3-32
REGISTRATION, MAINTENANCE AND SECURITY OF PROPERTIES IN FORECLOSURE:
3-32.1 Purpose And Intent:
The purpose and intent of this section is to establish a property registration program as a mechanism to protect the safety and welfare of the public, and the city’s neighborhoods from becoming blighted through the lack of adequate maintenance and security of properties due to foreclosure. (Ord. #1610, §1; Ord. #1701, §1)
3-32.2 Definitions:
For the purposes of this section, certain words and phrases used in this section are defined as follows:
Abandoned means a property that is vacant and: (a) is under a current notice of default and/or notice of trustee’s sale; (b) is the subject of a pending tax assessor’s lien sale; (c) has been the subject of a foreclosure sale where the title was retained by the beneficiary of a deed of trust involved in the foreclosure; or (d) has been transferred under a deed in lieu of foreclosure/sale.
Accessible means a property that is accessible through a compromised/breached gate, fence, wall or similar condition or a structure/building that is unsecured and/or breached in such a way as to allow access to the interior space by unauthorized persons.
Beneficiary means a lender or holder of a note secured by a deed of trust.
Beneficiary/trustee means both the beneficiary and the trustee. When any act is required of the beneficiary/trustee by this section, both are responsible for performing such act and may be charged with a violation of this code for failure to act. However, it is sufficient if it is accomplished by either one.
If information is required to be provided, then both must provide such information.
City means city of Lynwood, city of Lynwood staff, and/or city of Lynwood agents, contractors, designees, and/or representatives.
Days means consecutive calendar days.
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.
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 and often used in California instead of a mortgage. This definition applies to any and all subsequent deeds of trust, i.e., second trust deed or third trust deed.
Default means the failure to fulfill a contractual obligation, monetary or conditional.
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 and not occupied by authorized persons. 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 and statements by neighbors, passersby, delivery agents, or 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 auction to satisfy the debt if the trustor (borrower) defaults.
Local means within forty (40) road/driving miles’ distance of the subject property.
Neighborhood standards means those conditions that are present on a simple majority of properties within a three-hundred-foot (300') radius of an individual property. A property that is the subject of a neighborhood standard comparison, or any other abandoned property within the three-hundred-foot (300') 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 forty (40) road/driving miles’ distance of the subject property.
Owner. See definition of Responsible person.
Property in foreclosure or property means any property upon which a notice of default has been issued by a lender, mortgagee, or beneficiary of any deed of trust, or real property that has been the subject of a foreclosure sale where the title was transferred to the beneficiary of a deed of trust involved in the foreclosure any properties transferred under a deed in lieu of foreclosure and/or sale. Property in foreclosure or property also means any unimproved or improved real property, or portion thereof, situated in the city of Lynwood and includes the buildings or structures located on the property regardless of condition.
Responsible person means any person, partnership, association, corporation, or fiduciary having legal or equitable title to or any interest in any real property, including, but not limited to, trustees and beneficiaries of a deed of trust on the property and other lien holders on the property.
Securing or secure means such measures as may be directed by the director of development services, 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, and the repair, replacement or boarding of doors, windows and/or other openings. Boarding shall be completed pursuant to the requirements set forth in subsection 3-32.4.
Trustee means the person, partnership, firm, corporation or other entity 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 occupied by authorized persons. (Ord. #1610, §1; Ord. #1701, §1)
3-32.3 Registration:
a. Any beneficiary or its agent, or trustee, who holds, or has an interest in, a deed of trust on a property in foreclosure, located within the city, shall register the property in foreclosure with the development, compliance and enforcement services department, or its designee, agent, or representative. If the beneficiary or trustee issues a notice of default after the effective date of the ordinance codified in this section, they shall register such property with the city within thirty (30) calendar days of the issuance of such notice of default. If the beneficiary or trustee issues a notice of default prior to the effective date of the ordinance codified in this section, and such notice of default has not been rescinded, the beneficiary or trustee shall register the property in foreclosure with the city within thirty (30) calendar days of the effective date of the ordinance codified in this section.
