.
(b) The responsible party or his, her, or their designee shall, within 30 days after obtaining knowledge or vacancy, register the property as a vacant distressed property within the city for the purpose of minimizing hazards to persons and property as a result of the vacancy.
(E) Registration of vacant distressed property.
(1) The responsible party or his, her, or their designee shall register a vacant distressed property by completing and submitting the vacant distressed property registration form and submitting the registration form to the Planning and Zoning Director, along with the required fee.
(2) The vacant distressed property registration form shall include the following:
(a) The address of the vacant distressed property;
(b) The name, current street/office mailing address (no post office boxes), telephone number, and email of all owners of the vacant distressed property;
(c) The names of the responsible party, the street/office mailing address of the responsible party (no post office boxes), a responsible party direct contact name, telephone number and email, and the name, address, telephone number, and email of the property management company, field service provider, property preservation or real estate owned (REO) section or department responsible for inspecting, securing, and maintaining the property; and
(d) An explanation as to the reason for the vacancy of the property.
(3) If a vacant distressed property is not registered, then the city may give the responsible party or his, her, or their designee a written notice of vacancy and the responsible party or their designee shall register the vacant distressed property with the city within 30 days of receipt of a notice of vacancy from the city.
(4) Registration of a vacant distressed property shall be valid and effective for a period not to exceed one year, beginning July 1 and ending the next June 30, and shall be renewed annually thereafter until the property is no longer a vacant distressed property.
(5) Vacant distressed property shall remain under the registration requirement, security, and maintenance standards of this section so long as the property is distressed property.
(6) The responsible party shall inform the city of any pending action, such as bankruptcy, probate, or other court or administrative action, that would prohibit the responsible party from taking any of the actions required by this section. The responsible party shall provide the city with complete information about any pending action that it alleges prevents the responsible party from complying with this section, including the security and maintenance standards set forth herein.
(7) Failure to register a vacant distressed property is an ordinance violation.
(F) Owner registration of vacant property.
(1) An owner of vacant property located in the city shall register the vacant property with the Planning and Zoning Director within 30 days of the vacancy. For good cause, the Director may grant an owner of vacant property of the notice of vacancy from the city.
(2) If a vacant property is not registered, then the Planning and Zoning Director may give the owner of record a written notice of vacancy and the owner shall register the vacant property with the city within 30 days of receipt of the notice of vacancy from the city.
(3) Owners who are required to register his, her, or their vacant properties pursuant to this section shall do so by completing and submitting the vacant property registration form to the Planning and Zoning Director, along with the required fee. The vacant property registration form may be signed by an agent for an owner provided the agent’s written authorization from the owner is also provided. The vacant property registration form shall include the following:
(a) The name, current street/office mailing address (no post office boxes), telephone number, and email of all owners of the vacant property. If any owner of the vacant property is not the same as the owner of record, then an explanation of the reasons for the difference in ownership shall be provided;
(b) The name of an individual or legal entity responsible for the care and control of the vacant property. Such individual may be the owner, if the owner is an individual, or may be someone other than the owner; provided, that the owner has contracted with such a person or entity to act as his or her agent for purposes of this section;
(c) A current street/office mailing address (no post office boxes), telephone number and email of the owner’s agent, along with a direct contact name, telephone number, and email for the direct contact of the owner’s agent;
(d) A certificate of property insurance in an amount equal to or greater than the tax assessed value of the property; and
(e) An explanation as to the reason for the vacancy of the property.
(4) Registration of the vacant property shall be valid and effective for a period not to exceed one year, beginning July 1 and ending the next June 30, and shall be renewed annually thereafter until the property is no longer a vacant property.
(5) Vacant property shall remain under the registration requirement, security, and maintenance standards of this section so long as the property is vacant.
