HomeMy WebLinkAbout75A - PH AMENDING CH. 8 OF MUNI CODEREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
AUGUST 18, 2020
TITLE:
PUBLIC HEARING — ADOPT AN
ORDINANCE AMENDING CHAPTER 8,
ARTICLE X OF THE SANTA ANA MUNICIPAL
CODE RELATING TO REGISTRATION AND
MAINTENANCE OF ABANDONED, VACANT
AND/OR DEFAULTED MORTGAGE
PROPERTIES TO ADD HISTORIC
PROPERTIES AND PROVIDE ADDITIONAL
PROPERTY OWNER RESPONSIBILITIES
AND ENFORCEMENT BY CITY
(GENERAL FUND REVENUE)
/s/Kristine Ridge
CITY MANAGER
CLERK OF COUNCIL USE ONLY:
F-MEJEJ-062wo,
❑ As Recommended
❑ As Amended
❑ Ordinance on 111 Reading
❑ Ordinance on 2ntl Reading
❑ Implementing Resolution
❑ Set Public Hearing For
weP►111►117g1iC07
FILE NUMBER
RECOMMENDED ACTION
1. Adopt an ordinance amending Chapter 8, Article X of the Santa Ana Municipal Code relating to
the registration and maintenance of abandoned, vacant and/or defaulted mortgage properties;
to add historic properties and provide additional responsibilities and enforcement options by the
City.
2. Authorize the City Manager and the City Attorney to prepare an amendment to an existing two-
year agreement with Property Registration Champions LLC for the administration and collection
of the Citywide Foreclosure Program, as reflected in the updated Scope of Services to include
historic properties and additional vacant properties subject to non -substantive changes
approved by the City Manager and City Attorney.
DISCUSSION
On October 3, 2017, the City Council adopted an ordinance for the registration of abandoned and
defaulted residential/commercial properties. Along with City Council approval, authorization was
granted to solicit the services of qualified companies through a Request for Qualification (RFQ)
process to expedite the registration program and seek companies that specialize in helping cities
search for defaulted/foreclosed properties and assist in the contact of financial institutions to advise
them of the foreclosure program and collection process. As such, the City of Santa Ana has
entered into an agreement with Property Registration Champions LLC (PROCHAMPS) to support
in the administration of the City's Foreclosure Registration Program. This program was effective
in identifying defaulted and foreclosed properties within the City. More importantly, it ensured
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Santa Ana Municipal Code Ordinance Amendment Regarding Vacant and Historic Properties
August 18, 2020
Page 2
banking institutions registered and monitored their properties to address property maintenance
concerns.
The City Council has a continued stake in protecting neighborhoods against various dangers
caused by vacant and abandoned properties and concludes that it is in the best interests of the
health, safety, and welfare of its citizens and residents to ensure that all properties within the City
are held to reasonable standards of maintenance and security. Vacant and abandoned residential,
commercial, industrial, and historic properties are a significant problem and can depreciate
property values, reduce property tax revenue, attract crime, create the potential for a permanent
loss of a historical resource, degrade the quality of life within the community, and foster an unsafe
and unhealthy environment for residents.
A recent Code Enforcement survey conducted in June 2020 found approximately 175 properties
vacant and abandoned identified as privately owned and not recognized as defaulted or foreclosed
mortgage properties. This included a number of historic properties allowed that have remained
vacant without proper maintenance, monitoring or security, leading to trespassing, vandalism,
delinquency, arson, and destruction.
Expanding on the effectiveness of the current ordinance, the Planning and Building Agency
recommends amending Chapter 8, Article X of the Santa Ana Municipal Code to include vacant
and historic properties providing additional tools for staff to enforce the City's registration and
maintenance program. The ordinance will require property owners of vacant properties to properly
maintain and secure their properties and also provide the city the ability to require the posting of
bonds by property owners, installation of fencing on all vacant properties, and additional private
security monitoring.
The adoption of the ordinance and implementation of the recommended changes and additions
will further assist the City in protecting neighborhoods from the negative impacts and conditions
that occur because of vacancy, lack of proper oversight, absentee ownership, and lack of
compliance with City regulations and laws (Exhibits 1-3).
FISCAL IMPACT
The total approved City Foreclosure Registration Program fee is $513. Similar to the
PROCHAMPS cost for the administration and collection of the Foreclosure Registration Program,
PROCHAMPS annual flat rate registration of $100 will continue for additional identified vacant or
abandoned properties such as historic properties. PROCHAMPS will issue a property status report
and a check for funds collected from this program to the City on a monthly basis. At this time, the
Planning and Building Agency estimates that the additional time needed for monitoring will increase
this amount by an additional $800. The staff is working with PROCHAMPS to finalize and refine
the amount. The preparation of a fee amount resolution to be adopted with the second reading of
the ordinance.
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Santa Ana Municipal Code Ordinance Amendment Regarding Vacant and Historic Properties
August 18, 2020
Page 3
The funds received will be deposited in the Foreclosure, Abandoned, and Vacant Properties
Registration Program (Account No. 01116002-53628). The Miscellaneous Fee Request
Modification Form is provided to reflect the revised name of this program (Exhibit 1).
Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director — Finance and Management
Services Agency
Submitted By: Minh Thai, Executive Director/Planning and Building Agency
Exhibits: 1. Miscellaneous Fee Request
2. Amended Ordinance
3. Updated Scope of Services
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Exhibit 1
Miscellaneous Fee Request
The following information is required by Departments to request the establishment of a new
Miscellaneous Fee or an increase/decrease of an existing Miscellaneous Fee beyond the
established rate.
Department Information
Department
Planning and Building Agency
Miscellaneous Fee Title: Foreclosure, Abandoned, and Vacant Properties Registration Program Fee
Contact Person: Sona Mooradian / Alvaro Nunez
Email: smooradian@santa-ana.org / anunez@santa-ana.org
Phone: x2712 / 5871
Proposal Information
Proposed Effective Date: August 18, 2020
Proposed/Current Account Number: 01116002-53628
Proposed Action:
❑ Establish a new fee in the amount of
❑ Increase fee amount from to
❑ Decrease fee amount from to
❑■ Other (Please Explain) Modify Misc. Fee Name
Provide a brief description of the basis for the proposed, increased, or decreased fee.
