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.
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].
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.