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Minutes 04-24-23 MINUTES OF THE CODE COMPLIANCE LIEN REDUCTION MEETING HELD ON WEDNESDAY, APRIL 24, 2013, AT 6:30 P.., IN COMMISSION CHAMBERS CITY HALL, 100 E. BOYNTON BEACH BOULEVARD, BOYNTON BE ACH, F LORIDA PRESENT: Michele Costantino, Chair Shana Bridgeman, Assistant City Attorney Gary Cole, Second Vice Chair Diane Springer, Code Compliance Coordinator Carol Brenner Kathleen Carroll RoseMarie Yerzy ABSENT: Robert Foot, Vice Chair Alan Borrelli I. Call to Order Chair Costantino called the meeting to order at 6:31 p.m. A quorum was present. II. Approval of Agenda Diane Springer, Code Compliance Coordinator, noted the individuals associated with Case No. 12 -516, had not yet arrived.. Motion Vice Chair Cole moved to approve the agenda. Ms. Carroll seconded the motion that unanimously passed. III. Swearing in of Witnesses Attorney Bridgeman explained the hearing procedures and administered an oath to all those intending to testify. She confirmed with the applicants they were notified of the process to be followed. IV. New Business Case No. 06 -467 Omari Murray 340 SW 10th Avenue Ms. Springer presented the case. The notice of violation was dated March 6, 2006, regarding removal of unregistered vehicles, sod dead areas of the swale and trash hold area, and remove trash and debris. The case was heard on April 19, 2006, and no one 1 Meeting Minutes Code Lien Reduction Boynton Beach, FL April 2 4, 2 appeared. The compliance date and fine set by the Board was to correct the violations by April 29, 2006 or a fine of $50 per day would be imposed. The violations were corrected on April 11, 2013 with a fine accrued of $126,000. The Respondent paid the application fee and had to pay an outstanding water bill. Ms. Springer was first contacted by Alti Source on October 31, 2012, and she advised to qualify for a lien reduction, they needed to replace all rotted wood and paint to match, repair ceiling on rear porch and paint to match, replace screening in back patio and windows, remove outside storage on rear porch, replace garage door, pool circulation and sprinkler systems must be operable, repair doors and paint, and replace fence with self latching gates. She did not hear back from anyone. On April 11, 2013, she spoke with someone from Prodigy. Pete Roy, Chief Code and Rehabilitation Officer, inspected the property and all of the reduction violations were addressed, and it was probably one of the nicest rehab jobs he had ever seen. Bernadine Jones, 3402 Periwinkle Court, Unit 207, Palm Beach Gardens, the owner, seller, and the designated agent for Prodigy was present. The company purchases abandoned homes and rehabilitates them, obtains financing and homeowners for them, and ensures no vandals or squatters inhabit the dwelling. They purchased the property and received the Certificate of Title on February 6, 2013. Within 60 days, the property was in full compliance and Ms. Springer was notified. They spent about $30,000 to $35,000 and to fix the exterior, but the interior was much worse, so the total was about $58,000. They purchased the property for $50,000 and were listing it at $140,000. She commented an appraisal was not yet done, so the price may be adjusted. She hoped to receive a reduction as the property was vacant for a long time. There were two outstanding water bills paid in order to qualify for a lien reduction which were $196.82 and $55.28. Ms. Jones explained they sell the property at a 6% Commission. Four different families were interested in purchasing the property and they were waiting for this hearing before deciding the best way to proceed. Ms. Brenner inquired if they were aware of the liens when they purchased the property. Ms. Jones responded they purchased the property via Quit Claim Deed, she was notified about the approximate value of the liens and signed a waiver of lien. She was aware they could apply for the lien reduction after improving the property. She called for an inspection and filed for the lien reduction in April. Ms. Springer had before and after photographs she showed to the respondent and to the Board members. 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 2 Meeting Minutes Code Lien Reduction Boynton Beach, FL April 2 4, 2013 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 April 19, 2006, to an amount of $5,603.12, including administrative costs. The motion died for lack of a second. 