We are Revising the Misc Fee Name from "Foreclosure Registration Program Fee" to "Foreclosure, Abandoned, and Vacant Properties
Registration Program Fee." This name change is due to City of Santa Ana Adopting an ordinance amending chapter 8, Article X of the Santa
Ana Municipal Code relating to the registration and maintenance of abandoned, vacant and/or defaulted mortgage properties; to add historic
properties and provide additional responsibilities and enforcement options by the city.
If this is a new fee, explain how these expenses have been paid in past years.
This is not a new fee and the fee amount will not change.
1
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If this is a new fee, what are the projected annual revenues?
N/A
If this is a request to increase an existing fee, what has changed to cause the current
adjustment rate to insufficient?
N/A
Are there any legal limitations this fee must adhere by (i.e. statues)?
N/A
On the attached spreadsheet, provide a detailed breakdown of the fee calculation proposed,
include all projected expenses.
For Budget Office Use Only:
❑ Denied
❑ Approved
Approval: Name Title Date
r7
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Exhibit 2
ORDINANCE NO. NS-XXXX
AN ORDINANCE OF THE CITY OF SANTA ANA AMENDING
CHAPTER 8, ARTICLE X OF THE SANTA ANA MUNICIPAL
CODE RELATING TO REGISTRATION AND MAINTENANCE
OF ABANDONED, VACANT AND/OR DEFAULTED
MORTGAGE PROPERTIES; ADDING HISTORIC
PROPERTIES; PROVIDING FOR ADDITIONAL PROPERTY
OWNER RESPONSIBILITIES, AS WELL AS ADDITIONAL
ENFORCEMENT OPTIONS BY CITY; AND, PROVIDING FOR
MONITORING PROGRAM BY CITY
THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS:
SECTION 1. The City Council of the City of Santa Ana hereby finds, determines,
and declares as follows:
A. The City Council desires to protect the public health, safety and welfare of the
citizens of the City of Santa Ana and maintain a high quality of life for the citizens of
the City through the maintenance of structures and properties in the City; and
B. Vacant and abandoned residential, commercial, industrial, and historic properties
are a significant problem and can depreciate property values, reduce property tax
revenue, attract crime, create the potential for a permanent loss of a historical
resource, degrade the quality of life within the community and foster an unsafe and
unhealthy environment for residents; and
C. Property owners are often located outside of the area or state and do not provide
regular monitoring or securing of their properties, leading to increased dereliction,
trespassing, squatting, arson, and other crimes; and
D. A number of historically significant properties have been abandoned or allowed to
remain vacant without proper monitoring or security, leading to vandalism,
squatting, arson, and destruction; and
E. The Council has a vested interest in protecting neighborhoods against various
dangers caused by vacant and abandoned properties and concludes that it is in the
best interests of the health, safety, and welfare of its citizens and residents to ensure
that all properties within the City are held to reasonable standards of maintenance
and security; and
F. The City Council desires to amend the City's Code in order to provide additional tools
for staff to aggressively enforce the City's registration and maintenance program,
requiring the posting of bonds by property owners and installation of fencing on all
vacant properties; and
G. The City Council finds that the implementation of the following changes and additions
Ordinance No. NS-XXXX
Page 1 of 16
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will assist the City in protecting neighborhoods from the negative impacts and
conditions that occur as a result of vacancy, absentee ownership and lack of
compliance with City regulations and laws.
SECTION 2. The adoption of this ordinance is exempt from the California
Environmental Quality Act and a Notice of Exemption will be filed after this ordinance is
adopted.
SECTION 3. Division 3, Article X, of Chapter 8 of the Santa Ana Municipal Code is
hereby amended and restated such that it reads as follows:
DIVISION 3. - REGISTRATION AND MAINTENANCE OF ABANDONED, VACANT AND/OR
DEFAULTED MORTGAGE PROPERTIES
Sec.8-1982. Purpose.
It is the intent of the city council, through the adoption of this division, to establish a
mechanism to protect neighborhoods from becoming blighted through the lack of maintenance
and security of abandoned, defaulted and/or vacant properties; to establish a property
registration program for such properties, and to set forth guidelines for the maintenance of such
properties.
Sec. 8-1983. Definitions.
For the purpose of this division the following terms, phrases and words, shall have
the meaning set forth below:
"Abandoned" means any real property that isL.L1Z vacant or shows evidence of
vacancy, aa4 (4-2) is subject to a current notice of default and/or notice of trustee's sale,
pending tax assessors lien sale and/or (2-�) is the subject of a foreclosure sale resulting in
the acquisition of title by an interested beneficiary of a deed of trust, and/or (3-4) was
conveyed to the current owner under a deed in lieu of foreclosure/sale.
"Abatement order" means a notice of violation, notice and order, or administrative
citation. As used in this chapter, the terms "abate" and "abatement" means action to repair,
replace, remove, destroy, terminate, or otherwise remedy the condition or activity in
question by such means and in such manner as is necessary in the interests of the health,
safety or welfare of the public. (Section 17-4)
"Accessible property" means real property that is accessible to the public, either, in
general or through an open and unsecured door, window, gate fence, wall, etc.
"Accessible structure" means a building or structure that is not secured or is open in
such a way as to allow public or unauthorized access to the interior.
"Administrative penalty payment due date" means the date that is the 1 Oth day after
the issuance of an abatement order, a notice of violation issued pursuant to section 1-
Ordinance No. NS-XXXX
Page 2 of 16
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21.7(1).
"Agreement" means any written instrument that transfers or conveys title to
residential or commercial feat property from one owner to another after a sale, trade,
transfer or exchange.
"Beneficiary" means a lender participating in a real property transaction that holds a
secured interest in the real property in question identified in a deed of trust.
"Boarded building" means a vacant building or portion of a vacant building whose
doors and windows have been covered with plywood or other material for the purpose of
preventing entry into the vacant building by persons or animals.
"Building" means any structure, including, but not limited to, any residential,
commercial, industrial, or assembly structure, approved for occupancy on either a lot of
record or within a single project approved by the city pursuant to the city's Code or
applicable specific plan.
"Buyer" means any person, partnership, association, corporation, fiduciary or other
legal entity that agrees to transfer anything of value in consideration for real property via
an agreement.
"Chief Building Official" or "building official" means Building Safety Manager, Code
Enforcement Manager, or their designees.
"Commercial Property" means any improved real property, or portion thereof,
designed or permitted to be used for commercial non-residential purposes, including
buildings and structures located on such improved real property. This includes any real
property being offered under any circumstances for sale, trade, transfer, or exchange as
"commercial." whether or not said property is leaally permitted and zoned for such use.
"Dangerous building" means any building or structure reasonably deemed by
authorized city staff to represent a violation of any provision specified in the Uniform Code
for the Abatement of Dangerous Buildings, International Property Maintenance Code, or
California Health and Safety Code section 17920.3.
"Days" means calendar days.
"Deed of trust" means an instrument whereby an owner of real property, as trustor,
transfers a secured interest in the real property in question to a third party trustee, as
security for a loan issued in the context of a real property transaction. This definition applies
to any and all subordinate deeds of trust; i.e., 2nd trust deed, 3rd trust deed, etc.
"Deed in lieu of foreclosure" means a recorded instrument that transfers ownership
of property from the trustor to the holder of a deed of trust upon consent of the beneficiary
of the deed of trust.
Ordinance No. NS-XXXX
Page 3 of 16
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"Default" means the material breach of, or failure to fulfill, a legal or contractual duty
arising from or relating to a deed of trust.
"Distressed" means any building, structure or real property that is subject to a current
notice of default and/or notice of trustee's sale, pending tax assessors lien sale and/or any
real property conveyed via a foreclosure sale resulting in the acquisition of title by an
interested beneficiary of a deed of trust, and/or any real property conveyed via a deed in
lieu of foreclosure/sale, regardless of vacancy.
"Enforcement official" means the city manager, the building official, and/or any
employee or agent of the city designated and/or charged with enforcing this Code, including
but not limited to applicable codes adopted by reference therein.
"Evidence of vacancy" means any real property condition that independently, or in
the context of the totality of circumstances relevant to that real property would lead a
reasonable enforcement official to believe that a property is vacant or occupied by a person
without a legal right of occupancy. Such real property conditions include but are not limited
to: overgrown or dead vegetation; accumulation of newspapers, circulars, flyers or mail;
past due utility notices or disconnected utilities; accumulation of trash, junk or debris; the
absence of window coverings such as curtains, blinds or shutters; the absence of
furnishings or personal items consistent with residential habitation; and/or statements by
neighbors, passersby, delivery agents, government employees that the property is vacant.
"Foreclosure" means the legal process by which a mortgagee, or other lien holder,
terminates a property owner's equitable right of redemption to obtain legal and equitable
title to the real property pledged as security for a debt or the real property subject to the
lien. This definition shall include, but is not limited to, public notice of default, a deed -in -lieu
of foreclosure, sale to the mortgagee or lien holder, certificate of title and all other
processes, activities and actions, by whatever name, associated with the described
process. The process is not concluded until the property obtained by the mortgagee, lien
holder, or their designee, by certificate of title, or any other means, is sold to a non -related
bona fide purchaser in an arm's length transaction to satisfy the debt or lien.
"Historical/historic Building" means any structure, including, but not limited to, any
residential, commercial, industrial, or assembly structure designated as having historical
or architectural importance by inclusion in the city register of historical properties pursuant
to Chapter 30 of the Santa Ana Municipal Code.
"Industrial Property" means any improved real property, or portion thereof, designed
or permitted to be used for industrial non-residential purposes, including buildings and
structures located on such improved real property. This includes any real property being
offered under any circumstances for sale, trade, transfer, or exchange as "industrial,"
whether or not said property is legally permitted and zoned for such use.
"Local" means within forty (40) driving miles of the subject building, structure or real
property.
Ordinance No. NS-XXXX
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"Neighborhood standard" means the condition of real property that prevails in and
through the neighborhood where an abandoned building, structure or real property is
located. When determining the neighborhood standard no abandoned or distressed
building, structure or real property shall be considered.
"Notice of default" means a recorded instrument that reflects and provides notice
that a default has occurred under a deed of trust, and that the beneficiary intends to
proceed with a trustee's sale.
"Notice of trustee's sale" means a document prepared and recorded by the trustee
that sets forth the day, date and time of the trustee's sale, describes the property to be
sold, and gives an estimate for the unpaid debt on the deed of trust secured by the property.
"Out of area" means in excess of forty (40) road or driving miles of the subject
building, structure or real property.
"Owner" means any person, partnership, association, corporation, fiduciary or other
legal entity having a legal or equitable title or any interest in real property.
"Owner of record" means any person shown as the owner of land on the last
equalized assessment roll produced by the Orange County Recorder's Office.
"Property" means any unimproved or improved real property designed or permitted
to be used for commercial, industrial, residential or dwelling purposes, or portion thereof,
including but not limited to building or structures located on said real property, regardless
of condition.
"Registrable property" means any real property located in the city, whether vacant
or occupied, that is encumbered by a mortgage in default, is subject to an ongoing
foreclosure action by the mortgagee or trustee, is subject to an application for a tax deed
or pending tax assessor's lien sale, or has been the subject of a foreclosure sale where the
title was transferred to the beneficiary of a mortgage involved in the foreclosure and any
properties transferred under a deed in lieu of foreclosure/sale. "Registrable property" shall
also refer to vacant property, whether residential, commercial, industrial or historic, subject
to the property registration guidelines discussed below.
The designation of a "default/foreclosure" property as "registrable" shall remain in place
until such time as the property is sold to a non -related bona fide purchaser in an arm's
length transaction or the foreclosure action has been dismissed and any default on the
mortgage has been cured.
"Residential building" means any improved real property, or portion thereof,
designed or permitted to be used for dwelling purposes, including buildings and structures
located on such improved real property. This includes any real property being offered under
any circumstances for sale, trade, transfer, or exchange as "residential," whether or not
said property is legally permitted and zoned for such use.
