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Agenda 01/27/2009 Item #10D Agenda Item No. 100 January 27, 2009 Page 1 of 26 EXECUTIVE SUMMARY Presentation to the Board of County Commissioners regarding Code Enforcement Department actions and programs implemented due to the adverse impacts of the escalating foreclosures within the unincorporated area of the County and to address Code Enforcement violations on lis pendens / foreclosed properties in unincorporated Collier County. OBJECTIVE: To brief the Board of County Commissioners (Board) on the process and procedures utilized by the Code Enforcement Department that have successfully addressed situations where lis pendens have been filed against certain properties and properties involved in foreclosure proceedings both of which have code violations and to seek further guidance as to whether the current actions are sufficient to meet the Board's guidance from the September 9, 2008 BCC meeting. CONSIDERATIONS: During the regular meeting of the Board of County Commissioners on July 9, 2008 under Item 11, Public Comment, Mr. Steve Harrison, citizen and former banker and real estate agent, gave a presentation on the potential impacts of the escalation of foreclosures in Collier County and petitioned the Board to consider developing a proactive program to assure that responsibility is placed on responsible entities to ensure that abandoned properties are secured and maintained within acceptable community standards. Following that presentation, at the September 9, 2008 Board of County Commissioner meeting under Item IDE (agenda item enclosed) staff presented a briefing regarding the then current actions and shortfalls of the Code Enforcement Department and the Sheriffs Office related to dealing with the influx of foreclosed residential properties within the County. As part of that presentation .~ staff recommended the creation of an ordinance to require the registration of abandoned real property by any mortgagee who holds a mortgage on real property located within the unincorporated area of the County and to require periodic inspection of the property. In addition, the ordinance would require that properties be kept free of overgrown brush, dead vegetation, trash, junk, debris, building materials, etc., that give the appearance that the property is abandoned. The property shall be: I. Maintained free of graffiti or similar markings by removal or painting over with an exterior grade paint that matches the color of the exterior shucture. 2. Front, side, and rear yard landscaping shall be maintained in accordance with the County's standard at the time regish'ation was required. 3, Landscaping materials will not include weeds, gravel, broken concrete, asphalt or similar material. 4. Maintenance shall include, but not be limited to, watering, irrigation, cutting, and mowing of required landscape and removal of all trimmings. 5, Pools and spas shall be maintained so the water remains free and clear of pollutants and debris and pools and spas shall comply with the enclosure requirements pmsuant to the Florida Building Code. Since that presentation, the Code Enforcement Department staff working with representatives of the Chamber of Commerce, representatives of the community and area civic associations, and bank representatives developed and implemented a process to eliminate code violations on properties that had been foreclosed and bank owned and/or in the foreclosure process. The process as outlined on the attached flow chart is now firmly in place and as implemented meets all the noted objectives of the progranl as presented to the Board and as such negates any need to implement a costly and Agenda Item NO.1 00 January 27, 2009 Page 2 of 26 administratively burdensome registration program thus allowing the staff to focus its limited resources on enforcement of the property maintenance requirements rather than on the enforcement of the registration process. Under the program now in place, the Code Enforcement Area Investigator completes the initial investigation of a complaint on noted vacant unit or a unit identified as in the foreclosure process and determines that a violation of County codes and/or ordinances exists. The Investigator researches the property ownership and Clerk of Courts records to determine whether the property is in some stage of foreclosure. If a lis pendens has not been filed against the property (publicly recorded notice of a pending lawsuit against a property owner) or not in foreclosure, the area Investigator handles the case. If a lis pendens has been filed or the property is in foreclosure, the case is turned over to the Code Enforcement Foreclosure Team. The Foreclosure Team initiates immediate contact with the appropriate bank representative and notifies them of any cited code violations as well as all applicable ordinances and codes and what is required to abate the violation(s). The Code Enforcement Department is experiencing significant success with gaining bank cooperation in abatement of violations even with the out-of-state banking and mortgage institutions. The majority of bank owned properties in Collier County are with out-of-state banks. Each Code case involving representatives of the bank is tracked and progress updates are made daily. This process has fostered cooperation with key contacts (including bank representatives, local and national servicing companies, real estate agents, and attorneys), and has resulted in 100% compliance by the banks when advised of a Code violations(s). It has generated a buy-in from bank representatives and community members alike as the bank representatives receive prompt and concise information about their property asset(s) and what needs to be done to maintain them and the community members see visible improvements and the integIity of their neighborhood/community maintained. The benefits of addressing the Code violations in this way has resulted in: prompt abatement of the violations funded by the bank, avoiding worsening conditions and maintaining the integIity of the community, presenting the property in sellable condition for prospective buyers, and conveying a clear title. In the event the bank may not agree to abate the violation(s), the County would initiate actions under its current property maintenance process to abate the violations and subsequently place a lien on the property for administrative and contractor abatement costs. To date, more than 45 Code violations have been abated utilizing established bank contacts. The cost savings to the County, by not expending County funds to abate, exceeds $35,000. In addition, five Community Task Force teams meet monthly to discuss issues affecting the area and report properties that may have possible Code violations. The teams serve the areas of North Naples, East Naples, Golden Gate, Golden Gate Estates, and Immokalee and are comprised ofrepresentatives from the Sheriff's Office, Fire Department, Civic and Homeowner Associations, Utilities, Domestic Animal Services, CRA, and Code Enforcement. A master Community Caretaking List of properties, generated from the five Community Task Forces, is maintained and a status report is provided at the monthly meetings. ConsideIing the ongoing successes of the programs now in place, staff is recommending that the Board support the current approach in dealing with the impacts of foreclosed units and that the Board direct staff to not formally develop a foreclosure registration ordinance as previously recommended. FISCAL IMPACT: There has been no unbudgeted fiscal impact as a result of the significant increase in lis pendens / foreclosed properties within unincorporated Collier County. Agenda Item NO.1 OD January 27, 2009 Page 3 of 26 GROWTH MANAGEMENT IMPACT: This program has no impact on the County's Growth Management Plan. