SB 2581

ON APRIL 15, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 2581, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, authorize the governing body of a municipality to adopt an ordinance to determine the number and condition of vacant properties within its jurisdiction and establish a vacant property inventory program and prescribe a vacant property inspection district that includes properties that are either deteriorated or in the process of deteriorating for purposes of ensuring compliance with applicable local housing, building, plumbing, electrical, fire, health, or related codes and to promote the health, safety, and welfare of its citizens. The vacant property inventory program must only include subject properties within a vacant property inspection district that has a defined percentage of vacant properties in a vacant p roperty inventory, and only apply to vacant properties within a proposed vacant property inspection district based upon a finding by the municipal governing body of all of the following:  There is a need to protect the public health, safety, and welfare of the occupants inside the proposed vacant property inspection district.  Five or more properties within the proposed vacant property inspection district are either deteriorated or in the process of deteriorating due to continued vacancies, or the individual units are in need of inspection by the municipality to prevent further deterioration, based on documentation by municipal inspectors, taking into account the number, age, and condition of vacant units inside the proposed vacant property inspection district.  The inspection of properties inside the proposed vacant property inspection district by municipal inspectors is necessary to maintain the health, safety, and welfare of tenants and other residents living in the proposed vacant property inspection district. This amendment does not authorize a municipality to adopt a municipality-wide vacant property inspection district, and a municipal governing body must limit the boundaries of the proposed vacant property inspection district to the areas of the municipali ty that meet the criteria as described above. This amendment authorizes the governing body of the municipality to designate a municipal department or agency to serve as the public authority to perform all or part of the inspection duties authorized. This amendment requires the municipality, if a municipality establishes a vacant property inventory district, to establish a schedule of fees or special assessments that may be assessed against owners of inventoried properties to cover the costs of bligh t, fire, safety, and police monitoring associated with vacant properties within the inventory district, rather than passing those costs on to residents and small businesses who reside or operate outside of the vacant property inspection district. The vac an t property inventory must include the contact information of the owners of the inventoried properties so that an owner of vacant property within the district may be contacted in cases of arson, break-in, litter, overgrowth, criminal activity, and other si milar issues, or for the issuance of a standing "no trespassing"" order. The fees and assessments collected from owners of properties within the vacant property inventory district must be used to facilitate the maintenance of the inventoried properties an d improvements to such properties, functioning as a base service charge that ensures owners of vacant properties contribute to the public safety and maintenance of inventoried properties when such properties are not generating jobs, housing, or sales taxes. Th is amendment provides that fees or special assessments assessed must:  Not be deemed a tax by the municipality. Such fees and assessments must be tied specifically to the costs of administering the vacant property inventory program for a vacant property inspection district.  Only be assessed against owners of inventoried properties with vacant structures which lack utility services or occupancy for more than one year. Vacant property fees or special assessments must not be assessed for a property for which an active building permit has been approved for renovations or that is actively listed for sale or lease at a fair market value for at least one year from the date of permit issuance or listing for sale. This amendment requires the owner of a vacant property within a vacant property inspection district to register the property and the owner's contact information with the municipality within 30 days of the date such property becomes vacant and must pay a fee or special assessment annually to the municipality to satisfy the costs of public safety, maintenance, inspections, and code enforcement in an amo unt of not more than $500, according the schedule of fees or special assessments adopted by the municipality."