HomeMy WebLinkAbout75A - PH - PROPERTY FEEREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
OCTOBER 3, 2017
TITLE:
PUBLIC HEARING - ADOPT AN ORDINANCE
FOR THE REGISTRATION OF ABANDONED
AND DEFAULTED RESIDENTIAL/COMMERCIAL
PROPERTY AND ADOPT A RESOLUTION TO
ADD THE $412.96 PARTIAL FEE FOR
SERVICES IN THE FISCAL YEAR 2017/18
MISCELLANEOUS FEE SCHEDULE
{STRATEGIC PLAN NO. 5,4) %
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on I� Reading
❑ Ordinance on 2n° Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Adopt an ordinance to require financial institutions to register abandoned, foreclosed or
defaulted mortgage residential and commercial property within the City of Santa Ana.
2. Adopt a resolution to include the partial fee in the amount of $412.96 plus the cost of the
Registration Services for Registration of Abandoned and defaulted Residential/Commercial
property in the fiscal year 2017/18 Miscellaneous Fee schedule for the Planning and Building
Agency.
The City's Code Enforcement Officers encounters properties that are abandoned and vacant.
During inspections of such properties, staff frequently encounters squatter usage and other types
of illegal activities. According to real estate data, the City of Santa Ana has as many as 600
properties that are in default or possible foreclosure.
Properties that become vacant and abandoned due to foreclosure are a detriment to people who
live in close proximity. Abandoned properties degrade neighborhood, diminish the City's overall
image, and have a negative impact on property values.
Staff is recommending a program to address these types of issues that has proven to be effective
in other jurisdictions. City staff has done research and reviewed similar ordinances implemented
in several cities to ensure the City of Santa Ana ordinance and program will render. maximum
effectiveness and a successful program. The proposed program will assist staff in gaining
compliance from lenders and bringing foreclosure properties in an acceptable condition of
maintenance. The program will also add value and create efficiency as the list of registered
75A-1
Registration of Residential/Commercial Property in Foreclosure
October 3, 2017
Page 2
properties will capture foreclosed or abandoned properties by creating a systematic list of
properties that may need Code Enforcement attention. The ordinance requires property owners
to register ownership of foreclosed properties. Using this information a database will be created
linking properties with owners and their contact information. Owners of foreclosed properties will
be assessed a fee to cover the cost of establishing and maintaining the database, continuous
review of list, and inspections of properties by Code Enforcement staff.
The City will solicit the services of a qualified company to expedite the registration program.
Foreclosure Registration entities have immediate real estate foreclosure data and finance/bank
information that expedite this type of program. Conducting abatement enforcement on financial
institutions has been a challenge for the Code Enforcement Division. A partnership with a
professional business that will receive a fee not to exceed $100 for each registration fee collected
will assist the City in establishing a successful program. Consultant fees may be subject to
adjustment pending Request for Qualification (RFQ) submissions (Exhibit 1).
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #5 — Community Health, Livability,
Engagement and Sustainability; Objective #4 (Support neighborhood vitality and livability).
FISCAL IMPACT
The ordinance provides that the City may impose a registration fee adopted by resolution. The
cost of the registration will be included in the City's Miscellaneous Fee Schedule and collected
annually. The funds received will be deposited in the Foreclosure Registration Program (Account
No. 01116002-53628). If approved, an RFQ shall be conducted to partner with an outside vendor
to manage the foreclosure registration program. Foreclosure registry business typically will
collect a fee for each registration fee collected. The City will receive $412.96 to recover costs that
are attributed to overhead, audit, code enforcement, legal, and public safety costs.