The registration requirement described in this section shall also apply to property that has 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 and/or sale.
b. The registration requirements of this section shall be satisfied by providing the city the following information:
1. The address and assessor parcel number (APN) of the property in foreclosure;
2. The name of the beneficiary and/or trustee (corporation or individual);
3. The name(s) of all beneficiaries and/or trustees (corporations or individuals) who hold security interest at the time when the notice of default is recorded;
4. The direct street and/or office mailing address of the beneficiary and/or trustee (P.O. boxes are insufficient);
5. A direct contact name and phone number of person(s) or agent(s) acting on behalf of the beneficiary and/or trustee;
6. In the case of a corporation or out-of-area beneficiary and/or trustee, a direct contact staff member name and phone number with the local property management company responsible for the security, maintenance and marketing of the property; such staff member must be empowered to (a) comply with code enforcement orders issued by the city, (b) provide a trespass authorization upon request of local law enforcement authorities if the property is unlawfully occupied, (c) conduct weekly inspections of the property, and (d) accept rental payments from tenants of the property if no management company is otherwise employed for such person; and
7. Any other information as deemed necessary by the development, compliance and enforcement services department, or its designee, agent, or representative.
c. Any person, firm, or corporation that has registered a property under this section must report any change of information contained in the registration with the development, compliance and enforcement services department, or its designee, agent, or representative within ten (10) calendar days of the change. If the development, compliance and enforcement services department, or its designee, agent, or representative determines that the beneficiary and/or trustee has failed to comply with the registry requirements of this section, the development, compliance and enforcement services department, or its designee, agent, or representative shall notify the beneficiary and/or trustee at the last known address as provided in subsection 3-32.3e of the failure to comply with this section. If the beneficiary and/or trustee fail to comply with this section within thirty (30) calendar days of the development, compliance and enforcement services department, or its designee, agent, or representative’s notification, the beneficiary and/or trustee shall pay a penalty as prescribed in subsection 3-32.7 subsequent to the development, compliance and enforcement services department, or its designee’s, agent’s, or representative’s notification.
d. Properties subject to this section shall remain subject to the annual registration requirement and the security and maintenance standards of this section as long as they remain in foreclosure.
e. Each registration shall contain the following information for both the beneficiary and trustee: name (corporation or individual); the street/office address (not a post office box) and, if different, the mailing address; a direct contact name (corporation or individual); a direct contact name and phone number for the person handling the deed of trust and/or foreclosure; and, in the case of a corporation or out-of-area beneficiary or trustee, the local property manager/management company responsible for the security and maintenance of the property.
f. The annual foreclosed properties registration fee, as prescribed in this section, shall be paid by the beneficiary or its agent, or trustee, who holds, or has an interest in, a deed of trust on a property in foreclosure, to the city at the time of registration. The beneficiary or its agent shall annually renew a registration of each property which the beneficiary has previously registered with the city under this section, and in which such beneficiary retains either an equitable or legal interest as of the first anniversary of the registration of such property with the city. The beneficiary or its agent shall reregister the property on forms authorized by the city. Registration fees shall not be prorated.
g. Pursuant to the registration of the property within the city of Lynwood, the beneficiary/trustee shall inspect the property and obtain a presale inspection verifying that the property is in habitable condition and that all work has a permit with “final” signatures. If it is found that the dwelling has illegal modifications, the beneficiary/trustee shall schedule an inspection and, if applicable, cause the correction of any and all violations.
h. Persons or entities required to register properties pursuant to this section shall keep such properties registered and all required information updated and comply with all the security and maintenance requirements of this section for the entire time such properties remain vacant. When such properties become occupied or title is transferred, the beneficiary/trustee or responsible person shall immediately so notify the director of development services, or his or her designee, in writing.
i. When properties required to be registered become occupied or title is transferred, the prior beneficiary, trustee and/or owner shall notify the development, compliance and enforcement services department, or its designee, agent, or representative, in writing within ten (10) calendar days of the occupancy or transfer.
j. Any person, partnership, firm, corporation or other entity required to register a property pursuant to this section shall report any change of information contained in the registration within ten (10) days of the change. (Ord. #1610, §1; Ord. #1701, §1)
3-32.4 Maintenance Requirements:
The director of development services, or his/her designee, may order that specific measures be taken to prevent buildings and/or properties from becoming a public nuisance.
a. Responsible persons, including beneficiaries/trustees, shall maintain properties subject to registration pursuant to this section, and any other applicable provisions of federal, state or local law, and shall keep such properties 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, or printed material and shall take any other action necessary to prevent giving the appearance that the property is abandoned, including, but not limited to, the following:
1. The property shall be kept 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.
2. Visible front and side yards shall be landscaped and maintained in accordance with city requirements and neighborhood standards.
3. Permitted landscaping includes, but is not limited to, grass, ground covers, bushes, shrubs, hedges or similar plantings designed for residential installation.
4. Permitted landscaping does not include weeds, gravel, broken concrete, asphalt, decomposed granite, plastic sheeting, indoor-outdoor carpet or any similar material.
