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HomeMy WebLinkAbout75D - PH FORECLOSURE REG PROGRAMREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 16, 2018 TITLE: PUBLIC HEARING - ORDINANCE AMENDING CERTAIN SECTIONS OF CHAPTER 8 OF THE SANTA ANA MUNICIPAL CODE (8-7,8-1982,8-1985,8-1986) CERTIFICATE OF OCCUPANCY AND FORECLOSURE REGISTRY PROGRAM {STRATEGIC PLAN NO. 5, 4} CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Adopt an ordinance amending Chapter 8 of the SAMC regarding Certificate of Occupancy and Foreclosure Registry Program. City Council adopted Ordinance NS -2927 on October 17, 2017 in order to establish a property registration process that identifies a contact person to address safety and aesthetic concerns to minimize the negative impact and conditions that occur as a result of vacancy, absentee ownership and the foreclosure process. To date, for fiscal year 2018/19, the City has received $61,950 in revenues for registration fees as part of this program and has identified potential blighted properties. In addition, it has provided property contact information which facilitates code enforcement efforts. The recommended language amendments clarify and encompasses full description of all registrable properties. Recommended changes to Section 8-7 broaden the scope of the Certificate of Occupancy approvals for any business and provides ability to revoke any Certificate of Occupancy operating in violation of its approved use and be addressed as a nuisance. This provides the language necessary to address and properly abate any potential public nuisance. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #5 — Community Health, Livability, Engagement and Sustainability; Objective #4 (Support neighborhood vitality and livability). 75D-1 Ordinance Amending Certain Sections of Chapter 8 of the Santa Ana Municipal Code October 16, 2018 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action. Minh Thai Executive Director Planning and Building Agency AN:rb SAFCA110-16-18W mend chapter 8— Code Enforcement Exhibit: 1. Ordinance 75D-2 ORDINANCE NO. NS-XXXX AN ORDINANCE AMENDING CERTAIN SECTIONS OF CHAPTER 8 OF THE CITY OF SANTA ANA MUNICIPAL CODE INCLUDING SECTION 8-7 (VIOLATION AND PENALTY) AND 8-9 (REVOCATION AND APPEAL) AND SECTIONS 8-1982, 8-1985, AND 8-1986 OF THE FORECLOSURE REGISTRY PROGRAM THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City Council desires to protect the public health, safety and welfare of the citizens of the City of Santa Ana and maintain a high quality of life for the citizens of the City through the maintenance of structures and properties in the City. B. The Council has a vested interest in protecting neighborhoods against decay caused by registrable property and concludes that it is in the best interests of the health, safety, and welfare of its citizens and residents to impose registration requirements of registrable property located within the City to discourage registrable property owners and mortgagees from allowing their properties to be abandoned, neglected or left unsupervised. C. The City Council adopted Ordinance No. NS -2927 on October 17, 2017, to establish a property registration process that identifies a contact person to address safety and aesthetic concerns to minimize the negative impact and conditions that occur as a result of vacancy, absentee ownership and the foreclosure process. D. The City Council finds that the implementation of the following clarifications will assist the City in protecting neighborhoods from the negative impact and conditions that occur as a result of vacancy, absentee ownership and lack of compliance with existing City regulations and laws. E. Recommended changes to Section 8-7 broaden the scope of the Certificate of Occupancy approvals for any business and provides ability to revoke any certificate of occupancy operating in violation of its approved use and be addressed as a nuisance. This provides the Ordinance No. NS-XXXX Page 1 75D-3 language necessary to address and properly abate any potential public nuisance. Section 2. Pursuant to the California Environmental Quality Act ("CEQA') and the state CEQA Guidelines, the adoption of this Ordinance is exempt from CEQA review pursuant to California Code of Regulations section 15061(b)(3), which is applicable if it can be seen with certainty that there is no possibility that the project may have a significant effect on the environment. As a result, a Notice of Exemption will be filed upon the adoption of this ordinance. Section 3. The City hereby amends Section 8-7 of the Santa Ana Municipal Code ("SAMC"), "Violation and penalty" as follows: Sec. 8-7. - Violation and penalty. (a) Except as otherwise provided in this chapter, any person violating any provision of this chapter shall be punished as provided in section 1-8 of this Code, and in addition, all procedures for the correction of illegal conditions shall apply. (b) Each separate day or any portion thereof during which any violation of this chapter occurs or continues shall be deemed to constitute a separate offense and, upon conviction thereof, shall be punishable as herein provided. (c) The issuance or granting of a permit, or approval based on plans, specifications or other data