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HomeMy WebLinkAbout08/21/2018 06O Leins and Assessments Priority; YMC Amendment 11.10.600BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 6.0. For Meeting of: August 21, 2018 ITEM TITLE: Ordinance to amend the Yakima Municipal Code 11.10.600 to add language concerning the priority of the City's liens and assessments on real property SUBMITTED BY: Sara Watkins, Senior Assistant City Attorney Joe Caruso, Code Administration Manager (509) 575-6257 SUMMARY EXPLANATION: Code Administration is requesting that YMC 11.10.600 be amended to reflect statutory language allowing liens for nuisance abatement to be of equal priority to state and municipal taxes up to $2,000.00. Please see accompanying memorandum for additional information. ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL: NA Public Safety STAFF RECOMMENDATION: Pass Ordinance BOARD/COMMITTEE RECOMMENDATION: The Public Safety Committee approved this matter to go to the full City Council at their July 3, 2018 meeting. ATTACHMENTS: Description Upload Date 0 Memo YMC11.10.600 W1/2018 0 Ordinance YMC11.10.600 &`1/2015 Type Coker Memo Odinance 2 ord redline 8/10/2018 Coker Memo MEMORANDUM TO: Honorable Mayor and Members of the Yakima City Council FROM: Sara Watkins, Senior Assistant City Attorney DATE: August 1, 2018 SUBJ: Proposed Amendment to YMC 11.10.600 Mayor and Councilmembers: The Washington State Legislature passed a statute that states specifically that special assessment liens against property that are levied due to nuisance abatement are "of equal rank with state, county, and municipal taxes" up to $2,000.00. This means that the lien takes priority over every other lien, including mortgages and liens filed earlier in time, and cannot be erased by the sale of the property at a foreclosure or tax sale (up to $2,000.00). These liens are currently levied against properties under the City's Neighborhood Conservation ordinance, YMC 11.10. This ordinance is the one that allows the codes division to secure houses that are vacant, take down unsafe structures, clean up lots full of weeds, and address other nuisance activities. Costs for removal of weeds or structures incurred by the City ultimately result in liens on the property. Most of the cases have fees and costs of approximately $2,000.00, although some are more. YMC 11.10.600 already addresses this, although it does not cite to the statute. It currently states as follows: We are asking the Council to amend the section to clarify, pursuant to the statute, that up to $2,000.00 of the recorded lien is of equal rank with state, county, and municipal taxes, and that the City may contract with the county treasurer to collect the special assessment in accordance with RCW 84.56.035 and RCW 35.21.955. This wording would replace the last sentence of the ordinance. Such a change would be helpful to clarify the City's ordinance and specifically reference the statute providing priority status for special assessments for nuisance abatement. The state statute is included with this memo for your convenience. The redlined version of the ordinance accompanies this memorandum. 1 3 RCW 35.21.955 4 Nuisance abatement—Special assessment—Notice requirements. (1) A city or town that exercises its authority under chapter 7.43 RCW, RCW3 H23, 35µ23H440, or 35vn, or other applicable law to abate a nuisance which threatens health or safety must provide prior notice to the property owner that abatement is pending and a special assessment may be levied on the property for the expense of abatement. Such special assessment authority is supplemental to any existing authority of a city or town to levy an assessment or obtain a lien for costs of abatement. The notice must be sent by regular mail. (2) A city or town that exercises its authority under chapter 7.411 RCW, RCW 15. u23 , 35u23µ4411, or n2µ411, or other applicable law to declare a nuisance, abate a nuisance, or impose fines or costs upon persons who create, continue, or maintain a nuisance may levy a special assessment on the land or premises where the nuisance is situated to reimburse the city or town for the expense of abatement. A city or town must, before levying a special assessment, notify the property owner and any identifiable mortgage holder that a special assessment will be levied on the property and provide the estimated amount of the special assessment. The notice must be sent by regular mail. (3) The special assessment authorized by this section constitutes a lien against the property, and is binding upon successors in title only from the date the lien is recorded in the county where the affected real property is located. Up to two thousand dollars of the recorded lien is of equal rank with state, county, and municipal taxes. (4) A city or town levying a special assessment under this section may contract with the county treasurer to collect the special assessment in accordance with RCW 34µ56,1r35. [ 8016 100 1.] 