CHULA VISTA LEVIES $29,000 FINE FOR MISSING PADLOCKS
INDUSTRY NEWS, REAL ESTATE LEGISLATION, REAL ESTATE PRACTICE, SHASTA COUNTY
November 14th, 2008
Cities across California are wrestling with the problem of blighted homes in foreclosure and have, in some 
places, passed ordinances with a fine system to punish banks that are foreclosing on homes if they ignore the law.
A speaker at a real estate conference I attended recently detailed the case of a home tagged by the city of Chula Vista for being unsafe because the home was unsecured. In order to secure the home, 3 padlocks were needed to lock a shed, the garage door and another door on the property to be in compliance with the new ordinance. Failure to comply allows the city to levy a fine of $1,000/day until the deficiencies are remedied.
Apparently, the padlocks were not installed promptly and nearly 1 month lapsed and fines accumulated to $29,000. The bill was sent to the real estate agent that had the home listed for sale. The agent forwarded the bill to the bank, which promptly returned the bill to the agent and told the agent to take care of it. Chula Vista will place a lien on the property to collect their fine for the missing padlocks. So far, the city has collected more than $200,000 in fines and has nearly $700,000 in fines still outstanding. This ordinance has created a financial windfall for Chula Vista!
Redding City Council pondered a similar law to address blighted properties that are in foreclosure or have been taken back by banks. I believe it is unfair to penalize a bank because a homeowner defaults on a loan. The bank doesn’t want to foreclose, the bank does not want to own the property and many homes in and around Redding that are owner occupied and not in foreclosure look worse than those being auctioned. Why pick on the banks? Do we want banks to stop making loans in our area? If any city passes a law addressing blight, enforce the law in an evenhanded manner against all properties, whether they are rentals, owner-occupied homes or foreclosures, in my opinion.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
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