Candida Neal
Acting Executive Director
Planning and Building Agency
SV: rb SAFCA\10-03-17\PBA Foreclosure RFCA 10-3-17
APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance and Management Services Agency
Exhibits: 1. Request for Qualification
2. Calculation of Miscellaneous Fee -Foreclosure Registration Program
3. Ordinance
4. Fee Resolution
75A-2
Exhibit 1
REQUEST FOR QUALIFICATIONS (RFQ)
FOR
FORECLOSURE REGISTRATION
PROGRAM SERVICES
RFQ # 17-079
Issued By:
14aWAST26Y.r ..►/.1
CODE ENFORCEMENT, M-19
20 CIVIC CENTER PLAZA
SANTA ANA, CALIFORNIA 92701
Release Date: October 4, 2017
Deadline for Submission:
October 18, 2017
By 5:00 PM
NO LATE PROPOSALS WILL BE ACCEPTED.
The City of Santa Ana reserves the right to reject any or all Proposals, to waive any
informality in any Proposal, and to select the Proposals that best meet the City's
needs.
RFQ: Foreclosure Registration Program Services Page 1 of 7
75A-3
NOTICE
By way of this Request for Qualifications (RFQ), the City of Santa Ana Code Enforcement
Division ("City") intends to pre -qualify a limited number of third party property management
firms to provide professional services for the Registration and Maintenance of Abandoned and
Defaulted Mortgage Property ("Foreclosure Registration Program") within the City of Santa
Ana. Work under this RFQ is outlined in the Section VI - Scope of Work.
The City is committed to non-discrimination and equal opportunity. No person will be
discriminated against on the grounds of race, color, sex, religion, national origin, ancestry,
age, marital status, physical or mental disability, or sexual orientation.
PURPOSE
The purpose of this Request for Qualification Proposals ("RFQ) is to solicit competitive
proposals from qualified firms to provide third party property management to operate the
City of Santa Ana's Foreclosure Registration Program.
II. RULES FOR PROPOSALS
The signer of the RFQ must declare in writing that the only person, persons, company or
parties interested in the proposal as principals are named therein; that the proposal is
made without collusion with any other person, persons, company or parties submitting a
proposal; that it is in all respects fair and in good faith without collusion or fraud; and, that
the signer of the proposal has full authority to bind the principal proposer.
III. SCOPE OF SERVICES
The City is soliciting a Statement of Qualifications ("RFQ") from interested firms with the
intent of creating a list of pre -qualified respondents. Respondent(s) will be pre -qualified
based on the process set forth in the "Selection Process and Award" (Section VIII) of this
RFQ. The City intends to have several firms qualified for these services. Respondents will
be selected based upon their competency, experience and availability to conduct the work
in a timely manner. Services include the following:
1. Respondent shall follow the requirements of the City of Santa Ana
enacting legislation for foreclosed property registration.
2. Respondent will work to develop a website link with the City and meet all of
the City's security and anti-viral requirements.
3. Respondent agrees to provide a website for the registration of each
foreclosed property in order to enable compliance with City legislation.
4. Respondent will proactively contact those that file a public notice of default,
foreclosure action, and/or take title to real property via foreclosure or any
other legal means.
RFQ: Foreclosure Registration Program Services Page 2 of 7
75A-4
5. Respondent will provide electronic registration for applicants of
foreclosed properties in violation of the applicable City ordinance.
6. Respondent will pay for all expenses related to registration of all
foreclosed properties, and all administrative costs and fees related thereto.
7. Respondent will investigate, report, or take corrective measures monthly to
update property status of all foreclosed property electronically registered and in
compliance with the relevant City ordinance.
8. Respondent will charge each applicant no more than the amount
prescribed by ordinance (per applicant) to register all mortgagees who
comply with the ordinance. A non-refundable annual registration fee (amount
to be determined) per property shall accompany the registration form or
website registration. All fees must be paid directly from the Mortgagee,
Servicer, Trustee or Owner. Third party registration fees are not allowed
without the consent of the City of Santa Ana or authorized designee. Failure
to register abandoned real property on an annual basis or any event of non-
compliance with enacting legislation shall result in a penalty fee amount
prescribed by the ordinance.
