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Keep Your Composure over Foreclosures
<br />By Alexis Stangl
<br />hen it comes to dealing with
<br />foreclosed properties, you can
<br />never be sure what problems
<br />might come up.
<br />In some cases, there might
<br />be no problems. In other cases, particu-
<br />larly where the property is vacant, there
<br />might be so many problems it is dif-
<br />ficult to know where to start. There are
<br />a variety of things a city can do to help
<br />keep its composure when dealing with
<br />foreclosed properties.
<br />Securing vacant or unoccupied prop-
<br />erties. In some cases, a foreclosed house
<br />is abandoned, left vacant, and often not
<br />secured.This can give rise to problems
<br />like people "squatting" in the house,
<br />theft, vandalism, trespassing, etc.
<br />If the vacant or unoccupied building
<br />is hazardous because it is open to tres-
<br />pass and has not been secured, state law
<br />provides a process for a city to secure
<br />the building. The basic idea is that once
<br />the city council determines the build-
<br />ing is hazardous, the council adopts an
<br />order to secure the building.
<br />The owner is given an opportunity
<br />to comply with the order or request a
<br />hearing. Ultimately, if the owner does
<br />not secure the building and the city
<br />does, the city may charge its costs against
<br />the property as a special assessment.
<br />A city may also adopt an ordinance
<br />that would allow the city to secure
<br />the building in an emergency situa-
<br />tion when a vacant building presents
<br />an immediate danger to the health and
<br />safety of persons in the community.
<br />Utility issues. Unpaid utility bills
<br />and frozen water pipes are two com-
<br />mon utility-related issues that often
<br />come up when dealing with foreclosed
<br />properties.The city can (and should)
<br />treat unpaid utility bills like it does
<br />for the other properties in the city.
<br />This means that, depending on what
<br />ordinances are in place, the city could
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<br />potentially certify unpaid charges or
<br />shut off utility services.
<br />When there is a concern about
<br />freezing and bursting water pipes, espe-
<br />cially when the heat source has been
<br />shut off, it might make sense to shut
<br />off the water to the property regard-
<br />less of whether there are unpaid bills.
<br />The city may request notice from util-
<br />ity companies when a customer's gas
<br />or electric service is shut off. Once a
<br />utility company gets a written request
<br />from a city, the utility must, on Oct. 15
<br />and Nov. 1, make a report available
<br />that includes the address of properties
<br />currently disconnected along with the
<br />date of disconnection.
<br />Also, upon written request from a
<br />city, the utility must make daily reports
<br />available between Oct. 15 and April 15.
<br />While simply receiving this notice
<br />does not authorize the city to shut
<br />off water to the property, the city can
<br />adopt an ordinance that would allow
<br />the water to be shut off when the
<br />heat source is disconnected.
<br />Nuisances and hazardous buildings.
<br />Foreclosed properties, especially when
<br />they are vacant, can pose a wide range
<br />of livability issues for neighbors and
<br />the city in general. On the less severe
<br />end of the spectrum are things like tall
<br />grass or unshoveled snow. On the more
<br />severe end of the spectrum are things
<br />like hazardous buildings that are in
<br />danger of collapse.
<br />One way to tackle some of the less
<br />serious problems, like tall grass or piled
<br />up trash, is to adopt and enforce a nui-
<br />sance ordinance. (Nuisances are things
<br />that negatively impact a community's
<br />livability and include a wide range
<br />of things.)
<br />The city may already have a nui-
<br />sance ordinance in place that may
<br />address some of the current concerns.
<br />If not, the city could amend or adopt
<br />an ordinance that would address nui-
<br />sance concerns in the city. Pursuant to
<br />the city ordinance, the city may abate
<br />the nuisance and then recover the costs
<br />from the property owner by special
<br />assessments or other means.
<br />In more severe situations, the city
<br />might be able to use the statutory haz-
<br />ardous building process. A hazardous
<br />building is a building that constitutes a
<br />fire hazard or a hazard to public safety
<br />or health because of inadequate main-
<br />tenance, dilapidation, physical damage,
<br />unsanitary condition, or abandonment.
<br />The statutory process allows the city
<br />to order a property owner to repair or
<br />remove a hazardous condition or, in
<br />extreme cases, to tear down the build-
<br />ing. If the owner does not do the work,
<br />the city may do so and charge the costs
<br />against the property as a special assess-
<br />ment.The process provided by law is
<br />somewhat lengthy and detailed, and the
<br />law requires that the court oversee or
<br />be involved during most of the process.
<br />As such, it is very important to work
<br />with the city attorney.-
<br />More information. For more infor-
<br />mation, see the League of Minnesota
<br />Cities (LMC) information memos,
<br />Securing Payment of Utility Charges, Public
<br />Nuisances, and Dangerous Properties. To
<br />access the memos online, visit www
<br />Imc.org/page/1/resource-library jsp
<br />and type the name of the memo in
<br />the Keyword field.
<br />Alexis Stangl is a staff attorney with
<br />the League of Minnesota Cities. Phone:
<br />(651) 281.-1200.
<br />MARCH -APRIL 2 0 I I
<br />MINNESOTA C I T I E S
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