Neighborhood eyesore: A tale of red tape, miscommunication and hopefully redemption
Samantha Banda poses for a portrait next to her neighbor's burned-out house. It's been nearly three years since the incident, and Banda is trying to get the owners of the house to fix it. "It's been long enough, " said Banda.
Jeff Sainlar I AnnArbor.com
The story of 2434 Pinecrest over the past three years, contains a number of themes: Sadness. Irony. Frustration.
But its owner, neighbors and city officials hope that the burned-out shell of a three-bedroom house on the quiet eastside Ann Arbor street soon will speak more of redemption.
All expect that the home -- destroyed by fire on Dec. 21, 2008 and left to languish -- can finally be demolished, following a series of recent meetings and conversations that cut through lingering red tape and inconsistent records.
That’ll mean the end to nearly 3 years of waiting for the conclusion to a situation that neighbor Samantha Banda calls “completely unacceptable.”
For two years, the smell was obvious. More recently, about a dozen raccoons have called it home. And she’s had to call police for trespassers in the backyard.
“I’ve got a burned-out house next door to me,” she said. “… It’s extremely frustrating.”
Ralph Welton, the city’s chief development official, says Ann Arbor soon will have a condemnation process for buildings like this -- uninhabitable but still standing as a public nuisance -- that won’t need to rely on lengthy court battles.
The backside view of the neighbor's burned-out house. It's been nearly three years since the incident and Banda is trying to get the house changed.
Jeff Sainlar I AnnArbor.com
“It should go a lot quicker,” Welton said.
Banda will welcome the change to her street. She and her husband, Daniel, have lived next door to 2434 Pinecrest for 15 1/2 years, and they’ve been waiting for three years for the removal of the visual reminder of the fire.
The home had been a rental, home to two women, who Banda said “just about lost everything in the blaze.” That included their dog, which firefighters tried valiantly to save, she added.
The home had been owned by Johnson Investments, based in Key West, Fla. Jan Hodge, a principal, is believed to have inherited the property. At the time of the fire, it was valued at about $140,000.
That was cut in half after the fire, with the city now assessing its value at about $70,000, most of that representing the value of the land.
That land is what the property’s next owner considered worth the investment when he bought it in November 2009 for $20,000.
Michael Coghlan, who lives near Saline and serves on the Ann Arbor State Bank’s Board of Trustees, is that owner, purchasing the burned-out home on Nov. 24, 2009, about 11 months after the fire.
The deal happened because the attorney of the owner approached him. The owner couldn’t afford to repair the house and had to get rid of it. Coughlan envisioned buying it, demolishing it and eventually building another house -- three bedrooms, 1.5 baths, something comfortable that fits the neighborhood -- on the lot.
He hired a contractor. He got the utilities shut off from the street. He wanted to submit building plans.
The charred and boarded-up house didn’t change. And everyone who’s passed the home over recent years may have had the same concerns as Banda: “I don’t know why the city doesn’t ride these people a little harder,” she said.
But that’s where the situation veers into irony, and Coghlan becomes another voice in the tale who expresses frustration.
While the house stood silently on Pinecrest, bearing fading “gas cut” signs and the only official activity seemed to be trimming the lawn, the house actually has been in focus for both the city and the owner.
On the city’s side, they’ve sent letters about unpaid water bills and the need to demolish the house.
Problem is, they went to the wrong person -- until about two weeks ago.
And that’s where irony bleeds into frustration for Coghlan, too, since he’s launched multiple attempts to move forward on the demolition over the last two years.
The story of 2434 Pinecrest isn’t one about an inattentive owner, or one who ran out of money or even one who was gaming the system until the economy rebounded.
It’s one of red tape and missed opportunities to connect the people who wanted to solve the problems at the house with the ones would could clear the way.
Early on, while neighbors wondered what would happen to the house, Coghlan learned about litigation against the previous owner. The deal closed without the title company flagging a water meter that had been damaged in the fire, months before he bought it.
“They said I owed $850,” he said, on a debt that he felt should have been covered before his purchase. That took months to resolve.
He paid the property taxes, but his contractor learned about a back tax bill that prevented a permit.” Sidewalk repair work had, at some point, been added to the bill.
“My contractor and demolition guy have been engaged for 14 months,” Coghlan said. “They’ve been to the city five times with paperwork.
“Every single time there’s a roadblock.”
By the end of November, Coghlan’s frustration peaked.
“I did this as a favor -- and it might sound corny -- for an old lady in Florida, and it turned into a quasi-nightmare for me,” Coghlan said. “I spent so much more time on this than I ever envisioned.”
The trigger in November came right after Thanksgiving when a letter from city officials arrived, giving him until Dec. 7 to get the work done.
The inaction at house, it became clear, had not been ignored by the city, either.
To Coghlan, it was his first communication. To the city, it was a final warning.
Coghlan didn’t understand why he was challenged over 30 months of inactivity, when city assessor records showed he didn’t even own the house for that long. His attorney had been giving the city updates early in his ownership, and no letter was sent to the lawyer, either.
That letter with the Dec. 7 deadline set off a chain of events that’s resulting in solutions.
