Desert Hot Springs City Council is requiring all foreclosed homes to be registered with the city. The water and power is shut off in these homes. Palm trees, plants and flowers are dead. Pools are green with mold and it's not a pleasant site for the desert.
Some of these homes are left wide open, air conditioners, kitchen cabinets, even bathtubs are being stolen from these homes. This is a good thing, just hope they enforce it...
REPORT TO THE CITY COUNCIL
DATE: MARCH 18, 2008
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: CITY MANAGER, RICK DANIELS
INITIATED BY: ASSISTANT CITY MANAGER, STEVEN A. MENDOZA
GENERAL REGULATIONS, OF THE CITY OF DESERT HOT SPRINGS MUNICIPAL CODE BY ADDING CHAPTER
100, ABANDONED RESIDENTIAL PROPERTY REGISTRATION
Abandoned Residential Property Registration, requiring lenders to maintain homes they seize
and register the abandoned properties with the City of Desert Hot Springs.
5. Approve Resolution No. 2008-25, a Resolution of the City Council of the City of Desert Hot
Springs, California setting the Abandoned Residential Property Registration program Fee
amount pursuant to Ordinance No. 2008-07.
EXECUTIVE SUMMARY
Foreclosures are increasing in number and those that are vacant and abandoned are having a
negative impact on the surrounding neighborhood and community as a whole. Current figures indicate
that about 990 homes in the City of Desert Hot Springs are currently in various stages of foreclosure -
preforeclosure, auction or bank-owned.
To protect residential neighborhoods and keep and property values from dropping, staff is proposing
that the City Council adopt a program that forces lenders to maintain homes they seize and to register
the abandoned properties with the City. Modeled on initiatives in Chicago, Detroit, and Chula Vista,
the program will require lenders to hire local property management firms to prevent vacant homes
from becoming neglected. The program will be paid for by a Sixty Dollar ($60.00) fee charged to title
holders when they register an abandoned property with the City.
Staff recommends that the City Council consider the proposed amendment to the City Municipal Code,
and approve the Abandoned Residential Property Registration program as provided for in the attached
Ordinance.
BACKGROUND
The cooling housing market has lead to an increase in financially distressed properties. Foreclosures
are increasing in number and those that are vacant and abandoned are having a negative impact on
the surrounding neighborhood and community as a whole.
It is not unusual for homes that are in the foreclosure process to sit vacant and unmaintained for
months on end. This impact destabilizes neighborhoods and encourages vandalism and other forms of
criminal activity and contributes to lower property values.
Current figures indicate that about 990 homes in the City of Desert Hot Springs are currently in various
stages of foreclosure - preforeclosure, auction or bank-owned.
To protect residential neighborhoods and keep and property values from dropping, staff is proposing
that the City Council adopt a program that forces lenders to maintain homes they seize and to register
the abandoned properties with the City. Modeled on initiatives in Chicago, Detroit, and Chula Vista,
the program will require lenders to hire local property management firms to prevent vacant homes
from becoming neglected.
Lenders can be held accountable for a home even before the foreclosure is complete because the
property is security for the loan. This program puts responsibility back on the lender earlier than the
current process employed by the City.
The program will be paid for by a $60.00 fee charged to title holders when they register an abandoned
property with the City. The program kicks in with the first notice of default. At that point, a lender must
check to see whether anyone is living in the home. If not, it must hire a property management firm to
prevent any sign of disrepair from appearing.
The local property management company is required to inspect the property on a weekly basis to
determine if the property is in compliance with the requirements of this chapter. If the property is found
to be in noncompliance, or if notification of noncompliance is reported, the local property management
company is required bring the property back into compliance within 72 hours.
The property must be posted with the name and 24-hour contact number of the property management
company responsible for the weekly inspection, maintenance and security of the property. This will
remove the City's Code Enforcement from spending limited resources to act as the property manager.
It also allows neighbors to have direct contact with a responsible party. It is hoped that the
combination of observant neighbors and an accessible local responsible party will deter and arrest any
potential deterioration of abandoned properties having a negative impact on the surrounding
neighborhood and the community as a whole.
