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HomeMy WebLinkAbout2008-075 - Assess Civil Fines and Penalties for the Failure to Maintain Vacant Residential Property bk: 11/1 0/08 RESOLUTION NO. 2008-075 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING A PROCEDURE TO ASSESS CIVIL FINES AND PENALTIES FOR THE FAILURE TO MAINTAIN VACANT RESIDENTIAL PROPERTY AFTER FORECLOSURE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. SB 1137, an emergency bill signed into law earlier this year, is designed to address concerns relating to the increase of foreclosures of single family homes throughout California. B. One concern addressed by the Legislature in SB 1137 is the failure to maintain vacant residential property by out-of-town financial institutions who acquire title to homes through foreclosure. C. In adopting SB 1137, legislative reports quoted findings that orphaned homes quickly fall into disrepair, their deterioration sometimes hastened by vandals who trash the interiors, lighting fires and ripping out wiring and pipes to sell for scrap. In some communities, the Legislature found that squatters or drug dealers may move in to these orphaned homes. D. The Legislature also found that the impact of foreclosed homes goes far beyond the defaulting homeowner, as neighbors and entire communities confront a potential spreading blight. The Legislature found that vacant residences deprive cities of tax revenue and can cost them thousands to maintain. The Legislature quoted from a 2001 Temple University study which found that in Philadelphia simply being within 150 feet of an abandoned property knocked $7,600 off a home's value. E. SB 1137 requires financial institutions who acquire homes through foreclosure to maintain the vacant foreclosed residential properties in conformance with City codes. F. SB 1137, by adding section 2929.3 to the California Civil Code, gives cities the power to impose civil fines and penalties of up to $1,000 per day if the new owner, who acquired a home through foreclosure, fails to maintain the home. Prior to imposing fines or penalties, SB 1137 requires Resolution No. 2008-075 Page 1 of 3 the city to give the owner a notice of the claimed violation, including a description of the conditions giving rise to the claim, and opportunity to remedy the violation at least 14 days prior to imposing those fines and penalties, and allows for a hearing and opportunity to contest any fines or penalties. G. Under SB 1137, "failure to maintain" a home acquired through foreclosures means failure to adequately care for the property, such as, permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action to prevent trespassers or squatters from remaining on the property, and failing to take action to prevent growth of mosquito larva in standing water such as swimming pools. H. Section 1-13 of the Santa Ana Municipal Code ("Code") provides that any violation of the provisions of the Code constitute a public nuisance. Each of the items referenced in SB 1137 and this resolution constitute violations of the provisions of the Code. Section 2. The City shall, in conformance with the provisions of Civil Code section 2929.3, establish and maintain a process to impose civil fines and penalties pursuant to the terms and conditions of that section. All fines and penalties shall include the City's reasonable and necessary costs of imposing the fines and penalties. Section 3. The City shall pursue all remedies provided at law, under its charter or state statute, to secure payment of said civil fines and penalties imposed on owners pursuant to Civil Code section 2929.3, including civil judgments, liens recorded against the property to be paid upon its subsequent sale, and/or liens imposed pursuant to Government Code section 54988 and other applicable state laws which are collected at the same time and in the same manner as property taxes are collected. Section 4. This terms and provisions of this resolution shall remain in effect only until January 1, 2013, and as of that date this resolution shall be repealed, unless a later enacted statute of the California Legislature, that is enacted before January 1, 2013, deletes or extends the January 1, 2013 date for the repeal of Civil Code section 2929.3. In such case, this resolution shall continue in full force and effect for the same period as does Civil Code section 2929.3, or a successor statute, and no longer. Section 5. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. Resolution No. 2008-075 Page 2 of 3 bk:11/10108 ADOPTED this 1 ih day of November, 2008. APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney .-, '. . AYES: Councilmembers: Alvarez. Benavides. Bustamante. Martinez. Pulido. Sarmiento. Tinaiero (7) NOES: Councilmembers: None (0) ABSTAIN: Councilmembers: None (0) NOT PRESENT: Council members: None (0) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2007-075 to be the original resolution adopted by the City Council of the City of Santa Ana on November 17. 2008. Date: // ~7/n I / ~~ ~~ ". Patricia E. Healy Clerk of the Council City of Santa Ana Resolution No. 2008-075 Page 3 of 3