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Agenda 05/09/2023 Item #10A (Resolution - Amending the Policies relating to Code Enforcement Liens)10.A 05/09/2023 EXECUTIVE SUMMARY Recommendation to adopt a Resolution updating the policies relating to code enforcement liens, direct staff to revisit its procedures for prosecuting code enforcement cases, and direct staff to discuss and reinforce with the Code Enforcement Board and Special Magistrate the parameters for the imposition of fines for code violations. OBJECTIVE: To adopt a Resolution updating the policies relating to code enforcement liens, direct staff to revisit its procedures for prosecuting code enforcement cases, and direct staff to discuss with the Code Enforcement Board and Special Magistrate the parameters for the imposition of fines for code violations during the upcoming public meetings CONSIDERATIONS: On March 14, 2023, the Board directed the County Attorney to review and consider changes to the current code enforcement lien forgiveness policy and to review the enforcement mechanism for the imposition of fines by the Code Enforcement Board and Special Magistrate. The proposed Resolution repeals Resolution 2012-46 and creates a more formal application process for property owners seeking relief from code enforcement liens. The proposed Resolution does the following: 1. Creates a formal written application process where the property owner is required to complete an application and supply supporting documentation 2. Imposes a $150 non-refundable application fee 3. Requires all hard costs and administrative fees to be paid at the time of application 4. Requires all code violations to be abated prior to the submission of the application 5. Requires all ad valorem property taxes, special assessments, utility charges, or other County fines or liens be paid prior to the submission of the application 6. Requires the property to have no expired permits and the property's use to be consistent with the permitted uses and zoning laws of the County 7. Requires closing documents and title insurance information if the applicant is applying as a new owner of the property and was not the owner responsible for the violation 8. Requires that the lien may be reduced to a sum not to exceed 10% of the market value of the property for non -repeat violators and 20% of the market value of the property for repeat violators In considering changes to the lien forgiveness policy, it was determined further review is needed by staff to revisit its procedures for prosecuting code enforcement cases before the Code Enforcement Board and Special Magistrate to confirm any reduction in accrued daily fines, based upon the mitigating factors set forth in Fla. Stat. 162.09, is consistent with Code Enforcement's goal of obtaining compliance from the property owner. Although the underlying goal of the Code Enforcement Division is compliance, the underlying collection of fines is also necessary to ensure violators are held accountable and encouraged to promptly abate violations. Pursuant to Fla. Stat. 162.09, in determining the amount of a fine imposed, if any, the Code Enforcement Board and Special Magistrate shall consider the following factors when ordering an imposition of fines or reducing the amount of fines imposed: Packet Pg. 21 10.A 05/09/2023 (1) The gravity of the violation; (2) Any potential health, safety, and welfare issues; (3) Any actions taken by the violator to correct the violation; (4) Any previous violations committed by the violator; (5) Any other relevant factors. It is recommended that County staff discuss and reinforce the importance of a full evaluation of the underlying factors relating to the imposition of fines with both the Code Enforcement Board and Special Magistrate at this time to confirm any reduction in accrued daily fines is consistent with the factors outlined above. Additionally, the County Attorney's Office is working with both the Special Magistrate and attorney for the Code Enforcement Board to establish written forms for the violators to complete in advance of the hearing as part of the Rules and Regulations for the quasi-judicial hearings. The forms will allow the violator to disclose the facts and documents in support of the mitigating factors above, so the Code Enforcement Board and Special Magistrate are apprised of all factors when ordering an imposition of fines. The Code Enforcement staff will also be reviewing its procedures for presenting cases to the Code Enforcement Board and Special Magistrate to ensure the cases are presented in a robust fashion with all relevant facts relayed to the Code Enforcement Board and Special Magistrate, including a staff recommendation of whether the mitigating factors are present prior to the imposition of fines. Additionally, to address the properties that experience ongoing, daily fines with values accruing to over the values of the properties in question, Code Enforcement will report to the Board of County Commissioners annually and upon request a report outlining the outstanding total amount of fines, amount of invoiced costs incurred by the County for abatement related services, whether the property is protected by homestead and whether the violation has been abated. This will allow the Board to direct any necessary corrective action using any legal means possible. FISCAL IMPACT: None at this time. GROWTH MANAGEMENT IMPACT: None at this time. