If you live in Los Angeles County, you can soon say goodbye to rundown vacant homes with overgrown lawns, broken windows and graffiti as city officials announced the launch of new efforts to clean up recently abandoned foreclosed properties.
Effective July 8, 2010, a LA city ordinance will help building inspectors identify the banks that own vacant homes and pass out fines if they aren’t kept clean and safe.
As more vacant homes pop up in our neighborhoods and potentially create a public hazard, the city is encouraging residents to call the 311 hotline and report problem properties to ensure lenders are held accountable for safety and clean up.
This ordinance, which affects more than 27,000 homes in LA County, allows the city to levy fines of up to $100,000 against lenders and financial institutions that seize homes and allow them to fall into disrepair.
Often during the foreclosure process, properties sit in limbo between when the lender issues a mortgage default notice and when the title transfers to the lender. In the past, banks didn’t consider the properties their responsibility until after they repossess the title, but now the City of Los Angeles holds them responsible as soon as they issue a default notice.
As of July 8th, banks must register their inventory of homes in default with the city, which will allow inspectors to easily identify owners when neighbors call in to complain about a property.
The ordinance also allows the city to fine bank owners $1,000 a day per code violation.
You can check out the official ordinance below:
New city of Los Angeles Ordinance effective 7/8/2010
On May 24, 2010 the City of Los Angeles enacted Ordinance 181185 commonly known as the City of Los Angeles Foreclosure Registry Program. The Ordinance takes effect 7/8/2010. The Ordinance is more than a “Vacant Property Registration Act” rather it requires registration of all properties that have a Notice of Default recorded against it. Within 30 days of July 8, 2010 (“effective date”), all properties that have a Notice of Default recorded against it must register with the City.
This requires registration of properties that currently have a Notice of Default registered against it and all properties where a Notice of Default is recorded after the effective date.
The Ordinance requires the lenders and foreclosing beneficiaries to inspect and maintain properties in foreclosure to ensure that they are free from debris, rubbish, trash, and overgrown vegetation, amongst other things. If the property is found to be vacant, or if the property becomes vacant after the Trustee’s Sale, the beneficiary must inspect the property weekly and continue to maintain the property in good condition according to the terms of the ordinance.
If the Property is found to be occupied at any point of the foreclosure process, the beneficiary must inspect the property on a monthly basis. Non-compliance will result in a fine of $1,000.00 per day of non-compliance, not to exceed $100,000.00.
Registration of the property costs $155 per year. A fine of $250.00 per day will be imposed on properties which are not timely registered; the lender or beneficiary is responsible for paying these fines, even if the foreclosed borrower is in possession of the property.
A copy of the ordinance can be downloaded at: http://clkrep.lacity.org/onlinedocs/2009/09-0365_ord_181185.pdf
http://lahd.lacity.org/lahdinternet/ForeclosureInformation/tabid/418/Default.aspx
If you have more questions about Los Angeles’ new Foreclosure Ordinance, feel free to contact me @ 562-364-9505 or mark@shandrowgroup.com
Sincerely,
Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CAÂ 90807
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