Violations of this chapter may by enforced in any combination as permitted by Chapters 80 through 89
of the City of Desert Hot Springs Municipal Code (Code Enforcement) including: 1) notice to abate or
public nuisance administrative fine ($100 for first violation, $200 for second violation, $500 for third
and each subsequent violation), issuance of a notice of violation in lieu of issuing a field citation; 2)
issuance of an infraction ($100 for first violation, $200 for second violation, $500 for third and each
subsequent violation); 3) issuance of a misdemeanor violation (fine in the amount not to exceed
$1,000 and/or imprisonment for a period not to exceed 6 months; $250 for a first conviction, $500 for a
second conviction; $750 for the third conviction; $1,000 for a fourth and subsequent conviction); and
any other enforcement and legal remedies available to the City under the law including recovery of
attorneys' fees.
CONCLUSION
Staff believes this program will stabilize property values, avoid blight, discourage criminal activity and
reduce the amount of calls to police and code enforcement. Staff recommends that the City Council
consider the proposed amendment to the City Municipal Code, and approve the Abandoned
Residential Property Registration program as provided for in the attached Ordinance.
ENVIRONMENTAL ANALYSIS
Staff has determined that the requested Abandoned Residential Property Registration program was
found to be Categorically Exempt under Class 5, Minor Alterations in Land Use Limitations (Section
15305 of the CEQA Guidelines) and that no further environmental review is required.
FISCAL IMPACT
There is no impact to the City's General Fund as a result of this action as this program will be self
sufficient through funds collected.
EXHIBITS
1. Ordinance No. 2008-07
Exhibit A. - Abandoned Residential Property Registration program.
2. Resolution No. 2008-25. Abandoned Residential Property Registration program Application Fee.
3. Abandoned Residential Property Registration Program Application.
Prepared by: _____________________________________________________
ASSISTANT CITY MANAGER, STEVEN A. MENDOZA
Approved by: _____________________________________________________
CITY MANAGER, RICK DANIELS
ORDINANCE NO. 2008-07
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS,
CALIFORNIA, AMENDING TITLE 9: GENERAL REGULATIONS OF THE CITY OF DESERT HOT
SPRINGS MUNICIPAL CODE BY ADDING CHAPTER 100, ABANDONED RESIDENTIAL
PROPERTY REGISTRATION, REQUIRING LENDERS TO MAINTAIN HOMES THEY SEIZE AND
REGISTER THE ABANDONED PROPERTIES WITH THE CITY.
WHEREAS, the City of Desert Hot Springs desires to amend Title 9, General Regulation of
City of Desert Hot Springs Municipal Code by adding Chapter 100, Abandoned Residential Property
Registration; and
WHEREAS, current estimates indicate that about 990 homes in the City of Desert Hot
Springs are currently in various stages of foreclosure - preforeclosure, auction or bank-owned; and
WHEREAS, the City Council finds that the presence of vacant, abandoned residences can
lead to neighborhood decline, create an attractive public nuisance, contribute to lower property values,
discourage potential buyers from purchasing a home adjacent to or in neighborhoods with vacant
abandoned residences; and
WHEREAS, the City of Desert Hot Springs desires to establish an abandoned residential
property registration program as a mechanism to protect residential neighborhoods form becoming
blighted though the lack of adequate maintenance and security of abandoned properties; and
WHEREAS, notice of the public hearing of the City Council of the City of Desert Hot Springs to
consider the proposed Ordinance Zoning was given in accordance with applicable law; and
WHEREAS, on ________, 2008 a public hearing of the City Council of the City of Desert Hot
on the requested Zoning Text Amendment was held.
