Agenda 05/26/2009 Item #10J
Agenda Item No. 10J
May 26, 2009
Page 1 of 21
EXECUTIVE SUMMARY
That the Board of County Commissioners provide staff guidance as to whether to
implement a mandatory code inspection of vacant and foreclosed residential properties in
the unincorporated area of Collier County prior to sale and whether the program should
incorporate a Certificate of Use certification to document and disclose to the potential
buyer the extent to which the residential property (Le. single-family, condominium,
townhouse, or duplex) complies with all applicable building and zoning codes, and in
considering this proposal that the Board provide any additional guidance whether to
implement a voluntary or mandatory code inspection of residential properties prior to sale.
OBJECTIVE: To seek guidance from the Board of County Commissioners (Board) whether to
implement a mandatory code inspection of vacant and foreclosed residential properties and
Certificate of Use program, prior to sale, within the unincorporated area of Collier County and to
document and disclose to the buyers the extent to the residential properties (i.e. single-family,
condominium, townhouse, or duplex), comply with all applicable building codes and zoning
codes. In addition, to seek guidance whether to implement a voluntary or mandatory code
inspection of residential properties prior to sale.
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CONSIDERATIONS: The number of foreclosures continues to rise in Collier County. Current
projections indicate more than 1,000 new foreclosure units per month. Reports by entities
purchasing these properties verify that many of the units identified for foreclosure have
numerous building and code violations predominately due to unpermitted structures, additions,
wiring and plumbing, and construction and conversions of a garage, porch or lanai to living areas
and the failure to obtain the required inspections to insure compliance with the Florida Building
Code. Currently when problems are reported, usually after the transfer and sale, the county Code
Enforcement Department has no option but to open a case and initiate an investigation to
determine the extent of the violations. Often the Code Enforcement case results in a costly
process for the new owner to abate the violations.
The purpose of the inspection program is to document and disclose to the potential buyer the
extent to which residential propel1ies (i.e. single-family, condominium, townhouse, or duplex)
comply with all applicable building codes and zoning codes. The inspection process, conducted
by either a private sector licensed home inspector or by County staff, would include preparation
of a disclosure of findings report, which identifies building or zoning code violations for each
property and could also contain a good faith estimate of the cost to remedy any deficiencies. If
directed, an ordinance would require building code violations and zoning code violations
identified by either a private licensed home inspector or by a licensed building inspector or a
certified code enforcement investigator from staff to be identified and recorded prior to the point
of sale. The overall objectives of the report and the program would include:
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.
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The number of structures permitted on the property
Has an unpermitted addition been added to the residence
Has non-living space been converted to living space without a permit
Has electricity and plumbing been added without a permit
Do the residence and all accessory structures meet required setbacks - simple assessment
only to determine if there is a need for a professional spot survey
Agenda Item No. 10J
May 26, 2009
Page 2 of 21
. Are there any open permits without final inspections
Additionally, if directed, an Ordinance could require that bank title holders of vacant and
foreclosed residential properties obtain a Certificate of Use (COU) prior to offering the property
for sale or transfer. The COD would include the findings of an inspection conducted by a private
sector licensed home inspector or by County staff. The report would identify building or zoning
code violations based on research of permit files, the property record and an on-site inspection,
the zoning of the property, and if there are any variances or zoning resolutions applicable to the
property. If Code violations are found, the bank would be provided ample time to abate the
violations.
Attached at Attachment A is a report by John Barlow, H.O.M.E., (Housing Opportunities Made
for Everyone, Inc.) which underscores their first hand observations of numerous health and
safety concerns and the widespread nature of these findings in the county. Attachment B is a
proposal from the Naples Area Board of Realtors (NAB OR) proposing a similar but voluntary
inspection program. Note that the NABOR proposal is focused on a voluntary inspection of all
residential properties and not limited to vacant and foreclosed properties. If the Board prefers to
not pursue a mandatory proposal, staff requests that the Board allow staff to continue to work
with NABOR to assist in developing recommended procedures to effectively implement the
voluntary program.
As part of the volunteer program, NABOR would like the board to consider implementing an
amnesty program related to permit fees and impact fees to entice property owners to participate
in the volunteer program. The current CDES fee resolution notes the following regarding failure
to obtain a permit (emphasis added):
EE) FAILURE TO OBTAIN A PERMIT
1) Where work for which a permit is required is started or proceeded with prior to obtaining said
permit and where such action was cited by Code Enforcement or by Contractor Licensing and
resulted in a finding of violation from either the Code Enforcement Board, the Special
Magistrate, or the Contractor Licensing_Board, or as directed by the Board of County
Commissioners thefees herein spec~fied shall be 4x the regular fee.
