ALD. WITKOWSKI, MURPHY, JOHNSON, RAINEY, HAMILTON, STAMPER, LEWIS, KOVAC AND ZIELINSKI
Substitute resolution relating to the duties of the Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes.
This resolution assigns to the Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes the task of evaluating and making recommendations for effectively addressing code-compliance deficiencies that can arise with properties owned by limited liability companies, and for improving the City’s policies and practices for collecting code-compliance fines and property taxes owed on properties owned by limited liability companies.
Whereas, It can be nearly impossible to identify the person or persons who own and benefit from a limited liability company (LLC) which owns a property in the city, and who are ultimately responsible for upkeep of the LLC-owned property and payment of property taxes owed: and
Whereas, A significant number of LLC-owned properties chronically fail to comply with code violation orders issued by the City, leaving properties in near-uninhabitable disrepair to blight Milwaukee neighborhoods; and
Whereas, LLCs that chronically fail to comply with orders to correct code violations incur substantial unpaid code violation and re-inspection fines, and often fail to pay property taxes owed; and
Whereas, Without being able to identify the person or persons who own and benefit from an LLC-owned property, the City has no responsible party to pursue for code violation remedy, and collections of fines and delinquent property taxes; and
Whereas, By the time the City forecloses on an LLC-owned property for delinquent property taxes, the property has often been so neglected and is in such disrepair it is essentially valueless; and
Whereas, The LLC often has no other assets other than the dilapidated property foreclosed upon, or similar l...Click here for full text