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HomeMy WebLinkAbout4.04 Muni Code Public Welfare/oFDU~~~ CITY CLERK ~~~ File # ^®®0"®~ ~- ~ -~• s~ ~ C~ . ~e , ,tl~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: December 2, 2008 SUBJECT: Ordinance Adding Chapter 5.66 to Title 5 (Public Welfare) of the Dublin Municipal Code .relating to Maintenance of Foreclosed Residential Properties. Report Prepared by Jeri Ram, Community Development Director and Elizabeth H. Silver, Assistant City Attorney ATTACHMENTS: 1) Draft Ordinance Adding Chapter 5:66 to Title 5 (Public Welfare) of the Dublin Municipal Code Relating to Maintenance of Foreclosed Residential Properties. 2) City Council Agenda Statement dated November 18, 2008 (without attachments). RECOMMENDATION: Waive the second reading and adopt the Ordinance adding Chapter 5.66 to Title 5 (Public Welfare) of the Dublin Municipal Code Relating to Maintenance of Foreclosed Residential Properties. ~~ FINANCIAL STATEMENT: The citation remedy of $1,000 per day per foreclosed residential property allowed by the State Law would be directed towards mitigating the costs of the City's nuisance abatement of programs in general. DESCRIPTION: As a result of the foreclosure crisis in California, on July 8, 2008, the California Governor signed into law Senate Bill 1137, urgency legislation relating to mortgages and maintenance of foreclosed properties, which will be in effect through January 1, 2013. Pursuant to Civil Code Section 2929.3, which was added by Senate Bill 1137, legal owners of vacant residential properties purchased at a foreclosure sale, or acquired through foreclosure under a mortgage or Deed of Trust, must maintain the residential property or face civil penalties of up to $1,000 per day. Under Senate Bill 1137, failure to maintain means failure to care for the exterior of the property, including but not limited to, permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action to prevent trespassers or squatters from remaining on the property, or failing to take action to prevent mosquito larvae from growing in standing water or other conditions that create a public nuisance. Although the number of foreclosed properties in Dublin is relatively low compared to many communities in California, Staff recommends inclusion of the remedies of Senate Bill 1137 in the City's Municipal Code so that Code Enforcement Staff have the additional tools to ensure that community standards are maintained. COPY TO: Page 1 of 2 ~ ITEM NO. • GWgendas\2008\CCSR Foreclosed Maintenance Ord 12-2-08 2nd Read.DOC The attached Draft Ordinance ("Ordinance") (Attachment 1) incorporates the authority to impose a civil penalty of up to $1,000 per day and provides additional code enforcement tools for the City to address the blight conditions that are often observed at vacant, foreclosed residential properties. In addition, the Ordinance imposes additional maintenance and security requirements to address the conditions typically observed at such vacant and foreclosed residences. Furthermore, the Ordinance declares that violations of the maintenance and security requirements constitute a public nuisance. This Ordinance would be in effect 30 days following the Second Reading. The Ordinance will remain in effect until January 1, 2013, unless Senate Bill 1137 is extended by later enacted California legislation. At the present time City Staff has been able to achieve compliance with the community standards for a majority of the properties that are in foreclosure. However, should Staff need to use the provisions of this Ordinance, there is a required 14 day notice that would be sent out to the violator. City Council Action On November 18, 2008, the City Council heard a presentation from Staff and conducted a public hearing on the proposed Ordinance (Attachment 2). At that meeting, the City Council waived the reading and introduced the Ordinance. RECOMMENDATION: Staff recommends that the City Council waive the second reading and adopt the Ordinance adding Chapter 5.66 to Title 5 (Public Welfare) of the Dublin Municipal Code Relating to Maintenance of Foreclosed Residential Properties. Page 2 of 2 ~~~ ORDINANCE NO. XX-08 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADDING CHAPTER 5.66 TO TITLE 5 (PUBLIC WELFARE) OF THE DUBLIN MUNICIPAL CODE RELATING TO MAINTENANCE OF FORECLOSED RESIDENTIAL PROPERTIES THE CITY COUNCIL OF THE CITY OF DUBLIN DOES HEREBY ORDAIN AS FOLLOWS: WHEREAS, pursuant to the police power granted to the City of Dublin ("City") under the California Constitution, the City may adopt rules and regulations to serve and protect the health, safety and welfare of the public; and WHEREAS, on July 8, 2008, the California Governor signed Senate Bill 1137, which added Section 2929.3 to the California Civil Code; and WHEREAS, the legislation was based on the impact of foreclosures in the State of California. High foreclosure rates have adversely affected property values in California and will have even greater consequences as foreclosure rates continue to rise. If foreclosed property is neglected, these properties can cause blight in the community, and decrease the surrounding property values; and