Agenda 03/14/2023 Item #10B (Add-0n - Board to discuss changes to the current process in applying and receiving a reduction in Code Liens)
[21‐CED‐02044/1617534/1]
EXECUTIVE SUMMARY
RECOMMENDATION THAT THE BOARD DISCUSS CHANGES TO THE CURRENT
PROCESS IN APPLYING FOR AND RECEIVING A REDUCTION IN CODE LIENS.
OBJECTIVE: To discuss whether the Board wishes to make any changes to the current code enforcement
lien settlement process.
CONSIDERATIONS: I believe that it is appropriate for the Board, at this time, to review and consider
changes to the current code enforcement lien forgiveness policy, which was instituted during the Great
Recession.
History
As set forth in an Executive Summary that went to the Board on April 13, 2021, which is included in the
back-up, for many years Collier County historically aggressively pursued Code Enforcement violations,
and reductions of liens were not generally granted. Public petitions and public comment from residents
complaining about Code Enforcement were common.
The Great Recession led to a foreclosure crisis in Collier County and the creation of a foreclosure task force
attempting to keep the multitude of abandoned homes in Collier County from blighting neighborhoods.
The Board Policy that evolved during the Great Recession was that the primary goal of Code Enforcement
was to encourage residential and commercial property owners to bring properties into compliance with the
Collier County codes, and once Code Compliance was achieved Code Enforcement Liens would be greatly
reduced to at least cover to County’s administrative costs. As part of that, Resolution No. 2012-46
empowered the Code Enforcement Director to settle fines and liens on financially hardship property owners
and new ownership, that included the reduction of fines accrued prior to the transfer of title and fines
accrued in the 30 days following the transfer of title to the new owner as long as abatement was pursued
and compliance achieved.
Although this policy made a great deal of sense during the Great Recession, economic circumstances is the
County are far different now.
Current Situation
In the last five years, the Director of Code Enforcement recommended settlement of 102 code enforcement
liens, all of which were approved by the Board. The liens recommended for settlement totaled
$24,329,490.22, of which $567,978.21 was paid pursuant to the settlements. Many of the approvals were
due to the abatement of the underlying issues by new owners, many who purchased the homes through
foreclosure sales or from tax deed sales and subsequently brought the property into compliance. One could
argue that the new owners achieved a windfall with the forgiveness of all or part of the lien, as the purchase
price likely reflected in some measure the lien.
Currently, there is no formal process in place for a property owner seeking settlement of enforcement liens.
Historically, the Director has received written requests from property owners outlining the basis for the
requests for lien reductions and settlements pursuant to Resolution 2012-46. Neither the Code Enforcement
Ordinance nor the associated Resolutions provide specific instructions as to how lien settlements can be
communicated to the Director.