18-RELATING TO CODE ENFORCEMENT LIENS ON PROPERTY SOLD AT AUCTIONCITY COUNCIL AGENDA ITEM BRIEFING SHEET
Submittal Date: Originating Department: Presented By; Agenda Item No.:
6-t-12
Council Date: ! Legal John Godwin, City Manager 18•
6-25- t 2
RECOMMENDED MOTION:
Motion to reapprove the existing Tax Abatement Policy consistent with Chapter 312 of the Texas Tax Code
PoLZCY IssuE(s):
Economic Development _
Paris, like most municipalities in Texas, has established certain standards for property maintenance. If a
property owner fails to meet these standazds, lie/she is notified of the violation and given a specifed
periad of time during which the property must be brought into eompliance. Many property owners do in
fact comply, but rnany others do not. In such cases, the city typically abates the nuisance by performing
necessary work ourselves, either using city forces or contractor(s). Once work is complete, the city bills
the property oumer for the work, including an administrative fee (which amounts to a sort of fine). If the
bill is not paid within a certain period of time, the city files a lien on the property. This lien has priority
over all other 1'aens except tax liens. When the property is sold, we should get paid the full amount
owed, plus interest, out of the closing costs.
Unfortunately, many of these properties do not sell and we never get anything back to recoup even our
out-of-pocket expenses, much Less the admin fee and accrued interest. A number of these properties in
fact end up being placed for publie auction due to delinquent taxes and end up in possession of the city.
Liens can sometimes be more expensive than a property is even worth. In such cases, a greater
flexibility with the cade liens might help the property sell and return it to the tax roll and productive use.
In other cases, speculators might use such flexibility simply ta buy properties on the cheap and re-sell
them at a profit with no intention to increase their praductivity.
Ultimately, the council has three choices - offer no flexibility on payment of code liens at all, autharize
the city manager to waive any ar a.ll of owed amounts as specific situations dictate, or reserve the right
as a body to waive all or parts of liens following public action by the council as a whole.
BOARD/COMMISSION RECOMMENDATION:
None
EXHisrxs:
AcrioN:
❑ Financial Repor
F] Departcnent Ret
❑ Presentatian
R Public Hearing
Fiscni. NoTES:
None
BUDGET INFO:
t Z Minute Order
Expense
;NA
iort Resolution
Budgeted Amt.
$NA
❑ Ordinance
y'xD Actual
$NA
❑ Other
Acct, Name
NA
Acet. Number
NA
City of Paris
Revised 2/04/08
\..D b