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Minutes 04-16-12 MINUTES OF THE CODE COMPLIANCE LIEN REDUCTION MEETING HELD ON MONDAY, APRIL 16, 2012, AT 6:30 P.M., IN COMMISSION CHAMBERS CITY HALL, 100 E. BOYNTON BEACH BOULEVARD, BOYNTON BEACH, FLORIDA PRESENT: Michele Costantino, Chair Shana Bridgeman, Assistant City Attorney Gary Cole Diane Springer, Code Compliance Coordinator Robert Bucella Rose Marie Yerzy ABSENT: Richard Yerzy, Vice Chair Kathleen Carroll Robert Foot I. Call to Order Chair Costantino called the meeting to order at 6:30 p.m. II. Approval of Agenda Diane Springer, Code Compliance Coordinator, explained there were five cases and all of the applicants were present. 01. Swearing in of Witnesses Shana Bridgeman, Assistant City Attorney, explained the procedures and administered an oath to all those intending to testify. There was consensus for Mr. Cole to serve as Vice Chair for the meeting in Mr. Foot's absence. Case No. 10 -2994 U.S. National Association Trust 1199 SW 225th Avenue Ms. Springer reviewed the case. The notice of violation was October 6, 2010, for violations pertaining to registration of a foreclosed property, mowing and trimming the overgrown yard, and removing trash and debris. The case was heard on November 17, 2010, and no one appeared. The Board set a compliance date of December 2, 2010, or a fine of $150 per day would be incurred thereafter. The violations were corrected on September 20, 2011, resulting in 291 days of non - compliance. 1 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL April 16, 2012 Ms. Springer had received an email from Justin Bell on September 19, 2011, requesting a lien reduction inspection. An email was sent advising Mr. Bell needed to repair the screens in the screen room, replace missing screens on the west side, repair the gates and pay outstanding water bills. The property was in complete compliance in October; however, Mr. Bell could not attend the meeting and the Lien Reduction was postponed several times. Ms. Springer had photographs and advised Mr. Bell was present. Justin Bell, Landalk Properties, LLC, 101 Benoist Farms Road, West Palm Beach, testified the property was obtained through a Palm Beach County Judicial Auction. They received title to the property on August 16, 2011. The violation was created by the previous owner and as soon as they obtained the property, they addressed the trash and landscaping issues. They corrected the violations and paid the water bills. Originally, there was a contract on the property, but it fell through. They currently have a buyer. He noted the administrative costs of $634 and requested the fine amount be reduced to those costs plus $1,000. Chair Costantino explained when a lien is placed on the property, the fine runs with the land. Mr. Bell responded he was familiar with the process as he was recently at a similar hearing in Wellington. He commented normally they address the violations and are granted leniency. They are in the business of taking foreclosures and turning them around. They have a new owner who was financially sound and expressed they were providing a service to the City of Boynton Beach. The lien was filed March 23, 2011, prior to the acquisition and Mr. Bell was aware of the liens when they purchased the property. He felt the amount accrued would have been less because they could not enter the property until 20 days after the Certificate of Title was issued. He acknowledged it was a common violation, and in every municipality they have dealt with, settlement was normally in the neighborhood of $1,000 to $3,000. Motion Based on 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. Bucella moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of November 17, 2010, to an amount of $5,634.12, including administrative costs. Ms. Yerzy seconded the motion that unanimously passed. Mr. Bell expressed the fine was higher than anticipated and wanted to run the amount by the buyer. Ms. Springer explained the procedures to appeal the decision were provided to him earlier in the meeting, and the action was not official until approved by the City Commission. 2 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL April 16, 2012 Case No. 08 -3901 Raymond P. Marasco 1704 SW 18th Street Ms. Springer reviewed the case. The notice of violation was December 18, 2008, for violations pertaining to trimming overgrowth, repairing the corner of the screen room, pressure cleaning the roof and the driveway. The case was heard on January 21, 2009, and no one appeared. A compliance date of February 5, 2009, was established, or a fine of $50 per day would be incurred thereafter. The violations were corrected on February 8, 2012, resulting in 1,097 days of non - compliance. To be eligible for the lien reduction, the applicant paid an outstanding water bill of over $2,000. Joseph Fisher, 1704 SW 18th Street, Boynton Beach, was the real estate agent representing Bank of America. He explained there was no contract on the property as the Bank was in the process of donating the property to Habitat to Humanity. Mr. Fisher explained he did not have any signed documents. Chair Costantino suggested tabling the case until he obtained written documentation of the donation. He agreed to try to get the paperwork by the next regular Code Compliance meeting on Wednesday. It was noted the violations were not a major issue, only an eyesore. Motion Vice Chair Cole moved that the aforementioned case be tabled until the Code Compliance Board meeting to be held on Wednesday, April 18, 2012. Mr. Bucella seconded the motion that unanimously passed. Case No. 10 -2728 Citibank National Trust 2207 SE 2nd Street Ms. Springer reviewed the case. The notice of violation was September 13, 2012, for violations pertaining to registration of a foreclosed property, repairing soffit and fascia, repairing broken windows, and mowing grass and weeds in the backyard. The case was heard on November 17, 2010, and no one appeared. A compliance date of November 27, 2010, was established, or a fine of $250 a day would be incurred thereafter. The violations were corrected on March 5, 2012, resulting in 463 days of non - compliance. Ms. Springer received an email February 28, 2012, and the case complied almost immediately. Staff inspected a second time for compliance for the lien reduction, but found the sprinkler system had to be repaired, trash and debris removed, including