9. Respondent will remit payment of the registration fee to the City minus the
agreed upon consideration to Respondent for services rendered no
later than the tenth jjQtj2j day of each month.
10. Respondent will provide the City with monthly reports listing the
properties on the register, in addition to those that have been added or
subtracted since the previous report.
11. The prior month's report is due no later than the tenth (10th) day of the
following month and shall be delivered to the following address:
City of Santa Ana
Code Enforcement
20 Civic Center Plaza — M19
Santa Ana, CA 92701
12. All documents, records, applications, files, and other materials provided
in connection with the services rendered under this agreement shall be the
property of the City of Santa Ana and shall be provided to the City within
seven (7) business days, upon City's request and/or upon the termination of
written agreement.
13. The City shall have the right to audit the books, records, and accounts that
are related to the agreement.
RFQ: Foreclosure Registration Program Services Page 3 of 7
75A-5
Once a qualified respondents list is created, the City will utilize this list and enter into
registration service contracts. The list of prequalified proposers shall remain active for a
three (3) year period.
IV. SUBMITTAL REQUIREMENTS
All Proposals shall include the following information:
Letter of Introduction - Briefly describe the firm
e-mail, and phone number of the contact person
the respondent understands of the scope
approach to the scope of services. The letter
officer of the respondent's firm authorized
commitments made in the proposal.
The letter must be addressed to:
City of Santa Ana
Attn: Buyer, Eva Goods, RFP #
Purchasing Department, 4t" Floor
20 Civic Center Plaza, Room 429
Santa Ana, CA 92701
and the name, address,
as well as a summary of
of services and overall
should be signed by an
to bind the firm to all
2. Firm Profile
Provide a brief description of your firm's size and organization structure.
Relevant Experience and Qualifications
Provide a description of your firm's relevant experience and qualifications
of key individuals that may be involved in providing Foreclosure
Registration Operations and Management services your firm has
completed over the last three years. Specifically list any work conducted
with governmental entities. Provide resumes for all key personnel.
4. Rate Structure
Provide a sheet showing proposed rate per property registration of firm's
staff and equipment utilized for tracking foreclosed property registration.
References - Provide at least three (3) references (names and current
phone numbers) from recent work that may be contacted for verification
of the respondent's experience and qualifications.
6. Insurance Requirements - All required insurance must be current and up-
to-date in advance and renewed annually. A Respondent may not work
for the City of Santa Ana until the appropriate insurance has been
RFQ: Foreclosure Registration Program Services Page 4 of 7
75A-6
V.
VI.
provided and approved by the City Attorney. This shall be verified by
City Staff.
CONFLICT of INTEREST
Responder agrees that, for the term of this contract, no member, officer or employee of
the City of Santa Ana, or a public body within Orange County or member or delegate to
the Congress of the United States, during his/her tenure or for one year thereafter,
shall have any direct interest in contracts or any direct or material benefit arising
therefrom. Responder must provide a list of any potential conflicts of interest in working
for the City of Santa Ana. This must include, but is not limited to, a list of your firm's
clients who are the following: Private clients located or operating within the City of
Santa Ana limits. Responders must also identify any other clients that may pose a
potential conflict of interest, as well as a brief description of work you provide to these
clients. The list must include all potential conflicts of interest within the year prior to the
release of this RFQ as well as current and future commitments to other projects.
Principals and those performing work for the City of Santa Ana may be required to
submit a California Fair Political Practices Commission (FPPC) Form 700: Statement
of Economic Interests documenting potential financial conflicts of interest.
SUBMITTAL of QUALIFICATIONS
Your Submittal package shall include the following:
• One (1) original and three (3) printed copies of your proposal.
• The proposal shall be in Times New Roman, Arial or some similar easily
readable font. The size of the font shall not be smaller than 12.
• Proposals shall be submitted not later than the time and date indicated on the
cover page of this RFQ.
