Transcript Neighborhood Initiative Program

NEIGHBORHOOD INITIATIVE PROGRAM
BEST PRACTICES FOR STRATEGIC DEMOLITION
GREATER OHIO POLICY
CENTER STAFF
Lavea Brachman
Executive Director
Alison D. Goebel
Associate Director
Marianne Eppig
Manager of Research
and Communications
OVERVIEW
• About Greater Ohio Policy Center & Ohio
Housing Finance Agency
• Overview of the Neighborhood Initiative Program
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Purpose & Overview
Program Guidelines
• Identification of Target Areas
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Target Area Plan Requirements
Identification of Target Areas
Neighborhood Types
Indicators of Neighborhood Conditions & Types
Example Target Areas
Best Practices: Youngstown and Michigan
OVERVIEW
• How to Choose Buildings for Demolition
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Developing and Prioritizing Criteria for Demolition
Potential Criteria for Demolition
Example of Building Selection
Best Practice: Youngstown
Use of Criteria to Support Demolition Decisions
Due Diligence
• Property Acquisition
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Property Acquisition & Cost Guidelines
Property Acquisition Pipelines
Environmental Review
Historic Preservation
Acquisition Timeline
Acquisition & Disposition Policies
• Reuses of Land
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Why is a Land Reuse Strategy Important?
Demolition, Cleaning & Greening
Eligible Reuses
Matching the Site & Reuse
Examples of Land Reuse
Property Maintenance
• Further Resources
GREATER OHIO POLICY CENTER:
“THINK” AND “DO” TANK
An outcome-oriented statewide non-profit
organization that develops and implements policies
and practices to:
• Revitalize Ohio’s urban cores and metropolitan
regions
• Achieve sustainable land reuse and economic
growth
GREATER OHIO POLICY CENTER
EXPERTISE
• 2010 Restoring Prosperity to Ohio, a report co-written
with the Brookings Institution
• 2012 technical assistance to the Attorney General’s
Moving Ohio Forward program for demolition funding
• 2012 Demolition Roundtable and input into “Laying the
Groundwork for Change: demolition, urban strategy, and
policy reform” by Alan Mallach, Brookings Metropolitan
Policy Program
• 2013 policy brief on Regenerating America’s Legacy
Cities
OHIO HOUSING FINANCE AGENCY
OHFA is a self-supporting quasi-public agency that
uses federal and state resources to provide housing
opportunities for families and individuals through
programs designed to develop, preserve and sustain
affordable housing throughout the State of Ohio.
OHFA is the administrator of the state’s foreclosure
prevention program, Save the Dream Ohio.
OHFA website: http://www.ohiohome.org/
OVERVIEW OF THE NEIGHBORHOOD
INITIATIVE PROGRAM
BEST PRACTICES FOR STRATEGIC DEMOLITION
OVERVIEW OF
NEIGHBORHOOD INITIATIVE PROGRAM
The Ohio Finance Agency (OHFA) received approval
from the U.S. Department of the Treasury to utilize up
to $60 million of Ohio’s remaining Hardest Hit Funds
(HHF) to assist with stabilizing local property values
through the demolition of vacant homes across Ohio.
The Neighborhood Initiative Program (NIP) is designed
to stabilize property values by removing and greening
vacant and abandoned properties in targeted areas
in an effort to prevent future foreclosures for existing
homeowners.
PURPOSE OF
NEIGHBORHOOD INITIATIVE PROGRAM
The Neighborhood Initiative Program (NIP) will fund
strategically targeted residential demolition in
designated areas within the state of Ohio.
OHFA will partner with county Land Revitalization
Corporations (“land banks”) or an entity that has
signed a cooperative agreement with an established
county land bank.
OVERVIEW OF
NEIGHBORHOOD INITIATIVE PROGRAM
NIP will be available to the 16 Ohio counties that have
an established land bank.
OHFA has issued a Request for Proposals from the
state’s county land banks.
The program will begin in early 2014 and conclude in
2017.