NOW, THEREFORE, the City Council of the City of Desert Hot Springs DOES HEREBY
ORDAIN as follows:
SECTION 1. That this Ordinance is adopted pursuant to City's police, public health, welfare and safety
powers and findings incorporate the purpose of the Ordinance, as stated in Section 100.10
(Purpose/scope) of Chapter 100, as set forth in Exhibit A, and incorporated by reference herein; and
SECTION 2. That Title 9: General Regulation of City of Desert Hot Springs Municipal Code is hereby
amended by adding Chapter 100, Abandoned Residential Property Registration as set forth in Exhibit
A, and incorporated by reference herein, requiring lenders to maintain homes they seize and register
the abandoned properties with the City of Desert Hot Springs; and
SECTION 3. CEQA. That the requested text amendment was found to be Categorically Exempt under
Class 5, Minor Alterations in Land Use Limitations (Section 15305 of the CEQA Guidelines).
Therefore, no further environmental review is required; and
SECTION 4. SEVERABILITY. If any section, subsection or clause of this Ordinance shall be deemed to
be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses
shall not be effected thereby; and
SECTION 5. CONFLICT. All ordinances or parts of ordinances in conflict with the provisions of this
Ordinance are hereby repealed; and
SECTION 6. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this
Ordinance. The City Clerk shall post this Ordinance within the time and manner prescribed by law. This
Ordinance shall take effect thirty (30) days after the date of its adoption, and prior to the expiration of
fifteen (15) days from that passage thereof shall be published at least once in a newspaper of general
circulation in the City of Desert Hot Springs, and henceforth and thereafter, the same shall be in full force
and effect.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Desert Hot Springs
at a regular meeting held on the ____ day of ___________, 2008 by the following vote:
AYES, and in favor thereof, Council members:
NAYS, Council members:
ABSENT, Council members:
ABSTAINING, Council members:
__________________________
Yvonne Parks, Mayor
ATTEST: APPROVED AS TO CONTENT:
________________________ __________________________
Cynthia Lugo, City Clerk Rick Daniels, City Manager
APPROVED AS TO LEGAL FORM:
________________________
Ruben Duran, City Attorney
Title 9: General Regulations
Chapter 100.00
ABANDONED RESIDENTIAL PROPERTY REGISTRATION
Sections:
100.10 Purpose/scope.
100.20 Definitions.
100.30 Recordation of transfer of loan/deed of trust/assignment of rents.
100.40 Registration.
100.50 Maintenance requirements.
100.60 Security requirements.
100.70 Additional authority.
100.80 Fees.
100.90 Enforcement.
100.100 Appeals.
100.110 Violation/penalty.
100.120 Severability.
100.10 Purpose/scope.
It is the purpose and intent of the City of Desert Hot Springs City Council, through the adoption of
this chapter, to establish an abandoned residential property registration program as a mechanism to
protect residential neighborhoods from becoming blighted through the lack of adequate maintenance
and security of abandoned properties. The City Council finds that the presence of vacant, abandoned
residences can lead to neighborhood decline, create an attractive public nuisance, contribute to lower
property values, discourage potential buyers from purchasing a home adjacent to or in neighborhoods
with vacant abandoned residences.
100.20 Definitions.
For the purposes of this chapter, certain words and phrases used in this chapter are defined as
follows:
"Abandoned" means a property that is vacant and is under a current notice of default and/or notice
of trustee's sale, pending tax assessor's lien sale and/or properties that have been the subject of a
foreclosure sale where the title was retained by the beneficiary of a deed of trust involved in the
foreclosure and any properties transferred under a deed in lieu of foreclosure/sale.
"Accessible property" means a property that is accessible through a compromised/breached gate,
fence, wall, etc.
"Accessible structure" means a structure/building that is unsecured and/or breached in such a way
as to allow access to the interior space by unauthorized persons.
"Agreement" means any agreement or written instrument which provides that title to residential
property shall be transferred or conveyed from one owner to another owner after the sale, trade,
transfer or exchange.
"Assignment of rents" means an instrument that transfers the beneficial interest under a deed of
trust from one lender/entity to another.
"Beneficiary" means a lender under a note secured by a deed of trust.
"Buyer" means any person, partnership, co-partnership, association, corporation, fiduciary or any
legal entity that agrees to transfer anything of value in consideration for property described in an
agreement of sale, as defined in this subsection.
"Dangerous building" means any building/structure that is violation of any condition(s), standards
and/or regulations referenced in Chapter 150, Building Regulations of Desert Hot Springs Municipal
Code.