Ordinance No. NS-XXXX
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"Secure" means such measures as may be directed by an enforcement official that
assist in rendering real property inaccessible to unauthorized persons, including but not
limited to repairing fences and walls, chaining/pad locking gates, the repairing or boarding
of doors, windows or other openings. Such measures shall be implemented in conformance
with all applicable standards of the United States Department of Housing and Urban
Development.
"Tax assessor's lien sale" means the sale, conducted by the Assessor of Orange
County, of tax liens for delinquent taxes on the property.
"Trustee" means any person, partnership, association, corporation, fiduciary or other
legal entity holding a deed of trust securing an interest in real property for the benefit of the
beneficiary.
"Trustor" means any owner/borrower identified in a deed of trust, who transfers an
interest in real property to a trustee as security for payment of a debt by that
owner/borrower.
"Vacancy/vacant" means any building, structure or real property that is unoccupied
or occupied by a person without a legal right of occupancy.
"Vacant building" means a building where at least thirty-five (35%) percent of the
total floor area within the building is not occupied.
"Vacant shopping center/industrial complex" means a shopping center or industrial
complex on a single property containing one or more buildings where fifty (50%) percent
of the gross leasable area is not occupied.
Sec. 8-1984. - Duty to record instrument for property transfer.
In order to ensure proper noticing regarding registration of abandoned, defaulted and/or
vacant properties pursuant to this Article, within ten (10) days of a property transaction involving
a change in the identity of an owner or the owner of record, or alternatively a
transfer/assignment of a loan or deed of trust secured by such residential, industrial or
commercial property, each beneficiary and trustee engaged in said transaction or
transfer/assignment shall record, with the Orange County Recorder's Office, an instrument
evidencing such transaction, transfer or assignment. This instrument shall reflect the identity,
mailing address and telephone number of the trustee and beneficiary responsible for receiving
payments associated with the loan or deed of trust in question. This duty/obligation shall be
joint and several among and between all trustees and beneficiaries and their respective agents.
Sec. 8-1985. - Registration.
A. Each beneficiary and trustee, who holds a deed of trust on a property located
within the city, shall perform an inspection of the property that is security for the
Ordinance No. NS-XXXX
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deed of trust upon default by the trustor prior to recording a notice of default or
similar instrument with the Orange County Recorder's Office, and must comply
with Civil Code section 2923.5, as amended from time to time.
B. If such inspection shows that the property is vacant or abandoned, the owner,
beneficiary or trustee shall, within ten (10) days of the inspection, register the
property with the city's code enforcement division on forms provided by the city.
C. If the property is occupied but distressed, the trustee and beneficiary or a
designee shall inspect the property on a monthly basis until: 1.The trustor or
another party remedies the default; or 2.The property is found to be vacant or
shows evidence of vacancy, deemed abandoned and registered subject to
subsection B.
D. The registration required pursuant to subsection B. shall contain the identity of
the beneficiary and trustee, the direct mailing address (no postal box address),
email address and phone number of the beneficiary and trustee and, in the case
of a corporate or out of area beneficiary or trustee, the local property
management company, if any, responsible for the security, maintenance and
marketing of the property in question.
E. The registration pursuant to subsection B. shall be renewed annually.
F. This section shall also apply to properties that have been the subject of a
foreclosure sale wherein title has been transferred to the beneficiary of a deed of
trust involved in the foreclosure, and to any properties transferred under a deed
in lieu of foreclosure.
G. Properties subject to this chapter shall remain subject to the annual registration
requirement, security and maintenance standards of this division as long as they
remain vacant and/or abandoned.
H. Any person, partnership, association, corporation, fiduciary or other legal entity
that has registered a property under this chapter must make a written report to
the city's code enforcement division of any change of information contained in
the registration within ten (10) days of the change.
I. If the mortgage on a registrable property is sold or transferred, the new
mortgagee is subject to all the terms of this article and within five (5) days of the
transfer must register the property and pay a registration fee in accordance with
this article. Any previous unpaid annual registration fees are the responsibility of
the new mortgagee or trustee and are due and payable with their initial
registration.
J. If the mortgagee owner of a foreclosed real property sells or transfers the
property to a non-arm's length related person or entity, the transferee is subject
to all the terms of this article and within five (5) days of the transfer must register
Ordinance No. NS-XXXX
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the property and pay a registration fee in accordance with this article. Any
previous unpaid annual registration fees are the responsibility of the new
registrable property owner and are due and payable with their initial registration.
K. As long as the property is registrable it shall be inspected by the mortgagee, or
designee, monthly. If an inspection shows a change in the property's occupancy
status the mortgagee shall, within ten (10) days of that inspection, update the
occupancy status of the property registration.
Mortgagees who have existing registerable property on the effective date of the
ordinance from which this section is derived have thirty (30) calendar days from
the effective date to register the property with the City, or its designee, on forms
or other manner as directed, and indicate whether the property is vacant or
occupied.
Sec. 8-1986. Maintenance Requirements.
It is declared a public nuisance for any person, partnership, association, corporation, fiduciary
or other legal entity, that owns, leases, occupies, controls or manages any vacant or abandoned
property to cause, permit, or maintain any property condition contrary to any provision of this
chapter. The following maintenance standards shall apply to any registrable property, including
vacant or abandoned properties subject to registration under this Division:
A. Any registrable property shall be maintained in compliance with the requirements
of this chapter and Code Chapters 16, Chapter 41, the Uniform Code for the
Abatement of Dangerous Buildings, International Property Maintenance Code
and California Health and Safety Code section 17920.3.
B. Registrable property shall be kept free of weeds, dry brush, dead vegetation,
excessive foliage growth, trash, junk, debris, building materials, any
accumulation of newspaper, circular flyers, notices (except those required by
federal, state or local law), discarded personal items including but not limited to,
furniture, clothing, large and small appliances, printed material or any other items
that give the appearance that the property is abandoned.
C. Registrable property shall be maintained free of graffiti, tagging or similar marking
in accordance with Article IV of Chapter 10 of this Code. Any removal or painting
over of graffiti shall be with an exterior grade paint that matches the color of the
exterior of the structure.