Coghlan got an audience with Welton, the city’s building inspector. They learned that not all city records had been updated after the sale. Warnings had gone to the previous owner’s address, even after the sale, and a $118 water bill in the water utilities department - also not in his name, but affecting the property - kept staff in the building department from issuing permits.
“There was no way to know there was this water bill out there,” Coghlan said. “At the end of the day, that held up this whole thing.”
But, he stresses, the pair got it done. And the demolition contractor is just waiting for final inspections on the utility shutoffs.
The house, he said, will come down. As he’s planned for years now.
It’s a move that will affect Banda. She said she’s never wanted anything but the person who owned it to remove the eyesore.
“We live in a lovely neighborhood,” she said. “I love it. It’s kind of sad that some things are allowed the fall through the cracks.”
And the demolition of the house speaks to something important for the community, too. This is a tale of misaligned municipal records, but a citywide solution accompanies it in the new measures that building department staff will be able to use when vacant eyesores infect neighborhoods.
“Hopefully, this will be the last time we got a lot of these sorts of complaints,” said Welton, the city’s building inspector.
Even so, he estimates a half-dozen other structures in the city will require fast action due to their condition. They’re the types of buildings that, previously, could take many years to demolish through the courts.
The payback, at least one elected official said, will be felt by all taxpayers.
“Neighborhood deterioration is (prevented) by maintenance of buildings and structures,” said City Council Member Steve Kunselman. “If they start to deteriorate, there’s less incentive for owners and occupants to do the same. It creates a spiraling downward of property values.”
Paula Gardner is news director of AnnArbor.com. She can be contacted by email or followed on Twitter. Sign up for daily newsletters, including 3@3 headlines.
Comments
Pooh Bear
Mon, Dec 19, 2011 : 3:50 p.m.
YpsiLivin I agree with you 100% I am a landlord other then Ann Arbor and I live in the same town. I make sure my tenants are keeping the property up or they can find a new place to live. I am also in contact with my tenants to make sure everything is in good order at the rental property. My daughters landlord never returns calls or fixes things, but if rent is n paid on the 1st of the month he has no problem calling.
Pooh Bear
Wed, Dec 14, 2011 : 12:30 p.m.
How much does these Ann Arbor City employees get paid? Ho! and how much pension? I can tell you I surely would not have a job if I did this kind of work!!!!!!!!!!!
Monica R-W
Tue, Dec 13, 2011 : 8:42 a.m.
Thanks for this story Paula. Great reporting! Hopefully the end result will go a little quicker now for Ms. Banda with the city removing this 'house' from the neighborhood.
Blue Eyes
Mon, Dec 12, 2011 : 9:11 p.m.
The Building Dept did have a process for handling these cases - then Roger Fraser reorganized the City and people were hired to run the building dept without knowing how and why things were done. Now Ralph Welton wants to sound like the great savior who's finally come up with the right answer. Too bad he didn't ask how things were done instead of trying to recreate an existing wheel. By the way, he's been lobbying for his own "administrative court" since he came to the City. More beauracy and another demi god!
Vivienne Armentrout
Mon, Dec 12, 2011 : 6:52 p.m.
A somewhat similar story was recently told on the Ann Arbor Chronicle: <a href="http://annarborchronicle.com/2011/11/16/in-it-for-the-money-occupation/" rel='nofollow'>http://annarborchronicle.com/2011/11/16/in-it-for-the-money-occupation/</a> It seems that city officials (elected and otherwise) should study this issue (abandoned houses) and come up with some guidelines and potential fixes. Obviously it has real impact on neighborhoods. It will ultimately affect the appeal of Ann Arbor as a community, which our leaders have been careful to cultivate.
Sallyxyz
Mon, Dec 12, 2011 : 6:43 p.m.
"Coghlan got an audience with Welton, the city's building inspector. They learned that not all city records had been updated after the sale. Warnings had gone to the previous owner's address, even after the sale, and a $118 water bill in the water utilities department - also not in his name, but affecting the property - kept staff in the building department from issuing permits. 'There was no way to know there was this water bill out there," Coghlan said. "At the end of the day, that held up this whole thing.' " This really is totally unacceptable. Records weren't updated after the sale? Warnings were sent to the wrong owner? No one knew about an outstanding water bill? I find this hard to believe! "Hopefully, this will be the last time we got a lot of these sorts of complaints," said Welton, the city's building inspector. That's all the city inspector has to say about this debacle? No apology for the total ineptness and stupidity of the chain of events that were not the fault of the current owner? No one is taking responsibility for what happened. city records were not updated. Do records update themselves? Who was responsible for doing this? No one realized there was an outstanding water bill on the property? Where is the person who is responsible for billing in the water department? I'm still astounded by the complete lack of personal responsibility on anyone's part in the city administration for this debacle. A bureaucracy is not a person-less enterprise, it is run by people, and in this situation, everyone involved dropped the ball along the way and no one is admitting any personal responsibility. And we wonder why kids today don't accept responsibility for their actions.
Jim Osborn
Mon, Dec 12, 2011 : 6:41 p.m.
