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HomeMy WebLinkAboutORD 2014-126 2012-2014 JMZ�ICS k�!Y7 ,I Jipb COUNTY OF HAWAII STATE OF HAWAII BILL NO. 71 ORDINANCE NO.24 226 AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 5 OF THE HAWAII COUNTY CODE 1983 (2005 EDITION,AS AMENDED), RELATING TO REAL PROPERTY TAXES, LIENS, FORECLOSURES, AND NOTICE. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. The purpose of this ordinance is to reduce the number of years required to foreclose on a property for delinquent real property taxes from three to two years, thus allowing the County to sell the foreclosed property at public auction to recoup unpaid taxes, penalties, and various administrative costs in a timelier manner. This reduction in the holding period also decreases the period the property is left vacant thereby lessening the potential loss of value due to deterioration in its condition. Additionally, this ordinance relocates notice requirements previously placed in Section 19-38 into the appropriate Section 19-40, to ensure that all notice requirements are provided in a single location. SECTION 2. Chapter 19, article 5, section 19-38 of the Hawaii County Code 1983 (2005 edition, as amended), is amended to read as follows: "Section 19-38. Tax liens; foreclosure without suit [, notiee]. [All real pivPei4y on whieh a lien fef twies exists inay be sold by Way of for-eelesur-e without suit by the > and in ease any lien, > has existed thefeon for- tIffee years, shall be sold by the dir-eetor- at publie aidetion to the highest L.idde for- eash, to satisfy the lie together with all intefest penalties, „sty „a due or- inettfr-ed on aeeounl of the > lien, and sale, the suipitts, any, tE) be for- sales on &ieet4ion, after notiee published a4 least onee a week for- a4 least fouf stieeessive weeks immediately -prior- thereto in any newspaper- with a genefal eir-culation of at least Sixty thousand published in the State and any newspaper- of general eir-eulation published and distFibuted in the Counly. if the address of the ownef is known or- ea aseei4ained by due > > the dir-eeter- shall send to eaeh ownef otiee of the proposed sale by fegister-ed register-e inai1 with request for- return feeeipt. if the address of the ownef is unknown, the dir-eetor- shall send a natiee to4he ownef at the owner's last L,,.,w., address as shown on the r o-ds of the ,lepaFtnient „f finance. The notice shall be deposited in the niail at least fofty five days prioF to the date set faf the sale. The notiee shall also be posted for- a like period in at least thfee hl; ply .;th; the r,ty and f the !and °,l of the three ° ° stings shall be on the land.] (a) All real property on which any lien, or part thereof, for taxes levied pursuant to this Code has existed for at least two years may be sold by way of foreclosure without suit by the director or as otherwise specified in this Code. Such delinquent real property shall be sold by the director or the director's designated representative at public auction to the highest bidder, for cash, to satisfy the lien, together with all interest, penalties, costs, and expenses due or incurred on account of the taxes, lien, and sale. (c) The surplus funds from the tax foreclosure sale, if any, shall be rendered to the person(s) legally entitled to the surplus funds resulting from the sale. The sale shall be held at any public place proper for sales on execution of the foreclosure." SECTION 3. Chapter 19, article 5, section 19-40 of the Hawaii County Code 1983 (2005 edition, as amended), is amended to read as follows: "Section 19-40. [ tiee, foF of.] Notice; sale of foreclosed property without suit. [The notiee of sale shall eentain the nafnes of the per-sens assessed, the names e the present s (so faf as sh.,..,,, by the r eras of the dire.ter- and the 0r-ds ;f e„<, in the offiee of the assistant r-egistr-af of the !and eourt) the ehar-aeter- and amount of tax, and the tax year- or- > > and ehafges aeenied or- t, .1 t ., brief.1° pt;., of the p °..tom, SEC-r�{e-te the e °, to be sold, and the time ee—of Sale, and shall . the per-sons assessed, ai having ,.1.,;., ing to have a mortgage o other- l;°„ thereon o any legal of right,eqttitable