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, Ms. Carroll moved that this Board reduce the fines instituted in the aforementioned case by virtue of this Board's Order of April 19, 2006, to an amount of $3,634.12, including administrative costs. Vice Chair Cole seconded the motion that passed 4 -1 (Ms. Brenner dissenting.) Case No. 12 -1634 Deutsche Bank National Trust 2531 SE 11th Court Ms. Springer presented the case. The notice of violation was dated August 24, 2012, for violations pertaining to foreclosed property must be registered, mow, weed and trim the property, secure gates to the pool that are self - latching, and to clean and maintain the pool in a sanitary condition. The case was heard on October 17, 2012, and no one appeared. The compliance date and fine set by the Board was October 27, 2012, or a fine of $1,000 per day would be imposed. The violations were corrected on April 12, 2013. The lien reduction application fee was paid. Ms. Springer was contacted April 11, 2013, to inspect the property. An inspection, on April 12, 2013, showed the violations were corrected. They only had to add four -inch house numbers before coming to the Board. Avi Stern, 5455 N. Federal Highway, Suite J, Boca Raton, commented the owner is not Deutsche Bank, it is Deutsche Home Loan Funding, which had no relation to Deutsche Bank. The foreclosing bank was Deutsche Bank. Mr. Stern explained his company purchased the property at a foreclosure sale on January 25, 2013. At the time there was no lien filed, rather it was filed on February 7, 2013. They were unaware of the issues and when they became aware of them on April 11, 2013, they were corrected by April 12, 2013. They spent a great deal of money but the property did not appraise for anywhere near what they hoped to sell it for. They invested over $50 thousand in the home. He commented he would have taken the lien into account, had it been filed when they purchased the property. Ms. Springer clarified for the record the Lis Pendens said Deutsche Bank National Trust. 3 Meeting Minutes Code Lien Reduction Boynton Beach, FL April 24, 2013 Discussion followed the repairs were done in one day. Mr. Stern explained some repairs were done prior, such as pool and lawn. There was an issue with the latch on the fence which was fixed and the house numbers. The items left over were very minor. They purchased the property on the courthouse steps on January 25, 2013, but the lien was recorded February 7, 2013. Ms. Brenner commented, if they purchased the property in January, the lien should have been recorded in their name because the property should be recorded in the new name within 10 days. Mr. Stern explained the Certificate of Title was received February 19, 2013. He clarified it takes three to four weeks for the Clerk to record documents. There were no further questions from the Board. 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. Brenner moved that this Board rescind the fine instituted in the aforementioned case by virtue of this Board's Order of $8,300, and that the lien imposed by that Order be released. The motion died for lack of a second. Ms. Brenner announced she used the wrong motion. 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. Brenner moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of October 17, 2012, to an amount of $8,300 including administrative costs. Chair Costantino passed the gavel and seconded the motion that passed 4 -1 (Ms. Carroll dissenting.) Case No. 11 -1405 Federal National Mortgage Association 124 SE 10th Avenue Ms. Springer presented the case. The notice of violation was sent on June 10, 2011, for violations pertaining to a permit needed for an installed water heater and windows. The case was heard on September 21, 2011, and no one appeared. The compliance date and fine set by the Board was October 1, 2011, or a fine of $100 per day would be imposed. The violations were corrected on October 18, 2012. The application fee for the lien reduction was paid. She was first contacted in December 2012 by a representative from the firm of Marshall Watson. She provided a list of items to be corrected, which was to trim and remove holly, replace the missing screens on windows, and repair the walk in the front of the property. They were also required to remove excess blocks from the rear of the property. She was again contacted in February by a real estate agent and in March, by Robin Dominguez, who was just 4 Meeting Minutes Code Lien Reduction Boynton Beach, FL April 24, 2013 assigned the property and who asked for the list of outstanding violations. The violations were corrected and inspected by March 7, 2013. There were no outstanding water bills that had to be paid Mitchell Monroe, Esq., from Choice Legal Group, formerly known as the Law firm of Marshall Watson, and the attorney for Fannie Mae, at 1901 West Cypress Creek Road, third floor, Ft. Lauderdale, was present. He offered apologies for Fannie Mae taking so long to correct the violations. He explained some assets were brought into compliance quickly and some were not. Fannie Mae was offering 10% of the face value of the lien, plus costs to settle. They have taken