ARTICLE VII. REHABILITATION AGREEMENTS

42-239 Purpose.

The purpose of this article is to develop a method to allow for the lawful rehabilitation of condemned buildings that have been ordered demolished by the Pontiac Board of Appeals. Further, this article is intended to discourage property speculators from acquiring condemned properties for the express purpose of creating substandard dwellings for human occupancy.

(Ord. No. 2295, § 1(1), 7-4-13)

42-240 Condemned buildings ineligible for permits.

Any property with a registered demolition order as recorded by the Oakland County Register of Deeds is not eligible to receive a building, mechanical, plumbing, electrical or occupancy permit or a certificate of compliance unless the property owner enters into a rehabilitation agreement with the City prior to the issuance of any permit.

(Ord. No. 2295, § 1(2), 7-4-13)

42-241 Rehabilitation agreements.

The Community Development Director, or any duly appointed designee, may enter into a rehabilitation agreement with a property owner to rehabilitate condemned buildings. A rehabilitation agreement must include the following:

(1)    Property maintenance inspection required. The property owner(s) shall apply to obtain a property maintenance inspection of the premises/structure(s) from the City of Pontiac Department of Community Development prior to the execution of the rehabilitation agreement, which will result in the issuance of a property maintenance inspection report that will specify all of the improvements and/or repairs required to bring the premises/structure(s) into compliance with the applicable building code(s) and municipal ordinances, the report which shall be incorporated into the rehabilitation agreement. The property owner shall pay the appropriate fee for the property maintenance inspection.

(2)    Payment of demolition bond.

a.    The property owner must post a cash bond in the amount equal to the cost of the demolition as determined by the Community Development Director, which will be based on the average square foot demolition cost for the most recent demolition bid received and awarded by the City.

b.    For structures requiring a bond of more than $15,000.00, a cash bond shall be secured for $15,000.00 and a cash or surety bond approved by the City for the remainder shall be secured by the property owner and submitted to the City.

c.    The bond is fully refunded to the owner, without interest, upon the issuance of a certificate of compliance for the subject property.

d.    If the property owner fails to adhere to the terms of the rehabilitation agreement, the City may retain the cash portion of the demolition bond to pay for demolition costs and/or cover legal costs required to effect compliance with the terms of the surety bond.

e.    A demolition bond shall not be required for a single-family home or duplex of no more than two units, one of which shall be 100 percent homestead by the property owner, if the property owner has never taken advantage of this subsection and has been a resident of the City of Pontiac for the last five years and:

i.    Pays a nonrefundable $100.00 application fee;

ii.    Agrees in writing to have all improvements completed within 180 days of signing the rehabilitation agreement;

iii.    Agrees to occupy the house upon the issuance of a certificate of compliance for a period of one year and applies for, receives, and maintains the property with a principal residence exemption certificate;

iv.    Signs a provision in the rehabilitation agreement that places a lien on the property in the amount of the calculated demolition bond that will expire one year after the certificate of compliance is issued if the property owner complies with subsection (1)(e)(ii) of this section, and the amount of such lien will immediately be forfeited to the City upon sale if the property is used for rental purposes during the first year;

v.    Does not have an existing property rehabilitation agreement;

vi.    Pays all outstanding property taxes on the parcel that are due to the Oakland County Treasurer and the City of Pontiac or that are in the process of being returned to the Oakland County Treasurer as delinquent;

vii.    Is fully compliant with all provisions of the City’s income tax ordinance;

viii.    Agrees as a provision of the rehabilitation agreement that all open construction permits can be revoked by the City if the certificate of compliance has not been issued within the 180 days or posts a bond in the amount required by the ordinance at the time of the revocation or cost to complete repairs;

ix.    Demonstrates that the property owner has the financial resources to pay for the estimated costs of renovation at the time that the agreement is signed. Evidence of financial resources may include paystubs, bank statements, or written evidence of other financing sources demonstrating the assets are available to complete the estimated cost of repairs;

x.    Shows proof of residency for the last five years;

xi.    The house remains unoccupied until such time that the certificate of compliance is issued;

xii.    The City shall not have incurred any demolition-related costs on the property.

(3)    Permit application. Property owner(s) shall make application to the City for all required building permits within seven days after execution of the rehabilitation agreement and all other necessary permits within 30 days.

(4)    Schedule of rehabilitation. Property owner(s) shall rehabilitate and/or repair said structure(s) in a lawful manner in compliance with the rehabilitation agreement during the 180-day period after making proper application and obtaining the requisite permits from the City.

(5)    Inspections.

a.    Property owner(s) shall allow the City to conduct any and all necessary inspections at a mutually agreed-upon time between the parties.

b.    Property owner shall be responsible for calling the Building Safety Division to schedule all necessary inspections.

(6)    Property maintenance.

a.    The exterior of the premises shall be kept free of all debris and trash.

b.    Lawn and grass must be maintained in conformance with chapter 122, article III.

c.    Sidewalks adjacent to the property shall be kept free of all snow and ice in accordance with the Code of Ordinances.

(7)    Other terms.

a.    Recognition by the property owner that the owner will adhere to the provisions of this article.

b.    By execution of a rehabilitation agreement the property owner waives all his rights to appeal.

c.    Such other information that the Director of Community Development determines is required to be included.

(8)    Demolition expenses. No property shall be eligible for a rehabilitation agreement if the City has incurred any demolition-related costs on the property.

(Ord. No. 2295, § 1(3), 7-4-13; Ord. No. 2321, § 1, 7-21-15; Ord. No. 2338, § 1, 8-25-16)

42-242 Termination of rehabilitation agreement.

(a)    At the expiration of the 180-day period, if the building subject to the terms of the rehabilitation agreement has not been rehabilitated or repaired as required by section 42-240, with a certificate of occupancy or compliance having been issued for the structure(s), the City may immediately proceed with demolition and use the demolition bond to pay for the demolition. After all demolition costs have been paid, and if there is any balance, such balance shall be returned to the property owner without interest. There shall not be any extensions of this rehabilitation agreement permitted.

(b)    If a rehabilitation agreement has been fulfilled by the property owner, and a certificate of occupancy or compliance has been issued, the Director of Community Development shall request the Board of Appeals to lift the decision and order of demolition and remove such decision and order from the record of the Oakland County Register of Deeds.

(Ord. No. 2295, § 1(4), 7-4-13)