"Days" means consecutive calendar days.
"Deed of trust" means an instrument by which title to real estate is transferred to a third party
trustee as security for a real estate loan. Used in California instead of a mortgage. This definition
applies to any and all subsequent deeds of trust, i.e., second trust deed, third trust deed, etc.
"Deed in lieu of foreclosure/sale" means a recorded document that transfers ownership of a
property from the trustor to the holder of a deed of trust upon consent of the beneficiary of the deed of
trust.
"Default" means the failure to fulfill a contractual obligation, whether monetary or conditional.
"Distressed" means a property that is under a current notice of default and/or notice of trustee's sale
and/or pending tax assessor's lien sale or has been foreclosed upon by the trustee or has been
conveyed to the beneficiary/trustee via a deed in lieu of foreclosure/sale.
"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
include, but are not limited to, overgrown and/or dead vegetation, accumulation of newspapers,
circulars, flyers and/or mail, past due utility notices and/or disconnected utilities, accumulation of trash,
junk and/or debris, the absence of window coverings such as curtains, blinds and/or shutters, the
absence of furnishings and/or personal items consistent with residential habitation, statements, based
on observations, by neighbors, passersby, delivery agents, government employees that the property is
vacant.
"Foreclosure" means the process by which a property, placed as security for a real estate loan, is
sold at an auction to satisfy the debt if the trustor (borrower) defaults.
"Local" means 5 road/driving miles distance of the subject property.
"Neighborhood standard" means those conditions that are present on a simple majority of
properties within a 300-foot radius of an individual property. A property that is the subject of a
neighborhood standard comparison, or any other abandoned property within the 300-foot radius, shall
not be counted toward the simple majority.
"Notice of default" means a recorded notice that a default has occurred under a deed of trust and
that the beneficiary intends to proceed with a trustee's sale.
"Out-of-area" means in excess of 5 road/driving miles distance of the subject property.
"Owner" means any person, partnership, co-partnership, association, corporation, fiduciary or any
other legal entity having a legal or equitable title or any interest in any real property.
"Owner of record" means the person, partnership, co-partnership, association, corporation, fiduciary
or any other legal entity having recorded title to the property at any given point in time the record is
provided by the Riverside County Recorder's Office.
"Property" means any unimproved or improved real property or portion thereof, situated in the City
and includes the buildings or structures located on the property regardless of condition.
"Residential building" means any improved real property, or portion thereof, situated in the City,
designed or permitted to be used for dwelling purposes, and shall include the buildings and structures
located on such improved real property. This includes any real property being offered for sale, trade,
transfer, or exchange as "residential", whether or not it is legally permitted and/or zoned for such use.
"Securing" means such measures as may be directed by the City Manager or his or her designee
that assist in rendering the property inaccessible to unauthorized persons, including but not limited to
the repairing of fences and walls, chaining/padlocking of gates, the repair or boarding of door, window
and/or other openings. Boarding shall be completed to a minimum of the current United States
Department of Housing and Urban Development securing standards at the time the boarding is
completed or required.
"Trustee" means the person, partnership, co-partnership, association, corporation, or fiduciary
holding a deed of trust on a property.
"Trustor" means a borrower under a deed of trust, who deeds property to a trustee as security for
the payment of a debt.
"Vacant" means a building/structure that is not legally occupied.
100.30 Recordation of transfer of loan/deed of trust/assignment of rents.
Within 10 days of the purchase and/or transfer of a loan/deed of trust secured by residential
property the new beneficiary/trustee shall record, with the Riverside County Recorder's Office, an
assignment of rents, or similar document, that lists the name of the corporation, and/or individual, the
mailing address and contact phone number of the new beneficiary/trustee responsible for receiving
payments associated with the loan/deed of trust.
100.40 Registration.
Any beneficiary/trustee, who holds a deed of trust on a property located within the City of Desert
Hot Springs, shall perform an inspection of the property that is the security for the deed of trust, upon
default by the trustor, prior to recording a notice of default with the Riverside County Recorder's Office.
