Vacant building registration

January 16, 2008

Back on September 23, 2007 we posted here about a Virginian-Pilot article which addresses the negative affects of abandoned housing in Norfolk and Portsmouth. We followed that post with another, on November 28, 2007, about how Norfolk was going to lobby the state for tools to combat vacant houses.

Virginia Code currently allows Cities, by ordinance, to require the owners of buildings that have been vacant for a continuous period of 12 months or more to register such buildings on an annual basis and may impose an annual registration fee not to exceed $25. Failure to register results in a $50 civil penalty. Failure to register in conservation and rehabilitation districts or in other areas designated as blighted results in a civil penalty of not more than $250. Norfolk does have a vacant building registry ordinance and it is in line with the above penalties.

SB162 is a proposed bill currently in the Senate Committee on Local Government . Its sister bill in the House, HB1210 (proposed by Delegate Ken Melvin, who represents a part of Norfolk), is in the House Counties, Cities and Towns Committee. They propose increasing the $50 penalty to a $500 dollar penalty and increasing the $250 dollar maximum penalty in conservation and rehabilitation areas to a $2500 maximum.

Currently, the cost of maintaining and policing a vacant building registry is prohibitive. The City could spend hundreds, if not thousands, of dollars chasing down violators with the end result being a $50 or $500 penalty. Hopefully the proposed changes will make having a registry more viable and in turn reduce the number of vacant, blighted buildings.


General Assembly Update: Payday Loans

January 15, 2008

The Virginia Payday Loan Act was first adopted by the Virginia General Assembly in 2002 and exempted the industry from the prior 36-percent interest rate cap. Virginia caps the interest rate on a one-week loan at 780 percent and 390 percent for two-week loans. As bad as the interest rate may be, the worst part is the debt trap that the borrower gets caught in. Payday loans are designed to trap the borrower into repeat loans.¹

There are currently a number of bills filed in the General Assembly attempting to “fix” the Payday Loan issues in Virginia. I have attempted to summarize them, provide links to them, and let you know where those bills are in their journey through the General Assembly.

HB12, HB249, HB1377, HB1404, SB24, SB279, SB238, and SB670 all propose limiting the annual interest rate for Payday Loans at 36%.

HB12, HB249, HB1377, HB1404: In House Commerce and Labor Committee
SB24, SB279, SB238, SB670: In Senate Commerce and Labor Committee

SB25, SB156, SB278, and HB730 propose repealing the Payday Loan Act entirely with effective dates of July 1, 2008, July 1, 2010, January 1, 2009, and July 1, 2010 respectively.

SB25, SB156, SB27: In Senate Commerce and Labor Committee
HB730: In House Commerce and Labor Committee

HB176 Requires the creation of an internet accessible statewide database of payday loans.   Lenders would be required to query the database to determine whether the borrower is eligible for the loan. The database would be paid for by a 50 cent fee added to each payday loan. HB1103, HB1352, and SB588 would create the same database as above as well as an Extended Payment Plan; they would change the minimum term of a payday loan from seven to 14 days; require a one day waiting period between the repayment of a loan and making a new loan; and other tweaks.

HB176, HB1103, HB1352: In House Commerce and Labor Committee
SB588: In Senate Commerce and Labor Committee

HB189 gives localities the power to regulate the interest rate and number of payday loans allowed within their jurisdiction.

HB189: In House Commerce and Labor Committee

Thanks to Waldo Jaquith for creating Richmond Sunlight, an invaluable tool in tracking these bills and the Virginia General Assembly.