MuniReg - Blight Alert

Good Afternoon,

Please see below for recent developments and national best practices around vacant and abandoned properties.

Please feel free to share with colleagues or anyone you feel would find of interest.

To ensure future communications are received please add?[email protected] to your “safe senders” list.

**For those new to these alerts. These are released bi-monthly (maximum). Emerging issues affecting one community may affect yours and creative solutions developed elsewhere could easily help you.?

MuniReg seeks to understand a community's pain points in regard to "blight", and help to protect from and address the issue as needed.

This alert is for informational purposes only, to learn more about MuniReg’s solutions to assist local governments please contact?[email protected]?

Much Needed Nuisance Law Enhancement or Overreach?

One community has "lower(ed) the bar for (a property) becoming a chronic nuisance" and has allowed the "city more power to punish the property owner" (use of receiverships)

The law passed with one proponent stating “I don’t think this is overdoing anything,” and “It’s long overdue.”. The lone opponent stated "the way the law is written, city staff could theoretically try to take someone’s house away if they have cinder blocks and a sofa in their yard and get arrested at home for any reason". Additionally the opponent voiced concerns with "leaving the decision up to a judge". “They’re going to interpret the law, and it seems pretty clear,”?

For more information, please click here.??

Blight Penalties - What is the magic number?

The challenge regarding what is the appropriate amount of penalties is a difficult one. "Lower" penalties may not provide the necessary push for compliance. "Higher" penalties can result in unintended consequences such as lawsuits, accusations of overreach, or owners just walking away and leaving the municipality "holding the bag".

One recently enacted state legislation, drew strong debate.

For more information, please click here.

?Statewide Vacant Commercial Property Registry Draws Nearer

A-4750/S-3286 has been passed by the Assembly and the Senate and will now be considered for adoption or veto by Governor Phil Murphy.

It "would require the NJ Business Action Center (Department of State) to maintain a database of all vacant commercial real estate in the state that is available for purchase or lease by small businesses."

For more information, please click here.??

Will Banks Stop Maintenance in Oregon Communities?

In Oregon, are property maintenance delays inevitable? If banks/servicers take up recent guidance from Joseph T. McCormick, Esq., Associate Attorney at Wright, Finlay & Zak, it may be!!

During the uncertain times of (the referenced in the article) Jordan vs Nationstar case, Washington communities saw a major drop-off in property maintenance. Of course this did result in unprecedented collaboration between local government and the banking industry, and a positive outcome.

What is in store for Oregon communities in the immediate future?

Time will tell.

Either way, why not have MuniReg as your partner to help you navigate? MuniReg President Michael Halpern was part of the task force in in Washington and is ready to help Oregon communities.

To read the article, please click here.

??"Have You Ever Called Code Enforcement?"?

Local Matters Podcast hosted by Janice Allen Jackson recently featured Matthew Silver, Civica Law and 2nd Vice President California Association of Code Enforcement on the subject of "Have You Ever Called Code Enforcement?"?

In the short interview Matthew, provides an excellent overview of the role, responsibilities, challenges etc. of code enforcement, along with an excellent description of the various municipal registration programs and why they are a critical tool in the toolbox.

For more information, please click here.?

A Different "Zombie"

During the Great Recession "zombie foreclosures" typically referred to residential properties. Originally featured in the LA Times, a recent Governing piece discusses "Downtown’s ‘Zombies’" or the "Post-COVID Plague of Undead Office Buildings"

For more information, please click here.

*** Related free event

HUD’s Office of Policy Development and Research (PD&R) will host a virtual PD&R Quarterly Update on Office-to-Residential Conversions.

In the first panel, developers will discuss the nuts-and-bolts of how to convert office space into residential units, and the second panel will explore how policymakers can create tools to facilitate successful conversions in downtown markets.

For more information, please click here.

?CDBG Coalition Report

In April 2022, the CDBG Coalition ("31 national organizations which recognize the importance of the CDBG program in empowering and transforming people and places. The organizations represent elected officials, state and local government agencies, non-profit organizations, and advocates." released a report titled, "Improving Lives and Strengthening Communities"

This report has been added to our online "Reference Desk" To view the report, please click here.

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