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HomeMy WebLinkAboutD-2 Staff Report - Update Regarding Real Property Records ReportSCHEDULED ITEM D-2 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: JOSE D. JIMENEZ, DIRECTOR OF ECONOMIC & COMMUNITY DEVELOPMENT DEPARTMENT DATE: FEBRUARY 21, 2023 SUBJECT: UPDATE REGARDING ARTICLE XI OF THE AZUSA MUNICIPAL CODE- REAL PROPERTY RECORDS REPORT BACKGROUND: Article XI of the Azusa Municipal Code - Real Property Records Report, also referred to the Presale Report has been in effect since 1986. It was adopted as a consumer protection measure, as well as a continuing method to improve and maintain the quality of all properties within the City of Azusa. The process allows for the review of all property to ensure proper compliance with all applicable laws and ordinances such as, the Building Code, Zoning Code, property maintenance, and the Azusa Municipal Code, prior to entering into an agreement of sale. As part of the process, Community Improvement Staff are required to prepare and issue a real property records report to a buyer prior to entering into an agreement to sell land. In 2022, the Community Improvement Division inspected 438 properties under the presale inspection program. RECOMMENDATION: Staff recommends that the City Council take the following actions: 1)Receive and File; or 2) Provide Additional Direction ANALYSIS: As adopted and codified in Chapter 14-326 of the Azusa Municipal Code, the Real Property Records Report was intended to provide both existing and tentative property owners in the City important information about property proposed for sale or transfer in order to adequately protect APPROVED CITY COUNCIL 2/21/2023 Council Update – Article XI – Real Property Record Report February 21, 2023 Page 2 of 3 one’s interests in a sale. Said information is to contain vital building and zoning records, which are then packaged into a useful disclosure of real property information document to be used in conjunction with the sale of land. Another goal of this process is to assist the City in abating public nuisances and enforcing its building and zoning ordinances by identifying properties in violation of its codes. Over the last five years, the City on average has received and processed 445 applications. The process is initiated when a property owner or their authorized representative completes and submits a Real Property Records Report – Presale Inspection form (ATTACHMENT A), prior to entering into an agreement of sale. Please note, a business license is required for a real estate agent and/or brokers doing business in the City of Azusa. After fees are collected, city staff begins the research phase of the inspection. The research phase consists of searching through various databases to collect vital building information such as building permits, land use approvals, Title, and Assessor records. When all information is gathered, the Community Improvement Inspector will review the compiled documents in order to prepare for the inspection process. Procedurally, an inspection is conducted to the exterior of a building. However, in the case where there is a questionable observation or potential safety hazard of construction, the inspector may request an interior inspection. In situations where violations are noted, the Community Improvement Inspector will work carefully with the responsible parties to address and correct all violations. Typically, these include, but are not limited to, painting of exterior façades, replacing broken or damaged windows, or installing smoke detectors. In situations where major violations may exist, such as unpermitted additions, illegal garage conversions, and substandard construction, Community Improvement Staff will refer the selling party to the Building and Planning Divisions in order to obtain the necessary information that is required to legalize or address a major violation. Sellers are not required by City ordinance to correct the violations prior to the close of escrow. It is the responsibility of the parties entering into an agreement to decide who will correct the violations. When the City conducts a follow up inspection, any outstanding items will be addressed with the owner of record at that time. Once the physical inspection and report are completed as provided by staff, the Real Property Records Report (ATTACHMENT B) is delivered by the property owner or the authorized designated representative of the owner to the buyer or transferee of the property prior to the execution of the agreement of sale. It is the responsibility of the seller to disclose the presale report to the future buyer prior to entering into an agreement for sale. Per Section 14-329 of the AMC, the report is valid for a period of six months. The timeline may be expanded on a case-by-case situation, such as unforeseen circumstances that require more time to address. It is important to note; the presale inspection report does not stop any property from moving forward with a sale or transfer of ownership. The Azusa Municipal Code gives the city 10 business days to