Code Attorney

I recognize that hoarding cases can be extremely time consuming to deal with and difficult for a property maintenance inspector because the person the inspector is dealing with is not rational about the state of the inside of the residence but I don’t think that’s a reason to do nothing.  A woman died in her home in Skokie, IL and the only way to get her was to cut a hole in the roof in this story reported today.  http://www.dailyherald.com/story/?id=395161 I had a case last week where the defendant pleaded guilty (he doesn’t even live in the home anymore but stays in an extended stay hotel due to the condition of the house) and the judge ordered him to remove the rubbish within 30 days.  I had a picture of a dumpster on the property with just a small amount of items in it to show he hadn’t made much progress.  The defendant said he couldn’t possibly do it within 30 days because of his physical condition.  After quizzing him, the judge determined that he had the financial resources to hire someone to do it for him.  Then the defendant argued that that wasn’t possible because that person wouldn’t know what to keep and what to throw away.  The judge told him that he could do that by being the manager of the rubbish removal and he could give directions to the hired help.   The defendant still protested but we’ll see next month if progress has been made.

Posted by Linda Pieczynski Category(ies): Code Enforcement, property maintenance Tag(s):

There is a very disturbing report, The Multifamily Housing Market  and Value-at-Risk Implications for Multifamily Lending, just released by DePaul University’s Institute for Housing Studies regarding the impact of recent property price declines and foreclosure on multi-family housing mortgages in Cook County, Illinois.  The study found that 42% of small rental buildings (2 to 6 units) are in danger of default because they are upside down on their mortgage debt.  The study said that if the trend is similar across the nation, it would be on par with the subprime mortgage meltdown.  In Cook County, the property value of small rental buildings have fallen to 46%.  Few lenders want to provide financing for these types of buildings leaving only Freddie Mac and Fannie Mae as lenders of last resort. For many owners, the income from their buildings are less than the operating expenses.  Here’s what’s of concern for local jurisdictions:

The point, in any case, is that a significant amount of disinvestment could occur in this environment, particularly in
those markets where the housing inventory has been vastly overbuilt. The usual argument is that negative equity
and declining rents will fuel foreclosures, which in turn will force down multifamily property prices, setting off a
downward spiral, particularly if credit is tight and lenders (including Fannie Mae and Freddie Mac) are unwilling
to make loans. A side implication, of course, is that, other things equal, as rents decline, the quantity of space
demanded should increase. But where there are requirements that multifamily units meet some minimum building
standards, investors will generally find operating these units financially infeasible when rents fall below this
operating cost threshold level. Thus, at or below this point the property will generally be vacated or abandoned.

You can download the entire report at http://ihs.depaul.edu/ihs/

Posted by Linda Pieczynski Category(ies): Foreclosure, property maintenance Tag(s):

The Vacant Property Toolkit from the Business and Professional People for the Public Interest is finally ready and posted on its website at http://www.bpichicago.org/VacantPropertyResources.php  I’ve written about this organization’s work in the past to address this very important issue and the Toolkit is a great starting point for any agency trying to deal with the problems presented by vacant and abandoned property.

Posted by Linda Pieczynski Category(ies): Code Enforcement, Foreclosure, property maintenance Tag(s):

Calling all inspectors.  Help me help a prosecutor decide what violations this picture contains

Up on a Roof

.  The person is storing tires on a roof and says they’re planters.  Illegal outdoor storage may be one violation but I’m looking for something creative

Posted by Linda Pieczynski Category(ies): property maintenance Tag(s):

I’m recently back from the Region III conference in Brooklyn Park, MN put on by AMBO.  This year I stayed an extra night courtesy of Mother Nature (my Southwest flight was cancelled due to the snow storm in Chicago) but it gave me a chance to visit with a great group of people.  One of the things that really impressed me is the difference between laws in a state like Minnesota versus those in my home state, Illinois.  Inspectors in Minnesota have more tools at their disposal in dealing with the foreclosure crisis because of their ability to clean a property up and collect the costs on the property’s tax bill.  In theory, Illinois inspectors can do the same thing but the way the 2005 law is written makes it so convoluted that I don’t know anyone who has been successful in collecting any money this way.  Putting a lien on property isn’t sufficient.  Years may pass before the property sells or the lien may be wiped out by foreclosure proceedings depending on local law.  What is the difference between states?  I believe Illinois is in the grip of special interests that defeat bills that would make it easier to get property cleaned up and help local jurisdictions recoup their costs.  Being able to collect municipal expenses on next year’s tax bill for a problem property with a process that is simple and direct is a terrific tool that I wish I could use in my practice. It would eliminate the helplessness inspectors experience during the gap period, from the time the homeowner walks away from a property and the time the lender takes title.   I envy my Minnesota colleagues.

Posted by Linda Pieczynski Category(ies): Foreclosure, Politics, Politics and building codes, property maintenance Tag(s):