CITY OF MELBOURNE, FLORIDA MINUTES – REGULAR MEETING BEFORE CITY COUNCIL JANUARY 27, 2009
failed to comply with maintenance and security requirements of property, which is many times abandoned, prosecution would be quicker.
Attorney Gougelman provided an overview and noted that the key issue for mortgage companies with regard to similar ordinances around the country relates to a registration fee. He noted that he believes the registration could be handled on-line. The ordinance prohibits the City from charging a registration fee. As a side note, he reported that Minneapolis has gone beyond all bounds by charging a $6,000 registration fee.
Mr. LaRusso stated that he doesn’t want to charge banks unnecessary registration fees. The ordinance was proposed to address blight and as a tool for Code Enforcement personnel to handle properties that are blight, in disrepair and in foreclosure. The notice provision should cut down on the amount of time it takes for compliance. He concluded by pointing out that millions have gone towards bailing out banking corporations and he would like accountability.
Mrs. Corby asked at what point during the foreclosure process Code Enforcement liens become the responsibility of the bank as opposed to the person being foreclosed on. Attorney Gougelman said that legal title does not move from the property owner to the mortgagee until the end of the foreclosure process when the property is sold. Mrs. Corby said she would like the process set up so the bank would be responsible for paying the
liens. Attorney Gougelman explained that are posted after the bank takes title.
the liens don’t attach to He added that one
bank unless the liens the items his office
recommended to Council was an ordinance making Code Enforcement liens superior bank liens. Council debated the issue and decided that was not in the public interest.
Mrs. Tasker pointed out that’s probably why Minnesota requires a $6,000 registration fee. Although not to that extreme, it might be something the City should consider. Additionally, she said that there is a legal process in place to collect these monies. In the interim, this ordinance will assist Code Enforcement and the citizens.
Attorney Gougelman cautioned that if we required bonds, we would probably see home loans dry up in Melbourne.
Mr. Schluckebier commented that this ordinance follows Council’s previous direction and is innocuous to mortgage companies. He noted that staff would like the ability to return in six months to a year to determine if we are getting a benefit.
Moved by LaRusso/Nowlin for approval of Ordinance 2009-06. Motion carried. Mrs. Corby
RESOLUTION NO. 3040:
A resolution providing for adoption of rules of procedure in
accordance with Section 2-24, City Code. (Approved by Council - 1/13/09)
Regarding the roll call vote and the change approved by City Council at the January 13 meeting, Mrs. Corby recommended that rather than alternating the roll call each meeting (Districts One through Six and then Districts Six through One), the vote should rotate each
Page 14 of 17