(A) Purpose. The Corporate Authorities find that vacant, abandoned and foreclosed properties negatively affect property values, lead to increases in crime and contribute to the overall deterioration of the safety and welfare of the city and its citizens. The purpose of this section is to identify, track and regulate vacant, abandoned and foreclosed properties within the city.
(B) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
DEFAULT. Occurs when the mortgagor has not complied with the terms of the mortgage on the property, or the promissory note, or other evidence of debt referred to in the mortgage,
ENFORCEMENT OFFICER. Any law enforcement officer, building and housing official, zoning inspector, code enforcement officer, fire inspector, building inspector or other person authorized by the city to enforce applicable codes.
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 may include but are not limited to: overgrown and/or dead vegetation; past due utility notices and/or disconnected utilities; accumulation of trash junk or debris; abandoned vehicles, auto parts and/or materials; the absence of furnishings and/or personal items consistent with habitation or occupancy; the presence of an unsanitary, stagnant swimming pool; the accumulation of newspapers, circulars, flyers and/or mail; statements by neighbors, passers-by, delivery agents or government agents; and/or the presence of boards over doors, windows or other openings in violation of applicable code.
FORECLOSURE OR FORECLOSURE ACTION. The legal process by which a mortgagee or other lien holder terminates or attempts to terminate a property owner’s equitable right of redemption to obtain legal and equitable title to the real property pledged as security for a debt or the real property subject to the lien. The legal process is not concluded until the property obtained by the mortgagee, lien holder, or their designee, by certificate of title, or any other means, is sold to a non-related bona fide purchaser in an arm’s length transaction to satisfy the debt or lien.
FORECLOSED PROPERTY REGISTRY. A web-based electronic database of searchable real property records, used by the city to allow mortgagees the opportunity to register properties and pay applicable fees as required in this chapter.
MORTGAGEE. The creditor, including but not limited to trustees; mortgage servicing companies; lenders in a mortgage agreement; any agent, servant, or employee of the creditor; any successor in interest; or any assignee of the creditor’s rights, interests or obligations under the mortgage agreement; or any other person or entity with the legal right to foreclose on the real property, excluding governmental entities as assignee or owner.
OWNER. Every person, entity, or mortgagee, who alone or severally with others, has legal or equitable interest to any real property as defined by this chapter; has recorded title in the official records of the state, county or city to any real property; has legal care, charge, or control of any such property; is in possession or control of any such property; any person maintaining, operating or collecting rent of any such property and/or is vested with possession or control of any such property. The property manager shall not be considered the owner.
PROPERTY MANAGER. Any party designated by the owner as responsible for inspecting, maintaining and securing the property as required in this chapter.
REAL PROPERTY. Any residential or commercial land and/or buildings, leasehold improvements and anything affixed to the land, or portion thereof identified by a property parcel identification number, located in the city limits.
REGISTRABLE PROPERTY. Any real property located in the city, that (1) whether vacant or occupied, that is subject to an ongoing foreclosure action by the mortgagee or trustee, (2) has been the subject of a foreclosure action by a mortgagee or trustee and a judgement has been entered, (3) has been the subject of a foreclosure sale where the title was transferred to the beneficiary of a mortgage involved in the foreclosure and any properties transferred under a deed in lieu of foreclosure/sale, (4) has been determined vacant, or (5) is otherwise vacant. The designation of a “foreclosure” property as REGISTRABLE shall remain in place until such time as the property is sold to a non-related bona fide purchaser in an arm’s length transaction or the foreclosure action has been dismissed.
SEMI-ANNUAL REGISTRATION. Six months from the date of the first action that requires registration, as determined by the city, or its designee, and every subsequent six months the property is registrable. The date of the initial registration may be different than the date of the first action that required registration.
UTILITIES AND SERVICES. Any utility and/or service that is essential for a building to be habitable and/or perform a service necessary to comply with all city codes. This includes, but is not limited to, electrical, gas, water, sewer, lawn maintenance, pool maintenance, and snow removal.
VACANT. A building or substantial portion thereof that is unoccupied or has not actively been furnished and so used as a place of business or residence for more than 60 days. This includes manufactured housing and mobile homes whether located in a mobile home park or not. VACANT BUILDING does not include a building designed for storage if such building is secure from unauthorized entry, in good repair and does not otherwise constitute a nuisance. VACANT BUILDING does not include unoccupied property which are undergoing construction, renovation, or rehabilitation and which are in compliance with all applicable city ordinances, codes, and regulations, and for which construction, renovation or rehabilitation is proceeding diligently to completion.
