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NEWS
Bill aimed at burned-out structures passes
HUNTINGTON -- Cities and counties across West Virginia have acquired another tool in their fight against dilapidated structures.
The Senate approved a bill (HB 4038) Thursday that would give cities and counties a lien of $5,000 or 10 percent -- whichever amount is greater -- of the insurance policy proceeds to help with the removal of burned-out structures.
The bill was approved by a 31-2 vote with two absences. Sens. Clark Barnes, R-Randolph, and Dave Sypolt, R-Preston, voted against the bill. The legislation now goes to Gov. Joe Manchin for his signature. Manchin proposed the measure during his State of the State address.
City officials say the bill aims to hold property owners responsible for demolishing their burned-out structures and removing the debris. Too often, property owners pocket the insurance proceeds and leave local governments to clean up the eyesores, they say.
"The crux of this bill is putting some teeth into motivating property owners to remove their own mess," said Tom Bell, the city of Huntington's economic development director who worked on the bill. "If they don't, this gives cities and counties an adequate funding source to do it and restabilize neighborhoods."
There are 45 burned-out structures in Huntington, at least 18 of which are insured, Bell said.
The legislation is similar to a measure Huntington tried to enact last year under the state's home rule pilot program. The measure that Huntington proposed would have required insurance companies to withhold $2,000 from every $15,000 of benefits payable to a policyholder on every total fire loss within the city. The withheld proceeds were to be placed in escrow by the city and not released until all debris was removed. The measure wasn't enforced because of a lawsuit from the West Virginia Insurance Federation questioning the city's legality in making regulations that would have statewide implications.
Still awaiting passage is House Bill 4034, which allows cities to establish vacant property registration programs and charge property owners annual fees for vacant, dilapidated structures. The bill is up for a vote Friday in the Senate.
Manchin spoke of the necessity for both pieces of legislation during a tour of burned-out homes last week in Huntington.
"These bills ... are because of the city of Huntington and the fight they've been in," Manchin said during the tour. "These bills would give them the resources to fight."
