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bk:11 /10/08 <br />RESOLUTION NO. 2008-XXX <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF <br />SANTA ANA ESTABLISHING A PROCEDURE TO ASSESS <br />CIVIL FINES AND PENALTIES FOR THE FAILURE TO <br />MAINTAIN VACANT RESIDENTIAL PROPERTY AFTER <br />FORECLOSURE <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS <br />FOLLOWS: <br />Section 1. The City Council of the City of Santa Ana hereby finds, determines <br />and declares as follows: <br />A. SB 1137, an emergency bill signed into law earlier this year, is designed to <br />address concerns relating to the increase of foreclosures of single family <br />homes throughout California. <br />B. One concern addressed by the Legislature in SB 1137 is the failure to <br />maintain vacant residential property by out-of-town financial institutions <br />who acquire title to homes through foreclosure. <br />C. In adopting SB 1137, legislative reports quoted findings that orphaned <br />homes quickly fall into disrepair, their deterioration sometimes hastened <br />by vandals who trash the interiors, lighting fires and ripping out wiring and <br />pipes to sell for scrap. In some communities, the Legislature found that <br />squatters or drug dealers may move in to these orphaned homes. <br />D. The Legislature also found that the impact of foreclosed homes goes far <br />beyond the defaulting homeowner, as neighbors and entire communities <br />confront a potential spreading blight. The Legislature found that vacant <br />residences deprive cities of tax revenue and can cost them thousands to <br />maintain. The Legislature quoted from a 2001 Temple University study <br />which found that in Philadelphia simply being within 150 feet of an <br />abandoned property knocked $7,600 off a home's value. <br />E. SB 1137 requires financial institutions who acquire homes through <br />foreclosure to maintain the vacant foreclosed residential properties in <br />conformance with City codes. <br />F. SB 1137, by adding section 2929.3 to the California Civil Code, gives <br />cities the power to impose civil fines and penalties of up to $1,000 per day <br />if the new owner, who acquired a home through foreclosure, fails to <br />80B-45 Resolution No. 2008-XXX <br />n...,..,. ~ ,.c ~ <br />