(6) The owner or owner’s agent shall inform the Planning and Zoning Director of any pending action, such as bankruptcy, probate, or other court or administrative action, that would prohibit the owner or owner’s agent from taking any of the actions required by this section. The owner or owner’s agent shall provide the Director with complete information about any pending action that he or she alleges prevents the owner or owner’s agent from complying with this section, including the security and maintenance standards set forth herein.
(7) Failure to register a vacant property is an ordinance violation.
(G) Fire damaged property. If a building or structure is damaged in a fire or other casualty, the owner has 90 days from the date of the fire or other casualty to apply for a permit to start construction, rehabilitation, repair, or demolition of the fire damaged building or structure. Failure to do or the cessation of active construction, rehabilitation, repair, or demolition activity for more than 30 days, unless good cause is shown, will result in the property being deemed a vacant property and subject to the registration, security, and maintenance requirements of this section.
(H) Registration fee. The annual fee for registration of a vacant distressed property or a vacant property shall be $200, payable to the city and submitted to the Planning and Zoning Director, along with the required registration form and all supporting information and documentation. Registration of a vacant distressed property or a vacant property is for the fiscal year beginning July 1 and ending the next June 30. Unpaid registration fees shall be charged a late fee of 2% for each month or portion of a month that the registration fee remains unpaid. Registration fees are nonrefundable and are not prorated in the event a registration fee is paid for a partial year. Unpaid registration fees are a lien on the property and may be collected in the same manner as taxes collected.
(I) Requirement to keep information current; removal from vacant property registry.
(1) If, at any time, the information contained in the responsible party’s vacant distressed property registration or the owner’s vacant property registration form is no longer valid, then the responsible party or owner, as applicable, has 15 days to file a new form containing valid, current information. There shall be no fee to update an existing registered responsible party’s or owner’s current information.
(2) Should the vacant building become occupied at any time after registration of a vacant distressed property or a vacant property, then the responsible party or owner, as applicable, shall file an amended registration form within 15 days of occupancy, notifying the city of such occupancy along with corroborating documentation and requesting that the building be removed from the vacant property registry. The city shall remove such building from the registry within 30 days of the filing of the amended registration form, unless the city determines that there is evidence of vacancy and reason to believe that the building is vacant and subject to registration.
(J) Vacant property maintenance and security requirements.
(1) The responsible party of a vacant distressed property and the owner or owner’s agent of a vacant property shall comply with the following maintenance requirements.
(a) The exterior of the property shall be kept free of weeds, dry brush, dead vegetation, trash, junk, debris, building materials, any accumulation of newspapers, circulars, flyers, notices, except those required by federal, state, or local law, discarded personal items, including, but not limited to, furniture, clothing, large and small appliances, printed material, or any other items that give the appearance that the property is vacant and abandoned.
(b) 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.
(c) All visible front and side yards shall be landscaped and properly maintained during the vacancy of the property. LANDSCAPING includes, but is not limited to, grass, ground covers, bushes, shrubs, hedges, or similar plantings. MAINTENANCE includes, but is not limited to, cutting, pruning, and mowing of required landscape and removal of all trimmings.
(d) Pools, spas, and other water features shall be kept in working order so the water remains clear and free pollutants and debris or drained and kept dry. Properties with pools and/or spas must comply with applicable security fencing requirements.
(e) Adherence to the maintenance requirements of this section does not relieve the responsible party, owner, or owner’s agent of any obligations set forth in any covenants, conditions, and restrictions and/or homeowners’ association’s rules and regulations which may apply to the property.
