ORDINANCE NO. 260401
title
Sponsor: Mayor Quinton Lucas
Amending Chapter 56, Code of Ordinances, by repealing Article VI, Registration of vacant properties and foreclosing properties, and enacting a new article of like number and subject matter, including a new Section 56-586, Semiannual fee for chronically vacant nuisance property to expand vacant property registration to unimproved vacant land, add required disclosure of plans or intent for vacant property, establish procedures for investigating and identifying properties with a residential structure or multiple dwelling units that have been vacant for at least six months and have had multiple housing code violations and assess a $200.00 fee for each semiannual period in which the City has investigated and made this determination; establishing policy for disclosure of access permission by Kansas City Police Department and the Office of Unhoused Solutions Triage team; and directing the City Manager to implement a city-wide registration outreach campaign.
body
WHEREAS, vacant and foreclosing properties often create health and safety hazards, attract vandalism and other criminal activity, lower property values, and impose extra costs on local governments for additional police, fire and other resources; and
WHEREAS, unimproved vacant land can pose many of the same risks as vacant improved properties, including attraction of illegal dumping, criminal activity, and blighting conditions that reduce property values and degrade the quality of life in surrounding neighborhoods; and
WHEREAS, the City has required owners of vacant or foreclosing properties to register those properties with the City pursuant to Chapter 56, Code of Ordinances, Article VI, but the existing registration framework applies only to improved properties with structures, leaving unimproved vacant land outside its scope; and
WHEREAS, the City Council finds that expanding registration requirements to include unimproved vacant land, without imposition of a registration fee for such land, is consistent with the purpose of Article VI and will improve the City’s ability to identify, monitor, and engage with owners of all vacant properties; and
WHEREAS, RSMo. § 67.399 authorizes municipalities to establish a process by which an owner of property with a residential structure, or commercial property with multiple dwelling units, that is vacant for at least six months and characterized by housing code violations may be required to pay a registration fee upon a municipality’s investigation and determination that such property meets these criteria; and
WHEREAS, the City desires to maintain its registration requirement for vacant properties, while enacting a new section, 56-586, Semiannual fee for chronically vacant nuisance property, assessing a fee against the owner of any property that is, in any semiannual period, investigated and found to have met the criteria set forth in RSMo. § 67.399; and
WHEREAS, City’s new proposed section, 56-586, authorizes City inspection and identification of any properties known or believed to meet the criteria set forth in RSMo. § 67.399, and the assessment of a fee for any such properties investigated and found to have met such criteria within a semiannual period, while requiring both notice to owners of this determination and affording them the opportunity to appeal this determination or avoid the fee by curing the conditions supporting this determination; and
WHEREAS, City’s new proposed section, 56-586, requires that a list of such properties meeting the criteria set forth in RSMo. § 67.399 be made available to the City’s Fire Department and the Kansas City Police Department, and that the City additionally attempt to determine whether any such property is open to entry or being occupied by trespassers and, if so, that the owner be notified of this determination; and
WHEREAS, the City intends for its new proposed section, 56-586, to assist owners of any such properties in mitigating the conditions that often lead to health and safety hazards, vandalism and other criminal activity, and lower property values, both on their own properties and surrounding neighborhoods;
WHEREAS, modern property intelligence software, such as platforms that integrate parcel data, code violation histories, ownership records, and market information, can substantially improve the City’s capacity to identify unregistered vacant properties, prioritize enforcement, and track compliance across a large and diverse property inventory; and
WHEREAS, a robust and coordinated outreach campaign is necessary to inform property owners city-wide of their registration obligations, ensure that the expanded registration requirements are understood and followed, and reduce the number of unregistered vacant properties; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:
Section 1. That Chapter 56, Code of Ordinances, is hereby amended by repealing Article VI, Registration of vacant properties and foreclosing properties, and by enacting a new Article VI entitled “Registration of vacant properties and foreclosing properties” to include amended Sections 56-571 through 56-583 and new Section 56-586, to read as follows:
ARTICLE VI.