2) fVhere work for which a permit is required is started or proceeded with prior to obtaining said
permit and where a contractor or agent/provider where the building official or zoning director
(for cases involving land development) deems that the contractor/provider should have known
that a permit was required but voluntmy seeks compliance by obtaining the necessary permits to
abate the violation the fees herein spec~fied shall be 2x the regular fee.
3) Where workfor which a permit is required is started or proceeded with prior to obtaining said
permit and where an owner/builder seeks voluntary compliance by obtaining said permit the
fees assessed will be 2x the regular rate as defined in this fee schedule.
.-
4) Where work for which a permit is required is started or proceeded with prior to obtaining said
permit and where the unpermitted work was completed by other or prior to the current
owner/builder's ownership of the property an where the current owner/builder seeks voluntary
compliance by obtaining said permit to assure compliance with all applicable codes the fees will
be assessed at the regular rate as defined in this fee schedule.
Agenda Item No.1 OJ
May 26, 2009
Page 3 of 21
5) The payment of such fee shall not relieve any person from fully complying with the requirements
of any applicable construction code or ordinance in the execution of the work, orfrom any
penalty prescribed within any constrnction code, law or ordinance of Collier County.
NABOR is requesting that if the unpermitted work can be properly permitted by affidavit that
regardless as to whether failure to obtain a permit for the work was by the new owner or the
current owner that fees be assessed at the regular rate. Note that the current fee schedule cites
that if the work was done by the current owner fees are assessed at 2 times the rate; if the work
was done by a previous owner fees are assessed at the regular rate as defined in the fee schedule.
In addition NABOR is asking that provided any additions to living space can be properly
permitted by affidavit, that any additional impact fees be waived if the additional square footage
causes the overall square footage to bump into the next assessment category. The current
categories for the assessment of impact fees for residential dwelling units are: 0 to 1,499 square
feet, 1,500 to 2,499 square feet and 2,500 and above. The additional fees moving into the next
class are as follows:
. Original home of less than 1,500 square feet changing to 1,500 - 2,499 square feet:
$4,876.17
. Original home of less than 1,500 square feet changing to 2,500 square feet or larger:
$7,574.03
. Original home of 1,500 - 2,499 square feet changing to 2,500 square feet or larger:
$2,697.86.
In addition, a per square-foot charge for Correctional Facilities and Fire Impact Fees is also
assessed for the increase in square footage. In the event additional bathrooms are added, a review
for additional Water and Sewer Impact Fees must also be completed, as applicable.
Please note that this matter has been the subject of numerous public petitions, however, it has
been the past determination by the Board that impact fees are required to be paid related to
increases in residential square footage that constitute a home moving from a lower assessment
category to a higher category. This practice protects the integrity and fairness of the impact fee
assessments and the overall impact fee program.
FISCAL IMPACT: If the Certificate of Use (COU) program is implemented for vacant and
foreclosed residential properties, county staff would conduct a review of the disclosure of
findings report, record and track records of inspections and issue a final COU. A fee would need
to be established to cover the costs of staff services. The cost for monitoring the program and
issuing the final COU is estimated to be $50 to $100 per applicant.
If the property owner requests that an inspection be conducted by County staff, the fee to cover
the staff support to conduct the needed research to support the COU inspection process to
include a review of all pertinent records and an on-site inspection is estimated to be
approximately $300 to $400 fee per property.
GROWTH MANAGEMENT IMPACT: This program has no impact on the County's Growth
_ Management Plan.
LEGAL CONSIDERATION: The County Attorney has concerns whenever one group is
Agenda Item NO.1 OJ
May 26,2009
Page 4 of 21
singled out for regulation concerning a problem which appears to be pervasive to the community
as a whole. That said, the County Attorney will work with staff to implement Board direction.
JAK
RECOMMENDA TION: That the Board provide guidance to staff as to whether to develop a
Certificate of Use (COU) program for vacant and foreclosed residential properties in Collier
County and in doing so direct staff to return to the Board a proposed ordinance to codify the
program for the unincorporated areas of the county. That the Board provide guidance whether to
implement a voluntary or mandatory inspection of residential properties prior to sale.
