TITLE
Consider a memorandum/resolution to establish a policy to waive liens for demolition of dangerous buildings or health and safety abatements.
SUMMARY
DATE: June 6, 2017
TO: Ronald L. Olson, City Manager
FROM: Leslie Hinkle, Executive Director of Community Development
SUBJECT: Establishing a policy to waive liens for demolition of dangerous buildings or health and safety abatements
BACKGROUND AND FINDINGS:
State law and city ordinances allow the city to demolish dangerous buildings and abate health and safety nuisances when particular circumstances are present. When completed, the city places a lien on the real property where the violation occurred. The city pays the costs of these activities with budgeted funds, and in the past has used Community Development Block Grant (CDBG) funds as well. Liens can be difficult to collect, particularly the larger demolition liens, and they remain on the property until someone pays.
The Bell County Tax Appraisal District forecloses on delinquent taxes and sells properties by way of a Sheriff’s sale. If the minimum bid required by law is not received during the sale, the property is struck off the tax roll, rendering the property tax exempt. The properties are considered “in trust.” Delinquent taxes are not collected, the property is exempt from current taxes, the city does not collect its liens, and the city will continue to incur costs for maintenance of the property and cannot recover those costs. Often properties will not sell because the city’s liens exceed the minimum bid, and sometimes they exceed the value of the property.
The Bell County Appraisal District will conduct subsequent sales when a property does not sell at the initial Sheriff’s sale. The properties currently in trust will not be considered because of the city’s liens. Staff proposes that the liens on those properties be waived. The public purpose of waiving the liens is to return these properties to being taxable as well as reducing the ...
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