16-007 ORDINANCE NO. 16 -007'
2
3 AN ORDINANCE OF THE CITY OF BOYNTON BEACH,
4 FLORIDA, AMENDING PART II, CHAPTER 2, ARTICLE V, OF
5 THE CODE OF ORDINANCES ENTITLED "CODE
6 COMPLIANCE BOARD; SPECIAL MAGISTRATE ", CREATING
7 A NEW SECTION 2 -93, "CONTINGENT LIEN/ENCUMBERANCE
8 SETTLEMENT PROGRAM "; AMENDING PART II, CHAPTER 2,
9 ARTICLE V, "CODE COMPLIANCE BOARD; SPECIAL
10 MAGISTRATE ", SECTION 2 -85, "CRITERIA FOR LIEN
11 REDUCTION" BY ADDING A NEW SECTION (4); PROVIDING
12 FOR CONFLICTS, SEVERABILITY, CODIFICATION AND AN
13 EFFECTIVE DATE.
14
15 WHEREAS, the City Commission established a pilot Conditional Lien Waiver
16 Program in 2014 for a period of one year which was designed to assist in the redevelopment
17 of commercial and residential properties by administratively settling City code liens which
18 often pose a barrier to obtaining clear and marketable title; and
19 WHEREAS, the clear and marketable title in turn gives the interested property
20 owners (a/k/a "contract purchasers ") the ability to gain needed financing to bring properties
21 into compliance or will allow for the transfer of title to the new property owner interested in
22 bringing the property into compliance; and
23 WHEREAS, the Conditional Lien Waiver Program, which will be re- designated
24 "Contingent Lien/Encumbrance Settlement Program" to reflect that release of the City's lien
25 is contingent on the contract purchaser actually closing on the purchase of the encumbered
26 property and correcting code violations is another tool that can be used by the Code
27 Compliance and Economic Development Divisions to assist in bringing chronically
28 blighted /nuisance properties that possess City code liens into compliant, productive
29 properties; and
30 WHEREAS, the City Commission, deems it appropriate and in the best interests of
31 the citizens and residents . of the City of Boynton Beach to approve and authorize the
32 Contingent Lien/Encumbrance Settlement Program.
33 BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF
34 BOYNTON BEACH, FLORIDA:
35 Section 1. The foregoing "WHEREAS" clauses are hereby ratified and confirmed
1 Amended Second Reading
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Words in strike type are deletions from existing law;
Words in underlined type are additions.
36 as being true and correct and are hereby made a specific part of this Ordinance upon adoption
37 hereof, as if fully set forth herein.
•
38 Section 2. Part II, Chapter 2, Article V, "Code Compliance Board; Special
39 Magistrate ", is amended by creating a new Section 2 -93 of the Code of Ordinances entitled
40 "Contingent Lien/Encumbrance Settlement Program," to read as follows:
41
42 1. The City may enter into a Contingent Lien/Encumbrance Settlement Agreement
43 (hereinafter "Agreement ") with a contract purchaser of real property when the City
44 determines the Agreement will advance, in the City's sole discretion, the development
45 or re- development of a chronically blighted /nuisance property. An Agreement with
46 the City is an opportunity and not a matter of right.
47
48 2. A party who has a contract to purchase real property encumbered by a City lien or a
49 property e-n-- whie -h daily tf -)E-le eot1}pl- ee li+nc are accruing may submit a written
50 application to the Code Compliance Division by fully completing the City's
51 application. Incomplete applications shall be returned to the applicant prior to
52 acceptance by the City, and if not returned with all required information completed
53 within thirty (30) days of the date of the City's notice of incompleteness the
54 application shall be considered withdrawn.
55
56 3. The applicant shall pay a non - refundable application fee of one thousand dollars
57 ($1,000), payable at the time the application is submitted. The amount of the
58 application fee may be revised by the City Commission by resolution.
59
60 4. Upon receipt of an application, the City shall confirm that subject property is free of
61 all outstanding debts (including taxes) due to the city. The Agreement shall delineate
62 all outstanding debt owed to the City and settlement amount of each and a total
63 settlement amount.
64
65 5. In addition to the documentation required as part of the application, the applicant may
66 provide any documentation, including, without limitation, photographs, receipts,
67 permits, and similar items, which the applicant wishes to have considered as part of
68 the request.
69
70 6. Upon the City's receipt of a complete application and payment of the application
71 fee, a City code enforcement officer shall inspect the applicant's property to
72 ascertain outstanding violations existing at the property. The code enforcement officer
73 shall provide the applicant with a written explanation of the remaining items that
74 must be completed in order to bring the property into compliance.
75
76 7. Upon the completion of the property inspection, the Code Compliance Coordinator
77 and Building Official, or their department designee, and any other member of City
78 staff designated by the City Manager, shall consider the factors required by this
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Words in strike through type are deletions from existing law;
Words in underlined type are additions.
79 section and determine the amount to which the accrued fines set forth in the lien(s)
80 should be reduced, if at all, and an appropriate time for bring the property into
81 compliance. This time for compliance is subject to negotiation and reflected in the
82 Agreement. The Agreement shall contain a provision for recordation of new liens
83 against the property due to failure to comply.
