As the wave of ordinances enacted by municipalities requiring registration of foreclosures and of vacant properties continues, the City of Youngstown, Ohio has enacted an ordinance imposing exceptionally onerous burdens not only on owners, but on mortgage holders, servicers, and their agents. Here are some of the details:
- The ordinance applies to all residential, commercial, and industrial structures within the City of Youngstown.
- The definition of "Owner" includes a mortgagee or an agent that is directly or indirectly in control of a property. If a foreclosure is pending, the definition includes not only the lender, but the servicing company, and any agent acting for the mortgagee or servicing company. (Although not expressly stated, it seems like even a field agent who secures the property while a foreclosure is pending, could fall within this definition).
- A registration statement must be filed with the City Code Official within 30 days after the structure first becomes vacant, or within 30 days of receiving notice that a structure is vacant, whichever is later.
- A cash bond of $10,000 (No, you're not seeing double - it's actually $10,000) must be deposited to secure the continued maintenance of the property throughout its vacancy and to compensate the City for any expenses incurred from inspecting, securing, repairing, making the building safe or demolition. A portion of the bond in an amount not specified in the ordinance, shall be retained by the City as an administrative fee.
- The registration statement must be renewed annually, and an annual registration fee of $100 for each residential structure and $250 for each commercial or industrial structure is required.
- An amended registration statement must be filed within 20 days of any change in the registration information.
- A natural person 21 years of age or older, who maintains an office or resides in Mahoning County, must be designated as the authorized agent for receiving notices of code violations.
- Within 15 days of registration, the structure must be inspected and secured, and photographs must be taken.
- If the property is not registered, the "Owner" is deemed to consent to receive, by posting at the structure, any and all notices of code violations and all process in an administrative proceeding brought to enforce the code provisions.
- Failure to file a registration or to update a change in the registration information within the required time frames is subject to an administrative penalty of $50 per day, with a maximum of $1000. It is also a first-degree misdemeanor subject to a fine of up to $200 per day. Every day that a violation continues constitutes a separate and distinct offense.
- An agent for the purpose of managing, controlling or collecting rents or the premises is also liable for any violations.
- Any party who knowingly takes any action in any judicial or administrative proceeding that is intended to delay issuance or enforcement of any remedy for any violation of the Codes is liable for fines which accrue on or after the date of such action.
It is questionable whether many parts of the ordinance, or perhaps the entire ordinance, could survive a constitutional challenge. Nevertheless, the City has said that it intends to enforce the ordinance in its entirety.