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NEWS BRIEFS
Council to consider fire insurance ordinance
HUNTINGTON — The first of four proposals under the city of Huntington’s home rule plan will go before City Council on Tuesday.
Council members will discuss the first reading of an ordinance that requires insurance companies to transfer a portion of fire insurance claim proceeds to the city if the property owner is not in good standing with the city.
The ordinanace is intended to prevent the abandonment of fire-damaged properties and hold property owners more accountable, said Charles Holley, director of development and planning.
When a structure is gutted by fire, it's common practice for the property owner to pocket the insurance claim check and leave the city to pay for the cleanup and neighbors to deal with problems that arise from living next to a charred structure, he said.
About 40 percent of the fires in Huntington in recent years have occurred on insured property, Holley said.
"But we can count on one hand how many people actually used their insurance money to tear down their property," he said.
Under the ordinance, people whose property is a total loss by fire are required to get a certificate of good standing from the city. If the certificate is denied, the property owner's insurance company will transfer to the city $2,000 for every $15,000 in damages.
If the property owner fails to get a certificate of good standing from the city within 90 days, the city can use the withheld funds to satisfy any delinquent fees on the property. And if the property owner fails to get a certificate within 180 days, the city can use the withheld funds to tear down the property.
Huntington was one of four West Virginia cities in May that was approved to participate in a five-year home rule pilot program. The other proposals under Huntington’s plan include creating a land bank authority, tougher fee-collection methods and implementing a 1 percent occupation tax. The tax would replace the $2-a-week user fee, and the business and occupation tax would be reduced as well.
All home rule proposals require approval by City Council before they can be enacted.
City Council meets at 7:30 p.m. Tuesday, Oct. 14, at City Hall, 800 5th Ave. The council normally meets on the second and fourth Monday of each month, but City Hall is closed today because of Columbus Day.