D. Visible front and side yards shall be landscaped and maintained to the
neighborhood standard. Landscaping includes, but is not limited to, grass,
ground covers, bushes, shrubs, hedges or similar plantings, decorative rock or
bark or artificial turf/sod designed specifically for residential installation and
standards listed in section 41-609 "Landscape," and abide by the planning and
public works division landscape standards. Landscaping does not include weeds,
gravel, broken concrete, asphalt, plastic sheeting, mulch, indoor -outdoor carpet
or any similar material.
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E. Pools and spas shall be kept in working order so that water remains clear and
free of pollutants, mosquito larvae, and debris, or alternatively shall be drained
and kept dry. In either case, properties with pools and/or spas must comply with
the minimum security fencing requirements set forth in Article XIII of this chapter
and minimum state standards, whichever is more restrictive.
F. Adherence to this section does not relieve the beneficiary/trustee or property
owner of obligations set forth in any covenants, conditions and restrictions and/or
homeowner's association rules and regulations which may apply to the property.
G. An enforcement official may allow exceptions to the maintenance standards set
forth in this section for registrable property that is under construction and/or
repair, that is diligently pursued for at least three (3) business days per week,
and is undertaken in compliance with all applicable laws including but not limited
to city permitting requirements.
H. No person. firm. partnership. corporation or other entitv shall allow a residential
commercial, historical, or industrial building designed for human use or
occupancy to stand vacant for more than forty-five (45) days, unless the owner
establishes by substantial evidence to the reasonable satisfaction of the chief
building official that one of the following applies:
(1) The building is the subject of an active building permit for repair or
rehabilitation and the owner is progressing diligently to complete
the repair or rehabilitation:
(2) The building meets all applicable codes, is actively maintained in
accordance with all city ordinances, is ready for occupancy, and is
actively being offered for sale, lease, or rent.
The owner of anv boarded buildina. whether boarded by voluntary action of the
owner or as a result of enforcement activity by the city, shall cause the boarded
building to be rehabilitated for occupancy within ninety (90) days afterthe building
is boarded and shall comply with the provisions of subsections A through H of
this section, as well as all other provisions of the City Code.
J. It is declared a public nuisance for any person, partnership, association,
corporation, fiduciary, or other legal entity that owns, leases, occupies, controls
or manages any building or property subject to this chapter to cause, permit, or
maintain such building or property in violation of subsections A through I of this
section.
K. Within thirty (30) days after a property becomes a vacant building as defined
herein, the owner of a vacant residential, commercial, historical, or industrial
building shall cause said building to be registered as a vacant building pursuant
to the provisions of section 8-1985 of this chapter and shall pay the registration
fee required per section 8-1989. Further, the owner of said vacant building shall
comply with all applicable provisions of this Code with respect to property
maintenance, nuisance abatement, local property management requirements
and monitoring.
Ordinance No. NS-XXXX
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Sec. 8-1987. Security Requirements.
A. Abandoned and vacant properties shall be secured so as not to be accessible to
unauthorized persons.
B. Securing of vacant or abandoned property includes but is not limited to closing
and locking of windows, doors (walk-through, sliding and garage), gates and any
other opening that may allow access to the interior of the property and or
structure(s). In the case of broken windows securing means re -glazing or
boarding the window. If deemed necessary by the Code Enforcement Manager,
securing of vacant or abandoned property may require the provision of security
guard services. Such services shall be of sufficient duration and frequency to
ensure that the property remains secure and no unauthorized persons may gain
entry.
C. If the vacant or abandoned property is owned by a corporation and/or out of area
beneficiary/trustee/owner, a local property management company shall be
contracted to perform weekly inspections to verify that the abandoned property
is maintained in accordance with the requirements of this section, and any other
applicable laws.
D. The property shall be posted with the name and 24-hour contact phone number
of the local property management company. The posting shall be no less than
18" x 24", shall be of a font that is legible from a distance of forty-five (45) feet,
and shall contain the following verbiage: "THIS PROPERTY MANAGED BY
," and "TO REPORT PROBLEMS OR CONCERNS CALL (name
and phone number)."
E. The posting shall be placed on the interior of a window facing the street to the
front of the property so it is visible from the street, or secured to the exterior of
the building/structure facing the street of the front of the property so it is visible
from the street. If no such area exists, the posting shall be on a stake of sufficient
size to support the posting, in a location that is visible from the street to the front
of the property, and to the extent possible, not readily subject to potential
vandalism. Exterior posting must be constructed of, and printed with weather
resistant materials.
F. The local property management company shall inspect the property on a weekly
basis to determine if the property is in compliance with the requirements of this
division. If the property management company determines the property is not in
compliance, it is the company's responsibility to bring the property into
compliance.
G. The duties and obligations specified in this section shall be joint and several
among and between all trustees and beneficiaries and their respective agents.
Ordinance No. NS-XXXX
Page 10 of 16
75A-15
H. Bonding and Fencing Requirements for Vacant Buildings.
(1) Whenever a building remains vacant for a period of ninety (90) days or more,
in addition to the other requirements of this chapter the owner, beneficiary or
trustee, shall post with the city a bond or similar security in an amount equal to
three (3) months estimated costs of blight prevention and security activities, as
estimated by the Chief Building Official or Code Enforcement Manager.
(2) Whenever a building remains vacant for a period of ninety (90) days or more,
in addition to the other requirements of this chapter, the owner, beneficiary or
trustee shall cause to be installed a minimum six foot (6) high chain -link fence
adjacent to the property boundaries, or other alternative fencing acceptable to
the Chief Building Official or Code Enforcement Manager that is adequate to
protect the public health, safety and welfare, unless the City officials determine
that the installation of such fencing will be detrimental to the public safety and
welfare. Any fencing required under this section may additionally require
screening if deemed necessary in order to protect the safety, streetscape and
overall appearance of the site. The Chief Building Official and Code Enforcement
Manager may promulgate additional fencing standards for vacant properties
consistent with this section.
Sec. 8-1988. Additional authority; Monitoring Program.