OVERVIEW OF NEIGHBORHOOD
INITIATIVE PROGRAM
OHFA has contracted GOPC to advise OHFA and
applicants on the implementation of the
Neighborhood Initiative Program (NIP).
Assistance includes:
• Consultation with applicants regarding best
practices for the selection of neighborhoods and
properties for the program
• Technical advice to eligible applicants in
responding to the RFP for the NIP
OVERVIEW OF
NEIGHBORHOOD INITIATIVE PROGRAM
Program applicants must focus on:
• Target areas
• Demolition and greening of abandoned residential
properties
• Preventing further reduction in property values
• Preventing possible foreclosure of existing residential
homes
GUIDELINES OF THE
NEIGHBORHOOD INITIATIVE PROGRAM
• Only vacant and abandoned 1-4 unit residential properties
with a unique address that qualify for lawful demolition under
state or federal law are eligible for NIP funding.
• Applicants will be responsible for property acquisition,
environmental assessment and remediation, demolition,
greening, and ongoing maintenance of properties.
• The maximum amount of assistance per residential property is
$25,000, which may only be used for pay off of a loan,
approved demolition, remediation and greening of the site,
maintenance, and administration for up to three years or until
the final disbursement, whichever is later.
GUIDELINES OF THE
NEIGHBORHOOD INITIATIVE PROGRAM
• NIP applicants must submit a strategic plan that
proposes selective or wholesale acquisition and
demolition of vacant and blighted properties in
target areas.
• This should be part of a larger comprehensive
strategy to stabilize home values and prevent
foreclosure.
GUIDELINES OF THE
NEIGHBORHOOD INITIATIVE PROGRAM
The strategic plan should address three key elements:
1. Identification of target areas
2. Source of properties to be acquired
3. Maintenance and/or redevelopment of vacant
land
IDENTIFICATION
OF TARGET AREAS
BEST PRACTICES FOR STRATEGIC DEMOLITION
TARGET AREA PLAN REQUIREMENTS
For each target area, applicants should explain the
reason the area was selected and how the strategy
will reduce foreclosures for existing homeowners by:
• Increasing the value of surrounding properties,
• Attracting private investment and development, or
• Supporting current investment and development.
IDENTIFICATION OF TARGET AREAS
The criteria in
these sections
of the chart
can assist in
the
identification
and selection
of target
areas for
demolition
Chart from “Laying
the Groundwork for
Change:
Demolition, urban
strategy, and policy
reform” by Alan
Mallach, Brookings
Metropolitan Policy
Program, Sept 2012
TARGET AREA PLAN REQUIREMENTS
Strategies for targeted demolition must align with an
appropriate neighborhood type.
The strongest plans will likely focus on “tipping point
neighborhoods.”
Type of Neighborhood
Appropriate Strategy
Healthy Neighborhoods
Spot demolition
Tipping Point
Neighborhoods
Targeted demolition
Revitalization
Neighborhoods
Demolition for infill
development
Redevelopment Area
Large scale demolition
for (a) redevelopment or
(b) green and maintain
NEIGHBORHOOD TYPES
NEIGHBORHOOD TYPES
TIPPING POINT NEIGHBORHOODS
• In many cases, a community’s demolition priorities
should not be in heavily abandoned and disinvested
areas, but in areas where removal of buildings is likely to
help stabilize neighborhood conditions and property
values and create potential reuse opportunities.
• Tipping point neighborhoods are often the most
responsive to targeted and coordinated resources.
• Targeted investment may have a larger impact on a
community with respect to resident confidence and
future tax revenues than wholesale demolition.
NEIGHBORHOOD TYPES
• There is no standardized set of metrics or measures
that distinguish different neighborhood types.
• While each city is unique, the continuum of
neighborhood conditions can typically be found in
most cities.
