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Code Enforcement/Property Maint. in building Dept?

Discussion in 'Property Maintenance' started by vegas paul, Apr 13, 2010.

  1. Coder

    Coder Silver Member

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    Simple as that. Same process here.
     
  2. fatboy

    fatboy Administrator

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    I've only had to force a teardown of a complete house once. Took quite a while, a couple years start to finish, but ended up with a real nice new duplex on the lot.
     
  3. mtlogcabin

    mtlogcabin Sawhorse

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    The biggest question for the elected officials is "Have you budgeted funds to follow this through to the end" You may be able to lien the property but the vacant lot value may never cover the cost incurred by the local government.
     
    Flexo and my250r11 like this.
  4. JCraver

    JCraver Sawhorse

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    Foreclose on the lien, so then the City owns it. Sell it for a penny so someone can build a new house on it. New house = tax revenue = all that money comes back in the end.
     
  5. my250r11

    my250r11 Sawhorse

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    We have to test any demo, if hot, abatement, clearance letters, then demo. State requires licences for ACM workers, haulers, inspectors, etc. Only a couple of landfills in the state that take ACM, some goes out of state to Arizona or Texas. If we demo a condemned structure we have to file for a State NESHAP, bid out abatement, and demo to contractors and put lien on property.
     
  6. mtlogcabin

    mtlogcabin Sawhorse

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    I think you missed my point. The local government has to have the cash upfront to pay for the demolition cost. They lien the property by placing the lien on the property taxes. That is usually a minimum 3 years of unpaid taxes before they can file for a tax deed. They can not sell government property for less than the appraised fair market value. As far as a pay back through taxes paid for their expense through taxes collected I suggest you look at you tax bill and see how much goes to the jurisdiction that incurred the expenses. My guess probably 10 to 15% of the total tax bill to the general fund. So a $2,000 per property tax would net the local government $600.00 per year it would be decades before the cost would be collected.
    10% of my tax bill goes to the general fund %5 to the state, 67% to the schools the remaining 18% is divided to various other agencies such as sheriff, fire, land fill, water district etc.

    If the demolished property is in a blighted area good luck on finding an investor to build a new home on it.
     
  7. JCraver

    JCraver Sawhorse

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    Things/laws/rules/prices are different all over, but that's not how it works here.

    Get the judgment to tear it down and hire a contractor. Normal house demo averages $6K. As soon as it's down you pay the contractor, and then send the landowner a bill for the amount. If they don't pay in 30 days, file the lien (and I don't know how you can lien a tax bill, but in IL the lien is against the real property itself). At the very same time the lien is filed, the City Atty files a foreclosure notice on that lien. Muni demo liens are "priority" liens in IL, so all other creditors are out. Process/litigate the foreclosure, then the City owns the lot. Sell it for as little as you can (80% of FMV here). At 80%: a normal residential infill lot in town is ~$6K, 80% is $4800. Sell it for $4800 and then you only have $1200 in it (6K demo - 4,8K sale). The $1200 the City is out is repaid at your $600 a year in 2 years, AND you've got a brand new house in town that'll be paying that $600/year for a long, long time. Maybe you don't sell it right away at $4800, but there's not many RE investors I know that wouldn't build a duplex on a sub-$5K lot in any part of most any town.
     
  8. Coder

    Coder Silver Member

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    Thanks for all the feedback. hi ho hi ho a land banking we will go. :)
     
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  9. mtlogcabin

    mtlogcabin Sawhorse

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    You have a far better system then what I dealt with in FL and here in MT
     
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  10. my250r11

    my250r11 Sawhorse

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    We never make anything back. Lucky to sale a 1/4 of market value. the hope is that someone will build but most of the areas we demo are not good neighborhoods. They are safer for the people and PD and us as well not having homeless and druggies in them.
     

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