Dade County puts homeowners at Risk

April 1, 2009 Miami-Dade County will begin enforcing its Foreclosure Ordinance. This ordinance that was enacted on December 12, 2008 may be the downfall of the real estate market recovery in Miami-Dade County. More importantly, it puts homeowners who buy these foreclosed properties at risk. To make matters worse, at the April 7, 2009 Commission meeting, they will be having the first reading on another ordinance that will do the same for ALL RESIDENTIAL PROPERTIES transacted in Miami-Dade. 

This ordinance was touted as a consumer protection measure, but it will do the opposite and it will also kill the real estate market recovery we are already experiencing in Miami-Dade. At a meeting held on March 20, 2009 at the Miami Dade County Permit Center (PIC); Realtors, Architects, Engineers and Attorneys were told the following:

• The ordinance applies to all foreclosed properties located and titled in Miami Dade County after December 12, 2008 and sold after April 1, 2009. Non compliance can result in a daily fine of $500 up to a maximum of $30,000.  
• Properties must be inspected by licensed architects or engineers to determine needed repairs including building and zoning code violations. The findings including a good faith estimate must be documented on the Disclosure Findings Report provided by Dade County B&Z. 
• Once reviewed and accepted by the Dade County B&Z before it is filed with the Clerk of the Courts. The report then becomes a public record available through the Internet to anyone around the world.
• After the report is recorded, the seller must obtain a Certificate of Use prior to executing any contract - the Certificate of Use fee is $300 plus 8%.
• Life safety violations and other violations may be required to be corrected prior sale. However B&Z may decide that on a case by case basis. The County can follow up on any and all pending violations after the sales closes.

At a workshop meeting held on March 27, 2009 at the PIC for Architects and Engineers some of the information and fees given previously was changed. Another revelation at this meeting was that while the Foreclosure Ordinance is not enforced before April 1, 2009; sellers may still be held liable for not complying with ordinance since December 13, 2008; even though a system of enforcement was not available until April 1, 2009 - think about that for a while. Architects and Engineers who attended voiced their concerns about the ordinance and its implementation. Some indicated that it may cost as much as $5000 to $15000 to do these reports, because of the amount of information requested, the level of detail and the potential liability they may take upon themselves.

There are many things wrong with this ordinance - I am going to focus on the biggest problems:

• The ordinance puts property owners at risk by publishing the inspection reports on-line as a public record. That will make this information available to zealous inspectors, unscroupulous and unlicensed contractors and even crooks abroad, since public records are available on the Internet. The greatest number of victims of this ordinance will be minorities, poor and the elderly who are often targeted because of their lack of knowledge, resources and fear.
• If the Building & Zoning department takes action on the violations identified in the inspection reports, sales of foreclosed properties are going to come to a dead stop. The Asset Managers processing these properties are located out of State and may be handling the liquidation of properties all over the country. These companies are not equipped to handle construction projects at local level. That is why the price the properties so low so the new owners can do the repairs themselves.
• This ordinance may violate our 4th Amendment Right that offers Protection from unreasonable search and seizure. A building inspector like any other government official can't come into our homes without cause. This ordinance usurps that right by requiring that architects and engineers inspect the property and then file that report with the Clerk of the Courts. That means that the violations are published in the public records of Miami Dade County and accessible to anyone with access to a computer and the Internet. Therefore a code enforcement or neighborhood compliance official can mail you a Notice of Violation without stepping on your property, by simply viewing the inspection report through the Clerk of the Courts web site. By the same token that information is also available to every scammer, crooked and unlicensed contractor and everyother person on the web.

If you live in Miami-Dade County contact Mayor Alvarez and your County Commissioner. If you don't know who is the County Commissioner for your District, go on www.miamidade.gov and contact every commissioner. Particularly contact Commissioner Natasha Seijas who sponsored the Foreclosure Ordinance and Carlos Gimenez who sponsored the new Certificate of Use Ordinance that goes for first reading at the April 7 meeting of the Miami Dade Commission.

If you are a Realtor, don't wait for your Board to lead or take action. That is why we have the Foreclosure ordinance, because everyone including me was expecting someone else to solve our problem. If you want to save your business take action now. Our government is only as good as the voters who get involved.