PREPARED BY: Joe Schmitt, Administrator, CDES
--
Item Number:
Item Summary:
Meeting Date:
Page 1 of 1
Agenda Item NO.1 OJ
May 26, 2009
Page 5 of 21
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
10J
This Item to be heard at 1 :00 p.m. That the Board of County Commissioners provide staff
guidance as to whether to implement a mandatory code inspection of vacant and foreclosed
residential properties in the unincorporated area of Collier County prior to sale and whether
the program should incorporate a Certificate of Use certification to document and disclose to
the potential buyer the extent to which the residential property (Le single-family,
condominium, townhouse, or duplex) compiies with all applicable building and zoning codes,
and in considering this proposal that the Board provide any additional guidance whether to
Implement a voluntary or mandatory code inspection of residential properties prior to sale.
(Joseph K. Schmitt, Administrator, CDES)
5f26f2009 90000 AM
Prepared By
Joseph K. Schmitt
Community Development &
Environmental Services
Community Development &
Environmental Services Adminstrator
Date
Community Development &
Environmental Services Admin.
5/5/20091 :38:40 PM
Date
Approved By
Judy Puig
Community Development &
Environmental Services
Operations Analyst
Community Development &
Environmental Services Admin.
5f5/2009 1 :39 PM
Approved By
Jeff Klatzkow
County Attorney
Date
County Attorney
County Attorney Office
SISf2009 2:S8 PM
Approved By
Diane B. Flagg
Community Development &
Environmental Services
Date
Code Enforcement Director
Approved By
Code Enforcement
SfB/2009 B:S9 AM
Joseph K. Schmitt
Community Development &
Environmental Services
Community Development &
Environmental Services Adminstrator
Date
Community Development &
Environmental Services Admin.
S/121200911:10 AM
Date
Approved By
OMB Coordinator
County Manager's Office
OMB Coordinator
Office of Management & Budget
S/1212009 3:33 PM
Date
Approved By
Mark Isackson
County Manager's Office
Budget Analyst
Office of Management & Budget
5114/20098:31 AM
Date
Approved By
Leo E. Ochs, Jr.
Board of County
Commissioners
Deputy County Manager
County Manager's Office
5/15120096:30 PM
file://C :\Agenda Test\Export\ 130-May%2026, %202009\ 10. %20COUNTY%20MANAGER...
5/20/2009
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Agenda Item No. 10J
Attachment ,Mil)'.26, 2009
Mige 6 of 21
By John Barlow
For all the startling neVi problems we have encountered in [he current economic crisis. yet
another pOjential roadblock has arisen in the effort to put hard-\-vorking families back into decent,
atfordable homes and help restore the market.
County code violations - unpermitted structures, additions, wiring and plumbing - surface on a
regular basis in foreclosed homes. Illegitimate building additions and alterations circumvent the
County permitting process COUllty building codes have evolved over time They have been put
in place not to penalize but to protect.
Through our efforts with H.OM.E, we have purchased 13 foreclosed homes. Every home we
have purchased in Golden Gate City and Golden Gate Estates has had county building code
violations. Our experience leads us to support a code and permit inspection of foreclosed
homes.
RO.M.E. always brings our properties back into code compliance BEFORE offering them for
sale. A family purchasing through H.O.M.E. is fortunate in that our organization is able to
correct all code and permitting violations with H.O.M.E. funds prior to the sale.
Not every family struggling to buy a home in this depressed market will be so lucky. Many find
it difficult to fund the purchase of a home Adding the financial burden of bringing a home up to
c.ounty code may make that purchase impossible. Without knowing of the code violations, a
newly installed family can suddenly find itself burdened with thousands of additional dollars in
costs and fines.