• All submittals shall be submitted in a sealed envelope or container and clearly
marked with the title of the RFQ on the outside of the parcel, "Request for
Qualifications — Foreclosure Registration Program — RFQ # 17-079"
• Proposals must be submitted ONLY to:
City of Santa Ana
Attn: Buyer, Eva Goods, RFP #
Purchasing Department, 4th Floor
20 Civic Center Plaza, Room 429
Santa Ana, CA 92701
• Faxed and/or emailed proposals shall not be accepted.
RFQ: Foreclosure Registration Program Services Page 5 of 7
75A-7
• The City of Santa Ana shall not be responsible for proposals delivered to a
person or location other than that specified hereinabove.
• Late submittals shall not be accepted or considered.
• All submittals, whether selected or rejected, shall become the property of the
City of Santa Ana and will not be returned.
• The City reserves the right to waive minor defects and/or irregularities in
proposals, and shall be the sole judge of the materiality of any such defect or
irregularity.
• Once opened, all responses become public record and will be available to the
public for review.
• Cost incurred by the respondent in the preparation of the response to this RFQ
is the sole responsibility of the respondent, and will not be reimbursed by the
City.
• All proposals shall remain firm for one hundred twenty (120) days following the
closing date of the receipt of proposals.
• Proposals must be received and date stamped by no later than October 18.
2017 at 5:00 p.m. The City of Santa Ana has no authority to accept proposals
submitted after the above date and time. Proposals received after the date and
time specified in this RFQ will be rejected by the City as non-responsive.
VII. SUBMITTAL INFORMATION AND DEADLINE
The following represents the tentative schedule for this project.
Tasks Date
Release of RFQ October 4, 2017
Deadline for Final Questions October 11, 2017
Proposal Submission Deadline October 18, 2017
Evaluation of Proposals TBD
Interviews — (If Needed) TBD
Selection and Notification of Proposer List TBD
VIII. SELECTION PROCESS AND AWARD
The City will review the responses to the RFQ and make a determination as to the most
responsive, best suited and most qualified to provide the service being requested.
Generally, the criteria will include, but not be limited to:
RFQ: Foreclosure Registration Program Services Page 6 of 7
75A-8
• The responsiveness to the specific needs of the City and an understanding of the
services to be provided.
• Experience, expertise and knowledge particular to the City's needs, in providing
services of a similar nature.
• The skills, education and experience of the respondent (s).
• Local businesses preference. For purposes of selection criteria, local is defined as
having a headquarters or branch office located in either the City of Santa Ana, or
within Orange County.
References.
• Service Cost/Rates.
Following the review, the City will determine the final number of Respondents to be
included on the list of pre -qualified respondents. The City will notify all respondents of
their pre -qualification status. The top three (3) firms will be awarded a three (3) year
contract.
IX. QUESTIONS
Prospective proposers shall direct all questions to:
Alvaro Nunez, Code Enforcement Manager
Tel. (714) 647-5871
Email: ANunez@santa-ana.org
X. METHOD OF PAYMENT
The Consultant shall submit a monthly invoice to the City for the services rendered in that
month. The invoice shall include a summary as well as a detailed breakdown of the
properties and registration fees collected. Payment by City within 45 days of invoice.
XI. REGULATIONS
The selected consultant shall be expected to comply with all applicable federal, state, city
regulations, and contract provisions.
RFQ: Foreclosure Registration Program Services Page 7 of 7
75A-9
75A-10
0
City of Santa Ana
Miscellaneous Fee Calculation
Department Information
Department: Planning and Building Agency- Code Enforcement
Miscellaneous Fee Title: Foreclosure Registration Fee
Instructions for Calculating the Fee
1) Consider all Personnel Costs involved in this fee (i.e. salary, insurance, retirement, workers comp,
etc.)