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney Office and is sufficient for Board action. This item is not quasi-judicial and thus requires no ex parte disclosure. Additionally, this item requires a simple majority vote. (MMSS) RECOMMENDATION: That the Board concurs with the existing programs put in place by the Code Enforcement Department to address Code Enforcement violations on lis pendens I foreclosed properties in unincorporated Collier County and in doing so concur with staff's proposal to not develop a formal foreclosure registration ordinance. PREPARED BY: Mario Bono, Investigator-Foreclosures, Code Enforcement Department and Michaelle Crowley, Investigator-Foreclosures, Code Enforcement Department Item Number: Item Summary: Meeting Date: Page ] of 1 Agenda Item No. 100 January 27, 2009 Page 4 of 26 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 10D Briefing to the Board of County Commissioners in regard to the Code Enforcement departments process to address Code Enforcement violations on lis Pendens / Foreclosed properties In unincorporated Collier County (Diane Flagg, Director. Code Enforcement. CDES) 1/27/200990000 AM Pn=pared By Marlene Serrano CDES Investigative Supervisor Code Enforcement Date 12/31/20085:11:06 PM Approved By Judy Puig Community Development & Environmental Services Operations Analyst Community Development & Environmental Services Admin. Date 1/7/20099:31 AM Approved By Diane B. Flagg Community Development & Environmental Services Code Enforcement Director Date Code Enforcement 1/7/200911:49 AM Appro\'cd By Joseph K. Schmitt Community Development & Environmental Services Community Development & Environmental Services Adminstrator Date Community Development & Environmental Services Admin. 1/8/20097:46 PM Approved By Jeff Klatzkow County Attorney Assistant County Attorney County Attorney Office Date 1/14120095:16 PM Approvcd By Marjorie M. Student~Stirling County Attorney Assistant County Attorney County Attorney Office Date 1/15/20093:01 PM Approved By OMS Coordinator County Manager's Office OMS Coordinator Date Office of Management & Budget 1/15/20093:26 PM Approved By Mark Isackson County Manager's Office Budget Analyst Office of Management & Budget Date 1116/200910:56 AM Approved By James V. Mudd Board of County Commissioners County Manager Date County Manager's Office 1/17120091 :42 PM file://C:\Agenda T est\Export\ 122-J anuary%2027, %202009\ 1 O. %20COUNTY%20MANAGE... 1/21/2009 0> Q OO)~ DO"" ~D~ .N~ ~~-f E>,OJ Q)~'" ==~o.. ",C -0'" C-, Q) OJ <( ""'" ~ o C':l N ..t: OJ :::I o .... ..t: - ~ o o C':l IIIN III III Gl Gl Uu o c: .... III o..c: Gl'- >'E ~O OJ" +:oc: III III Gl III > s: .E1Il Gl..J ........ :::I 0 III .E~ u 0 ~U 0" LLc: III N to ~ Gl - :::I 1ii - en III " .;;: o LL Oll Oleo l!!Q ~~ c~ ~I~ -f:j '" t'; .. all) "'-;; <>:0 'i l ~ R .." 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'-1 j 1 J ., , 'j l 1 1 j j J 1 j " l --, I I j 'j j J 1 EXECUTIVE SUMMARY Agenda Item No. 100 January 27,2009 '" _ Page 6 of 26 I N~Gt:"'rt.S\ I SEP () " 200~ I pg_2.~ to v 10 ;:, 0_- Recommendation tbat tbe Board of County Commissioners provide the County Manager or his designee direction as to bow to proceed regarding tbe potential adverse impacts of the escalating forC<!losures wltbin the unincorporated area of tbe county OBJECMVE: To have the Board of County Commissioners (BCC) provide the County Manager Dr his designee direction as to what actions to take related to the escalation of foreclosures within Collier County and the potential negative impacts that abandoned real properties may have on the community_ CONSIDERATION: During the regular meeting of the Board of County Commissioners on July 9, under Item 11, Public Comment, Mr. Steve Harrison, citizen and former banker and real estate agent, gave a presentation on the potential impacts of the escalation of foreclosures in Collier County and petitioned the Board to consider developing a proactive program to assure that responsibility is placed on responsible entities to ensure that abandoned properties are secured and maintained within acceptable community standards, Attached enclosures I through 4 are the materials that Mr. Harrison passed out during his presentation. After a lengthy discussion on the issue, the Board directed staff to asses the extent of the problem within the community, the current programs and initiatives that are dealing with the problem and any recommendations that may be needed to bolster the existing programs. Mr, Harrison noted during his presentation that there are approximately 700 homes per month being recorded for foreclosure and that there could be as many as 8,000 foreclosures this year within the county, Based on the Board's discussion and direction, Deputy County Manager Leo Ochs subsequently hosted a meeting between Mr, Harrison, staff, and representatives of the Collier County Sheriff's Office to discuss the existing programs and the potential shortfaHs in the county's existing program, Exist;n\! Pro~s I. Sheriff's Office. The Sheriff's Office recently initiated a "Community Care-Taking Initiative" program in an effort to empower residents by providing information, resources and referrals to identify and solve problems in their communities. One of the fundamental initiatives of this program was to identify abandoned properties and assess the potential for criminal activity at those properties. Once identified, the deputies working in cooperation with code enforcement actively monitor the properties and where warranted take action to reduce the potential for criminal activities and/or blight within the community. 