(A) Where a certified copy of an order imposing a penalty or fine, as described in this chapter, has been recorded in the public records of the county, and has become a lien against the land and/or property of the violator, such violator, or the violator's successors or assigns, who has an ownership interest in the encumbered property (collectively the "applicant") may apply for a satisfaction, reduction, or release, of such lien as follows:
(1) Upon full payment by the applicant of the fine or penalty imposed in accordance with this chapter, the City Clerk is hereby authorized to execute and record on behalf of the city a satisfaction of lien in the public records of the county. The applicant shall be responsible for paying all costs of recording.
(2) Upon request for a reduction or release of a lien or penalty imposed in accordance with this section, the applicant shall submit a written application to the City Clerk.
(B) The application for reduction or release of lien shall be in written form, typed or handwritten, by the applicant and shall be submitted to the City Clerk. The application shall be executed under oath and sworn to in the presence of a notary public, and shall include, but may not be limited to, the following:
(1) A copy of the deed to the property, and the order imposing the lien upon the property including the code enforcement case number;
(2) The date upon which the applicant brought the subject property into compliance with the code;
(3) The factual basis upon which the applicant believes the application for release or reduction of lien should be granted. If based on financial hardship, proof of the hardship should be provided:
(4) The terms upon which the release or reduction of lien should be granted, specifically, the amount of time requested to make the partial payment;
(5) The reasons, if any, compliance was not obtained prior to the order of penalty or fine being recorded;
(6) The reduction in penalty or fine sought by the applicant;
(7) A statement verifying whether the applicant was issued any title policy or policies for the subject property encumbered by the lien after the date the lien was recorded in the public records of the county. If such a policy or policies were issued to the applicant, a copy of any such title policy must be submitted with the application;
(8) If the property is homestead, proof of the homestead status;
(9) Any lien or mortgage foreclosure that might impact the code enforcement liens, and whether the city was named as a defendant in a foreclosure case;
(10) If the reason for the reduction request is a pending sale of the property, a copy of the sales contract must be provided;
(11) Any other information which the applicant deems pertinent to the request, including but not limited to the circumstances that exist which would warrant the reduction or satisfaction of the penalty or fine. This could include proof of permanent improvements made to the property by the applicant.
(C) The applicant shall submit, at the time of application, payment to the city in the amount necessary to reimburse the city for its costs associated with recording the order imposing a penalty or fine and the requested reduction or release of lien. These costs are nonrefundable, without regard for the final disposition of the application.
(D) Upon receipt of the application for reduction or release of lien and payment provided above, the City Clerk shall confirm through the Code Enforcement Department that the violation which resulted in the order imposing penalty or fine has been brought into compliance. If: (1) the violation has been brought into compliance; (2) there is no current code violation upon the property in question or any other property owned by the applicant; (3) all ad valorem property taxes, special assessments, city utility charges and other government-imposed liens against the subject real property have been paid; (4) the applicant, and, if a corporate entity such as an LLC, the managing member of the applicant, is not personally indebted to the city for any reason; (5) there are no expired permits on the subject property or any property owned by the applicant in the city, the City Manager shall review and consider the application. Additional information shall also be required to support the application if the City Manager deems such information is relevant and necessary to make a final decision on the application. The City Commission hereby delegates to the City Manager the authority to review and consider applications for release or reduction of liens and make determinations as provided herein.
(E) Liens not eligible for reduction. The following liens cannot be reduced by the city:
(1) Hard costs incurred by the city, including but not limited to: lot clearing, boarding up, demolition, condemnation costs, any costs incurred by a city contractor to cure the violation, etc.;
(2) Any lien resulting from a fine for a violation that was determined to be irreparable or irreversible;
(3) Any lien that is insured by a title insurance policy (not listed as an exception);
(4) Any lien that is currently the subject of a foreclosure action initiated by the city.
