Number
150164
Version
SUBSTITUTE 1
Reference
030680, 091517, 100862
Sponsor
ALD. BAUMAN
Title
Substitute resolution relating to fast-tracking of property tax collections for vacant or abandoned buildings.
Analysis
This resolution establishes a policy for fast-tracking property tax collections for vacant or abandoned residential properties that are registered in the City's vacant building registry or in the residential properties pending foreclosure registry.
Body
Whereas, Section 75.521(3)(a)2, Wis. Stats., allows the City of Milwaukee to commence in rem property tax foreclosure against a delinquent parcel when one year has elapsed from the date of the tax certificate for the parcel; and
Whereas, The City Treasurer's current policy is to wait 3 years to foreclose rather than the statutorily allowed one-year period; and
Whereas, During the 3-year period, the City Treasurer's current policy is to refer the delinquency to the Kohn Law firm for it to attempt personal, in personam, collection against the property owner under s. 74.53, Wis. Stats., and s. 304-48 of the Code of Ordinances; and
Whereas, Common Council Resolution Number 030680, adopted on September 23, 2003, directed the City Attorney to establish a protocol for fast-tracking tax-delinquent parcels; and
Whereas, In response to this directive, the City Attorney developed a "Community Improvement In Rem Protocol" form for use by departments and Common Council members regarding fast-tracking of in-rem property tax foreclosure under certain circumstances; and
Whereas, On April 13, 2010, the Common Council adopted Resolution Number 091517, which directed that the protocol form be modified to fast-track residential properties found to be vacant or abandoned; and
Whereas, On November 5, 2010, the Common Council adopted Resolution Number 100862, which directed that the protocol form be further modified to fast track residential properties found to be vacant or abandoned; and
Whereas, A City Attorney opinion issued on December 10, 2012, to the City Treasurer provided background information regarding Common Council Resolution Numbers 030680, 091517 and 100682, and provided a revised "Community Improvement In Rem Protocol" form for use by departments and Common Council members regarding fast-tracking of in-rem property tax foreclosure under certain circumstances, which specifically addressed vacant or abandoned residential parcels; and
Whereas, The Common Council desires to articulate public policy and rational reason to establish, by resolution, the category of vacant or abandoned residential parcels for which fast-tracking of an in rem property tax foreclosure may occur without the need to complete and submit a "Community Improvement In Rem Protocol" form; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Council, to protect human, safety and welfare, to lessen blight and blighting influence, to promote parcel and neighborhood stabilization, to prevent or minimize deterioration and nuisances, and to save resources, and also recognizing legislative findings in ss. 200-51.7-1 and 200-22.5-1 of the Code, declares the following category of parcels for fast-tracking of foreclosure proceedings without the need to submit a "Community Improvement In Rem Protocol" form: parcels improved with single-family or multi-family dwellings where the structures or, as applicable, the units are vacant or abandoned, and where the parcels are registered in the City's "vacant building registry" under s. 200-51.7 of the Code or under the City's "residential properties pending foreclosure registry" under s. 200-22.5 of the Code; and, be it
Further, Resolved, That in addition to the legislative findings in s. 200-51.7 and 200-22-5-1 of the Code, the Common Council also finds, based on City departmental experience, that these types of parcels often deteriorate quickly, suffer from deferred maintenance, become vandalized, and become blighting influences in their respective neighborhoods, such that if they are not quickly acquired and secured by the City, they are more likely to require demolition or substantial, expensive repairs, with the finding being supported by the 5-week redemption period, the policy underlying s. 846.102, Wis. Stats., and by other sources, including articles and materials readily available (e.g., "Fast-tracking foreclosures on vacant properties could result in substantial savings, say Cleveland Fed researchers" available at www.clevelandfed.org); and, be it
Further Resolved, That any City department head or designee, or any Common Council member may report to the City Attorney's Office by e-mail or other written communication a residential parcel that is both of the following:
1. Registered in the "vacant building" registry under s. 200-51.7 of the Code or in "residential properties pending foreclosure" registry under s. 200-22.5 of the Code.
2. Tax-delinquent and eligible for property tax foreclosure.
; and, be it
Further Resolved, That after receiving a report of this type, the City Attorney's Office shall make inquiry regarding in personam collection status relating to the reported parcel by or on behalf of City collection agents under s. 74.53, Wis. Stats. and s. 304-48 of the Code; and, be it
Further Resolved, That after ascertaining in personam collection status, the City Attorney's Office shall report to the initiating department head or Common Council member and to the City Treasurer:
1. Those parcels that have not been referred to the collection agent for in personam collection.
2. Those parcels that may be referred back to the City from the collection agent without jeopardizing payment, judgment or court status.
; and, be it
Further Resolved, That the City Treasurer shall take appropriate steps to cause the parcels reported to the Treasurer by the City Attorney's Office to be placed into property-tax foreclosure as soon as possible without the need for submission of a "Community Improvement In Rem Protocol" form; and, be it
Further Resolved, That this resolution shall not affect do-not-acquire holds or status placed on any parcel due to environmental hazards or concerns; and, be it
Further Resolved, That, except as provided herein, the "Community Improvement In Rem Protocol" form and process shall continue.
Requestor
Drafter
LRB158157-2
Jim Carroll
May 14, 2015