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10-3429 - US Bank National Assoc (2)The citu o Boynton Beach Police Department A CFA Accredited Lain Enforcement Agency" 100 E. Boynton Beach Boulevard P.O. Box 310 Boynton Beach, Florida 33425 -0310 Phone. (561) 742 -6100 Fax: (561) 742 -6185 G. Matthew Immler, Chief of Police Code Compliance Phone: (561) 742 -6120 Fax: f561) 742 -6383 LIEN REDUCTION TRANSMITTAL MEMORANDUM Date: September 7, 2011 To: City Commission From: Code Compliance Division RE: Code Compliance Case #10 -3429 In accordance with Ordinance number 001 -07, the enclosed "Final Lien Modification Order' is hereby forwarded to you for review. As required by Ordinance number 001 -07, the following procedures are to be followed: ❑ A City Commissioner has seven (7) days from the rendition of the Order to request the City Manager's Office to place the case on a City Commission Agenda for review. (Space provided below for transmittal purposes) ❑ Said review must occur within thirty (30) days of the request for review. ❑ Upon such review, the City Commission may take one of the following actions: a. Uphold the Code Compliance Board's recommendation in full. b. Over -rule the Board's decision in full. c. Modify the Board's Final Order. ❑ The City Commission shall direct staff to take action consistent with their review of the "Lien Modification Order ". I, , hereby request the City Manager's Office to place the above referenced case on the next available City Commission Agenda for review. Signed on this date, the day of , 2011. America's Gateway to the Gulfstream Meeting Minutes Code Compliance Board Boynton Beach, FL August 17, 2011 Chair Costantino commented that once again the Bank was the property owner who continued to ignore the Ordinances by not registering the property when they got the notice. The realtor then appears before the Board to advise they only just obtained the property listing. Motion Based on the testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2 -84 through 2 -89 of the City of Boynton Beach Code of Ordinances, Vice Chair Yerzy moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of October 20, 2010 to an amount of $2,814.12 including administrative costs. Mr. Foot seconded the motion that unanimously passed. Case No.10 -3429 U.S. Bank National Assoc 125 Arthur Court Officer Roy reviewed the case. The notice of violation was December 2, 2010, to install proper pool barrier and secure the pool. In addition, it was required to maintain the pool in a clean and sanitary condition and remove trash and debris. It came before the Board February 16, 2011 and no one appeared. The compliance date established was February 23, 2011 or incur a fine of $500 per day. The violations were brought into compliance on June 29, 2011 having 125 days of non - compliance, for a total of $62,500. There is evidence and documents that show actual compliance on April 27, 2011 which would be 62 days for a total of $31,000. Paul Minoff, 100 NE 1" Street, Ste, 1500, Ft. Lauderdale, FL, counsel for U.S. Bank National, thanked the Board for giving him the opportunity to be present on short notice. He testified this property came into ownership of U.S. Bank on May 17, 2011, pursuant to a Certificate of Title. The foreclosure sale occurred on April 28, 2011, which was actually the day after the property was brought into compliance. In conducting an investigation, it appeared the property was subject to a short sale agreement. Unfortunately, it did not happen and foreclosure counsel, who was representing U.S. Bank prior to the Certificate of Title being issued, did not receive all the information until April 20, 2011 after the hearing where the Board certified the fine. After the hearing, Chase finally received complete information as to what was going on and seven days later the property was brought into full compliance. Mr. Minoff presented photographs to the Board showing the property in compliance as of April 27, 2011. The foreclosure sale took place the next day and the Certificate of Title was issued on May 17, 2011. Chase, on behalf of U.S. Bank, had the property appraised for a potential sale and the property was valued at $38,000, as is. There was currently a contract on the property for $37,000. The property was ready to close subject to the ultimate resolution and release of the lien. The owners of the property understand that they must maintain the property going forward and in the interim the property was being and had been rl Meeting Minutes Code Compliance Board Boynton Beach, FL August 17, 2011 maintained. Mr. Minoff proposed a fine of $3,500 inclusive of administrative costs that Chase would promptly pay once it was approved pursuant to Florida Statutes. Chair Costantino expressed her concern that there was a need for a proper pool barrier since December 2, 2010 and someone needed to be responsible for that pool immediately. It could have been a potential catastrophe, if a child were involved. Mr. Minoff commented that this was not a completely unenclosed property. There was a wooden fence, as well as a chain link fence that surrounds the property. There may have been some issues with the fence which had been resolved. It was not an open exposed pool. Unfortunately, when a property goes into foreclosure, miscommunication occurs between parties and information did not flow as it should have in this case. There was discussion regarding the condition of the fence when the property was cited. The pictures presented showed the condition of the fence after compliance, not when the violations were cited_ Officer Roy presented a picture of the fence when the violation occurred and the picture clearly showed the poor condition of the fence. Motion Based on the testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2 -84 through 2 -89 of the City of Boynton Beach Code of Ordinances, Mr. Foot moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of February 16, 2011 to an amount of $10,634.12 including administrative costs. Vice Chair Yerzy seconded the motion that passed 6 -1 (Ms. Carroll dissenting). Mr. Minoff understood the Board voted, but asked the Board for reconsideration. He reemphasized