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HomeMy WebLinkAbout11B - ORDINANCE FOR VACANT PROPFIRST READING ORDINANCE PRESENTED AT AUGUST 18, 2020 CITY ORDINANCE NO. NS-XXXX COUNCIL MEETING AN ORDINANCE OF THE CITY OF SANTA ANA AMENDING CHAPTER 8, ARTICLE X OF THE SANTA ANA MUNICIPAL CODE RELATING TO REGISTRATION AND MAINTENANCE OF ABANDONED, VACANT AND/OR DEFAULTED MORTGAGE PROPERTIES; ADDING HISTORIC PROPERTIES; PROVIDING FOR ADDITIONAL PROPERTY OWNER RESPONSIBILITIES, AS WELL AS ADDITIONAL ENFORCEMENT OPTIONS BY CITY; AND, PROVIDING FOR MONITORING PROGRAM BY CITY THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN 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; and B. Vacant and abandoned residential, commercial, industrial, and historic properties are a significant problem and can depreciate property values, reduce property tax revenue, attract crime, create the potential for a permanent loss of a historical resource, degrade the quality of life within the community and foster an unsafe and unhealthy environment for residents; and C. Property owners are often located outside of the area or state and do not provide regular monitoring or securing of their properties, leading to increased dereliction, trespassing, squatting, arson, and other crimes; and D. A number of historically significant properties have been abandoned or allowed to remain vacant without proper monitoring or security, leading to vandalism, squatting, arson, and destruction; and E. The Council has a vested interest in protecting neighborhoods against various dangers caused by vacant and abandoned properties and concludes that it is in the best interests of the health, safety, and welfare of its citizens and residents to ensure that all properties within the City are held to reasonable standards of maintenance and security; and F. The City Council desires to amend the City's Code in order to provide additional tools for staff to aggressively enforce the City's registration and maintenance program, requiring the posting of bonds by property owners and installation of fencing on all vacant properties; and G. The City Council finds that the implementation of the following changes and additions Ordinance No. NS-XXXX Page 1 of 16 11 B-1 will assist the City in protecting neighborhoods from the negative impacts and conditions that occur as a result of vacancy, absentee ownership and lack of compliance with City regulations and laws. SECTION 2. The adoption of this ordinance is exempt from the California Environmental Quality Act and a Notice of Exemption will be filed after this ordinance is adopted. SECTION 3. Division 3, Article X, of Chapter 8 of the Santa Ana Municipal Code is hereby amended and restated such that it reads 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 a property registration program for such properties, and to set forth guidelines for the maintenance of such properties. Sec. 8-1983. Definitions. For the purpose of this division the following terms, phrases and words, shall have the meaning set forth below: "Abandoned" means any real property that ism) vacant or shows evidence of vacancy, aa4 (4-2) is subject to a current notice of default and/or notice of trustee's sale, pending tax assessors lien sale and/or (2-�) is the subject of a foreclosure sale resulting in the acquisition of title by an interested beneficiary of a deed of trust, and/or (3-4) was conveyed to the current owner under a deed in lieu of foreclosure/sale. "Abatement order" means a notice of violation, notice and order, or administrative citation. As used in this chapter, the terms "abate" and "abatement" means action to repair, replace, remove, destroy, terminate, or otherwise remedy the condition or activity in question by such means and in such manner as is necessary in the interests of the health, safety or welfare of the public. (Section 17-4) "Accessible property" means real property that is accessible to the public, either, in general or through an open and unsecured door, window, gate fence, wall, etc. "Accessible structure" means a building or structure that is not secured or is open in such a way as to allow public or unauthorized access to the interior. "Administrative penalty payment due date" means the date that is the 1 Oth day after the issuance of an abatement order, a notice of violation issued pursuant to section 1- Ordinance No. NS-XXXX Page 2 of 16 11 B-2 21.7(1). "Agreement" means any written instrument that transfers or conveys title to residential or commercial feat property from one owner to another after a sale, trade, transfer or exchange. "Beneficiary" means a lender participating in a real property transaction that holds a secured interest in the real property in question identified in a deed of trust. "Boarded building" means a vacant building or portion of a vacant building whose doors and windows have been covered with plywood or other material for the purpose of Preventing entry into the vacant building by persons or animals. "Building" means any structure, including, but not limited to, any residential, commercial, industrial, or assembly structure, approved for occupancy on either a lot of record or within a single project approved by the city pursuant to the city's Code or applicable specific plan. "Buyer" means any person, partnership, association, corporation, fiduciary or other legal entity that agrees to transfer anything of value in consideration for real property via an agreement. "Chief Building Official" or "building official" means Building Safety Manager, Code Enforcement Manager, or their designees. "Commercial Property" means any improved real property, or portion thereof, designed or permitted to be used for commercial non-residential purposes, including buildings and structures located on such improved real property. This includes any real Property being offered under any circumstances for sale, trade, transfer, or exchange as "commercial." whether or not said property is legally permitted and zoned for such use. "Dangerous building" means any building or structure reasonably deemed by authorized city staff to represent a violation of any provision specified in the Uniform Code for the Abatement of Dangerous Buildings, International Property Maintenance Code, or California Health and Safety Code section 17920.3. "Days" means calendar days. "Deed of trust" means an instrument whereby an owner of real property, as trustor, transfers a secured interest in the real property in question to a third party trustee, as security for a loan issued in the context of a real property transaction. This definition applies to any and all subordinate deeds of trust; i.e., 2nd trust deed, 3rd trust deed, etc. "Deed in lieu of foreclosure" means a recorded instrument that transfers ownership of property from the trustor to the holder of a deed of trust upon consent of the beneficiary of the deed of trust. Ordinance No. NS-XXXX Page 3 of 16 11 B-3 "Default" means the material breach of, or failure to fulfill, a legal or contractual duty arising from or relating to a deed of trust. "Distressed" means any building, structure or real property that is subject to a current notice of default and/or notice of trustee's sale, pending tax assessors lien sale and/or any real property conveyed via a foreclosure sale resulting in the acquisition of title by an interested beneficiary of a deed of trust, and/or any real property conveyed via a deed in lieu of foreclosure/sale, regardless of vacancy. "Enforcement official" means the city manager, the building official, and/or any employee or agent of the city designated and/or charged with enforcing this Code, including but not limited to applicable codes adopted by reference therein. "Evidence of vacancy" means any real property condition that independently, or in the context of the totality of circumstances relevant to that real property would lead a reasonable enforcement official to believe that a property is vacant or occupied by a person without a legal right of occupancy. Such real property conditions include but are not limited to: overgrown or dead vegetation; accumulation of newspapers, circulars, flyers or mail; past due utility notices or disconnected utilities; accumulation of trash, junk or debris; the absence of window coverings such as curtains, blinds or shutters; the absence of furnishings or personal items consistent with residential habitation; and/or statements by neighbors, passersby, delivery agents, government employees that the property is vacant. "Foreclosure" means the legal process by which a mortgagee, or other lien holder, terminates 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. This definition shall include, but is not limited to, public notice of default, a deed -in -lieu of foreclosure, sale to the mortgagee or lien holder, certificate of title and all other processes, activities and actions, by whatever name, associated with the described process. The 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. "Historical/historic Building" means any structure, including, but not limited to, any residential, commercial, industrial, or assembly structure designated as having historical or architectural importance by inclusion in the city register of historical properties pursuant to Chapter 30 of the Santa Ana Municipal Code. "Industrial Property" means any improved real property, or portion thereof, designed or permitted to be used for industrial non-residential purposes, including buildings and structures located on such improved real property. This includes any real property being offered under any circumstances for sale, trade, transfer, or exchange as "industrial," whether or not said property is legally permitted and zoned for such use. "Local" means within forty (40) driving miles of the subject building, structure or real property. Ordinance No. NS-XXXX Page 4 of 16 11 B-4 "Neighborhood standard" means the condition of real property that prevails in and through the neighborhood where an abandoned building, structure or real property is located. When determining the neighborhood standard no abandoned or distressed building, structure or real property shall be considered. "Notice of default" means a recorded instrument that reflects and provides notice that a default has occurred under a deed of trust, and that the beneficiary intends to proceed with a trustee's sale. "Notice of trustee's sale" means a document prepared and recorded by the trustee that sets forth the day, date and time of the trustee's sale, describes the property to be sold, and gives an estimate for the unpaid debt on the deed of trust secured by the property. "Out of area" means in excess of forty (40) road or driving miles of the subject building, structure or real property. "Owner" means any person, partnership, association, corporation, fiduciary or other legal entity having a legal or equitable title or any interest in real property. "Owner of record" means any person shown as the owner of land on the last equalized assessment roll produced by the Orange County Recorder's Office. "Property" means any unimproved or improved real property designed or permitted to be used for commercial, industrial, residential or dwelling purposes, or portion thereof, including but not limited to building or structures located on said real property, regardless of condition. "Registrable property" means any real property located in the city, whether vacant or occupied, that is encumbered by a mortgage in default, is subject to an ongoing foreclosure action by the mortgagee or trustee, is subject to an application for a tax deed or pending tax assessor's lien sale, or 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. "Registrable property" shall also refer to vacant property, whether residential, commercial, industrial or historic, subject to the property registration guidelines discussed below. The designation of a "default/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 and any default on the mortgage has been cured. "Residential building" means any improved real property, or portion thereof, designed or permitted to be used for dwelling purposes, including buildings and structures located on such improved real property. This includes any real property being offered under any circumstances for sale, trade, transfer, or exchange as "residential," whether or not said property is legally permitted and zoned for such use. Ordinance