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HomeMy WebLinkAboutSubmittal-AdministrationCITY OF MIAMI OFF ICE OF THE CITY ATTORNEY MEMORANDUM TO: Victoria Mendez, City Attorney FROM: Brian A. Dombrowski, Assistant City Attorney DATE: December 12, 2013 RE: Unsafe Structures - Special Assessment Collection FY 2013-2014 Matter ID No.: 13-2814 This memorandum serves to update you regarding the progress the Office of the City Attorney has made on the collection of unsafe structure liens through December 12, 2013. Since March 2012, we have been referred 303 cases for review. Following the review of the cases, each has been placed into one of two categories. To summarize: Liens which have been collected, or are collectable. More specifically: One hundred forty-six (146) liens have been collected on for a total collection of $319,355.36. Twenty-two (22) liens, totaling $231,782.90, have been determined to be less than 5 years old. We have started the collection proceedings by sending demand letters. Having received no response, we are reviewing each lien on a case by case basis to determine the proper route to take in furtherance of our collection efforts. Thirty-seven (37) new liens, totaling $347,000.01, have recently been received by this office and are not ripe for foreclosure. However, demand letters have been sent out on each property in order to not delay our collection efforts. Eighteen (18) liens, totaling 173,719.91, have been detennined to be older than 5 years, Wc have sent demand letters, however, at this time we have focused our efforts on collecting the newer liens. II, Liens which are uncollectable now, or may become uncollectable. More specifically: Eleven (11) liens, totaling $140,141.94, are on properties which have been placed on the "Lands Available for Taxes". Should the taxes not be paid, the property will escheat to the County rendering the City's lien null and void. The City has the option of acquiring the property by paying the taxes. Memoranda have been sent to the client advising them of the legal options and requesting direction. To date no response has been received. Fifty (50) liens, totaling $175,211.82, are invalid for lack of proper notice, failure to intervene in a foreclosure action, City of Miami owned Doc. No.: 419756 - 0/:9/3 ry), .5-fra.-17 0 properties, or the lien was released. These liens have been removed from the City of Miami's Accounts Receivable system. Four (4) liens, totaling $28,468.69, are on properties owned by the City of Miami. These liens have been removed from the Accounts Receivable system. • Fifteen (15) liens, totaling $76,581.50, are either uncollectable due to the age of the lien, or because the lien amount exceeds the value of the land, and the outstanding taxes make foreclosure economically unfeasible. We will continue to keep you advised of the collection efforts regarding unsafe structure liens. Doc. No.: 419756 th public' on /2 z2 A. Thompson, City, Clerk CITY OF MIAMI OFFICE OF THE CITY ATTORNEY MEMORANDUM TO: Victoria Mendez, City Attorney FROM: Brian A. Dombrowski, Assistant City Attorney DATE: December 12, 2013 RE: Lot Clearing Special Assesment & Liens 2013 - Collections Matter ID No.: 13-64 In September 2012, this Office was tasked with collection of outstanding lot clearing liens. The process for collection of these liens differs from the collection of unsafe structure liens. In order to collect the lot clearing liens, this Office received only the accounts receivable list from Finance, with no back up documentation regarding the liens. This requires that we look up each lien in CityView in order to determine validity and whether the lien was recorded. Because CityView only goes back to 2005, any liens assessed prior to 2005 currently cxist with no information other than a property address and an amount due. This memorandum serves to update you regarding the progress the Office of the City Attorney has made on the collection of lot clearing liens. As of September 1, 2013, we have been referred 2,684 cases for review. At this point, we have reviewed 1,466 cases. Following the review of these cases, each has been placed into one of two categories. To surrunarize: I. Liens which have been collected, or are collectable. More specifically: Two hundred twenty-five (225) liens have been collected on for a total collection of $195,277.08. Three hundred sixty (360) liens, totaling $191,428.89, may be valid. We have started the collection proceedings by sending demand letters. Should we receive no response, we will review each lien on a case by case basis to determine the proper route to take in furtherance of our collection efforts. IL Liens which are uncollectable now, or may become uncollectable. More specifically: 0 Two hundred ninety-six (296) liens, totaling $225,172.12, are on properties which have been placed on the "Lands Available for Taxes". Should the taxes not be paid, the property will escheat to the County rendering the City's lien null and void. The City has the option of acquiring the property by paying the taxes. Memoranda have been sent to the client advising them of the legal options and requesting direction. To date no response has been received. Nineteen (19) liens, totaling $17,477.43, are invalid for lack of proper notice, failure to intervene in a foreclosure action, or released through litigation. Doc. No,: 419755 One hundred eighty (180) liens, totaling $135,564.62, are invalid because they were placed on property owned by Miami -Dade County, and are uncollectable pursuant to Article 10, Section 13 of the Florida Constitution, A memorandum has been sent out to remove these liens from the City's Accounts Receivable records. Fourteen (14) liens, totaling $11,780.39, are invalid because they were placed on property owned by the City of Miami. A memorandum has been sent out to remove these liens from the City's Accounts Receivable records. Three hundred seventy-two (372) liens, totaling $288,797.31, are assessed on property owned by Bankers Lending Services, Inc. The City is currently in litigation with the property owner regarding the validity of these liens. We will continue to keep you advised of the collection efforts regarding lot clearing liens. Doc. No.: 419755 Submitted into the public recorcl irsi ccariai7;:iC,i on /2 /Z /3 PiLiCe'R — ThOSTiOrt. -.'i'0,1 Cierie