Item #08 Potential Code Compliance Amnesty Program to Handle Outstanding Code Liens o( ()Pe
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AGENDA ITEM COVER SHEET
Meeting Date: May 5, 2015
Item #
Reviewed By:
Contact Name: Doug Gaines Department Directo .
Contact Number: 407 - 905 -3100, ext. 1503 City Manager:
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Subject: Potential Code Compliance Amnesty Program to Handle Outstanding Code
Subject: p Y 9 9
Enforcement Liens
Background Summary:
At the request of the City Commission, staff was tasked with looking at different options to handle the
259 total outstanding code enforcement liens that the City currently has on the books dating back to
1998. Working with the City Attorney's office, our research included speaking with twelve different
cities, towns and counties throughout the State of Florida. Many had the same process as us where
we notify the legal homeowner, the bank, and any possible tenants of code issues. They then wait for
the owner or a representative to bring the property into compliance, then hear a lien reduction request
by way of our Code Enforcement Board, then the City Commission. Staff and the City Attorney's office
determined that Hillsborough County's Code Compliance Amnesty Program is the best option.
Issue:
The City Commission directive led staff to review current code amnesty programs in place around the
state. From our research, staff recommends a program in which eligible property owners could have
their outstanding code enforcement fines reduced by 85 %, or pay 15% of the market value of the
property in violation, whichever is less. In addition, during this three -month Amnesty Program the
property title will be cleared once the balance is paid in full.
Here are the eligibility requirements:
1. Code lien more than a year before the commencement of the program.
2. Property is in full code compliance.
3. All other property owned in the city is in compliance.
4. Properties brought into full compliance during the Amnesty Program period become eligible for
reductions.
5. Program does not apply to burglar alarms, land use cases or nuisance abatement cases.
Proposed program:
1. Outstanding fines can be reduced by 85% or owners will pay 15% of the market value of
property in violation, whichever is Tess. The market value is determined by the Orange County
Property Appraiser.
2. Reduced fines exceeding the 15% limits shall be capped at $5,000 during the amnesty period.
3. Fines exceeding $1,000 may be paid with a 50% down payment and the remaining balance
paid in up to 12 monthly payments.
4. The lien will remain in place until full payment is received. Upon receipt of the final payment, a
Satisfaction of Lien will be filed with the Orange County Clerk of the Court.
Examples:
Fine 85% Discount Property Value 15% of value Amnesty Amount
$300,000 $45,000 $30,000 $4,500 $4,500
$25,000 $3,750 $60,000 $9,000 $3,750
$200,000 $30,000 $150,000 $22,500 $5,000 (capped)
A separate application must be filed for each property with a lien.
Once the property is in compliance and a settlement is reached, if that settlement is below 15% of the
fine or 15% of the market value, staff would have the final approval. We would also cap the reduced
fine amount so that no settlement exceeds $5,000. If the lien is simply reduced and then paid off per
the terms of the program, staff files the satisfaction of lien with the Clerk. Staff would sign off on
satisfactions as authorized in the Code.
Pursuant to section 162.09, FS, the lien runs in favor of the local governing body and the local
governing body may execute a satisfaction or release of the lien. Our City Attorney is of the opinion if
we write objective parameters into the Commission - approved code and a citizen complies with the
program, staff can administratively file the release of the lien. If the homeowner needs to deviate from
the parameters, the settlement would have to be approved by the City Commission.
The program could commence next budget year, as we have to budget for the costs and the man -
hours to operate this program. This would entail many more hours from Code Enforcement and the
City Manager's staff to process the applications, review them, and negotiate with the representatives
of the property. We will also have to have all the applications and instructions placed on our website.
Recommendations
After evaluating numerous options jointly between the City attorney's office and with City staff, the City
commission has two clear choices:
1. Implement the option outlined here today as a model, with the expectation of roughly a 10
percent satisfaction rate or $54,000.
2. Continue things the way they are and use the current lien reduction process.
Attachments:
1. Hillsborough County's Code Compliance Amnesty Program fact sheet.
2. PowerPoint presentation.
Financial Impact:
The City could experience a slight to moderate increase in lien satisfactions, which we expect to taper
off over time.
2
Type of Item: (please mark with an 5c,
Public Hearing For Clerk's Dept Use:
Ordinance First Reading Consent Agenda
Ordinance Second Reading Public Hearing
Resolution >( Regular Agenda
X Commission Approval
X Discussion & Direction
Original Document/Contract Attached for Execution by City Clerk
Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept. gc , � N/A
Reviewed by () N/A
3
Code Compliance Amnesty
Program
Hillsborough County
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Benefits
Eligible Hillsborough County property owners could have their outstanding code enforcement fines reduced by
85 %, or pay 15% of the market value of the property in violation, whichever is less. In addition, during this
three month Amnesty Program the property title will be cleared once the balance is paid in full.
Eligibility Requirements
1. Code lien filed more than one year before October 1, 2014.
2. Property is in full code compliance.
3. All other property owned in Hillsborough County is in compliance.
4. Properties brought into full compliance during the Amnesty Program period become eligible for
reductions.
5. Program does not apply to burglar alarm cases, land use cases, nuisance abatement cases or red light
camera enforcement cases.
Reduction Amounts
1. Outstanding fines can be reduced by 85% or owners will pay 15% of the market value of property in
violation, whichever is less. The market value is determined by the Hillsborough County Property
Appraiser.
2. Reduced fines exceeding the 15% limits shall be capped at $5,000 during the amnesty period.
3. Fines exceeding $1,000 may be paid with a 50% down payment and the remaining balance paid in up to
12 monthly payments.
4. The lien will remain in place until full payment is received. Upon receipt of the final payment, a
Satisfaction of Lien will be filed with the Hillsborough County Clerk of the Court.
Examples
Fine 85% Discount Property Value 15% of value Amnesty Amount
$300,000 $45,000 $30,000 $4,500 $4,500
$25,000 $3,750 $60,000 $9,000 $3,750
$200,000 $30,000 $150,000 $22,500 $5,000 (capped)
Application Process
1. For questions or to participate in this program, property owners can visit
www.HillsboroughCounty.org /Amnesty to find a copy of the Application for Amnesty or contact
Citizen Boards Support at (813) 272 -7181.
2. Completed applications can be emailed to amnestyprogram @HillsboroughCounty.org or mailed to
Citizen Boards Support at 601 E. Kennedy Blvd. 24th Floor Tampa, FL 33602.
3. Applications will be accepted between October 1, 2014 and December 31, 2014.
4. A separate application must be filed for each property with a lien.
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