No. NS-XXXX Page 5 of 16 11 B-5 "Secure" means such measures as may be directed by an enforcement official that assist in rendering real property inaccessible to unauthorized persons, including but not limited to repairing fences and walls, chaining/pad locking gates, the repairing or boarding of doors, windows or other openings. Such measures shall be implemented in conformance with all applicable standards of the United States Department of Housing and Urban Development. "Tax assessor's lien sale" means the sale, conducted by the Assessor of Orange County, of tax liens for delinquent taxes on the property. "Trustee" means any person, partnership, association, corporation, fiduciary or other legal entity holding a deed of trust securing an interest in real property for the benefit of the beneficiary. "Trustor" means any owner/borrower identified in a deed of trust, who transfers an interest in real property to a trustee as security for payment of a debt by that owner/borrower. "Vacancy/vacant" means any building, structure or real property that is unoccupied or occupied by a person without a legal right of occupancy. "Vacant building" means a building where at least thirty-five (35%) percent of the total floor area within the building is not occupied. "Vacant shopping center/industrial complex" means a shopping center or industrial complex on a single property containing one or more buildings where fifty (50%) percent of the gross leasable area is not occupied. Sec. 8-1984. - Duty to record instrument for property transfer. In order to ensure proper noticing regarding registration of abandoned, defaulted and/or vacant properties pursuant to this Article, within ten (10) days of a property transaction involving a change in the identity of an owner or the owner of record, or alternatively a transfer/assignment of a loan or deed of trust secured by such residential, industrial or commercial property, each beneficiary and trustee engaged in said transaction or transfer/assignment shall record, with the Orange County Recorder's Office, an instrument evidencing such transaction, transfer or assignment. This instrument shall reflect the identity, mailing address and telephone number of the trustee and beneficiary responsible for receiving payments associated with the loan or deed of trust in question. This duty/obligation shall be joint and several among and between all trustees and beneficiaries and their respective agents. Sec. 8-1985. - Registration. 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 Ordinance No. NS-XXXX Page 6 of 16 11 B-6 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 vacant or 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 Ordinance No. NS-XXXX Page 7 of 16 11 B-7 the property and pay a registration fee in accordance with this article. Any previous unpaid 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. 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. 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 vacant or 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 registrable property, including vacant or abandoned properties subject to registration under this Division: A. Any 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. 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. 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 weeds, gravel, broken concrete, asphalt, plastic sheeting, mulch, indoor -outdoor carpet or any similar material. Ordinance No. NS-XXXX Page 8 of 16 11 B-8 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. G. An enforcement official may allow exceptions to the maintenance standards set forth in this section for 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. H. No person. firm. partnership. corporation or other entitv shall allow a residential commercial, historical, or industrial building designed for human use or occupancy to stand vacant for more than forty-five (45) days, unless the owner establishes by substantial evidence to the reasonable satisfaction of the chief building official that one of the following applies: (1) The building is the subject of an active building permit for repair or rehabilitation and the owner is progressing diligently to complete the repair or rehabilitation: (2) The building meets all applicable codes, is actively maintained in accordance with all city ordinances, is ready for occupancy, and is actively being offered for sale, lease, or rent. The owner of anv boarded buildina. whether boarded by voluntary action of the owner or as a result of enforcement activity by the city, shall cause the boarded building to be rehabilitated for occupancy within ninety (90) days afterthe building is boarded and shall comply with the provisions of subsections A through H of this section, as well as all other provisions of the City Code. J. 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 building or property subject to this chapter to cause, permit, or maintain such building or property in violation of subsections A through I of this section. K. Within thirty (30) days after a property becomes a vacant building as defined herein, the owner of a vacant residential, commercial, historical, or industrial building shall cause said building to be registered as a vacant building pursuant to the provisions of section 8-1985 of this chapter and shall pay the registration fee required per section 8-1989. Further, the owner of said vacant building shall comply with all applicable provisions of this Code with respect to property maintenance, nuisance abatement, local property management requirements and monitoring. Ordinance No. NS-XXXX Page 9 of 16 11 B-9 Sec. 8-1987. Security Requirements. A. Abandoned and vacant properties shall be secured so as not to be accessible to unauthorized persons. B. Securing of vacant or abandoned property includes but is not limited to closing and locking of windows, doors (walk-through, sliding and garage), gates and any other opening that may allow access to the interior of the property and or structure(s). In the case of broken windows securing means re -glazing or boarding the window. If deemed necessary by the Code Enforcement Manager, securing of vacant or abandoned property may require the provision of security guard services. Such services shall be of sufficient duration and frequency to ensure that the property remains secure and no unauthorized persons may gain entry. C. If the vacant or abandoned property is owned by a corporation and/or out of area beneficiary/trustee/owner, a local property management company shall be contracted to perform weekly inspections to verify that the abandoned property is maintained in accordance with the requirements of this section, and any other applicable laws. D. The property shall be posted with the name and 24-hour contact phone number of the local property management company. The posting shall be no less than 18" x 24", shall be of a font that is legible from a distance of forty-five (45) feet, and shall contain the following verbiage: "THIS PROPERTY MANAGED BY ," and "TO REPORT PROBLEMS OR CONCERNS CALL (name and phone number)." E. The posting shall be placed on the interior of a window facing the street to the front of the property so it is visible from the street, or secured to the exterior of the building/structure facing the street of the front of the property so it is visible from the street. If no such area exists, the posting shall be on a stake of sufficient size to support the posting, in a location that is visible from the street to the front of the property, and to the extent possible, not readily subject to potential vandalism. Exterior posting must be constructed of, and printed with weather resistant materials. F. The local property management company shall inspect the property on a weekly basis to determine if the property is in compliance with the requirements of this division. If the property management company determines the property is not in compliance, it is the company's responsibility to bring the property into compliance. G. The duties and obligations specified in this section shall be joint and several among and between all trustees and beneficiaries and their respective agents. Ordinance No. NS-XXXX Page 10 of 16 11 B-10 H. Bonding and Fencing Requirements for Vacant Buildings. (1) Whenever a building remains vacant for a period of ninety (90) days or more, in addition to the other requirements of this chapter the owner, beneficiary or trustee, shall post with the city a bond or similar security in an amount equal to three (3) months estimated costs of blight prevention and security activities, as estimated by the Chief Building Official or Code Enforcement Manager. (2) Whenever a building remains vacant for a period of ninety (90) days or more, in addition to the other requirements of this chapter, the owner, beneficiary or trustee shall cause to be installed a minimum six foot (6) high chain -link fence adjacent to the property boundaries, or other alternative fencing acceptable to the Chief Building Official or Code Enforcement Manager that is adequate to protect the public health, safety and welfare, unless the City officials determine that the installation of such fencing will be detrimental to the public safety and welfare. Any fencing required under this section may additionally require screening if deemed necessary in order to protect the safety, streetscape and overall appearance of the site. The Chief Building Official and Code Enforcement Manager may promulgate additional fencing standards for vacant properties consistent with this section. Sec. 8-1988. Additional authority; Monitoring Program. A. In addition to the enforcement remedies established in this division, the city shall have the authority to require the beneficiary, trustee, owner or owner of record of any property affected by this section, to implement additional maintenance and/or security measures including but not limited to, securing any and all doors, windows or other openings, installing additional security lighting, increasing on - site inspection frequency, employment of an on -site security guard or other measures as may be reasonably required to secure and reduce the visual decline of the property. B. Property Monitoring Program and Procedures. (1) Purpose. Vacant buildings are a major cause and source of blight in residential and non-residential neighborhoods, especially when the owner of the building fails to maintain and manage the building. Vacant buildings often attract squatters and criminals, including drug users. Use of vacant buildings by squatters and criminals creates a risk of fire for the vacant buildings and adjacent properties. Vacant properties are often used as dumping grounds for Munk and debris and are often overgrown with weeds and grass. Vacant buildings which are boarded up and other long-term vacancies discourage economic development and retard appreciation of property values. In order to combat these issues, the focus of the monitoring program shall be: (a) To identify buildings that become vacant; (b) To order vacant buildings that are open and accessible to be secured against unlawful entry pursuant to City codes, Ordinance No. NS-XXXX Page 11 of 16 11B-11 including the building code, or other applicable law: (c) To initiate proceedings against the owner of any vacant building found to be substandard as defined in this chapter or a nuisance under any other provision of this code: and (d) To maintain surveillance over vacant buildings so that timely enforcement proceedings are commenced in the event a building becomes substandard or a nuisance. (2) Authority. The Chief Building Official shall be responsible for administering a program for identifying and monitoring the maintenance of all vacant buildings in the city. The program shall be documented and regularly updated. The program shall be available for public review. (3) Fee Imposed. There is imposed upon every owner of a vacant building monitored pursuant to this chapter, an annual vacant building monitoring fee in an initial amount as the city council may establish by resolution, provided that the fee shall not exceed the estimated reasonable cost of monitoring the vacant building. The fee shall be payable as to any building, residential or non- residential, which: (a) Is boarded up by voluntary action of the owner or as the result of enforcement activities by the city: or (b) Is vacant for more than ninety (90) days for any reason. 