Wayne County Cuts Blight-Fighting Program

[cman710]

This is unfortunate, but not entirely surprising. On a side note, when I saw the Spaulding Courts buildings a few weeks ago, it did not seem like the buildings were being rehabbed yet. Perhaps the person cited in the article just obtained the buildings recently.

Wayne County cuts hamper blight battle

Program enforcing upkeep abandoned

Detroit --Budget cuts have forced Wayne County to eliminate a blight-fighting program that forces absentee owners to fix properties or risk losing them in court.
"That's the worst news I've heard ... in three months," said Jon Koller, a Corktown resident who is rehabbing two derelict buildings seized late last year by the Wayne County Nuisance Abatement Program. "It's a really incredible tool for communities to get a hold of a resource."

The program was lauded as the only one of its kind in the state to consistently sue owners for nuisance violations. It focused on Detroit, Hamtramck, Highland Park and Westland -- and officials at one point hoped it could be a statewide model. Instead, county officials announced its immediate end Wednesday to save $1.3 million.

"The program has been fighting blight in many neighborhoods for more than 10 years and has been able to make a positive difference," according to a written statement from Eric Sabree, the program's supervisor. "Unfortunately, [[it) is not immune to the severe budget issues facing all of Wayne County."

The program featured a hotline for neighbors to complain about vacant homes or dilapidated properties. If owners didn't fix the property, lawyers would sue to declare it a nuisance and assume ownership.

The county then sold properties to those who signed pledges to repair them.
In the past 12 months, county lawyers filed more than 800 suits through the program.

Detroit launched a similar effort more than five years ago, but it doesn't sue to seize buildings. The Department of Administrative Hearings, known as the blight court, issues thousands of fines a year for code violations. But it costs about $2 million annually to operate, brings in about $900,000 and is owed about $41 million in fines.

Koller's nonprofit, Friends of Spaulding Court, bought two buildings in the complex on Rosa Parks near Interstate 75 for $1,000. The run-down buildings, which contain 20 townhouses, had attracted squatters, said Tim McKay, a Corktown resident who was formerly the director of Greater Corktown Development Corp.

"This is really disappointing," McKay said. "It was very effective."
Commissioner Ilona Varga, D-Lincoln Park, said she is researching a way to fund the program based on assessing fines to the owners of blighted properties.
"I am just sick about having to not continue it," Varga said. "The program must continue."

From The Detroit News: http://www.detnews.com/article/20100...#ixzz0mbg1kpXG

[mjs]

Very very sad. It was an excellent program. I worked this thing when we were initiating about 40 cases a week. Most fulfilling job I ever had. We forced about 1/3 of them to be fixed and occupied, about 1/3 to be sold to someone that would, and we confiscated about 1/3 of them to be sold. The confiscated 1/3 was probably the most important considering either no one showed-up or a bank showed up claiming they didn't have to fix it because they hadn't foreclosed on it despite being 5 to 10 years behind on the payments. Freed up alot of very bad titles, got properties back on the tax rosters, and made work harder for the drug dealers.

The County Exec initially refused to do it claiming it was both infeasible and unconstitutional, so the Prosecutor's Office initiated it. When it became successful and bragged about, all hell broke lose as the County Exec wanted to take it over. Now they got it, and we see what they have done with it. Very very sad. Should go back to the Prosecutor's forfeiture division on the idea that its really proactive drug confiscation.

The seperate Blight Court is a decent alternative, "but it costs about $2 million annually to operate, brings in about $900,000 and is owed about $41 million in fines. " Shows how useless fines without a forfeiture threat always turns out to be. I can guarantee a very large portion of the unpaid fines are on profitable slum rentals.

[Gsgeorge]

Saw crews working at Spaulding Courts yesterday. Cleaning it out, it seemed, with a dumpster nearby.

[Hamtragedy]

The seperate Blight Court is a decent alternative, "but it costs about $2 million annually to operate, brings in about $900,000 and is owed about $41 million in fines. " Shows how useless fines without a forfeiture threat always turns out to be. I can guarantee a very large portion of the unpaid fines are on profitable slum rentals.

The Blight Court sent countless "violations" to property owners who did not even own the property in question, and put the onus on the defendant to prove that they did not own said property. A friend received at least ten of these with addresses that were not his, and fines currently total around 10K. All of the fines are for failure to register a rental, failure to inspect, and failure to comply.

You might ask why didn't he just show up to court? Why should he? The city was allowed to run amok with this Kangaroo court, why should he take time off to defend himself for bullshit fines on properties he doesn't and never owned?

