Sean C. Morgan
The impact of Measure 37 on Sweet Home remains an unknown, but the city is working on a process for persons who want to make claims.
The measure requires governments to compensate property owners for loss of property values due to government regulation, or the government can waive the regulation.
“Potentially, every property in the city is affected by Measure 37, maybe not for past action, but certainly for present actions,” Community Development Director Carol Lewis said, and any regulations the city passes in the future could be affected by the measure.
The city has one woman in her 90s who was born where she lives now, Lewis said. That could require the city to pay or go back to the regulations that were in effect when her family had the property.
Lewis is using the ordinance the city adopted under the similar Measure Seven, which was ruled unconstitutional.
The ordinance will outline the process for making a compensation claim, Lewis said. Whether to abandon the regulation or pay the property owner will be the City Council’s decision on a case-by-case basis.
The ordinance will provide the council with all of the options available under state law, Lewis said. If she were to try to assess how many valid claims the city will have, she thinks it will be a fairly low number.
Initially, she believes claims may be on older regulations, but Sweet Home had planning regulations in effect as far back as the 1940s. But everything annexed in the early 1980s, east of Clark Mill Road was subject to county regulations.
Still changes have been made in the last 10 years that might affect property values, and after a couple of years, the city may see claims based on more recent regulations.
The fact that a new regulation is in place is the starting point, but that does not automatically mean that a property has been devalued, Lewis said. That is what must be proved to the council.
The process will require persons who file to provide complete information about the property, including ownership history, the regulatory change that created the value loss, the negative impact of the regulation and an appraisal to show the devaluation.
“I feel it’s specific enough that there isn’t any confusion,” Lewis said.
The city manager will review claims then request further information if necessary to complete the process, which must occur within 180 days of the claim. If the city expends money in completing the claim information, the city will bill the claimant.
The city will not be required to waive regulations or pay for value loss if the property was not devalued by the regulation; if the regulation is a part of a neighborhood’s codes, covenants and restrictions; or if a claim is not filed.
The city will require a fee up front, probably a deposit of $500, which will be used to notify neighbors within 300 feet of the property. Actual costs incurred in processing the claim will be deducted from the deposit.
The council held the first reading of the new ordinance on Tuesday night. It must read the ordinance three times before it can adopt it.