Tag Archives: Common Council

City tags lenders with property upkeep duties

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Banks and financial institutions that file foreclosure actions against properties must maintain the properties if they have been abandoned by their owners, under a new ordinance adopted by the Common Council.

“This is a very important piece of legislation,” said Ald. Michael Murphy, who sponsored it with Aldermen Jim Bohl, Robert Bauman and Willie Wade. Murphy said the ordinance is being eyed as a nationwide model.

Under the legislation, lenders must inspect a property once a foreclosure action is filed and register the property if it appears to be abandoned. Lenders must reinspect occupied properties every 30 days.

The ordinance also requires lenders to assure that:

•    Buildings are secured and inaccessible to unauthorized persons.
•    Litter, trash, debris and graffiti are removed.
•    Grass is mowed, noxious weeds are removed, vegetation trimmed.
•    Immediate risks to health, welfare and safety are eliminated.
•    Public walkways are kept free from ice, snow, mud and other debris.

Violations can bring fines of $100 to $2,000.

Many banks and lenders support the ordinance, which was modified in draft form after lending institutions objected to some of its original provisions, according to testimony before the Common Council’s Zoning, Neighborhoods and Development Committee.

The city has 1,700 foreclosed properties, with another 4,500 “on the waiting list,” Murphy told the council.

In some instances, owners who can’t make their mortgage payments are simply walking away from the properties, he said.

As a result, “the snow is not shoveled on the sidewalks, the grass is not cut, the garbage is not picked up, these properties end up becoming attractive nuisances, they become problems with gang members, solicitation. They also become fire traps, they also provide further decline in property tax values of the properties adjacent to them.”

The new ordinance, he said, is “not a silver bullet in terms of addressing all of these issues.”

The ordinance gives the city one way to deal with an issue made more difficult by the securitization and sale of loans between institutions. Murphy singled out Deutsche Bank, based in Germany. Deutsche has more than 400 city properties that have been foreclosed upon and 14 servicing agents.

“None of them can be reached,” he said.

The ordinance, he said, “is not a panacea, but I think it’s the right direction.”

A Milwaukee gas tax?

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Ald. Jim Bohl said yesterday the city should consider seeking the autority to levy its own gas tax of a couple of cents per gallon to fund local street repairs. Bohl, during a meeting of the Common Council’s Judiciary and Legislation Committee, said that an audit to be released this week will say the city should be spending about $35 million a year on street repairs instead of the $5 million and some it actually is spending (caution:  your correspondent is relying on memory for the numbers).

Bohl made his comments after Paul Vornholt, city intergovernmental relations director, said the city would seek more funding for local road aid in the upcoming state budget. Bohl argued that the state was not going to help the city, and that the road builders, generous to both sides of the political aisle, realized the real money was in building new lanes that eventually will have to be reconstructed, generating more revenue and profit.

The Wisconsin Department of Transportation is seeking just a 1% increase in funding for local road aids in the 2009-11 state budget. Very little of the projects that qualify for the aid actually get it. Last year, general transportation aid (local road aid) paid for just 22.5% of eligible costs for counties and 18.4% for municipalities.

Citywide loan program advances

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A Common Council committee on Monday approved a $700,000 loan program that would include home-repair loans to low-income city residents living anywhere in the city.

Many Neighborhood Improvement Development Corp. loan programs are restricted to targeted areas. The new program also would be operated by NIDC, but residents throughout the city could take advantage of it, according to a city report.

The repair loans generally would be limited to $1,500 to $7,500, according to the report.

“Eligible work items would include roofing, plumbing, heating and electrical repairs,” the report said. ”Loans would be repayable and structured to be affordable, with payment and terms based on income.”

Funding for the program would come from proceeds from the sale of the Kilbourn Tower at 923 E. Kilbourn Ave.

The loan program backed by the Zoning, Neighborhoods and Development Committee also would include additional funding for loans in targeted neighborhoods and money for “catalytic projects” in areas near targeted neighborhoods with similar efforts.

“These loans will help homeowners who would otherwise do without, or might refinance with a predatory lender,” the report said. “They also would be used to support catalytic neighborhood redevelopment projects.”

McGee says he will accept responsibility

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Former Ald. Michael McGee said last week that he will accept responsibility for his actions when he is sentenced next month for bribery and extortion.

“I first want to express my complete regret, sorrow, and responsibility for the charges I was recently convicted of,” he said in a 12-page letter to US District Judge Charles N. Clevert. “At sentencing, I will publically acknowledge my role as well as write you.”

McGee last month asked to be released pending his Oct. 24 sentencing. The US attorney’s office opposes the request.

McGee said in his latest letter that defense lawyer Calvin Malone did not present critical information.

“If you, or previous judges would have had all facts surrounding allegations that my behavior is indicative of a dangerous individual, I believe I would be out on bail,” he wrote.

McGee, whose extra-marital activities are a matter of public record, said he is a “family man – who has made mistakes in my marriage. I am not a rough, disrespectful, or violent person. I have dedicated my whole life to creating an atmosphere of peace and respect for each other – amongst individuals. I am not a drug dealer or gang member, nor am I loosely affiliated with illegal enterprises. I have, as well as my family — suffered through this whole experience humiliation.”

McGee, in his letter, discusses Jack Adel, a key government witness. McGee denies that he tried to block a block party organized by Adel and another figure in the case against him.

“The block party in question was requested at the same intersection where a twelve year old was killed in a hit and run accident,” McGee said. “Out of respect for the public and neighborhood outcry for traffic signals and safety precautions at the aforemention intersection, I respectfully requested that the planned event be moved to a block not widely traveled; or to the neighborhood school’s playground.”

McGee also denied ordering a “hit” on a man suspected in a break-in, and said slang language he used in conversation was taken out of context.

“Your honor, I have suffered greatly both physically and pyschologically since my incarceration on May, 28, 2007. I have been housed in three (3) facilities, and kept in the ‘hole’ for seven (7) months because of the ‘high’ profile nature and protection of my person. I have lost over 30 pounds and contracted shingles.”

Wheel tax vote and unintended consequences

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My prediction about what aldermen will be hearing now that there is a $20 wheel tax instead of special assessments for street repairs:

The street in front of my house sucks. It’s got all sorts of potholes and it is a really, really, rough ride. Now that the wheel tax has been adopted and my neighbors and I don’t have to worry about special assessments, we’d like the street rebuilt. Now. No? If we don’t get services for the money, why the hell are we paying that wheel tax? And why does street X get rebuilt before my street does? My street is just as bad.

I also wonder if the folks who rejected street projects because of the onerous special assessments will get another chance now that there aren’t going to be those assessments. The rules have changed, after all.

The assessments, as outrageous as they were, at least functioned to moderate folks’ desire to have their streets repaired so the Department of Public Works wasn’t overwhelmed with demand. Now that those special assessments are gone, it’s doubtful that will be the case. There still is not enough money to repair all the streets that need repairing, but there is no motivation any more for residents to limit their demands for street repairs.

Watch out, aldermen, you got what you wished for. By the way, Ald. Murphy, Pinecrest Street really is in sad shape….