Blaming absent landlords is not the solution. Even when this property was sold to a local guy, things did not change. I have a good friend who manages a single family home for another friend who used to be a long time Ann Arbor resident, but her job took her out of state. This friend used to live in this home that is now rented. The 2 friends actively manage the house, one from afar, selecting tenants, making repairs, and other decisions. When one tenant moved out and it was discovered that major repairs were needed to be made, she and her husband came up for a long weekend, he more than once. They wanted to find nice tenants for their former neighbors. This home is an investment for their future, and why would they want it to fall into disrepair? Any of these items or events are bad for the home, neighborhood, and eventual rental income. A home in a blighted area brings a lower price, or can't be rented. Living in Ypsi, you must see examples of this in some sections, which is very unfortunate, as Ypsilanti has some nice areas. All of your red-tape examples just lead to higher costs that are then passed on to renters, or landlords pull out of the market.
djm12652
Mon, Dec 12, 2011 : 6:40 p.m.
How does one have rental property and no insurance? With a2's exhorbitant rental rates you'd think it would be a prudent expense to have. I have renter's insurance to cover my personal property and wouldn't live anywhere there was such a lack of common sense.
Mark
Mon, Dec 12, 2011 : 5:14 p.m.
To see this and then recall the brouhaha about the wrong style of fence on the Old West Side shows how bizarre Ann Arbor can be.
racerx
Mon, Dec 12, 2011 : 4:37 p.m.
When the fire occurred, the water was likely shut-off from the curb-box (device in the yard that cuts the water off leading into the home from the pipe in the street) at that time and a final water bill should had gone to the current name on the water bill. If that information was incorrect due to the new owner not putting the water bill into their name, then one can hardly blame the city. Also, if after the fire it was safe to enter the dwelling, that water meter would had been pulled and the final reading verified to create the final water bill. When a property sells it is the responsibility of the title company to provide a clear title. This includes final water bills and who the actual/previous owner is/was. This should had occurred when Mr. Coghlan brought the property; if he purchased the property legally. Water bills become liens against the property if unpaid. Though the demolition of the house in this neighborhood is not surprising. It is a forgotten part of the city that isn't given much attention to primarily due to the values of the homes. If this occurred in oh lets say Ann Arbor Hills, there would never had been a news story about it. Funny, as someone has mentioned, the city's property at 415 W. Washington has been vacant for how long? It's been an eyesore for at least a decade, but the city will find the time to move against this property while "theirs" just sits there. Incredible.
Tru2Blu76
Mon, Dec 12, 2011 : 3:53 p.m.
Sounds like Tales from the Soviet Union to me - or some updated version of Pre-Revolution France. As for the simplistic "let's reduce government size" mantra: such situations are solved by organizational streamlining - not by eliminating government(s). There's plenty of expertise able to take care of simplifying and streamlining such procedures. And let it be noted that market efficiency has been degraded by businesses anxious to hide behind legal boiler plate clauses and tricks played on consumers, etc. So there are no innocent parties in either government or among the so-called "heroes" of the Free Market System. For that matter, we could do very well to force an end to the legal profession's devotion to making their jobs bloated with obfuscation for the sake of more billing hours. Lawyers become legislators and judges: then proceed to "enhance" their income via a mountain of obscure and unjust laws. In this particular case: the fire department should report to the city building officials what the state of the property is after a fire. Building inspectors should investigate and file a report. And especially: all property records must be fully vetted and up to date so that decisions can be made about who's responsible for remedial measures. The responsible party can be given some leeway in terms of getting insurance payments or financing but that shouldn't be a matter of years but a few months at most. Utility providers should be notified immediately if the building is uninhabitable and should be responsible for prompt termination of services - confirming that to the owner and to the appropriate central (co-ordinating) public office.
Brian
Mon, Dec 12, 2011 : 3:28 p.m.
This reminds me on another house on Pinecrest. About 7 years ago, 2401 finally found an owner willing to renovate and turn a blighted house into one of the nicest homes on the street. Before that, the house sat vacant for about 8 years. No one paid taxes, no one (except the city) took care of it. The owners refused to sell even in a very hot housing market. It took front page stories like this, and the neighbors going in front of City Council to demand action, that finally made the owners see that their time was up and that they needed to give up their hold on the property. When some neighbors and I began to do our reseach on this house, we learned a few interesting things: City of Ann Arbor had no laws on the books that allowed them to address abadndoned house like they could in a city like Detroit, the government could not take the house away due to not paying taxes because the County kept allowing an extension due to hardship (when we contacted the County tax assesor at the time - she had no idea that no one had lived there for years or that the owners also owned the Ypsi-Arbor bowl - she bought into the hardship story and never checked the basic facts), homes like this on others cost the City hundreds of thousands every year due to non-tax payment and upkeep. It isn't always the City bureacrates fault - they can only work witin the ordanances that the Council passes. City Council is the one that needs to pass the ordinances that allows the City staff to take action. I also agree with some of the comments that the City needs to set priorities. They had the time an energy to walk the sidewalks of Pinecrest and send an individual survey, and nasty warning not, to each property owner, but they can't make dealing with blighted homes a priority.
jns131
Mon, Dec 12, 2011 : 3:21 p.m.