(C) Registration of real property under foreclosure.
(1) A foreclosed property registry is hereby established to catalog each foreclosed property within the city which shall contain the following information, at a minimum:
(a) The address and PIN number of the property;
(b) The name and mailing address of the mortgagee;
(c) The case name and number of all litigation pending concerning the property;
(d) The name, email address, telephone number and mailing address of the property manager;
(e) Whether the property is occupied or vacant. If the property is occupied, whether the current tenants are owners, renters, squatters or other.
(2) Real property within the city shall be registered under this division by the mortgagee within ten days of the mortgagee filing a foreclosure action.
(3) At the time of initial registration each registrant shall pay a non-refundable semi-annual registration fee of $500 for each registrable property. Subsequent non-refundable semi-annual registrations of properties and fees in the amount of $500 are due within ten days of the expiration of the previous registration. Said fees shall be used to offset the costs of: (1) registration and registration enforcement, (2) code enforcement and mitigation related to defaulted properties, (3) post-closing counseling and foreclosure intervention limited to owner-occupied persons in default, which may not include cash and mortgage modification assistance, and (4) for any related purposes as may be adopted in the policy set forth in this chapter.
(4) When a registrable property is vacant or becomes vacant, the owner shall designate a property manager to be responsible for the requirements of this section. The property manager shall be responsible for inspecting, maintaining and securing the property.
(5) If the mortgage and/or servicing on a property is sold or transferred, the new mortgagee is subject to all the terms of this section. Within ten days of the transfer, the new mortgagee shall register the property or update the existing registration. The previous mortgagee(s) will not be released from the responsibility of paying all previous unpaid fees, fines, and penalties imposed by the city and accrued during that mortgagee’s involvement with the registrable property.
(6) If the mortgagee sells or transfers the registrable property in a non-arm’s length transaction to a related entity or person, the transferee is subject to all the terms of this chapter. Within ten days of the transfer, the transferee shall register the property or update the existing registration. Any and all previous unpaid fees, fines, and penalties, regardless of who the mortgagee was at the time registration was required, including but not limited to unregistered periods during the foreclosure process, are the responsibility of the transferee and are due and payable with the updated registration. The previous mortgagee will not be released from the responsibility of paying all previous unpaid fees, fines, and penalties imposed by the city and accrued during that mortgagee’s involvement with the registrable property.
(7) If the foreclosing or foreclosed property is not registered, or the registration fee is not paid within 30 days of when the registration or renewal is required pursuant to this section, a late fee equivalent to 10% of the semi-annual registration fee shall be charged for every 30-day period, or portion thereof, the property is not registered and shall be due and payable with the registration.
(8) This division shall also apply to properties that have been the subject of a foreclosure sale where title is transferred to the mortgagee as well as any properties transferred to the mortgagee under a deed in lieu of foreclosure or by any other legal means.
(9) Properties subject to this division shall remain subject to the semi-annual registration requirement, and the inspection, security, and maintenance standards of this section as long as the property remains registrable.
(10) Failure of the mortgagee and/or property owner of record to properly register or to modify the registration to reflect a change of circumstances as required by this section is a violation of this division and shall be subject to enforcement by any of the enforcement means available to the city.
(11) If any property is in violation of this section the city may take the necessary action to ensure compliance with and/or place a lien on the property for the cost of the outstanding obligation and any additional cost incurred to the property into compliance.
(12) Registration of foreclosure property does not alleviate the mortgagee and/or owner from obtaining all required licenses, permits and inspections required by applicable code or state statutes. Acquisition of required licenses, permits and inspections or registration of rental property does not alleviate the requirement for the property to be registered under this division. Mortgagee and/or owner is expected to update the status of the property in the event of a mortgagee managed rental.
(13) Properties meeting the requirements of this division are not required to register under division (D) below.
(D) Registration of all other vacant and abandoned properties.
(1) A separate registry is hereby established for all other vacant properties within the city that are not subject to the foreclosed property registry.
(2) The Director of Building and Housing or his or her designee is authorized to declare a building vacant if (1) the building is under construction but no substantial work has taken place for at least 180 days; (2) for a commercial building, no business has been conducted for at least 60 days and other evidence of vacancy is present; (3) fora residential building, any utility or service has ceased for at least 60 days and other evidence of vacancy is present. The Director of Building and Housing shall issue a notice to the taxpayer of record that the building has been declared vacant pursuant to this section.
