volunteer attorney opportunities help fight neighborhood blight michael duffy, esq. legal aid of...
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Volunteer Attorney Opportunities
Help Fight Neighborhood Blight
Michael Duffy, Esq.Legal Aid of Western Missouri
920 Southwest BoulevardKansas City, Missouri 64108
(816) 474-9868Fax (816) 474-7575
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Abandoned Housing ActWhat is it?
MO Statute, §447.620 et al.—allows a nonprofit organization to acquire vacant, blighted house that meets the following conditions…
What are the conditions?Unoccupied for at least 6 months by a lawful occupantTax delinquentNuisance
Abandoned Housing Act
How It Works• Ground Work:
– ID properties that meet the AHA requirements (unoccupied, tax delinquent, nuisance)
– Conduct Property Research (Owner? Tax delinquency amount? Assessments?)
– ID rehabber to abate code violations, make property habitable & if possible, estimate cost to rehab
– Figure out who will pay costs associated with the lawsuit (rehabber? association?)
– Draft Petition (starts the process in court)
Abandoned Housing Act
Case Processing[Uncontested Cases]
Request Title Report [$200-$300/ 3-5 days] Avoid clouds in title, determine all owners necessary to sue, verify all
city assessments/liens File Petition/Suit with Court [$112, sometimes $0] Give Notice to Owners of Filing Suit
Service by Mail ($0); OR Personal Service ($30 - $50); OR Service by Publication ($200- $250)
Abandoned Housing Act
Case Processing[Uncontested Cases]
Do Rehab & File quarterly reports [cost & time varies]
Upon completion of rehab, move court for deed Court issues deed about three weeks after motion
Abandoned Housing Act
Keep in Mind• Time:
– filing to possession: 3 months (uncontested cases)
– filing to ownership: 6 – 7 months (uncontested cases)
• Costs: – High: $800 + City
Assessments/Liens/Delinquent Taxes/Rehab
– Low: $600 + City Assessments/Liens/Delinquent Taxes/Rehab
Abandoned Housing Act
• Break Down of Costs– Filing fee - $112– Service of Process - $0-$50-$250– Notice of Lis Pendens - $24– Title report -$200-$300 – Record deed - $24– Release Lis Pendens - $24– Rehab – $?
• [exterior/interior code violations, foundation, roof, windows, insurance during rehab, materials, labor, etc]
– Back taxes – $? – City Assessments – $?
• Weeds, trash, board ups, etc
Before
After
Legal Aid of Western Missouri Abandoned Housing Act Results
Approximately 110 lawsuits brought in past seven years
70% of owners/successors repair and occupy property
Approximately 20% nonprofit acquisition to repair and gain ownership
Approximately 10% still in negotiation or owners currently repairing
Abandoned Housing ActConsiderations
• Filing Fees– Who pays?
• Suit is filed in name of association (not rehabber) – Title would go to association– “Prenup”: contract between rehabber and association
• Rehabber to finance rehab• Rehabber to maintain builder’s risk insurance• Create detailed scope of work/rehab plan• Association to give title to rehabber upon Court Administrator’s
Deed• Legal Aid attorney represents association
• Damage or vandalism to property during rehab• Home doesn’t sell – renters? Who is stuck with the
property?• Owner can come back
– Would have to pay all expenditures back• Quarterly Reports
Advantages of the AHA Promotes property maintenance
Encourages surrounding homeowners to rehab and reinvest in their own property
Helps stabilize neighborhoods by remediating blight
Creates affordable housing and increases owner-occupancy
Gives neighborhoods leverage as owner must either reinvest in the property or lose it