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Home My WebLink AboutCAP 2015-08-10 Item 2C - Update - Vacant Property RegistrationCity of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Community Affairs and Parks FROM: Jack Pace, Director of Dept. of Community Development BY: Colin Poff, Planning Intern DATE: August 10, 2015 SUBJECT: Vacant Property Registration Ordinance Issue Should the City of Tukwila adopt a Vacant Property Registration Ordinance (VPR)? Background 1. Community Affairs and Parks Committee previously requested a briefing on the need for a Vacant Property Registration Ordinance. 2. The City of Tukwila experienced increases in foreclosure rates and vacancies between 2008 and 2012. During this time, code enforcement saw an increase in maintenance and nuisance issues with these properties. However, with an improving real estate market, the number of vacancies in Tukwila has declined in recent years. 3. A Vacant Property Registration Ordinance requires vacant and /or foreclosed properties to register with the City. These properties are then required to meet maintenance criteria set forth by the ordinance, or pay a non - compliance fee. VPRs have increased greatly since the 2008 recession, and there are currently 550 such ordinances in the nation. In Washington State there are currently only 4 active ordinances. 4. Planning staff has done cursory research on VPRs. During this research, staff from the cities of Spokane and Bremerton provided feedback on their experience with the program. Summary of this correspondence, as well as other research, is summarized in attachment 1. Discussion 1. The City of Tukwila currently addresses concerns of property maintenance through citizen complaints. While this solves many issues, keeping an active database of contacts of vacant home property owners would be a benefit to the city. However, research of other cities indicates this uses staff resources intensively. Additionally, property owners, usually banks, in these cities often chose not to address maintenance issues, but rather pay in -lieu fees. 2. The City of Tukwila is one of only a few cities to have a Rental Housing Inspection Program. This program monitors the quality of Tukwila's large stock of rental housing (nearly 60 %). 3. Tukwila's abatement program mostly addresses issues related to vacant properties. INFORMATIONAL MEMO Page 2 4. Because there is no active database of vacant properties, it is unknown how large of a problem this is for the City. However, Tukwila's abatement program mostly addresses issues related to vacant properties. Options 1. Adopt Vacant Property Registration Ordinance 2. Do not adopt Vacant Property Registration Ordinance and rely on current code enforcement procedures 3. Strengthen existing maintenance code and other code enforcement procedures in lieu of Vacant Property Registry Recommendation While the City would benefit from an official list of contacts for vacant properties, a VPR in Tukwila would not substantially improve housing condition compared to current code enforcement procedures and programs. There is also not clear evidence to show that the issue of vacant and foreclosed homes in Tukwila is large enough to warrant a VPR. Staff research indicates that the net benefit of implementing a VPR may not be worth the cost of the program and therefore recommends option two at this time. Financial Impact Option two would incur no additional cost. Staff estimates that implementing a Vacant Property Registration program would require a full FTE. Attachments Vacant Property Registration Ordinances: Summary of Research Vacant Property Registration Ordinances: Summary of Research July 7, 2015 1. Background The purpose of this report is to highlight findings from research done on Vacant Property Registration Ordinances (VPRs). Tukwila City Council has recently shown interest in VPRs. VPRs have increased greatly in the last decade, and there are currently 550 such ordinances. The vast majority have been enacted since the 2008 recession. In Washington State there are currently 4 active ordinances. This report will include a description of VPRs, how they have been used in Washington municipalities, conditions in Tukwila, and questions to consider. 2. What They Are Some of the main purposes of VPRs are as follows: (http: / /www.communityprogress .net /tool -1 -- vacant- property - registration- ordinances -- pages- 257.php) 1.) To ensure that owners of vacant properties are known to the city and other interested parties and can be reached in necessary. 2.) To ensure that owners of vacant properties are aware of the obligations of ownership under relevant codes and regulations. 3.) To ensure that owners meet minimum standards of maintenance of vacant properties. 