that the property violation was fixed before the Bank took ownership. Unfortunately, miscommunication and information were not being relayed. He advised the notices went to Shapiro and Fishman, which was the foreclosure counsel in Boca Raton, for the owner. Unfortunately, foreclosure firms are inundated with cases, so not everything got back to the servicer on behalf of the owner. Had the Bank been advised sooner, they certainly would have taken steps to correct it. The property is worth $38,000, with a potential sale of $37,000. The Bank sustained a great loss from the original loan amount and would ask for reconsideration of the $10,634.12 fine. Chair Costantino advised of the policy and procedure in place of how the parties involved are notified. Once the notices go out, the Board's hands are tied and cannot be responsible for tracking everyone involved in every foreclosure. The Board relies on what was available through public records through the courthouse and the Tax Collector's office. It was unfortunate that sometimes there was miscommunication and things fall through the cracks. Meeting Minutes Code Compliance Board Boynton Beach, FL August 17, 2011 Mr. Foot asked to confirm that the notice went to a proper address. Mr. Minoff indicated the notice went to the property owner at the property address. U.S. Bank did not take ownership and records would not have changed in the property appraiser's office until that time. Mr. Foot inquired of Officer Roy where the notice went and he stated the notice went to U.S. Bank, c/o Shapiro and Fishman, which was the address on record for the property owner. Case No. 10 -1576 CitiMortgage, Inc. 109 SE 4 th Avenue Officer Roy reviewed the case. The notice of violation was May 26, 2010 to replace or repair all damaged soffits and fascia, remove trash and debris, and register the property. The hearing was held on July 21, 2010 and no one appeared. The compliance date established was July 31, 2010, or incur a fine of $50 per day. The violations were brought into compliance on July 27, 2011 having 360 days of non- compliance for a total of $18,000. Eric Smith, 5676 Pebble Brook Lane, Boynton Beach advised that his company, Prodigy Capital, acquired the property through a foreclosure from the courthouse on May 24, 2011 and was now the current owner. As soon as they were made aware of the liens, the property was made compliant. He advised they were not aware there was a lien on the property. When a property is purchased at the courthouse steps, many times people are not aware of the liens. Value of the property was approximately $50,000 and would be re -sold at a later date. After some discussion with the Board, Mr. Smith requested the fine be reduced to administrative costs. Motion Based on the testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all lien reduction procedures set forth in Section 2 -84 through 2 -89 of the City of Boynton Beach Code of Ordinances, Mr. Foot moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of July 21, 2010 to an amount of $2,634.12 including administrative costs. Vice Chair Yerzy seconded the motion that unanimously passed. Case No. 10 -3174 Francois Baptiste & 115 NW 14 Ave Alourde Normil Officer Roy reviewed the case. The notice of violation was October 29, 2010 to install four inch numbers on the house, remove trailer and pallets from yard and obtain a Business Tax Receipt required on the property. The hearing was held on December 15, 2010 and no one appeared. The compliance date established was December 25, 2010, or incur a fine of $250 per day. The violations were brought into compliance on June 7, 2011 having 163 days of non - compliance for a total of $40,750. N CODE COMPLIANCE BOARD CITY OF BOYNTON BEACH, FLORIDA CITY OF BOYNTON BEACH Petitioner, vs. CASE NO. 10 -3429 U. S. BANK NATIONAL ASSOCIATION Respondent(s). LIEN MODIFICATION ORDER THIS CAUSE came before the City of Boynton Beach Code Compliance Board on the Respondent's application for lien reduction on Aug ust 17, 2011,, pursuant to Chapter two, Article five of the City Code of Ordinances. The Board having considered the application, all the facts regarding the specific code or codes the appealing party was in violation of, the date of the original board hearing, the date the affidavit of compliance was issued, the current lien amount and all pertinent information relating to the specific case and being otherwise duly advised in the premises, it is hereupon, ORDERED AND ADJUDGED that: 1. This Board has subject matter jurisdiction of this cause and jurisdiction over the Respondent. 2. The Respondent has met all the lien reduction procedures established by the City Code of Ordinances. 3. The lien imposed by the Board on February 16. 2011 on the Property located at 125 Arthur Ct.. Boynton Beach, Florida, with the legal description of: NORTH RIDGE ESTATES LT 18, according to the plat thereof as recorded in Plat Book 25, Page 144, of the Public Records of Palm Beach County, Florida, PCN: 08- 43- 45 -09 -07 -000 -0180 is REDUCED TO $10,634.12. 1 4. The City shall prepare a release and satisfaction consistent with this Order. 5. The release and satisfaction shall be recorded in the public records of Palm Beach County at the Respondent's expense. G. This Order is not final until the time period for appeal under the Code has elapsed and if appealed is properly disposed by the City Commission. 7. In the event that the property owner does not comply with the Code Compliance Board order, as approved or modified by the City Commission, within ninety (90) days of Commission's action, the Lien Reduction Order shall be of no further force or effect, and the original lien shall remain on the property. No extensions of the ninety (90) day period shall be permitted, and no further action by the Code Compliance Board or the City Commission shall be permitted regarding lien reduction. DONE AND rry ORDERED after hearing at City of Boynton Beach, Palm Beach County, Florida this OA day of A 6F , 2011. IJ!I . . _,— Michele Costantino, Chairperson CODE COMPLIANCE BOARD FILE AUG 2 4 2011 copies furnished: wyawsOFFICE Honorable Mayor and the City Commission City Attorney City Clerk Respondent 2