A. In addition to the enforcement remedies established in this division, the city shall
have the authority to require the beneficiary, trustee, owner or owner of record of
any property affected by this section, to implement additional maintenance and/or
security measures including but not limited to, securing any and all doors,
windows or other openings, installing additional security lighting, increasing on -
site inspection frequency, employment of an on -site security guard or other
measures as may be reasonably required to secure and reduce the visual decline
of the property.
B. Property Monitoring Program and Procedures.
(1) Purpose. Vacant buildings are a major cause and source of blight in
residential and non-residential neighborhoods, especially when the owner of the
building fails to maintain and manage the building. Vacant buildings often attract
squatters and criminals, including drug users. Use of vacant buildings by
squatters and criminals creates a risk of fire for the vacant buildings and adjacent
properties. Vacant properties are often used as dumping grounds for Munk and
debris and are often overgrown with weeds and grass. Vacant buildings which
are boarded up and other long-term vacancies discourage economic
development and retard appreciation of property values.
In order to combat these issues, the focus of the monitoring program shall be: (a)
To identify buildings that become vacant; (b) To order vacant buildings that are
open and accessible to be secured against unlawful entry pursuant to City codes,
Ordinance No. NS-XXXX
Page 11 of 16
75A-16
including the building code, or other applicable law: (c) To initiate proceedings
against the owner of any vacant building found to be substandard as defined in
this chapter or a nuisance under any other provision of this code: and (d) To
maintain surveillance over vacant buildings so that timely enforcement
proceedings are commenced in the event a building becomes substandard or a
nuisance.
(2) Authority. The Chief Building Official shall be responsible for administering a
program for identifying and monitoring the maintenance of all vacant buildings in
the city. The program shall be documented and regularly updated. The program
shall be available for public review.
(3) Fee Imposed. There is imposed upon every owner of a vacant building
monitored pursuant to this chapter, an annual vacant building monitoring fee in
an initial amount as the city council may establish by resolution, provided that the
fee shall not exceed the estimated reasonable cost of monitoring the vacant
building. The fee shall be payable as to any building, residential or non-
residential, which:
(a) Is boarded up by voluntary action of the owner or as the result of
enforcement activities by the city: or
(b) Is vacant for more than ninety (90) days for any reason.
4) Fee Waiver. The vacant buildina monitorina fee shall be waived upon a
showing by the owner that:
(a) The owner has obtained a building permit and is progressing diligently
to repair the premises for occupancy: or
(b) The building meets all applicable codes and is actively being offered
for sale, lease, or rent: or
(c) Imposition of the fee would impose a substantial economic hardship
on the owner or would hinder the rehabilitation of the building.
(5) Procedure. The vacant building monitoring fee shall be billed to the owner of
the property and mailed to the owner's address as set forth on the last equalized
assessment roll of the Orange County Assessor. Any owner billed may apply for
a waiver on the grounds set forth in subsection (4) of this section by submitting a
written statement of the grounds for the waiver to the Chief Building Official within
thirty (30) days after the billing is mailed to the owner. The owner shall provide
substantial evidence in support of the owner's statement of the grounds for the
waiver. The Chief Building Official shall review the written statement and all
related evidence and may contact the owner to discuss the application for waiver.
The Chief Building Official shall prepare a written decision which shall be mailed
to the owner and shall set forth the reasons for the decision.
(6) Appeal. Any owner aggrieved by the decision of the Chief Building Official
relating to an application for waiver may appeal the decision pursuant to section
8-1991 within fifteen (15) days of the mailing of the decision.
Ordinance No. NS-XXXX
Page 12 of 16
75A-17
(7) Non-payment of fees — special assessment. If the fee is not paid within sixty
(60) days after billing, or within sixty (60) days after the decision of the Chief
Building Official or appellate hearing officer, they may then be declared a special
assessment against that parcel as provided in California Government Code
section 28773.5. Such special assessment shall be collected at the same time
and in the same manner as ordinary city taxes are collected and shall be subject
to the same penalties and the same procedures and sale in case of delinquency
as provided for ordinary city taxes. The city shall retain the additional and
independent right to recover its costs by way of civil action against the owner and
person in possession or control, jointly or severally.
(8) Non-payment of fees — lien. Alternatively, if the fee is not paid within sixty
(60) days, the city manager may also cause a notice of lien to be recorded. The
notice shall, at a minimum, identify the record owner or possessor of the property,
set forth the last known address of the record owner or possessor, a description
of the real property subject to the lien, and the amount of the fee.
Sec. 8-1989. - Fees.
An annual non-refundable foreclosed, vacant and/or abandoned property registration
fee shall be paid to city at the time of registration, annually thereafter on January 1 st each year
and must be received no later than January 31 of the year due. If the foreclosed, vacant and/or
abandoned property is sold or transferred within a calendar year to a new bank/owner it will
need to register the foreclosed, vacant and/or abandoned property; the annual fee is not
transferrable. The fee for registering and re -registering a foreclosed, vacant and/or abandoned
property shall be set, from time to time, by resolution of the city council. The amount of the fee
shall not exceed the cost of administering the provisions of this chapter.
Additional hourly inspection fees as set forth in the city's miscellaneous fee resolution
may be levied on a property for staff time to inspect and enforce the provision of this Code when
a complaint has been filed on a property subject to this article.
Sec. 8-1990. - Enforcement.
A. Any violation of this division shall be treated as a strict liability offense; a violation
shall be deemed to have occurred regardless of a violator's intent.
B. Any person, partnership, association, corporation, fiduciary or other legal entity,
that owns, leases, occupies, controls or manages any abandoned property and
causes, permits, or maintains a violation of the chapter as to that property, shall
be guilty of a misdemeanor, and upon conviction thereof, may be punished as
provided in section 1-8.
C. This section is intended to be cumulative to, and not in place of, other rights and
remedies available to the city pursuant to this Code. As an alternative to the
violation and penalty specified in this section, the city attorney or enforcement
official may pursue any other right or remedy permitted by this Code, including,
Ordinance No. NS-XXXX
Page 13 of 16
75A-18
but not limited to, commencement of any civil action, or administrative action to
abate the condition of a property as a public nuisance pursuant to sections 1-21
through 1-21.9.