If the property is found to be vacant or shows evidence of vacancy, it is, by this chapter, deemed
abandoned and the beneficiary/trustee shall, within 10 days of the inspection, register the property
with the City Manager or his or her designee on forms provided by the City.
If the property is occupied but remains in default it shall be inspected by the beneficiary/trustee, or
his or her designee, on monthly basis until (1) the trustor or another 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
trustee shall, within 10 days of that inspection, register the property with the City Manager or his or her
designee on forms provided by the City.
In either case the registration shall contain the name of the beneficiary/trustee (co-partnership,
partnership, association, fiduciary, corporation, any legal entity or individual), the direct street/office
mailing address of the beneficiary/trustee, excluding P.O. boxes, a direct contact name and phone
number for the beneficiary/trustee and, in the case of a corporation or out-of-area beneficiary/trustee,
the local property management company responsible for the security, maintenance and marketing of
the said property. Registration fees will not be prorated.
An annual registration fee shall accompany the registration form. The fee and registration shall be
valid for the calendar year, or remaining portion of the calendar year, in which the registration was
initially required. Subsequent registrations and fees are due January 1st of each year and must be
received no later than January 31st of the year due. Registration fees will not be prorated.
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 deed of trust involved in the foreclosure and any
properties transferred under a deed in lieu of foreclosure/sale.
Properties subject to this chapter shall remain under the annual registration requirement, security
and maintenance standards of this section as long as the properties remain vacant.
Any person, firm, partnership, co-partnership, association, fiduciary corporation or any legal entity
that has registered a property under this chapter must report any change of information contained in
registration and required by this chapter, within 10 days of the change.
100.50 Maintenance requirements.
Properties subject to this section shall be, in comparison to the neighborhood standard, kept free of
weeds, dry 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 including 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.
The property shall be maintained free of graffiti, tagging or similar markings by removal or painting
over with an exterior grade paint that matches the color of the exterior of the structure.
Visible front and side yards shall be landscaped and maintained to the neighborhood standard at
the time registration was required.
Landscape includes, but is not limited to, grass, ground covers, bushes, shrubs, hedges or similar
plantings, decorative rock or bark or artificial turf/sod designed specifically for residential installation.
Landscape does not include weeds, gravel, broken concrete, asphalt, decomposed granite, plastic
sheeting, mulch, indoor-outdoor carpet or any similar material.
Maintenance includes but is not limited to regular watering, irrigation, cutting, pruning and mowing
of required landscape and removal of all trimmings.
Pools and spas shall be kept in working order so the water remains clear and free of pollutants and
debris or drained and kept dry. In either case properties with pools and/or spas must comply with the
minimum security fencing requirements of the State of California.
Adherence to this section does not relieve the beneficiary/trustee or property owner of any
obligations set forth in any covenants, conditions and restrictions and/or homeowners' association
rules and regulations which may apply to the property.
100.60 Security requirements.
Properties subject to this section shall be maintained in a secure manner so as not to be accessible
to any unauthorized persons.
Secure manner includes but is not limited to the closure and locking of windows, doors (walkthrough,
sliding and garage), gates and any other opening of such size that it may allow a child to
access the interior of the property and or structure(s). In the case of broken windows securing means
the reglazing or boarding of the window.
If the property is owned by a corporation and/or out-of-area beneficiary/trustee/owner, a local
property management company shall be contracted to perform weekly inspections to verify that the
requirements of this section, and any other applicable laws, are being met.
The property shall be posted with name and 24-hour contact phone number of the local property
management company. The posting shall be no less than 18 inches by 24 inches and shall be of a
font that is legible from a distance of 45 feet and shall contain along with the name and 24-hour
contact number the words "THIS PROPERTY MANAGED BY" and "TO REPORT PROBLEMS OR
CONCERNS CALL." The posting shall be placed on the interior of a window facing the street to the
front of the property so it is visible from the street, or secured to the exterior of the building/structure
facing the street to the front of the property so it is visible from the street or, if no such area exists, on
a stake of sufficient size to support the posting in a location that is visible from the street to the front of
the property but not readily accessible to vandals. Exterior posting must be constructed of and printed
with weather resistant materials.