2) Add all Miscellaneous Costs involved in the fee (i.e. supplies, rents, contracts), only allocate the
relevant portion of each cost related to the fee
3) Input the current/proposed fee that is charged
Fee (TBD & added atter negotiation process).'_
Fleet
quipment
Other (Specify) Overhead 12.98%
Independent Audit
J
$ 47.21
$ 2.00
S 49.21
Total Expenses $ 412.96
Current/Proposed Fee $
Full Cost Recovery (Partial Cost Recovery) $ (412.96)
Please exolain if not full cost recovery...
Independent Audit - $2 per property
C.E. Officer -4 inspections a year
Consultant fees -To be added based on negotiations
EXHIBIT 2
75A-11
Personnel Costs.
Salary Employee Costs
% of
Employment
Total Salary&
lob Title
Current Annual Salary Annual Benefit Cost
Dedicated to
Benefit Cost
Miscellaneous
Fee Activity
Hourly Employee Costs
Hours of
Employment
Total Wage&
Job Title
Hourly Rate Hourly Benefit Cost
Dedicated to
Benefit Cost
Miscellaneous
F At ivi
C.E. Officer
42.53 26.28
4.00
$ 275.24
C.E. Supervisor
50.08 30.93
0.50
$ 40.51
Senior Office Assistant
27.15 20.85
1.00
$ 48.00
_ Miscellaneous Costs
Office Supplies
$ -
Rent
$
Utilities
$ -
Fee (TBD & added atter negotiation process).'_
Fleet
quipment
Other (Specify) Overhead 12.98%
Independent Audit
J
$ 47.21
$ 2.00
S 49.21
Total Expenses $ 412.96
Current/Proposed Fee $
Full Cost Recovery (Partial Cost Recovery) $ (412.96)
Please exolain if not full cost recovery...
Independent Audit - $2 per property
C.E. Officer -4 inspections a year
Consultant fees -To be added based on negotiations
EXHIBIT 2
75A-11
75A-12
Exhibit 3
8.1.17 LS
ORDINANCE NO. NS-XXXX
AN ORDINANCE, ADDING DIVISION 3 TO ARTICLE 10, OF
CHAPTER 8 OF THE CITY OF SANTA ANA MUNICIPAL CODE OF
TO BE ENTITLED, 'REGISTRATION AND MAINTENANCE OF
ABANDONED AND DEFAULTED MORTGAGE PROPERTY";
PROVIDING FOR PURPOSE, INTENT AND APPLICABILITY OF
THE ORDINANCE REQUIRING THE REGISTRATION AND
MAINTENANCE OF CERTAIN REAL PROPERTY BY
MORTGAGEES; PROVIDING FOR PENALTIES AND
ENFORCEMENT, AS WELL AS THE REGULATION, LIMITATION
AND REDUCTION OF REGISTRABLE REAL PROPERTY WITHIN
THE CITY
THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS 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.
B. Vacant and abandoned residential and commercial properties are a significant
problem and can depreciate property values, reduce property tax revenue, attract
crime, degrade the quality of life within the community and foster an unsafe and
unhealthy environment for residents.
C. The foreclosing party or property owners are often out of state, and there is no local
contact for such a property, which makes it difficult to notice the proper party of the
violations of the municipal code, and to maintain the requisite level of maintenance
and security on such structures or lots.
D. The Council has a vested interest in protecting neighborhoods against decay
caused by registrable property and concludes that it is in the best interests of the
health, safety, and welfare of its citizens and residents to impose registration
requirements of registrable property located within the City to discourage registrable
property owners and mortgagees from allowing their properties to be abandoned,
neglected or left unsupervised.
E. The Council desires to amend the City's code in order to establish a property
registration process that will identify a contact person to address safety and
aesthetic concerns to minimize the negative impact and conditions that occur as a
result of vacancy, absentee ownership and the foreclosure process.
Ordinance No. NS-XXXX
Page 1
75A-13
F. The City Council finds that the implementation of the following changes and
additions will assist the City in protecting neighborhoods from the negative impact
and conditions that occur as a result of vacancy, absentee ownership and lack of
compliance with existing City regulations and laws.