5. Required maintenance includes, but is not limited to, regular watering, irrigation, cutting, pruning and mowing of required landscape and removal of all trimmings.
6. 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.
b. If the building is severely damaged, dilapidated or partially demolished as to prevent the ability to safely board the building, the property may be fenced. If site conditions prohibit the ability to secure a property by fencing, the building may need to be demolished.
1. The following requirements shall be followed when securing a building and boarding the doors and windows:
(a) Windows.
(1) Structural wood panels shall be cut to fit the window opening neatly or shall be cut to provide an equal overlap at the perimeter of the window.
(2) Windows shall be opened to allow a carriage bolt to pass through the window or the window glazing shall be removed and stored. The two-inch (2") by four-inch (4") boarding and framing material shall be cut eight inches (8") wider than the opening and shall be placed on the inside of the window opening approximately six inches (6") from the top and bottom of the window opening. The framing and boarding shall be installed and secured.
(3) Vent holes shall be cut into the structural wood panels and screened.
(b) Doors.
(1) Structural wood panels shall be cut to fit the door neatly and shall be cut to provide an equal overlap at the perimeter of the door.
(2) The entry door structural wood panel shall be fitted to the door casing with minimum one-eighth inch (1/8") clearance on all sides. The structural wood panel shall be double hinged from the inside with a hasp and padlock for securing. The installation shall be such that all exposed bolts cannot be removed. The installation shall be noninterfering with the building door and should open and close freely from other obstructions.
Any floors above the first story that are rendered inaccessible need to be secured. All work shall be done in a neat and workmanlike fashion.
(c) Boarding Materials.
(1) Sheet material shall be one-half-inch (1/2") nominal structural wood panels (plywood or OSB) except that one entry door into the building shall be provided with a three-fourths-inch (3/4") nominal structural wood panel.
(2) Framing material shall be nominal two-inch (2") by four-inch (4") solid sawn lumber.
(3) Fasteners shall be a three-eighths-inch (3/8") diameter carriage or lag bolts of such length as required to penetrate the assembly to appropriately secure the wood panel.
(4) Vent holes shall be cut into the structural wood panels and screened.
(5) Structural wood panels shall be painted a neutral color.
(d) Fencing Materials.
(1) Fencing shall consist of a metal chain-link fence six feet (6') in height. The fence shall be installed to withstand a fifty (50) pound lateral force applied to the top of the fence.
(2) The fence shall completely encircle the property and not be directly attached to the structure as to provide a climbable surface for accessing the structure’s upper floor or roof.
(3) A permit shall be required for a fence in all zoning districts. (Ord. #1610, §1; Ord. #1701, §1)
3-32.5 Security Requirements:
Responsible persons, including beneficiaries/trustees, shall secure properties subject to registration pursuant to this section, in a manner to prevent access by unauthorized persons, including, but not limited to, the following: the closure and locking of windows, doors (walk-through, sliding and garage), gates and any other opening of such size that it may allow a child or any other person 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. No windows shall remain boarded for longer than thirty (30) days. Prior to the expiration of thirty (30) days, the boarded windows shall be replaced. Responsible persons shall further do the following:
a. If the responsible person is a corporation and/or out-of-area beneficiary/trustee/owner, that responsible person shall retain a local property manager to perform weekly inspections to verify that the requirements of this section, and any other applicable laws, are being met.
b. The property shall be posted with name and twenty-four (24) hour contact phone number of the local property manager. The posting shall be not less than eighteen inches (18") by twenty-four inches (24") and shall be of a font that is legible from a distance of forty-five feet (45') and shall contain along with the name and twenty-four (24) hour contact number the words: “THIS PROPERTY IS 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.
c. The responsible persons or the local property manager shall inspect the property on a weekly basis to determine if the property is in compliance with the requirements of this section. (Ord. #1610, §1; Ord. #1701, §1)
3-32.6 Additional Authority:
In addition to the enforcement remedies established herein, the director of development services, or his or her designee, shall have the authority to require any responsible person of any property affected by this section to implement additional maintenance and/or security measures including, but not limited to, securing any or all doors, windows or other openings, installing additional security lighting, increasing on site inspection frequency, employment of an on site security guard, disconnecting utilities and removing meter boxes, or any other measures as may be reasonably calculated to arrest the decline of the property, prevent unauthorized entry and/or ensure maintenance of the property in accordance with this code. (Ord. #1610, §1)
3-32.7 Enforcement:
a. Violations; Penalties. Violations of this section shall be treated as a strict liability offense regardless of intent. Any person, partnership, association, firm, corporation, fiduciary or other entity that violates any provision or requirement of this section shall be guilty of a misdemeanor and subject to prosecution, and subject to enforcement pursuant to any other provision of this code or applicable law, as appropriate. Violators of this section may be issued administrative citations and be liable for administrative fines as prescribed in section 20-3. It shall constitute a new and separate offense for each day and every day during any portion of which a violation of, or failure to comply with, any provision or requirement of this section is committed, continued or permitted by any person, partnership, association, firm, corporation, fiduciary or other entity. Penalties shall not be subject to appeal.