Several good landlords got fines for the exact same things. Some of them are prominent and news-makers for the good they do in the community. An annual fee of 500 to inspect and register rentals would be okay if you are charging [[and receiving) 1000 a month in rent. But most people can't afford $600 a month and the 500 would be passed on to a tenant already having problems, especially with a garbage bill of 300 [[ now 200 or 150), and the landlord already running a tight margin with a 3000 annual tax bill.

So I'm saying that there are lots of good landlords who maintain their properties and keep them tip-top who still owe thousands in fines because they knew the Blight Court was a runaway train on a money grab.

[canuck]

I just hope the owners who managed to hang on to their houses wont eventually have them expropriated according to the new plan. That would be another insult to bear.

[mjs]

The Blight Court sent countless "violations" to property owners who did not even own the property in question, and put the onus on the defendant to prove that they did not own said property. A friend received at least ten of these with addresses that were not his, and fines currently total around 10K. All of the fines are for failure to register a rental, failure to inspect, and failure to comply.

You might ask why didn't he just show up to court? Why should he? The city was allowed to run amok with this Kangaroo court, why should he take time off to defend himself for bullshit fines on properties he doesn't and never owned?

If code enforcement were allowed to move to sell the properties to pay the fines, he still wouldn't have to do anything and still wouldn't suffer any consequences. So, a house he doesn't own got confiscated. Its not a mortgage where they can take the house and then ask for more money. Michigan law says that to confiscate, they must do their best to serve anyone that recorded some form of property interest, post notice in the paper, and post notice on the house. If the government fails to do this, their win gets set-aside.

Sounds like something shady was going on with these properties like people who don't own the houses renting them for cash under his good name. It would explain why they are avoiding a paper trail by refusing inspection. The government needs people to not show up so titles can be cleared so properties can be sellable once again. Detroit has far too many unowned properties where things happen like a guy dies with no heirs or a bank got dubbed into buying a $100,000 mortgage on a $5000 property mortgaged by a dead guy. As you have explained, it would be insane to take responsibility for a property you don't own, so as long as the property doesn't have an owner, no one is ever going to take responsibility for it.

Several good landlords got fines for the exact same things. Some of them are prominent and news-makers for the good they do in the community. An annual fee of 500 to inspect and register rentals would be okay if you are charging [[and receiving) 1000 a month in rent. But most people can't afford $600 a month and the 500 would be passed on to a tenant already having problems, especially with a garbage bill of 300 [[ now 200 or 150), and the landlord already running a tight margin with a 3000 annual tax bill.

So I'm saying that there are lots of good landlords who maintain their properties and keep them tip-top who still owe thousands in fines because they knew the Blight Court was a runaway train on a money grab.

If you feel the $500 inspection fee is too high, talk to your City Councilman. If its $500, its higher than several surrounding communities, but like you said, so is trash and taxes and everything else. They'll tell you that the revenue needs to be replaced somehow. Selling unclaimed property is a good start. Besides, using forfeiture to collect even 50% of the fines rather than the 5% they get now, would allow them to lower fines by 90% and still get the same revenue.

One of my first points was that we would be better off confiscating properties that endanger entire communities because they are open to trespass rather than fining those that may endanger a few tenants due to code violations, but our politicians decided that was too much to ask of a government.

[DetroitDad]

...One of my first points was that we would be better off confiscating properties that endanger entire communities because they are open to trespass rather than fining those that may endanger a few tenants due to code violations, but our politicians decided that was too much to ask of a government.

That is a great idea! What can we do to move that idea forward!?

[mjs]

Contact your County Commissioner or contact them all on keeping the Wayne County Nuisance Abatement Program. You may also want to contact Ficano, he fought tooth and nail for the County Commissioners to take it from the Prosecutor's Office and give it to him before Worthy allowed him to have it in the hopes of improving the relationship between the two branches.

http://www.co.wayne.mi.us/mygovt/comm/Default.aspx


When I was there, if the owner showed the dwelling was occupied or solidly secured [[we're not talking a sheet of plywood with four nails), the attorney's adjourned the case so the sherriff's could verify and then if it was reverified six months later, we allowed the case to be dismissed. Its not intended for code enforcement. Its entire purpose was to occupy or secure unoccupied buildings open to trespass before the drug dealers and rapists laid claim to them. It was originally so closely tied to the Prosecutor's Drug Forfeiture Division that they shared staff and jointly decided which area was next for reclamation.

Affected neighbors were estatic when we came through. Its why I loved it. The program makes a real difference so we should be fighting for it.