The local property management company shall inspect the property on a weekly basis to determine
if the property is in compliance with the requirements of this chapter. If the property is found to be in
noncompliance, or if notification of noncompliance is reported to the local property management
company, the local property management company, or its designee, shall bring the property back into
compliance within 72 hours of notice thereof.
100.70 Additional authority.
In addition to the enforcement remedies established in Title VIII (Code Enforcement), Chapters 80
though 89 of the City of Desert Hot Springs Municipal Code, and any other enforcement remedies
permitted under the law, the City Manager or his or her designee shall have the authority to require the
beneficiary/trustee/owner and/or owner of record of any property affected by this section to implement
additional maintenance and/or security measures including but not limited to securing any/all door,
window or other openings, installing additional security lighting, increasing on-site inspection
frequency, employment of an on-site security guard or other measures as may be reasonably required
to arrest the decline of the property.
100.80 Fees.
The fee for registering an abandoned residential property shall be set by resolution of the City
Council.
100.90 Enforcement.
In addition to Section 100.70, violations of this chapter may by enforced in any combination as
permitted by Title VIII (Code Enforcement), Chapters 80 through 89 of the City of Desert Hot Springs
Municipal Code and any other enforcement and legal remedies available to the City under the law.
100.100 Appeals.
Any person aggrieved by any of the requirements of this section may appeal insofar as such appeal
is permitted under the applicable sections of Title VII (Code Enforcement) of the City of Desert Hot
Springs Municipal Code.
100.110 Violation/penalty.
Violations of this chapter shall be treated as a strict liability offense regardless of intent. Any person,
firm and/or corporation that violates any portion of this section shall be subject to prosecution, public
nuisance abatement and/or administrative enforcement pursuant to Title VIII (Code Enforcement) of
City of Desert Hot Springs Municipal Code.
100.120 Severability.
Should any provision, section, paragraph, sentence or word of this chapter be determined or
declared invalid by any final court action in a court of competent jurisdiction or by reason of any
preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this
chapter shall remain in full force and effect.
RESOLUTION NO. 2008-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS,
CALIFORNIA SETTNG THE ABANDONED RESIDENTIAL PROPERTY REGISTRATION
PROGRAM FEE AMOUNT PURSUANT TO ORDINANCE NO. 2008-07.
WHEREAS, the City Council of the City of Desert Hot Springs, California did on ________ by
Ordinance No. 2008-07 establish a Abandoned Residential Property Registration program; and
WHEREAS, Section 100.80 of Ordinance No. 2008-07 requires the City to adopt by resolution
the fee for registering an abandoned residential property; and
WHEREAS, the City Council, in determining the amount of the fee, desires to insure that the
fee recovers all associated costs for implementing the program.
It is the purpose and intent of the Desert Hot Springs City Council, through the adoption of this Chapter, to
establish an abandoned residential property registration program as a mechanism to protect residential
neighborhoods from becoming blighted through the lack of adequate maintenance and security fo abandoned
properties.
Owner Responsibility under Desert Hot Springs Municipal Code Chapter 100.00:
Within ten (10) days of the purchase and/or transfer of a loan/deed of trust secured by residential
property, the new beneficiary/trustee shall record, with the Riverside County Recorder's Office, an
Assignment of Rents.
If the property is vacant or abandoned, the beneficiary/trustee shall register the property with the
City using this form within ten days of transfer, vacancy or subsequent vacancy. [DHSMC 100.40].
Maintain the property on a weekly basis. [DHSMC 100.60].
Secure the property [DHSMC 100.60].
Post the property with the property manager's name, address and 24-hour contact phone number.
[DHSMC 100.60].
Report to the City any change of address and change of contact in information within ten days of
said change. [DHSMC 100.60].
A copy of this or any municipal code of the City of Desert Hot Springs may be downloaded at:
http://www.cityofdhs.org/Code_Enforcement
65950 Pierson Boulevard Desert Hot Springs, California 92240
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