Canyon Lake Municipal Code Ch. 5.20 Foreclosed Residential Property Registration

(a) The purpose of this Chapter is to establish a registration program for foreclosed residential properties to provide contact information for lenders and others acquiring such property, encourage them to obtain local agents to deal with such property, and enforce maintained and security standards whether such property has been neglected during the foreclosure process or abandoned.

(b) This Chapter is not intended to and does not impose on foreclosed properties higher maintenance standards then required of other residential properties within the City.

(c) This Chapter is not intended to change the standards for property maintenance set out in Canyon Lake Municipal Code Chapter 11.20 but to establish a procedure to confirm compliance for defaulted and abandoned foreclosed properties.

(Ord. 118, passed 10-6-2010)

The following words and phrases are defined as follows when used in this Chapter.

(a) “Abandoned” means a vacant residential property where ownership has or will be transferred as a result of foreclosure and which displays evidence of abandonment.

(b) “Evidence of abandonment” means any condition that alone or combined with other conditions would lead a reasonable person to believe that the property has been abandoned and/or is not occupied by authorized persons. Such conditions include, but are not limited to overgrown and/or dead vegetation; unmaintained pools or spas; an accumulation of newspapers, circulars, flyers and/or mail; past due utility notices and/or disconnected utilities; an accumulation of trash, junk and/or debris; the absence of window coverings such as curtains, blinds and/or shutters; the absence of furnishings and/or personal items consistent with residential habitation, statements by neighbors, passersby, delivery agents, or government employees that the property is vacant and/or has been abandoned; unauthorized utility hookups; signs of camping or other unauthorized habitation.

(c) “Evidence of neglect” means any condition that alone or combined with other conditions would lead a reasonable person to see that the property is not maintained to the same standards as others in the vicinity. Such conditions include, but are not limited to overgrown or dead vegetation; weeds or unmowed lawns; dirt or trash accumulation, unmaintained pools or spas; broken windows.

(d) “Foreclosed property” means a residential property within the City where title has transferred as the result of a foreclosure sale, deed in lieu of foreclosure or similar arrangement. Foreclosed property includes but is not limited to vacant or abandoned property.

(e) “Local” shall mean located within the City of Canyon Lake or within 30 miles thereof.

(f) “Vacant” means a residential building/ structure that is not occupied by authorized persons, and includes abandoned property, including property which shows evidence of vacancy.

(Ord. 118, passed 10-6-2010)

The purpose of inspection and registration is to obtain identification and location of defaulted and abandoned foreclosed properties and their condition, contact information regarding the new owner, and to inform owners of the maintenance and security standards applicable to such property.

(a) Notice of Default. At the time of recording a notice of default for any real property within the City, any person or entity who or which holds a deed of trust secured on such real property shall perform or cause to be performed a physical inspection of the exterior of that property to determine if it is vacant or if it shows signs of neglect. If the property is vacant, it is deemed to be abandoned property or shows evidence of vacancy, it is, by this Chapter, deemed abandoned and subject to registration within 15 days thereafter as provided by Subsection (c) hereof, as well as other requirements of this Chapter.

(b) If the property is occupied but remains in default, it shall be inspected by the beneficiary/trustee, or his or her designee, monthly until: (i) the default is cured or (ii) it is found to be vacant and deemed abandoned; or (iii) it is foreclosed upon (whether or not vacant or abandoned) and registration and other requirements of this Chapter apply.

(c) Registration. As provided in Subsections (a) or (b) above, the new owner of the property or its agent must register the property under this Chapter and as set out in Subsection (b) below and thereafter register the property with the City as set out in this Chapter. If the new owner does not have a working office located within Riverside County, the new owner shall employ a local agent/property manager as set out in Subsection (g) below.

(d) Registration Information. The registration shall contain the following information: Address and APN for the foreclosed property; name and current contact information for the owner, including an emergency contact number; name and current contact information for the owner's local agent or local property manager, and an emergency local contact number; the date of acquisition of the property and the status of the property as of the inspection. No address may be a post office box. Contact information shall be updated within 15 calendar days of any change to keep it current. Registration shall be renewed annually.

(e) Registration Fee. At the time of initial registration of the property, and annually thereafter or until the property is sold to a third party, the owner shall pay a registration fee in an amount established by City Council resolution. The fee and registration shall be valid for the calendar year, or remaining portion of the calendar year, in which the registration was initially required without pro-ration. Subsequent registrations and fees are due January 1st of each year and must be received no later than January 31st of the year due. Late payments will be subject to a penalty determined in the fee resolution.

(f) Inspections. At the time of and subsequent to registration, but no less than monthly, the owner or its local agent shall perform ongoing inspections of the property to determine whether it meets the maintenance standards in this Chapter and the City Code as a whole or whether it has been neglected during the foreclosure process and/or abandoned.

