DATE: October 2, 2023
TO: Council Economic Development Committee
FROM: Development Services Director
SUBJECT: Vacant Property Monitoring Program Update
RECOMMENDATION
That the Council Economic Development Committee (CEDC) reviews this update on the Vacant Property Monitoring Program and Ordinance and provides feedback to staff.
SUMMARY
The Code Enforcement Division's Vacant Property Monitoring and Inspection Program (VPM), initiated under Article 29 - Vacant Property Ordinance, has made substantial progress in addressing the challenges associated with abandoned residential properties. It was designed to address the key concerns that hindered staff's ability to enforce regulations on such properties. This report provides an update on the program's background, milestones, updates and ongoing challenges, taking into account the unique circumstances faced in its early stages due to the COVID-19 pandemic, and other major events.
BACKGROUND
The Vacant Property Ordinance and Monitoring Program (VPM) were created with the goal to address regulatory gaps in the response to neglected vacant properties and to address conditions of neglect and deterioration of buildings and properties in the City of Hayward.
Adopted by City Council October 29, 2019, under Article 29- Vacant Property Ordinance, the ordinance, and associated monitoring program established general standards and compliance policy to assure accountability for neglected vacant properties, combat community health, and safety concerns, ensure public safety, and encourage economic development through owner engagement.
At the March 24, 2022, Council Economic Development Committee (CEDC) meeting, staff requested feedback on the Vacant Property Monitoring Program and ways the program could be more effective given the setbacks of the COVID-19 pandemic and limited dedicated staffing.
Staff took the CEDC recommendations and developed a team-based approach to monitoring and inspections, led by designated Senior Inspection staff with support from two additional general inspectors to facilitate program changes and ensure continuous monitoring and compliance with established standards.
Newly established monitoring practices focused on two components, as noted below, to continually inspect, and monitor identified neglected vacant properties on a more frequent basis with consideration of existing staff workloads and lack of dedicated staffing:
Planned quarterly team-based inspections
Quarterly Reporting to Division Management
Since establishing revised practices, Code Enforcement staff have worked diligently to ensure effective monitoring and compliance routines provide an element of continual review and conditions assessment on neglected vacant properties throughout Hayward. These measures ensure the continuous observance and monitoring of vacant properties throughout the City, promote compliance and community safety and help facilitate effective change through proactive education and engagement with property owners.
DISCUSSION
Quarterly Inspections,
Since the program's launch in October 2020, the Vacant Property Monitoring Program has been responsive to community concerns, effectively addressing neglected vacant properties. In total, the program has handled 179 complaints, resulting in the establishment of 125 confirmed cases since its inception. Notably, from January 2023 onwards, 31 new cases have been opened, with May 2023 marking the highest monthly count of new cases, with 10 confirmations. Currently, the Division manages 50 active vacant property cases, six (6) of which are identified as commercial properties within what would be considered downtown Hayward.
The program includes a vital registration component. The registration component requires neglected vacant property must be registered with the Code Enforcement Division's monitoring program. In 2022, 28 properties were invoiced for registration, while in the 2023 calendar year, 40 properties were invoiced for annual registration, totaling $102,000 in fees. An additional 10 properties have been identified for 2024 billing. As of August 1, 2023, $31,875 in fees remained unpaid, but these are scheduled for collection through annual tax assessment anticipated to take place between November and December 2023.
Before implementing our planned quarterly team-based inspection strategy, all responsibilities for response, monitoring, and registration were placed on a single senior staff member. This approach limited our monitoring and inspection frequency due to workload constraints. However, with the introduction of the team-based inspection approach, we have significantly enhanced our capabilities. Senior staff can now concentrate on direct case management, compliance strategies, (which include conducting research on vacant storefronts for historical permit compliance), and registration oversight, while general inspection staff conduct pre-scheduled quarterly inspections, increasing the frequency of monitoring and compliance engagement.
