Investing in vacant properties in Detroit can be a lucrative venture. Still, it comes with its own set of challenges and responsibilities. Understanding and complying with the city’s ordinances is crucial for investors, rehabbers, and realtors to navigate the complex landscape of vacant property transactions.
This article reviews a few essential ordinances of the Detroit City Code that impact the acquisition, maintenance, and rehabilitation of vacant properties in Detroit, Michigan.
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Vacant Buildings, Premises, And Structures
This section states that all vacant buildings, premises, and structures shall be maintained in accordance with Division 4 of Article XV – Property Maintenance Code.
Suspension or denial of Certificate of Compliance; revocation
Sec. 8-15-36 outlines the conditions under which the Building Official in Detroit may suspend or deny a Certificate of Compliance for a property. This may occur if the property owner fails to address blight violation notices or property taxes are delinquent for a year or more.
Owners can request a hearing within seven days if they disagree with the suspension or denial. The hearing allows for the presentation of evidence in support of compliance or justification for the Certificate. If no hearing is requested or the decision upholds the suspension, it becomes final, resulting in the revocation of the Certificate. Tenants are notified of the suspension or denial, instructing them to pay rent into an escrow account until the owner obtains a new Certificate of Compliance.
For a detailed understanding of the process and its implications, read the complete document.
Unsafe building, premises, structures, equipment or devices; closing or condemnation.
This ordinance addresses the closure or condemnation of buildings, premises, structures, equipment, or devices in Detroit. The Building Official or Public Health Director may take such action if a property threatens life, health, property, or public safety. This includes buildings with inadequate safeguards, potential for collapse, unsafe equipment, or being unfit for human occupancy. The closure or condemnation is carried out in accordance with state law, the article itself, or the 2019 Detroit City Code.
Additionally, officials can issue necessary notices or orders to protect public health, safety, and welfare.
Find out more here.
Closing Of Unlawful And Vacant Buildings, Premises, And Structures
Sec. 8-15-40 grants authority to the Building Official and the Public Health Director in Detroit to order the closure of vacant and uninhabitable buildings, premises, or structures that are not at risk of structural collapse. Upon serving a closure notice to the owner and their failure to secure the property within the specified time, officials can close and secure the premises, with the associated costs charged to the property as a lien collectible by the city. A public closure notice is posted on the affected property, and the owner is notified by first-class mail. Understanding the details of this ordinance is crucial for property owners and stakeholders involved in Detroit’s real estate landscape.
Read the complete ordinance here.
Requirement to Register Vacant Buildings and Structures; Enforcement Authority; Establishment of Annual Fee
This section mandates the registration of vacant buildings in Detroit within 30 days of vacancy or upon city notification. Owners must provide property details, owner information, mortgage or lien holder details, and a plan for property use or demolition. An annual renewal of the Certificate of Registration is required unless the property is reoccupied or demolished. The ordinance enforces an annual fee, determined by the Buildings, Safety Engineering, and Environmental Department, collected to fund inspections. A visible emergency contact notice must be posted, with an option for the Police Department to display a warning sign. The ordinance empowers the City to intervene in emergency situations, including demolition or securing of vacant properties, with incurred costs recorded as liens against the property. Compliance with emergency orders and maintenance standards is mandated.
Find the details here.
Violation As Public Nuisance; Abatement
This ordinance designates any premises violating the property maintenance ordinance as a public nuisance. This includes conditions that breach the established standards in the article. The responsibility to rectify the violation and abate the public nuisance lies with the owner, operator, individuals with a property interest, or co-box controllers if present. A hearing officer, upon determining the responsible party for the blight violation, issues an order mandating corrective action and the elimination of the public nuisance. This section emphasizes the collective duty to maintain premises in accordance with the established regulations, reinforcing the commitment to curb blight and uphold community standards.
Read the ordinance here.
Minimum Requirements For Vacant Buildings And Structures
Section 8-15-113 outlines the essential requirements for maintaining vacant buildings or structures, ensuring they don’t become eyesores or hazards to the community. It mandates proper upkeep, such as limiting grass height, removing dead trees, and clearing snow from walkways. The exterior must be free of debris or waste, and foundations, walls, and windows should be intact to prevent weather damage and pest entry. The section emphasizes safety with continuous exterior lighting, proper closure of openings, and secure entrances. Specific guidelines address barricades, permitting certain types for small openings. Accessibility and security are prioritized, requiring at least one accessible and locked entrance, plus a minimum of two exit doors based on linear footage. This comprehensive set of rules aims to maintain the aesthetic appeal, safety, and functionality of vacant buildings, contributing to the overall well-being of the community.
Read more about it here.
Duty Of Owner Of Vacant Or Occupied Premises
This section outlines the essential requirements for maintaining vacant buildings or structures, ensuring they don’t become eyesores or hazards to the community. It mandates proper upkeep, such as limiting grass height, removing dead trees, and clearing snow from walkways. The exterior must be free of debris or waste, and foundations, walls, and windows should be intact to prevent weather damage and pest entry. The section emphasizes safety with continuous exterior lighting, proper closure of openings, and secure entrances. Specific guidelines address barricades, permitting certain types for small openings. Accessibility and security are prioritized, requiring at least one accessible and locked entrance, plus a minimum of two exit doors based on linear footage. This comprehensive set of rules aims to maintain the aesthetic appeal, safety, and functionality of vacant buildings, contributing to the overall well-being of the community.
Find the details here.
Evidence Of Abandonment; Overcoming Abandonment
Section 50-5-75 outlines conditions under which land use is presumed abandoned, leading to the extinguishment of its land use rights. Abandonment is presumed when an owner expresses intent to abandon in writing or publicly, when a less intensive use replaces the current one, or when the building housing the use is removed. The Building Official may schedule a show-cause hearing if evidence suggests abandonment, including owner statements, physical changes indicating a different use, or six months of inactivity. Public utility shutdowns or expired/revoked licenses are also indicators. To overcome the presumption, owners must demonstrate continuous compliance with regulations, maintenance of applicable licenses, tax filings, and engagement in activities such as marketing the land for sale or lease during periods of inactivity.
Read more about it here.
Navigating Detroit’s vacant property ordinances requires a comprehensive understanding of the legal landscape. Investors, rehabbers, and realtors must stay informed about these regulations to make informed decisions, minimize risks, and contribute to revitalizing Detroit’s neighborhoods.
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