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Minutes 10-17-11 MINUTES OF THE CODE COMPLIANCE BOARD LIEN REDUCTION MEETING HELD ON MONDAY, OCTOBER 17, 2011, AT 6:30 P.M. IN THE COMMISSION CHAMBERS, CITY HALL 100. E. BOYNTON BEACH BLVD, BOYNTON BEACH, FLORIDA PRESENT: Michele Costantino, Chair Shana Bridgeman, Assistant City Attorney Richard Yerzy, Vice Chair Diane Springer, City Representative Aimond Alexis Kathleen Carroll Gary Cole Robert Foot RoseMarie Yerzy I. Call to Order Chair Costantino called the meeting to order at 6:30 p.m. U. Approval of Agenda Motion Mr. Alexis moved to approve the agenda. Ms. Carroll seconded the motion that unanimously passed. III. Swearing in of Witnesses and Introduction Attorney Bridgeman administered the oath to those intending to testify. Ms. Springer reviewed the appeal procedure. Ms. Springer called the roll to determine who was present. IV. New Business A. Lien Reductions Case No. 10 -3331 Aurora Loan Services, LLC 311 SW 5 Lane Ms. Springer reviewed the case and explained the property was cited November 19, 2010 for violations pertaining to mowing, weeding and trimming. The case was heard January 19, 2011. No one appeared and a compliance date was set for January 29, 2011 or $100 per day was established. Compliance was achieved September 30, 2011 for 243 days of non - compliance. Ms. Springer explained the property had an Meeting Minutes Code Compliance Lien Reductions Boynton Beach, FL October 17, 2011 outstanding water bill that had to be taken care of prior to lien reduction. Several other items had to be completed such as shutters, missing screens, soffits, trash, debris and car parts. All those items were completed in a timely fashion. Ms. Springer distributed photographs to the members of the Board. Andrew Horonsky, Gahain and Associates, 8201 Peters Road, Ste 3000, Plantation, FL, advised he had authorization to represent Aurora Loan Services. He advised that Aurora Loan Services was not the homeowner of record but believed they were a respondent because of an ongoing foreclosure action with the defaulted mortgagor. This defaulted mortgagor had contested the foreclosure adamantly and the intent was to resolve this prior to any further actions. In the foreclosure, it had already gone to final judgment and was awaiting a Certificate of Sale, once the contesting litigation is complete. However, there was an agreed upon short sale between the buyer and Aurora Loan Services. The purchaser's agent was also present and was hoping to resolve this so the property could be transferred through a short sale, rather than wait for a Certificate of Title and have to proceed with further litigation down the road. Mr. Horonsky hoped to have the lien reduced to cover all hard costs, all administrative costs, plus possibly one to two percent of the total lien. Mr. Alexis inquired what the value of the house was currently. Kathleen Ambridge, Portfolio Properties, replied and advised that $70,500 was the agreed upon price. The property would be sold to an individual owner. Ms. Springer advised there were other things they had to do in order to come in for lien reduction such as replace or remove shutters, replace missing screens, repair the fence, replace missing soffit screens, trash, debris, car parts, replace front door and replace missing slats on the fence. Ms. Springer advised the first time she spoke to someone on the property was September 2, 2011 when she was asked what had to be done to come into compliance. Compliance was accomplished within 28 days. Photographs were shown to the Board and Mr. Foot commented that the property presented itself well through the photographs. 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 January 19, 2011 to an amount of $8,500 including administrative costs. The motion died for lack of a second. 2 Meeting Minutes Code Compliance Lien Reductions Boynton Beach, FL October 17, 2011 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 January 19, 2011 to an amount of $2,000 including administrative costs. The motion was seconded by Ms. Carroll and passed 5 -2 (Mr. Alexis and Vice Chair Yerzy dissenting). Case No. 09 -3300 Deutsche Bank Nat'l Trust 1800 NE 2 Lane Ms. Springer reviewed the details of the case and advised this and the next case are for the same property address. The property was cited October 13, 2009 for violations pertaining to registration of foreclosure property, mow overgrown yard, trim overgrown vegetation and secure the property. It was heard January 20, 2010 and no one appeared. The compliance date set by the Board was February 4, 2010 or incur a fine of $250 per day. Compliance date was June 8, 2011 for 488 days of non - compliance. Mr. Foot inquired if any parts of the initial charge were corrected before the final clean up. Ms. Springer advised it came into compliance on June 8, 2011 and as the photographs indicate, there was some compliance where the property was secured, but the registration took place and it was unsecured again, so it could not be complied until it was resecured. Some of the other things that needed to be done were missing windows, doors and screens and to continually secure the property. Diane Balsara, Nautica Realty, 1200 South Federal Highway, Ste 307, indicated Nautica Realty was the listing company for this asset through Wells Fargo Servicing. She advised the property was sent to them at the beginning of May. The City was immediately contacted to find out if there were any outstanding water bills or code liens. When there are, the agents are required to immediately request bids to start curing the problem. She presented estimates that were approved in the amount of $6,799. The list price was $23,900 and was under contract with an owner - occupied buyer for under $30,000. The listing and purchase price are different because it was a multiple offer situation where seven buyers put in offers. Ms. Springer indicated that Ms. Balsara paid an outstanding water bill in the amount of $1,500 in addition to the $6,799. Chair Costantino inquired if a date the property was registered was available. Ms. Springer indicated the property was originally registered January 20, 2010 and then it had to be re- registered. Ms. Balsara indicated the firm was looking to reduce the lien to administrative costs. 3 Meeting Minutes Code Compliance Lien Reductions Boynton Beach, FL October 17, 2011 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. Alexis moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of January 20, 2010 to an amount of $3,000 including administrative costs. Ms. Carroll seconded the motion that unanimously passed. Case No. 10 -1655 Duetsche Bank Nat'l Trust 1800 NE 2 Lane Ms. Springer reviewed the case. The property was cited June 1, 2010, for graffiti on the building. The property was overgrown and had trash and debris. The case was heard July 21, 2010. No one appeared. A compliance date was set for July 31, 2010 or incur a fine of $100 per day. Compliance was documented on September 30, 2011, having 425 days of non - compliance. This would have the same explanation as the previous case, as it is an on -going situation. Diane Balsara, Nautica Realty, 1200 South Federal Highway, Suite 307, advised the same facts related to this case. She felt, given the price of the property, and the amount of money already spent, the lien should be reduced to zero. Mr. Foot commented there were expenses relating to this and did not feel it could be zeroed out. There was discussion on what an appropriate fine amount would be due to the violation. 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 $1,500 including administrative costs. Mr. Alexis seconded the motion. The motion failed 2 -4 (Ms. Carroll, Ms. Yerzy, Mr. Cole and Vice Chair Yerzy dissenting). 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, Ms. Carroll 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 4 Meeting Minutes Code Compliance Lien Reductions Boynton Beach, FL October 17, 2011 $634.12 which were the administrative costs. Vice Chair Yerzy seconded the motion. The motion passed 4 -3 (Chair Costantino, Messrs. Foot and Alexis dissenting). Adjournment Motion There being no further business to come before the Board, Vice Chair Yerzy moved to adjourn. Mr. Alexis seconded the motion that unanimously passed. The meeting adjourned at 6:56 p.m. f , C. Ellie Caruso Recording Secretary 5