complete the RPRR process, from receiving the application to a completed report. City staff is reasonable with time-frames when working with property owners and buyers when it comes to correcting Presale inspection code violations which are documented on the report. To conclude, it is staff’s opinion that the Presale Inspection Report process provides a valuable tool to inform potential property owners of any relevant or concerning violations that require Council Update – Article XI – Real Property Record Report February 21, 2023 Page 3 of 3 attention, while protecting the interest of all involved parties. Furthermore, this process helps Community Improvement Staff in abating public nuisances and enforcing its building and zoning ordinances by identifying properties in violation of its codes. As presented herein, the process allows for a method to improve and maintain the quality of all properties within the City of Azusa. As always, staff is willing to listen and consider any reasonable options to streamline this process. FISCAL IMPACT: Consideration to receive and file this report presents no fiscal impacts. Policy direction in regards to the Real Property Records Report process will have to be analyzed to see if changes to the process require additional resources and thus present a fiscal impact. Prepared by: Reviewed by: Rick Minn Jose D. Jimenez Community Improvement Manager Director of Economic and Community Development Fiscal Review by: Reviewed and Approved by: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachments: ATTACHMENT A - Real Property Records Report – Presale Inspection Form ATTACHMENT B - Real Property Records Report ATTACHMENT C – Article XI – Real Property Records Report of the Azusa Municipal Code Updated 03/2022 REAL PROPERTY RECORDS REPORT – PRESALE INSPECTION PLEASE BE ADVISED OF THE FOLLOWING: Per 14-326 Azusa Municipal Code - Real Property Records Report (RPRR) (Presale- Inspection) requires the following: 1.Prior to entering into an agreement of sale of any property, the owner or his/her authorized representative shall obtain from the city a Real Property Records Report (RPRR) application form. 2.The completed inspection of the RPRR shall be delivered by the property owner, or the authorized designated representative of the owner, to the buyer or transferee of the property prior to the execution of the agreement of sale. The buyer or transferee shall execute a receipt therefore as furnished by the city, and the receipt shall be delivered to the Community Improvement Division as evidence of compliance with this section. 3.Please note: The Azusa Municipal Code allows for 10 business days for the city to process the application, conduct the inspection and issue a report to the requesting party. The 10 business days are counted after receipt of the complete RPRR application - signed Consent to Inspect form and process of payment. The issuance of the real property records report is not a warranty or representation by the city that the property or its present use is or is not in compliance with the law. The city does not represent or warrant that the information contained in the report will always be complete and accurate, and all persons receiving the report should independently verify the information contained therein before relying upon it. Neither the enactment of this article nor the preparation of and delivery of any report required under this article shall impose any mandatory duty upon the city to completely and accurately report the information from its records or impose any liability upon the city for any errors or omissions contained in the report. Information for Real Estate Agents - Please note that the listing or sale of real property within Azusa is considered business activity. The agent & broker representing the seller, and the agent & broker representing the buyer are required to obtain a business license - a California Department of Real Estate license does not act as a city business license. For more information or to apply online visit: https://azusaca.gov/1158/Real-Estate-Brokers-and-Agents Type Fee Condominium/Townhome $118 Vacant/Unimproved Land $237 Single Family Dwelling $237 Multi-family Dwelling - per parcel $237 additional cost per unit $13 Commercial Property $237 Should you have any questions please feel free to contact the Community Improvement Division: 626-812-5265 or communityimprovement@azusaca.gov For payment instructions please see page 3. Keep this page for informational purposes City of Azusa Community Improvement Division 213 E. Foothill Blvd., Azusa, CA 91702 Office Hours: Monday – Thursday 7:00 a.m. to 5:30 p.m. Attachment A Updated 03/2022 CITY OF AZUSA REAL PROPERTY RECORDS REPORT APPLICATION Property Address: Assessor Parcel Number: Year built: Number and type of accessory buildings: (i.e. storage buildings, garages, guest houses, etc.) Have you constructed any buildings, patio covers, carports or other structures? Are there any underground storage tanks on the property? For Residential Dwellings - Total number of houses/apartments on property: Does the residence