Transcript Vacant Property Working Group (VPWG)

Pittsburgh Community Reinvestment Group
1901Centre Avenue, Suite 200
Pittsburgh, PA 15219
(412) 391-6732
Vacant Property Working Group (VPWG)
Property Acquisition, Land Reclamation Tools
and the
City of Pittsburgh Land Reserve
Staff Contact: Bethany E. Davidson – 412.391.6732 x201 or [email protected]
Overview
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Brief History of Land Recycling
Who / What is VPWG?
State of Vacancy in City of Pittsburgh
Land Acquisition Tools
Land Reclamation Tools
Question and Answer
Definitions
• Parcel: includes structures and lots
• Vacant and Abandoned have different
meanings:
– Vacant-No one is currently residing in the structure
(vacation home can be vacant, eg)
– Abandoned-the owner has walked away from their
interest in the property
• There are many indicators of blight, USPS/gas service shutoffs and
unpaid taxes are some of the most commonly used)
• Note: There is no common definition for blight.
Vacancy in the City of Pgh
• 112,918 Total Residential Parcels in the City
• ~25-27,000 Vacant Residential Parcels in the
City (23.3%) (OPENPGH, 2011)
• 84,989 Single Family Homes in the City
• ~10,000 (12%) not receiving mail delivery due to
vacancy (national avg: 10%)(PNCIS 2009)
• Vacant lots and properties are concentrated in
several neighborhoods
Provided by the Community Information System (CIS)
VPWG
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Vacant Property Working Group
Advance policy and programmatic solutions to
blight and abandonment issues in the Pittsburgh
urban core**
Formed in 1988
Staffed for 12 years through CDBG, housed at
PCRG
Open table to anyone in the City and County
Made up of CDCs and CBOs, representatives of
elected offices & government agencies, partner
nonprofits
Current Issues
• Land Acquisition
– Continuous Improvement and coordination of
Treasurer’s Sale Process and the Land
Reserve, move towards scalable system
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Lien Portfolios (GLS & Jordan Tax Service)
State Legislation
Local Policy
Local Programs
– Demolitions and Greening
– Planning
• Access to Data / Parcel Information
Methods of Acquisition
• Second Class City Treasurer’s Sale
– City of Pittsburgh Property Reserve [PPR]
– Side Yard Sales Program
• Bank / Real Estate Owned (REO) properties
– PCRG Partnerships with local & national lenders
– GSE-gov’t sponsored entity- portfolios (Fannie Mae,
Freddie Mac, HUD)
• Conservatorship
• Sheriff’s Sale
• Direct Purchase (from private entity, City,
URA, eg)
• Purchase of Bank Note
Pittsburgh Property Reserve
PPR History
• Group studied Cleveland model and proposed a
cost effective method of land acquisition of City of
Pittsburgh 501c3 community based groups
• Reserve established by Council Bill 402 of 1998
• Utilizes Tax Foreclosure process (Treasurer’s
Sale-T/S) to recycle abandoned properties
• 3TB – Three (Property) Taxing Bodies agreement
– City of Pittsburgh
– Allegheny County
– Pittsburgh Public Schools
• Note: T/S’ main goal is to collect taxes, not
to recycle land
PPR – What is it?
