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Topic: State- fine individuals on blight, not banks or institutions

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untanglingwebs
El Supremo

Michigan blight bills could mean more fines, jail time for deadbeat landowners



By Jonathan Oosting | joosting@mlive.com
on March 05, 2013 at 4:54 PM, updated March 05, 2013 at 4:57 PM


LANSING, MI -- Land speculators and irresponsible owners could face new fines or possible jail time under proposed legislation designed to fight blight in Michigan cities.

A five-bill package, approved today by the Senate Judiciary Committee and now headed to the full Senate, would establish new civil and criminal penalties for individuals who rack up multiple blight violations and prohibit them from obtaining municipal building permits or rezoning authorizations.

Under Senate Bill 35, introduced by Sen. Virgil Smith, D-Detroit, an individual who accumulates blight fines of $1,000 or more and fails to pay them within thirty days could face an additional fine and eventually be charged with a misdemeanor that could result in up to one year of jail time.

Smith said the package will give communities like Detroit or Flint "the hammer" to go after land speculators and other blight violators whose abandoned buildings can become eyesores or havens for criminal activity.

"Blight is a pariah to the community," Smith told MLive. "…We have to get a handle on these type of properties that are just standing their doors wide open. We've got kids walking to school. We have to hold these folks accountable."

The blight-busting bills are similar to a package that passed the Senate last year, but this time around they contain exemptions for banks and credit unions, which Smith hopes will help them find favor with a wider audience and advance in the House.

"Most of the blighted property we have (in Detroit) is privately owned by speculators and things of that nature," he said. "…The banks have been proactive working with us. They don't want to sit on property. It hurts their bottom line. So we're working with the banks."

Michigan Gov. Rick Snyder, during his State of the State Address in January, asked lawmakers take action against the owners of abandoned properties, which he said could help strengthen neighborhoods and communities.

The bipartisan package contains two bills sponsored by Republican lawmakers, including Sen. Rick Jones of Grand Ledge, whose legislation would allow municipalities to seek wage garnishments against blight violators in court.

"You have many violators that stack their tickets up, ticket after ticket, and simply don't respond because there's no teeth in the law," said Jones, how chairs the judiciary committee. "So what we're attempting to do with this package of bill is put some teeth into the law, so if you stack up a bunch of tickets, you're going to have to address them or you're going to face at least a large fine or a misdemeanor charge."

Jonathan Oosting is a Capitol reporter for MLive Media Group. Email him, find him on Google+ or follow him on Twitter.


Tue Mar 05, 2013 11:47 pm


untanglingwebs
F L I N T O I D

This does not address the vandals that strip a vacant home.

Detroit has stories about strippers who follow the foreclosure notices and gut everything of value in these homes.

What about the banks, credit unions and land banks who own blighted properties? The land bank is the largest owner of property in Flint. Why is the state only proposing to drop the hammer on the individuals?

Flint placed the mechanism in place to addressblight violations. Then budget cuts eliminated the staffing necessary to implement these ordinances. Enhanced fines won't solve the staffing issue.


Tue Mar 05, 2013 11:53 pm
Post Wed Mar 06, 2013 12:00 am 
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untanglingwebs
El Supremo

While watching the news last week, the discussion revolved around "bank walk-a-ways". It seems that banks initiate foreclosure procedures and then fail to complete the process after the former homeowners vacate the premises.

By not completing the process the property taxes and other obligations for a vacant and/or blighted property fall on the evicted owner and not the lending institution.
Post Mon Mar 18, 2013 6:35 am 
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