have smoke and carbon monoxide detectors? For Commercial Buildings - Number of commercial/industrial units: (attach a list of occupants/business names) OFFICE USE ONLY Title Central Hanging Other HDL Assessors Building Date Rcv’d Case# RPRR# Due Date CONSENT TO INSPECT PRIVATE PROPERTY The undersigned herein consents to the City of Azusa Community Improvement Division Inspector(s) right of entry to inspect all yard areas and building exterior, pursuant to the Real Property Records Report Ordinance, to determine whether or not said property complies with local and state codes related to said property. The undersigned herein states that he/she is in lawful possession or control of the property designated below, or has the authority to act in the owner(s) behalf and in their absence. PROPERTY TO BE INSPECTED: Specific areas, rear and side yards, garage(s), accessory building(s), and common areas. Any dogs in yard? Gate(s) locked? Gate/Lockbox code CONSENTING PARTY – ONLY ONE SIGNATURE IS REQUIRED Owner: Signature: Agent: Signature: APPLICANT INFORMATION Owner’s/Seller’s Name: Phone#: Current Address: Representative/Agent: DRE# City of Azusa Business License # Phone#: Broker: DRE# City of Azusa Business License # Phone#: Agent’s email: Broker’s email: Once the report is complete to whom should the report be emailed to (print clearly)? Name: Email: Updated 03/2022 Payment can be made via check or credit card To pay by check, mail application & check, payable to: City of Azusa Attn: Community Improvement Division 213 E. Foothill Blvd. Azusa, CA 91702 To pay by credit card: Sign and complete this form to authorize the City of Azusa to make a one-time debit to the credit card listed below and email application and form to: communityimprovement@azusaca.gov A COPY OF YOUR DRIVER’S LICENSE OR ID MUST ACCOMPANY THIS FORM This is to protect you, the cardholder, from possible fraud. Thank you. Type Fee Condominium/Townhome $118 Vacant/Unimproved Land $237 Single Family Dwelling $237 Multi-family Dwelling - per parcel $237 additional cost per unit $13 Commercial Property $237 CITY OF AZUSA - ONE TIME CREDIT CARD PAYMENT AUTHORIZATION FORM AZUSA PROPERTY ADDRESS: CARDHOLDER NAME: PLEASE PRINT PHONE: CARDHOLDER SIGNATURE: EXPIRATION DATE: □ VISA □ MASTER CARD □ DISCOVER BILLING ADDRESS: ZIP CODE: CARD NUMBER: _________-_________-_________-_________ AMOUNT:$ SECURITY CODE (back of card): By signing this form I give the City of Azusa permission to charge the credit/debit card for the amount indicated plus a 2% processing fee. This is permission for a single transaction only and does not provide authorization for any additional unrelated debits or credits to the account. I certify that I am an authorized user of this credit/debit card and that I will not dispute the payment with my credit card company/bank. 2% processing fee will be charged on all credit and debit card payments. Copy of ID/Driver’s license Email a copy of this report, signed by both parties, to: City of Azusa - Community Improvement Division - communityimprovement@azusaca.gov The buyer and seller should each retain a copy for their record. SELLER’S COPY BUYER’S COPY CITY’S COPY REVISED COPY DATE CITY OF AZUSA The Canyon City REAL PROPERTY RECORDS REPORT COMMUNITY IMPROVEMENT DIVISION REPORT NO: DATE OF ISSUE: DATE OF EXPIRATION: The following information provided is in accordance with Chapter 14.326 et seq. Azusa Municipal Code. The report is based on information on file with the City of Azusa, but not a guarantee, of the disclosure of information from City records about real property within the City. Street Address(s): Assessor Number: Zone Classification: Type of Occupancy: Administrative/Discretionary Acts of Record: Other: State Law requires smoke detectors and carbon monoxide devices to be installed upon sale. Property owners are required to maintain adjoining parkways (if any). State Law requires two-straps on water heater upon sale. Special Restriction on Use or Development: Chapter 14.352 et. seq. Azusa Municipal Code Requires All residential rental properties to be registered with City excluding condominiums and townhouses. Unpermitted Building/Land Use Violation Noted: Seller: Signature: Date: Buyer: Signature: Date: ************************************************************************************************************************************************************************************ For questions pertaining to this report, please contact: Brent Hale, Senior Community Improvement Inspector, (626)633-4318, bhale@azusaca.gov ************************************************************************************************************************************************************************************ Attachment B Page 1 of 3 ARTICLE XI. - REAL PROPERTY RECORDS REPORT Sec. 14-326. Authority and purpose. The city council does find, determine and declare that: (1)This article is adopted pursuant to the authority of Government Code § 38780 et seq. and other applicable law. (2)Citizens, property owners and potential property owners in the city need information about