REGISTRATION OF VACANT PROPERTIES AND FORECLOSING PROPERTIES
Sec. 56-571. Purpose.
The purpose of this article is:
(1) To identify those properties citywide that are vacant or foreclosing and to gain contact information for code enforcement and emergency situations; and
(2) To protect neighborhoods from becoming blighted through the lack of adequate maintenance and security of vacant properties and foreclosing properties.
Sec. 56-572. Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning, and any words not defined here but defined elsewhere in this chapter shall have the meaning ascribed to them previously:
Beneficiary means a lender under a note secured by a deed of trust.
Chronically vacant nuisance property means a residential property improved by a residential structure, or a commercial property improved by a structure containing multiple dwelling units, that has been vacant for at least for the immediately previous six months and has had multiple violations of Chapter 34, 48, 56 or 62.
City means the City of Kansas City, Missouri.
Days means consecutive calendar days.
Deed of trust means an instrument by which title to real estate is transferred to a third-party trustee as security for a real estate loan. This definition includes any subsequent deeds of trust.
Default means the failure to fulfill a contractual obligation, monetary or conditional.
Department means the neighborhood services department of the city.
Director means the director of the neighborhood services department of the city.
Foreclosing and foreclosure have the same meaning, that being the process by which a property, placed as security for a real estate loan, is prepared for sale to satisfy the debt if the borrower (trustor) under a deed of trust defaults.
Improved property means any parcel of real property located within the City that is improved by any building, structure, or dwelling unit;
Initiation of the foreclosure process means taking any of the following actions:
(1) Publication of a notice of sale; or
(2) Commencing a foreclosure action on a property in a court of law.
Local means within 50 road/driving miles distance of the city
Mortgagee means the creditor, including but not limited to, service companies, lenders in a mortgage agreement and any agent, servant, or employee of the mortgagee, or any successor in interest and/or assignee of the mortgagee's rights, interests or obligations under the mortgage agreement.
Notice of default means a notice, issued pursuant to the applicable real estate security document or RSMo § 408.554, that a default has occurred under a deed of trust.
Owner means any person, mortgagee, or property trust trustee who alone or jointly or severally with others, with or without the right of possession, is entitled under any agreement to the control or direction of the management or disposition of the building or property or of any part of the building or property. Unless otherwise specifically provided, the owner, their agent for the purpose of managing, controlling or collecting rents and any other person managing or controlling a building or property in any part of which there is a violation of the provisions of this ordinance, shall be liable for any violation therein, existing or occurring, or which may have existed or occurred, at or during any time when such person is or was the person owning or managing, controlling, or acting as agent in regard to said buildings or property and is subject to injunctions, abatement orders or other remedial orders. The liabilities and obligations imposed on an owner shall attach to:
(1) Any mortgage company or any other person with or without an interest in the building or property who knowingly takes any action in any judicial or administrative proceeding that is intended to delay issuance or enforcement of any remedy for any violation of the property maintenance code then in existence; provided that with respect to fines such person shall be liable only for fines which accrue on or after the date of such action; and further provided that no liability shall be imposed under this ordinance for any action taken in any proceeding, including a proceeding to foreclose on a lien, that does not delay or prevent the prosecution of any action brought by the city to enforce the city's property maintenance code.
(2) A property trust trustee under a property trust, unless said trustee in a proceeding under said provisions of this ordinance discloses in a verified pleading or in an affidavit filed with the court, the name and last known address of each person who was a beneficiary of the trust at the time of the alleged violation and of each person, if any, who was then acting as agent for the purpose of managing, controlling or collecting rents, as the same may appear on the records of the trust.
Out of area means in excess of 50 road/driving miles distance of the city.
Property means any real property, or portion thereof, located in the city, including improved and unimproved property.
Property trust trustee means one who holds title to a building, structure or property under a property trust with or without the right of possession, management or control.
Registration period means June 1 of each year through May 31 of the subsequent year.