4) Fee Waiver. The vacant buildina monitorina fee shall be waived upon a showing by the owner that: (a) The owner has obtained a building permit and is progressing diligently to repair the premises for occupancy: or (b) The building meets all applicable codes and is actively being offered for sale, lease, or rent: or (c) Imposition of the fee would impose a substantial economic hardship on the owner or would hinder the rehabilitation of the building. (5) Procedure. The vacant building monitoring fee shall be billed to the owner of the property and mailed to the owner's address as set forth on the last equalized assessment roll of the Orange County Assessor. Any owner billed may apply for a waiver on the grounds set forth in subsection (4) of this section by submitting a written statement of the grounds for the waiver to the Chief Building Official within thirty (30) days after the billing is mailed to the owner. The owner shall provide substantial evidence in support of the owner's statement of the grounds for the waiver. The Chief Building Official shall review the written statement and all related evidence and may contact the owner to discuss the application for waiver. The Chief Building Official shall prepare a written decision which shall be mailed to the owner and shall set forth the reasons for the decision. (6) Appeal. Any owner aggrieved by the decision of the Chief Building Official relating to an application for waiver may appeal the decision pursuant to section 8-1991 within fifteen (15) days of the mailing of the decision. Ordinance No. NS-XXXX Page 12 of 16 11 B-12 (7) Non-payment of fees — special assessment. If the fee is not paid within sixty (60) days after billing, or within sixty (60) days after the decision of the Chief Building Official or appellate hearing officer, they may then be declared a special assessment against that parcel as provided in California Government Code section 28773.5. Such special assessment shall be collected at the same time and in the same manner as ordinary city taxes are collected and shall be subject to the same penalties and the same procedures and sale in case of delinquency as provided for ordinary city taxes. The city shall retain the additional and independent right to recover its costs by way of civil action against the owner and person in possession or control, jointly or severally. (8) Non-payment of fees — lien. Alternatively, if the fee is not paid within sixty (60) days, the city manager may also cause a notice of lien to be recorded. The notice shall, at a minimum, identify the record owner or possessor of the property, set forth the last known address of the record owner or possessor, a description of the real property subject to the lien, and the amount of the fee. Sec. 8-1989. - Fees. An annual non-refundable foreclosed, vacant and/or abandoned property registration fee shall be paid to city at the time of registration, annually thereafter on January 1 st each year and must be received no later than January 31 of the year due. If the foreclosed, vacant and/or abandoned property is sold or transferred within a calendar year to a new bank/owner it will need to register the foreclosed, vacant and/or abandoned property; the annual fee is not transferrable. The fee for registering and re -registering a foreclosed, vacant and/or abandoned property shall be set, from time to time, by resolution of the city council. The amount of the fee shall not exceed the cost of administering the provisions of this chapter. Additional hourly inspection fees as set forth in the city's miscellaneous fee resolution may be levied on a property for staff time to inspect and enforce the provision of this Code when a complaint has been filed on a property subject to this article. Sec. 8-1990. - Enforcement. A. Any violation of this division shall be treated as a strict liability offense; a violation shall be deemed to have occurred regardless of a violator's intent. B. Any person, partnership, association, corporation, fiduciary or other legal entity, that owns, leases, occupies, controls or manages any abandoned property and causes, permits, or maintains a violation of the chapter as to that property, shall be guilty of a misdemeanor, and upon conviction thereof, may be punished as provided in section 1-8. C. This section is intended to be cumulative to, and not in place of, other rights and remedies available to the city pursuant to this Code. As an alternative to the violation and penalty specified in this section, the city attorney or enforcement official may pursue any other right or remedy permitted by this Code, including, Ordinance No. NS-XXXX Page 13 of 16 11 B-13 but not limited to, commencement of any civil action, or administrative action to abate the condition of a property as a public nuisance pursuant to sections 1-21 through 1-21.9. D. If an enforcement officer determines that the owner of abandoned property has failed to maintain that property as obligated under California Civil Code Section 2929.3 and in accordance with this chapter, the city may impose a civil fine against the owner of up to one thousand dollars ($1,000.00) per day, or an amount set by the city's miscellaneous fee schedule as amended from time to time, for each day that the owner fails to maintain the property commencing on the day following the expiration of the period to remedy the violation as set forth in the notice provided pursuant to subsection E. E. If the city chooses to impose a fine pursuant to subsection D., it shall give notice of the alleged violation to the owner. The notice shall include a description of the conditions that gave rise to the violation, and notice of the city's intent to assess a civil fine if action to correct the violation is not commenced within a period of not less than fourteen (14) days and completed within a period of not less than thirty (30) days. The notice shall be mailed to the name and address provided in the deed or other instrument for mailing future tax statements, or, if none, to the return address provided on the deed or other instrument. F. The city shall provide a period of not less than thirty (30) days for the legal owner to remedy the violation prior to imposing a civil fine. Notwithstanding the foregoing, the city may provide less than thirty (30) days' notice to remedy a condition before imposing a civil fine if the entity determines that a specific condition of the property threatens public health or safety and provided that notice of that determination and time for compliance is given. G. The city shall provide an owner who wishes to contest any fines imposed pursuant to subsection D. a hearing and opportunity to be heard in accordance with the procedures for administrative citations contained in chapter 1.14. H. Payment of the administrative and civil penalties shall not excuse the failure to correct the violation nor shall it bar further enforcement action. Sec. 8-1991. -Appeals. Any person aggrieved by any of the requirements of this division may appeal a determination made hereunder in the manner specified with respect to appeals under section 1-21.8 through 1-21.9 or chapter 3. Sec. 8-1992. - Joint and several liability. The duties/obligations specified in this division shall be joint and several among and between all trustees and beneficiaries and their respective agents. Ordinance No. NS-XXXX Page 14 of 16 11 B-14 Secs. 8-1993-8-1999. - Reserved. SECTION 4. Severability. 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 5. Effective Date. This ordinance shall become effective thirty (30) days after its adoption. ADOPTED this day of APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: ✓& Kyle ellesen Assiglant City Attorney AYES Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers 2020. Miguel A. Pulido Mayor Ordinance No. NS-XXXX Page 15 of 16 11B-15 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, 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, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Ordinance No. NS-XXXX Page 16 of 16 Daisy Gomez Clerk of the Council City of Santa Ana 11 B-16 SECOND READING ORDINANCE STRIKETHROUGH VERSION WITH MODIFICATIONS MADE AT ORDINANCE NO. NS-XXXX AUGUST 18, 2020 CITY COUNCIL MEETING AN ORDINANCE OF THE CITY OF SANTA ANA AMENDING CHAPTER 8, ARTICLE X OF THE SANTA ANA MUNICIPAL CODE RELATING TO REGISTRATION AND MAINTENANCE OF ABANDONED, VACANT AND/OR DEFAULTED MORTGAGE PROPERTIES; ADDING HISTORIC PROPERTIES; PROVIDING FOR ADDITIONAL PROPERTY OWNER RESPONSIBILITIES, AS WELL AS ADDITIONAL ENFORCEMENT OPTIONS BY CITY; AND, PROVIDING FOR MONITORING PROGRAM BY CITY THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN 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; and B. Vacant and abandoned residential, commercial, industrial, and historic properties are a significant problem and can depreciate property values, reduce property tax revenue, attract crime, create the potential for a permanent loss of a historical resource, degrade the quality of life within the community and foster an unsafe and unhealthy environment for residents; and C. Property owners are often located outside of the area or state and do not provide regular monitoring or securing of their properties, leading to increased dereliction, trespassing, squatting, arson, and other crimes; and D. A number of historically significant properties have been abandoned or allowed to remain vacant without proper monitoring or security, leading to vandalism, squatting, arson, and destruction; and E. The Council has a vested interest in protecting neighborhoods against various dangers caused by vacant and abandoned properties and concludes that it is in the best interests of the health, safety, and welfare of its citizens and residents to ensure that all properties within the City are held to reasonable standards of maintenance and security; and F. The City Council desires to amend the City's Code in order to provide additional tools for staff to aggressively enforce the City's registration and maintenance program, requiring the posting of bonds by property owners and installation of fencing on all vacant properties; and G. The City Council finds that the implementation of the following changes and additions Ordinance No. NS-XXXX Page 1 of 16 11 B-17 will assist the City in protecting neighborhoods from the negative impacts and conditions that occur as a result of vacancy, absentee ownership and lack of compliance with City regulations and laws. SECTION 2. The adoption of this ordinance is exempt from the California Environmental Quality Act and a Notice of Exemption will be filed after this ordinance is adopted. SECTION 3. Division 3, Article X, of Chapter 8 of the Santa Ana Municipal Code is hereby amended and restated such that it reads 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 a property registration program for such properties, and to set forth guidelines for the maintenance of such properties. Sec. 8-1983. Definitions. For the purpose of this division the following terms, phrases and words, shall have the meaning set forth below: "Abandoned" means any real property that is: (1) vacant or shows evidence of vacancy, (2) is subject to a current notice of default and/or notice of trustee's sale, pending tax assessors lien sale and/or (3) is the subject of a foreclosure sale resulting in the acquisition of title by an interested beneficiary of a deed of trust, and/or (4) was conveyed to the current owner under a deed in lieu of foreclosure/sale. "Abatement order" means a notice of violation, notice and order, or administrative citation. As used in this chapter, the terms "abate" and "abatement" means action to repair, replace, remove, destroy, terminate, or otherwise remedy the condition or activity in question by such means and in such manner as is necessary in the interests of the health, safety or welfare of the public. (Section 17-4) "Accessible property" means real property that is accessible to the public, either, in general or through an open and unsecured door, window, gate fence, wall, etc. "Accessible structure" means a building or structure that is not secured or is open in such a way as to allow public or unauthorized access to the interior. "Administrative penalty payment due date" means the date that is the 10th day after the issuance of an abatement order, a notice of violation issued pursuant to section 1- Ordinance