What I find interesting is the fact that this on line newspaper reported another burned out house in Ypsi township and told the neighbors I think it was, that the house will come down if the owners do not do something about it within a certain time frame. More like you do it now or we will. Ann Arbor is a broken system that needs fixing because if Ypsilanti and Detroit can get houses demolished within a year why can't Ann Arbor? Every time I drive down this one street in Detroit? 5 more houses are gone. I guess Ann Arbor board members are more involved in City Place then any where else.
Monica R-W
Tue, Dec 13, 2011 : 8:53 a.m.
Typing to fast correction.... "....Their neighbor to the EAST", not West." Thanks!
Monica R-W
Tue, Dec 13, 2011 : 8:51 a.m.
Jns131, Ypsilanti Township Board of Trustees and their attorney, Doug Winters, are doing an excellent job in this awful economy going after property owners leaving homes in a neighborhood, like this one described above. Do they get all of them removed as quickly as the residents would like? No! Heck, the 'owners' of former Liberty Square actually have the nerves to take our Township to court over that property. No one can live there. These buildings need to come down or be revamped a.s.a.p. At least our Township Board are trying hard, to get this property removed, bulldozed and out of our eyesight. Maybe Ann Arbor could take a lesson or two from their neighbor to the West on this one. Just saying.
outdoor6709
Mon, Dec 12, 2011 : 3:02 p.m.
Maybe the city could call this a art project then city council would care.
hut hut
Mon, Dec 12, 2011 : 2:52 p.m.
It's not as easy as you think to determine who actually owns a property in order to take legal action such as this Deeds are recored at the County Clerks office. Tax Assessors records at kept at the city. The two computer systems can't "talk" to teach other. Who pays the taxes and who owns the building are not necessarily the same people. A few unscrupulous property owners are particularly adept in covering their tracks to avoid the authorities. The real problem is that previous City administrations, the City Attorney's office, Judges and Council have NEVER taken anything but a cursory interest in pursuing scofflaw property owners and finding legal recourse in dealing with dangerous and abandoned buildings. But out up a fence or something, then it's another matter. As far as enforcement of the law, the City has always taken the path of least resistance. Going after the low hanging fruit is easy and cheap. Hammer the little guy and the folks who try to follow the rules, let the big boys who can make a big stink off the hook. Frankly, the City Attorney's office is as much to blame as anyone. They're also non union, overstaffed and overpaid. In my opinion.
hut hut
Mon, Dec 12, 2011 : 2:31 p.m.
How long has that tiny, old, long abandoned gas station been sitting on North Main?
hut hut
Mon, Dec 12, 2011 : 2:29 p.m.
The City government has been incredibly ineffective in dealing with abandoned buildings. If fact it's less than ineffective. It's non existent. There has NEVER been any support whatsoever on this issue from the City Attorney's office, the administration or Council. Yet we argue over public art and spend millions on it. SHAME!
Go Blue
Mon, Dec 12, 2011 : 2:26 p.m.
Well, well, well. No surprise here. City can give approval in record time to demolish an entire block of historical homes that are a true piece of Ann Arbor history. But they can't give approval for a burned out property that clearly needs to be demolished. The government of our fair city is beyond dysfunctional. Its clear the most important things are benefits, lunch hours, days off and pay raises with actual job responsibilities taking a back seat if that.
jcj
Mon, Dec 12, 2011 : 2:24 p.m.
Coleman Young or Kilwame Kirkpatrick could have done things this efficiently! Now tell us how the city of Ann Arbor is so great to work with when it comes to building in this town. What a joke this cultural mecca has become!
jns131
Mon, Dec 12, 2011 : 3:22 p.m.
I agree. I just read that Mayor Bing told Detroiters sometime this year that 3000 homes were demolished and more on the way. I also just read that because of this? Detroit is becoming a green city again.
towny
Mon, Dec 12, 2011 : 2:23 p.m.
Left hand does not know what right hand is doing. Interesting how city officials try to make themselves look blameless in there dealings on this house. But, you do something wrong and they act like they are god. City should be ashamed how they have handled this and there is just as many city dealings like this that you do not hear about. Some one should be fired. If privately operated company's where run like government they would be bankrupt. Some things never change.
Dog Guy
Mon, Dec 12, 2011 : 2:20 p.m.
Comments here include many hateful, hurtful attacks on alleged bureaucratic incompetence. None recognizes the bureaucrats' need for little practical jokes to pass the idle hours. The charge of incompetence is refuted by demonstrated excellence in collecting pay, benefits, and pensions with benefits. We should be proud of our world-class public servants.
hut hut
Mon, Dec 12, 2011 : 10:27 p.m.
A fish rots from the head down. It's the lack of leadership and their attitude that workers are worthless by administrators in City hall and not the attitude of front line workers. City Hall has an attitude that the Managers are kings the workers peons unable to think and act for themselves.
Obediah
Mon, Dec 12, 2011 : 2:19 p.m.
