HomeMy WebLinkAboutFND-024-03
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REPORT
FINANCE DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
C;J
Resolution #: GAA-<.(;;l'Yo.3
Date:
MONDAY, OCTOBER 6, 2003
Report #: FND-024-03
File#:
By-law #:
Subject:
POLICY ON PROPERTY STANDARDS COLLECTION
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT FND-024-03 be received; and
2. THAT the policy outlined in Attachment "A" be endorsed.
Submitted by:
'.
Reviewed by . J Cc',_-LJ/--- C ~'Lc
Franklin Wu,
Chief Administrative Officer.
NT/hjl
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REPORT NO.: FND-024-03
PAGE 2
BACKGROUND AND COMMENT:
1.0 In an in camera meeting, dated September 30, 2002, a property owner's
representative addressed Council regarding a property standards order which
was carried out. The costs relating to the order were invoiced to the property
owner. The intent of this report is to codify existing practice and incorporate
improved policies into a formal Council policy with respect to collection of costs
relating to property standards orders.
2.0 As a matter of practice, the Finance Department receives notification from the
Clerk's Department that a property standards order has been carried out and the
resulting costs incurred by the Municipality are detailed. Upon receipt of this
information, an invoice is generated to bill the property owner for the full costs of
remediation of the property in compliance with the order issued. The invoice is
subject to existing general accounts receivable collection policies, whereby, if the
invoice remains unpaid after 30 days interest is added at 1 % per month. With
respect to property standards orders, if an invoice remains unpaid, it is added to
the property tax roll and can then be collected as taxes with 1 %% per month
interest charges.
3.0 The delegation to Council was requesting that Council waive the interest and that
the balance owing not be added to the tax roll as the owner was asserting that
the debt resided with the tenant on the property.
4.0 It is existing Council policy and practice not to waive interest on outstanding
invoices nor outstanding taxes. This was however, the first circumstance
whereby a property owner was requesting that the amount not be added to the
tax roll. The problem with this, from the Municipality's perspective is twofold.
Firstly, the Municipality is not in the position to play an intermediary role between
a taxpayer and a taxpayer's tenant. Any debts between those parties are their
own responsibility and subject to appropriate legal recourse. Secondly, if the
amount outstanding is not added to the tax roll then it does not appear as a lien
on the property. Therefore, if the property is sold or changes ownership in any
fashion, there is a risk that the property standard order debt would remain
uncollected.
13G8
REPORT NO.: FND-024-03
PAGE 3
CONCLUSIONS:
1.0 It is therefore recommended that the attached policy be endorsed to codify sound
collection practices with respect to collection of property standards order costs.
Attachment:
Attachment "A" - Policy Regarding Collection of Costs Relating to Property Standards
Orders
MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO, L 1C 3A6 T(90S) 623-3379 F(90S) 623-4169
1309
ATTACHMENT "A"
POLICY REGARDING COLLECTION OF COSTS RELATING TO
PROPERTY STANDARDS ORDERS
1.0 The intent of this policy is to codify existing practice and incorporate
improved practices into a formal Council policy with respect to
collection of costs relating to Property Standards Orders.
2.0 If a Property Standards Order is issued and is not complied with,
the next step for the Municipality is to perform the clean-up
pursuant to Section 15.4 of the Building Code Act, 1992 SO.C.23.
There can be substantial costs incurred by the municipality
including actual clean-up or demolition costs as well as costs for
duty officers to maintain peace during the clean-up activity. The
municipality can then recover these costs from the property owner
and can add the costs to the tax roll and collect in the same manner
and with the same priorities as municipal real property taxes.
3.0 If an amount outstanding is not added to the tax roll then it does not
appear as a lien on the property. Therefore if the property is sold or
changes ownership in any fashion, there is a risk that the property
standard order debt would remain uncollected.
4.0 As a result, any property standards order costs will be added
immediately to the tax roll and a notification will be sent to the
property owner forthwith, by the tax department outlining the
arrears balance.
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