Foreclosure registry unanimously approved

By Conor Shine

Wednesday, Dec. 7, 2011 | 7:42 p.m.

The Las Vegas City Council approved an ordinance Wednesday that will require owners of vacant properties in foreclosure to register with the city or face fines and potential jail time.

The bill has been in the works for over a month and is an attempt by the city to fight blight in its neighborhoods by holding property owners accountable for upkeep and maintenance on foreclosed homes and buildings.

The city has been hit especially hard by foreclosures in the wake of the recession, with more than 300 vacant homes becoming bank- or lender-owned in August of this year.

The new law will require banks or other institutions taking over foreclosed homes or buildings to inspect and secure the properties, maintain the landscaping, keep pools clean and remove any litter on the site.

A registry of the vacant properties will then be compiled by the city, using funds collected from a one-time $200 fee charged to property owners. The bill would apply to both commercial and residential real estate.

“The issues with foreclosures is not going away anytime soon,” Knight said. “(Vacant properties) lead to increasing opportunities for crime, they discourage buyers from purchasing neighboring homes and lower property values.”

The council approved the measure unanimously at its Wednesday meeting, despite protests from local bankers that the bill still needs improvement.

“It’s not there yet,” said Bill Uffelman, president of the Nevada Banker’s Association.

Uffelman raised several concerns, including a provision that would require banks to keep water and electric utilities connected to vacant properties. Uffelman worried that this could invite vandals or squatters to take advantage of empty homes.

“That’s really asking for trouble,” he said. “We’d rather the decision be left to the lender.”

Uffelman also took issue with the new ordinance’s punishment for absentee owners. Repeated failure to register vacant properties could lead to a criminal misdemeanor charge carrying a $1,000 fine or six-month prison sentence, but Uffelman said it’s unclear who specifically at a bank or real estate company would be singled out for punishment.

City Council members and staffers indicated during the meeting that few if any people would be sent to jail under the ordinance, but that the possibility of criminal charges are needed to give the bill “teeth.”

“We don’t want to see (anyone) in jail, but we do want that avenue of communication open. We want your members communicating with the city of Las Vegas, letting us know what’s happening with these properties,” Councilman Steve Ross told Uffelman.

Ross, who sponsored the ordinance, admitted it wasn’t a perfect solution, but said the new law will help the city keep track of vacant properties and work to make sure they don’t become a blight on their neighborhoods.

“We have a crisis on our hands,” Ross said. “You can drive through any neighborhood in this city and pick them out one after the other because no one has been maintaining them.”