D. If an enforcement officer determines that the owner of abandoned property has
failed to maintain that property as obligated under California Civil Code Section
2929.3 and in accordance with this chapter, the city may impose a civil fine
against the owner of up to one thousand dollars ($1,000.00) per day, or an
amount set by the city's miscellaneous fee schedule as amended from time to
time, for each day that the owner fails to maintain the property commencing on
the day following the expiration of the period to remedy the violation as set forth
in the notice provided pursuant to subsection E.
E. If the city chooses to impose a fine pursuant to subsection D., it shall give notice
of the alleged violation to the owner. The notice shall include a description of the
conditions that gave rise to the violation, and notice of the city's intent to assess
a civil fine if action to correct the violation is not commenced within a period of
not less than fourteen (14) days and completed within a period of not less than
thirty (30) days. The notice shall be mailed to the name and address provided in
the deed or other instrument for mailing future tax statements, or, if none, to the
return address provided on the deed or other instrument.
F. The city shall provide a period of not less than thirty (30) days for the legal owner
to remedy the violation prior to imposing a civil fine. Notwithstanding the
foregoing, the city may provide less than thirty (30) days' notice to remedy a
condition before imposing a civil fine if the entity determines that a specific
condition of the property threatens public health or safety and provided that notice
of that determination and time for compliance is given.
G. The city shall provide an owner who wishes to contest any fines imposed
pursuant to subsection D. a hearing and opportunity to be heard in accordance
with the procedures for administrative citations contained in chapter 1.14.
H. Payment of the administrative and civil penalties shall not excuse the failure to
correct the violation nor shall it bar further enforcement action.
Sec. 8-1991. -Appeals.
Any person aggrieved by any of the requirements of this division may appeal a
determination made hereunder in the manner specified with respect to appeals under section
1-21.8 through 1-21.9 or chapter 3.
Sec. 8-1992. - Joint and several liability.
The duties/obligations specified in this division shall be joint and several among and
between all trustees and beneficiaries and their respective agents.
Ordinance No. NS-XXXX
Page 14 of 16
75A-19
Secs. 8-1993-8-1999. - Reserved.
SECTION 4. Severability. If any section, subsection, sentence, clause, phrase or
portion of this ordinance is for any reason held to be invalid or unconstitutional by the
decision of any court of competent jurisdiction, such decision shall not affect the validity of
the remaining portions of this ordinance. The city council of the City of Santa Ana hereby
declares that it would have adopted this ordinance and each section, subsection, sentence,
clause, phrase or portion thereof irrespective of the fact that any one or more sections,
subsections, sentences, clauses, phrases, or portions be declared invalid or
unconstitutional.
SECTION 5. Effective Date. This ordinance shall become effective thirty (30) days
after its adoption.
ADOPTED this day of
APPROVED AS TO FORM:
Sonia R. Carvalho, City Attorney
By: i�
Kyle ellesen
Assiglant City Attorney
AYES Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
2020.
Miguel A. Pulido
Mayor
Ordinance No. NS-XXXX
Page 15 of 16
75A-20
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify that the attached
Ordinance No. NS- to be the original ordinance adopted by the City Council of the
City of Santa Ana on, and that said ordinance was published in accordance with the Charter
of the City of Santa Ana.
Date:
Ordinance No. NS-XXXX
Page 16 of 16
Daisy Gomez
Clerk of the Council
City of Santa Ana
75A-21
Exhibit 3
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PROCHAMPS
August 13, 2020
Clerk of City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Property Registration Champions, LLC
dba PROCHAMPS
2725 Center Place
Melbourne, FL 32940
T: (321) 421-6639
F: (321) 396-7776
dmulberry@prochamps. c om
RE. Request for Scope of Work of a Third -Party Property Management Company to Operate
the City of Santa Ana's Vacant Registry
Dear Sir/Madam:
Property Registration Champions, LLC dba PROCHAMPS, a Florida limited liability company
with Federal Tax ID Number 30-1182582, is excited to announce its interest in managing the
project as requested for the proposed Vacant Registry. PROCHAMPS will meet or exceed all
Requirements including, but not limited to, those specified in the Request for Proposal.
PROCHAMPS partners with hundreds of communities across twelve (12) states (California,
Delaware, Florida, Georgia, Kansas, New Jersey, New York, Ohio, Pennsylvania, Illinois,
Wisconsin, and Washington). PROCHAMPS has partnered with communities since 2009 in
administering their mortgage in default, abandoned, vacant, and/or rental property registrations
pursuantto their duly enacted ordinances reducingthe blight often associated with these properties.
Through its services, PROCHAMPS provides municipalities, including many Long Island
communities, with significantly improved property registration compliance rates and incremental
revenue with no out-of-pocket cost. Since inception, PROCHAMPS has facilitated the registration
of nearly one million properties.
Utilizing over 11 years of property registration experience, PROCHAMPS has developed a
proprietary database with thousands of responsible party organizations and their respective
contacts. PROCHAMPS leverages this experience, its relationships, and database to communicate
the details and requirements of your community's ordinance, non-compliance, citizen
complaints, and notices of violations and quickly achieve high rates of compliance.
Property Registration Champions, LLC
2725 Center Place
Melbourne, FL 32940
75A-22
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PROCHAMPS
PROCHAMPS understands that Santa Ana has identified 100 vacant properties to
date. PROCHAMPS will bring its best in class platform, experts, and best practices to bear for the
City and quickly drive the same levels of high compliance for properties meeting the City's Vacant
registration requirements.
PROCHAMPS is willing to execute a standard addendum with City of Santa Ana, CA and will
comply with all terms and conditions, aside from those otherwise noted, set forth in the Request
to Operate the City of Santa Ana's Vacant Registry.
Sincerely,
David Mulberry
President/CIO
Property Registration Champions, LLC
2725 Center Place
Melbourne, FL 32940
75A-23
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PROCHAMPS
A TIMELINE FOR IMPLEMENTING VACANT REGISTRATION SERVICES
Stage 1 - Program Onboarding
Once the City commits to partnering with PROCHAMPS regarding the Vacant Property
Registration program, the onboarding process begins. This process consists of the following
activities:
• Load Ordinance and Review with the City
o The governing ordinance will be analyzed by the Legal Team and converted into
business rules, policies, and procedures.
o These business rules will be loaded into our Property Registration and Ordinances
platform (akaPROCHAMPS) to be used by the system and users through the
registration process.
o The business rules, policies, and procedures will be reviewed with the community to
ensure that PROCHAMPS is following the requirements of the City of Santa Ana City
Code pending approval.