The number of foreclosed properties in Collier County is approaching. ten thousand. That means
ten thousand jibandoned properties that have had little, if any. upkeep The derelict nature of
these properties does not usually begin when the dweller moves out
I can speak to the hundred or so toreclosed properties H.O.M.E. has visited Home repairs or
alleratiom, are often dreadfully shoddy. Routine home maintenance ha.. been neglected for some
time, resulting in costly damage to air conditioning units and well water supply equipment An
overwhelming number of the homes had illegally converted garages or lanais into living space
H.O.ME has spotted frequent instances of electrical wiring splicing, often lacking even wire
caps to cover the exposed wires. This type of ",iring is exposed and simply tacked to the \-vall or
ceiling. We have seen three bedroom homes with one serviceable bathroom altered to make six
bedrooms One has to wonder how many people occupied that six bedroom conversion and what
size septic system existed to handle the load. These are public safety issues that extend beyond
the property line of these properties
While Florida law clearly requires the seller of any home - including banks holding foreclosed
properties - and real estate agents to fuHy disclose to potential buyers any flaws or problems
with the home prior to closing, such Jaws are often unenforceable Negotiations to remedy
problems remain largely on an honor sysrem The honor system has noj served us well
Many local companies provide a home inspection. The cost for these inspections becomes part of
the home purchase Many mistakenly assume this type of inspection \,,'il! disclose code or
Agenda Item NO.1 OJ
May 26, 2009
Page 7 of 21
permming violations It does not Only a code and permit mspection can protect a buyer from
those types of violations
The only recourse for new buyers who later discover undisck)sed problems is through the court
system. a costly and lenf.,rthy process. Many buyers of foreclosed homes are first time buyers;
making them especially vU.lnemble to unfamiliar contract terms Struggling families able to
scrape together enough money to buy a foreclosed home- because its price finally fits theil
budget - are seldom experienced homebuyer~
It requires only a small step for the county to ensure homebuyers not be saddled \\Iith unseen
additlonal costs and burdens As the number of foreclosed properties approaches 10.000, that
tnmslates into thousands of homeowners who could benefit enormously from a proactive
decision by Collier County officials A decision that protects man\' more than ten thousand.
Immediate neighbors and entire neighborhoods are shielded from unintentional mishaps that may
arise from substandard h()me 'improvement' practices These range from a very real threat of
fire, overta.xed septic systems causing an unsanitary environment. tainted water supplies due to
amateur plumbing attempts, and building collapse from layperson attempts at remodeling.
The government should make an extra eftbn in light of eA'1raordinary and unparalleled economic
conditions to protect purchasers of foreclosed properties In the long run, permit and code
inspections on foreclosed properties protects all citizens. It protects both our financial and our
physical wellbeing That is and should be a basic obi igation of our government
,.......-...
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Agenda Item No.1 OJ
May 26,2009
Page 8 of 21
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239262075El
AttachmE!m~1tPl No. 10J
~y 26, 2009
EK CON9..lL TING INC P~~t1 ~S21
RESIDEffOAL PRE..sALE CODE U~SPECnON
Board of Directors a the Naples Area Bo8rct r:I REAL TORse March 26, 2009
MonON: The Governmental IssUes COmmittee recommends to the Board of Directors
of the Naples Area Board of REAl TORse and AssociatiOn of Real Estate
professionals, Inc. that NABOR work with Collier County Code Enforoement to develop
e private market solution to help pr'fIVent buyers from unknowingty purchasing
properties that have existing code vidations end sellers from knowingly sailing
properties with existing code violations and to have REAL TORSQII be an integral
component in tne implementation of the final private market solution. The following
outlines a CXH'lCeptuel basis to begin the precess. NABOR'& intention is to be a
participative partner with Code Er"IforccIment in the development of a final program;
however, NABOR rvserves the right to withdraw from the partnership if, in its
determination, the program Qoos not meet itS expectations. 1"he Govemmental 'uues
Chairman is eutt'1or'tzed to appoint a task force to work on the development of tne
program with Code enforcement and the task force has the authority to make dectsions
on behalf of NABOR; however, If the Chairman of GovemmentaJ Inuesor any m&mber
of the task farce has any conc::ema about th& program, those concerns wUl be brought to
the Board of DirKtors for itS c::IeCi&lon prior to a deCision's being made on behalf of
NABOR, Furt.her, onJy the Board of Oir9ctcn can make the dociston to wtthdraw from
the program and that decision will be made based on a recommendation of the task
force.
CONCEPTUAL PROGRAM ~UIDELlNES
,. Develop a voluntary program that includes the best aspects of a true
pubfia'private pertnerahip.
). Incorporate an amnesty period that is practical and workS within the
program's perameters.
.> Recommend that Code Enforcement create an informational brochure that
gives the rational. for the brochure, describes the potential problems for
both buyers and sellers, end 9noourages buyers and seHers to have a
Code Violation Inspection prior to finalizing the purchase of e property,
.> Encouraoe REAL TORse to voluntarify provu:te the brochure to buyers
before making an otTer on the property and to _lIers at time of li~ing.
)0 Recommend that Code Enforcement write uniform standards that I!I'e
included in an instructional job aid for companies willing to provide this
Inspection.
;.- Umit liability of REAL TORse who partioipate in the progr$O'\.
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