WHEREAS, the Civil Code Section 2929.3 requires legal owners to maintain vacant residential property purchased at a foreclosure sale, or acquired by that owner through foreclosure under a mortgage or Deed of Trust; and WHEREAS, pursuant to Civil Code Section 2929.3, local governments, such as the City, upon notice are authorized to impose civil penalty in the amount not to exceed $1,000 per day for failure to maintain foreclosed vacant residential property; and WHEREAS, this legislation remains in effect until January 1, 2013, and as of that date is repealed, unless later enacted statute(s), enacted before January 1, 2013, deletes or extends that date; and WHEREAS, pursuant to the City's police powers, authorized in Article XI, Section 7 of the California Constitution, as well as under the City of Dublin Municipal Code and other provisions of California law, including, but not limited to California Government Code Section 38771, the City has the power through its City Council to declare action and activities that constitute a public nuisance. NOW, THEREFORE, the City Council of the City of Dublin does hereby ordain as follows: SECTION 1. Chapter 5.66 entitled "Maintenance of Foreclosed Residential Properties" is hereby added to Title 5 (Public Welfare) of the Dublin Municipal Code to read in its entirety as follows: "5.66 Maintenance of Foreclosed Residential Properties" 5.66.010 Purpose and Pre-Emption. This Chapter is not intended to .preempt State law, but is only intended to carry out the provisions of California Civil Code Section 2929.3. In event there is a conflict between the provisions of State Law and this Chapter, the State Law shall control. tz -z -a~ ~-'~ Attachment 1 Z~jB 5.66.020 Definitions. "Failure to maintain" means failure to care for the exterior of the property, including, but not limited to permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action to prevent trespassers or squatters from remaining on the property, or failing to take action to prevent mosquito larvae from growing in standing water or other conditions that create a public nuisance, including conditions at or on the foreclosed residential property in violation of Sections 5.64.040,5.68.050 and 5.70.020 of Dublin Municipal Code "Foreclosed residential property" means a vacant residential property purchased by the legal owner at a foreclosure sale, or acquired by the legal owner through foreclosure under a mortgage or Deed of Trust. "Landscape" includes, but is not limited to, grass, ground covers, bushes, shrubs, hedges or similar painting, decorative rock or bark or artificial turf/sod designed specifically for residential installation. Landscape does not include weeds, gravel, broken concrete, asphalt, decomposed granite, plastics sheeting, mulch, indoor-outdoor carpet or any similar material. "Landscape maintenance" includes, but is not limited to, regular watering, irrigation, cutting, pruning, mowing and removal of all trimmings of required landscape. "Legal owner" means any person, partnership, co-partnership, association, corporation, fiduciary or any other legal entity having a legal or equitable title or any interest in the foreclosed residential property. "Residential property" means any improved real property, or portion thereof, situated 'in the City of Dublin, designed, built or permitted to be used for dwelling purposes, specifically including the building and structure located on such improved real property. This includes any real property being offered for sale, trade, transfer or exchange as "residential" whether or not it is legally permitted or zoned for such use. "Secured" means treated with such measures as may be directed by City Manager or his/her designee that assist in rendering the vacant foreclosed residential property inaccessible to unauthorized persons, squatters, trespassers, including, but not limited to, the closure, locking, pad-locking, chaining, repair and/or boarding of fence(s), wall(s), gate(s), window(s), door(s) (walk-through, sliding and/or garage), and/or other openings of such size that may allow a child access to the interior of the accessible property. In case of broken windows, secured included the reglazing or boarding of the window. 5.66.030 Maintenance of Foreclosed Residential Properties. A legal owner shall maintain foreclosed residential property as follows: A. Foreclosed residential property shall be maintained so as to be kept free of evidence of vacancy and abandonment; B. Foreclosed residential property shall be maintained free of weeds, dry brush, dead vegetation, trash, junk, debris and excessive foliage growth that diminishes the value of surrounding properties; C. Foreclosed residential property shall be maintained free of mosquito larvae from growing in standing water; 2 3~~ D. Foreclosed residential property shall be maintained free of any 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 appearance that the property is abandoned; . E. Foreclosed residential 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, following a notice pursuant to Section 5.68.060 of Dublin Municipal Code or notice pursuant to California Civil Code Section 2929.3, whichever is applicable; F. Maintenance