Section 2. Pursuant to the California Environmental Quality Act ("CEQA") and the state
CEQA Guidelines, the adoption of this Ordinance is exempt from CEQA review pursuant to
California Code of Regulations section 15061(b)(3), which is applicable if it can be seen with
certainty that there is no possibility that the project may have a significant effect on the
environment. As a result, a Notice of Exemption will be filed upon the adoption of this ordinance.
Section 3. The City hereby amends the Santa Ana Municipal Code ("SAMC") by adding
Division 3 to Article 10 of Chapter 8, entitled "Registration and Maintenance of Abandoned and
Defaulted Mortgage Properties' to read as follows:
DIVISION 3. REGISTRATION AND MAINTENANCE OF ABANDONED AND DEFAULTED
MORTGAGE PROPERTIES
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 and vacant properties; to establish an abandoned property registration program and
to set forth guidelines for the maintenance of such properties.
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 is vacant or shows evidence of vacancy, and (1)
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) 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. (SAMC 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.
Ordinance No. NS-XXXX
Page 2
75A-14
"Administrative Penalty Payment Due Date" means the date that is the 10th day after the
issuance of an abatement order, a notice of violation issued pursuant to SAMC Section 1-
21.7(l).
"Agreement" means any written instrument that transfers or conveys title to residential or
commercial real 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.
"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.
"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, and 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, 31d 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.
"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 of Santa Ana 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
Ordinance No. NS-XXXX
Page 3
75A-15
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.
"Local" means within 40 driving miles of the subject building, structure or real property.
"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 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, residential or dwelling purposes, or portion thereof, including but not
limited to building or structures located on said real property, regardless of condition.
Ordinance No. NS-XXXX
Page 4
75A-16
"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
assessors 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.
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.
"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.
8-1984. Duty to record instrument for property transfer.
Within 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
residential 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
Ordinance No. NS-XXXX
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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.
8-1985. Registration.
A. Each beneficiary and trustee, who holds a deed of trust on a property located within
the City of Santa Ana, shall perform an inspection of the property that is security for
the 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.
B. If such inspection shows that the property is abandoned, the owner, beneficiary or
trustee shall, within 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 of this section.
D. The registration required pursuant to subsection B of this section 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 of this section 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 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 5 days of the transfer must
register the property and pay a registration fee in accordance with this Article. Any
Ordinance No. NS-XXXX
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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 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 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.
L. Mortgagees who have existing registerable property on the effective date of this
ordinance have 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.
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 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 abandoned or vacant property:
A. Any abandoned property shall be maintained in compliance with the requirements
of this chapter and Santa Ana Municipal 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. Abandoned 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. Abandoned property shall be maintained free of graffiti, tagging or similar marking
in accordance with Article IV of Chapter 10 of the SAMC. 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
Ordinance No. NS-XXXX
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75A-19
artificial turf/sod designed specifically for residential installation and standards listed
in the Santa Ana Municipal Code Santa Ana Municipal Code 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.
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
homeowners association rules and regulations which may apply to the property.
An enforcement official may allow exceptions to the maintenance standards set forth in this
section for abandoned 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.
8-1987. Security requirements.
A. Abandoned and vacant properties shall be secured so as not to be accessible to
unauthorized persons.
B. Securing of 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.
C. If the 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
Ordinance No. NS-XXXX
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75A-20
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.
8-1988. Additional authority.
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.
8-1989. Fees.
An annual non-refundable Foreclosed Vacant property registration fee shall be paid to City at the
time of registration, annually thereafter on January 15t each year and must be received no later
than January 31 of the year due. If the foreclosed and/or abandoned property is sold or
transferred within a calendar year to a new banklowner it will need to register the foreclosed
and/or abandoned property; the annual fee is not transferrable. The fee for registering and re-
registering a foreclosed 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.