Securing means measures that assist in making the property inaccessible to unauthorized persons, including but not limited to the repairing of fences and walls, chaining/pad locking of gates, the repair or boarding of door, window or other openings.
Trustee means the person, firm or corporation holding a deed of trust on a property as security for the payment of a debt.
Trustor means a borrower under a deed of trust, who deeds property to a trustee as security for the payment of a debt.
Unimproved property means any parcel of real property located within the City that is not improved by any building, structure, or dwelling unit. Unimproved vacant land shall be subject to the registration requirements of this article on the same terms as vacant improved property, except that no registration fee shall be assessed solely on account of the property’s status as unimproved vacant land.
Vacant means a property which is lacking habitual presence of human beings who have a legal right to be on the property, or at which substantially all lawful business operations or residential occupancy has ceased. In determining whether a property is vacant, it is relevant to consider, among other factors, the percentage of the overall square footage of any building on the property or floor to the occupied space, the condition and value of any items in the property and the presence of rental or for sale signs on the property; provided that multi-family residential property containing five or more dwelling units shall be considered vacant when the majority of all of the dwelling units become unoccupied and a majority remain unoccupied. A property shall not be considered vacant which is being currently marketed by a licensed real estate professional hired by the former or current occupant of the property and to which water service has not been shut-off.
Sec. 56-573. Annual registration of vacant and/or foreclosing properties required.
(a) This article shall apply to all vacant and/or foreclosing properties, as defined in this chapter, including properties owned, operated, or subsidized by public or nonprofit agencies. .
(b) Adherence to this article does not relieve the owner or any other party of any applicable obligations set forth in any other ordinance which may apply to the property.
(c) Registering vacant or foreclosing properties pursuant to this article does not relieve any party of any obligation to otherwise record property information.
(d) All owners must annually register vacant and/or foreclosing properties as defined in this chapter, whether improved or unimproved, with the neighborhood services department of the city by submitting a vacant/foreclosing property registration form provided by the department.
(1) All vacant property, within 90 days of becoming and remaining vacant, shall be registered by the owner.
(2) All foreclosing properties, within 14 days of initiation of the foreclosure process as defined in this chapter, must be registered by the party initiating the foreclosure process.
a. This registration must certify that the property was inspected for occupancy and identify whether the property is vacant at the time of registration. If the property is not vacant at the time of registration, a monthly inspection shall be conducted by the owner to determine if the property has become vacant. If, upon subsequent inspection, a property is determined to be vacant, an updated registration form shall be filed with the city.
b. At the time of registration with the city, the party initiating the foreclosure process must send written notice addressed to the occupant of the property that the foreclosure process has been initiated. Notice shall be sent by regular United States mail, postage pre-paid.
(e) Prior to August 1, 2026, the owner of each vacant or foreclosing property shall register the property. There shall be no fee charged for this registration, except as provided in section 56-586 of this code.
(f) All registrations submitted under this article shall expire on July 31 of each registration period for which they were submitted and shall be subject to renewal annually. Application for renewal of registration in any period will be accepted beginning July 1 and may be made without penalty through July 31.
(g) All owners of vacant property that is either improved or unimproved shall apply for registration and renewal on a form provided by the department which shall include provision for the following owner, agent and other information:
(1) The common name of the property, if any, the exact street address of the property and the number of units in each building on the property.
(2) An identification of the owner(s) by full name, telephone number, mailing address, e-mail address and date of birth. The mailing address may not be a P.O. Box. If the property is owned by a corporation, limited liability company, partnership, limited partnership, trust or real estate investment trust, the name and address of any of the following shall be provided:
a. For a corporation, a corporate officer and the chief operating officer;
b. For a partnership, the managing partner;
c. For a limited liability company, the managing or administrative member;
d. For a limited partnership, a general partner;
e. For a trust, a trustee; or
f. For a real estate investment trust, a general partner or an officer.
(3) Name and address of all lien holders and any other party with an ownership interest in the property.
(4) A notarized affidavit executed by the natural person stating that they have management control and responsibility for the property, and will personally inspect the property at least once per month, and listing such person’s full name, telephone number, mailing address and email address.
(5) The full name, telephone number, mailing address and email address of an agent, if one is so designated by the owner, to receive service of any notice, order or summons issued because of a violation of this code.
(6) The names, addresses, and phone numbers of designated employees or authorized representatives who may be contacted in the event of an emergency.
(7) A written statement describing the owner’s current plans or intent for the property. At minimum, the statement shall indicate which of the following best describes the owner’s plans:
a. Active rehabilitation or renovation of any structure on the property;
b. Planned sale or transfer to a third party;
c. Holding for future use with no immediate development plans; or
d. Other, with a written explanation.
(8) The signature of the owner, an officer if the owner is a corporation, a partner if the owner is a partnership, a member if the owner is a limited liability company and the registered agent if so designated. A registered agent’s signature shall indicate consent to the designation.
(h) The Director may, by rule, establish a simplified registration form for unimproved vacant property that collects the information most relevant to monitoring and engaging with owners of such parcels.
(i) At the time of registration or renewal, the owner of any vacant property may execute a voluntary written consent, on a form provided by the Department, authorizing the Kansas City Police Department and authorized City staff to enter upon the exterior areas and grounds of the property, but not into any enclosed structure, for the limited purposes of:
a. Conducting welfare checks on individuals who may be present on or occupying the property;
b. Connecting individuals present on the property with available shelter, services, or other supportive resources; and
c. Assessing whether the property is open to unauthorized entry or presents conditions requiring further code enforcement referral.
Such consent shall be voluntary and shall not be a condition of registration or a factor in any enforcement determination. The consent shall remain in effect for the duration of the registration period in which it is executed and shall be renewed, if the owner wishes to continue the authorization, at the time of each subsequent annual registration. The owner may withdraw consent at any time by providing written notice to the Department, and such withdrawal shall take effect upon receipt. Any access conducted pursuant to a consent executed under this subsection shall be documented by the entering agency and a summary report made available to the property owner upon request.
Sec. 56-574. Posting.
Within seven days of registering the property, every owner of a vacant property shall post an exterior-facing notice in a front window furnishing the 24-hour contact name and phone number for a person responsible for maintaining the property. The address of the contact shall also be provided on the posting. The posting shall be hung from the interior of the window, and should be on paper no smaller than 8½ by 5½ inches and printed in a font size no less than 12 point. If there is no front window, or if the front window is not accessible, such notice shall be placed on an exterior wall or fence in a location designed to be visible to any emergency responders.
Sec. 56-575. Change in registration information.
The owner of a vacant or foreclosing property already registered with the city shall register any changes of the previously submitted registration information within 30 days of said change. There shall be no fee for this registration update if done within the 30 days.
Sec. 56-576. Notice on sale of property.
(a) Every owner selling a vacant or foreclosing property registered as provided in this article shall give notice in writing to the department within 30 days of closing. This notice shall include the name and address of the buyer.
(b) The new owner shall have 30 days from the date the change of ownership occurred to file a new registration with the department. There shall be no fee for this new registration.
Sec. 56-577. Notice on occupancy of property.
Every owner of a vacant or foreclosing property registered as provided in this article that ceases to be vacant, as that term is defined in this article, shall give notice in writing to the department within 30 days of the date on which the property ceased to be vacant.
Sec. 56-578. Inaccurate or incomplete registration information.
It shall be a violation of this code for an owner or a responsible person to provide inaccurate information for the registration of vacant or foreclosing properties or to fail to provide information required by the city for the registration.
Sec. 56-579. Appeal.
Except as specifically set forth in section 56-586, any determination that a property is vacant or foreclosing made by the city, and any administrative citation fine pursuant to section 56-581 for failing to register such property, may be administratively appealed as provided for in this chapter or chapter 48.
