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HomeMy WebLinkAboutItem 15- Removing Discriminatory Covenants from Real Property AGENDA ITEM SUMMARY Meeting Date: 2/20/2024 Meeting Type: Regular Meeting Staff Contact/Dept.: Jeff Paschall/DPW Staff Phone No: 541-726-3753 Estimated Time: 10 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Foster an Environment that Values Diversity and Inclusion ITEM TITLE: REMOVING DISCRIMINATORY COVENANTS FROM REAL PROPERTY ACTION REQUESTED: Adopt the Resolution, directing the City Attorney to petition Lane County Circuit Court for the removal of discriminatory restrictions under ORS 93.270, for any and all City-owned real property that contains such restrictions. ISSUE STATEMENT: Homeownership is an important pathway to wealth creation and housing stability within the City of Springfield. Many older legal documents affecting title to residential real property include racial covenants and other discriminatory restrictions on ownership that attempt to limit habitation of property to only certain individuals, in contradiction to the Council’s adopted housing policies, goals, and strategies. ATTACHMENTS: 1: Council Briefing Memo 2: Resolution Regarding Discriminatory Covenants 3: Petition to Remove Discriminatory Covenants DISCUSSION/ FINANCIAL IMPACT: See Council Briefing Memo. M E M O R A N D U M City of Springfield Date: 2/20/2024 To: Nancy Newton COUNCIL From: Jeff Paschall, Community Development Division Director Erin Fifield, Community Development Analyst BRIEFING Subject: REMOVING DISCRIMINATORY COVENANTS FROM REAL PROPERTY MEMORANDUM ISSUE: Homeownership is an important pathway to wealth creation and housing stability within the City of Springfield. Many older legal documents affecting title to residential real property include racial covenants and other discriminatory restrictions on ownership that attempt to limit habitation of property to only certain individuals, in contradiction to the Council’s adopted housing policies, goals, and strategies. COUNCIL GOALS/ MANDATE: Foster an Environment that Values Diversity and Inclusion BACKGROUND: What are racially restrictive covenants? Many older legal documents affecting title to residential real property include discriminatory language or covenants, conditions and restrictions (known as CCRs) that restrict homeownership based on race. These restrictions, known as racial covenants, are illegal and no longer in effect. They began in the mid-19th century and continued into the mid-20th century. They were recorded when a developer subdivided the land or when a home was built, and the developer wanted to restrict the use or occupancy of the home based on a person’s race. Racially restrictive covenants are illegal and unenforceable. Racial covenants and other discriminatory restrictions are prohibited by the United States and are not legally enforceable, although they remain on title to many properties throughout the United States, in Oregon, and in the City of Springfield. The Supreme Court ruled against racially restrictive covenants in 1948 based on the Equal Protection Clause of the Fourteenth Amendment to the US Constitution. The ruling established that courts would not enforce the covenants but did not prohibit the inclusion of racial restrictions in covenants or prevent private enforcement. It was not until the passage of the Federal Fair Housing Act of 1968 that racially restrictive covenants became illegal. This means that those who own residential property developed before 1968 could very likely find language in their own CCRs that reflects our history of exclusion in housing. Attachment 1 Page 1 of 3 MEMORANDUM Page 2 The City of Springfield owns property with a racially restrictive covenant. In the search for land suitable for affordable housing, City staff came across a vacant residential piece of property in City ownership. In their due diligence to learn more about the property, staff obtained a Preliminary Title Report for the property and came across a racially restrictive deed restriction. In the CCRs of the Title Report, under the Current Exceptions section, there is a link to additional restrictions dating back to February 1945. (see image below) How to remove discriminatory restrictions Because so many racially restrictive covenants remain in deeds and private covenants and restrictions, some states, including Oregon, have adopted laws to help homeowners remove them from their deeds. Oregon laws authorizing a streamlined process for removing racial covenants from deeds are contained in ORS 93.270 (Certain restrictions in conveyancing instruments prohibited; restriction on right of action) and ORS 93.274 (Procedure for removal of discriminatory restrictions). ORS 93.274 provides a low-barrier process for property owners to petition the state’s circuit courts to fully remove offensive and discriminatory restrictions. The City is not involved in the process. The removal process is administered by the Circuit Court for the county in which the property is located, and it is free. Only the property owner can ask the Court to remove language from property records. The City Attorney has drafted a Resolution that would allow the City to petition Lane County Circuit Court for the removal of discriminatory restrictions under ORS 93.270, and for any and Attachment 1 Page 2 of 3 MEMORANDUM Page 3 all real property that contains such restrictions, for all property now owned or acquired by the City of Springfield. More information is on the City’s website This information has been added to the City’s website (Fair Housing - City of Springfield Oregon (springfield-or.gov) so that property owners in Springfield are aware that discriminatory covenants are a part of our history, and may still exist on current property deeds. The website includes information on how to contact the County Court and petition to have racial covenants or other discriminatory restrictions removed from property title. RECOMMENDED ACTION: Adopt the Resolution, directing the City Attorney to petition Lane County Circuit Court for the removal of discriminatory restrictions under ORS 93.270, for any and all City-owned real property that contains such restrictions. Attachment 1 Page 3 of 3 {00031963:1} PAGE 1 OF 1 CITY OF SPRINGFIELD, OREGON RESOLUTION NO. ___________ RESOLUTION DIRECTING THE CITY ATTORNEY TO PETITION FOR REMOVAL OF DISCRIMINATORY RESTRICTIONS ON TITLE TO CITY-OWNED REAL PROPERTY UNDER ORS 93.274 AND ENCOURAGING SPRINGFIELD PROPERTY OWNERS TO DO LIKEWISE WHEREAS, the Common Council of the City of Springfield (“Council”) finds that