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
Ordinance No. NS-XXXX
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75A-21
a misdemeanor, and upon conviction thereof, may be punished as provided in
SAMC 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, 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 SAMC 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) 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 of this section, 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 14 days and completed within a period of not less than 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 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 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 of this Code.
H. Payment of the administrative and civil penalties shall not excuse the failure to
correct the violation nor shall it bar further enforcement action.
Ordinance No. NS-XXXX
Page 10
75A-22
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 SAMC Section 1-21.8
through 1-21.9 or SAMC Chapter 3.
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.
Section 4. The charges and fees authorized by Section 8-1989 of this Code shall be set
forth in a fee schedule established by concurrent resolution. Such charges and fees shall be
incorporated into, and where appropriate, supersede the City's Uniform Schedule of
Miscellaneous Fees for Fiscal Year 2017-18.
Section 5. 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 Aha 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 6. The Clerk of the Council shall certify the adoption of this ordinance and shall
cause the same to be published as required by law.
ADOPTED this day of 2017.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM
Sonia R. Carvalho, City Attorney
By: k::iv G/
Lisa Storck
Assistant City Attorney
Ordinance No. NS-XXXX
75A-23 Page 11
AYES: Councilmembers:
NOES: Councilmembers:
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers:
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, 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:
Clerk of the Council
City of Santa Ana
75A-24
Ordinance No. NS-XXXX
Page 12
Exhibit A
LS 10.3.17
RESOLUTION NO. 2017 -XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA ESTABLISHING THE FORECLOSED VACANT
PROPERTY REGISTRATION FEE IN ACCORDANCE WITH
ARTICLE 3 OF DIVISION 3 OF CHAPTER 8 OF THE SANTA
ANA MUNICIPAL CODE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
Section 1. The City Council of the City of Santa Ana hereby finds, determines and
declares as follows:
A. On October 3, 2017, the City Council of the City of Santa Ana placed on
first reading and approved Ordinance No. NS- adding Division 3 to Article 3 to
Chapter 8 of the Santa Ana Municipal Code regarding the registration and maintenance
of abandoned and defaulted mortgage property.
B. Section 8-1989 of the Santa Ana Municipal Code authorizes an
administrative fee related to the registration, inspection and enforcement regarding such
abandoned and defaulted mortgage property that is to be established by resolution.
C. Based on analysis and evaluation of staff time, equipment, and materials,
this fee is recommended as set forth below.
D. This fee shall become effective concurrently with the effective date of
Ordinance No. NS- and shall be incorporated into the City's Uniform Schedule
of Miscellaneous Fees for Fiscal Year 2017-18, as updated annually.
Section 2. The City Council hereby establishes the annual administrative fee
relating to the registration, inspection and enforcement regarding such abandoned and
defaulted mortgage property. The fee will include both City staff costs and consultant
costs. City staff costs are.$4.12:96 per property. Consultant costs will be added into the
fee when a consultant is selected and contracted with to assist and manage the
program.
Section 3. Without further action of the City Council, the above -referenced fee
established by this Resolution shall be incorporated into the City's Uniform Schedule of
Miscellaneous Fees for Fiscal Year 2017-18 and updated annually.
i
Resolution No. 2017 -XXX
Page 1 of 2
75A-25
LS 10.3.17
Section 4. This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
ADOPTED this _ day of 2017.
Miguel A. Pulido
Mayor
APPROVED AS TO FORM:
Sonia R. Carvalho, CityAttorney
By: E�r�
Lisa Storck
Assistant City Attorney
AYES: Councilmembers
NOES: Councilmembers
ABSTAIN: Councilmembers
NOT PRESENT: Councilmembers
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No.
2017- to be the original resolution adopted by the City Council of the City of Santa
Ana on 2017.
Date:
Clerk of the Council
City of Santa Ana
75A-26
Resolution No. 2017 -XXX
Page 2 of 2