a huge loss on the property. It is listed for $34,900, with no interested parties. The Final Judgment in the bank foreclosure was $179,322.70, and they spent $27,000 to rehab the property. The lien is $38,834. He offered no further testimony. Chair Costantino noted there was a letter in the packet to review, which explained there were three liens before them. Ms. Springer contacted him this week to advise she spoke with the City's legal counsel and two cases were removed. The only valid case was Case No. 11 -1405. The original offer was for all three of the lien. They still wanted to offer 10% but only for the one valid lien. The first case was foreclosed on and the second case was against HSBC Bank, who had the Certificate of Title and Fannie Mae purchased the property. The violation on the valid case was only for the registration of the property. 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 reduce the fine instituted in the aforementioned case by virtue of this Board's Order of September 21, 2011, to an amount of $3,883 including administrative costs. Ms. Carroll seconded the motion that unanimously passed. Case No. 12 -697 Bank of New York 1096 S27th Avenue Ms. Springer presented the request. The notice of violation was sent on April 20, 2012, for violations pertaining to foreclosed property registration, to secure the structure on the west side, replace or repair roof and soffit over the front door, repair or replace the garage door, replace missing screens, mow, weed and trim all overgrowth, remove trash and debris and outside storage and repair the hole on the east side of the house. The case was heard on June 20, 2012, and no one appeared. The compliance date and fine set by the Board was June 30, 2012, or a fine of $1,000 per day would be imposed. The violations were corrected on April 22, 2013. The reduction application fee 5 Meeting Minutes Code Lien Reduction Boynton Beach, FL April 24, 2013 was paid. Ms. Springer was contacted at the end of March, and advised the attorney of record of the outstanding violations and a list of what needed for a lien reduction, in addition to the original violations that remained. The additional items were to repair the sprinkler system, obtain a permit for the garage door installation, replace missing soffit screens, obtain a permit for the installed French door, remove horticultural debris, weed and mulch planted areas and remove concrete rubble. There was an outstanding water bill of $1,167.17 that needed to be paid. She was again contacted on April 11, 2013, for a re- inspection. At that point, the garage door permit had not been issued, nor was the water bill paid. Officer Roy inspected the property on April 12, 2013. The screens needed to be installed, the horticultural debris needed to be removed and the property needed to be mulched and mowed. The re- inspection on April 22, 2013, showed all issues were corrected and all permits were finaled Avi Stern, 5455 N. Federal Highway, Suite J, Boca Raton, explained this case had the wrong bank listed. The owner was Deutsche Home Loan Funding. He explained this property was bought at a courthouse foreclosure sale. They were not aware of the lien, but when the lien search was done, they contacted Ms. Springer to try to address all the violations at one time. This did not occur, but all the violations were corrected by the second visit. Ms. Springer stated, for the record, the final summary judgment lists the Bank of New York as the property owner. Ms. Brenner inquired if Mr. Stern inspects the property before purchasing or if he purchases them off a list. Mr. Stern explained with judgments at foreclosure sales, they are not given an opportunity to inspect, but they do try to drive by. That is not always possible as sometimes there are 150 properties and they cannot go to every one. Ms. Brenner pointed out liens can be found online or by calling the City. Ms. Brenner explained this property was near her house and it was poorly maintained. Mr. Stern stated for the record they buy many properties and many in Boynton Beach. They fix and clean them up, hopefully improving the neighborhood. Mr. Stern explained he purchased the property for just over $130,000. They put on a new roof and made garage door repairs. The boarded windows in the back were replaced, landscaping was added, new floors were installed throughout the house and they painted both the inside and outside of the house. There was alot of work. The contract fell apart, since they learned of the lien at the end, and they were waiting for the hearing to close. He thought the buyer might find some where else to move. The buyer was also present. 