I live a few doors down from this house---and a few doors down from ANOTHER ABANDONED HOUSE ON PINECREST (2372 Pinecrest)! That one wasn't burned out, it just has a large blue tarp on the roof to keep the rain & snow out. I have often wondered what was happening with the burned out but quite frankly the other abandoned house bothers me more. How does the city have time to worry about sidewalk repairs and crosswalk ordinances, but absolutely no concerted effort to rid the city of blight. It's embarrassing to entertain and try to explain all the abandoned house on Pinecrest. The proud homeowners in the area are powerless for the most part and the rental properties attract all the wrong people when they drive down the block and see all sort of abandoned housing.
YpsiLivin
Mon, Dec 12, 2011 : 5:08 p.m.
Why does this come as a surprise to you? More than 25% of the homes between 2300 and 2500 Pinecrest in Ann Arbor are owned by ... (wait for it) ... absentee landlords! This is why absentee landlords should be held to higher standards.
Tony Livingston
Mon, Dec 12, 2011 : 1:45 p.m.
Yes, this sits for years. But try being a landlord with peeling paint in your house. The city will knock you down in no time. Another great example of the ineptness and wrong priorities of city hall. But, remember. Ann Arbor voters just approved a new tax for themselves to give this city hall more money and more authority for sidewalks.
motorcycleminer
Mon, Dec 12, 2011 : 1:24 p.m.
" You can't fix stupid " Ann Arbor , is just another fine example of the " tail shaking the dog " political bureaucracies that an ignorant and uninformed electorate have allowed to take over from common sense and reason..when it comes to personal pet projects the skys the limit ( gee lets buy more property 20 miles from here ) but when it comes to things that make a difference like bridges , roads ,sewers or just tearing down eyesores and blights...boy the wheels of the bureaucrats drags like the emergency brake is on ..granted this is nothing new but the current crop has honed it to a fine art...
grye
Mon, Dec 12, 2011 : 1:21 p.m.
Sounds like a data issue. The city should have one database for property ownership and billing of all utilities, permits, taxes, etc. By having one software performing all functions, the common datapoint would be the homeowner. Change once, it affects all other aspects associated with the property.
grye
Mon, Dec 12, 2011 : 6:02 p.m.
There would still need to be a common datapoint that would ensure the property owner information is consistent between the different functional systems.
racerx
Mon, Dec 12, 2011 : 4:25 p.m.
In a perfect world this might work. However, due to the large amount of rental properties in the city, when tenants move in the water bills are put into the tenants name and not the owners. It is rare that the owner would pay for water utilities for their tenants.
hut hut
Mon, Dec 12, 2011 : 3:40 p.m.
The last time I used the County Clerks system is was incredibly difficult. The County and City software systems are incompatible and cannot "talk" to each other.
SonnyDog09
Mon, Dec 12, 2011 : 3:16 p.m.
The City and County computers can't talk to each other. Is it physically impossible for the computers to talk (can't), or is it something that the government agencies would rather not do (won't). I'm always amused when people use "can't" when they really mean "won't".
hut hut
Mon, Dec 12, 2011 : 2:35 p.m.
Property ownership records are kept by the County. Unscrupulous property owners occasionally try to make it hard for authorities to figure out who actually owns a property. The City and County computers can't talk to each other.
SonnyDog09
Mon, Dec 12, 2011 : 1:29 p.m.
Rather than one ginormous database, interoperability between the various systems would be better. That would keep separate systems, but allow data to be exchanged.
zax
Mon, Dec 12, 2011 : 1:18 p.m.
too bad that the house wasn't next door to city officials. I think it would have been dealt with much sooner.
Craig Lounsbury
Mon, Dec 12, 2011 : 1:11 p.m.
"Ralph Welton, the city's chief development official, says Ann Arbor soon will have a condemnation process for buildings like this -- uninhabitable but still standing as a public nuisance -- that won't need to rely on lengthy court battles. " The irony is too funny. Tell me Ralph, will you use this process to tear down the city owned building at 415 W Washington?
YpsiVeteran
Tue, Dec 13, 2011 : 5:48 a.m.
Based on what's reported in the article, had the new condemnation process been in place, it's likely the city would have torn down the house without the current owner's knowledge, then tried to bill him for it even though they failed to maintain accurate records of the ownership transfer and failed to notify him of their intent to demolish. Think about how long THAT court battle would have taken, and how much money it would have cost the city.
YpsiLivin
Mon, Dec 12, 2011 : 12:52 p.m.
I think one of the real problems this story underscores is that of absentee landlords who hide behind "corporations" to collect a rent check but are absolutely incapable of taking care of the properties they've left behind. The city should be able to levy a special tax on rental properties to address issues like unpaid taxes, water bills, blight/abandonment and use the tax proceeds to clean up the messes that legitimately belong to these incompetents. Absentee landlords should be held to a higher standard than landlords who still reside in the area.
Silly Sally
Tue, Dec 13, 2011 : 12:49 p.m.