INDICATORS OF
NEIGHBORHOOD CONDITIONS & TYPES
Analyze the location and
density of:
• Foreclosure activity
• Owner-occupied buildings
• Vacant properties
• Property values (such as
clusters of high or low
property values)
• Historic districts and
properties
• Crime rates
• Building code complaints
INDICATORS OF
NEIGHBORHOOD CONDITIONS & TYPES
Analyze the location and
density of neighborhood
assets, such as:
• Recent or proposed public
or private investments
• Employment centers (e.g.
local companies)
• Major institutions (e.g. local
universities or hospitals)
• Community amenities (e.g.
public parks and spaces)
IDENTIFICATION OF TARGET AREAS
Neighborhoods that have the following features or
ongoing activities are likely to benefit the most from
strategic demolition:
• A strong social fabric, reflected in strong neighborhood or
civic associations or neighborhood-level institutions;
• Active CDC-led stabilization or revitalization activities,
preferably but not necessarily grounded in a neighborhood
or target area plan;
• Features that suggest greater market potential, such as
distinctive housing stock or location in close proximity to a
strong anchor institution; and
• A significant planned public investment in an area, such as
a new school or public transportation route.
IDENTIFICATION OF TARGET AREAS
The applicant should seek information and input from
representatives of community development
corporations and other entities engaged in
neighborhood revitalization, as well as
representatives of neighborhood associations in
areas potentially targeted for demolition, to help
both identify priorities and strategies, and to evaluate
specific buildings.
IDENTIFICATION OF TARGET AREAS
• What are the set of
priorities identified by the
county and participating
communities?
• Does demolition fit into the
local government’s
comprehensive plan of
redevelopment for the
overall community for
improving property values,
and increasing private
investment and
redevelopment?
DEMOLITION IN TARGET AREAS
Once the key target area—whether a block face, a
larger area of a few city blocks, or a corridor—has
been identified, all of the buildings that cannot
realistically be reused in the area should be
demolished.
For example, if there are three derelict abandoned
buildings on a block face and two are removed, the
effect on resident confidence and property values is
limited; the remaining blighted property will continue
to do almost as much harm as the three that
previously stood there.
BEST PRACTICE: YOUNGSTOWN
Public, private, and non-profit investments are
targeted to Crandall Park North, Lincoln Park, and
Idora because these neighborhoods have:
• Existing community networks and block groups
among neighbors that could be strengthened
relatively easily
• Majority owner-occupied homes, despite lower
rates of occupancy
• Access to community amenities like Mill Creek Park
(one of the largest metro parks in the nation) and
Stambaugh Golf Course
• Architecturally unique and attractive residences
EXAMPLE TARGET AREAS
Crandall Park North,
Lincoln Park, and Idora
Neighborhood in
Youngstown are target
areas for strategic
demolition because they
are tipping point
neighborhoods.
BEST PRACTICE:
MICHIGAN DEMOLITION STRATEGY
The State of Michigan’s demolition strategy will focus on
demolition of blighted or abandoned property that:
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Assist in the stabilization of neighborhoods with high rates of
foreclosure prevention services and/or homeownership, or
other tipping point indicators.
Present a visual impediment along key corridors.
Is in direct support of proposed investment of public or
private funds including properties that will be redeveloped for
residential or commercial use.
Is directly adjacent to or across from recent public or private
investment, proposed investment, or other assets designated
as critical investments or institutions by state or local officials.
Is critical for investment in or improvement of infrastructure,
public parks or other locally or state endorsed projects.
HOW TO CHOOSE BUILDINGS
FOR DEMOLITION
BEST PRACTICES FOR STRATEGIC DEMOLITION
HOW TO CHOOSE BUILDINGS
FOR DEMOLITION
The selection of buildings for demolition should be
based upon the:
• Set of priorities identified by the county and
participating communities
• Market and neighborhood conditions
• Feedback from engaged stakeholders
• Property availability and cost
HOW TO CHOOSE BUILDINGS
FOR DEMOLITION
• Demolition decisions will not be clear-cut.
• Decisions will involve balancing many different
factors.
• Developing criteria for demolition decisions can
assist the process.
DEVELOPING & PRIORITIZING
CRITERIA FOR DEMOLITION
• Applicants should identify and prioritize criteria to
guide their demolition activities.
• Criteria can be ranked or weighted to account for
their relative priority.
• Prioritization should be based on existing community
and city priorities.