84
85 8. When determining a settlement amount, the Code Compliance Coordinator and
86 Building Official, or their department designee, and any other member of City staff
87 designated by the City Manager, shall consider the following:
88
89 a) The gravity of the violation;
90 b) Efforts, if any, taken by the violator /property owner to come into compliance;
91 c) Efforts, if any taken by the contract purchaser to come into compliance on other
92 properties in the City in which the contract purchaser has or had an interest;
93 d) Any previous code violations by violator or contract purchaser;
94 e) the length the violation remained in place, any difficulties or unique circumstances
95 affecting the ability to come into compliance,
96 f) the level of investment necessary to bring the property into compliance,
97 g) accrued amount of the lien,
98 h) current property value compared to the accrued lien,
99 i) time and incurred costs by City to bring the property into compliance,
100 j) current ownership of the property, ie. Owner - occupied, REO or investment
101 property and any other factors the City deems relevant.
102
103 9. The City's costs of enforcement, including, without limitation, any charges resulting
104 from City's abatement of health and safety violations on the property and
105 administrative costs shall be listed separately in the Agreement and may
106 not be mitigated or reduced.
107
108 10. The Agreement shall indicate the status of the violations on the property, the total fine
109 accrual, the lien settlement amount, the administrative fees and costs due incurred by
110 the City, and a provision stating that the City's agreement to settle the liens is
111 continent on the owner /bu er ° - in. the
112 property into compliance, . - - • - -• - - by a date certain. If there are any
113 outstanding debts owed to the City, the agreement shall indicate that t he City's
114 agreement to settle and provide a release of the lien(s) is conditioned upon the
115 owner /buyer providing the City with proof of payment.
116
117 11. The Agreement constitutes on offer by the City to settle the City liens or claims. The
118 City's offer is deemed withdrawn if not accepted by the contract purchaser and
119 returned to the City within thirty (30) days.
120
121 12. If more than thirty (30) days elapse from the date of the issuance of the City's offer,
122 the Applicant shall submit an updated Application and a re- inspection fee in the
123 amount of $150.00 so the City may' confirm whether the condition of the property has
124 changed. Upon re- inspection, the City shall provide an updated offer of Agreement,
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Words in strike through type are deletions from existing law;
Words in underlined type are additions.
125 valid for an additional thirty (30) days. City staff may in its sole discretion waive this
126 requirement if the Property is scheduled to close within five (5) days of the expiration
127 of the previously issued offer of Agreement. An extension granted pursuant to this
128 Section shall only be granted by the City one (1) time. If additional extensions are
129 required, the Applicant shall be required to submit a new application in accordance
130 with Paragraphs 1, 2, and 3 above.
131
132 13. The City is authorized at its sole discretion to grant no more than two one extensions
133 to the agreement for a period not to exceed 90 days. each. The extension shall be
134 requested in writing with justifiable cause demonstrated prior to the expiration of the
135 stipulated agreement. The City shall assess a fee of 10% of the lien settlement
136 amount as an extension fee.
137
138 14. If the name of the actual buyer /applicant changes after the issuance of the City's
139 Agreement, the Applicant shall be required to submit a new application in accordance
140 with Paragraphs 1, 2, and 3 above.
141
142 15. An Agreement is not assignable.
143
144 Section 3. Part II, Chapter 2, Article V, "Code Compliance Board; Special
145 Magistrate ", Section 2 -85(4) of the Code of Ordinances is amended to read as follows:
146
147 Sec. 2 -85. Criteria for lien reduction.
148
149 The following criteria must be complied with prior to a lien reduction hearing before the
150 Code Compliance Board or Special Magistrate:
151
152 (1) The property in question must be in total code compliance and an affidavit of
153 compliance must be issued for the code compliance case that is being appealed.
154
155 (2) The subject property must be free of all outstanding debts (including taxes) due the
156 city.
157 (3) An application fee of two hundred dollars ($200.00) must be included for the
158 application to be processed.
159
160 (4) This section does not apply to lien waivers or reductions are sought in conjunction
161 with redevelopment of commercial and residential properties pursuant to the
162 provisions of Section 2 - -93 of this Chapter.
163
164 Section 4. If any section, sentence, clause, or phrase of this Ordinance is held to be
165 invalid or unconstitutional by any court of competent jurisdiction, then said holding shall in
166 no way affect the validity of the remaining portions of this Ordinance.
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167 Section 5. It is the intention of the City Commission of the City of Boynton Beach,
168 Florida, that the provisions of this Ordinance shall become and be made a part of the City of
169 Boynton Beach Code of Ordinances; and that the sections of this ordinance may be
170 renumbered or relettered and the word "ordinance" may be changed to "section," "article," or
171 such other appropriate word or phrase in order to accomplish such intentions.
172 Section 6. This Ordinance shall become effective on the date of second reading set
173 forth below. All changes, additions, and implementation of any rate or fee shall take effect
174 immediately.
175 FIRST READING the 3rd day of March, 2016.
176 �h
177 SECOND AND FINAL READING the ` day of 4 r , 2016.
178
179 YES NO
180
181 Mayor Steven B. Grant
182
183 Commissioner Joe Casello
184
185 Commissioner Justin Katz
186
187 Vice -Mayor — Mack McCray
188
189 Commissioner — Christina L. Romelus
190
191 f� n
192 VOTE
193
194 ATTEST:
195
196
197 . � � z' v ��T`��j�•�
198 J th A. Pyle, CMC a
199 terim City Clerk ��.
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200 ' •
201 41 �'
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203 (Corporate Seal) :
204 " k. figa,).
(00119847.1 306 - 9001821 )
Words in strike through type are deletions from existing law;
Words in underlined type are additions.