No. NS-XXXX Page 2 of 16 11 B-18 21.7(1). "Agreement" means any written instrument that transfers or conveys title to residential or commercial property from one owner to another after a sale, trade, transfer or exchange. "Beneficiary" means a lender participating in a real property transaction that holds a secured interest in the real property in question identified in a deed of trust. "Boarded building" means a vacant building or portion of a vacant building whose doors and windows have been covered with plywood or other material for the purpose of preventing entry into the vacant building by persons or animals. "Building" means any structure, including, but not limited to, any residential, commercial, industrial, or assembly structure, approved for occupancy on either a lot of record or within a single project approved by the city pursuant to the city's Code or applicable specific plan. "Buyer" means any person, partnership, association, corporation, fiduciary or other legal entity that agrees to transfer anything of value in consideration for real property via an agreement. "Chief Building Official" or "building official" means Building Safety Manager, Code Enforcement Manager, or their designees. "Commercial Property" means any improved real property, or portion thereof, designed or permitted to be used for commercial non-residential purposes, including buildings and structures located on such improved real property. This includes any real property being offered under any circumstances for sale, trade, transfer, or exchange as "commercial," whether or not said property is legally permitted and zoned for such use. "Dangerous building" means any building or structure reasonably deemed by authorized city staff to represent a violation of any provision specified in the Uniform Code for the Abatement of Dangerous Buildings, International Property Maintenance Code, or California Health and Safety Code section 17920.3. "Days" means calendar days. "Deed of trust" means an instrument whereby an owner of real property, as trustor, transfers a secured interest in the real property in question to a third party trustee, as security for a loan issued in the context of a real property transaction. This definition applies to any and all subordinate deeds of trust; i.e., 2nd trust deed, 3rd trust deed, etc. "Deed in lieu of foreclosure" means a recorded instrument that transfers ownership of property from the trustor to the holder of a deed of trust upon consent of the beneficiary of the deed of trust. Ordinance No. NS-XXXX Page 3 of 16 11 B-19 "Default" means the material breach of, or failure to fulfill, a legal or contractual duty arising from or relating to a deed of trust. "Distressed" means any building, structure or real property that is subject to a current notice of default and/or notice of trustee's sale, pending tax assessors lien sale and/or any real property conveyed via a foreclosure sale resulting in the acquisition of title by an interested beneficiary of a deed of trust, and/or any real property conveyed via a deed in lieu of foreclosure/sale, regardless of vacancy. "Enforcement official" means the city manager, the building official, and/or any employee or agent of the city designated and/or charged with enforcing this Code, including but not limited to applicable codes adopted by reference therein. "Evidence of vacancy" means any real property condition that independently, or in the context of the totality of circumstances relevant to that real property would lead a reasonable enforcement official to believe that a property is vacant or occupied by a person without a legal right of occupancy. Such real property conditions include but are not limited to: overgrown or dead vegetation; accumulation of newspapers, circulars, flyers or mail; past due utility notices or disconnected utilities; accumulation of trash, junk or debris; the absence of window coverings such as curtains, blinds or shutters; the absence of furnishings or personal items consistent with residential habitation; and/or statements by neighbors, passersby, delivery agents, government employees that the property is vacant. "Foreclosure" means the legal process by which a mortgagee, or other lien holder, terminates 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. This definition shall include, but is not limited to, public notice of default, a deed -in -lieu of foreclosure, sale to the mortgagee or lien holder, certificate of title and all other processes, activities and actions, by whatever name, associated with the described process. The 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. "Historical/historic Building" means any structure, including, but not limited to, any residential, commercial, industrial, or assembly structure designated as having historical or architectural importance by inclusion in the city register of historical properties pursuant to Chapter 30 of the Santa Ana Municipal Code. "Industrial Property" means any improved real property, or portion thereof, designed or permitted to be used for industrial non-residential purposes, including buildings and structures located on such improved real property. This includes any real property being offered under any circumstances for sale, trade, transfer, or exchange as "industrial," whether or not said property is legally permitted and zoned for such use. "Local" means within forty (40) driving miles of the subject building, structure or real property. Ordinance No. NS-XXXX Page 4 of 16 11 B-20 "Neighborhood standard" means the condition of real property that prevails in and through the neighborhood where an abandoned building, structure or real property is located. When determining the neighborhood standard no abandoned or distressed building, structure or real property shall be considered. "Notice of default" means a recorded instrument that reflects and provides notice that a default has occurred under a deed of trust, and that the beneficiary intends to proceed with a trustee's sale. "Notice of trustee's sale" means a document prepared and recorded by the trustee that sets forth the day, date and time of the trustee's sale, describes the property to be sold, and gives an estimate for the unpaid debt on the deed of trust secured by the property. "Out of area" means in excess of forty (40) road or driving miles of the subject building, structure or real property. "Owner" means any person, partnership, association, corporation, fiduciary or other legal entity having a legal or equitable title or any interest in real property. "Owner of record" means any person shown as the owner of land on the last equalized assessment roll produced by the Orange County Recorder's Office. "Property" means any unimproved or improved real property designed or permitted to be used for commercial, industrial, residential or dwelling purposes, or portion thereof, including but not limited to building or structures located on said real property, regardless of condition. "Registrable property" means any real property located in the city, whether vacant or occupied, that is encumbered by a mortgage in default, is subject to an ongoing foreclosure action by the mortgagee or trustee, is subject to an application for a tax deed or pending tax assessor's lien sale, or 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. "Registrable property" shall also refer to vacant property, whether residential, commercial, industrial or historic, subject to the property registration guidelines discussed below. The designation of a "default/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 and any default on the mortgage has been cured. "Residential building" means any improved real property, or portion thereof, designed or permitted to be used for dwelling purposes, including buildings and structures located on such improved real property. This includes any real property being offered under any circumstances for sale, trade, transfer, or exchange as "residential," whether or not said property is legally permitted and zoned for such use. Ordinance No. NS-XXXX Page 5 of 16 11 B-21 "Secure" means such measures as may be directed by an enforcement official that assist in rendering real property inaccessible to unauthorized persons, including but not limited to repairing fences and walls, chaining/pad locking gates, the repairing or boarding of doors, windows or other openings. Such measures shall be implemented in conformance with all applicable standards of the United States Department of Housing and Urban Development. "Tax assessor's lien sale" means the sale, conducted by the Assessor of Orange County, of tax liens for delinquent taxes on the property. "Trustee" means any person, partnership, association, corporation, fiduciary or other legal entity holding a deed of trust securing an interest in real property for the benefit of the beneficiary. "Trustor" means any owner/borrower identified in a deed of trust, who transfers an interest in real property to a trustee as security for payment of a debt by that owner/borrower. "Vacancy/vacant" means any building, structure or real property that is unoccupied or occupied by a person without a legal right of occupancy. "Vacant building" means a building where at least thirty-five (35%) percent of the total floor area within the building is not occupied. "Vacant shopping center/industrial complex" means a shopping center or industrial complex on a single property containing one or more buildings where fifty (50%) percent of the gross leasable area is not occupied. Sec. 8-1984. - Duty to record instrument for property transfer. In order to ensure proper noticing regarding registration of abandoned, defaulted and/or vacant properties pursuant to this Article, within ten (10) days of a property transaction involving a change in the identity of an owner or the owner of record, or alternatively a transfer/assignment of a loan or deed of trust secured by such residential, industrial or commercial property, each beneficiary and trustee engaged in said transaction or transfer/assignment shall record, with the Orange County Recorder's Office, an instrument evidencing such transaction, transfer or assignment. This instrument shall reflect the identity, mailing address and telephone number of the trustee and beneficiary responsible for receiving payments associated with the loan or deed of trust in question. This duty/obligation shall be joint and several among and between all trustees and beneficiaries and their respective agents. Sec. 8-1985. - Registration. 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 Ordinance No. NS-XXXX Page 6 of 16 11 B-22 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 vacant or 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 Ordinance No. NS-XXXX Page 7 of 16 11 B-23 the property and pay a registration fee in accordance with this article. Any previous unpaid 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. 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. 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 vacant or 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 registrable property, including vacant or abandoned properties subject to registration under this Division: A. Any 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. 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. 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 frontaad side yards shall be landscaped and continuously maintained to by proper pruning, mowing of lawns, weeding, removal of litter, fertilizing, replacement of plants and decorative materials when necessary, and the regular watering of plants. 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 Ordinance No. NS-XXXX Page 8 of 16 11 B-24 not include 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. G. An enforcement official may allow exceptions to the maintenance standards set forth in this section for registrable property that has submitted a development application with the City and is undergoing the approval process or 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. H. No person, firm, partnership, corporation or other entity shall allow a residential, commercial, historical, or industrial building designed for human use or occupancy to stand vacant for more than forty-five (45) days, unless the owner establishes by substantial evidence to the reasonable satisfaction of the chief building official that one of the following applies: (1) The building is the subject of an active building permit for repair or rehabilitation and the owner is progressing diligently to complete the repair or rehabilitation; (2) The building meets all applicable codes, is actively maintained in accordance with all city ordinances, is ready for occupancy, and is actively being offered for sale, lease, or rent. The owner of any boarded building, whether boarded by voluntary action of the owner or as a result of enforcement activity by the city, shall cause the boarded building to be rehabilitated for occupancy within ninety (90) days afterthe building is boarded and shall comply with the provisions of subsections A through H of this section, as well as all other provisions of the City Code. J. 