2 5 ORDINANCE NO. 2018 - AN ORDINANCE amending the City of Yakima Municipal Code Chapter 11.10.600 relating to assessments and liens on real property. WHEREAS, the Yakima Municipal Code provides for liens to be placed on properties which do not pay the costs incurred by the city to abate illegal conditions as defined under YMC 11.10; and WHEREAS, RCW 35.21.955 specifically provides that liens levied by cities for nuisance abatement are of equal rank with state, county and municipal taxes, up to $2,000.00; and WHEREAS, the City of Yakima provides the necessary notice and opportunity to be heard at a Community Review Board hearing prior to said liens being placed on a property; and WHEREAS, the benefits of having a lien be of equal priority to state, county and municipal taxes is that said lien is not erased at the time of a foreclosure sale, providing a better opportunity for the City to recoup its costs and fees associated with nuisance abatement; and WHEREAS, giving the public notice that the lien will be of equal rank with state, county and municipal taxes pursuant to state statute in the City's ordinance may further encourage residents to make full payment for costs and fees prior to a lien being placed on their property; and WHEREAS, the City Council of the City of Yakima finds that it is in the best interests of the City and its residents to amend Section 11.10.600 to specifically reference RCW 35.21.955 as a basis for the lien's priority; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. The City of Yakima Municipal Code Section 11.10.600 is hereby amended to read as follows: 11.10.600 Assessment and lien on the real property. The amount of the costs incurred by the city to abate illegal conditions pursuant to this chapter, including, but not limited to, the administrative fees established in this chapter, costs of title reports or guarantees, costs of abatement, or any other costs or fees listed in this chapter, shall be charged against the owner of the subject property and shall be specially assessed and shall constitute a lien against the subject property unless such amounts are timely paid after notice or invoice. The director of finance, or his/her designee, shall certify to the county treasurer any such unpaid costs to correct illegal conditions as a special assessment due and owing after they become due and prior to any lien being recorded with the county auditor. Pursuant to RCW 35.80.030, the county treasurer shall enter the amount of such special assessment upon the tax rolls against the property for the current year and the same shall become a part of the general taxes for that year to be collected at the same time and with interest at such rates and in such manner as provided for in RCW 84.56.020, as now or hereafter amended, for delinquent taxes, and when collected to be deposited to the credit of the general fund of the city. If the dwelling, 6 building, structure, or premises is removed by the city, the city shall, if possible, sell the materials of such dwelling, building, structure, or premises, and shall credit the proceeds of such sale against the cost of the removal and if there be any balance remaining, it shall be paid to the parties entitled thereto, as determined by the board, after deducting the city's costs and administrative fees incident thereto. The assessment shall constitute a lien against the property that shall be of equal rank with state, county and municipal taxes, as allowed by RCW 35.21.955 or any other applicable statute, law or regulation. Section 2. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 21s1 day of August, 2018. ATTEST: Kathy Coffey, Mayor Sonya Claar Tee, City Clerk Publication Date: Effective Date: 11.10.600 Assessment and lien on the real property. The amount of the costs incurred by the city to abate illegal conditions pursuant to this chapter, including, but not limited to, the administrative fees established in this chapter, costs of title reports or guarantees, costs of abatement, or any other costs or fees listed in this chapter, shall be charged against the owner of the subject property and shall be specially assessed and shall constitute a lien against the subject property unless such amounts are timely paid after notice or invoice. The director of finance, or his/her designee, shall certify to the county treasurer any such unpaid costs to correct illegal conditions as a special assessment due and owing after they become due and prior to any lien being recorded with the county auditor. Pursuant to RCW 35.80.030, the county treasurer shall enter the amount of such special assessment upon the tax rolls against the property for the current year and the same shall become a part of the general taxes for that year to be collected at the same time and with interest at such rates and in such manner as provided for in RCW 84.56.02, as now or hereafter amended, for delinquent taxes, and when collected to be deposited to the credit of the general fund of the city. If the dwelling, building, structure, or premises is removed by the city, the city shall, if possible, sell the materials of such dwelling, building, structure, or premises, and shall credit the proceeds of such sale against the cost of the removal and if there be any balance remaining, it shall be paid to the parties entitled thereto, as determined by the board, after deducting the city's costs and administrative fees incident thereto. The assessment shall constitute a lien against the property that shall be of equal rank with state, county and municipal taxes, as allowed by RCW 35.21.955 or any other applicable statute, law or regulation. 1 7