of abandoned properties shall include landscape maintenance of visible front and side yards; G. Pools and spas shall either (a) be kept in working order so the water remains clear and free of pollutants and debris; or (b) drained and kept dry. In either case, properties with pools and/or spas must comply with the minimum security fencing requirements of the State of California; H. Foreclosed residential property shall be maintained free of public nuisance conditions as set forth in Sections 5.64.040 and 5.70.020 of Dublin Municipal Code; and/or I. Foreclosed residential property shall be secured, as defined in this Chapter. In addition, the foreclosed residential property shall be secured in a manner that would prevent trespassers, squatters or unauthorized persons from entering and/or remaining on the property. 5.66.040 Declaration of Public Nuisance. Pursuant to City's police powers authorized in Article XI, Section 7 of the California Constitution, as well as the City of Dublin Municipal Code and other provisions of California law, including, but not limited to, California Government Code Section 38771, the City Council hereby declares that violation of the maintenance and security requirements of Section 5.66.030 of this Chapter shall constitute a public nuisance. 5.66.050 Civil Penalty Imposed. A. Pursuant to California Civil Code Section 2929.3, the City of Dublin may impose a civil penalty in the amount not to exceed $1,000 per day against the legal owner for failure to maintain the foreclosed residential property, as required by this Chapter, provided that notice requirements of Civil Code Section 2929.3, as set forth in Section 5.66.060 are satisfied. If imposed, the civil penalty pursuant to this Section shall commence on the day following the expiration of the compliance period, as provided in notice required by Section 5.66.060. B. In determining the amount of the civil penalty, the City shall take into consideration any timely and good faith efforts by the legal owner to remedy the violations at the foreclosed residential property. C. Civil penalties collected pursuant to this Section shall be directed to the City's nuisance abatement programs. D. The City shall not impose a civil penalty pursuant to this Section together with administrative citations or fines, as may otherwise be authorized by the Dublin Municipal Code. 3 ~~~ 5.66.060 Notice of Violation and Compliance Period. A. If the City imposes a civil penalty pursuant to Section 5.66.050, the City shall first give a notice of alleged violation, which includes a description of the conditions that have risen to the allegation, notice of the City's intent to assess a civil penalty pursuant to Section 5.66.050, if actions necessary to address and/or correct the violation(s) at the foreclosed residential property are not commenced within a period of not less than fourteen (14) days and completed within a period of not less than thirty (30) days, from the date of the mailing of the notice. B. The City may provide less than thirty (30) days' notice to complete actions necessary to address and/or correct the violation(s), if the City determines that a specific condition of the foreclosed residential property threatens public health or safety and provided that the notice of violations states that there is a threat to public health or safety, and shorter time for compliance is provided. C. The notice of violation pursuant to this Section shall be mailed by certified mail to the address provided in the Deed or other instrument specified in California Government Code Section 27321.5, including Deed, instrument conveying title, mortgage with power of sale; or if none, to the return address provided on the deed or other instrument. 5.66.070 Appeals. Any person aggrieved by any of the requirements of this Section may appeal insofar as such appeal is permitted under the applicable Sections of Chapters 5.64, 5.68 and 5.70 of Dublin Municipal Code. Any person aggrieved by the imposition of a civil penalty pursuant to Section 5.66.050 of this Chapter, may appeal the imposition of the penalty to the City Council pursuant procedures set forth in Section 1.04.050 of Dublin Municipal Code. 5.66.080 Enforcement. In addition to civil penalty authorized by Section 5.66.050, violations of this Chapter maybe enforced in any combination as permitted by Chapters 5.64, 5.68 and 5.70 of Dublin Municipal Code and any other enforcement and legal remedies available to the City under the law. However, in no event shall the City impose a civil fine pursuant to Section 5.66.050, together with administrative fine that maybe authorized by Dublin Municipal Code. 5.66.090 Sunset Date. This Chapter shall remain in effect until January 1, 2013, and as of that date is repealed, unless the State of California enacts a statute before January 1, 2013, that either deletes or extends Civil Code Section 2929.3. SECTION 2. Severability. The provisions of this Ordinance are severable and if any provision, clause, sentence, word or part thereof is held illegal, invalid, unconstitutional, or inapplicable to any person or circumstances, such illegality, invalidity, unconstitutionality, or inapplicability shall not affect or impair any of the remaining provisions, clauses, sentences, sections, words or parts thereof of the ordinance or their applicability to other persons or circumstances. SECTION 3. Effective Date. This Ordinance shall take effect and be enforced thirty (30) days following its adoption. SECTION 4. Posting. The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in .the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. 