Redmond City Council to pardon some property owners with liens

Published 4:00 am Sunday, February 19, 2006

REDMOND – Some property owners with liens on their houses because previous occupants failed to pay utility bills will be pardoned, the Redmond City Council decided last week.

In years past, there was no convenient way for title companies to check if houses had liens on them before they were sold, said Chris Earnest, Redmond finance director.

This led some home buyers to purchase houses not knowing they came with liens incurred by prior owners or tenants, Earnest said.

That changed last November when Redmond created an online docket of liens and notified property owners of liens on their homes.

Many homeowners who had nothing to do with the cause of a lien found out they were responsible for paying it. Many believed this was unfair, Earnest said.

”We went from zero enforcement … to 100 miles an hour,” he said.

At Earnest’s recommendation, the Redmond City Council decided Tuesday to waive the old liens for these homeowners.

The council did not decide whether property owners who have already paid off a lien incurred under previous ownership would be reimbursed, but City Councilor Gary Lynch said he didn’t think the council would agree to any reimbursements.

And a whole other class of property owners – landlords – isn’t off the hook for their liens because city officials said they are responsible for their tenants.

Gilbert Shepherd, 58, bought a house in north Redmond with plans to rent it out and supplement his income doing odd jobs, such as core drilling or operating machinery, he said.

It’s worked out well, but last year Shepherd learned about a lien on his house caused by unpaid utility bills from his former tenants, who were long gone, he said.

State statutes and Redmond city code give the city the right to put liens on the property of landlords as a result of the unpaid utility bills of their tenants, but that doesn’t make it right, Shepherd said.

”The city is the one that’s selling this person the services,” Shepherd said. ”It really should be up to them.”

If the city were to take a deposit, just like landlords do, it could cover its bases and not drag landlords into the process, Shepherd said.

But Earnest said the city doesn’t want to impose a deposit because that would create an additional financial barrier before someone can rent a home.

The city used to take a deposit, but stopped the practice in 2000 for reasons Earnest isn’t sure of.

”And just because we take a $75 deposit, that may not cover their final bill,” Earnest said.

Instead, city officials said part of the job of being a landlord is taking responsibility for tenants.

”There are risks that go with renting property,” said City Councilor George Endicott. ”As the owner of the property, you are responsible for the bills incurred on the property.”

However, the city said it could do a better job of informing property owners of their responsibilities, Earnest said.

Last spring, the city began sending notices to landlords when customers opened an account, describing the responsibilities of the landlord to pay utility bills if the customers don’t, Earnest said.

In the next few months, landlords will also begin to receive copies of shut-off notices and outstanding bills if customers close an account and don’t pay within 30 days, Earnest said.

”We have put these in place to make sure landlords are fully aware of this responsibility,” Earnest said.

The online docket of property liens can only be accessed by city staff or by those who pay to use it, but you can learn if a lien has been placed on a property by contacting the city of Redmond at 923-7731 or visiting 716 SW Evergreen Ave.

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