6 Meeting Minutes Code Lien Reduction Boynton Beach, FL April 24, 2013 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, Mrs. Yerzy moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of June 20, 2012, to an amount of $3,634.12 including administrative costs. Ms. Carroll seconded the motion that failed 2- 3 (Chair Costantino, Vice Chair Cole and Ms. Brenner dissenting.) Discussion followed the amount was too low and the neighborhood suffered. Ms. Brenner commented this was a big issue and a longstanding violation. The poor condition of the home damages the neighborhood and the violations infringe on abutting properties. She suggested a higher amount. Ms. Carroll differed and explained vendors were coming into the community and taking problem properties that have been around for a long time, that caused health hazards for the community and property values to drop, fixed them and sold them to people who will maintain them. She pointed out the role of the Board is compliance and this case was complied not by the fault of this man, who was the one who fixed it. She expressed the $3,634 was an adequate fine to cover the City's costs to eliminate the problem. Discussion followed there were two sides to the issue and that courthouse auctions are a gamble. 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. Brenner moved that this Board reduce the fine instituted in the aforementioned case by virtue of this Board's Order of June 20, 2012, to an amount of $8,850, including administrative costs. Vice Chair Cole seconded the motion that passed 3 -2 (Mrs. Yerzy and Ms. Carroll dissenting.) Case No. 12 -516 Emigrant Funding Corp. 717 NE 10th Avenue Attorney Bridgeman administered an oath to the Respondent. Ms. Springer presented the case. The notice of violation was dated March 28, 2012, pertaining to mowing, trimming and needing a Business Tax Receipt. The respondent needed to sod dead areas of the lawn. The case was heard on May 16, 2012, and Joy Mattingly, representing the bank appeared. The compliance date and fine set by the 7 Meeting Minutes Code Lien Reduction Boynton Beach, FL April 24, 2013 Board was May 31, 2012, or a fine of $250 per day would be incurred. The violations were corrected on March 8, 2013. The lien reduction application fee was paid. Ms. Springer was contacted on April 16, 2013, about the reduction and she explained what needed to be done for the property to come into compliance, which was replace missing screens and windows, repair broken windows, replace missing wall and window air conditioning units, replace missing light fixtures and missing curb stop. It was inspected on April 19, 2013, and all the violations were corrected at that time. There were no outstanding water bills and the taxes were up -to -date. Fernando Perez, 19154 S Gardenia Avenue, Weston, one of the owners with Darwin 3 Corp that purchased the property from the bank, explained they purchased the home on January 30, 2013, after negotiating with the bank for four or five months. The property was in terrible shape and they spent $5,000 just on the work on the outside. They were waiting to go inside and correct the violations but there were tenants in units. They evicted all eight tenants and the property is vacant. The Corporation intended to own the property, rent it, and keep it as clean as possible. They purchased the property for $287,000. There are eight units. He commented the neighbors were happy with the acquisition. The improvements enhanced the environment of the neighborhood. Mr. Perez was aware of the liens when he purchased the property, waived the liens with the bank, and spoke with the City before purchasing it. 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 May 19, 2012, to an amount of $3,634.12 including administrative costs. Ms. Brenner seconded the motion that unanimously passed. Chair Costantino noted there was a newspaper article that Wellington had a first reading on changing the fine amounts for first offense Code violations and she agreed to send the article to Attorney Bridgeman and Ms. Springer. Ms. Springer explained the Ordinance was to raise the cap of the fine; however, that was already in place in Boynton Beach. Ms. Brenner also inquired if the Board permits stipulation agreements. Ms. Springer responded they do not and they do not want to allow them. It was tried in the past and there were too many issues associated with them. 8 Meeting Minutes Code Lien Reduction Boynton Beach, FL April 24, 2013 Chair Costantino recommended Ms. Brenner contact Ms. Springer and visit the Code Compliance office to obtain a greater understanding of how staff and the Code Compliance Board operate, and the processes in place. V. Adjournment There being no further business to discuss, Mrs. Yerzy moved to adjourn. Ms. Carroll seconded the motion that unanimously passed. The meeting was adjourned at 7:17 p.m. &-Ow a'id ' ( Impif , Catherine Cherry Recording Secretary 042593 9