4 ~0~~6 PASSED, APPROVED AND ADOPTED this 2nd day of December, 2008 by the following votes: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: Caroline Soto, City Clerk G: IAgendas120081CC ORD Foreclosed Maintenance 12-02-08 2nd read 5 ti~~ \ <~ :~ \~/~:' CITY CLERK File # ^~~~-~0 ~DDb'~S `~LIFOR~~`~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: November 18, 2008 SUBJECT: PUBLIC HEARING: Ordinance Adding Chapter 5.66 to Title 5 (Public Welfare) to the Dublin Municipal Code relating to Maintenance of Foreclosed Residential Properties. Report Prepared by Jeri Ram, Community Development Director and Elizabeth H. Silver, Assistant City Attorney ATTACHMENTS: 1) Draft Ordinance Adding Chapter 5.66 to Title 5 (Public Welfare) of the Dublin Municipal Code Relating to Maintenance of Foreclosed Residential Properties. RECOMMENDATION: 1) 2) 3) ~ 4) 5) Receive Staff Presentation; Open public hearing; Receive public testimony; Close public hearing and deliberate; and Waive reading and introduce Ordinance adding Chapter 5.66 to Title 5 (Public Welfare) of the Dublin Municipal ,Code Relating to Maintenance of Foreclosed Residential Properties. FINANCIAL STATEMENT: The citation remedy of $1,000 per day per foreclosed residential property allowed by the State Law would be directed towards mitigating the costs of the City's nuisance abatement of programs in general. DESCRIPTION: The recent increase in the number of mortgage default notices filedagainst California homeowners and the number of foreclosures have raised to the highest level in more than 15 years. The properties in the Foreclosure Process often end up vacant and abandoned, prior to or after the lender/bank takes title to the property. Moreover, the foreclosed properties may remain vacant and on the market for a prolonged period of time. Typically, such vacant abandoned residences are not maintained and not monitored by the lenders banks, which may result in residences with dry, dead or overgrown landscaping, lawns and vegetation; trespassers, vandals and thieves entering the property; graffiti and/or vandalism of both the exterior and interior of the dwelling; accumulation of junk, debris, trash, and personal items; and/or pools with polluted water or mosquito larvae growing in the water. The lack of .security and maintenance of abandoned residential properties can result in detrimental effects, including the unsightly appearance of blighted residential neighborhoods, lowered property .values, and to discourage potential buyers from COPY TO: Page 1 of 3 _ ~ . V G: IAgendas110081CCSR Foreclosed Maintenance Ord /1.18.081st ReadDOCs1C ment 2 purchasing homes in adjacent neighborhoods affected by the resulting squatting, vandalism, and burglaries which can pose a risk to the public peace, safety and welfare of the City. '~~ As a result of the foreclosure crisis in California, on July 8, 2008, the California Governor signed into law Senate Bi11 1137, urgency legislation relating to mortgages and maintenance of foreclosed properties, which will be in effect through January 1, 2013. Pursuant to Civil Code Section 2929.3, which was added by Senate Bill 1137, legal owners of vacant residential properties purchased at a foreclosure sale, or acquired through foreclosure under a mortgage or Deed of Trust, must maintain the residential property or face civil penalties of up to $1,000 per day. Under Senate Bill 1137, failure to maintain means failure to care for the exterior of the property, including but not limited to, permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action to prevent trespassers or squatters from remaining on the property, or failing to take action to prevent mosquito larvae from growing in standing water or other conditions that create a public nuisance. Senate Bill 1137 has only been in effect since July, 2008 and cities are just beginning to adopt ordinances implementing all or a portion of the remedies available under the new law. To date, the cities of Chula Vista, Fresno, Beaumont, Desert Hot Springs, Cathedral City, Indio, Covina and Greenfield have implemented portions of the legislation. The City of Pittsburg is in the process of approving a similar ordinance as well. At a recent seminar in Southern California where Meyers Nave presented a session on this Senate Bill, attendees indicated that where the cities had adopted provisions of the remedies allowed by Senate Bill 1137, it was successfully working to maintain community standards. Although the number of foreclosed properties in Dublin is relatively low compared to many communities in California, Staff recommends inclusion of the remedies of Senate Bill 1137 in the City's Municipal Code so that Code Enforcement Staff have the additional tools to ensure that community