2, Code Enforcement. Currently the Code Enforcement Department has two separate but related programs that empower the code enforcement officers to enforce real property standards that may arise as a result of a property foreclosure - The Property Maintenance Program and the Nuisance Abatement Program. j I j 1 1 I 1 , i , I 'I I 1 I 1 '1 I Agenda Item No. 100 IJd~~~~j\; f SEP o~. lOr . pg--~~:f.J J' a. The authorities granted under Ordinance 2004-58. Property Maintenance Ordinance, -- codified in Chapter 22, Buildings and Building Regulation, Article VI, Property Maintenance Code, of the Collier County Code of Laws and Ordinances (enclosure 5) does provide some powers to deal with vacant and abandoned real property but only in a reactive mode, that is once the property is identified to be a nuisance, and was written primarily to insure that rental properties are within required health and safety standards. Section Nine of the code authori:!:es the county can take action to inspect a property to insure that the property is in compliance with the provisions of the property maintenance code but only at the consent of the owner or owner's agent. Section Twelve authori:!:es the county to direct the repair or demolition of properties in violation of the code and Section Seventeen controls the issuing of a boarding certificate to board windows and doors for securing the building or structure. Though effective for assuring that properties are maintained within acceptable community standards and for assuring that certain properties do not create blight on the community, the program is strictly reactive only. b. The authorities granted Ordinance 2005-44, Litter, Weed and Exotics Ordinance codified in Chapter 54, Article VI, Litter, Weeds, and Exotics Control; Section 54- 179, Litter declared to be a Public Nuisance; Section 54-18], Unauthori:!:ed accumulation of liter; Section 54-184(a), Waste materials management; Section 54- 185(a through f), Declaration Dfpublic nuisance; and Section 54-193, Procedures for mandatory lot mowing provide additional powers to deal with these related issues that arise from foreclosures (enclosure 6). As with the Property Maintenance Ordinance, these programs are re-active, that is through complaints forwarded to Code Enforcement by constituents or by observation of a code investigator during routine patrols. The Code Enforcement Department currently has a total of 3,225 cases currently open which includes cases involving foreclosures. The Code Enforcement Department abates code violations following proper notice of the property owner. Abatement of violations includes demolition of a structure, removal of litter, boarding of a structure, mowing of a property etc. As a proactive approach to recoup the abatement costs incurred by the County, the Code Enforcement staff has implemented a process to identify pending foreclosures. Code Enforcement staff reviews the Clerk of Courts records to identify pending foreclosures, Notice of Lis Pendens, for all open Code Enforcement cases. For the cases with a pending foreclosure, a copy of .the legal enforcement notices are sent to both the property owner and the bankJmortgage holder. Although there is no legal requirement at this point in tI1e process, some banks/mortgage holders are paying the costs incurred by the County prior to the completion of the foreclosure by the bankJmortgage holder. Additionally, the County files a lien against the properly which includes the costs the County expended for abatement. 3. Affordable Housing Efforts. Housing and Human Services (HHS) has developed and is implementing two strategies to address the current foreclosure issue in Collier County. The first strategy which utilizes SHIP (State Housing Initiative Partnership) funds was approved by the Board on July 22, 2008. In this strategy, not for profits can apply for up to $50,000 to purchase and rehabilitate a foreclosed property. The second strategy will utilize Housing and ~~ :1 , 1 1 I , , 1 j I , I l ,1 j ! ;i , J , 1 1 'i -1 I I i j j Agenda Item No. 10D (Ji7 2009 ~ili~C. No. 1L';"1lji1.fl\.< (be: ":'J SEP () G ZOO~ Pg c;- () +- b Urban Development CDBG (Community Development Block Grant) funds and ~as ~~~-=.. by the Board on April 22, 2008, For this strategy, Housing and Human Services has identified almost $1. 7 million dollars to reprogram for the acquisition, rehabilitation and resale of foreclosed properties. HHS advertised a Request for Proposals for interested for profit and not for profit organizations to apply for the funding. Three projects were selected are being presented to the BCC on September 9, 2008. It is expected that between the two programs, approximately 30 homes will be refurbished and sold to income qualified buyers and additional dollars will be recaptured to continue the program in 2009-10. Shortfalls ; .1 I I , ; , , I I I 1 Staff as well as the Sheriff's Office recognized that there are legal limits as to how much government can do to deal with this problem and staff noted that in many cases the first line of defense falls on the homeowners, property or condominium association. The existing problems within the county are in communities where there are no associations and that are outside planned and gated developments, The group concluded that it is important for the County to establish a proactive process to address the amount of abandoned real property within the county as there has been a noticeable increase of vacant and abandoned properties due to the increasing number of foreclosures, The presence of vacant and abandoned properties can lead to declines in property value, creale attractive nuisances and lead to a general decrease in neighborhood and community aesthetics. Many of the vacant and abandoned properties are the responsibility of out-of-state lenders and trostees who often fail to adequately secure and maintain properties that have been returned to the lender as a result of a foreclosure or public sale. The existing codes and programs are reactive in nature to deal with the properties once they fall into disrepair or if owners fail to maintain the property, The following are proposed programs that could become amendmcnts to the property maintenance code or that could be placed in a separate abandoned property ordinance (see enclosure 7 for details). Considerations . Create a program to require the registration of abandoned Real Property. Any mortgagee who holds a mortgage on real property located within the unincorporated area of the county will be required to perform an inspection of the property that is the security for the mortgage, upon default by the mortgagor, prior to the issuance of a Notice of Default. If the property is found to be vacant or shows evidence of vacancy, it shall be deemed abandoned and the mortgagee shall, within ten (10) days of the inspection, register the property with the county and filed with Code Enforcement and the Sheriff's Office. Properties subject to this requirement would remain under the annual registration requirements, security and maintenance requirements as long as the propcrty remains vacant. Rcgistrations would include the name of the mortgagee, the direct mailing address of the mortgagee, a direct contact name and telephone number of mortgagee facsimile number and e-mail address and, in I 1 J ~ I I 'I j , "j l , , 1 j 'I 1 i J ] II , " " J .ej ~ ;1 Agenda Item NO.1 OD 1':~le~,7~,":: ::it/"' :J C' 2DDR I Pg~ ,(0 10+' the casc of a corporation or out-of-area mortgagee, the local property management companr' ..