Sec. 56-580. Affirmative defenses.
It shall be an affirmative defense to any citation or administrative penalty issued under this Article that:
(1) The property is the subject of probate proceedings or its title is otherwise the subject of current litigation, not including foreclosure proceedings. This defense shall not be applicable for more than 24 months without permission of the director; or
(2) The property has been used as a residence by a person entitled to possession for a period of at least three months within the previous nine months and the same person intends to resume residing at the property.
Sec. 56-581. Penalty for violation of article VI.
(a) It shall be a violation of this code to fail to register or re-register any vacant or foreclosing property regulated by article VI, and to fail or refuse, upon proper request, to provide full and correct information specified by this article. Registration requirements shall not preclude the city from taking appropriate actions to secure the property; or to issue notices of violation or notices to abate; or from acting upon imminent hazard(s). Penalties for failing to register or re-register shall be imposed as administrative citation fines. The amount of the penalty for late filings is $50.00 for the first 30 days and $100.00 for each additional 30 days of delinquency.
(b) Failure to pay the administrative citation fine for more than nine months may result in the property being reviewed for consideration for a receivership action under article VII.
Sec. 56-582. Violations.
Any owner who fails to comply with the requirements of this ordinance shall be guilty of an ordinance violation and upon conviction thereof shall be punishable as set forth in section 56-583.
Sec. 56-583. Penalties.
(a) Any person convicted of a violation of this article shall be punished for that violation by a fine of not less than $200.00, but not more than $1,000.00, or by imprisonment of not more than 180 days or by both such fine and imprisonment. Whenever the penalty is to be a fine or a fine and imprisonment, the fine shall be no less than the minimum amount set out in the following schedule:
|
(1) |
First offense |
Not less than $200.00 but not more than $1,000.00 |
|
(2) |
Second offense |
Not less than $300.00 but not more than $1,000.00 |
|
(3) |
Third offense |
Not less than $500.00 but not more than $1,000.00 |
|
(4) |
Fourth and subsequent offenses |
$1,000.00 |
(b) Every day that a violation continues shall be considered a separate offense, for which the violator may be arrested, tried and convicted without necessity of further notice.
(c) The administrative citation fines as described in section 56-36 may also be imposed for violations of this article and such fines shall be subject to the administrative fine provisions and processes as described elsewhere in article VI.
Sec. 56-584. Program reporting and evaluation.
The city council shall review the program provisions and requirements at least every two years and determine whether to maintain, modify or terminate the program.
Sec. 56-585. Waiver of portion of administrative citation fines.
The director may waive a portion of the amount of administrative citation fines that have accumulated as a result of non-compliance with this code provided that the owner has properly registered the property and there are no other violations of chapter 56 or chapter 48 remaining on the property in question. In determining the amount to be waived, the director shall follow these guidelines:
(1) Waiving an amount equal to documented expenditures by the owner for repairs to the building, or for demolition.
(2) Waiving all but the amount required for demolition if the building is determined to be not feasible to repair and the owner chooses to have the city demolish it.
(3) Waiving all fines charged to an owner who vacated the property after receiving a notice of foreclosure.
(4) Waiving all fines if the property is donated to a local community development corporation or non-profit corporation that is willing to accept the property and submits written plans to correct existing code violations with a schedule acceptable to the director.
(5) Except for (c) above, no fines can be waived if there are unpaid special assessments pending against the property.
(6) Waiving all but $500 if the only infraction is failure to register the vacant property, and the property has now been registered.
Sec. 56-586. Semiannual fee for chronically vacant nuisance property.
(a) The director is authorized to make regular inspection of any improved property that is known or believed to be chronically vacant nuisance property. Upon any determination that a property is chronically vacant nuisance property, the director shall state in a report their findings and recommendations, including whether the property is subject to the chronically vacant nuisance property fee, and the grounds supporting the determination. Upon a determination that a property is chronically vacant nuisance property, the director shall also attempt to determine if the property is open to entry or being occupied by trespassers. If the director determines that the property is open to entry or being occupied by trespassers, they will notify the owner of this determination.