YpsiLivin sure hates landlords. I'f never rent to her or him. Too difficult, for sure. Now the facts .1) Ann Arbor City's red tape kept the new owner from gettng the building permits needed to proceed. 2) unpaid taxes are collected during a sale. That is what a tax lien is for. THe silly city was so disorganized that it failed to do so. 3) Everyone should be held to the same standard, no higher or lower. (OK, an opinion) 4) only incompetent was NOT the original landlord, she incurred a BIG loss after selling it if she had no insurance something we do not know. The incompetent was City Hall for failing to issue building permits after almost 2 years. 5) A " special tax on rental properties to address issues like unpaid taxes" This is circular. Taxes should be the same for all, and PAID. If not, a tax lien is done, and if ignored, the property can be sold at auction or the money collect when the property is sold. Opinion - The city should requird that any boarded up homes have the plywood painted an attractive color if it is to remain for more than a month.
YpsiLivin
Tue, Dec 13, 2011 : 12:34 p.m.
Jim Osborne, Your examples/observations of how your friends manage their rental properties does not support your assertion that absentee landlords in general take care of their rental properties. Clearly, the burned-out, foreclosed, neglected and abandoned properties along Pinecrest strongly suggest otherwise.
Jim Osborn
Tue, Dec 13, 2011 : 4:11 a.m.
oops, 2 other friends who are married couples ownd rental homes in Ann Arbor...
Jim Osborn
Tue, Dec 13, 2011 : 4:10 a.m.
YpsiLivin says, "Your one anecdotal example doesn't constitute "fact." So I'm being called a liar. Nice. My friends actually DO own a rental house. Actually 2 other married couples also are landlords in Ann Arbor. Ypsiliving said, "2434 BURNED three years ago and the owner did nothing to restore the home. Those are all facts…" The article clearly said, "It's one of red tape and missed opportunities to connect the people who wanted to solve the problems at the house with the ones would could clear the way…. Coghlan said. "They've been to the city five times with paperwork. "Every single time there's a roadblock."
YpsiLivin
Mon, Dec 12, 2011 : 9:36 p.m.
Jim Osborne, Your one anecdotal example doesn't constitute "fact." It's a fact that along that particular stretch of road, more than 1/4 of the homes are not occupied by their owners. Pinecrest residents have cited several examples of abandoned, neglected or foreclosed houses along their street. 2434 BURNED three years ago and the owner did nothing to restore the home. Those are all facts, which you've conveniently ignored. It's questionable whether the burned structure was even insured. Would you like to live next door to a rental property? Between rental properties? Between rental properties where the landlord(s) were interested in collecting the rent check but weren't necessarily so interested in keeping the property maintained? Next door to a chronically vacant property? A burned-out, abandoned structure? While not all absentee landlords blight the neighborhoods in which they operate, many do. The municipalities need to take steps to ensure that they can take control of blighted properties and force the owners to rehabilitate and return damaged houses to good, safe condition or demolish them - and not at taxpayer expense. Living in a neighborhood with a growing number of rental properties, I can tell you that absentee landlords have done nothing to enhance the stability, value and desirability of our neighborhood. The reality is that not all absentee landlords want to find good neighbors for their properties. The reality is that not all absentee landlords fix damage caused by tenants, address the maintenance issues of their properties, and function like responsible business owners and community members. Many absentee landlords are only marginally better than scrappers, and if increasing the accountability for absentee landlords is "too much hassle" for the careless ones, then we and our neighborhoods are all better off for that.
jcj
Mon, Dec 12, 2011 : 8:38 p.m.
@YpsiLivin "On the city's side, they've sent letters about unpaid water bills and the need to demolish the house.Problem is, they went to the wrong person' Seems to me the city should be able to determine WHO owns a house in their jurisdiction! "They learned that not all city records had been updated after the sale" Who is responsible for updating the CITIES records? "This is a tale of misaligned municipal records, but a citywide solution accompanies it in the new measures that building department staff will be able to use when vacant eyesores infect neighborhoods." There will ONLY be a solution IF city employees do their job!
Jim Osborn
Mon, Dec 12, 2011 : 6:39 p.m.
YipsiLivin, Wow, you couldn't be more wrong or ignorant of the facts. I have a good friend who manages a single family home for another friend who used to be a long time Ann Arbor resident, but her job took her out of state. This friend used to live in this home that is now rented. The 2 friends actively manage the house, one from afar, selecting tenants, making repairs, and other decisions. When one tenant moved out and it was discovered that major repairs were needed to be made, she and her husband came up for a long weekend, he more than once. They wanted to find nice tenants for their former neighbors. This home is an investment for their future, and why would they want it to fall into disrepair? Any of these items or events are bad for the home, neighborhood, and eventual rental income. A home in a blighted area brings a lower price, or can't be rented. Living in Ypsi, you must see examples of this in some sections, which is very unfortunate, as Ypsilanti has some nice areas. All of your red-tape examples just lead to higher costs that are then passed on to renters, or landlords pull out of the market.
5c0++ H4d13y
Mon, Dec 12, 2011 : 4:35 p.m.
Either way the city doesn't have to trip wire every permit to move forward and send the notices to the wrong person. Things like unhook permits and demo permits should not be held up. It's obviously not at all important to the city to clear this property and make that site safe and productive. Shame on city.
YpsiLivin
Mon, Dec 12, 2011 : 4:09 p.m.
jcj, Even if the City did have a clue about what was going on with the property, they still can't just waive liens placed on it. The liens should have been placed in a timely way and should have prevented the property from being sold in the first place. I'll grant you that. But had the original property owner(s) managed this property in a lawful and responsible fashion, none of this ever would have happened. Put the blame where it belongs.