~, responsible for the security and maintenance of the property. Consider an annual registration fee in the amount of $1 50,00, per property to cover the costs of administering the program. . Enhance property maintenance requirements to include: In addition to requiring that properties be kept free of overgrown brush, dead vegetation, trash, junk, debris, building materials, etc., that give the appearance that the property is abandoned, the property shall be: 1. Maintained free of graffiti Dr similar markings by removal or painting over with an exterior grade paint that matches the color of the exterior structure. 2. Front, side, and rear yard landscaping shall be maintained in accordance with the county's standard at the time registration was required. 3. Landscape will not include weeds, gravel, broken concrete, asphalt or similar materiaL 4. Maintenance shall include, but not be limited to, watering, irrigation, cutting, and mowing of requited landscape and removal of all trimmings. 5. Pools and spas shall be maintained so the water remains free and clear of pollutants and debris and pools and spas shall comply with the enclosure requirements pursuant to the Florida Building Code. Failure of the mortgagee and/or property owner of record to properly maintain the property may result in a violation of the County Code and issuance of a citation or Notice of Violation by the Collier County Code Enforcement Department. . Security Requirements Properties must be maintained in a secure marmer so as not to be accessible to unauthorized persons. A "secure manner" shall include, but not be limited to, the closure and locking of windows, doors, gates and other openings of such size that may allow a child to access the interior of the property and/or structure. Broken windows shall be secured by replacing windows or by the boarding of the window, Property that is owned by a corporation and/or out of area mortgagee, a local property management company shall be contracted to perform bi-weekly inspections to verity compliance with the requirements of this section, and any other applicable laws. FISCAL IMP ACT: Any program to require a mandatory registration of foreclosure properties would require a minimum of2 additional FTE at estimated costs of$11 0,000. GROWTH MANAGEMENT IMPACT: None. I l 1 j i 1 j , i j j I 1 i j 1 I ,j 1 I I j 'I 1 1 j j 'I 1 1 1 ":1 i i 1 1 1 ! . I , I I I I , , ,~ :1 I I I I I I , i I j 1 1 LEGAL CONSIDERATIONS: The Office of the County Attorney will work with staff to implement Board direction to the extent legally pennissible, -JAK RECOMMENDATION: That the Board of County Commissioners provide the County Manger or his designee direction as to how to proceed regarding the potential adverse impacts of the escalating foreclosures within the unincorporated area of the county, PREPARED BY; Joseph K. Schmitt, Administrator, COES , , 1 j I I ! , i Agenda Item NO.1 00 January 27,2009 AG- 110f26 No_ cNi.iJ.', llEM--' S. iOC?l < EPJ C; 20n~ IP 5C -, Enclosure 2. __r;;";o,:~~L"":f 6 Conceotual amendments to Ordinance 2004-58. Prooertv Maintenanee -.-;;:... Ordlnanee to address the Issues related to foreclosures Definitions Abandoned real property means any property that is vacant and is under a current Notice of Default and/or Notice of Mortgagee's Sale by the lender or a pending Tax Assessors Lien Sale and/or properties that have been the subject of a foreclosure sale where the title was retained by the beneficiary of a mortgage involved in the foreclosure and any properties transferred under a deed in lieu of foreclosure or sale, Acxessib/e property means a property that is accessible through a comprisedlbreached gate, fence. wall, etc. I 1 I , I , , ! i I i ! '. I I , .. I 1 Accessible structure means a structurelbuilding that is unsecured and/or breached in such a way as to allow access to the interior space by unauthorized persons. Evidence of vacancy means any condition that on its own, or combined with other conditions present would lead a reasonable person to believe that the property is vacant. Such conditions may include, but not be limited to, overgrown and/or dead vegetation, accumulation of abandoned real propeny, as defined herein, statements by neighbors, passers-by, delivery agents or government agents, among other evidence that the property is vacant. Foreclosure means the process by which a property, placed as security for a real estate loan, is sold at public sale to satisfy the debt if the borrower defaults. i j i i 1 I j j Enforcement officer means any fulltime law enforcement officer, building official, zoning inspector, code enforcement officer, fire inspector or building inspector employed within the city. 1 i . 1 1 I :1 j 'I , , 'j j I I :1 , j j j i J I , Agenda Item No. 100 li.Jdl.~~7 ?009 N. 1~~A):~~~-.. JOg SEt 0';: ;";'" ( -",",..jeL D-1 " Properly management company means a local property manager, property maintenance . '"::.':,~-_ company or similar entity responsible for the maintenance of abandoned real property. Vacant means any building/structure that is not legally occupied, 1. Ret!istration of Abandoned Real Pronertv (a) Any mortgagee who holds a mortgage on real property located within the unincorporated area of the county shall perform an inspection of the property that is the security for the mortgage, upon default by the mortgagor, prior to the issuance of a Notice of Default. If the property is found to be vacant or shows evidence of vacancy, it shall be deemed abandoned and the mortgagee shall, within ten (10) days of the inspection, register the property with the County Manager, or his or her designee, on forms provided by the County, A registration is required for each vacant property. i i -) (b) If the property is occupied but remains in default, it shall be inspected by the mortgagee or his designee monthly until (I) the mortgagor or other party remedies the default, or (2) it is found to be vacant or shows evidence of vacancy at which time it is deemed abandoned, and the mortgagee shall, within ten (10) days of that inspection, register the property with the County Manager or his or her designee. (c) Registration pursuant to this section shall contain the name of the mortgagee, the direct mailing address of the mortgagee, a direct contact name and telephone number of mortgagee facsimile number and e-mail address and, in the case of a corporation or out-of-area mortgagee, the local property management company responsible for the security and maintenance of the property. "I i I I j , 'j ! 