This increased monitoring frequency has had a substantial positive impact on property conditions and compliance with ordinance standards. In 2023 alone, despite emerging cases, we successfully closed 10 previously existing neglected vacant property cases with successful outcomes related to active reuse or new development. Examples include properties like 24011 Hesperian Blvd (formerly Toys R-Us building) and 1200 A St. (formerly Bank of America building).
To further incentivize compliance and address persistently neglected properties, the City has imposed penalties when necessary. Since January 2023, the City issued a total of $62,898.85 in penalties, with $33,892.25 scheduled for collection through tax assessments, demonstrating our commitment to enforcing compliance with property standards.
Looking ahead, considering the Division’s limited staffing and workload constraints, staff plans to continue monitoring neglected vacant properties on a quarterly basis, leveraging the team-based inspection strategy. Staff will also remain vigilant in ensuring that all eligible neglected vacant properties are properly registered and invoiced, thereby enhancing our ability to track and address these properties.
Quarterly Reporting
The Vacant Property Monitoring Program (VPM) underscores the importance of ensuring effective management and oversight of vacant properties within the City. As part of our commitment to program evaluation, proficiency, accountability, and access to crucial information, senior staff members are required to provide quarterly reports to Division Management. This report serves as a comprehensive quarterly overview of program activities, outcomes, and areas requiring heightened response.
Program Evaluation and Proficiency
The quarterly reporting process plays a pivotal role in program evaluation and proficiency, and it is an integral responsibility of senior staff members. It allows management to assess the effectiveness of our strategies, identify areas for improvement, and measure progress toward program objectives. Key components of program evaluation include:
Monitoring and Inspection Effectiveness: Senior staff evaluate the outcomes of monitoring and inspection efforts, tracking the number of cases opened, closed, and their compliance status. This assessment helps us gauge the program's impact on property conditions and regulatory compliance.
Registration and Fee Collection: Staff assesses the registration process to ensure that all eligible neglected vacant properties are properly registered and invoiced. This enhances our ability to track and address these properties, contributing to program proficiency.
Accountability: Accountability is a core component of the VPM, and senior staff members play a central role in upholding it through:
Compliance Monitoring
Fee Collection
Transparency
Trend Analysis: The state analyzes data to identify recurring issues, emerging challenges, and shifts in vacant property conditions. This proactive approach allows the Division to adapt strategies to address evolving trends.
Elevated Conditions: Senior staff monitor properties presenting elevated health and safety concerns due to unwarranted occupancy or neglect. When identified, staff prioritizes these properties for immediate attention, ensuring swift and effective response through the City’s Nuisance Response Team, which includes various city departments such as Code, Police, Fire, Building and Community Services.
Challenges and Improvements:
While the Program has overcome some of the initial setbacks at its initial launch, such as the COVID-19 pandemic, additional delays in 2022 associated with the establishment and launch of new enterprise software (EnerGov) has created some challenges to due to training needs and case management software availability. The Code Enforcement Division acknowledges these recent hurdles. Staff is acclimating to this change, and while there have been initial pain points, we anticipate improvements in the reporting process and case management as we move forward. The transition to EnerGov improved the Division's data collection and reporting capabilities, enhancing overall program efficiency and effectiveness.
Moving forward as the program nears the end of its 2023 calendar year operations a third and final strategy will be implemented at the start on calendar year 2024, which incorporates a proactive strategy to identify, evaluate, and map all vacant properties in the City of Hayward. This will be a crucial initiative to enhance our Vacant Property Monitoring Program. It empowers staff to bridge program monitoring gaps associated with “reactive-only” protocols allowing staff to identify potential problem properties prior to complaints. This strategic approach reaffirms the City’s dedication to a vibrant and well-maintained community.
NEXT STEPS
Following this meeting, staff will take into consideration any comments and feedback from the CEDC pertaining to activity and updates related to the VPM and compliance and engagement strategies. Staff will move forward with reviewing and incorporating any recommended alterations to program efforts.
Prepared by: Phillip Nichols, Code Enforcement Manager Recommended by: Sara Buizer, Development Services Director Approved by:
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Kelly McAdoo, City Manager