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 building or property subject to this chapter to cause, permit, or maintain such building or property in violation of subsections A through I of this section. K. Within thirty (30) days after a property becomes a vacant building as defined herein, the owner of a vacant residential, commercial, historical, or industrial building shall cause said building to be registered as a vacant building pursuant to the provisions of section 8-1985 of this chapter and shall pay the registration fee required per section 8-1989. Further, the owner of said vacant building shall Ordinance No. NS-XXXX Page 9 of 16 11 B-25 comply with all applicable provisions of this Code with respect to property maintenance, nuisance abatement, local property management requirements and monitoring. Sec. 8-1987. Security Requirements. A. Abandoned and vacant properties shall be secured so as not to be accessible to unauthorized persons. B. Securing of vacant or abandoned property includes but is not limited to closing and locking of windows, doors (walk-through, sliding and garage), gates and any other opening that may allow access to the interior of the property and or structure(s). In the case of broken windows securing means re -glazing or boarding the window. If deemed necessary by the Code Enforcement Manager, securing of vacant or abandoned property may require the provision of on -site security guard services. Such services shall be of sufficient duration and frequency to ensure that the property remains secure and no unauthorized persons may gain entry. C. If the vacant or abandoned property is owned by a corporation and/or out of area beneficiary/trustee/owner, a local property management company shall be contracted to perform weekly inspections to verify that the abandoned property is maintained in accordance with the requirements of this section, and any other applicable laws. D. The property shall be posted with the name and 24-hour contact phone number of the local property management company. The posting shall be no less than 18" x 24", shall be of a font that is legible from a distance of forty-five (45) feet, and shall contain the following verbiage: "THIS PROPERTY MANAGED BY ," and "TO REPORT PROBLEMS OR CONCERNS CALL (name and phone number)." E. The posting shall be placed on the interior of a window facing the street to the front of the property so it is visible from the street, or secured to the exterior of the building/structure facing the street of the front of the property so it is visible from the street. If no such area exists, the posting shall be on a stake of sufficient size to support the posting, in a location that is visible from the street to the front of the property, and to the extent possible, not readily subject to potential vandalism. Exterior posting must be constructed of, and printed with weather resistant materials. F. The local property management company shall inspect the property on a weekly basis, or more frequently, to determine if the property is in compliance with the requirements of this division. If the pF9peFty FnaRagemeRt GempaRy deteFmiRe6 it is determined that the property is not in compliance, it is the company's responsibility to bring the property into compliance. G. The duties and obligations specified in this section shall be joint and several Ordinance No. NS-XXXX Page 10 of 16 11 B-26 among and between all trustees and beneficiaries and their respective agents. H. Bonding and Fencing Requirements for Vacant Buildings. (1) Whenever a building remains vacant for a period of ninety (90) days or more, in addition to the other requirements of this chapter the owner, beneficiary or trustee, shall post with the city a bond or similar security in an amount equal to three (3) months estimated costs of blight prevention and security activities, as estimated by the Chief Building Official or Code Enforcement Manager. (2) Whenever a building remains vacant for a period of ninety (90) days or more, in addition to the other requirements of this chapter, the owner, beneficiary or trustee shall cause to be installed a minimum six foot (6') high chain -link fence adjacent to the property boundaries, or other alternative fencing acceptable to the Chief Building Official or Code Enforcement Manager that is adequate to protect the public health, safety and welfare, unless the City officials determine that the installation of such fencing will be detrimental to the public safety and welfare. Any fencing required under this section may additionally require screening if deemed necessary in order to protect the safety, streetscape and overall appearance of the site. The Chief Building Official and Code Enforcement Manager may promulgate additional fencing standards for vacant properties consistent with this section. Sec. 8-1988. Additional authority; Monitoring Program. A. In addition to the enforcement remedies established in this division, the city shall have the authority to require the beneficiary, trustee, owner or owner of record of any property affected by this section, to implement additional maintenance and/or security measures including but not limited to, securing any and all doors, windows or other openings, installing additional security lighting, increasing on - site inspection frequency, employment of an on -site security guard or other measures as may be reasonably required to secure and reduce the visual decline of the property. B. Property Monitoring Program and Procedures. (1) Purpose. Vacant buildings are a major cause and source of blight in residential and non-residential neighborhoods, especially when the owner of the building fails to maintain and manage the building. Vacant buildings often attract squatters and criminals, including drug users. Use of vacant buildings by squatters and criminals creates a risk of fire for the vacant buildings and adjacent properties. Vacant properties are often used as dumping grounds for junk and debris and are often overgrown with weeds and grass. Vacant buildings which are boarded up and other long-term vacancies discourage economic development and retard appreciation of property values. In order to combat these issues, the focus of the monitoring program shall be: (a) Ordinance No. NS-XXXX Page 11 of 16 11 B-27 To identify buildings that become vacant; (b) To order vacant buildings that are open and accessible to be secured against unlawful entry pursuant to City codes, including the building code, or other applicable law; (c) To initiate proceedings against the owner of any vacant building found to be substandard as defined in this chapter or a nuisance under any other provision of this code; and (d) To maintain surveillance over vacant buildings so that timely enforcement proceedings are commenced in the event a building becomes substandard or a nuisance. (2) Authority. The Chief Building Official shall be responsible for administering a program for identifying and monitoring the maintenance of all vacant buildings in the city. The program shall be documented and regularly updated. The program shall be available for public review. (3) Fee Imposed. There is imposed upon every owner of a vacant building monitored pursuant to this chapter, an annual vacant building monitoring fee in an initial amount as the city council may establish by resolution, provided that the fee shall not exceed the estimated reasonable cost of monitoring the vacant building. The fee shall be payable as to any building, residential or non- residential, which: (a) Is boarded up by voluntary action of the owner or as the result of enforcement activities by the city; or (b) Is vacant for more than ninety (90) days for any reason. (4) Fee Waiver. The vacant building monitoring fee shall be waived upon a showing by the owner that: (a) The owner has obtained a building permit and is progressing diligently to repair the premises for occupancy; or (b) The building meets all applicable codes and is actively being offered for sale, lease, or rent; or (c) Imposition of the fee would impose a substantial economic hardship on the owner or would hinder the rehabilitation of the building. (5) Procedure. The vacant building monitoring fee shall be billed to the owner of the property and mailed to the owner's address as set forth on the last equalized assessment roll of the Orange County Assessor. Any owner billed may apply for a waiver on the grounds set forth in subsection (4) of this section by submitting a written statement of the grounds for the waiver to the Chief Building Official within thirty (30) days after the billing is mailed to the owner. The owner shall provide substantial evidence in support of the owner's statement of the grounds for the waiver. The Chief Building Official shall review the written statement and all related evidence and may contact the owner to discuss the application for waiver. The Chief Building Official shall prepare a written decision which shall be mailed to the owner and shall set forth the reasons for the decision. (6) Appeal. Any owner aggrieved by the decision of the Chief Building Official relating to an application for waiver may appeal the decision pursuant to section Ordinance No. NS-XXXX Page 12 of 16 11 B-28 8-1991 within fifteen (15) days of the mailing of the decision. (7) Non-payment of fees — special assessment. If the fee is not paid within sixty (60) days after billing, or within sixty (60) days after the decision of the Chief Building Official or appellate hearing officer, they may then be declared a special assessment against that parcel as provided in California Government Code section 28773.5. Such special assessment shall be collected at the same time and in the same manner as ordinary city taxes are collected and shall be subject to the same penalties and the same procedures and sale in case of delinquency as provided for ordinary city taxes. The city shall retain the additional and independent right to recover its costs by way of civil action against the owner and person in possession or control, jointly or severally. (8) Non-payment of fees — lien. Alternatively, if the fee is not paid within sixty (60) days, the city manager may also cause a notice of lien to be recorded. The notice shall, at a minimum, identify the record owner or possessor of the property, set forth the last known address of the record owner or possessor, a description of the real property subject to the lien, and the amount of the fee. Sec. 8-1989. - Fees. An annual non-refundable foreclosed, vacant and/or abandoned property registration fee shall be paid to city at the time of registration, annually thereafter on January 1 st each year and must be received no later than January 31 of the year due. If the foreclosed, vacant and/or abandoned property is sold or transferred within a calendar year to a new bank/owner it will need to register the foreclosed, vacant and/or abandoned property; the annual fee is not transferrable. The fee for registering and re -registering a foreclosed, vacant and/or abandoned property shall be set, from time to time, by resolution of the city council. The amount of the fee shall not exceed the cost of administering the provisions of this chapter. Additional hourly inspection fees as set forth in the city's miscellaneous fee resolution may be levied on a property for staff time to inspect and enforce the provision of this Code when a complaint has been filed on a property subject to this article. Sec. 8-1990. - Enforcement. A. Any violation of this division shall be treated as a strict liability offense; a violation shall be deemed to have occurred regardless of a violator's intent. B. Any