North Las Vegas postpones vote on foreclosure ordinance

During November's meeting, North Las Vegas City Council members dismissed the previous foreclosure ordinance proposal designed to address neighborhood blight to make four substantive changes with plans to reintroduce it in December. The original ordinance proposed required foreclosed properties to be registered with the city and maintained; the revised proposal is expected to widen the city's reach.

City Attorney Jeff Barr suggested four major changes be made: Eliminate the vacancy requirement; include properties subject to deed in lieu; make the one-time $200 lender registration fee annual; and not post contact information for the property manager on the vacant properties.

Barr said the city received feedback from residents concerned that posting contact information would be a welcome sign for vandals and squatters. The motion passed unanimously for all four alterations, and Barr said the new language would be introduced at the next council meeting on Dec. 5. City Councilwoman Anita Wood said she wanted to see the ordinance is reviewed, passed and implemented by the start of the new year because she's been waiting a long time for this.

Gregory Blackburn, the city's building official, said previously that the push for this ordinance came from residents who were concerned about the blight they see caused by vacant, neglected properties. He said they're concerned that the homes could negatively affect property values and "neighborhood aesthetic."

Wood said she has received complaints from residents about the blight.

"I can even tell you my neighborhood has had an issue with it, and I don't know of any neighborhood in North Las Vegas that hasn't been affected by it," she said. "I certainly have complaints from residents all the time."

Mayor Shari Buck said previously that she doesn't think the city faces a substantial blight problem but wants this ordinance to take pre-emptive action.

"Even if it's one resident that's concerned about a foreclosed home in our neighborhood, that is enough for us to do something about it," Buck said.

The goal of the ordinance is to streamline the process for the Code Enforcement Division officers to reach the right person at the banks and lenders' offices to address the issue, Wood said.

"This would make it so much better so now what would have taken us days to track someone down, we can get to them right away," Wood said. "It's very, very difficult for Code Enforcement when, due to economic struggle, there aren't really as many officers as we had."

Tracking down the right problem is usually the biggest hurdle, she said. "I have not heard of any instance when banks, once we find the right person, have had trouble complying," she said.

The city considered an ordinance since late 2009 but was reserved when council members saw lawsuits developing in response to different registry ordinances across the country, Wood said.

Blackburn said similar vacant property registration ordinances have been implemented in more than 550 jurisdictions across the country as a way to offset costs to local governments.

In 2012, the Code Enforcement Division has taken action on more than 1,700 new cases, and close to a quarter of the properties have been "hazardous abatements," which includes properties that were open, abandoned and/or had sitting water violations such as unkempt swimming pools.

He said it's difficult to quantify the exact cost that blighted, foreclosed and abandoned properties cost the city. He estimated that 50 percent of the city's Code Enforcement budget of $400,000 is used to address the complaints at vacant properties each year. Plus, other departments such as police and fire can rack up expenses at these properties.

Blackburn added that enforcement time depends on how long it takes the banks that own these properties to respond to notices.

Consequences for failing to register a property after the allotted days could lead to citations, collecting fees for the costs of the services, or other civil actions or even criminal prosecution, he said.

If the ordinance passes, and the $200 fee is not paid to the city within 30 days, a lien will be placed against the property for the fees associated with the complaint, he said.

Modifying the property record on the registry would cost another $50. Blackburn said the city reached a suggested fee of $200 after reviewing similar ordinances that ranged from $100 to $1,000 per property.

"Given that the city of Las Vegas and Clark County both have $200 as their fee and that it was in the lower range on a national average, this is the fee determined by staff to be proposed for City Council adoption," Blackburn said.

Banks and lenders will be required to maintain landscaping including regular watering, staining, mowing and keeping pools and spas in working order so the water remains clear and "free of pollutants and debris" or they can be drained and kept dry. The properties also need to be kept secure including doors, windows and gates locked.

Properties already in foreclosure or vacant will not be grandfathered in to old policies if the ordinance passes. Banks will have to register and maintain properties that were previously foreclosed on if the ordinance is adopted. Only if a foreclosed property has been sold would the bank not need to register a previously foreclosed property.

In the ordinance's previous language, the city will leave open the possibility of outsourcing the fee and registry process.

The next North Las Vegas City Council meeting is planned for 6 p.m., Dec. 5 at North Las Vegas City Hall, 2250 Las Vegas Blvd. North.

Contact Centennial and North Las Vegas View reporter Laura Phelps at lphelps@viewnews.com or 702-477-3839.