horticultural debris and overgrowth on the south gate. They also had to sod areas, all of which was done by April 3, 2012. Ms. Springer had photographs available for the Board. Reuben Jaen, 7100 NE 7th Avenue, Boca Raton, explained the Bank sold the property on January 25, 2012, to Eligio, LLC, which he was representing. It was a small family - 3 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL April 16, 2012 owned business. When they acquired the property, the repairs were made immediately. They added a new roof, exterior windows and doors, landscaping and sprinklers, and the interior was redone. It would be kept as a rental property and they requested a lien reduction. They purchased the property for $30,000 and spent the same amount in repairs. It was hoped the property would be an asset to the community. The lien was placed on the property on March 23, 2011, and they spoke to Code Compliance before purchasing the property to ensure there was a program they could participate in to reduce the lien amount. The property was not worth the lien amount, which was $115,750, and no one would buy it. The understanding was the City would want the property improved, so they took the chance the City would work with them. This was the only property they have and they do not improve properties continuously. He anticipated the property would generate about $850 per month in rent. Motion Based on 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 Cole moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of November 17, 2010, to an amount of $3,634.12, including administrative costs. Mr. Bucella seconded the motion. There was brief discussion the fine amount should be higher because the Bank decided they would not deal with the City. There is an Ordinance requiring the Bank to register the property. Chair Costantino would be surprised if they did not see more of the Banks trying to circumvent the Ordinance. The Ordinance was in place, and the buyer should beware. Vote Vice Chair Cole amended the fine amount to $4,634.12 including administrative costs. Mr. Bucella agreed to the amendment and the motion unanimously passed. Case No. 11 -1271 U.S. Bank National Association Trust 60 Baytree Lane CirsIe Ms. Springer reviewed the case. The notice of violation was May 18, 2011, for violations pertaining to a Business Tax Receipt. The case was heard on July 20, 2011, and a compliance date was established of July 31, 2012, or a fine of $100 per day would be incurred thereafter. The violations were corrected on January 19, 2012, resulting in 171 days of non - compliance. In order to apply for the Lien Reduction the applicant had to repair the sprinkler system, adjust the gate, repair rotten fascia, screens and broken windows. Ms. Springer had 4 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL April 16, 2012 photographs. In speaking with the respondent, she learned the occupant of the home was the former owner, and there were eviction papers. Don Clemens, 508 Harbor Road, North Palm Beach, was the primary vendor maintaining the property for the bank. Mr. Clemens requested the lien reduction because they were cited for not obtaining a Business Tax Receipt and for having a rental property. He clarified the property was never rented At the time the Bank took possession, the owner of record was the property owner, and they were evicted. He had a Writ of Eviction showing the mortgage holder was occupying the premises and the Lis Pendens. The case arose from a complaint from Animal Control. In order to verify ownership, staff checks the water bills, and the Property Appraiser's website. The Bank was listed as the owner, and it was believed they sublet the property since there was someone in the home. There was an exemption form for families, but in this case, the eviction process was used There was also a cash relocation program offered to the occupants, but they did not respond. Instead, they dragged it out to the last minute, Mr. Clemens provided the eviction papers and mortgage to the Board -. -,. which Mr. Cole verified had the same name listed. 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 Cole moved that this Board rescind the fine instituted in the aforementioned case by virtue of this Board's Order of July 20, 2011, and that the lien imposed by that Order be released Ms. Yerzy seconded the motion that unanimously passed. Case No. 09 -3178 Bank of America 8035 Stirrup Cay Court Ms. Springer reviewed the case. The notice of violation was October 1, 2009, for violations pertaining to registration of a foreclosed property, mowing the overgrown yard, trimming vegetation, and restoring pool to a sanitary condition. The case was heard on January 20, 2010, and no one appeared. A compliance date was established for February 4, 2010, or a fine of $150 per day would be incurred thereafter. The violations were corrected January 6, 2012, resulting in 700 days of non - compliance. Todd Burrows, Acquired Realty and Investments, 2005 Vista Parkway, Suite 102, West Palm Beach, explained the property was currently a Bank -owned property. It was assigned to him in December, 2011. At that time, they obtained vendors and addressed 5 Meeting Minutes Code Compliance Lien Reduction Boynton Beach, FL April 16, 2012 is under contract. The buyer's appraisal came in lower than the contract price, so the price was dropped and was now around $150,000. The registration of the property was confirmed on March 17, 2011. Mr. Burrows explained he had a difficult time entering the premises which was in a gated community until they received the proper documentation. Once it was received in late November /early December, the vendors gained access into Nautica to address the violations. Motion Based on the testimony and evidence presented in the aforementioned case, and having been advised that the Respondent has complied with all Hen reduction procedures set forth in Section 2 -84 through 2 -89 of the City of Boynton Beach Code of Ordinances, Mr. Bucella 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 $3,634.12, including administrative costs. Vice Chair Cole seconded the motion that unanimously passed. Chair Costantino requested Ms. Yerzy send the Board's well wishes to Mr. Yerzy. V. Adjournment Motion Vice Chair Cole moved to adjourn. Ms. Yerzy seconded the motion that unanimously passed. The meeting was adjourned at 7:07 p.m. LQ Catherine Cherry Recording Secretary 041712 6