4.) To discourage irresponsible investment by internalizing social costs and holding property owners accountable for upkeep. A registration ordinance should include a clear record of which properties and which properties must register; the registration requirements and procedures; expectations of how the owner is to maintain the property; fees to register and penalties for non - compliance. Definitions of vacancy and abandonment may differ from jurisdiction to jurisdiction. Some VPRs follow a vacancy model, which means a property will need to register after a certain period of vacancy. Others follow a foreclosure model, which means registration follows a formal notice of default. There is also a hybrid model of the two. 11 2 12 3. Examples from WA State (http: / /safeguardproperties.com /Resources /Vacant Property Registration /WA.aspx ?filter =vpr) i. Bremerton (enacted 2013) http : / /safeguardproperties.com /imedia /VPR %20Attachments /Ordinance /Bremerton %20WA% 20VPR %200rdinance.pdf • No fee to register • Maintenance requirements include: Removal of weeds, trash, junk, debris, graffiti. Maintenance of yards, and pools up with city standards • Registrations updated once a year, properties inspected monthly • Program is complaint- based, but properties that appear abandoned are investigated as well • Many fines and penalties were paid by banks instead of any maintenance • Finding a local contact is difficult but Safegaurd has a list of local vendors that can be used ii. Spokane http : / /safeguardproperties.com Nmedia /VPR %20Attachments /Ordinance /Spokane %20WA %20 VPR %200rdinance.pdf • Received nearly 100 registrations so far, program not fully implemented o Currently registration is voluntary and fees are not being collected • Register includes foreclosed and vacant properties but may be moved to only foreclosed • Looking into using a vendor for an electronic registry, which could save time • "Periodic" monitoring of property • Require maintenance of property and removal of junk, secure property to prevent access by unauthorized persons • Failure to register the property is a class 1 civil infraction. Failure to maintain the property results in the issuance of a criminal misdemeanor violation iii. Tacoma http: / /www.ki ng5.com /story /news /loca I /tacoma /2014 /09/15 /tacoma - derelict- buildings /15697441/ • $200 fee to register • Aimed at getting derelict properties back into working condition. Some not in condition to be occupied • Includes commercial and residential properties iv. Pierce County http: / /www.thenewstribune.com/ news /local /article25865740.html • Does not have a registry, although idea has been proposed recently • Requires that lots be free of grass and weeds more than 24 inches tall within 100 feet of any property • In lieu of a registry, maintenance code was strengthened 4. Conditions in Tukwila: • According to HUD data, Tukwila had a 2.9% foreclosure rate in 2008 with 112 foreclosures out of 3,868 mortgages. Foreclosures increased rapidly in 2011 -2012, but have decreased in the last couple of years due to an improved housing market. • As of 2013, 644, or 19 %, of total single - family housing stock in LDR zones is owned by a taxpayer whose address is different from the site address. Of those properties, a total of 23 were owned by a bank. However, the number of homes that are actually abandoned by the owner could be higher than this. • According to Zillow, in 2014 10.8 per 10,000 homes in Tukwila were sold as foreclosures, higher than the Seattle average of 6.3/10,000. • A Tukwila Abatement list can also be used for information o List is not up to date, conditions may have changed. One possibility is to drive through these neighborhoods to see. King County Parcel Viewer will also show if foreclosed homes have taken on a new owner. o List shows many vacant properties, 16 of which were foreclosures. o Many properties on the list come from citizen nuisance complaints. o Many comments note poor maintenance, squatters, junk or overgrowth. o Tukwila experienced many foreclosures and vacancies from the recession. With a strong real estate market now it is likely more of these properties are being maintained or occupied. 5. Questions to Consider: • Do we have enough information to know if this is a problem in Tukwila? Do we need to collect more statistics? • If we target vacant properties, as well as foreclosed properties, how do we find who's responsible and who pays? • What resources will it take to have an effective VPR? • Do we accomplish any similar goals with our current code enforcement process? In other words, is our process of responding to formal complaints effective enough as it is? 3 13