1 I 1 ,) , j i J , j :t j , 'I t 'j :1 1 I (d) An annual registration fee in the amount of $150.00, per property, shall accompany the registration fonn(s). (e) This section shall also apply to properties that have 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 deeu in lieu of foreclosure/sale, (I) Properties subject to this section shall remain under the annual registration requirement, security and maintenance standards of this section as long as they remain vacant. (g) Any person or corporation that has registered a property under this section must report any change of infonnation contained in the registration within ten (10) days of the change, 2. Maintenance Reauirements. , I i 1 1 i '! j l j , I ! i I i i I I , Agenda Item No. 10D January 27.2009 AGE~t~ 1'~elV1:rm26 No, E ~ " , ,'I:. cg , ~c~~ .'L ,~-t'.~_ a) Properties subject to this chapter shall be kept free of overgrown brush, dead vegetation, trash, junk, debris, building materials, any accumulation of newspapers, circulars, flyers, notices, except those required by federal, state, or local law, discarded personal items included, 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. (b) The property shall be maintained !Tee of graffiti or similar markings by removal or painting over with an exterior grade paint that matches the color of the exterior structure. (c) Front, side, and rear yard landscaping shall be maintained in accordance with the county's standard at the time registration was required. (d) Landscape shall include, but not be limited to, grass, ground covers, bushes, shrubs, hedges or similar plantings, decorative rock or bark Dr artificial turf/sod designed specifically for residential installation. Landscape shall not include weeds, gravel, broken concrete, asphalt or simi lar material. (e) Maintenance shall include, but not be limited to, watering, irrigation, cutting, and mowing of required landscape and removal of all trimmings. I , i " 1 I J I j i , 'j I i i (I) Pools and spas shall be maintained so the water remains free and clear of pollutants and debris. Pools and spas shall comply with the enclosure requirements of the Florida Building Code, as amended from time to time. (g) Failure of the mortgagee and/or property owner of record to properly maintain the property may result in a violation of the County Code and issuance of a citation or Notice of Vi oJ at ion by the Collier County Code Enforcement Department. 3, Security Reauirements (a) Properties subject to this section shall be maintained in a secure manner so as not to be accessible to unauthorized persons. " ,I J I ! 1 j I 1 I ! , 1 I ! , i I 1 i (b) A "secure manner" shall include, but not be limited to, the closure and locking of windows, doors, gates and other openings of such size that may allow a child to access the interior of the property and/or structure. Broken windows shall be secured by reglazing or boarding of the window. (c) lfthe property is owned by a corporation and/or out of area mortgagee, a local property management company shall be contracted to perfonn bi-weekly inspections to verifY compliance with the requirements of this section, and any other applicable laws. I I j I 1 , , l :) I I j . ! SEt- '.. '",,,, ,. 11,1 Pg ~.2. ~~:f- bz ~ (d) All property must be managed by a local agent of a bank Dr finance coropany--::':=- or by a local property management company located in Collier County and holding a Collier County Business License, The local agent will be named in any legal action taken by the mortgagee. If no Agent appointed within 30 days of registration, Code Enforcement may appoint local agent The local agent: I) Will prepare a HUD or similar property investigation report, 2) Will conduct mandatory bi-weekly inspections with records of inspections available to Code Enforcement 3) Is subject to fine if property misrepresented (e) The property shall be posted with the name and twenty-four (24) bour contact phone number of the local properly management company. The posting shall be no less than an eight-inch by ten-inch sign. The posting shall contain the following language: , "- ,~ J 1 I j 1 , j I i J / 1HIS PROPERTY IS MANAGED BY: TO REPORT PROBLEMS OR CONCERNS CALL: 1 J 1 j j 1 , J I 1 1 j 1 I j The posting shall be placed on the interior of a window facing the street to the front of the property so it is visible, or secured to the exterior of the building/structure facing the street to the front of the property so it is visible or, if no such area exists, on a stake of sufficient size to support the posting in a location as close as possible to the main door entrance of the property. Exterior posting shall be constructed of and printed with weather-resistant materials. - I (f) The local property management company shall inspect the property on a bi- weekly basis to ensure that the property is in compliance with this chapter. Upon the request of the county, the local property management company shall provide a copy of the inspection reports to the code enforcement division. (g) Failure of the mortgagee and/or property o\\ner of record to properly maintain the property may result in a violation of the County Code and issuance of a citation or Notice of Violation/NDtice of Hearing by a the Code Enforcemem Department. Pursuant to a finding and determination by the County's Special Magistrate, the County may take the necessary action to ensure compliance with this section. I , I 1 j j i I :1 Agenda Item No. 100 January 27,2009 Page 15 of 26 September 9-10, 2008 COMMISSIONER COYLE: Aye. COMMISSIONER HALAS: Aye. CHAIRMAN HENNING: Aye. COMMISSIONER FIALA: Aye. COMMISSIONER COLETTA: Aye. CHAIRMAN HENNING: Any opposed? (No response.) CHAIRMAN HENNING: Motion carries unanimously. , i j J ~ 1 Item #lOE ! '1 I i j I I :1 j i 1 , , PROVIDE THE COUNTY MANAGER OR HIS DESIGNEE DIRECTION AS TO HOW TO PROCEED REGARDING THE POTENTIAL ADVERSE IMPACTS OF THE ESCALATING FORECLOSURES WITHIN THE UNINCORPORATED AREA OF THE COUNTY - MOTION TO ACCEPT PROPOSED REHABILITATION PLAN BY CDES ADMINISTRATOR- APPROVED , MR. MUDD: Commissioner, that brings us to our next item ~ which is lOE. It's a recommendation that the Board of County : Commissioners provide the county manager or his designee direction I as to how to proceed regarding potential adverse impacts of the 11 escalating foreclosures within the unincorporated area ofthe county. Mr. Joe Schmitt will present. MR. SCHMITT: Again, good afternoon, Commissioners. Record, Joe Schmitt, Administrator of Community Development and Environmental Services Division. I won't go through great detail. This is as a result of a public petition from Mr. Steve Harrison on July 9th where he discussed the impacts of foreclosure in Collier County, Included in your packet and enclosures one through four or attachments one through four were the Page 227 Agenda