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File #: 161221    Version:
Type: Resolution Status: Passed
File created: 12/13/2016 In control: COMMON COUNCIL
On agenda: Final action: 1/18/2017
Effective date:    
Title: Substitute resolution relating to the duties of the Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes.
Sponsors: ALD. WITKOWSKI
Indexes: JOINT COMMITTEE ON REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES
Attachments: 1. Communication from Atty. Maistelman, 2. Communication from AASEW.pdf
Date Ver.Action ByActionResultTallyAction DetailsMeeting DetailsVideo
1/26/20173 MAYOR SIGNED   Action details Meeting details Not available
1/18/20172 COMMON COUNCIL SUBSTITUTED

Minutes note: Ald. Bauman, Rainey, Hamilton, Lewis, Stamper, Zielinski, and Kovac moved to be added as co sponsors for this item. Ald. Witkowski moved to offer Proposed Sub (3) There were no objections. 14-0
Pass14:0 Action details Meeting details Video Video
1/9/20171 JUDICIARY & LEGISLATION COMMITTEE SUBSTITUTED

Minutes note: Appearing: Ald. Witkowski - Sponsor
Pass5:0 Action details Meeting details Video Video
1/9/20172 JUDICIARY & LEGISLATION COMMITTEE RECOMMENDED FOR ADOPTIONPass5:0 Action details Meeting details Not available
1/4/20170 JUDICIARY & LEGISLATION COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
1/4/20170 JUDICIARY & LEGISLATION COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
12/13/20160 COMMON COUNCIL ASSIGNED TO   Action details Meeting details Not available

Number

161221

Version

SUBSTITUTE 3

Reference

 

Sponsor

ALD. WITKOWSKI, MURPHY, JOHNSON, RAINEY, HAMILTON, STAMPER, LEWIS, KOVAC AND ZIELINSKI

Title

Substitute resolution relating to the duties of the Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes.

Analysis

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. 

Body

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 low-value properties, leaving the City few assets of value to attach for satisfaction of its claim, and

 

Whereas, Even if the person or persons who own and benefit from the foreclosed-upon LLC may have assets to attach for satisfaction of the City’s claim, the City may be unable to pursue these persons because their identities are shielded by the LLC; and

 

Whereas, An evaluation and recommendations for improving the City’s policies and practices for effectively addressing code-compliance deficiencies at LLC-owned properties will help the City protect neighborhoods from being blighted by inadequately maintained properties; and

 

Whereas, An evaluation and recommendations for improving the City’s policies and practices for collecting code-violation fines and property taxes owed on LLC-owned properties will enhance the City’s fiscal viability; now, therefore, be it

 

Resolved, By the Common Council of the City of Milwaukee, that the Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes is directed to evaluate and make recommendations for effectively addressing code-compliance deficiencies at properties owned by limited liability companies; and, be it

 

Further Resolved, That the Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes is directed to evaluate and make recommendations for improving the City’s collections of code-violation fines and property taxes owed on LLC-owned properties: and, be it

 

Further Resolved, That the Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes is directed to consult directly with the Office of City Attorney, the City Treasurer, the Municipal Court and the Department of Neighborhood Services as it formulates its recommendations; and, be it

 

Further Resolved, That the Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes is directed to gather data on which LLCs delay tax payments until properties owned must be redeemed from foreclosure, analyze how these delayed tax payments affect the City and make recommendations to address any problems caused; and, be it

 

Further Resolved, That all City departments are authorized and directed to cooperate with and assist the Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes in carrying out these duties; and, be it

 

Further Resolved, That the Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes may request assistance from non-City entities in carrying out these duties as it sees fit; and, be it 

 

 

Further Resolved, That the Special Joint Committee on Redevelopment of Abandoned and Foreclosed Homes shall report its findings and recommendations on these matters to the Common Council not later than June 30, 2017.

Requestor

 

Drafter

LRB 167248-3

Aaron Cadle

January 18, 2017