(b) The director shall maintain a list of known chronically vacant nuisance properties that shall be available to the city fire department and kansas city police department.
(c) The owner of any chronically vacant nuisance property shall, in addition to any other obligations set forth in this article or elsewhere in the code, pay a $200.00 fee for each semiannual period in which the director has investigated and determined, in a written report pursuant to subsection (a), that the property is chronically vacant nuisance property.
(d) Within 5 days of the director’s completion of a written report with findings and a determination that a property is subject to the chronically vacant nuisance property fee, the city shall notify the property owner by mail at the last known address according to the records of the city and applicable county. The notice shall state that the property has been determined to be chronically vacant nuisance property, that the property is subject to a $200.00 chronically vacant nuisance property fee for a semiannual period, that the fee can be assessed as a lien on the property if not paid, how the fee can be paid, and the process for appealing the director’s determination.
(e) Within 30 days of the director’s decision that the chronically vacant nuisance housing fee applies, the property owner may complete any improvements to the property that may be necessary to revoke the levy of such fee, and then may request a reinspection of the property and a reconsideration of the levy of such fee. The director, upon a timely request for reinspection and reconsideration, shall investigate and issue a written report with findings and a determination whether property has ceased to be chronically vacant nuisance property, in which case such fee shall be revoked. If the chronically vacant nuisance property fee is revoked by the director, no such fee shall be assessed and the matter shall be deemed closed for such semiannual period. Within 5 days of the director’s determination upon reinspection and reconsideration, the city shall notify the property owner of such determination by mail at the last known address according to the records of the city and applicable county. The notice shall state that the $200.00 chronically vacant nuisance property fee has or has not been revoked, and, if it has not been revoked, that the fee can be assessed as a lien on the property if not paid, how the fee can be paid, and the process for appealing the reconsideration determination.
(f) The chronically vacant nuisance property fee and penalties for delinquent payments of such fees required by this section shall be paid to the director or their designee. Any such fees that are delinquent for a period of one year shall become a lien on the property and shall be subject to foreclosure proceedings in the same manner as delinquent real property taxes, in accordance with RSMo. § 67.399. Upon any such foreclosure proceeding, the owner of the property against which the assessment was originally made shall be able to redeem the property only by presenting evidence that the violations of this chapter have been cured and presenting payment of all registration fees and penalties. Upon bona fide sale of the property to an unrelated party, said lien shall be considered released and the delinquent registration fee forgiven.
(g) Upon either the director’s initial determination that the property is chronically vacant nuisance property, or the director’s determination pursuant to subsection (e) not to revoke such fee upon a timely request for reinspection and reconsideration, the owner may appeal such determination to the property maintenance appeals board as provided for in chapter 56, article II, division 6 of this Code. Appeal must occur within 30 days of the city’s notice of the decision, sent pursuant to subsection (d) or (e), that is being appealed. If, on appeal, the determination of the director is reversed, no such fee shall be assessed and the matter shall be deemed closed for such semiannual period. If there is no timely appeal filed or if the director’s determination is affirmed on appeal, the chronically vacant nuisance property fee for such semiannual period shall be levied on the beginning of the second calendar quarter after either the director’s determination that such fee applies, the director’s determination upon reconsideration that such fee shall not be revoked, or the affirmance of either determination on appeal, whichever is later.
Secs. 56-587-56-599. Reserved.
Section 2. Directing the City Manager to develop and implement a city-wide vacant property registration outreach campaign, ‘Registration Sprint’, within 120 days of the effective date of this ordinance. The purpose of the Registration Sprint is to notify all known and suspected property owners of their registration obligations, with particular emphasis on the expanded requirements enacted by this ordinance, and to increase the rate of registration compliance city-wide.
end
______________________________________________________
Approved as to form:
______________________________
Bret Kassen
Associate City Attorney