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Bill Aims to Target Blighted Property Problem in Maine Cities

Updated 7/21: On June 30, ME LD 1203/SP 430 was enacted by the Senate after a vote to override a veto by Governor Paul LePage.

Link to final bill/public law text [pdf]


Updated 6/11: On May 19, the Maine Sun Journal released an article titled Bill aimed at helping cities fight blight hits roadblock.

Link to article

On April 24, the Maine Sun Journal published an article discussing LD 1203/SP 430, a bill designed to aid municipal government deal with abandoned and blighted properties more quickly.

Bill aims to target blighted property problem in Maine cities
 
AUGUSTA —  A bill meant to help municipal government in Maine more quickly deal with abandoned and blighted properties is picking up solid support in the Legislature.

The measure, LD 1203, sponsored by state Sen. Nate Libby, D-Lewiston, is scheduled for a work session and possible vote before the Legislature’s Judiciary Committee on Monday, April 27.

“Because of abandoned properties in my hometown, we are faced with blight, public safety hazards, theft, vandalism, and demolition costs at the taxpayers’ expense,” Libby said in a prepared statement. “Of course, these problems are not unique to my community. The inability to transition abandoned properties back into the hands of redevelopers hamstrings a municipality’s ability to deal with the detrimental effects of abandoned property.”

Libby said that over the past four years, taxpayers in Lewiston have spent close to $1.5 million demolishing 58 derelict buildings left vacant by their former owners and the financial institutions holding the mortgages.

Under Libby’s bill, banks would be required to notify a municipality when they enter foreclosure proceedings on a property. The measure also requires banks to name an in-state representative that is responsible for the care, maintenance and security of the property in question.

The bill would allow municipalities to adopt standards for the care and maintenance of abandoned property and to hold property owners responsible for that care or they would face a local fine.

According to Libby, once a property has been abandoned, the condemnation process can last 18 to 24 months.

Libby said the dilapidation of abandoned properties almost always follows the same sequence of events, including seeing the building’s pipes freeze; vandals then stripping the boiler and the electrical systems of copper; and then water leaks lead to roof, foundation, and mold damage.

“There are several local developers with a track record of returning older, dilapidated buildings back into service, but they are unwilling to navigate a maze of uncertainty when the mortgage holder is unresponsive and based out of state,” said Libby, who also serves as a Lewiston City Councilor. “This inaction leads to properties sitting vacant, unsecured and uncared for unless the city voluntarily assumes some responsibility for their care at no small cost.”

A number of local officials including Lewiston’s city manager, Bangor’s city solicitor, representatives from the Maine Municipal Association and the Mayors Coalition all spoke in favor of the measure. City managers from Waterville, Augusta and Biddeford provided written support for the bill.

Please click here to view the article online.

Please click here for additional media coverage (Bangor Daily News Maine 4/25).

Please click here to view the full proposed text of LD 1203/SP 430 [pdf].

About Safeguard 
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow.  Website: www.safeguardproperties.com.

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties