Code Attorney

The Chicago Tribune had an informative article on the problem of half-built residences and the effect on neighborhoods on Sunday. http://articles.chicagotribune.com/2010-10-16/news/ct-met-half-built-houses-20101016_1_half-built-homes-construction-site-property-values We’ve been struggling with the problem for over 2 years now with spotty success.  The homes are half-built because the contractor or homeowner ran out of money and can’t get a new loan.  Many of the properties are in foreclosure.  Sometimes we’ve been able to get the exterior of the building finished so the house looks like it’s occupied even if the interior is not.  Usually though we have to wait until the lender takes possession so that we have someone with resources to do something.  Another option is to file an action for demolition if the property is unsafe or unsound after being open to the elements though the local jurisdiction has to be willing to spend legal fees on such a lawsuit.  Once the building permit expires, I’ve been using the property maintenance code for enforcement.  I’ve been arguing that once there is no construction going on, the structure is an “existing structure” of some type and, therefore, subject to the IPMC.  Another approach is to declare an unfinished building a nuisance under the local nuisance ordinance and then order that the nuisance be abated.  However, the lack of financial resources may make this impossible for the current owner.

There’s been a lot of press coverage about the mess in foreclosure land because many of the affidavits filed to support foreclosure actions were signed by people who had no actual knowledge about the mortgage documents.  Because of this, many of the banks have stopped proceeding on foreclosure actions until this issue is resolved.  The Wall Street Journal has an informative story about this latest embarassment to the mortgage industry at http://online.wsj.com/article/SB10001424052748704049904575554372238256744.html?mod=WSJ_hpp_LEFTTopStories This is not good news for local jurisdictions who have been waiting for distressed properties to be taken back by the bank.  I’ve seen properties where the owners have abandoned the property or don’t have the funds for the upkeep.  I’ve sometimes advised clients to be patient and wait for the sheriff’s sale so we can send a notice of violation to the lender once it is in possession.  With these delays, it means many properties will continue to deteriorate even more.

Often I get questions about deed restrictions and the role of the building official.  Deed restrictions (also known as restrictive covenants) may prohibit a number of things including the building of certain structures such as fences, swimming pools or sheds on the property of the homeowner.  When such a restriction is disregarded,  the building official  should not get involved unless a code violation has occurred, for example, building without a permit. The proper party to bring an action is the homeowners’ association.  This happened in Horn v. Huffman, a Kentucky case, where the homeowners built a ground pool in violation of the restrictions.  Eventually the association brought a lawsuit to force the owners to remove the pool.  The association won in court.

It is even possible that a building official might have to issue a building permit for something forbidden by the deed restriction if the application is proper.  While the building official may want to bring the applicant’s attention the fact that such a restriction exists, the building permit cannot be withheld based on the deed restriction alone.

Mick Vogt, an inspector with Villa Park, IL shared this video with me of “How to Construct a Snowman” from a zoning inspector’s perspective.  It’s delightful. http://www.gontramarchitecture.com/portfolio/Holiday_Video_2009/How_to_Construct_a_Snowman.swf

In Victorville, CA a lender decided to tear down new homes and other structures that hadn’t been completed to avoid future fines from the local government for code violations.

Officials of Guaranty Bank of Austin, Texas, which took over the development last year, were unavailable for comment. But Victorville city spokeswoman Yvonne Hester said the bank decided not to throw good money after bad.

“It just didn’t pencil out for them,” she said. “They’d have to spend a lot of money to turn around and sell the houses. They just made a financial decision to just demolish them.”

You can read the entire story in the L.A. Times at this address

http://www.latimes.com/business/la-fi-demolish5-2009may05,0,4930126.story

Local governments frequently use fines as a way to motivate defendants to come into compliance with the code. Sometimes buildings have to be torn down if they’ve suffered too much damage from being open structures. But, this is the first time I’ve heard of tearing down brand new buildings as a way of coming into compliance with the local codes.

I just returned from Educode in Las Vegas where I taught Legal Aspects of Code Administration.  It was a great conference that was well attended despite the economic downturn.  People came from all over the country and everyone shared stories of the impact of the economy on their communities.  I’m hoping some of the attendees will share their stories on this website about the creative things they’re doing.One of the tools I recommended in class was this video which explains the extent of the housing meltdown.  The Crisis of Credit Visualized It’s well worth a look.   I especially enjoyed meeting building administrators from New Orleans.  I was touched by their passion as they face enormous problems in trying to restore their neighborhoods. Our foreclosure problems pale in comparison to what they’ve been facing.

I’m a great believer in understanding how we got into this economic disaster that is having a direct impact on code enforcement.  I saw a very interesting video at the Wall Street Journal website called the “End of Wall Street: What Happened”.  Part 1 is as good a summary as I’ve seen. You can find it at http://online.wsj.com/video/end-of-wall-street-what-happened/1F02EFEC-569A-4FED-9BF9-D89CD6E57AD0.html