YpsiLivin
Mon, Dec 12, 2011 : 3:56 p.m.
Tesla, Every single person who owns and resides in a house in Michigan signs papers to claim the residential homestead exemption. These papers are presented at the closing, and filing the form triggers the residential discount on the property taxes. It's not a secret. Properties are designated as either residential or commercial. Either it's primary residential - and eligible for the lower tax rate - or it's commercial (or non-primary, as in the case of a second home) and is taxed at the higher rate. There's no "max" tax rate. There are only two rates: lower and higher. A rental house is a commercial property. Why shouldn't it be taxed at the commercial rate? How is that a money grab? A rental property is a business and is treated as such. Why is that even remotely unfair? The tax proceeds from commercial properties go into the general fund of the municipality. They are not set aside to deal with problem landlords. They go to pay for municipal services. I'm saying that an absentee landlord should be required to pay a special assessment or buy a bond of sufficient size to guarantee that outstanding liabilities associated with the property (that would otherwise have to be paid by the taxpayer) will be addressed at no cost to the taxpayer if the business that owns the property fails for any reason. Then the taxpayers won't be on the hook for stuff like this.
Tesla
Mon, Dec 12, 2011 : 3:25 p.m.
It's well known in the industry but I don't think the average joe knows that landlords or pay increased rates on non primary residences, and that it's not just increased. It's increased to the max. I don't think it is done to set aside money for bogus landlords. It's just another money grab.
jcj
Mon, Dec 12, 2011 : 2:54 p.m.
@YpsiLivin "City departments can't simply waive liens that have been placed on properties" The city did not have a clue as to what was going on with this property!
YpsiLivin
Mon, Dec 12, 2011 : 2:28 p.m.
Ok, so from the public records I was able to find, the "company" that owned the house was actually called Johnson Street Holdings in Key West. JSH had two principals - a man and a woman. I presume they are somehow related, due to the size and nature of the company and the fact that the remaining owner "inherited" the property. (Property owned by unrelated individuals doesn't normally transfer through inheritance.) The man died in September 2009 - nine months AFTER the fire at the age of 88, leaving the woman as the sole owner. I'm going to go out on a limb here and say that an 88-year-old man living in Florida probably - in most circumstances - isn't ideally suited to take care of a rental property in Ann Arbor. The "heir" likely placed her name on the incorporation paperwork to satisfy Florida corporation law at the relative's request, but had no active/meaningful role in the "corporation" and saw no "duty of care" to ensure that the property was properly insured, maintained and restored after the fire. (After all, she never got the benefit of this arrangement; she only got the headache after it fell apart.) This is why absentee landlords should be held to a much higher standard. How many other rental houses in Ann Arbor are governed by this exact same circumstance, just waiting for Murphy's Law to come along?
Jim Osborn
Mon, Dec 12, 2011 : 1:54 p.m.
I wonder if the staff has been cut so much that they do not have the resources to be effective. Good people, and there are many at city hall, can only do so much if spread too thin by budget cuts (for the BIG DIG).
Tony Livingston
Mon, Dec 12, 2011 : 1:51 p.m.
City building inspectors are way too busy harassing those of us who take care of our properties to handle anything like that. Try being a landlord in this town and experience the outrageous fees and holier than thou attitudes of this department. Regardless of what you do, they will find something to force you to fix and charge you for coming back. It is the name of the game here. Nothing to do with serving the constituents. Everything to do with keeping their own machine running.
YpsiLivin
Mon, Dec 12, 2011 : 1:50 p.m.
The owner of the house when it burned was "a little old lady in Florida." She caused this problem by being unprepared to manage her burned-out Ann Arbor home. The water bill went unpaid, the taxes went unpaid, the sidewalk assessment went unpaid and generated liens on the property, which frustrated its sale and rehabilitation. So yes, I am advocating "more bureaucracy" to help the City deal with landlords who live elsewhere and have no problem cashing a rent check but can't take care of the property when something happens to it. The only incompetent in the entire mess was the original landlord who walked away from the property after it burned. City departments can't simply waive liens that have been placed on properties. If they did, the City would get stuck with the bills for everything from unpaid water and taxes to demolition. Jim Osborne - absentee landlords, who have only a tenuous connection to the properties they own - should be held to a higher standard than the landlord who lives in the community. Absentee landlords don't care who they rent to or what impact their tenants have on the neighborhoods they operate in. They don't care how properties degrade over time or the impact of rising crime generated by a transient resident population because they are not personally impacted by the blight they generate. They certainly should be held to a higher standard and they should be required to demonstrate that they have all the necessary insurance, management and financing in place to maintain the property under all circumstances. Which leads to the question, "Why wasn't the property repaired by the insurance company?" Oh, wait! You mean it wasn't insured? How can that be? Responsible landlords always insure their investments, don't they? Tesla - it's very well known that rental properties are taxed at the non-homestead rate. That doesn't mean that money is set aside to take care of problems created by incompetent landlords.
Tesla
Mon, Dec 12, 2011 : 1:09 p.m.