property proposed for sale or transfer in order to adequately protect their interests in a sale or transfer. Building and zoning records of the city constitute an important source of such information. Therefore, it is one of the purposes of this article to assist in, but not guarantee, the disclosure of information from city records about real property within the city. (3)It is also a purpose of this article to assist the city in abating public nuisances and enforcing its building and zoning ordinances by identifying properties in violation of its codes. (Code 1971, § 15.06.010) Sec. 14-327. Definitions. The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Agreement of sale means any agreement or written instrument which provides that title to any property shall be transferred or conveyed from one owner to another owner after the sale. Owner means any person, copartnership, association, corporation or fiduciary having legal or equitable title or any interest in any property. Property means any unimproved or improved real property situated in the city and includes the buildings or structures located on the property. (Code 1971, § 15.06.020) Cross reference(s)—Definitions and rules of construction generally, § 1-2. Sec. 14-328. Required. Prior to entering into an agreement of sale of any property, the owner or his authorized representative shall obtain from the city a real property records report as described in section 14-329. (Code 1971, § 15.06.030) Sec. 14-329. Issuance. (a)Upon application of the owner or his authorized agent on a form prescribed by the city and the payment to the city of a fee established by resolution of the city council, the community development director shall review pertinent city records insofar as they are available and, within ten business days after receipt of a complete application, deliver to the applicant a report which contains the following information about such property insofar as it is available as of the date the report is issued: (1)The street address and assessor number; Attachment C Page 2 of 3 (2) The zone classification as set forth in this Code; (3) The occupancy as indicated and established by permits of record; (4) Variances, conditional use permits, exceptions, precise plans and other pertinent administrative or legislative acts of record; and (5) Any special restrictions of use or development of record. (b) The report shall expire and may not be used for the purpose of compliance with section 14-330 six months after issuance. (Code 1971, § 15.06.040) Sec. 14-330. Delivery to buyer or transferee. The real property records report shall be delivered by the property owner or the authorized designated representative of the owner to the buyer or transferee of the property prior to the execution of the agreement of sale. The buyer or transferee shall execute a receipt therefor as furnished by the city, and the receipt shall be delivered to the community development director as evidence of compliance with this section. (Code 1971, § 15.06.050) Sec. 14-331. Exceptions. This article shall not apply to the following: (1) The first sale of residential or commercial buildings or condominiums located in a subdivision whose final map has been approved and recorded in accordance with the Subdivision Map Act not more than two years prior to the first sale. (2) Mobilehomes and trailers occupying land on a month-to-month rental or annual lease agreement where land sales are not involved and the use is in compliance with local zoning requirements. (3) Buildings and properties acquired or conveyed by the city. (Code 1971, § 15.06.060) Sec. 14-332. Penalties. (a) No sale or exchange of residential or commercial property shall be invalidated solely because of the failure of any person to comply with any provision of this article, unless such failure is an act or omission which would be a valid ground for recision of such sale or exchange in the absence of this article. (b) In cases where property has already changed hands and the city requests a seller to provide a report after a sale or transference of property has taken place, an additional fee in the amount of 50 percent of the original fee shall be required if the application fee is not paid within ten days of notice by the city. (Code 1971, § 15.06.070) Sec. 14-333. Nonliability of city. The issuance of the real property records report is not a warranty or representation by the city that the property or its present use is or is not in compliance with the law. The city does not represent or warrant that the Page 3 of 3 information contained in the report will always be complete and accurate, and all persons receiving the report should independently verify the information contained therein before relying upon it. Neither the enactment of this article nor the preparation of and delivery of any report required under this article shall impose any mandatory duty upon the city to completely and accurately report the information from its records or impose any liability upon the city for any errors or omissions contained in the report. (Code 1971, § 15.06.080)