- April 26, 2024
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Quick Facts
Complaints received by Citizens of Ormond Beach about abandoned houses: 52.
Number of abandoned houses registered with the city of Ormond Beach: 300.
Vacancy rate of houses in Ormond Beach: 18%.
Percentage of vacant houses that are “zombies:” 50%.
Annual loss of utility and tax revenue to city of Ormond Beach: $516,000.
Citizens group to present findings on vacant homes
‘Zombies’ are residing among us.
Citizens for Ormond Beach, a volunteer civic group, believes that abandoned, deteriorating houses in the city are causing property values of surrounding houses to also deteriorate.
After four months of research involving property records, real estate websites and help from city and county employees, they are ready to present their findings on the causes of the problem and actions they believe should be taken.
At 5:30 p.m. on Wednesday, May 14, the group will make a presentation in the Ormond Breach Regional Library auditorium. All concerned citizens are invited.
The City Commission will get a preview of the presentation in a workshop at 5:30 p.m. on May 6 in the commission meeting room at City Hall. This workshop is also open to the public.
“This problem should be a top priority for the city,” said CFOB president Rita Press. “We want to nudge them along, because of the cost to the city and the decline of the neighborhoods.”
The project started earlier this year when members of the group noticed vacant homes throughout the city. They asked the public for help in identifying vacant, “eyesore,” homes.
They also worked with the list of vacant houses kept by the city, which now numbers about 300. Press said the city’s financial department estimated that city loses $516,000 per year, because there are no collections for water, sewer, refuse and recycling, as well as nonadvalorem taxes, including sales tax and franchise fees, for the 300 houses. This puts a burden on taxes and services for citizens.
Another of their findings, through the county property appraiser, is that the vacancy rate in Ormond Beach is 18%. Half of those houses are “zombie” houses, which means they are vacant and foreclosure has started, but the institution has not completed the foreclosure and taken ownership.
Anita Lapidus, of CFOB, said they found “clear patterns” of delay by institutions in taking title to properties.
Foreclosures can be delayed for a number of reasons, the report states. Sometimes, there may be problems with the title. Also, a bank can avoid absorbing the loss of value and the cost of maintenance by not taking possession.
Even when a house is foreclosed upon, it can stand vacant for a long time. A foreclosure process normally takes at least 1,000 days.
They also found that the registered list of abandoned houses kept by the city needs to be updated. The group found 33 houses that should be removed from the city’s list and 26 that should be added. The abandoned house list was started in 2009, in an effort to keep foreclosed homes maintained. Lending institutions are supposed to notify the city about houses that are foreclosed, and then arrange for basic maintenance.
Another discovery was that houses are being purchased by hedge funds, which are pooled investments, to be used as rental properties. The CFOB research group believes that these funds are similar to “absentee landlords” with no stake in the community. One of their suggestions is to get a local contact for the funds so they can be held responsible for their houses.
The report also points out that adjustable rate mortgages, taken out in the “boom” years, will start to come due in 2015 and this could lead to “another rash of foreclosures and abandoned properties.”
Solutions to be proposed by the group include: providing information to residents on alternatives to foreclosure; adding staff for code enforcement; amending the code of ordinances to add penalties; providing the city with timely data from the county; and establishing a committee to monitor abandoned properties and make further recommendations to the City Commission.
Citizens for Ormond Beach works with government and other civic groups on city related matters. Visit cfobonline.com.
