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HomeMy WebLinkAboutResolutions - 2020.09.03 - 33624REPORT (MISC. #20324) September 3, 2020 BY: Commissioner Helaine Zack, Chairperson, Special Committee to Investigate the County Treasurer's Management of Property Tax Foreclosures IN RE: MR #20324 - BOARD OF COMMISSIONERS - ESTABLISH THE OAKLAND COUNTY MINIMUM FORECLOSURE STANDARD POLICY To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: The Special Committee to Investigate the County Treasurer's Management of Property Tax Foreclosures, having reviewed the above -referenced resolution on August 26, 2020, reports to recommend adaption of the resolution with the following amendment(s): 1. Amend the Title, as follows' "ESTABLISH THE OAKLAND COUNTY MINIMUM DELINQUENT TAX FORECLOSURE 64�44DARD POLICY 2. Amend the NOW THEREFORE BE IT RESOLVED paragraph, as follows: NOW THEREFORE BE IT RESOLVED the Oakland County Board of Commissioners hereby adopts the Oakland County Minimum Delinquent Tax Foreclosure Standard Policy. The purpose of this policy is to eliminate or significantly reduce foreclosures for delinquent property taxes in amounts less than $1,000 (excluding interest, penalty fee, and costs). In furtherance of this policy, the Board of Commissioners establishes the following standards and practices: a. Resources under the control or jurisdiction of the County of Oakland shall not be utilized in the pursuit of a foreclosure on residential or commercial property for delinquent property taxes in amounts below the standard designated in this policy. b. The Board of Commissioners charges the County Treasurer to develop and adopt a written policy stating the County of Oakland will work to withhold these properties from the annual foreclosure petition as a substantial financial hardship by utilizing installment payment plans or tax foreclosure avoidance agreements, as authorized by statute. c. At the judicial foreclosure hearing, the County of Oakland shall not object to a request from an owner of residential or commercial property that meets the standards of this policy to have the court withhold the property from foreclosure for 1 year, as authorized by statute. 3 Insert the following as the 2"d BE IT FURTHER RESOLVED' BE IT FURTHER RESOLVED this policy may be waived in the following circumstances: This policy does not prohibit the Treasurer from using resources to fulfill the statutory requirement under the Michigan General Property Tax Act to file a foreclosure petition annually with the circuit court. If a property is included on the annual foreclosure petition which would otherwise meet the standards of this policy, a city, village, or township within Oakland County may file a request with the Treasurer giving specific reasons why the property should not be withheld from the foreclosure process. The Treasurer shall honor the request if it is accompanied by an adopted resolution of the city, village, or township, if the request is received prior to February 1, and if the Treasurer is not otherwise required to withhold the property by statute. Adoption of a resolution by the Board of Commissioners. This policy shall not apply if the affected property owner does not take affirmative action on his or her own behalf to prevent the property from being foreclosed, such as entering into an installment payment plan, or appearing at the judicial foreclosure hearing to request a 1 year extension. 4. Delete the following BE IT FURTHER RESOLVED clauses: l a than three years (excl din interest penalty tee and ..GSC E EL Ec rl lq:t of --tax delinquency) unless expressly authorized by a separate re6elwt 9R appFeved by the Oakland CGURty Board of Commigg nners 9.E IT FYFITFIER RESOLVED ^ nt„ resource" rn. PUFPGSe s this GIlG inGludes the use Gf a s the following; 1 . County revenue in any account under the GGntFGl or jur sdiGtiGn Gf GaIdand Gounty� 2�e„�a 4. County c Any my pa legal counsel. Chairperson, on behalf of the Special Committee to Investigate the County Treasurer's Management of Property Tax Foreclosures, I move the acceptance of the foregoing report. Commissioner Helaine Zac,, District Chairperson, Special Committee to Investigate the County Treasurer's Management of Property Tax Foreclosures MISCELLANEOUS RESOLUTION. #20324 BY: Commissioners David T. Woodward, District #19; Robert Hoffman, District #2 IN RE: BOARD OF COMMISSIONERS — ESTABLISH THE OAKLAND COUNTY MINIMUM FORECLOSURE STANDARD POLICY To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS in 2013, the County Treasurer filed a petition seeking foreclosure on the property of Rafaeli, LLC for $8.41 and later sold it at auction for $24,500; and WHEREAS the Michigan Supreme Court issued a unanimous ruling in the Rafaeli, LLC, and Andre Ohanessian v Oakland County, and Andrew Meisner case declaring the County Treasurer's action was unconstitutional, when the County Treasurer foreclosed on Mr. Rafaeli's property for $8.41, selling the property at auction, and retaining all the proceeds in excess of taxes, interest, penalties, fees, and costs; and WHEREAS with MR #19246 the Oakland County Board of Commissioners declared opposition to "foreclosure for profit" and has long advocated for a change in state law banning such a practice; and WHEREAS it is in the interest of Oakland County that we establish a standard such that an $8.41 foreclosure never happens again. NOW THEREFORE BE IT RESOLVED the Oakland County Board of Commissioners hereby adopts the Oakland County Minimum Foreclosure Standard Policy. BE IT FURTHER RESOLVED the Oakland County Minimum Foreclosure Standard prohibits any county resource from being used to foreclose on a property located in Oakland County if the tax delinquency is less than $1,000 for more than three years (excluding interest, penalty fee, and costs s as a result of tax delinquency), unless expressly authorized by a separate resolution approved by the Oakland County Board of Commissioners. BE IT FURTHER RESOLVED "county resource" for the purpose of this policy includes the use of any of the following: 1. County revenue in any account under the control or jurisdiction of Oakland County; 2. County staff; 3. County property; 4. County contractors; 5. Any county paid legal counsel. BE IT FURTHER RESOLVED that this policy is effective immediately upon approval of this resolution. BE IT FURTHER RESOLVED that a copy of this resolution be forwarded to the County Treasurer, and the treasurers of every Oakland County city, village, and township. Chairperson, we move the adoption of the foregoing resolution. Commissioner David T. Woodward Commissioner Roee Hoffman District #19 District #2 Resolution #20324 August 6, 2020 The Chairperson referred the resolution to the Special Committee to Investigate the County Treasurer's Management of Property Tax Foreclosures. There were no objections. Resolution #20324 September 3, 2020 Moved by Gershenson seconded by Zack the resolutions on the amended Consent Agenda be adopted (with accompanying reports being accepted). AYES: Hoffman, Jackson, Kochenderfer, Kowall, Kuhn, Long, Luebs, Markham, McGillivray, Middleton, Miller, Nelson, Powell, Quarles, Spisz, Taub, Weipert, Woodward, Zack, Gershenson, Gingell. (21) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions on the amended Consent Agenda were adopted (with accompanying reports being accepted). I HEREBY APPROVE THIS RESOLUTION CHIEF DEPUTY COUNTY EXECUTIVE ACTING PURSUANT TO MCL 45.559A (7) STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on September 3, 2020, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court at Pontiac, Michigan this 31d day of September, 2020. ew'01-- Lisa Brown, Oakland County