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ENB-12.09 - Collections and Foreclosure Process Redemption Interest Rate and Redemption Penalty Rate

COLLECTIONS AND FORECLOSURE PROCESS REDEMPTION INTEREST RATE AND REDEMPTION PENALTY RATE

Binding City Policy

BCP-ENB-12.09


PURPOSE

Section 1. The City Council finds:

1.  Code Chapter 5.30 Collections and Foreclosures Process establishes a one-year period from the date a property is sold in a foreclosure sale, during which any person with a recorded interest in that property has the right to pay in full the foreclosure sales price plus redemption interest and redemption penalties, and upon such payment reclaim the property. This one-year period is called the redemption period.

2.  City Code Section 5.30.210 (F) requires that the interest rate and the penalty charged during the redemption period each be set by ordinance.

3.  To achieve the purpose of Code Chapter 5.30, Treasury recommends that the redemption interest rate be set at 12.0%, and that the redemption penalty be set at 20.0%.


POLICY

NOW, THEREFORE, the Council directs:

a.  The redemption interest rate be set at 12.0% and the redemption penalty be set at 20.0%.

b.  This ordinance is binding City policy.

Section 2. The Council declares that an emergency exists because a later implementation date would delay the City’s efforts to foreclose on properties that are causing health, safety and livability concerns in Portland neighborhoods; therefore, this ordinance shall be in full force and effect from and after its passage by the City Council.


HISTORY

Emergency Ordinance No. 187982, passed by City Council and effective September 14, 2016.