Item No. 100 January 27,2009 Page 16 of 26 September 9-10, 2008 information -- or is the information that he provided. After that meeting and based on your direction, Deputy County Manager Leo Ochs convened a meeting with several of the impacted parties involved, primarily the Sheriffs Office, code enforcement, i folks in my staff, and, Leo, I think, Mr. Harrison was there and others, .i i yes. j And just to highlight, we have some programs ongoing. I can go ) into detail on those. Hopefully you read the executive summary. But we do have two standing ordinances, the property maintenance program and the nuisance abatement program. You had asked what we were doing. Most of what we do is reactive in nature. The Sheriffs Office certainly has a very robust program ongoing with -- called the community care taking initiative. Of course, we have our programs and affordable housing has theirs. Your main concern and I believe the concern that was raised by the community was the impact that these vacant properties would cause, a blight on the community and potentially be a potential for crime scenes or pilfering or other things on property. So bottom line, our shortfalls are pretty clear. We're pretty much reactive in nature. We -- I note that the first line of defense in many communities are your community HOAs or your condo associations that deal with foreclosures. Within those types of communities, mostly what you're talking about are those communities where there really is not a robust HOA, meaning that it has an oversight responsibility as a master association that manages the property. So we're talking primarily about those platted lots in the Estates and other areas of the county. The question to you is to consider, do we want to create a program where we require some type of registration for abandoned properties. Of course that would have to be handled through my code enforcement department, Properties that would be subject to this requirement would be properties that were identified which would be Page 228 Agenda Item No. 10D January 27,2009 Page 17 of 26 September 9-10, 2008 going through some type of foreclosure. j The registration would identify the name and the mortgagee or : other appointed representative responsible for the property and j provide the direct contact so that in case there's any type of property 1 issue, we can deal with it. , We're primarily looking at trying to maintain these properties as j if they are and look and appear like they're occupied. And that is in j your executive summary. I My proposal is, if you want us to pursue this through property i maintenance, that we look at amending the existing code, our property " i maintenance code, and include some kind of requirement, or I, in fact, can come back with a separate program dealing specifically with an ordinance dealing with foreclosures, and that would have security requirements as well. I've identified the potential could be as high as $150 per property. That's what other communities are assessing right now. It could be J.;.. less than that. We would have to look at the cost. I would note that J it'd probably be at least two FTE to manage this program. One specifically to deal with the registration and managing and monitoring the program and, of course, it's going to take your code enforcement assets to go out and manage the program as well. What I haven't addressed in here are the projects that are under construction. We have 148 products right now inactive construction 1 sites, sites that are -- have open permits but are inactive, meaning there \ has been no activity for at least six months. 1 And working with -- Bob Dunn is working with the CBIA. ; We're trying to create a program that would allow a contractor to :l j extends those permits for six months. We will have an inspection-- j we'll conduct an inspection which then validates the continuation of , ! those projects to remain open. We would do an -- they would call for j an inspection, of course, we would charge for that inspection, but it 1 would at least keep that permit active for six months. , 1 I j Page 229 , j ~ ~ I - j I l So we're looking at dealing with those sites that are, quote, under l.1 construction but inactive. This would be primarily dealing with those I sites that you've referenced that are -- that are homes, private homes, 1 condos or whatever, that may be abandoned or people walked away I because of a foreclosure or other financial problems. l l That concludes pretty much my presentation. I can go into detail ': if you wish. But subject to your questions, that concludes my l 1 presentation. J CHAIRMAN HENNING: Commissioner Fiala, Commissioner I Coyle. j j COMMISSIONER FIALA: My first one was with a mandatory I registration and $150, and I can see where that would be considered 1 fair except if the person's already losing their house because they can't l make the payment and they can't mow the lawn or anything, how can they pay $150? MR. SCHMITT: Understand, ma'am. This would be the bank or the managing company that would take over the property. You're right. It would not be the -- it would not be someone who's undergoing foreclosure. This would be after the property has been 1 abandoned and the bank has taken over the property. I COMMISSIONER FIALA: Okay. My second thing and my last 1 comment at this time is, you know, we -- we see that they are still ) building affordable housing out there when we have a plethora of I affordable housing units on the market under $100,000, hundreds of 1 them. And is there some way that we could discourage building any j more low-income housing until the ones that are already on the market I are sold so that, you know, possibly we could get those houses j inhabited again and maybe reduce blight in the neighborhoods and :1 give these people a neighborhood to live in? 1 You can go buy -- I was in one with a swimming pool and J everything, it was a beautiful little place; $90,000. Right over here I across the street, and three bedroom, one bath. 1 1 , , i I I Agenda Item NO.1 00 January 27, 2009 Page 18 of 26 September 9. J 0, 2008 Page 230 Agenda Item No. 10D January 27, 2009 Page 19 of 26 i 1 i .1 So I see that it -- I think it would be great if we could somehow j discourage building more low-income housing for -- and we'd have to ; defer the impact fees on that stuff anyway. Why not just have people buy the homes that are already on the market? MR. SCHMITT: Well, I think buying the homes on the market is certainly the answer. Number one, we don't have to deal with impact fees -- COMMISSIONER FIALA: Right. MR. SCHMITT: -- because the impact fees have already been paid and stay with the property. Number two, certainly the only way you -- to incentivize it -- but I guess to discourage future building of affordable housing, the only way you really could discourage it, if it's i already zoned, would be to put a cap on the deferrals. That would 1 : probably stop the people coming in and asking to build affordable I housing if the deferrals, which we're going to be tight with anyway-- j but certainly anything we can do to incentivize purchasing properties , that currently exist. i l The properties are out there, and I just -- I agree with you. I .11 think right now for some of these homes, what they're selling for, you 1 can't build a home for that square-foot value. I COMMISSIONER FIALA: Right. And then you have down : payment assistance from our -- j MR. SCHMITT: Yes. j COMMISSIONER FIALA: -- people in housing and -- housing l department, we have down payment assistance and dollars to help 1 them rehab those homes, < MR. SCHMITT: And Marco has those CBDG and other 1 programs that -- she's here to talk about those that incentivize to go out j and promote those properties turning around rather than building new .1,.. residential affordable housing. 