Title
Proposed Vacant Property Registry (Ordinance G-7203)
Description
Request City Council approval of the proposed framework for the Neighborhood Services Department's (NSD) Vacant Property Registry (VPR).
Report
Summary
In May 2023, NSD presented a draft framework for a VPR to the Community and Cultural Investment (CCI) Subcommittee. NSD addresses property maintenance violations for occupied and unoccupied/vacant properties. Vacant properties can present a challenge when trying to notify a responsible party regarding code violations. In some cases, staff spends significant time researching ownership contact information when the information is not readily available, or when the owner is located out of state and does not have a local point of contact.
The draft framework would require vacant non-residential properties, unimproved land that is over 10,000 square feet, and residential properties, with 50 or more units, to register if vacant for more than 30 days. Staff would create a free online registration portal for ease of registry and to provide education on the Authority to Arrest and trespassing process, private property Graffiti Removal Waiver, PHX C.A.R.E.S. process, property maintenance responsibilities and Crime Prevention Through Environmental Design (CPTED).
Additionally, staff would develop a private property outreach access waiver to allow City staff or contractors to access the property to provide outreach and offer services to unsheltered individuals or other people in crisis. Annual registration would be required, and occupancy needs to be reported within 10 days. Most importantly, the registry would require a local contact who would have the ability to address issues in a timely manner.
Staff received feedback from the CCI Subcommittee and, over the summer, conducted public outreach, identified resources needed to create and enforce a registry, researched costs, and updated the framework.
Public Outreach
Following the presentation in May 2023, NSD held four community outreach meetings, three virtual and one in-person. Outreach included social media (FaceBook, Twitter, Next Door, NSD website), Neighborhood Associations listed with our Department, and Arizona Multi-Housing Association. NSD also created a VPR webpage and conducted an online survey. Approximately 62 residents attended the community meetings and 22 responses were received via the online survey. Overall, staff received positive feedback and support for the proposed registry, with some residents asking for ways to better address repeat violations on vacant residential properties, support for an electronic Graffiti Removal Waiver, and questions about how to encourage or support development/use of vacant property.
The primary resource considerations include what software platform to use and enforcement costs. Additionally, the CCI Subcommittee inquired about whether additional resources would be needed for proactive enforcement.
NSD researched software platforms for the online registration portal and selected Microsoft Dynamics as the most feasible option. The City currently has solutions built on Microsoft Dynamics, including the Short-Term Rental Registry, and there is no new cost for this system as staff already have the necessary licenses for ongoing use. The Information Technology Services Department estimates the registration portal could be available on Jan. 1, 2024.
Staff anticipates no additional cost for standard complaint-based enforcement. This includes proactive enforcement of major arterials as already outlined in NSD's Code Enforcement Policy. Additionally, staff worked with the Community and Economic Development Department on possible solutions to proactively identify potential vacant properties that would fit the requirements of the registry. Staff currently has access to CoStar, which provides access to commercial real estate data, that can be a resource to provide leads for inspections. Based on the currently low estimated vacancy rate of commercial real estate, staff does not anticipate a significant ongoing enforcement resource demand once the initial outreach and education is completed.
Based on the generally positive feedback received through NSD's outreach efforts, staff proposes maintaining the draft framework presented in May, including providing a free online registration portal for ease of registry through Microsoft Dynamics. Increased penalties for noncompliance would include a minimum fine of $500 (first violation), $1,000 (second violation), and up to a maximum fine of $2,500 (third and subsequent violations).
To help assist with development/use of vacant property, staff will include an option in the registry for applicants interested in sharing their information with the Community and Economic Development Department to use in providing referrals for businesses seeking vacant commercial space in Phoenix. Staff would plan to launch the registration portal on Jan. 1, 2024, with enforcement starting on Feb. 1, 2024.
Finally, due to community interest in addressing repeated issues on residential properties, NSD will create a parallel process to identify and address these repeat offenders through scheduled compliance inspections.
Staff recommends approval of the proposed amendment to the City Code section 39-3 and adding section 39-49 through 39-55, Article IX related to Vacant Property Registry to establish the registry and related requirements (See Attachments A and B).
Concurrence/Previous Council Action
On Oct. 11, 2023, the Economic Development and Housing Subcommittee unanimously recommended City Council approval of the proposed framework for the Vacant Property Registry by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Neighborhood Services Department.