ADMINISTRATIVE REPORT
MEETING DATE: June 11, 2026 AGENDA CATEGORY: NEW BUSINESS
TO: Housing and Community Development Committee
FROM: Gary Hallen, Assistant City Manager
Jason Cater, Economic Development Manager
DATE: June 1, 2026
SUBJECT: Lien Forgiveness Discussion
[Document Description]
RECOMMENDATION:
Staff recommends the committee receive and file.
BACKGROUND:
A referral was made regarding establishing a framework on a potential lien forgiveness program. The program would only include liens the City has placed on a property and would focus on properties in areas that need more economic growth, as well as business growth, improving quality of life, and diversifying our local economy.
The program may potentially assist in the transfer of property to a future owner that can then turn said property into a job generator and meet our goals for Economic Opportunity for All, Community Character and Quality of Life, and Safety and Resilience through continued investment in economic growth, workforce opportunity, infrastructure planning, and business development efforts.
City staff will share the outcome of other cities that currently conduct a similar program and where they have seen successes or concerns.
As a general overview of City placed liens, below is an outline of what is a lien, how it occurs, what are the typical liens we place on properties, and other processes.
What is a lien?
Any legal claim or right for work done and not fully paid on a property. o Some typical liens include mortgage or bank loans, mechanics liens from a contractor, child support, civil lawsuit, IRS etc.
o City has very specific liens in which we have control over. The above-mentioned liens the City has no control over the removal of. The list of lien’s the City has control over is below.
How does a lien occur?
Staff does some code, legal or infrastructure type work for the property. The property owner doesn’t mitigate or pay the fee for that work (i.e. Weed Abatement). Staff bills the property owner more than two times for the said work. Once significant time has gone by, the property owner is notified that the
lien is going to be placed on their property by way of a City Council Resolution. After City council action, staff records the lien and the Tax Collector at the County places it on the property owner’s tax bill.
What is a typical City only lien?
Administrative Fee’s Liens
o Staff time for administrative processes incurred regarding citations of properties Property Certificate of Sub-standard Lien
o Clear trash and debris
o Demotion
o Fix the substandard conditions or board ups
o Weed Abatements
o Unpaid Fee on Trash
o Unpaid Sewer connection fees
o Unpaid building permit fee
Areas to consider for establishing a Lien Forgiveness Program Focus efforts on areas in the City in which your Council desires to see property ownership change hands to spur economic activity.
Identify/focus on certain properties that are catalyst properties to see change. Target certain land uses or zoning within the City that can only have the lien forgiveness
Area of concern
Certain things that are out of the City’s control such as other lien holders, such as banks, State or Federal agencies, and their unwillingness to remove liens. County Tax Collector and the tax default property process Properties that are in family owned or land trust in which it’s challenging to connect with the owner on record.
FISCAL IMPACT:
The loss of potential payback of liens could have an impact on the City’s loss of revenue, however it also could generate a potential increase in long-term property tax which wouldn’t happen without the lien being forgiven.
COUNCIL GOAL:
Innovative and Efficient City Government
Reliable Infrastructure
Safety and Resilience
ATTACHMENT:
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