1 COMMISSIONER FIALA: Yeah. I CHAIRMAN HENNING: Commissioner Coyle and J 1 I I September 9-10, 2008 Page 231 j J 1 1 , J l , j Commissioner Halas. 1 COMMISSIONER COYLE: Well, I like the structure you've 1 laid out here. You've already got a program where you're providing ,I incentives for people to rehabilitate these homes and sell them. MR. SCHMITT: Yes. COMMISSIONER COYLE: You're committing $1.7 million to 1,.,',,', that now, and you already have, what, I think three organizations, two ! nonprofits and one for-profit -- all nonprofits, okay. They're working , on that now. The only problem is that your estimate is about 30 j homes. I presume that's 30 homes per year? l MR. SCHMITT: I'll have to turn to Marcy for that. That's about I 1 what she's getting, yes. COMMISSIONER COYLE: But that's still not bad. You're taking at least 30 homes off the market that could be deteriorating. But here -- and I'd just like to make sure that the county attorney ,j can reassure us that we have the authority to charge registration fees 1 and we have the authority to force banks to hire a resident manager for I their foreclosed properties to make sure they're properly maintained I because here's what -- here's what happens. When the bank ].":,1, forecloses, they're probably going to turn off the power-- . COMMISSIONER HALAS: Right. j COMMISSIONER COYLE: -- and the water, air-conditioning is j going to be gone, mold is going to grow in these places. They're 1 going to require extensive renovation if people are going to inhabit ! them. There might be cases -- I'm sure there will be cases where the I homes will deteriorate to the point where they will not be habitable, i and the only solution is we tear them down. i Now, that raises another problem. Can we require that homes be I demolished whenever they reach the point that they really are a blight I on the neighborhood? 'J I MR. SCHMITT: Yes. 1 COMMISSIONER COYLE: Because I guarantee you some of :1 ,I I J 1 Agenda Item No. 10D January 27, 2009 Page 20 of 26 September 9-10,2008 Page 232 - ; 1 ~ I 'j " I j i these homes will not be sold and they will just get worse and worse 1 and worse. And the only solution for the neighborhood is to tear them down, clear the lot, and one day somebody will build something nice there. So if we -- do we have the authority to do those kinds of i things? I MR. SCHMITT: Commissioner, under your property j maintenance ordinance, you do. COMMISSIONER COYLE: That's the county attorney's ;1 question. j MR. KLA TZKOW: Commissioner, there are other communities 1, throughout Florida who are enacting ordinances substantially similar i j to the one that's being proposed here. So that if I'm wrong, that you I 1 don't have the authority, so are a bunch of other county attorneys as well. COMMISSIONER COYLE: So it's worth trying? MR. KLA TZKOW: I would try if that's what the board wants. COMMISSIONER COYLE: Then I think you're on the right track. I like what you're doing. I like the rehabilitation program. I ! like the idea that you're going to charge a registration fee and require :j 1 the banks to identifY a local property manager for their foreclosed 1 home so that we can hopefully keep these things in presentable i condition. We're just going to have to be very vigorous about 1 enforcing our codes. i So I would make a -- make a recommendation that we approve j the steps that you're I proposinfghhere and encouragebyou to ehxpand, if j possible, the rehabi itation 0 t e homes, and may e -- we ave to I remember 30 homes a year is not a lot. If we remove an incentive for l building new homes, we might not have enough affordable homes 1 going up, But if we could get the not-for-profits to shift their emphasis j to rehabilitation of new homes, say maybe a 75/25 split, they're 1 rehabilitating 75 percent of their homes and only building 25 percent I new ones, that would be a good way to change focus here, Agenda Item No. 10D January 27,2009 Page 21 of 26 September 9-10, 2008 I I ; 1 I , ; i ~ j Page 233 Agenda Item No. 10D January 27,2009 Page 22 of 26 I 1 COMMISSIONER FIALA: Second your motion. j CHAIRMAN HENNING: There's a motion on the floor by I " Commissioner Coyle, second by Commissioner Fiala. j Commissioner Halas, then I want to go. I COMMISSIONER HALAS: Of the 148 construction sites that ; are inactive, and if we extend the building permits for six months, how I i are we going to maintain the area even though they're inactive as far ! 1 as weeds and just the general oversight? i :1 MR. SCHMITT: The -- actually the builder would request a j I continuance. I can hold the builder responsible under -- through 1 inspecting the site, my building inspectors, not code, but through 1 building inspection, I have mechanisms to go after sites that are not kept up. So I can go over the builder. 1 Now, if the builder abandoned the site, then I -- then it will not be 1 an extension of the existing permit. If they abandon the site, I have no ! option, but -- then it becomes a code problem. So to answer your :1 question, I can go after the builder. Ifthe builder, for whatever ~ financial reason needs another six months, he would -- ; COMMISSIONER HALAS: In another six months he would :1 1 probably revert back to the bank? i MR. SCHMITT: But ifit's -- if the builder requests an extension I I and calls for the inspection, the inspection will be an inspection of the j property, is it properly maintained, is the site clean, are the -- is there a 1 dumpster, dumpster empty, all the other type of things that we require j for an active construction site, I can enforce those through the building I code. r i COMMISSIONER HALAS: Okay. But the other part of the j question then would be if the builder vacates the area, let's say he goes I 1" broke, then obviously that lands is probably owned by the bank or j something. 