person, partnership, association, corporation, fiduciary or other legal entity, that owns, leases, occupies, controls or manages any abandoned property and causes, permits, or maintains a violation of the chapter as to that property, shall be guilty of a misdemeanor, and upon conviction thereof, may be punished as provided in section 1-8. C. This section is intended to be cumulative to, and not in place of, other rights and remedies available to the city pursuant to this Code. As an alternative to the Ordinance No. NS-XXXX Page 13 of 16 11 B-29 violation and penalty specified in this section, the city attorney or enforcement official may pursue any other right or remedy permitted by this Code, including, but not limited to, commencement of any civil action, or administrative action to abate the condition of a property as a public nuisance pursuant to sections 1-21 through 1-21.9. D. If an enforcement officer determines that the owner of abandoned property has failed to maintain that property as obligated under California Civil Code Section 2929.3 and in accordance with this chapter, the city may impose a civil fine against the owner of up to one thousand dollars ($1,000.00) per day, or an amount set by the city's miscellaneous fee schedule as amended from time to time, for each day that the owner fails to maintain the property commencing on the day following the expiration of the period to remedy the violation as set forth in the notice provided pursuant to subsection E. E. If the city chooses to impose a fine pursuant to subsection D., it shall give notice of the alleged violation to the owner. The notice shall include a description of the conditions that gave rise to the violation, and notice of the city's intent to assess a civil fine if action to correct the violation is not commenced within a period of not less than fourteen (14) days and completed within a period of not less than thirty (30) days. The notice shall be mailed to the name and address provided in the deed or other instrument for mailing future tax statements, or, if none, to the return address provided on the deed or other instrument. F. The city shall provide a period of not less than thirty (30) days for the legal owner to remedy the violation prior to imposing a civil fine. Notwithstanding the foregoing, the city may provide less than thirty (30) days' notice to remedy a condition before imposing a civil fine if the entity determines that a specific condition of the property threatens public health or safety and provided that notice of that determination and time for compliance is given. G. The city shall provide an owner who wishes to contest any fines imposed pursuant to subsection D. a hearing and opportunity to be heard in accordance with the procedures for administrative citations contained in chapter 1.14. H. Payment of the administrative and civil penalties shall not excuse the failure to correct the violation nor shall it bar further enforcement action. Sec. 8-1991. -Appeals. Any person aggrieved by any of the requirements of this division may appeal a determination made hereunder in the manner specified with respect to appeals under section 1-21.8 through 1-21.9 or chapter 3. Sec. 8-1992. -Joint and several liability. The duties/obligations specified in this division shall be joint and several among and Ordinance No. NS-XXXX Page 14 of 16 11 B-30 between all trustees and beneficiaries and their respective agents. Secs. 8-1993-8-1999. - Reserved. SECTION 4. Severability. 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 5. Effective Date. This ordinance shall become effective thirty (30) days after its adoption. ADOPTED this day of 2020. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: 7tit Kyle ellesen Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor Ordinance No. NS-XXXX Page 15 of 16 11 B-31 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, 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, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Ordinance No. NS-XXXX Page 16 of 16 Daisy Gomez Clerk of the Council City of Santa Ana 11 B-32 SECOND READING ORDINANCE CLEAN VERSION ORDINANCE NO. NS-XXXX AN ORDINANCE OF THE CITY OF SANTA ANA AMENDING CHAPTER 8, ARTICLE X OF THE SANTA ANA MUNICIPAL CODE RELATING TO REGISTRATION AND MAINTENANCE OF ABANDONED, VACANT AND/OR DEFAULTED MORTGAGE PROPERTIES; ADDING HISTORIC PROPERTIES; PROVIDING FOR ADDITIONAL PROPERTY OWNER RESPONSIBILITIES, AS WELL AS ADDITIONAL ENFORCEMENT OPTIONS BY CITY; AND, PROVIDING FOR MONITORING PROGRAM BY CITY THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN 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; and B. Vacant and abandoned residential, commercial, industrial, and historic properties are a significant problem and can depreciate property values, reduce property tax revenue, attract crime, create the potential for a permanent loss of a historical resource, degrade the quality of life within the community and foster an unsafe and unhealthy environment for residents; and C. Property owners are often located outside of the area or state and do not provide regular monitoring or securing of their properties, leading to increased dereliction, trespassing, squatting, arson, and other crimes; and D. A number of historically significant properties have been abandoned or allowed to remain vacant without proper monitoring or security, leading to vandalism, squatting, arson, and destruction; and E. The Council has a vested interest in protecting neighborhoods against various dangers caused by vacant and abandoned properties and concludes that it is in the best interests of the health, safety, and welfare of its citizens and residents to ensure that all properties within the City are held to reasonable standards of maintenance and security; and F. The City Council desires to amend the City's Code in order to provide additional tools for staff to aggressively enforce the City's registration and maintenance program, requiring the posting of bonds by property owners and installation of fencing on all vacant properties; and G. The City Council finds that the implementation of the following changes and additions Ordinance No. NS-XXXX Page 1 of 16 11 B-33 will assist the City in protecting neighborhoods from the negative impacts and conditions that occur as a result of vacancy, absentee ownership and lack of compliance with City regulations and laws. SECTION 2. The adoption of this ordinance is exempt from the California Environmental Quality Act and a Notice of Exemption will be filed after this ordinance is adopted. SECTION 3. Division 3, Article X, of Chapter 8 of the Santa Ana Municipal Code is hereby amended and restated such that it reads 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 a property registration program for such properties, and to set forth guidelines for the maintenance of such properties. Sec. 8-1983. Definitions. For the purpose of this division the following terms, phrases and words, shall have the meaning set forth below: "Abandoned" means any real property that is: (1) vacant or shows evidence of vacancy, (2) is subject to a current notice of default and/or notice of trustee's sale, pending tax assessors lien sale and/or (3) is the subject of a foreclosure sale resulting in the acquisition of title by an interested beneficiary of a deed of trust, and/or (4) was conveyed to the current owner under a deed in lieu of foreclosure/sale. "Abatement order" means a notice of violation, notice and order, or administrative citation. As used in this chapter, the terms "abate" and "abatement" means action to repair, replace, remove, destroy, terminate, or otherwise remedy the condition or activity in question by such means and in such manner as is necessary in the interests of the health, safety or welfare of the public. (Section 17-4) "Accessible property" means real property that is accessible to the public, either, in general or through an open and unsecured door, window, gate fence, wall, etc. "Accessible structure" means a building or structure that is not secured or is open in such a way as to allow public or unauthorized access to the interior. "Administrative penalty payment due date" means the date that is the 10th day after the issuance of an abatement order, a notice of violation issued pursuant to section 1- Ordinance No. NS-XXXX Page 2 of 16 11 B-34 21.7(1). "Agreement" means any written instrument that transfers or conveys title to residential or commercial property from one owner to another after a sale, trade, transfer or exchange. "Beneficiary" means a lender participating in a real property transaction that holds a secured interest in the real property in question identified in a deed of trust. "Boarded building" means a vacant building or portion of a vacant building whose doors and windows have been covered with plywood or other material for the purpose of preventing entry into the vacant building by persons or animals. "Building" means any structure, including, but not limited to, any residential, commercial, industrial, or assembly structure, approved for occupancy on either a lot of record or within a single project approved by the city pursuant to the city's Code or applicable specific plan. "Buyer" means any person, partnership, association, corporation, fiduciary or other legal entity that agrees to transfer anything of value in consideration for real property via an agreement. "Chief Building Official" or "building official" means Building Safety Manager, Code Enforcement Manager, or their designees. "Commercial Property" means any improved real property, or portion thereof, designed or permitted to be used for commercial non-residential purposes, including buildings and structures located on such improved real property. This includes any real property being offered under any circumstances for sale, trade, transfer, or exchange as "commercial," whether or not said property is legally permitted and zoned for such use. "Dangerous building" means any building or structure reasonably deemed by authorized city staff to represent a violation of any provision specified in the Uniform Code for the Abatement of Dangerous Buildings, International Property Maintenance Code, or California Health and Safety Code section 17920.3. "Days" means calendar days. "Deed of trust" means an instrument whereby an owner of real property, as trustor, transfers a secured interest in the real property in question to a third party trustee, as security for a loan issued in the context of a real property transaction. This definition applies to any and all subordinate deeds of trust; i.e., 2nd trust deed, 3rd trust deed, etc. "Deed in lieu of foreclosure" means a recorded instrument that transfers ownership of property from the trustor to the holder of a deed of trust upon consent of the beneficiary of the deed of trust. Ordinance No. NS-XXXX Page 3 of 16 11 B-35 "Default" means the material breach of, or failure to fulfill, a legal or contractual duty arising from or relating to a deed of trust. "Distressed" means any building, structure or real property that is subject to a current notice of default and/or notice of trustee's sale, pending tax assessors lien sale and/or any real property conveyed via a foreclosure sale resulting in the acquisition of title by an interested beneficiary of a deed of trust, and/or any real property conveyed via a deed in lieu of foreclosure/sale, regardless of vacancy. "Enforcement official" means the city manager, the building official, and/or any employee or agent of the city designated and/or charged with enforcing this Code, including but not limited to applicable codes adopted by reference therein. "Evidence of vacancy" means any real property condition that independently, or in the context of the totality of circumstances relevant to that real property would lead a reasonable enforcement official to believe that a property is vacant or occupied by a person without a legal right of occupancy. Such real property conditions include but are not limited to: overgrown or dead vegetation; accumulation of newspapers, circulars, flyers or mail; past due utility notices or disconnected utilities; accumulation of trash, junk or debris; the absence of window coverings such as curtains, blinds or shutters; the absence of furnishings or personal items consistent with residential habitation; and/or statements by neighbors, passersby, delivery agents, government employees that the