April 18, 2017

For Immediate Release

Prince George’s County Councilman Mel Franklin Proposes ‘Zombie’ Foreclosure Legislation

Three Different Bills Proposed to Hold Banks More Accountable for Vacant and Foreclosed Properties

Contact: Mel@melfranklin.net

Upper Marlboro, MD – At the Council’s Tuesday, April 18, 2017 Session, Councilman Mel Franklin (D-District 9) will propose Council Bill 39 (CB-39-2017), the third in a package of 3 bills designed to address poor property standards at vacant and foreclosed properties in the County.  Prince George’s County was one of the worst hit counties in the nation by the 2008 housing crisis and still has a significant inventory of vacant and foreclosed properties, which often suffer from poor maintenance.  CB-39-2017 will authorize the Department of Permitting, Inspections, and Enforcement (DPIE) to establish a Vacant and Abandoned Residential Property Registry and to hold first lien mortgage holders, often banks, directly responsible for the maintenance of vacant and abandoned properties with stiff fines.  Councilman Mel Franklin released the following statement:

“Our communities continue to feel the lingering impact of the Great Recession with a large number of vacant and foreclosed properties spread across the County.  Due to unclear ownership and a lack of accountability for these properties during and after the foreclosure process, these properties often fall into disrepair by the banks and nameless investors who own or control them, which damages the property values of our existing neighborhoods.  This vacant and foreclosed property legislation will make it clear that these banks and investors are responsible for these properties before and after the completion of the foreclosure process and hold them accountable for maintaining them.”

Earlier this session, Councilman Franklin proposed CB-11-2017, which requires banks to promptly record ownership and pay transfer and recordation taxes upon finalizing foreclosure purchases, and CB-12-2017, which imposes stiff fines for banks and other responsible parties who do not sign up for the State Foreclosed Property Registry.  CB-11-2017 has been referred to the Public Safety & Fiscal Management Committee (PSFM) and CB-12-2017 has been referred to the Transportation, Housing, and Environment Committee.  CB-39-2017 will be referred to PSFM at Tuesday’s session.  All 3 bills are expected to be considered in their respective committees by June after the Council’s adoption of the County’s budget in May.

CB-39-2017 can be found here: https://princegeorgescountymd.legistar.com/View.ashx?M=F&ID=5111282&GUID=7B43CE39-AFAF-40CE-90BB-8E69E7CAB6EC

CB-12-2017 can be found here: https://princegeorgescountymd.legistar.com/View.ashx?M=F&ID=4971255&GUID=DE09AB7D-634C-4036-81BA-06E99A2A3992

CB-11-2017 can be found here: https://princegeorgescountymd.legistar.com/View.ashx?M=F&ID=4971718&GUID=1E9C2DD3-F56B-47BB-BD93-15290BB6F199

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