• Collect and Load City Data
o Property Appraiser and Property Tax data will be collected from the county where
the City resides. This data will be normalized for loading into
the PROCHAMPS platform.
o Standard processes for collecting and normalizing this data will be created so that
monthly updates can be loaded into PROCHAMPS.
• Collect and Load City Registrations
o If the City has been collecting information directly or through another 3rd party, they
will be provided in electronic format to PROCHAMPS.
o These registrations will be analyzed to determine the best way to load them
into PROCHAMPS. The best loading mechanism could be automated and/or manual
and is usually a combination of both.
o Load City Registrations into PROCHAMPS.
• Configure Remittance
o Confirm the timing and appropriate contacts from the City for remittance.
o Review reports provided and ensure they meet expectations of the City.
o Configure PROCHAMPS to provide ongoing appropriate and timely remittance.
o PROCHAMPS will charge a fee per registration as set forth within Santa Ana's fee
schedule. PROCHAMPS' costs will be added into the fee not to exceed $100 per
registration.
Property Registration Champions, LLC
2725 Center Place
Melbourne, FL 32940
75A-24
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PROCHAMPS
Review and Assign Candidate Backlog
o PROCHAMPS will analyze all properties in the City. Properties will be identified that
are subject to a vacant registration based on information provided by the City.
o In accordance with the governing ordinance, these properties will be analyzed
by PROCHAMPS against other property data and business rules to determine if there
is an obligation to register. If it is determined there is an obligation, then the property
will become a candidate for registration.
o All candidate registrations will be reviewed by the Compliance Team to confirm the
registration obligation and assign the appropriate Responsible Parties ("RP")
Stage 2 - Program Maintenance
After the Vacant program onboarding process is complete, we move into the maintenance phase
of the program. The activities that make up this ongoing maintenance effort include:
• Ongoing Proactive Compliance Reviews
o In order to ensure high levels of compliance the IT team will analyze all newly recorded
vacancy activity for all properties not registered (aka Candidates).
The Compliance Team will proactively review these candidates and make assignments
to Responsible Parties as appropriate.
o The Compliance Team will proactively review all registrations that have reached their
renewal date and require renewal registration. This review will confirm, using the
public record, whether there is an ongoing obligation to register or whether the property
should have been deregistered prior to renewal.
o The Compliance Team will proactively review the deregistration of any property
to ensure the public record confirms that there is no ongoing obligation to register.
o When appropriate, Responsible Party -Initiated registrations will be proactively
reviewed by the Compliance team to ensure the appropriate start date of the
registration. This review prevents Responsible Parties from bypassing required
registration obligations.
• Non -Compliance Notifications and Collections
o The Support Team will ensure all Responsible Parties have accurate and current email
contacts stored in PROCHAMPS.
PROCHAMPS will send automated non-compliance email notifications to the
responsible parties of each non -compliant property within 30 days of receiving a notice
of vacancy from the City. These non -compliant notifications are repeated two (2) times
over a 45-day window or until the property is registered, whichever comes first.
An aggregated list of all non -compliant properties belonging to a specific Responsible
Party are sent to their contact monthly.
Property Registration Champions, LLC
2725 Center Place
Melbourne, FL 32940
75A-25
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PROCHAMPS
As requested by the City basis, the Support team will target specific
Responsible Parties that have high levels of non-compliance and discuss with the
Responsible Party to make sure they understand the non-compliance concern and
provide suggestions for ways to improve compliance.
Collaborative Registration Enforcement
o PROCHAMPS provides a detailed report of all non -compliant registrations that can be
considered for enforcement activities. This report can be printed or exported to Excel
or used online.
o The Government Support Team will work with the City to explore the most efficient
and effective enforcement mechanisms.
o Custom reports, automated formal notices of violation and other collaborative
enforcement capabilities can be provided.
Support
o The Support Team provides a high level of professional ongoing support via
email, phone and live chat to both Government staff and Responsible Parties. This
support covers the entire lifecycle of the registration process and all aspects of
the PROCHAMPS registration program.
o All support requests are tracked as tickets to ensure efficient resolution.
o Through PROCHAMPS, the City has complete visibility into the status and resolution
of all support tickets for their City.
• Training
o PROCHAMPS will work with the City to provide ongoing training for all designated
employees to understand the program and be proficient in the use of PROCHAMPS.
o Every other week, PROCHAMPS staff provides online training specifically targeted at
Government staff. This class can be attended as often and by as many employees
the City deems necessary.
o As requested, PROCHAMPS can conduct customized on -site or online trainings.
Remittance and other Reports
o A monthly remittance report will be prepared and delivered to the contact(s) designated
by the community. This reportwill detail all properties registered and, if necessary, any
refunds provided during the month. This report can also be generated at any time by
the City from the PROCHAMPS application.
o At any time, registrations can be printed or exported to Excel
from the PROCHAMPS application by the City. These registration reports can be
filtered many different characteristics like registration status, RP, date registered, etc.
o Up to five (5) custom fields of data can be provided by the City to further enhance these
reports. For example, council districts can be loaded in to PROCHAMPS and then can
be used to filter only registrations in certain council districts.
Property Registration Champions, LLC
2725 Center Place
Melbourne, FL 32940
75A-26
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PROCHAMPS
PROCHAMPS provides these reports in both atabular as well as a map view. The map
view can be helpful when analyzing where most of the registrations are within the
community.
Program Status Reviews
o At least twice a year, the Government Support Team will reach out to the City to ensure
expectations are being met, that our communication and reporting are effective, and
that we are collaborating as necessary.
o A report card may be provided for the City upon request to measure our performance
across key operational areas.
Property Registration Champions, LLC
2725 Center Place
Melbourne, FL 32940
75A-27