(2) The responsible party of a vacant distressed property and the owner or owner’s agent of a vacant property shall maintain the property in a secure manner so as not to be accessible to unauthorized persons. All vacant property shall be deemed adequately protected from intrusion by trespassers and from deterioration by the weather if:
(a) Doors, windows, areaways, and other openings are weathertight and secured against entry by birds, vermin, and trespassers. Missing or broken doors, windows, and opening coverings are covered with at least one-half inch of CDX plywood completely painted in accordance with the predominant tone of the building, weather protected, tightly fitted to the opening, and secured by screws or bolts;
(b) The roof and flashings are sound, tight, will not admit moisture, and drained to prevent dampness or deterioration in the walls or interior;
(c) The building gutters and downspouts are watertight and entire storm drainage system is adequately sized, installed in an approved manner, functional, and discharged in an approved manner. All downspout and gutters shall be of the type, size, and discharge locations approved by the Planning and Zoning Director;
(d) The building is maintained in good repair, structurally sound, free from debris, rubbish, and garbage, and sanitary walking surfaces and stairs are structurally sound, so as not to pose a threat to the public health or safety;
(e) The structural members are free of deterioration and capable of safely bearing imposed dead and live loads;
(f) The foundation walls are plumb, free from open cracks and brakes, and rat-proof;
(g) The exterior walls are free of holes, breaks, and loose or rotting materials. Exposed metal and wood surfaces are protected from the elements and against decay or rust by periodic application of weather coating materials, such as paint or similar surface treatment;
(h) All balconies, porches, canopies, marquees, signs, metal awnings, cornices, stairways, fire escapes, standpipes, exhaust ducts, and similar features are in good repair, anchored, sage, and sound. Exposed metal and wood surfaces are protected from the elements and against decay or rust by periodic application of weather coating materials, such as paint or similar surface treatment;
(i) Chimneys, cooling towers, smokestacks, and similar appurtenances are structurally safe. Exposed metal and wood surfaces are protected from the elements and against decay or rust by periodic application of weather coating materials, such as paint or similar surface treatment;
(j) Yard, walk, steps, and openings in sidewalks are safe for pedestrian travel and snow and ice are removed from sidewalks adjoining the property;
(k) Accessory and appurtenant structures such as garages, sheds, and fences are free from safety and health standards; and
(l) The premises on which a structure is located is clean, safe, and sanitary, maintained free of weeds, junk vehicles, and litter, and does not pose a threat to the public health or safety.
(3) Vacant property and vacant distressed property required to be registered in accordance with this section shall be inspected by the owner or owner’s agent or by the responsible party on a monthly basis to determine if the property is in compliance with the requirements of this section.
(K) Posting of notices.
(1) Vacant property and vacant distressed property required to be registered in accordance with this section shall be posted with the name and a 24-hour contact telephone number of the owner/owner’s agent or responsible party, including any local property management company.
(2) The posting shall contain along with the contact name and contact telephone number, words substantially similar to “this property preserved by ______” and “to report problems or concerns call______.”
(3) The notice shall be place 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 front door or the building/structure facing the street to the front of the property so it is visible from the street. If no such area exists, then the notice may be posted in a location that is visible from the street to the front of the property but not readily accessible to vandals.
(4) Notices shall not be illuminated or exceed eight and one-half by 14 inches in size. Exterior postings must be constructed of and printed with weather resistant materials. The owner or owner’s agent or the responsible party, property preservation company, or property management company shall inspect the vacant or distressed property on at least a monthly basis to determine if the property remains in compliance with the notice posting requirements of this section.
(L) Additional authority.
(1) If the Planning and Zoning Director, or his or her designee, determines that the vacant property or vacant distressed property is in violation of any provision of this section, then the designee shall notify the owner/owner’s agent or the lender/mortgagee/responsible party of the violation by providing notice of the violation to the person identified in the registration application, and shall require the owner/owner’s agent or the lender/mortgagee/responsible party to correct the violation.
(2) A notice of violation shall include a description of the violation and, except for severe conditions where immediate action is needed to protect the public health and safety or failure to secure the vacant property, shall provide a period of not less than 20 days from the mailing or delivery of the notice for the owner/owner’s agent or the lender/mortgagee/responsible party to remedy the violation. If the responsible party fails to remedy the violation within the stated period, the city may issue a citation for an ordinance violation and impose penalties against the owner/owner’s agent or the lender/mortgagee/responsible party for the violation.
(Ord. 13 2020, passed 8-18-2020) Penalty, see § 151.999