This chapter shall hereinafter be known and cited as the "Registration
of Defaulted Mortgage and Vacant Property" ordinance of the Town of
Penfield.
It is the purpose and intent of this chapter is to establish
a process to address the deterioration, crime, and decline in value
of Town of Penfield neighborhoods caused by property with defaulted
mortgages located within the Town, and to identify, regulate, limit
and reduce the number of these properties located within the Town.
It has been determined that owner-occupied structures are generally
better maintained when compared to vacant structures, even with a
diligent off-site property owner. Vacant structures or structures
owned by individuals who are economically strained and unable to meet
their mortgage obligations are often not properly or diligently maintained,
which contribute to blight, declined property values, and have a negative
impact on social perception of the residential areas where they are
located. It is the Town's further intent to establish a registration
program as a mechanism to help protect neighborhoods from becoming
blighted through the lack of adequate maintenance of properties that
are vacant/abandoned or are in default or defaulted.
The following words, terms, and phrases, when used in this chapter,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meaning.
DEFAULT
The mortgagor has not complied with the terms of the mortgage
on the property, or the promissory note, or other evidence of the
debt, referred to in the mortgage.
ENFORCEMENT OFFICER
Any law enforcement officer, building official, zoning inspector,
code compliance officer, fire inspector, building inspector, or other
person authorized by the Town of Penfield to enforce the applicable
code(s).
EVIDENCE OF VACANCY
Any condition that on its own, or combined with other conditions
present, would lead a reasonable person to believe that the property
is vacant. Such conditions may include, but are not limited to: overgrown
and/or dead vegetation; past due utility notices and/or disconnected
utilities; accumulation of trash, junk or debris; abandoned vehicles,
auto parts and/or materials; the absence of furnishings and/or personal
items consistent with habitation or occupancy; the presence of an
unsanitary, stagnant swimming pool; the accumulation of newspapers,
circulars, flyers and/or mail; statements by neighbors, passers-by,
delivery agents or government agents; and/or the presence of boards
over doors, windows or other openings in violation of applicable code.
FORECLOSURE or FORECLOSURE ACTION
The legal process by which a mortgagee, or other lien holder,
terminates or attempts to terminate a property owner's equitable
right of redemption to obtain legal and equitable title to the real
property pledged as security for a debt or the real property subject
to the lien. The legal process is not concluded until the property
obtained by the mortgagee, lien holder, or their designee, by certificate
of title, or any other means, is sold to a nonrelated bona fide purchaser
in an arm's length transaction to satisfy the debt or lien.
MORTGAGEE
The creditor, including, but not limited to, trustees; mortgage
servicing companies; lenders in a mortgage agreement; any agent, servant,
or employee of the creditor; any successor in interest; or any assignee
of the creditor's rights, interests or obligations under the
mortgage agreement; or any other person or entity with the legal right
to foreclose on the real property, excluding governmental entities.
OWNER
Every person, entity, or mortgagee, who alone or severally
with others, has legal or equitable title to any real property as
defined by this chapter; has legal care, charge, or control of any
such property; is in possession or control of any such property; and/or
is vested with possession or control of any such property. The property
manager shall not be considered the owner.
PROPERTY MANAGER
Any party designated by the owner as responsible for inspecting,
maintaining and securing the property as required in this chapter.
REAL PROPERTY
Any residential or commercial land and/or buildings, leasehold
improvements and anything affixed to the land, or portion thereof
identified by a property parcel identification number, located in
the Town limits.
REGISTRABLE PROPERTY
A.
Any real property located in the Town, whether vacant or occupied,
that is encumbered by a mortgage in default, is subject to an ongoing
foreclosure action by the mortgagee or trustee, has been the subject
of a foreclosure action by a mortgagee or trustee and a judgement
has been entered, or has been the subject of a foreclosure sale where
the title was transferred to the beneficiary of a mortgage involved
in the foreclosure and any properties transferred under a deed in
lieu of foreclosure/sale. The designation of a "default/foreclosure"
property as "registrable" shall remain in place until such time as
the property is sold to a nonrelated bona fide purchaser in an arm's
length transaction or the foreclosure action has been dismissed and
any default on the mortgage has been cured; or
B.
Any property that is vacant for more than 30 days or any cancellation
of utility or service, whichever occurs first.
REGISTRY
A web-based electronic database of searchable real property
records, used by the Town to allow mortgagees and owners the opportunity
to register properties and pay applicable fees as required in this
chapter.