shall not be deemed or construed to be a permit for, or an approval of, any violation of any of the provisions of this chapter. Permits presuming to give authority to violate or cancel the provisions of this chapter shall be invalid, except insofar as the work or use which is authorized is lawful. (d) The issuance or granting of a permit, approval or certificate of occupancy based on submitted plans, specifications or other data shall not prevent the administrative authority from: (1) Thereafter requiring the correction of errors in such plans, specifications or other data; or 2) Ordering cessation of construction, maintenance, operation, or occupancy when it is in violation of this chapter or of any other ordinance; or (3) Revoking any permit, approval or certificate of occupancy or completion when issued in; or; (4) Suspending or revoking any permit, approval, certificate of occupancy or completion when issued on the basis of incorrect information supplied or in violation of any section of this Code. Ordinance No. NS-XXXX Page 2 75D-4 penalties pursuant to applicable law. The cost of such abatement may be recovered by the City as outlined in the provisions of this Code. Section 4. The City hereby amends Section 8-9 of the Santa Ana Municipal Code, 'Reserved" as follows: Sec. 8-9 — Reser-ved.Revocation of permit, approval, certificate of occupancy or completion and Appeal. A. Revocation. The Executive Director of the Planning and Building Agency or his/her designee may revoke a permit, approval, certificate of occupancy or completion, after notice and opportunity to be heard by the grantee, upon his/her determination that the permit, approval, certificate of occupancy or completion is being exercised in a manner contrary to the regulations of this chapter which are applicable to the use or activity permitted by such permit, approval, certificate of occupancy or completion. and Building Agency, and any grantee whose permit approval, certificate of occupancy or completion is revoked by said Director, may, within ten (10) days following such decision, appeal such decision pursuant to the provisions of Chapter 3 of this Code. Section 5. The City hereby amends Division 3 to Article 10 of Chapter 8 of the SAMC, entitled 'Registration and Maintenance of Abandoned and Defaulted Mortgage Properties" to read as follows: DIVISION 3. - REGISTRATION AND MAINTENANCE OF ABANDONED, VACANT, AND/OR -DEFAULTED MORTGAGE PROPERTIES Sec. 8-1982. - Purpose. It is the intent of the city council, through the adoption of this division, to establish a mechanism to protect neighborhoods from becoming blighted through the lack of maintenance and security of abandoned, defaulted and/or vacant properties; to establish an abandoned property registration program for such properties, and to set forth guidelines for the maintenance of such properties. Section 6. The City hereby amends Section 8-1985., 'Registration" as follows: Sec. 8-1985. - Registration. 75D-5 Ordinance No. NS-XXXX Page 3 A. Each beneficiary and trustee, who holds a deed of trust on a property located within the city, shall perform an inspection of the property that is security for the deed of trust upon default by the trustor prior to recording a notice of default or similar instrument with the Orange County Recorder's Office, and must comply with Civil Code section 2923.5, as amended from time to time. B. If such inspection shows that the property is abandoned, the owner, beneficiary or trustee shall, within ten (10) days of the inspection, register the property with the city's code enforcement division on forms provided by the city. C. If the property is occupied but distressed, the trustee and beneficiary or a designee shall inspect the property on a monthly basis until: 1. The trustor or another party remedies the default; or 2. The property is found to be vacant or shows evidence of vacancy, deemed abandoned and registered subject to subsection B. D. The registration required pursuant to subsection B. shall contain the identity of the beneficiary and trustee, the direct mailing address (no postal box address), email address and phone number of the beneficiary and trustee and, in the case of a corporate or out of area beneficiary or trustee, the local property management company, if any, responsible for the security, maintenance and marketing of the property in question. E. The registration pursuant to subsection B. shall be renewed annually F. This section shall also apply to properties that have been the subject of a foreclosure sale wherein title has been transferred to the beneficiary of a deed of trust involved in the foreclosure, and to any properties transferred under a deed in lieu of foreclosure. G. Properties subject to this chapter shall remain subject to the annual registration requirement, security and maintenance standards of this division as long as they remain vacant and/or abandoned. H. Any person, partnership, association, corporation, fiduciary or other legal entity that has registered a property under this chapter must make a written report to the city's code enforcement division of any change of information contained in the registration within ten (10) days of the change. I. If the mortgage on a registrable property is sold