DEVELOPING & PRIORITIZING
CRITERIA FOR DEMOLITION
• Since each county is unique, the significance—and
therefore the weighting—of criteria should be
tailored to the local context.
• If developed to fit the local context, criteria can be
used to help make strategic decisions that are more
likely to be appropriate for local communities.
POTENTIAL CRITERIA
FOR DEMOLITION
The criteria in
this section of
the chart can
assist in the
identification
and selection
of buildings for
demolition
From “Laying the
Groundwork for
Change:
Demolition, urban
strategy, and policy
reform” by Alan
Mallach, Brookings
Metropolitan Policy
Program, Sept 2012
QUALITY & CHARACTER OF BUILDING
Does the building have architectural or historical
value, either in itself or as part of a coherent
ensemble?
• Demolish the building if it is physically obsolete.
• Preserve the building if it is attractive, of high quality, or of
architectural or historic value.
• Properties listed on a federal historic register are not eligible
for NIP funding for demolition. Properties located in historic
districts will be subject to local historic preservation
legislation, which may or may not allow for demolition.
BUILDING CONDITION
What is the condition of the building and what is the
likely cost to rehabilitate it for productive use?
• Demolish the building if it is physically obsolete and if the
cost to rehab the building significantly outweighs its value.
• Preserve the building if it is attractive, of high quality, or of
architectural or historic value.
• A building’s value can be determined through:
• An Auditor’s appraisal
• Services such as Zillow (which may not be as reliable)
• Real estate “broker price opinions”
NUISANCE & BLIGHTING EFFECT
Does the building have a blighting effect on the
surrounding area, or does it constitute a present or
potential nuisance—a threat to public health or safety?
• Demolish the building if its nuisance impact and the harm that
it is doing in its present condition (in the absence of immediate
reuse potential) outweighs the benefits of saving it for possible
future use.
• Preserve the building if the reuse potential of the building, even
if not immediate, outweighs the current harm that it does in its
present condition, particularly if enhanced efforts are made to
secure or stabilize the property. Political and/or public support
for preserving the building may help to determine this.
NUISANCE & BLIGHTING EFFECT
Ohio Revised Code provides state definitions of a
“blighted parcel” and “nuisance.”
• A “blighted parcel” is generally a property that is
dilapitated, unsanitary , unsafe, vermin infested, or
that poses a direct threat to public health or safety.
• For more details, see http://codes.ohio.gov/orc/gp1.08
• A “nuisance“ is generally an activity on or condition
of a property that is harmful or annoying to others.
• For more details, see http://codes.ohio.gov/orc/3767
DOES THE BUILDING POSE A DANGER
TO PUBLIC HEALTH OR SAFETY?
• Does the building fit
“blighted parcel”
criteria?
• Does the building pose
an environmental or
public safety concern?
If the answer is “yes” to
either of these questions,
demolition of the property
may be desirable.
CONTRIBUTION TO TEXTURE
Does the presence of the building contribute
meaningfully to the existing neighborhood texture,
and would it be compromised by the building’s
removal?
• Demolish the building if it is located in an area where the
neighborhood fabric has largely been lost through
incompatible land uses and demolitions.
• Preserve the building if it is located in an area where the
neighborhood fabric is still strong, and the building’s
presence contributes to that fabric.
REUSE POTENTIAL
What potential redevelopment or revitalization
opportunities, if any, will the demolition of the building
create?
• Demolish the building if the demolition will facilitate a
comprehensive rebuilding or revitalization strategy in the
area.
• Preserve the building if demolition will result in an unused
vacant lot rather than an opportunity for redevelopment or
revitalization.
EXAMPLE OF BUILDING SELECTION
• Building is a blight to
the surrounding
community.
• Demolition of the
building is coordinated
with local revitalization
efforts and community
plans.