homeownership is an important pathway to wealth creation and housing stability within the City of Springfield; WHEREAS, many older legal documents affecting title to residential real property include racial covenants and other discriminatory restrictions on ownership that attempt to limit habitation of property to only certain individuals, in contradiction to the Council’s adopted housing policies, goals, and strategies; WHEREAS, racial covenants and other discriminatory restrictions are prohibited by the United States Constitution’s Equal Protection Clause and under ORS 93.270, and are not legally enforceable, although they remain on title to many properties throughout the United States, in Oregon, and in the City of Springfield; WHEREAS, ORS 93.274 provides a low-barrier process for property owners to petition the state’s circuit courts to fully remove offensive and discriminatory restrictions; and WHEREAS, the Council finds it in the public interest to support all Springfield property owners, including the City, to petition Lane County Circuit Court to fully remove such restrictions from title to any property whose title includes a racial covenant or other discriminatory restriction, NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD: Section 1: The City Attorney is hereby directed to petition Lane County Circuit Court for the removal of discriminatory restrictions under ORS 93.270, for any and all real property that contains such restrictions. This section applies to all property now owned by the City of Springfield or acquired by the City of Springfield after the effective date of this Resolution. Section 2: All property owners in the City of Springfield are encouraged to investigate whether their property contains discriminatory restrictions under ORS 93.270, and if so, to petition to Lane County Circuit Court under ORS 93.274 or other law allowing for the removal of such covenants. The City Manager is directed to provide informational resources to the public regarding filing a petition under ORS 93.274, to aid Springfield property owners in making such petition(s). Section 3: This Resolution will take effect immediately upon adoption by the Council and shall remain in effect until terminated, amended, or superseded by future Resolution of the Council. ADOPTED by the Common Council of the City of Springfield this ___ day of _________, ____, by a vote of _____ for and ____ against. ATTEST: __________________________ City Recorder Attachment 2 Page 1 of 1 CITY OF SPRINGFIELD EXAMPLE PETITION TO REMOVE DISCRIMINATORY RESTRICTIONS (ORS 93.274) In 2018, the Oregon legislature enacted ORS 93.274, providing a procedure for property owners to remove illegal discriminatory restrictions from property records (restricting the use of real property by any person or group of persons by reason of race, color, religion, sex, sexual orientation, gender identity, national origin or disability). If that process is successful, it concludes with the court entering a judgment removing only that part of the provision that is illegal. In 2023, the legislature adopted House Bill (H.B.) 3294, to further streamline the petition process under ORS 93.274. H.B. 3294 directs the Oregon Judicial Department to develop a form petition for statewide use by January 1, 2025. An earlier form of petition under ORS 93.274 is available from the Oregon Judicial Department, but it contains requirements that are no longer applicable under H.B. 3294. Per Springfield Resolution 2024-XX, the City of Springfield is providing an example form of a petition under ORS 93.274 as amended by H.B. 3294. Petitions related to Springfield properties must be submitted to the Lane County Circuit Court using the procedure detailed in ORS 93.274. Please note that filing a petition is not a City of Springfield process. All inquiries should be directed to the Lane County Circuit Court: Lane County Circuit Court 125 East 8th Avenue Eugene, OR 97401 https://www.courts.oregon.gov/courts/ 541-682-4020 Disclaimer: The information in this document is for informational purposes only and does not create an attorney-client relationship. This document is not legal advice. Legal advice must be tailored to the specific circumstances of each case, and nothing provided in this document should be used as a substitute for advice of legal counsel. The information contained in this document may or may not reflect the most current legal developments. Accordingly, this information is not promised or guaranteed to be correct or complete and should not be relied upon as such. Attachment 3 Page 1 of 3 PETITION TO REMOVE DISCRIMINATORY PROVISIONS Page 2 IN THE CIRCUIT COURT OF THE STATE OF OREGON FOR LANE COUNTY 1 2 Full legal name, Petitioner, vs. Property’s Address, Tax Lot, or Plat # Defendant In Rem. Case No. _____________ PETITION TO REMOVE DISCRIMINATORY PROVISIONS FROM TITLE TO REAL PROPERTY Filing fee at ORS 93.274 3 I, insert full legal name here (first, middle, and last), am the owner or part 4 owner of the property listed below, located in Lane County, Oregon: 5 ☐ Legal description of the property is attached, or 6 ☐ Legal description of the property is as follows: 7 Insert the legal description of the property (typically provided in the deed) 8 The document containing discriminatory provisions under ORS 93.270(1)(a) is 9 called insert full name of the document, recorded in Lane County as instrument number 10 insert recording number of document on date, month, and year document was 11 recorded. 12 I ask the court for an order under ORS 93.274 removing the following 13 restriction(s) from the property because they violate ORS 93.270(1)(a): 14 Copy the discriminatory provision, exactly as it appears in the document. 15 16 17 Reference: Insert section #, line #, or page # where provision appears 18 Attachment 3 Page 2 of 3 PETITION TO REMOVE DISCRIMINATORY PROVISIONS Page 3 Copy the discriminatory provision, exactly as it appears in the document. 1 2 3 Reference: Insert section #, line #, or page # where provision appears 4 Copy the discriminatory provision, exactly as it appears in the document. 5 6 7 Reference: Insert section #, line #, or page # where provision appears 8 ☐ (Optional) Additional pages of discriminatory provisions are attached. 9 ☐ (Required) I have attached a complete certified copy of the recorded instrument that 10 contains the provisions listed above or attached hereto. 11 12 DATED: Insert date of signing 13 PETITIONER: 14 15 16 17 Insert full name here 18 Mailing Address 19 City, State, ZIP Code 20 Phone (Optional) Daytime phone number 21 Attachment 3 Page 3 of 3