or transferred, the new mortgagee is subject to all the terms of this article and within five (5) days of the transfer must register the property and pay a registration fee in accordance with this article. Any previous unpaid annual registration fees are the responsibility of the new mortgagee or trustee and are due and payable with their initial registration. J. If the mortgagee owner of a foreclosed real property sells or transfers the property to a non -arm's length related person or entity, the transferee is subject to all the terms of this article and within five (5) days of the transfer must register the property and pay a registration fee in accordance with this article. Any previous unpaid Ordinance No. NS-XXXX Page 4 75D-6 annual registration fees are the responsibility of the new registrable property owner and are due and payable with their initial registration. K. As long as the property is registrable it shall be inspected by the mortgagee, or designee, monthly. If an inspection shows a change in the property's occupancy status the mortgagee shall, within ten (10) days of that inspection, update the occupancy status of the property registration. L. Mortgagees who have existing registerable property on the effective date of the ordinance from which this section is derived have thirty (30) calendar days from the effective date to register the property with the City, or its designee, on forms or other manner as directed, and indicate whether the property is vacant or occupied. Section 7. The City hereby amends Section 8-1986., "Maintenance requirements" as follows: Sec. 8-1986. - Maintenance requirements. It is declared a public nuisance for any person, partnership, association, corporation, fiduciary or other legal entity, that owns, leases, occupies, controls or manages any abandoned property to cause, permit, or maintain any property condition contrary to any provision of this chapter. The following maintenance standards shall apply to any abandened OF Ya registrable property: A. Any abandoned registrable property shall be maintained in compliance with the requirements of this chapter and Code Chapters 16, Chapter 41, the Uniform Code for the Abatement of Dangerous Buildings, International Property Maintenance Code and California Health and Safety Code section 17920.3. B. Abaadened Registrable property shall be kept free of weeds, dry brush, dead vegetation, excessive foliage growth, trash, junk, debris, building materials, any accumulation of newspaper, circular 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 the appearance that the property is abandoned. C. Abaadened Registrable property shall be maintained free of graffiti, tagging or similar marking in accordance with Article IV of Chapter 10 of this Code. Any removal or painting over of graffiti shall be with an exterior grade paint that matches the color of the exterior of the structure. D. Visible front and side yards shall be landscaped and maintained to the neighborhood standard. Landscaping includes, but is not limited to, grass, ground covers, bushes, shrubs, hedges or similar plantings, decorative rock or bark or artificial turf/sod designed specifically for residential installation and standards listed in section 41-609 "Landscape", and abide by the planning and public works division landscape standards. Landscaping does not include Ordinance No. NS-XXXX Page 5 75D-7 weeds, gravel, broken concrete, asphalt, plastic sheeting, mulch, indoor - outdoor carpet or any similar material. E. Pools and spas shall be kept in working order so that water remains clear and free of pollutants, mosquito larvae, and debris, or alternatively shall be drained and kept dry. In either case, properties with pools and/or spas must comply with the minimum security fencing requirements set forth in Article XIII of this chapter and minimum state standards, whichever is more restrictive. F. Adherence to this section does not relieve the beneficiary/trustee or property owner of obligations set forth in any covenants conditions and restrictions and/or homeowner's association rules and regulations which may apply to the property. An enforcement official may allow exceptions to the maintenance standards set forth in this section for abandeRed registrable property that is under construction and/or repair, that is diligently pursued for at least three (3) business days per week, and is undertaken in compliance with all applicable laws including but not limited to city permitting requirements. Section 8. If any section, subsection, sentence, clause, phrase•or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. Section 9. The Clerk of the Council shall certify the adoption of this ordinance and shall cause the same to be published as required by law. ADOPTED this day of 2018. APPROVED AS TO FORM Sonia R. Carvalho, City Attorney By: lzt��— Lisb Storck Assistant City Attorney Miguel A. Pulido Mayor 75D-8 Ordinance No. NS-XXXX Page 6 AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT:Councilmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS- to be the original ordinance adopted by the City Council of the City of Santa Ana on , 2018, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana 75D-9 Ordinance No. NS-XXXX Page 7 75D-10