(g) Appointment of Local Agent or Property Manager. An owner (including but not limited to a bank or other lender) which does not have a working office located within Riverside County shall appoint and hire a local agent or property manager to register, inspect, maintain and secure the property.

(h) Termination of Registration. At such time as the owner of the foreclosed property sells the property to a third party, the owner shall notify the City in writing of such sale in order to terminate the registration requirement. Such notice shall include current contact information for the purchaser.

(Ord. 118, passed 10-6-2010)

The property shall be posted with the name and 24-hour contact information for the owner or the owner's agent or property manager. Such posting shall be placed on an interior window with the text facing out or in a secure exterior area. The posting shall be at least 18 x 24 inches and legible from the street. It is a violation of this Chapter to fail to post the property or to maintain current information in the posting.

(Ord. 118, passed 10-6-2010)

Foreclosed properties shall be maintained to the same standards as apply to similar properties within the City in order to avoid creation of a public nuisance under Canyon Lake Municipal Code Section 11.20.010, i.e. they shall be kept free of weeds, dry brush, dead vegetation, trash, junk, debris, building materials, any accumulation of newspapers, circulars, flyers, notices, discarded personal items including but not limited to furniture, clothing, large and small appliances, or printed material. These requirements apply regardless of whether the property has been registered or inspected.

(a) The property shall be kept free of graffiti, tagging or similar markings by removal or painting over with an exterior grade paint that matches the color of the exterior of the structure.

(b) Visible front and side yards shall be watered as necessary (or as allowed); grass mowed and trimmed, plantings trimmed, dead plants, weeds and trimmings removed; without broken concrete or asphalt or the use of plastic sheeting, indoor-outdoor carpet or similar material in yards.

(c) All pool and spa areas shall be fenced and secured as required by law. Pools and spas shall be kept in working order so the water remains clear and free of pollutants and debris or shall be drained and kept dry and secured.

(d) Failure to maintain the exterior of the property includes but is not limited to allowing excessive foliage growth, failing to take action to prevent or remove trespassers or squatters.

(e) Adherence to this section does not relieve the property owner of any obligations set forth in any covenants, conditions and restrictions and/or homeowners' association rules and regulations which may apply to the property.

(Ord. 118, passed 10-6-2010)

Foreclosed properties shall be secured in a manner to prevent access by unauthorized persons including, but not limited to, the following: the closure and locking of windows, doors (walk-through, sliding and garage), gates and any other opening of such size that may allow a child to access the interior of the property and/or structure(s). In the case of broken windows, securing means the re-glazing or boarding of the window. These requirements apply regardless of whether the property has been inspected or registered. The City's representatives may require additional security measures if needed.

(Ord. 118, passed 10-6-2010)

(a) This Chapter may be enforced by any means legally available, including but not limited to administrative citations. Each requirement (inspection, registration, maintenance and security) may be treated as a separate violation. Failure to maintain the property is subject to fines of $1,000/day as provided in the City's administrative fine schedule. It shall constitute a new and separate offense for each and every day during any portion of which a violation of, or failure to comply with, any provision or requirement of this Chapter is committed, continued, or permitted by any person.

(b) Violation of Section 5.20.030 and 5.20.040 shall constitute a public nuisance which may be abated pursuant to the provisions of Canyon Lake Municipal Code Chapter 11.20.

(Ord. 118, passed 10-6-2010)

In order to levy the maximum $1,000/day fine provided by State law and the administrative fine schedule for failure to maintain or secure the property, the City shall provide in the following manner:

(a) Written notice of the violation of the provisions of this Chapter, a description of the conditions which constitute such violation, and notice of the City's intent to impose at fine of up to $1,000/day if the correction of the violation does not commence within 14 days and is not completed within 30 days from the date of the notice or the notice provides for a specific shorter time based upon the determination, as stated in the notice, that the specific property condition listed threatens public health and safety.

(b) Notice of the violation shall be served on the owner and agent or property manager. Notice to the owner shall be mailed to the address set out in the foreclosure deed or the return address on the deed or to any other address which the City knows to be the owner's address. Notice to the agent or property manager shall be served on the agent or property manager at the address posted on the property, on signage on the property, registered with the City, or otherwise known to the City. Failure to receive notice duly sent is not a defense.

(c) The notice shall contain provisions to request a hearing regarding the violation and to protest the fine; such provisions shall be those set out in Canyon Lake Municipal Code Chapter 11.20. The City shall take no further action as to the property upon receipt of such request for hearing until conduct of the hearing and/or other resolution of the matter.

(d) Any fine determined hereunder shall take into consideration timely and good faith efforts by the owner to remedy the violation.

(e) The provisions for registration, inspection and posting may be enforced by administrative citation or other means without compliance with the notice provisions hereof.

(Ord. 118, passed 10-6-2010)