b. Second Civil Or Criminal Judgment. Pursuant to Government Code Section 38773.7, upon entry of a second or subsequent civil or criminal judgment within a two (2) year period for abatement of a public nuisance, the court may order the owner to pay triple the costs of abatement.
c. Expenses. Pursuant to California Government Code Sections 38773 and 38773.5, all expenses incurred by the city in connection with any action to abate a public nuisance shall be charged to and become an indebtedness to the owner of such structure or premises, and the city may place a lien or special assessment upon the affected property pursuant to subsection 3-12.20. (Ord. #1610, §1; Ord. #1701, §1)
3-32.8 Special Provisions Where Property Is Encumbered With The Security Interests Of Multiple Beneficiaries:
a. In the event that a property is encumbered by the security interests of more than one beneficiary at the time when a notice of default is recorded, the beneficiary who causes a notice of default for its security interest to be recorded shall be responsive for registering the property with the city as provided in subsection 3-32.3.
b. Upon the recordation of a notice of default on a property by any beneficiary, regardless of the security lien interest priority of such beneficiary in the property in relation to the priority of the security interests of the other beneficiaries in the same property, the city, in its discretion, may elect to enforce the provisions of this section against one or more beneficiaries who have not separately recorded a notice of default against the property. (Ord. #1701, §1)
3-32.9 Declaration Of Public Nuisance:
The duties and obligations specified in this section shall be joint and several among and between all trustees and beneficiaries and their respective agents. The provisions of this section as described herein shall apply to properties subject to this section. Should a property be deemed a public nuisance, hazardous, or substandard by the city, the city may initiate the abatement procedures prescribed in section 3-13 against the beneficiary and/or trustee. (Ord. #1701, §1)
3-32.10 Notice By Beneficiary To City Of Disposition Of Registered Property:
a. Within ten (10) calendar days following the release of a notice of default and the reinstatement of the loan to the trustor, the beneficiary or its agent shall give the city written notice of such release and reinstatement.
b. Within ten (10) calendar days following the sale, transfer or other conveyance to a third person of a property registered with the city under this section, the beneficiary or its agent shall give the city written notice of such sale, transfer or other conveyance together with current contact information for such bona fide purchaser/successor-in-interest to the beneficiary in such property. (Ord. #1701, §1)
3-32.11 Fees:
a. A foreclosed properties registration fee and reregistration fee will be required for properties subject to this section. The fees shall be applied towards reimbursing the city for reasonable city costs incurred and resources expended toward the administration of this section.
b. The foreclosed properties registration fee and reregistration fee shall be set by resolution as approved by the city council.
c. Additional hourly inspection fees as set forth in the city’s fee schedule may be levied on a property for staff time to inspect and enforce the provisions of this code when a complaint has been filed on a property subject to this section. (Ord. #1701, §1)
3-32.12 Authority And Enforcement:
The development, compliance and enforcement services department shall manage the implementation, coordination, documentation, administration and enforcement of this section. Nothing contained herein shall be construed to limit the city’s authority to contract or utilize third parties in the enforcement and implementation of this section. (Ord. #1701, §1)
3-32.13 Prohibition Against Passing On Costs, Fees And Fines To A Trustor, Subsequent Purchaser Or Transferee:
It is unlawful for any trustee, beneficiary or agent of a beneficiary to pass on any costs, fees or fines imposed under any provisions of this section to any trustor, subsequent bona fide purchaser or transferee of a property, either as a condition of sale or transfer, or included as a cost or fee in escrow. (Ord. #1701, §1)
3-32.14 Applicability Of Other Laws:
Nothing in this section shall relieve any beneficiary or trustee of the duty to comply with any and all other applicable statutes, regulations, ordinances, codes, and laws regulating property maintenance, zoning, or building construction. Compliance with this section shall not relieve any beneficiary or trustee of any legal duties under such laws. (Ord. #1701, §1)