property is vacant. "Foreclosure" means the legal process by which a mortgagee, or other lien holder, terminates 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. This definition shall include, but is not limited to, public notice of default, a deed -in -lieu of foreclosure, sale to the mortgagee or lien holder, certificate of title and all other processes, activities and actions, by whatever name, associated with the described process. The 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. "Historical/historic Building" means any structure, including, but not limited to, any residential, commercial, industrial, or assembly structure designated as having historical or architectural importance by inclusion in the city register of historical properties pursuant to Chapter 30 of the Santa Ana Municipal Code. "Industrial Property" means any improved real property, or portion thereof, designed or permitted to be used for industrial non-residential purposes, including buildings and structures located on such improved real property. This includes any real property being offered under any circumstances for sale, trade, transfer, or exchange as "industrial," whether or not said property is legally permitted and zoned for such use. "Local" means within forty (40) driving miles of the subject building, structure or real property. Ordinance No. NS-XXXX Page 4 of 16 11 B-36 "Neighborhood standard" means the condition of real property that prevails in and through the neighborhood where an abandoned building, structure or real property is located. When determining the neighborhood standard no abandoned or distressed building, structure or real property shall be considered. "Notice of default" means a recorded instrument that reflects and provides notice that a default has occurred under a deed of trust, and that the beneficiary intends to proceed with a trustee's sale. "Notice of trustee's sale" means a document prepared and recorded by the trustee that sets forth the day, date and time of the trustee's sale, describes the property to be sold, and gives an estimate for the unpaid debt on the deed of trust secured by the property. "Out of area" means in excess of forty (40) road or driving miles of the subject building, structure or real property. "Owner" means any person, partnership, association, corporation, fiduciary or other legal entity having a legal or equitable title or any interest in real property. "Owner of record" means any person shown as the owner of land on the last equalized assessment roll produced by the Orange County Recorder's Office. "Property" means any unimproved or improved real property designed or permitted to be used for commercial, industrial, residential or dwelling purposes, or portion thereof, including but not limited to building or structures located on said real property, regardless of condition. "Registrable property" means any real property located in the city, whether vacant or occupied, that is encumbered by a mortgage in default, is subject to an ongoing foreclosure action by the mortgagee or trustee, is subject to an application for a tax deed or pending tax assessor's lien sale, or 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. "Registrable property" shall also refer to vacant property, whether residential, commercial, industrial or historic, subject to the property registration guidelines discussed below. The designation of a "default/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 and any default on the mortgage has been cured. "Residential building" means any improved real property, or portion thereof, designed or permitted to be used for dwelling purposes, including buildings and structures located on such improved real property. This includes any real property being offered under any circumstances for sale, trade, transfer, or exchange as "residential," whether or not said property is legally permitted and zoned for such use. Ordinance No. NS-XXXX Page 5 of 16 11 B-37 "Secure" means such measures as may be directed by an enforcement official that assist in rendering real property inaccessible to unauthorized persons, including but not limited to repairing fences and walls, chaining/pad locking gates, the repairing or boarding of doors, windows or other openings. Such measures shall be implemented in conformance with all applicable standards of the United States Department of Housing and Urban Development. "Tax assessor's lien sale" means the sale, conducted by the Assessor of Orange County, of tax liens for delinquent taxes on the property. "Trustee" means any person, partnership, association, corporation, fiduciary or other legal entity holding a deed of trust securing an interest in real property for the benefit of the beneficiary. "Trustor" means any owner/borrower identified in a deed of trust, who transfers an interest in real property to a trustee as security for payment of a debt by that owner/borrower. "Vacancy/vacant" means any building, structure or real property that is unoccupied or occupied by a person without a legal right of occupancy. "Vacant building" means a building where at least thirty-five (35%) percent of the total floor area within the building is not occupied. "Vacant shopping center/industrial complex" means a shopping center or industrial complex on a single property containing one or more buildings where fifty (50%) percent of the gross leasable area is not occupied. Sec. 8-1984. - Duty to record instrument for property transfer. In order to ensure proper noticing regarding registration of abandoned, defaulted and/or vacant properties pursuant to this Article, within ten (10) days of a property transaction involving a change in the identity of an owner or the owner of record, or alternatively a transfer/assignment of a loan or deed of trust secured by such residential, industrial or commercial property, each beneficiary and trustee engaged in said transaction or transfer/assignment shall record, with the Orange County Recorder's Office, an instrument evidencing such transaction, transfer or assignment. This instrument shall reflect the identity, mailing address and telephone number of the trustee and beneficiary responsible for receiving payments associated with the loan or deed of trust in question. This duty/obligation shall be joint and several among and between all trustees and beneficiaries and their respective agents. Sec. 8-1985. - Registration. 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 Ordinance No. NS-XXXX Page 6 of 16 11 B-38 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 vacant or 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 Ordinance No. NS-XXXX Page 7 of 16 11 B-39 the property and pay a registration fee in accordance with this article. Any previous unpaid 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. 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. 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 vacant or 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 registrable property, including vacant or abandoned properties subject to registration under this Division: A. Any 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. 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. 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 yards shall be landscaped and continuously maintained by proper pruning, mowing of lawns, weeding, removal of litter, fertilizing, replacement of plants and decorative materials when necessary, and the regular watering of plants. 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 weeds, gravel, broken concrete, Ordinance No. NS-XXXX Page 8 of 16 11 B-40 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. G. An enforcement official may allow exceptions to the maintenance standards set forth in this section for registrable property that has submitted a development application with the City and is undergoing the approval process or 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. H. No person, firm, partnership, corporation or other entity shall allow a residential, commercial, historical, or industrial building designed for human use or occupancy to stand vacant for more than forty-five (45) days, unless the owner establishes by substantial evidence to the reasonable satisfaction of the chief building official that one of the following applies: (1) The building is the subject of an active building permit for repair or rehabilitation and the owner is progressing diligently to complete the repair or rehabilitation; (2) The building meets all applicable codes, is actively maintained in accordance with all city ordinances, is ready for occupancy, and is actively being offered for sale, lease, or rent. The owner of any boarded building, whether boarded by voluntary action of the owner or as a result of enforcement activity by the city, shall cause the boarded building to be rehabilitated for occupancy within ninety (90) days after the building is boarded and shall comply with the provisions of subsections A through H of this section, as well as all other provisions of the City Code. J. 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 building or property subject to this chapter to cause, permit, or maintain such building or property in violation of subsections A through I of this section. K. Within thirty (30) days after a property becomes a vacant building as defined herein, the owner of a vacant residential, commercial, historical, or industrial building shall cause said building to be registered as a vacant building pursuant to the provisions of section 8-1985 of this chapter and shall pay the registration fee required per section 8-1989. Further, the owner of said vacant building shall comply with all applicable provisions of this Code with respect to property Ordinance No. NS-XXXX Page 9 of 16 11 B-41 maintenance, nuisance abatement, local property management requirements and monitoring. Sec. 8-1987. Security Requirements. A. Abandoned and vacant properties shall be secured so as not to be accessible to unauthorized persons. B. Securing of vacant or abandoned property includes but is not limited to closing and locking of windows, doors (walk-through, sliding and garage), gates and any other opening that may allow access to the interior of the property and or structure(s). In the case of broken windows securing means re -glazing or boarding the window. If deemed necessary by the Code Enforcement Manager, securing of vacant or abandoned property may require the provision of on -site security guard services. Such services shall be of sufficient duration and frequency to ensure that the property remains secure and no unauthorized persons may gain entry. C. If the vacant or abandoned property is owned by a corporation and/or out of area beneficiary/trustee/owner, a local property management company shall be contracted to perform weekly inspections to verify that the abandoned property is maintained in accordance with the requirements of this section, and any other applicable laws. D. The property shall be posted with the name and 24-hour contact phone number of the local property management company. The posting shall be no less than 18" x 24", shall be of a font that is legible from a distance of forty-five (45) feet, and shall contain the following verbiage: "THIS PROPERTY MANAGED BY ," and "TO REPORT PROBLEMS OR CONCERNS CALL (name and phone number)." E. The posting shall be placed on the interior of a window facing the street to the front of the property so it is visible from the street, or secured to the exterior of the building/structure facing the street of the front of the property so it is visible from the street. If no such area exists, the posting shall be on a stake of sufficient size to support the posting, in a location that is visible from the street to the front of the property, and to the extent possible, not readily subject to potential vandalism. Exterior posting must be constructed of, and printed with weather resistant materials. F. The local property management company shall inspect the property on a weekly basis, or more frequently, to determine if the property is in compliance with the requirements of this division. If it is determined that the property is not in compliance, it is the company's responsibility to bring the property into compliance. G. The duties and obligations specified in this section shall be joint and several among and between all trustees and beneficiaries and