Little known fact, but in most communities, property taxes are at least 50% higher on rental homes as opposed to primary residences. I don't own any rental properties in A2 but every other city I do have one in has increased rates for rental props.
5c0++ H4d13y
Mon, Dec 12, 2011 : 1:05 p.m.
You couldn't be more wrong. The new owner has been wanting to move along but the city has put one trip wire after another in place over three figure bills and fines. But all those notices have been going to the wrong place even after the owner and the lawyer did their due diligence to notify the city. It's a story of how bureaucratic and near sighted ann arbor government is.
Jim Osborn
Mon, Dec 12, 2011 : 1 p.m.
All landlords should be held to the same standard. This new owner lived in Saline. The "incompetents" were in Ann Arbor City Hall, making any changes to this property difficult.
zags
Mon, Dec 12, 2011 : 12:58 p.m.
So you are advocating even more bureaucracy?
Salbolal
Mon, Dec 12, 2011 : 12:47 p.m.
Agree with Alan Goldsmith....A2.com CAN do reporting, please do MORE
JanL
Mon, Dec 12, 2011 : 12:28 p.m.
On a related note, the long-abandoned house at the corner of West Kingsley and North 1st Street sits boarded up. It would be lovely to see some action on this eyesore.
Paula Gardner
Mon, Dec 12, 2011 : 12:22 p.m.
A correction has been made to this story. Thank you to the reader who pointed it out.
Stephen Lange Ranzini
Mon, Dec 12, 2011 : 12:19 p.m.
For 38 months our bank has been diligently working through the process of adding 13 parking spots in a field in a corner behind the Mansion on Washtenaw where we have our headquarters and while final approval will hopefully come December 19th, I have to note that it is just bizarre how many delays and roadblocks that have been put in our way. The approval process for our parking lot began with a request for 28 parking spots. Along the way we've held 2 neighborhood charettes plus numerous other communications with various versions of the detailed plans. 16 of the 19 adjacent property owners supported this project all along, and now last we've heard, the other three are on board. To get the approval we've had to commit to $150,000 in extra amenities and $50,000 in engineering expenses on top of the actual cost of the parking lot we want to build. Unfortunately due to the extensive delays, we've relocated a division of the bank and the 8 jobs of the HQ of that firm from Ann Arbor to Farmington Hills. This firm brought Ann Arbor a great deal of positive press by being profiled in the New York Times and most other major national press and it is growing rapidly and now manages $175 million. Since we had to sign a 5 year long term lease in Farmington Hills when we relocated the employees, these jobs will never come back. Ann Arbor city government is very disfunctional and even the city's employees will tell you that if you ask them.
Tony Livingston
Mon, Dec 12, 2011 : 1:48 p.m.
But, they have a great retirement program!
Jim Osborn
Mon, Dec 12, 2011 : 12:56 p.m.
I recall several years ago an expensive remodeling project was done at a local building used for public meetings. After it was complete, the city wanted automated doors that would have cost thousands, and several times more than the cost if known earlier. The state had to over rule the city. If University Bank were to have proposed the addition of a bicycle parking space, with painted lane symbols up their driveway, this would have been approved.
DennisP
Mon, Dec 12, 2011 : 11:55 a.m.
Agree with Alan Goldsmith entirely. This is the disease known as bureaucracy. It's why there are calls all the time for smaller government. Not because we hate the idea of government, but because we hate how it has become a haven for incompetency. No one in the city took the extra time to investigate and put two and two together. Sale of the property is recorded and departments made aware of things. No one can assemble an entire record of what is owed and no one is sending notices out to the new owner. This may be an extraordinary example but it outlines how bureaucracies harbor and conceal the unmotivated and undedicated while burying its citizenry in arcane paper pushing and legalisms. We need government, but we need a government of people who are interested in helping their citizens not in "leading" us or expecting us to do everything for them.
pseudo
Mon, Dec 12, 2011 : 11:53 a.m.
I used to live near this house and walk by it every day. Its down the street from another train wreck that was finally fixed up and sold years after it was abandoned. This area of city government is clearly more "in the way" than "process driven" and this neighborhood has suffered a great deal because of the way this department bungles these things. There are several other houses in that general area that need the same attention and they have owners who have been trying to get it done. Its sad that a city that has so much money can't handle the basics: who is the owner, what is the contact info. Kind of silly isn't it?
Alan Goldsmith
Mon, Dec 12, 2011 : 11:35 a.m.
Thanks for the article. It shows how the day-to-day operation of the City is broken and why some of us local residents and taxpayers get upset when the local media and local politicians spend months going over two word changes to some feel-good city ordinance while letting city services fall apart to the point of damaging a neighborhood. You know, putting speed bumps on a city street that is already cratered with potholes, craving to special interest elitists on the 'art' issue while warming centers aren't enough to handle the ever-increasing homeless population and more worried about cutting deals with clear conflicts of interest in place (i.e. the Fuller Road parking structure) than the process of running a city. Ann Arbor--where City officials never plan ahead but instead, wait for failures and then respond. Hopefully this is a new day for Ann Arbor dot com and more stories of this nature will follow, and less of the PR group hug coverage you've given officials in power the past two years.