Volunteer Attorney Opportunities

Help Fight Neighborhood Blight

Michael Duffy, Esq.Legal Aid of Western Missouri

920 Southwest BoulevardKansas City, Missouri 64108

(816) 474-9868Fax (816) 474-7575

mduffy@crn.org

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Abandoned Housing ActWhat is it?

MO Statute, §447.620 et al.—allows a nonprofit organization to acquire vacant, blighted house that meets the following conditions…

What are the conditions?Unoccupied for at least 6 months by a lawful occupantTax delinquentNuisance

Abandoned Housing Act

How It Works• Ground Work:

– ID properties that meet the AHA requirements (unoccupied, tax delinquent, nuisance)

– Conduct Property Research (Owner? Tax delinquency amount? Assessments?)

– ID rehabber to abate code violations, make property habitable & if possible, estimate cost to rehab

– Figure out who will pay costs associated with the lawsuit (rehabber? association?)

– Draft Petition (starts the process in court)

Abandoned Housing Act

Case Processing[Uncontested Cases]

Request Title Report [$200-$300/ 3-5 days] Avoid clouds in title, determine all owners necessary to sue, verify all

city assessments/liens File Petition/Suit with Court [$112, sometimes $0] Give Notice to Owners of Filing Suit

Service by Mail ($0); OR Personal Service ($30 - $50); OR Service by Publication ($200- $250)

Abandoned Housing Act

Case Processing[Uncontested Cases]

Do Rehab & File quarterly reports [cost & time varies]

Upon completion of rehab, move court for deed Court issues deed about three weeks after motion

Abandoned Housing Act

Keep in Mind• Time:

– filing to possession: 3 months (uncontested cases)

– filing to ownership: 6 – 7 months (uncontested cases)

• Costs: – High: $800 + City

Assessments/Liens/Delinquent Taxes/Rehab

– Low: $600 + City Assessments/Liens/Delinquent Taxes/Rehab

Abandoned Housing Act

• Break Down of Costs– Filing fee - $112– Service of Process - $0-$50-$250– Notice of Lis Pendens - $24– Title report -$200-$300 – Record deed - $24– Release Lis Pendens - $24– Rehab – $?

• [exterior/interior code violations, foundation, roof, windows, insurance during rehab, materials, labor, etc]

– Back taxes – $? – City Assessments – $?

• Weeds, trash, board ups, etc

Before

After

Legal Aid of Western Missouri Abandoned Housing Act Results

Approximately 110 lawsuits brought in past seven years

70% of owners/successors repair and occupy property

Approximately 20% nonprofit acquisition to repair and gain ownership

Approximately 10% still in negotiation or owners currently repairing

Abandoned Housing ActConsiderations

• Filing Fees– Who pays?

• Suit is filed in name of association (not rehabber) – Title would go to association– “Prenup”: contract between rehabber and association

• Rehabber to finance rehab• Rehabber to maintain builder’s risk insurance• Create detailed scope of work/rehab plan• Association to give title to rehabber upon Court Administrator’s

Deed• Legal Aid attorney represents association

• Damage or vandalism to property during rehab• Home doesn’t sell – renters? Who is stuck with the

property?• Owner can come back

– Would have to pay all expenditures back• Quarterly Reports

Advantages of the AHA Promotes property maintenance

Encourages surrounding homeowners to rehab and reinvest in their own property

Helps stabilize neighborhoods by remediating blight

Creates affordable housing and increases owner-occupancy

Gives neighborhoods leverage as owner must either reinvest in the property or lose it