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for Board approval. CK RECOMMENDATION: To adopt a Resolution updating the policies relating to code enforcement liens, direct staff to revisit its procedures for prosecuting code enforcement cases, and direct staff to discuss with the Code Enforcement Board and Special Magistrate the parameters for the imposition of fines for code violations during the upcoming public meetings. Prepared by: Commissioner Rick LoCastro, Chairman, District 1 ATTACHMENT(S) 1. Resolution - Code Lien Relief Program - rev. 4.14.23 (PDF) Packet Pg. 22 10.A 05/09/2023 COLLIER COUNTY Board of County Commissioners Item Number: 10.A Doc ID: 25365 Item Summary: Recommendation to adopt a Resolution updating the policies relating to code enforcement liens, direct staff to revisit its procedures for prosecuting code enforcement cases, and direct staff to discuss and reinforce with the Code Enforcement Board and Special Magistrate the parameters for the imposition of fines for code violations. (Sponsored by Commissioner LoCastro) Meeting Date: 05/09/2023 Prepared by: Title: Operations Analyst — Planning Commission Name: Diane Lynch 04/26/2023 5:03 PM Submitted by: Title: Department Head - GMD — Growth Management and Community Development Department Name: James C French 04/26/2023 5:03 PM Approved By: Review: Code Enforcement Thomas landimarino Additional Reviewer Code Enforcement Michael Ossorio Additional Reviewer Growth Management and Community Development Department Diane Lynch Growth Management and Community Development Department James C French County Attorney's Office Office of Management and Budget County Attorney's Office Office of Management and Budget County Manager's Office Board of County Commissioners Colleen Kerins Level 2 Attorney Review Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Laura Zautcke Additional Reviewer Ed Finn Level 4 County Manager Review Geoffrey Willig Meeting Pending Completed 04/27/2023 8:28 AM Completed 04/28/2023 10:32 AM Growth Management DepartmentCompleted 05/01/2023 11:30 AM Growth Management Completed 05/01/2023 3:00 PM Completed 05/02/2023 9:09 AM Completed 05/02/2023 9:11 AM Completed 05/02/2023 9:48 AM Completed 05/02/2023 10:29 AM Completed 05/03/2023 4:08 PM 05/09/2023 9:00 AM Packet Pg. 23 10.A.1 RESOLUTION NO.2023 - A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, REPEALING AND REPLACING RESOLUTION NO. 2012-46, THE CODE ENFORCEMENT LIEN RELIEF PROGRAM. WHEREAS, Article VIII, Section 1, Fla. Const., provides the Board of County Commissioners (hereinafter "Board") as the governing body of Collier County, with powers of self-government as provided for by general or special law; and WHEREAS, certain of these powers have been enumerated in Section 125.01(1), Fla. Stat., to include: (1) the power to adopt resolutions necessary for the exercise of its powers and prescribe fines and penalties for the violation of ordinances in accordance with law, and (2) the power to perform any other acts not inconsistent with law; and WHEREAS, Section 125.01(3), Fla. Stat., provides all implied powers necessary or incident to the carrying out of the powers in Section 125.01, and states that Section 125.01 shall be liberally construed in order to effectively carry out the purposes of this section and to secure for the counties the broad exercise of home rule powers; and WHEREAS, the County Manager is responsible for the administration of all departments of the county government which the Board has authority to control pursuant to Chapter 125, Part III, the general laws of Florida and other applicable legislation; and WHEREAS, pursuant to Chapter 162, Fla. Stat., the Collier County Code Enforcement Board and Special Magistrate may, upon factual findings of a violation and the violator's failure to correct or abate the violation pursuant to a previous Order by the Code Enforcement Board or Special Magistrate, impose fines, and costs to repair, by virtue of an Order Imposing Fine/Lien; and WHEREAS, Section 162.09, Fla. Stat., provides that the Code Enforcement Board or Special Magistrate may authorize the Office of the County Attorney to foreclose the lien or to sue to recover a money judgment for the amount of the lien in the event the fine/lien remains paid three months after recording of the Order Imposing Fine/Lien; and WHEREAS, Section 162.09, Fla. Stat., also authorizes the County to petition the court for enforcement of the order imposing fine and further provides for execution and levy to the same extent as a civil judgment; and WHEREAS, foreclosure, execution and levy, or suits for money judgments, are often not effective methods for the recovery of code enforcement liens; and WHEREAS, Collier County adopted Resolution No. 2012-46 to establish criteria for the Code Enforcement Director with respect to the reduction Code Enforcement liens; and WHEREAS, Resolution No. 2012-46 was adopted in part to help deal with the foreclosure crisis [04-CED-01058/1785212/11 Packet Pg. 24 10.A.1 that resulted from the Great Recession, and WHEREAS, utilizing the most cost-effective means of enforcing and collecting code enforcement fines and liens imposed by the Collier County Code Enforcement Board or Special Magistrate is in the best interest of the County; and WHEREAS, with changing times the Board finds that updating and amending the Code Enforcement Lien Relief Program for Collier County is in the public interest and in the best interest of the health, safety and welfare of the citizens of Collier County by encouraging property owners to bring the property into compliance with County codes. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMIMSSIONERS OF COLLIER COUNTY, FLORIDA, that: 1. The County Manager or his/her designee (hereinafter the "County Manager") shall c� develop a formal, written application for use with the Lien Relief Program to be reviewed and N approved by the Board. Only liens resulting from code violations are eligible. M N 2. In order to qualify for the Lien Relief Program the following criteria must be met by the 7 applicant: A. The formal, written application shall be completed in its entirety and submitted to the County Manager. The County Manager may request additional information in order to process the application. All code liens associated with the applicant's parcel shall be included in the application. B. The non-refundable application fee for the lien reduction of $150 shall be paid upon submittal of the application. The application fee is meant to offset the County's cost in evaluating