Item Coversheet
City Manager

DATE:

5/18/2020

MEMO:

2020-06

TO:

Honorable Mayor Julie Moore Wolfe and City Council Members

FROM:

Scot Wrighton, City Manager

Jon Kindseth, Deputy City Manager


SUBJECT:  Adoption of an Ordinance creating a Foreclosure and Vacant Property registration process, and a corresponding agreement with ProChamps to create an online portal for these registrations.   
SUMMARY RECOMMENDATION:  A growing number of communities throughout the state and the country have adopted this registration requirement for certain properties which have a negative impact on our respective communities.  Both foreclosures and vacant, unmaintained properties put a disproportionate amount of strain on City staff and budget to deal with mitigating  impacts from these properties.  This registration process not only creates a revenue source to pay for these impacts, but more importantly provides for an efficient registration of these properties to streamline enforcement actions.     
BACKGROUND:  

Vacant and foreclosed properties are perhaps one of the biggest issues facing the City's number one goal of neighborhood revitalization.  This program will deter, but not prevent, banks from foreclosing on homeowners in Decatur through this requirement of registration and a fee.  This program is quiet similar to a state IHDA program in which banks pay a fee to foreclose, and then that money is provided to cities for demolition and rehab of these properties.  Similarly vacant properties that go unmaintained will also be required to register under this program for mostly the same reason, namely the disproportionate impact that they have on the city and our neighborhoods.  

 

The value added that this registration program will have is that it will streamline staff's ability to hold absent property owners and managers accountable for their properties.  We currently spend hours of time researching and tracking down property owners to get compliance with City codes for such things as garbage dumping, grass mowing, and securing or abating attractive nuisances.   

 

 
PRIOR COUNCIL ACTION:  The City Council has discussed this property registration program on a couple of occasions, during the budget process last year and then again in March as it related to a bond requirement.  Staff incorporated the Council direction into this Ordinance for the program.     
POTENTIAL OBJECTIONS:  There are no known objections to this Ordinance. Banks and absent property owners are likely not strong supporters of this type of proactive program but they have not notified staff of any objections. 
STAFF REFERENCE:  For questions or concerns about this program prior to the meeting please contact Jon Kindseth at 450-2323 or jkindseth@decaturil.gov 
BUDGET/TIME IMPLICATIONS:  This program has been included in the budget and we anticipated approximately $100,000 generated from this program on an annual basis.  This program has the potential to generate far more revenue than what is budgeted, if aggressively pursued and adequate time committed to the program by staff.   
ATTACHMENTS:
DescriptionType
Ordinance for Registration ProgramOrdinance