their respective agents. Ordinance No. NS-XXXX Page 10 of 16 11 B-42 H. Bonding and Fencing Requirements for Vacant Buildings. (1) Whenever a building remains vacant for a period of ninety (90) days or more, in addition to the other requirements of this chapter the owner, beneficiary or trustee, shall post with the city a bond or similar security in an amount equal to three (3) months estimated costs of blight prevention and security activities, as estimated by the Chief Building Official or Code Enforcement Manager. (2) Whenever a building remains vacant for a period of ninety (90) days or more, in addition to the other requirements of this chapter, the owner, beneficiary or trustee shall cause to be installed a minimum six foot (6') high chain -link fence adjacent to the property boundaries, or other alternative fencing acceptable to the Chief Building Official or Code Enforcement Manager that is adequate to protect the public health, safety and welfare, unless the City officials determine that the installation of such fencing will be detrimental to the public safety and welfare. Any fencing required under this section may additionally require screening if deemed necessary in order to protect the safety, streetscape and overall appearance of the site. The Chief Building Official and Code Enforcement Manager may promulgate additional fencing standards for vacant properties consistent with this section. Sec. 8-1988. Additional authority; Monitoring Program. A. In addition to the enforcement remedies established in this division, the city shall have the authority to require the beneficiary, trustee, owner or owner of record of any property affected by this section, to implement additional maintenance and/or security measures including but not limited to, securing any and all doors, windows or other openings, installing additional security lighting, increasing on - site inspection frequency, employment of an on -site security guard or other measures as may be reasonably required to secure and reduce the visual decline of the property. B. Property Monitoring Program and Procedures. (1) Purpose. Vacant buildings are a major cause and source of blight in residential and non-residential neighborhoods, especially when the owner of the building fails to maintain and manage the building. Vacant buildings often attract squatters and criminals, including drug users. Use of vacant buildings by squatters and criminals creates a risk of fire for the vacant buildings and adjacent properties. Vacant properties are often used as dumping grounds for junk and debris and are often overgrown with weeds and grass. Vacant buildings which are boarded up and other long-term vacancies discourage economic development and retard appreciation of property values. In order to combat these issues, the focus of the monitoring program shall be: (a) To identify buildings that become vacant; (b) To order vacant buildings that are Ordinance No. NS-XXXX Page 11 of 16 11 B-43 open and accessible to be secured against unlawful entry pursuant to City codes, including the building code, or other applicable law; (c) To initiate proceedings against the owner of any vacant building found to be substandard as defined in this chapter or a nuisance under any other provision of this code; and (d) To maintain surveillance over vacant buildings so that timely enforcement proceedings are commenced in the event a building becomes substandard or a nuisance. (2) Authority. The Chief Building Official shall be responsible for administering a program for identifying and monitoring the maintenance of all vacant buildings in the city. The program shall be documented and regularly updated. The program shall be available for public review. (3) Fee Imposed. There is imposed upon every owner of a vacant building monitored pursuant to this chapter, an annual vacant building monitoring fee in an initial amount as the city council may establish by resolution, provided that the fee shall not exceed the estimated reasonable cost of monitoring the vacant building. The fee shall be payable as to any building, residential or non- residential, which: (a) Is boarded up by voluntary action of the owner or as the result of enforcement activities by the city; or (b) Is vacant for more than ninety (90) days for any reason. (4) Fee Waiver. The vacant building monitoring fee shall be waived upon a showing by the owner that: (a) The owner has obtained a building permit and is progressing diligently to repair the premises for occupancy; or (b) The building meets all applicable codes and is actively being offered for sale, lease, or rent; or (c) Imposition of the fee would impose a substantial economic hardship on the owner or would hinder the rehabilitation of the building. (5) Procedure. The vacant building monitoring fee shall be billed to the owner of the property and mailed to the owner's address as set forth on the last equalized assessment roll of the Orange County Assessor. Any owner billed may apply for a waiver on the grounds set forth in subsection (4) of this section by submitting a written statement of the grounds for the waiver to the Chief Building Official within thirty (30) days after the billing is mailed to the owner. The owner shall provide substantial evidence in support of the owner's statement of the grounds for the waiver. The Chief Building Official shall review the written statement and all related evidence and may contact the owner to discuss the application for waiver. The Chief Building Official shall prepare a written decision which shall be mailed to the owner and shall set forth the reasons for the decision. (6) Appeal. Any owner aggrieved by the decision of the Chief Building Official relating to an application for waiver may appeal the decision pursuant to section 8-1991 within fifteen (15) days of the mailing of the decision. Ordinance No. NS-XXXX Page 12 of 16 11 B-44 (7) Non-payment of fees — special assessment. If the fee is not paid within sixty (60) days after billing, or within sixty (60) days after the decision of the Chief Building Official or appellate hearing officer, they may then be declared a special assessment against that parcel as provided in California Government Code section 28773.5. Such special assessment shall be collected at the same time and in the same manner as ordinary city taxes are collected and shall be subject to the same penalties and the same procedures and sale in case of delinquency as provided for ordinary city taxes. The city shall retain the additional and independent right to recover its costs by way of civil action against the owner and person in possession or control, jointly or severally. (8) Non-payment of fees — lien. Alternatively, if the fee is not paid within sixty (60) days, the city manager may also cause a notice of lien to be recorded. The notice shall, at a minimum, identify the record owner or possessor of the property, set forth the last known address of the record owner or possessor, a description of the real property subject to the lien, and the amount of the fee. Sec. 8-1989. - Fees. An annual non-refundable foreclosed, vacant and/or abandoned property registration fee shall be paid to city at the time of registration, annually thereafter on January 1 st each year and must be received no later than January 31 of the year due. If the foreclosed, vacant and/or abandoned property is sold or transferred within a calendar year to a new bank/owner it will need to register the foreclosed, vacant and/or abandoned property; the annual fee is not transferrable. The fee for registering and re -registering a foreclosed, vacant and/or abandoned property shall be set, from time to time, by resolution of the city council. The amount of the fee shall not exceed the cost of administering the provisions of this chapter. Additional hourly inspection fees as set forth in the city's miscellaneous fee resolution may be levied on a property for staff time to inspect and enforce the provision of this Code when a complaint has been filed on a property subject to this article. Sec. 8-1990. - Enforcement. A. Any violation of this division shall be treated as a strict liability offense; a violation shall be deemed to have occurred regardless of a violator's intent. B. Any person, partnership, association, corporation, fiduciary or other legal entity, that owns, leases, occupies, controls or manages any abandoned property and causes, permits, or maintains a violation of the chapter as to that property, shall be guilty of a misdemeanor, and upon conviction thereof, may be punished as provided in section 1-8. C. This section is intended to be cumulative to, and not in place of, other rights and remedies available to the city pursuant to this Code. As an alternative to the violation and penalty specified in this section, the city attorney or enforcement Ordinance No. NS-XXXX Page 13 of 16 11 B-45 official may pursue any other right or remedy permitted by this Code, including, but not limited to, commencement of any civil action, or administrative action to abate the condition of a property as a public nuisance pursuant to sections 1-21 through 1-21.9. D. If an enforcement officer determines that the owner of abandoned property has failed to maintain that property as obligated under California Civil Code Section 2929.3 and in accordance with this chapter, the city may impose a civil fine against the owner of up to one thousand dollars ($1,000.00) per day, or an amount set by the city's miscellaneous fee schedule as amended from time to time, for each day that the owner fails to maintain the property commencing on the day following the expiration of the period to remedy the violation as set forth in the notice provided pursuant to subsection E. E. If the city chooses to impose a fine pursuant to subsection D., it shall give notice of the alleged violation to the owner. The notice shall include a description of the conditions that gave rise to the violation, and notice of the city's intent to assess a civil fine if action to correct the violation is not commenced within a period of not less than fourteen (14) days and completed within a period of not less than thirty (30) days. The notice shall be mailed to the name and address provided in the deed or other instrument for mailing future tax statements, or, if none, to the return address provided on the deed or other instrument. F. The city shall provide a period of not less than thirty (30) days for the legal owner to remedy the violation prior to imposing a civil fine. Notwithstanding the foregoing, the city may provide less than thirty (30) days' notice to remedy a condition before imposing a civil fine if the entity determines that a specific condition of the property threatens public health or safety and provided that notice of that determination and time for compliance is given. G. The city shall provide an owner who wishes to contest any fines imposed pursuant to subsection D. a hearing and opportunity to be heard in accordance with the procedures for administrative citations contained in chapter 1.14. H. Payment of the administrative and civil penalties shall not excuse the failure to correct the violation nor shall it bar further enforcement action. Sec. 8-1991. -Appeals. Any person aggrieved by any of the requirements of this division may appeal a determination made hereunder in the manner specified with respect to appeals under section 1-21.8 through 1-21.9 or chapter 3. Sec. 8-1992. -Joint and several liability. The duties/obligations specified in this division shall be joint and several among and between all trustees and beneficiaries and their respective agents. Ordinance No. NS-XXXX Page 14 of 16 11 B-46 Secs. 8-1993-8-1999. - Reserved. SECTION 4. Severability. 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 5. Effective Date. This ordinance shall become effective thirty (30) days after its adoption. ADOPTED this day of APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney B Y Kyle / ellesen Assi ant City Attorney AYES: NOES: ABSTAIN: NOT PRESENT Councilmembers Councilmembers Councilmembers Councilmembers 2020. Miguel A. Pulido Mayor Ordinance No. NS-XXXX Page 15 of 16 11 B-47 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, 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, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Ordinance No. NS-XXXX Page 16 of 16 Daisy Gomez Clerk of the Council City of Santa Ana 11 B-48