Senator Pavley’s Blight Prevention Bill Approved by Senate Committee

[The information below was taken from a press release provided by Senator Pavley's office].

Senate Bill 1472, authored by Senator Fran Pavley, was approved by the Senate Transportation and Housing Committee Tuesday. SB 1472 is a bill that will provide local governments additional tools to fight blight caused by foreclosed properties primarily owned by banks and financial institutions.

Senator Pavley said, “We are doing everything we can to help homeowners and our communities recover from this terrible economic recession. We must ensure homeowners are not hurt by any further foreclosure issues, including the impact run-down foreclosed properties owned by financial institutions can have on an entire neighborhood.”

SB 1472 extends the use of enforcement tools for local agencies to combat blight including fines of up to $1,000 per violation, per day. This bill provides an incentive to potential homebuyers, investors, or developers to purchase blighted properties by preventing blight enforcement actions from being taken against new purchasers of blighted property for 60 days, provided repairs are being made to the property.

The bill allows the imposition of the costs of a receivership over blighted property to be imposed directly against the owner of blighted property. Currently, blight remediation is paid for using loans against the property taken by a court appointed receiver. This should encourage greater use of the receivership remedies provided by the state’s Health and Safety Code.

In addition, SB 1472 also requires banks that release liens on a foreclosed property inform local code enforcement agencies of the release, so demolition or remediation of severely blighted property can proceed without further delay.

Senator Pavley said, “Blighted homes are a nuisance, they reduce neighboring home values and threaten the health and safety of communities hardest hit by the mortgage crisis. This blight not only creates a nuisance for neighboring residents, but continues lowering the value of surrounding homes, driving many homeowners further underwater.”

SB 1472 is part of the proposed legislation in the "The California Homeowner Bill of Rights," sponsored by the State Attorney General. The bill now goes before the Senate Appropriations Committee.