BEST PRACTICE: YOUNGSTOWN
PROPERTY RANKING FOR DEMOLITION
Demolition criteria to rank properties for demolition
desirability:
• Property condition
• Proximity to vacant and occupied homes
• Active neighborhood group or block-watch
• Focus neighborhood of an organization
BEST PRACTICE: YOUNGSTOWN
PROPERTY RANKING FOR DEMOLITION
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A Rating
• Excellent, no visible signs of
deterioration
• Well maintained and cared for
• New construction or renovation
• Unique, historic detailing
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B Rating
• Needs basic improvements
• Needs minor painting
• Needs removal of weeds or
landscaping
• Needs to be cleaned
C Rating
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Some cracking of brick and wood
Major painting required
Crumbling concrete
Cracked or damaged
D Rating
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Major cracking of brick, wood rotting
Broken or missing windows
Missing brick and siding
Open holes in roof
F Rating
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House is open and a shell
Ransacked and full of trash
In danger of collapse
Immediate safety hazard to
neighborhood
USE OF CRITERIA TO SUPPORT
DEMOLITION DECISIONS
•
Criteria will not only legitimize demolition decisions, but
also will maximize the value of demolition and provide
the greatest impact on communities.
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Quantifying metrics for criteria can help with demolition
decisions.
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Applicants can use metrics for criteria to describe how
demolition activities would impact and aid target
areas and their surrounding communities.
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Applicants can use metrics to describe how demolition
activities further current revitalization activities and
goals already outlined by the community.
DUE DILIGENCE
Inspections
• Some level of pre-acquisition due diligence is necessary, even if the
intended disposition is demolition.
• Prior to acquisition, there is no shortcut to a physical on-site property
inspection. Staff or hired inspection vendors should look at the property
from various perspectives.
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Is the home vacant?
Are there squatters?
Does the home have a realty "For Sale" sign?
Consider other indicators that are noted throughout this presentation
• In the case of tax foreclosed vacant and abandoned property, there is
typically no opportunity to observe the interior of a home unless the
home is open and unsecured. Exterior inspections should still occur with
pending tax foreclosures.
DUE DILIGENCE
Inspections
• Properties acquired from third parties (Fannie Mae, HUD,
housing court, REOs), permit pre-acquisition access by county
land banks onto properties to determine interior and exterior
physical conditions.
• A standardized property inspection form should be developed
by the county land bank and filled out. The form should
identify key exterior conditions, occupancy, and primary
interior conditions (mechanical, electrical, plumbing, roof,
foundation, basement, etc.). This allows land bank staff to
track the general trajectory of the property (rehab, hold,
demolition) once it the information is entered into the land
bank database.
DUE DILIGENCE
Being strategic requires available and credible data and research.
Depending on the county, common databases include GIS, Auditor's data,
Treasurer's data, Clerk of Court's dockets, Sheriff's data, Recorder's data
and private sector real property databases.
Useful information for analyzing a particular acquisition, on a spatial basis,
include:
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Surrounding tax delinquency
Surrounding private foreclosures status
Surrounding pending tax foreclosures
Surrounding code violations and condemnation notices
Surrounding active building permits
U.S. postal records showing vacancy
Surrounding land bank or municipal lots
Other planning districts
PROPERTY ACQUISITION
BEST PRACTICES FOR STRATEGIC DEMOLITION
NIP PROPERTY ACQUISITION
GUIDELINES
Property eligibility
• Only vacant and blighted 1-4 unit residential properties that
qualify for lawful demolition under state or federal law
qualify for NIP funding.
• Properties must be located in a target area that is part of a
comprehensive strategy to stabilize home values and
prevent foreclosure.
NIP PROPERTY ACQUISITION
GUIDELINES
Property cost guidelines
• The maximum amount of assistance will be $25,000 per
property, which may only be used for payoff of an existing
loan, approved demolition, remediation and greening of
the site, or maintenance and administration for up to three
years or until final disbursement, whichever is later.
• The applicant must acquire or already own the property
being demolished with a loan of non-NIP funds.
ACQUISITION & DISPOSITION POLICIES
• To ensure that the acquisition and demolition of a
property results in improvement to the surrounding
area, land banks should develop and adopt
policies regarding acquiring, holding, maintaining
and disposing of properties.
• These policies must be submitted with the
application for funding. Applicants should inform
OHFA of any changes or updates to these policies.