title, > that unless the tffli, with all interest, penalties, eosts, expenses, payment, is paid bef0fe the time of sale appointed, the pr-opet4y advertised for- sale will be sold as adveftised. The- dir-eetof may inelude in one advertisement of notiee of sale notiee of for-eelosure upon more than one reel-of real prepel4y, whether- of owned by the same per-son an-, ,>h°th°r of net the liens ° for-the same tax year- years.] (a) The notice of tax foreclosure without suit and tax sale shall contain: The names of the persons assessed; The names of the present owners as shown by the records of the director and the records if any of the assistant registrar of the land court; The character and amount of tax and year or years taxes are delinquent, with interest, penalties, costs, expenses, and charges accrued or to be accrued to the appointed date of sale; A brief description of the property The time and place of the sale; and A warning to the persons assessed, and all persons having or claiming to have any mortgage or other lien thereon on that property or any legal or equitable right, title, or other interest in the property, that unless the tax, together with all interest, penalties, costs, expenses, and charges accrued to 2 the date of payment, is paid before the appointed time of sale, the property advertised for sale will be sold as advertised. The procedure for noticing a tax foreclosure without suit and sale shall be as follows: Notice shall be published at least once a week for at least four successive weeks immediately prior to the sale in any newspaper with a e� neral circulation of at least sixty thousand published in the State and and newspapers of general circulation published and distributed in the County; If the address of the owner is known or can be ascertained by due diligence, including an abstract of title or title search, the director shall send to each owner notice of the proposed sale by registered mail, with request for return receipt. If the address of the owner is unknown, the director shall send a notice to the owner at the owner's last known address as shown on the records of the department of finance; tD The notice shall be deposited in the mail at least forty-five days prior to the date set for the sale; and The notice shall also be posted for a like period in at least three conspicuous public places within the County and if the land is improved, one of the three postings shall be on the land. (c,) The director may include in one advertisement of notice of sale the notice of foreclosure upon more than one parcel of real property, whether or not owned by the same person and whether or not the liens are for the same tax year or SECTION 4. Material to be repealed is bracketed and stricken. New material is underscored. In printing this ordinance, the brackets, bracketed and stricken material and underscoring need not be included. SECTION 5. Severability. If any provision of this ordinance or the application thereof to any person or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this ordinance are declared to be severable. SECTION 6. This ordinance shall take effect upon its approval. INTRODUCED BY: COUNCIL MEMBER, COUNTY OF HAWAII Hilo , Hawai`i Date of Introduction: October 15, 2014 Date of 1 st Reading: October 15, 2014 Date of 2nd Reading: November 7, 2014 Effective Date: November 26, 2014 3 REFERENCE Comm — 261.=_ OFFICE OF THE COUNTY CLERK County of Hawaii Hilo, Hawaii Introduced By: Brenda J. Ford ROLL CALL VOTE Date Introduced: October 15, 2014 AYES NOES ABS EX First Reading: October 15, 2014 Eoff X Published: _N/A Ford X Ilagan X REMARKS. Kanuha X Kern X Onishi X Poindexter X Wille X Yoshimoto X Second Reading: November 7, 2014 5 3 1 0 To Mayor: November 18, 2014 Returned: November 26 , 2014 ROLL CALL VOTE Effective: November 26 , 2014 AYES NOES ABS EX Published: December 6, 2014 Eoff X Ford X REMARKS: Ilagan X Kanuha X Kern X Onishi X Poindexter X Wille X Yoshimoto X 6 2 1 0 1 DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council published as indicated above. COUNCIL CHAIRPERSON Approved/Disappro ed this day of 20_. SNTY CLERK Bill No.: 71 (Draft 2) MAYOR, COUNTY OF HAWAII Reference: C-261 . 3/FC-195 Ord No.: 14 :126