Cleaning Up This Town, One Foreclosure at a Time - NBC Southern California

Cleaning Up This Town, One Foreclosure at a Time

A registry would track foreclosed sites to keep them clean

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    Cleaning Up This Town, One Foreclosure at a Time
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    Several cities and towns will receive federal funding to rehabilitate and resell forclosures in Connecticut.

    Banks and other lenders would be hit with stiff  fines if they fail to keep foreclosed homes from becoming a blight, under an  ordinance to considered by Los Angeles City Council Friday.

    Under the proposed ordinance, the city would create a registry of  foreclosed properties, whose owners would be told about requirements for  keeping the property "clean and free from accumulation of debris, rubbish,  garbage, trash, overgrown vegetation and other similar material."

    City Attorney Carmen Trutanich stated in a letter that the "Foreclosure  Registry Program" would serve as "a mechanism to protect residential  neighborhoods from becoming blighted through the lack of adequate maintenance  and security of abandoned properties as a result of the foreclosure crisis."

    Banks would be charged an annual registration fee of $155 per property.  Failure to sign up will result in a fine of $250 a day.

    Banks that fail to maintain foreclosed homes would be charged "$1,000  per calendar day for each structure in violation of the city's regulations, not  to exceed $100,000 per calendar year.''

    According to Trutanich, that is the maximum civil penalty authorized by  the Civil Code for such cases.

    Banks would be given 30 days to correct the problem before being  penalized.

    Based on the budget approved by the council last week, the city is  depending on the fees and fines to generate about $5 million in the coming  fiscal year.

    The city's unions have been clamoring for the ordinance for months, in  the hopes that it would help raise revenues and reduce layoffs.

    A leader with the Coalition of Los Angeles Unions said that "banks  helped create the budget crisis with toxic lending practices,'' and they now  "need to help solve it.''