SALISBURY – The Salisbury City Council passed a resolution this week approving the establishment of a Foreclosure Task Force to establish, evaluate and review the city’s response to foreclosures and to recommend appropriate policies and/or legislation to address the impact of foreclosures in the city.
“As we all know, the rate of foreclosures is high across the country, state and locally,” Acting City Administrator Tom Stevenson said.
According to the resolution, “the City of Salisbury is well aware of the economic, community and quality of life impacts that foreclosures are having in the City of Salisbury, Wicomico County and the region and has undertaken several legislative, policy and funding initiatives to support efforts to encourage retention of homes and new homeownership opportunities.”
The resolution furthers, “according to the Maryland Department of Housing and Community Development Office of Policy, Planning and Research, Property Foreclosure Events in Wicomico County for 2013 Q3 (third quarter of the fiscal year) have increased 463.7 percent over 2012 Q3; Notices of Mortgage Loan Default Issued in Wicomico County for 2013 Q3 have increased 382.7 percent over 2012 Q3; Notices of Foreclosure Sales Issued in Wicomico County for 2013 Q3 have increased 6290.0 percent over 2012 Q3; Lender Purchases of Foreclosed Properties in Wicomico County for 2013 Q3 have increased 79.1 percent over 2012 Q3; and Salisbury’s 21801 and 21804 Zip Codes have been identified as ‘High Hot Spots’ for Foreclosure Activity within the State of Maryland.”
The city hopes the task force will be able to study all matters related to foreclosure and come up with suggestions and guidance on how to cope with the new trend. The resolution the task force will craft, “the city’s response to foreclosures and to recommend appropriate policies and/or legislation to address the impact of foreclosures in the City, including an emphasis on foreclosure prevention, maintenance of foreclosed properties and Court and City administrative policies and procedures for use in the foreclosure setting.”
The Foreclosure Task Force will be composed of nine members and will include the Administrative Judge of the Circuit Court for Wicomico County or her designee, two representatives of banks or mortgage companies operating within Salisbury with experience in residential lending, one representative of a not-for-profit housing organization providing foreclosure related services within Salisbury, one representative of the Salisbury realtor community, two residents of the city, the president of the City Council or the president’s representative, as a non-voting member, and the deputy director of the Salisbury-Wicomico Department of Planning & Zoning, as a non-voting member.
Mayor Jim Ireton will appoint the members of the task force and the task force will choose its chair from amongst the nine appointed members.
The task force will present its evaluation and recommendations to the Mayor and City Council on or before Sept. 1, 2014 and will then reportedly dissolve.
Councilwoman Terry Cohen made a request that the administration makes it clear of what the task force’s scope of work is and have the task force include associated price tags with any recommendations made for the city that cannot be done through partnerships or with the resources at hand. Also, the task force is to check with the city attorney over the question of a clean title on a foreclosure.
“Many of these foreclosures have a title mess … if there is anything like that in their findings or recommendation I would like to see some sort of advisement as to what legally the ramifications are for us because while they may look like they have enough funding for expense they might have a backend expense,” Cohen said.
Council President Jake Day added, having read the Prince George’s County Foreclosure Task Force Report, which Salisbury’s task force is modeled after, the primary expense and funding source for that expense was related to various programs to find alternative funding for foreclosures. One of those funding sources is the settlement the State of Maryland, and many other states, have with banks.
“Just a week ago there was a new settlement that was reached for $88 million to the State of Maryland from a number of banks,” Day said. “This may be an opportunity for the Foreclosure Task Force, once it is formed, with the State of Maryland and Attorney General’s Office to start to identify whether or not we are a potential applicant for some of those funds. In the previous settlement, our city received just over $1 million through Salisbury Neighborhood and Housing, and they may be the appropriate recipient, but I think there is an opportunity of funding there.”
The council voted unanimously to approve the task force’s formation.