(A) The owner or a prospective purchaser of real property against which a code enforcement lien has been imposed may file a Petition for Relief with the City Manager or the City Manager's designee seeking satisfaction of such code enforcement lien with less than full payment, including partial payment in conjunction with verified improvements to the exterior of the real property. No such application shall be forwarded to the Special Magistrate for consideration until the applicant has first shown that:
(1) All ad valorem property taxes, special assessments, city utility charges and other government-imposed charges, fines or liens against the subject real property have been paid or are current;
(2) All code violations have been corrected under required permits issued therefore and appropriate affidavits of compliance are on-file in the matter.
(B) In the event the property owner is seeking relief under this section to facilitate a refinancing of the real property or to secure a home equity loan, the property owner may apply for the relief notwithstanding subsection (A)(1) above, provided a binding agreement is executed whereby the unpaid taxes, assessments, other liens or other indebtedness will be fully satisfied at the closing of the refinancing or home equity loan.
(C) Petition for Relief. In considering an application to reduce a code enforcement lien, no settlement or satisfaction shall be approved by the Special Magistrate with less than full payment, unless the Special Magistrate hears the matter as a quasi-judicial hearing at a public meeting (not a public hearing). Subsequent to the hearing, the Special Magistrate shall make specific findings that no violation of any city ordinance currently exists on the subject real property, or that a prospective purchaser has agreed to correct such violations on or before a date certain, which agreement is evidenced by a written agreement.
(D) Settlement of litigation. In considering whether to authorize a reduction of a code enforcement lien to bring a litigation matter to closure, no settlement or satisfaction shall be approved by the Special Magistrate with less than full payment, until the Special Magistrate receives a recommendation from both the City Attorney and the City Manager in writing, is fully apprised of the market value of the property, the amount of the lien(s), and any other extenuating circumstances. If time is of the essence, this determination does not require a public meeting at the time a decision is rendered; however, the settlement decision shall be ratified by the Special Magistrate at the next public meeting of the Special Magistrate and the full amount of the lien shall be placed in escrow by the closing agent until such time as the Magistrate's order is ratified.
(E) Urgent settlements. In the event an applicant requests that a Petition for Relief be considered prior to the next regularly scheduled hearing date, good cause must be shown. Good cause may include, but is not limited to, an unexpected short closing date for the purchase of real property. The Special Magistrate has the sole discretion to determine whether the matter involves a legitimate urgency which requires resolution prior to the next scheduled hearing. Before making a determination under this subsection, the Special Magistrate shall receive a recommendation from both the City Attorney and the City Manager in writing, shall be fully apprised of the market value of the property, the amount of the lien(s), and any other extenuating circumstances. This determination does not require a public meeting at the time a decision is rendered; however, the settlement decision shall be ratified by the Special Magistrate at the next public meeting of the Special Magistrate and the full amount of the lien shall be placed in escrow by the closing agent until such time as the Magistrate's order is ratified.
(Ord. 2022-11, passed 1-20-22)