• Tool to recycle land affordably in areas:
– Butfor the cost of land acquisition, revitalization might
otherwise occur
– Market is weak
– Property is otherwise ‘underwater’ (ie encumbrances
are in excess $amount than the property is worth)
• Intent is tax collection, not land foreclosure
mechanism
• Exclusive to non-profit community based
organizations
• Virtual Reserve (‘bank’) with a 300 property
maximum cap at any one time
PPR-Advantages
• Partnership with City of Pittsburgh:
• Utilize State-legislated legal process to
acquire land affordably which produces full
clear (‘clean’) title at the end
• City Departments take onus of doing the
legal and financial work
• Properties are available at end of process
for approximately $3,000 each
– City can only recover 3rd party costs (not
internal staff time, eg)
PPR Disadvantages
• Takes Time
– properties identified 5 months before sale and
are not ‘clear’ until at least 12 months postsale
• Many Steps
• Numerous ‘loops’ where a parcel can ‘fall
out’ of the recycling process
General PPR
Usage Provisions
• CDC must:
– Have a redevelopment plan in place, including proof
of (current or future) ability to finance and complete
project
– Adhere to designated process and all timelines
– Remove properties from reserve in designated time (2
or 5 years)
– If necessary, submit a formal request for a time
extension (properties with clear title)
• 1 year restriction on utilizing Reserve if in
Default of provisions
– Will receive 30 day default notification from City
PPR Basic (In)Eligibility
Eligible
• 1+Years Tax
Delinquent
• Vacant
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Ineligible
Tax Payment Plan
Sheriff’s Sale/
Foreclosure
Bankruptcy
Late Payment in Full
Already in T/S Process
– Private Bidder
– Side Yard Sale
Property Research/
Due Diligence
Property Information
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Street address
Ward
Lot/block number
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Owner(s) of record
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Must be vacant
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Tax delinquency
At least 1+ prior ys delinquent
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– Property information
– County tax delinquency
Location
Vacancy status
Liens or other foreclosure activity
Data Sources
County Real Estate
City of Pittsburgh Finance
– City tax delinquency
– Ineligibility Criteria
County Office of Court Records
– Foreclosure activity
– Other judgments and claims
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PNCIS
– Gas shutoffs
– USPS service
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Department of City Planning
– SNAP Data
– Open Space Database
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PCRG
– GLS Lien Data
I. Property Information Request
1. Electronic request submitted to PCRG
• Address
• Ward, Lot/Block
• Owner
• Vacancy status
• Lot/Structure
2. Information retrieved from City Finance
• Confirm tax delinquency (length, amount)
• Bankruptcy/payment plans
• Scheduled for Treasurer’s or Sherriff's Sale
3. Eligibility for Treasurer’s Sale confirmed to community
group
II. Application and Selection
 Project Feasibility Application
– Strategic (not speculative) development plan
– Development and financing plan (commitments not
necessary)
– Due diligence (URA reviews application)
– Community/political support (elected representatives)
 Major Partners
– Urban Redevelopment Authority
– City of Pittsburgh Finance Department, Real Estate
Division
– Pittsburgh Community Reinvestment Group
– Allegheny County Dept. of Economic Development
III.
Treasurer’s Sale &
Redemption Period
Properties identified for sale
– URA approval
– No redemption or payment plan
Treasurer’s Sale
– Public bids (no clear title)
90 day Redemption Period
– Opportunity for CDC to request revenue
properties
IV. Deposit and Promissory
Vacant Lots
Cost :$100 plus 3rd
party fees
($200 Deposit +$400
Promissory)
Up to 5 years in Reserve
Structures
Cost: $1000 plus 3rd party
fees
($200 Deposit + $800
Promissory)
Up to 2 years in Reserve
3rd party costs:
• Legal notification (mailings and public notices)
• Title search and clearing costs
• Maintenance and inspections
V. Clearing Title & Settlement
 Title clearing procedures
• Petition to quiet title
• Lienholder period to answer
 Satisfaction of liens with buyback funds
 Court Authorized Clear Title
 Settlement (Closing Eligible, but not required)
Land Reserve Outcomes
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Approximately 300 Properties fully recycled as of 12/31/2008
178 Properties currently in reserve, pending development
35 properties recycled since January 1, 2008
75 Parcel’s Liens currently being bought back all with
redevelopment plans
• 23 parcels through September’s Treasurer’s Sale
• 20 parcels through December 2008 Treasurer’s Sale
• Planning for April Sale 2009
Other T/S Acquisition Issues
• Inclusion of City owned property
– Three Taxing Body guidelines
• Inclusion of occupied property
– Relocation costs
– VPWG policy agenda item
• Property reserve and for-profit developers
– CDC must split profits with City
– ‘Flipping’ properties [Immediate ReSale]
– Developer and financing commitments
Acquisition Tool:
Conservatorship
& other State Laws
Acquisition Tool:
REO Portfolios
Acquisition Tool:
Side Yard Sale
Reclamation Tool:
ReddUp
GreenUp
Taking Care of Business
Reclamation Tool:
Garden Waiver / Lease
Question / Answer
Thank You