(F) The City Manager shall review and consider the following factors in making a determination to reduce or release the lien:
(1) The amount of any administrative and out-of-pocket costs incurred by the city which are directly associated with the underlying code enforcement case and lien including, but not limited to, code enforcement staff and attorney time, postage, advertising and recording costs, and other city expenses related to any measure taken by the Code Enforcement Board or city to abate a nuisance caused by the violation;
(2) The gravity and number of violation(s);
(3) The amount of the requested reduction;
(4) Whether the applicant was responsible for the violation which caused the lien;
(5) Whether the applicant is or will be a bona fide purchaser of the subject property and is filing or has filed for a homestead exemption evidencing a desire to reside within the city on a non-transient basis, or whether the property is or will be acquired for investment or other purposes;
(6) Whether the applicant acquired the subject property with knowledge of the subject lien, and whether the applicant should have known about the lien;
(7) The time it took to bring the property into compliance;
(8) The accrued amount of the code enforcement lien as compared to the current market value of the property;
(9) With respect to a speculator, non-homestead purchaser of the subject property, the accrued amount of the code enforcement lien as compared to the investment/profit that will be gained as a result of the purchase or sale of the property and the reduction or satisfaction;
(10) Any previous or subsequent code violations pertaining to the property unless an order finding a violation is under appeal at the time of determination;
(11) Any previous or subsequent code violations of the applicant pertaining to other properties owned within the city, unless an order finding a violation is under appeal at the time of determination;
(12) Any relevant information contained in any title policy required to be submitted to the city under this section;
(13) Any financial hardship;
(14) Any other mitigating circumstance which may warrant the reduction or satisfaction of the penalty or fine, including the effect of a foreclosure judgment; and
(15) Any other administrative review criteria relevant to whether it is equitable to reduce or release a lien which are adopted by the City Manager, in writing, and are intended to be applied to all applications on a uniform basis.
(G) The City Manager may, in writing, approve, approve with conditions, or deny the application to reduce or release the lien. To the maximum extent feasible, the City Manager shall collect, at a minimum, all administrative and out-of-pocket costs incurred by the city as specified in division (E)(1). If the City Manager approves the application and the approval is conditioned upon the applicant paying a reduced penalty, fine, or any other condition, the satisfaction or release of lien shall not be prepared or recorded until the condition(s) placed by the City Manager have been satisfied. If the applicant is a prospective owner, any lien reduction granted by the City Manager is conditioned upon the transfer of title to the property to the applicant.
(H) The applicant shall have 30 days in which to comply with the conditions imposed by the City Manager or submit a written appeal as provided herein. Failure of the applicant to comply or timely appeal will result in the automatic denial of the application and the original amount of the lien, including costs, shall be automatically reinstated. After the appeal time period has run or is waived by the applicant, in writing, the City Manager may, for good cause shown, grant additional time in the form of a written estoppel letter to a closing agent for purposes of facilitating a pending closing of the subject property.
(I) If the application is denied, or if the application is automatically denied due to the failure of the applicant to comply with the conditions imposed by the City Manager or timely appeal, the applicant shall thereafter be barred from applying for a subsequent reduction or release of lien for a period of one year from the date of denial. During the one-year period, the lien may only be satisfied and released upon full payment of the fine imposed in accordance with this section.
(J) The applicant may appeal the City Manager's decision to the City Commission by filing a written appeal within 30 days of the date of the decision with the City Clerk. The notice of appeal shall state the decision that is being appealed, the grounds for appeal, and a brief summary of the relief being sought. Upon submittal of a timely appeal, the City Manager shall place the appeal upon the agenda of the next regularly scheduled City Commission meeting to the extent practicable. The City Commission shall render a final decision on the application based upon the sworn application and determination of the City Manager, and any other relevant information or testimony provided to the City Commission at the meeting by the applicant, City Manager or any other interested party. Any decision made by the City Commission pursuant to this section shall be deemed final and not subject to any further administrative review by the city. The applicant shall have 30 days in which to comply with any decision of or condition imposed by the City Commission or the application shall be deemed automatically denied, and thereafter the applicant shall be barred from applying for a subsequent reduction or release of lien for a period of one year from the date of the City Commission's decision. During the one-year period, the lien may only be satisfied and released upon full payment of the fine imposed in accordance with this section.
(K) When a lien is satisfied as a result of reduced payment or release as ordered by the City Manager or City Commission, the City Clerk is hereby authorized to execute and record in the public records of the county a satisfaction of lien on behalf of the city.
(L) Under appropriate circumstances determined by the City Manager or City Commission to be in the best interests of the city, the City Manager or City Commission may approve an application conditioned upon a partial release of lien that releases a city lien from a specific piece of property. However, in those circumstances, the lien will remain in effect and will encumber any other properties which are subject to the lien pursuant to law. Partial releases of lien may also be authorized by the City Manager or City Commission to account for any funds paid to the city to reduce the amount owed on the lien. In addition, nothing herein shall prohibit the City Manager from releasing a lien, in whole or part, which was recorded in error by the city or foreclosed by a superior lien or mortgage in a judicial proceeding. The City Manager may impose an administrative charge to release a lien foreclosed to recover the city's costs associated with the subject lien. A property owner does not need to file an application to release a lien recorded in error.
(Ord. 1628, passed 8-20-20)