'I',' ~ MI R. SCHMbITnkrT: That's correct. And that's going to be a . lorec osure or a a uptcy. \ ! September 9-10, 2008 1 .1 , 1 :,- Page 234 Agenda Item No. 100 January 27, 2009 Page 23 of 26 September 9-] 0, 2008 COMMISSIONER HALAS: So that way we can again go after the bank and make sure that that site -- MR. SCHMITT: And understand, the bankruptcy is a whole different issue. And I'll turn to the county, because bankruptcy in the State of Florida, there's not much any of us can do. MR. KLATZKOW: Well, this was a lot more fun than two years ago. We're getting a lot of bankruptcy in our office that we're responding to, and Mr. Schmitt's right, bankruptcy, we lose control. The bankruptcy trustee is the one that takes it over. And we recently had WCI go bankrupt on us, and it was a national bank we see in Delaware. Impacts a lot of developments around here. And, you know, it's getting worse, you know. It's not getting better. COMMISSIONER HALAS: And so you're saying we don't have control over those bankruptcies? MR. KLATZKOW: Once they go bankrupt, we file papers with the court and we go to court, and the bankruptcy trustee at that point in time is trying to marshal the assets and salvage what he can. MR, SCHMITT: And in individual bankruptcy, the homeowner still legally owns that home, and I can't even get on the property without homeowner -- yeah, it's -- State of Florida is pretty protective from the standpoint of home protection and bankruptcy. CHAIRMAN HENNING: I have a triplex on Golden Gate Parkway that I know somebody who wants to buy it. They're buying it for less than what the code enforcement fines are, and the -- so it presents a problem. Those code enforcement fines presents a problem. It's -- it probably will prohibit or inhibit the sale of this property. MR. SCHMITT: Those fines, they can come back and ask to have them adjusted certainly if -- i CHAIRMAN HENNING: Why would anybody invest any 1 money in a piece of property knowing that you have a $200,000 fine and not know for sure -- close on it -- you're not going to close on it with that kind of a lien on there, So I mean, I think that's -- i I 1 I ~_. Page 235 - Agenda Item No. 10D January 27,2009 Page 24 of 26 September 9-10, 2008 MR. SCHMITT: You can't close on it, but they can come back and -- MR. KLATZKOW: We come to you, sir, all the time with settlements of these code enforcement liens just for this purpose, so j somebody could purchase. ~ CHAIRMAN HENNING: Is there any way to expedite those? The sooner that we can -- MR. KLATZKOW: You own the lien. We have to come to you. MR. SCHMITT: I think you just did two on today's executive 1 summary. We do them pretty quickly. CHAIRMAN HENNING: Okay. MR. SCHMITT: We do them -- so if they have -- especially for something like that that's going to turn a property around that's vacant, we will work that quickly. CHAIRMAN HENNING: Great, thank you. MR. SCHMITT: Diane will work that with the county attorney, and it's on your agenda. CHAIRMAN HENNING: Thank you. 1 MR. KLATZKOW: Very quickly. : CHAIRMAN HENNING: The next thing I forwarded to the j county manager, I think it's Palm Beach County, just passed an l ordinance where it demands mandatory mediation in foreclosure. J i MR. MUDD: Seminole. , 1 CHAIRMAN HENNING: Seminole. I MR. SCHMITT: Seminole, MR. MUDD: Seminole. CHAIRMAN HENNING: Is that a part of something new -- MR. SCHMITT: That was ajudge ruling. I have to turn to the i l county attorney on that one. I MR. KLATZKOW: That's up to the courts. That was an 1 administrative ruling. Their court system is inundated by foreclosures, ~ and this was their response to it. Page 236 ;J i ,i I i " I You know, our court system could do the same thing here, but I, outside of your jurisdiction, sir. CHAIRMAN HENNING: Oh, so we need to talk to the judges j to-- i 1 MR. KLATZKOW: I'm sure our judges are probably looking at 1 the same thing. I'm sure all judges in Florida are looking at this. ! CHAIRMAN HENNING: Okay. But that's an assumption, right? MR. KLA TZKOW: A very strong assumption. I mean, if -- MR. MUDD: But this could be -- CHAIRMAN HENNING: Let it go then. MR, MUDD: This could be something that Commissioner Coyle could bring forward with his committee that has to do with jails and he basically talks to the chief judge and r~presentatives from Collier County where they talk about judges' ability to rule on cases that have ! to do with criminality versus foreclosure, and if foreclosure burdening is being too great, then they can initiate in this particular regard. CHAIRMAN HENNING: Commissioner Coletta? COMMISSIONER COLETTA: Would somebody restate the motion? CHAIRMAN HENNING: Motion to approve staffs recommendations, MR. SCHMITT: And that recommendation is to come back with this type of program in an amended ordinance, identifying the fiscal impacts and everything associated with that. I believe that was -- I think that's the way you want to package it. COMMISSIONER COLETTA: Call the question. It will tell you. CHAIRMAN HENNING: Well, we have a public speaker. MR. SCHMITT: We have speakers, MS. FILSON: We have one public speaker, Steve Harrison, CHAIRMAN HENNING: There's the guy that started all this Agenda Item NO.1 00 January 27,2009 Page 25 of 26 September 9-10, 2008 Page 237 ,I I i J 1 Agenda Item No, 10D January 27, 2009 Page 26 of 26 September 9-]0,2008 , , I stuff. I MR. KLATZKOW: It's all his fault. i 1 MR. HARRISON: Steve Harrison, a private citizen and broker ',J under Florida's real estate laws. I Pleased that you're giving the direction. I just wanted to report 1 that since July, the numbers are up. We're now up to almost 1,400 I 1 bank-owned properties, according to the appraiser's records. j,1 We have about 3,500 in the pre-foreclosure process, so we're on , track to get to the 8,000, but they're coming in faster than they're being i I put back into circulation. j So if you had your news on this morning, Lee County appraiser , i reported 20,000 foreclosed bank-owned homes in their county, so j they've got a much bigger problem up there. .1 But the only thing I would add, that ideas that code enforcement 1 has include relying much more, I think, on the local property manager 1 to do things like get a detailed property condition report done. That's J l available to them. Documents all the code deficiencies. It's really a j win-win-win because the mortgagor, the bank, ends up with a better quality property that yields more to them, the mortgagee has less of a remaining liability, neighbors have better property values, and the tax base is preserved, so the sooner the better, I think, on the new ordinance. Thank you. CHAIRMAN HENNING: Thank you, All in favor of the motion, signify by saying aye. COMMISSIONER COYLE: Aye. COMMISSIONER HALAS: Aye. CHAIRMAN HENNING: Aye. COMMISSIONER FIALA: Aye. COMMISSIONER COLETTA: Aye. CHAIRMAN HENNING: Any opposed? (No response.) CHAIRMAN HENNING: Thank you, Mr. Schmitt. I ~ , j j 1 i I j j Page 238 i i ..-,-.