HomeMy WebLinkAboutIR 10081 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10081
To the Mayor and Members of the City Council December 12, 2017
ter$4 Page 1 of 3
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s SUBJECT: TAX FORECLOSED PROPERTY: ORDINANCE COMPLIANCE
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1675 AFTER SALES
The City Council has requested information about the extent to which tax-foreclosed property tends to
comply with City ordinances after the City has sold that property to new owners.
In reviewing 56 tax foreclosed properties sold in 2014 (pulling a sample far enough back to measure
results over time), vacant land accounted for the majority of the properties sold. Only a few properties had
code violations at the time of sale; however, over time, additional properties developed ordinance
violations. Attachment "A" provides a breakdown of specific data by type, Council District, etc.
Tall grass accounted for the majority of violations, followed by property maintenance and solid waste,
including dumping and neighbors illegally setting out bulk waste on vacant land. Once a violation was
identified and notice given to the owner, the majority corrected the violation within 30 days. Of the 56
sample properties, only six have active code violations now. Two are substandard historic structures. The
other four are recently identified property maintenance violations.
The sample data reflected that approximately 18% of the properties have again fallen behind on their
taxes. Ten of the properties with delinquent taxes have or have had code violations.
Historically, hazardous structures accounted for a larger portion of foreclosed property sales. This was
based on a City policy that left such properties "status quo" until the property was later sold and the new
owner then assumed all responsibility. This created fire, life and safety concerns, including attractive
nuisances (possible harm to children) and harboring transient occupancy. These buildings were also a
blight on the neighborhood and impacted livability, property values and community safety (crime
prevention through environmental design).
Code Compliance amended this policy several years ago and hazardous structures are idenitified and
removed from the Tarrant County Constable foreclosure lists until the structures are abated, usually by a
city contractor through a demolition order from the Building Standards Commission. Structures that
become hazardous while held in trust by the City are demolished with the approval of the other taxing
entities before the properties are sold to new owners.
Code Compliance only demolishes structures that are dangerous and/or collapse hazards. In substandard
cases alone, the structures are secured and monitored for illegal entry and changes in condition. When
sold, the new owner can elect to voluntarily demolish or rehabilitate. The sample data showed that 62% of
substandard structures were repaired by the new owner.
If you have any questions about code violations, please contact Brandon Bennett, Code Compliance
Director, at 817-392-6322. If you have questions about tax foreclosed properties, please contact Steve
Cooke, Property Management Director, at 817-392-5134.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10081
To the Mayor and Members of the City Council December 12, 2017
ter$4 Page 2 of 3
�i
s SUBJECT: TAX FORECLOSED PROPERTY: ORDINANCE COMPLIANCE
1q ern
1675 AFTER SALES
Attachment "A"
For analysis, this report includes 56 properties sold during 2014 from the City of Fort Worth's tax
foreclosed inventory. Below is a breakdown of the location of each property by Council District.
#of Council Council Council Council Council Council Council
Properties District 2 District 3 District 4 District 5 District 6 District 8 District 9
56 9(16%) 5(9%) 1(2%) 14(25%) 3(5%) 21(38%) 3 (5%)
The chart below shows the breakdown of vacant land versus properties with improvements (buildings). It
also shows how many properties had code violations at the time of sale and those that had code violations
idenitified after the property was sold.
#of Land& Properties with a Code Properties with a Code
Properties Land Only Improvements Violation at Time of Sale Violation After Sale
56 34(60%) 22(40%) 11(20%) 35(63%)
Some properties had multiple code violations. Below is the total number of code violations and a
breakdown by violation category that existed at the time of sale and after the sale. The two substandard
buildings that have been in violation since the time of sale are historic structures.
No 1 2 3 4 5 6 7 17
Violations Violation Violations Violations Violations Violations Violations Violations Violations
—18(32%) 12(21%) 5(9%) 7(13%) 5(9%) 5(9%) 1(2%) 2(4%) 1(2%)
Properties with a Code Total Code Violations Substandard Owner Owner Currently in
Violation at Time of Sale at Time of Sale Building Repaired Demolished Violation
11(20%) 13 13 (100%) 8(62%) 3 (23%) 2(15%) _
Properties with Code Total Code High Property Solid Substandard Health
Violation After Sale Violations After Sale Grass Maintenance Waste Zoning Building Hazard
35(63%) 105 40(38%) 36(34%) 23 (22%) 3 (3%) 2(2%) 1(1%)
For tax foreclosed properties that had code violations identified after the sale, below is a chart showing
how long it took the owners to abate the violations.
Violations After Abated Within Abated Within Abated Within Abated Over Currently in
Sale 30 Days 60 Days 90 Days 90 Days Violation
105 86(82%) 12(11%) 1(1%) 2(2%) 4(4%)
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10081
To the Mayor and Members of the City Council December 12, 2017
P�T�$$
ter$4 Page 3 of 3
�i
s SUBJECT: TAX FORECLOSED PROPERTY: ORDINANCE COMPLIANCE
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1675 AFTER SALES
High grass accounts for the majority of violations that occur after a property is sold. The chart below
shows the number of high grass violations abated by the owner versus a city contractor.
#of Properties Grass Violations Individual Violations Individual Violations #of Properties
with High Grass After Sale Mowed by Owner Mowed by Contractor Mowed by Contractor
19(34%) 40 22(55%) 18(45%) 11(20%)
A review of the properties for tax information was also conducted. Ten of the 56 properties owe delinquent
taxes as shown below. Eight properties are tax exempt and pay no property taxes. The tax exempt
properties account for 21% of the total code violations.
Violations at Violations at Tax
#of City Portion Delinquent Delinquent Delinquent Tax Exempt Exempt
Properties 2017 Taxes Taxes Properties Properties Properties Properties
56 $10,586.28 $9,359.65 10(18%) 14(12%) 8(14%) 25(21%)
Although city contractors have mowed 18 times since the tax forclosure sales, the City is still receiving
more in taxes than the cost to mow when considering these properties as a whole.
#of Properties Individual Violations Contractor Cost City Portion
Mowed by Contractor Mowed by Contractor ($65 Average) 2017 Taxes
11(20%) 18(45%) $1,170.00 $10,586.28
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS