By Mike Cerutti

This is the number one question I get as the Building and Codes Inspector of Herrin, Illinois.  Most of the abandoned properties in Herrin are due to a foreclosure.  Currently there are approximately, 105 abandoned properties in Herrin.  The Building and Codes Department of Herrin has NO STAFF, NO EQUIPMENT, and NO BUDGET for the upkeep of abandoned properties.  This isn’t just a problem in our community but this is a nation-wide issue.

Properties in mortgage foreclosure is one of the main challenges to our community, which usually results in the tenant leaving the property vacant or abandoned. When a property is in foreclosure, the party responsible for maintaining it is often unknown, un-aware, or unwilling to expend the time or effort to do so. Frequently, the culprit is not the homeowner, but the lender who becomes the owner through a foreclosure.

A central problem is assigning the responsibility for care of the property. In many cases, homeowners vanish before the bank that initiated the foreclosure completes the process and legally takes ownership. That leaves local officials to either pursue absent borrowers with no ability to pay or to wrestle with banks that have limited authority to maintain the property.

Another common problem is the lengthy time periods imposed by state statutes on different stages in the foreclosure process (e.g., the time in which the owner has a right to redeem his or her rights to the property); the length of time that taxes must be delinquent before a sale can occur; and whether the state first requires sale of the liens or sale of the property outright.

Municipalities incur administrative costs as they search for owners, enforce codes, and oversee foreclosures, although they may recover some of these costs through fines or fees if an owner can be identified and compelled to pay. Vacancies also reduce local government revenues directly, because owners may walk away from their tax obligations, and indirectly, because of their impact on nearby property values and tax assessments. Although in some instances cities can recover this lost revenue through tax lien sales, if the property ownership reverts to the city, the city has no viable option other than demolition.

Demolition costs can vary widely based on several factors.  It can take 6-12 months to obtain a court order and title in order to be able to demolish abandoned or foreclosed properties. On average, the legal fees and demolition costs on a single family home in Herrin, Illinois, is $5,000-$10,000.

Since I began my job as the Building and Codes Administrator in 2008, eighty-five structures have been demolished directly by the city or by property owners and developers in coordination with the City of Herrin. In 2009, the city received a $10,000 grant from the Harrison Bruce foundation which was used to demolish two properties deemed to be a public safety hazard. One of those properties now has a new home and is occupied by new home owners.  The other property is now a vacant lot. The city has sought grants through the Neighborhood Stabilization Program, however, Herrin was not selected.

Through city occupancy inspections, building permits, fines and liens, the Building and Codes Department currently brings in approximately $20,000-$25,000 per year in revenue to the city. I would like to earmark this money toward creating a budget for the Codes Department that will enable this department to have additional resources to attack the issues surrounding abandoned properties.

When available, the city utilizes the Du Quoin Boot Camp work program to assist with maintenance of abandoned properties.  Also, when available, the city uses workers from Man-Tra-Con Corp. through their Summer Youth Program.  In addition to seeking grant funds and utilizing available work programs, I would also like to appoint an advisory board to assist with developing a comprehensive plan to rid Herrin of abandoned sites and turn these into new home or commercial properties that will create property and/or sales tax revenue for the city.