Foreclosing on a home in the City of Los Angeles just became a bit more expensive. Modeled after a program in Oakland, the LA Council gave preliminary approval to a program that could charge banks $400 per foreclosed property for inspections of upkeep.
The plan is to use the money from that fee to increase patrols and inspections of the vacant properties. Those inspections are intended to keep the home from falling into disrepair, causing eye sores for the neighborhood and depressing property values. Cleaner, well kept properties can also reduce the risk of vandalism and other crimes.
The issue will reappear before the Council in August for final approval.
From the Los Angeles Daily News:
The City Council approved a plan Wednesday to charge banks an inspection fee for distressed properties despite questions about how the new program will be implemented by the Department of Building and and Safety.
Under the ordinance, modeled after a similar program in Oakland, lenders will be charged a fee when filing a notice of default on a home.
The fee will be used to fund the salaries of new Department of Building and Safety inspectors, who will be tasked with making sure the empty homes don’t become nuisances or contribute to the blight in neighborhoods.
Read the full article here.