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Volunteer Attorney Opportunities Help Fight Neighborhood Blight. Michael Duffy, Esq. Legal Aid of Western Missouri 920 Southwest Boulevard Kansas City, Missouri 64108 (816) 474-9868 Fax (816) 474- 7575 mduffy@crn.org. O. Abandoned Housing Act What is it?
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Volunteer Attorney OpportunitiesHelp Fight Neighborhood Blight Michael Duffy, Esq. Legal Aid of Western Missouri 920 Southwest Boulevard Kansas City, Missouri 64108 (816) 474-9868 Fax (816) 474-7575 mduffy@crn.org
O Abandoned Housing Act • What 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 occupant • Tax delinquent • Nuisance
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