standards are maintained. Proposed Ordinance The attached Draft Ordinance ("Ordinance") (Attachment 1) incorporates the authority to impose the up to $1,000 per day civil penalty and provides additional code enforcement tools for the City to address the blight conditions that are often observed at vacant, foreclosed residential properties. In addition, the Ordinance imposes additional maintenance and security requirements to address the conditions typically observed at such vacant and foreclosed residences. Furthermore, the Ordinance declares that violations of the maintenance and security requirements constitute a public nuisance. The key provisions of the Ordinance are discussed in more detail below. Maintenance and Security Requirements The Ordinance imposes various maintenance requirements to address the conditions typically observed by the City Staff at vacant foreclosed residences, including but not limited to; dry, dead or overgrown landscaping and vegetation, graffiti and vandalism of both the exterior and interior of the dwelling, and boarded windows and doors. In addition, the Ordinance. requires the legal owners of vacant foreclosed properties to secure the property in a manner that would .prevent trespassers, vandals, thieves or any unauthorized persons from entering the property. The Ordinance also incorporates the City's residential property maintenance requirements, weeds and graffiti regulations,. as provided in Chapters 5.64, 5.68 and 5.70 of Dublin's Municipal Code. Notice and Civil Penalty Provisions The Ordinance authorizes the City to impose a civil penalty in the amount not to exceed $1,000 per day pursuant to Senate Bill 1137, when a legal owner fails to maintain the vacant foreclosed residential property.. Prior to issuing a civil penalty, the City must first provide the legal owner with: 1) notice of Page 2 of 3 violation; 2) notice of the conditions establishing the violation(s); and 3) notice of the City's intent to issue the civil penalty in the amount up to $1,000, if actions necessary to address and/or correct the violation(s)~~~ at the foreclosed residential property are not commenced within 14 days and completed within 30 days. Under the circumstances where a specific condition on the property threatens the public health or safety, the City may establish a compliance period shorter than 30 days. If the legal owner fails to remedy the violation(s), the City may assess a civil penalty of up to $1,000 for each day the vacant foreclosed property is not maintained. In imposing the fine, Senate Bill 1137 requires the City to determine the amount of the fine based on any timely or good faith efforts by the legal owner to remedy the violation(s). The civil penalties collected pursuant to the Ordinance shall be directed to City's nuisance abatement programs. Flexibility of Using Either. this Ordinance or Existing Property Maintenance Ordinance The Ordinance provides the City with an additional tool for enforcing the City's property maintenance, weeds and graffiti regulations; and does not prevent the City from proceeding with abatement of public nuisances pursuant to existing Chapters 5.64 (Property Maintenance), 5.68 (Graffiti) and 5.70 (Weeds and Refuse) of the Dublin Municipal Code. However, the City cannot pursue penalties under each Section of the Code. Therefore, if the City enforces the civil penalty allowed under Senate Bill 1137 the City cannot also issue a citation under the other chapters of the Code. Ordinance Sunset Date The Ordinance will remain in effect until January 1, 2013, unless Senate-Bill 1137 is extended by later enacted California legislation. Appeals Any person aggrieved by the imposition of the civil penalty pursuant to the Ordinance may appeal the penalty to the City Council pursuant to Section 1.04.050 of Dublin Municipal Code, by filing a written notice of appeal with the City Clerk and specifying the reasons for the appeal. Notice of appeal must be filed with the City Clerk within 14 calendar days from the City's issuance of the civil penalty and in no even later than 20 calendar days. The City Clerk will set the date of the appeal hearing before the City Council and the appellant will be provided with at least 5 calendar days' notice of the time and place of the appeal hearing. Implementation This Ordinance would be in effect 30 days following the Second Reading. At the present time City Staff has been able to achieve compliance with the community standards for a majority of the properties that are in foreclosure. However, should Staff need to use the provisions of this Ordinance, there is a required 14 day notice that would be sent out to the violator. Should that occur, Staff has developed a procedure similar to Public Hearing Notices in that the City Council and City Manager would receive a copy of the Notice. RECOMMENDATION: Staff recommends that the City Council: 1} Receive Staff. Presentation; 2) Open public hearing; 3) Receive public testimony; 4) Close public hearing and deliberate; and 5) Waive reading and introduce Ordinance adding Chapter 5.66 to Title 5 (Public Welfare) of the Dublin Municipal Code Relating to Maintenance of Foreclosed Residential Properties. Page 3 of 3