Board approves stipulation to reduce lien to $1,500 if property is brought into compliance by Aug. 1

The Municipal Code Enforcement Board approved a stipulation agreement on April 23 that would reduce a large outstanding lien on 108 Kenwood Avenue to $1,500 provided the property is brought into compliance by Aug. 1, 2025.

City staff explained that the full lien amounts were large and reflected ongoing penalties and that a stipulation (an agreement between the buyer and the city) is sometimes used to facilitate a real estate transaction: a reduced amount is held or agreed so a title company can close while funds are placed in escrow to be released when the property is brought into compliance. Staff said the $1,500 number represents estimated city investigative and administrative costs and that the city would not record a release until the property is actually brought into compliance and payment is made.

Applicant James Hogan said the buyer intends to close and pay the reduced amount at closing and then use construction permits and draws to complete repairs; he requested additional time to secure permits and finish work. The parties discussed alternative schedules and agreed to amend the draft stipulation to set Aug. 1, 2025 as the compliance date that secures the $1,500 reduction; if compliance is not achieved by the agreed date, staff said the reduced agreement would be void and the larger outstanding lien would remain.

The board voted to accept the stipulation agreement with the amended compliance date of Aug. 1, 2025. The motion requires that the reduced amount be paid within 30 days of the date the property is determined to be in compliance; staff reiterated that the city will not record a release until it confirms compliance and receives payment. Board members and staff also discussed the practicalities of permitting time, draws and escrow arrangements with title companies to allow the buyer to proceed.