Property owners sitting on code-violating buildings in Salem have one more year to clean them up and walk away from thousands of dollars in penalties.

The Salem City Council voted Monday, June 22, to extend its Lien Forgiveness Program through June 30, 2027. The pilot program, launched in November 2025, wipes eligible code enforcement liens, penalties, fees, and interest after owners bring neglected properties into compliance with the city's property maintenance code.

The results so far have outpaced expectations. More than $220,000 in liens have been forgiven across 13 properties since the program launched, according to Michelle Nichols, the city's compliance services manager.

Among the success stories: a former Shari's restaurant on Lancaster Drive that sat vacant for nearly two years before a new owner redeveloped it into a sushi restaurant. On Winter Street NE, Salem developer Brad Box purchased a property that had accumulated roughly $200,000 in liens alone. Squatters had been entering regularly, and garbage covered the site.

"The deadline became very motivating to the property owners," Box told KATU. "That motivated the seller to sell the property and then allowed me to come in and address the non-compliance through the lien forgiveness program."

Box has cleared the site and plans to demolish the unsafe structure before redeveloping it.

The program doesn't just help existing owners. The city can facilitate the transfer of qualifying properties to new buyers who agree to correct violations. Compliance officers verify all required work is complete before any liens are forgiven.

Nichols said the city plans to mail letters to eligible property owners with "lien forgiveness program" printed on the envelope so recipients understand it's an opportunity, not a bill. If participation doubles or triples, she said, the city would consider making the program permanent.

The program's June 30, 2027, deadline gives property owners and prospective buyers 12 months to apply.