Kenton Fiscal Court OKs Vacant Foreclosed Property Registry

Kenton County Fiscal Court voted unanimously last month to enact a county-wide vacant foreclosed property registration program. The program, which became effective December 9, increases the tools available to PDS staff for effective code enforcement activities. Most Kenton County cities advocated for the approval since early 2016.

Implementation of the new program will save tax dollars for PDS’ 16 One Stop Shop program jurisdictions by requiring lenders pursuing foreclosures to register a responsible party to maintain the vacant property. Knowing whom to contact reduces the time spent locating a responsible party when violations arise. The ordinance applies to all Kenton County communities regardless of whether they’re part of the PDS program.

In developing the ordinance with Kenton County Attorney Stacy Tapke, staff sought information from communities that have adopted vacant property registration programs. That research showed this type of program has proven to be a useful tool for other communities.

“The benefit at the office level is allowing faster turnaround times for property clean up,” said Joseph Parson, Planning/Building Inspector for the City of Morehead, Kentucky. That jurisdiction enacted a vacant property registration ordinance in 2011.

The City of Cincinnati uses a similar program. Cincinnati issued a report two years after adopting its vacant foreclosed property registry which details the changes in code enforcement effectiveness before and after adoption. The report states that prior to adoption of the ordinance, an estimated 20-30 percent of foreclosed properties degraded in condition during the foreclosure period. Within the first year after adoption, only ten per cent of those properties degraded in condition. That number dropped to 4.5 percent in the second year.

The cost of administering this program will be the sole responsibility of the banks and lending institutions that must maintain these foreclosed properties. The program will be funded through a required $150 property registration fee. In addition, the registration will reduce costs related to code-enforcement activities by increasing staff efficiency in dealing with vacant and foreclosed properties.

“Requiring a local contact for these properties allows us to contact a person who has the authority to address issues such as tall grass or maintenance violations in a timely manner” said Rob Himes, PDS’ codes administrator. “Under the current system, code enforcement officials’ only option is to mail a violation letter to the lending institution which is often out of state and that rarely yields results.” 

Vacant foreclosed properties can drag down property values in an otherwise well-kept neighborhood. There are an estimated 1,321 properties currently pending foreclosure in Kenton County, some dating back to 2006. Most of these properties set vacant and unmaintained through all or part of the foreclosure process. Kenton County’s new Vacant Foreclosed Property Registry provides cities with a mechanism to require that these properties be maintained to reasonable standards while in foreclosure.

PDS staff is reaching out currently to all lending institutions doing business in the metro area to inform them of this new requirement. It is also working with each of Kenton County’s 20 jurisdictions to discuss the program and provide necessary information to local staff.

Contact Emi Randall, Director of Planning & Zoning Administration or Rob Himes, Codes Administrator, or call 859.331.8980 for more information.