the application, including the need to review case files and the compliance status of the property. C. All administrative fees and hard costs associated with the code lien(s) must be paid at the time of the submission of the application. D. The underlying violation(s) that resulted in the fine/lien must have been abated or corrected and the fine/lien amount is fixed and no longer accruing on a periodic basis. E. As part of the application, the applicant shall provide a list of all properties owned by the applicant. The applicant must not have any active code violations on any other property in Collier County. F. All ad valorem property taxes, special assessments, Collier County utility charges or other Collier County fees or liens against the subject real property and all other properties owned by the applicant must be current. G. There are no expired permits on the subject property or any property owned by the [04-CED-01058/1785212/1 ] [04-CED-01058/1785212/1 ] Packet Pg. 25 10.A.1 applicant or managing member of the applicant in the county. H. The property is being used consistent with the permitted uses and is in compliance with the zoning laws of the County. I. If the applicant for the Lien Relief Program is a new owner the application must include the title insurance policy and closing documents related to the purchase of the property. If the title policy noted the outstanding code lien, or if the applicant failed to obtain a title report prior to purchase, a lien reduction may not be granted. 3. The County Manager shall review the application to determine if the applicant is eligible for the requested relief prior to making a recommendation to the Board of County Commissioners. The recommendation may be to approve or deny the request or to approve the request with conditions. Before a lien settlement is recommended to the Board, the following conditions must be taken into consideration: A. Lien amount is fixed and no longer accruing on a periodic basis. N M B. Underlying violation(s) resulting in the lien has been abated. N C. History of violations involving the applicant. D. Extent to which payment of the full lien would impose a severe financial hardship on the property owner and the measurable expenses incurred when bringing the property into compliance. E. The diligent pursuit of the applicant to bring the property into compliance. 4. If the recommendation is for approval, the lien shall be reduced to a sum not to exceed ten percent (10%) of the market value of the property. The "market value" shall be the Collier County Property Appraiser's market value established at the time of filing a fully completed application for a lien reduction and payment of the applicable fee. If the applicant has been found to have repeat violations as determined by the Code Enforcement Board or Special Magistrate at the subject property or any other property within the last 5 years, the reduced lien shall not exceed twenty percent (20%) of the market value of the property as determined by the most recent value as set forth by the Collier County Property Appraiser. 5. The Board, on good cause shown, may elect to deny any recommendation for approval, or impose conditions for approval it deems appropriate. The Board may deny any application made one year after the recording of the lien. 6. Once a code enforcement lien has been compromised by Board approval and full payment of the compromised amount has been received by the County, as verified by the County Manager, a Satisfaction and/or Release of Lien shall be prepared for the Board Chairman's signature. Within thirty (30) days of Board approval, and upon payment of the reduced lien, the County Manager shall effectuate recording of the releasing instrument. If [04-CED-01058/1785212/1 ] [04-CED-01058/1785212/1 ] Packet Pg. 26 10.A.1 payment is not timely received, the application will be deemed denied ab initio and no reduction shall take place. 7. The County Manager shall report annually and upon request to the Board of County Commissioners with a report containing the code case information, amount of invoiced costs incurred by the County for abatement related services, total amount of fines accrued, whether the property is homestead property and whether the underlying violation has been abated. 8. In addition to the reduction of liens described above, the County Manager shall be authorized to execute a release of a code lien which has been deemed by the County Attorney's Office to be legally unenforceable or uncollectible in that the statute of limitations relating to the lien has expired; the lien was properly foreclosed by order of an appropriate court with jurisdiction; the lien was properly discharged in a bankruptcy proceeding by order of a bankruptcy court; the property encumbered by the lien is currently owned by the county; and for any other reason as determined by the County Attorney that establishes the legal unenforceability or uncollectibility of a lien. If issued, the county shall record the release of lien in the official records for the county. 9. Nothing contained herein is intended or shall be construed to create any rights, entitlements or remedies to the enforcement and collection of a code enforcement lien in a particular manner by any person or entity. The procedures in this Resolution are not intended to create additional substantive rights or procedural due process rights as the considerations and determinations within this Resolution are administrative actions as to whether to accept less for a debt owed to the County. 10. Resolution No. 2012-46 is hereby repealed in its entirety and superseded by this Resolution. THIS RESOLUTION ADOPTED upon majority vote this day of , 2023. ATTEST: BOARD OF COUNTY COMMISSIONERS Crystal K. Kinzel, Clerk of Courts COLLIER COUNTY, FLORIDA , Deputy Clerk Rick LoCastro, Chairman Approved as to form and legality: Jeffrey A. Klatzkow, County Attorney CO) N [04-CED-01058/1785212/1 ] [04-CED-01058/1785212/1 ] Packet Pg. 27