(3) An owner of any vacant property shall, within 30 days after the property becomes vacant or within 30 days after notice that a building has been declared vacant, register the vacant property with the Building and Housing Department.
(4) Each vacant property registration shall be made in writing to the Building and Housing Department on a form provided for the purpose, accompanied by the applicable registration fee, and shall contain:
(a) The address and PIN of the property.
(b) The name, telephone number, email address and mailing address of the owner of the property.
(c) The name, email address, street address and telephone number of the property manager.
(d) The case name and number of any litigation pending concerning or affecting the property, including bankruptcy or foreclosure cases.
(e) The name, street address and telephone number of all persons with any legal interest in the property.
(f) Type and location of any toxic, flammable or hazardous materials stored or used at said location, if applicable.
(g) Any other relevant information about the vacant property for police, paramedics, the Fire Department, or other emergency responders, if applicable.
(5) At the time of initial registration each registrant shall pay a non-refundable semi-annual registration fee of $500 for each property. Subsequent non-refundable semi-annual registrations of properties and fees in the amount of $500 are due within ten days of the expiration of the previous registration. Said fees shall be used to offset the costs of: (1) registration and registration enforcement, (2) code enforcement and mitigation related to vacant and abandoned properties, and (3) for any related purposes as may be adopted in the policy set forth in this section.
(6) Changes in registration information. An owner shall notify the Building and Housing Department within 21 days of any change in the registration information by filling an amended registration provided by the Building and Housing Department. A new registration is required for any change in ownership whatsoever.
(E) Regulations for all registrable property. The owner or mortgagee of a registrable property shall be responsible for the following:
(1) Property maintenance. All registrable properties, including adjoining yard areas, shall be maintained in compliance with all city ordinances and remain free of weeds, overgrown bush, dead vegetation, building materials, accumulation of newspapers, discarded furniture, clothing, appliances, debris, garbage, graffiti, litter, portable toilets, rodents, standing water and any other items that give the appearance that the property is abandoned. All grass and vegetation shall be landscaped and maintained. The property shall be properly winterized between November 1 and March 31 of the year.
(2) Security. All registrable properties shall be kept secure from unauthorized entry. All points of ingress and egress including garages, doors and windows shall be closed and locked. Broken windows, doors, gates, or fences shall be repaired and secured immediately. If the property has been boarded up the boards must be painted black.
(3) Posting. If a registrable building is vacant, it shall be posted with the name and 24-hour contact telephone number of the Property Manager. The posting shall be no less than 18 inches by 24 inches and shall be placed in a window facing the street. The posting shall contain the following information:
THIS PROPERTY IS MANAGED BY _____________________________________
AND IS INSPECTED ON A REGULAR BASIS.
THE PROPERTY MANAGER CAN BE CONTACTED
BY TELEPHONE AT __________________________________________________
OR BY EMAIL AT ____________________________________________________.
UNAUTHORIZED ENTRY AND VANDALISM ARE STRICTLY PROHIBITED.
(4) Failure of the mortgagee and/or property owner of record to properly inspect and secure a property subject to this chapter, and post and maintain the signage noted in this section, is a violation and shall be subject to enforcement by any of the enforcement means available to the city. The city may take the necessary action to ensure compliance with this section, and recover costs and expenses in support thereof.
(F) City incurred fees. All fees incurred by the city to maintain, secure, or otherwise bring a property into code compliance shall be reimbursed to the city by the owner or mortgagee of the property. Fees shall be as stated in an invoice from an outside contractor or as designated in the city’s fee ordinance plus an additional $100 administrative fee per activity. Failure to reimburse the city may result in a lien of the property pursuant to applicable law.
(G) Remedies not exclusive. The provisions of this chapter are cumulative with and in addition to other available remedies. Nothing contained in this chapter shall prohibit the city from collecting on fees, fines, and penalties in any lawful manner; or enforcing its codes by any other means, including, but not limited to, injunction, abatement, or as otherwise provided by law or ordinance.
(H) Implementation. The city may contract with an entity to implement all or portions of this section.
(Ord. 09-O-1952, passed 7-1-2009; Ord. 11-O-1999, passed 7-20-2011; Ord. 23-O-2350, passed 2-15-2023)
Penalty, see § 150.999