Committee moves most Home Equity Theft Act properties to committee reports; Jackson Street parcel sent to full council for legal review

The Lawrence City Housing Committee reviewed multiple surplus-property items subject to the Home Equity Theft Act and decided to table most and forward one urgent parcel to the full City Council for legal review.

Charlene Pasquale, acting director for community development and the city's asset officer, explained the special procedures for properties affected by the Home Equity Theft Act and said the city must report back to the court within a 14-day timeframe after a foreclosure judgment on whether the city intends to keep the property.

Pasquale told the committee these properties are now in the city's inventory because of tax-title and foreclosure processes and that the Home Equity Theft Act requires a modified disposition process that typically uses a realtor and appraiser; she said the city will issue RFPs to contract for those services.

On a time-sensitive parcel at 266-272 Jackson Street (Tax Map 111, Lot 1), Pasquale reported an updated assessed value of $151,600 and said there is a foreclosure judgment issued June 4; she later confirmed the amount owed to the city is $47,010.71. The parcel is a vacant lot in a Business-2 zone and is subject to a judgment lien; staff said the foreclosure and related deadlines make it urgent.

Committee members asked whether the city would retain the property for municipal use (for example, parking) or keep it temporarily to recover owed taxes and then dispose of it. Pasquale said departments had already indicated no internal interest for municipal use and that the typical process is to keep property to recover taxes and then dispose of it through direct disposition, an RFP, or a realtor-led sale; she emphasized the city must tell the court whether it will keep the property.

Committee members also requested clear legal guidance on whether the council has one "bite of the apple" or two on surplus-declaration steps and asked that the city attorney and the attorney handling Home Equity Theft Act turnarounds be present at the full-council meeting to answer process questions. One councilor moved that the Jackson Street parcel be sent to the full council as a committee report with the explicit request that the city attorney attend; the motion passed.

Most of the other Home Equity Theft Act properties on the agenda were tabled or grouped as a block for tabling because they were not subject to immediate foreclosure timelines.

What happens next: the committee sent the Jackson Street item to the full City Council as a committee report and asked staff to invite the city attorney and outside counsel for the turnaround process to answer legal and procedural questions; other items will return later as needed.

Why it matters: the Home Equity Theft Act imposes deadlines and procedural requirements when municipal governments inherit tax-title properties; the decision affects whether the city keeps property to recover taxes or disposes of it and how soon legal counsel must advise council members.