SEMIANNUAL REGISTRATION
Six months from the date of the first action that requires
registration, as determined by the Town, or its designee, and every
subsequent six months. The date of the initial registration may be
different than the date of the first action that required registration.
UTILITIES AND SERVICES
Any utility and/or service that is essential for a building
to be habitable and/or perform a service necessary to comply with
all Town codes. This includes, but is not limited to, electrical,
gas, water, sewer, lawn maintenance, pool maintenance, and snow removal.
VACANT
Any parcel of land in the Town that contains any building
or structure that is not lawfully occupied.
This chapter applies to defaulted and vacant property within
the Town of Penfield.
The Town of Penfield, or its designee, shall establish a registry
cataloging each registrable property within the Town, containing the
information required by this chapter.
Any mortgagee who commences a foreclosure proceeding against
a property located in the Town shall, in addition to all other requirements
of this chapter, provide cash, a cash bond, or a letter of credit
to the Town in a form acceptable to the Town, in the sum of $10,000,
to secure the continued maintenance of the property throughout the
foreclosure proceeding and reimburse the Town for any expenses incurred
in inspecting, securing, repairing and/or making said property safe
by any legal means, including, but not limited to, demolition. The
cash, cash bond, or letter of credit must be provided to the Town
within 45 days of a foreclosure proceeding being commenced. The $10,000
cash, cash bond, or letter of credit provided to the Town shall remain
valid for a period of one year from the date of said cash, cash bond,
or letter of credit being provided. A person, business, organization,
bank or lender who has commenced a foreclosure proceeding shall, thereafter,
annually provide the Town with cash, a cash bond, or a revised letter
of credit in an amount that will cause the total sum being held by
the Town to equal $10,000. Such renewal shall be submitted prior to
the expiration of the one-year period and shall continue annually
until the foreclosure proceeding is no longer pending and the structure
that is the subject of the foreclosure proceeding is being lawfully
occupied. At such time, all sums being held by Town under this section
will be released to the mortgagee that provided the cash, cash bond,
or letter of credit.
The provisions of this chapter are cumulative with and in addition
to other available remedies. Nothing contained in this chapter shall
prohibit the Town from collecting on fees, fines, and penalties in
any lawful manner; or enforcing its codes by any other means, including,
but not limited to, injunction, abatement, or as otherwise provided
by law or ordinance.
All registrable property is at risk of being a public nuisance
and if vacant or blighted can constitute a public nuisance, the abatement
of which pursuant to the police power is hereby declared to be necessary
for the health, welfare, and safety of the residents of the Town of
Penfield.
Whoever opposes, obstructs or resists any enforcement officer,
the Town Board, or any person authorized by the Town of Penfield in
the discharge of duties as provided in this chapter shall be punishable
as provided in the applicable code(s) or by a court of competent jurisdiction.
Any enforcement officer or any person authorized by the Town
to enforce the sections here within shall be immune from prosecution,
civil or criminal, for reasonable, good faith entry upon real property
while in the discharge of duties imposed by this chapter.
Unless otherwise provided for in this chapter, a violation of
this chapter is declared unlawful.
A. This chapter shall be administered and enforced by the Town Board
and/or the enforcement officer by taking any and all actions prescribed
for corrections of violations and for noncompliance of the provisions
of this chapter or any other applicable requirements of law. Such
actions shall include, but not be limited to, issuing appearance tickets
to designated person(s) to appear in a local criminal court in connection
with the alleged violation of this chapter or any order made thereunder
pursuant to the New York State Criminal Procedure Law.
B. Penalties for offenses. Any person who fails to comply with any provision
of this chapter or fails to comply with any notice, order or directive
of the Town of Penfield after expiration of the time for compliance
set forth in any such notice, order or directive of the Town shall,
upon conviction be punished by a fine of not more than $1,000 or by
imprisonment not to exceed 15 days, or both, for such violation. In
the event of any failure to so comply, each and every day that such
violation continues shall constitute a separate offense, and the penalties
prescribed above shall be applicable to each such separate offense.
C. Penalties for offenses under §
260-9, "Maintenance secured upon commencement of foreclosure proceeding." Any person, business, organization, bank or lender who fails to comply with §
260-9 shall, upon conviction, be punished by a fine of not more than $5,000 or by imprisonment not to exceed 15 days, or both, for such violation. In the event of any failure to so comply, each and every day that such violation continues shall constitute a separate offense, and the penalties prescribed above shall be applicable to each such separate offense.
Registration fees and penalties outlined in this chapter may
be modified by either resolution, administrative order, or an amendment
to this chapter, passed and adopted by the Town.