Councilman Lavelle is set to propose an ordinance that would require financial institutions upon commencing a foreclosure action, to:
- Register the property with the Bureau of Building Inspection. The registration would require appointing a local point of contact (within Allegheny County) who would respond to any problems that might arise with the property
- Maintain the property to all applicable exterior building codes.
Failure to register the property will result in additional penalties and fees. For the purposes of this legislation, financial institutions will be required to perform an inspection of the property, no later than 30 days after foreclosure is initiated, and if the property is determined to be vacant, then the property must be registered. Periodic re-inspections of properties will be required to ensure that properties are maintained and occupancy status is well-known.
Cities throughout the country have implemented programs such as the Vacant Property Registry to deal with abandoned bank-owned properties, often referred to as REO (Real Estate Owned) properties. These similar programs have demonstrated potential to address blight and abandonment in our communities. Councilman Lavelle and his staff have sought the input of community groups and banks in this process in order to refine and strengthen the proposed ordinance, and we look forward to the introduction of this ordinance.
If you would like more information about the Vacant Property Registry, contact PCRG’s Land Use Policy Coordinator, Ed Nusser, at enusser@pcrg.org or (412) 391-6732 ext. 203.