OHFA will require certification that the acquisition is
consistent with the applicant’s policy.
REUSES OF LAND
BEST PRACTICES FOR STRATEGIC DEMOLITION
REUSES OF LAND
• Demolition will lead to vacant land.
• Applicants will want to prioritize demolition of
properties that have specific re-use potential.
• Some parcels may remain vacant. Land banks must
establish protocol for maintaining vacant land
under the NIP.
WHY IS A LAND REUSE STRATEGY
IMPORTANT?
• Proximity to a neglected vacant lot subtracts 20
percent from the base value from a nearby home.
• A home near a stabilized lot—one that has been
improved through cleaning and greening—
increases the home’s base value by approximately
15 percent.
(From “Public Investment Strategies: How They Matter for Neighborhoods in Philadelphia” by Susan M.
Wachter and Kevin C. Gillen of The Wharton School, University of Pennsylvania)
DEMOLITION & GREENING
• The goal of the NIP is to stabilize property values by
demolishing and greening vacant and abandoned
properties in targeted areas in an effort to prevent future
foreclosures for existing homeowners.
• NIP will provide funds for greening and maintaining
properties through 2017 or until disposition for an eligible
use.
• Partners will be reimbursed up to $1,500 per property for
the cost of greening a site upon submission of an invoice
with appropriate documentation.
CLEANING & GREENING
• Partners should consider several factors in
determining the appropriate method of greening a
site after demolition, including:
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Size
Location
Condition of the soil
Availability of water and sunlight
Slope
CLEANING & GREENING
• Eligible costs for greening include:
• Planting grass, trees or flowers
• Installing fencing, benches or beds
• When planting cannot be conducted immediately
following demolition, the land bank can submit a
separate invoice at a later date, but not more than
nine months following demolition.
ELIGIBLE REUSES
Eligible land uses include:
• Transfer to an adjacent homeowner for a side lot
program
• Transfer of the property to local government
• Transfer of the property to a private entity
MATCHING THE SITE & REUSE
• A single residential lot may be suited to cleaning
and planting with transfer to an adjacent property
owner (side lot program)
• Adjacent lots along an urban corridor may be
conducive to public use as a greenway or
recreation (transfer to local government)
• Vacant blocks may be appropriate for temporary
greening and holding for future redevelopment
(transfer to private entity)
EXAMPLE OF LAND REUSE
Removed house to create green side lot on
Brentwood Street in Youngstown, Ohio.
Photos courtesy of Youngstown Neighborhood Development Corporation
EXAMPLE OF LAND REUSE
Removed abandoned sixplex and replaced with
an urban agriculture site
in Youngstown.
Photos courtesy of Youngstown
Neighborhood Development
Corporation
LAND REUSE
Demolition can
prepare a lot for
reuse in the future
PROPERTY MAINTENANCE
• While the long term goal of acquisition and
demolition of vacant properties may be
redevelopment, the market may not be ready in
the short term.
• Land banks must have a strategy for maintaining
properties in a manner that enhances the
neighborhood.
• NIP will provide funds to support ongoing care of
sites, including mowing, trimming and removal of
trash.
PROPERTY MAINTENANCE
• NIP will reimburse up to $400 for current and future
maintenance of the site, upon submission of an invoice
with appropriate documentation.
• Based on an average expense of $200 per property, the
actual cost of maintenance may be less for properties
that are quickly transferred to another owner for eligible
use, but may be greater for properties that are held for
more than two years.
• Land banks will be permitted to aggregate the
reimbursements for maintenance into one account that
can be allocated over all of the NIP properties and used
until 2017.
FURTHER RESOURCES
BEST PRACTICES FOR STRATEGIC DEMOLITION
FURTHER RESOURCES
• Land Bank Playbook by Western Reserve Land
Conservancy’s Thriving Communities Institute
• NSP Land Banking Toolkit from OneCPD Resource
Exchange
• “Laying the Groundwork for Change: Demolition,
urban strategy, and policy reform” by Alan Mallach,
Brookings Metropolitan Policy Program, Sept 2012
FURTHER RESOURCES
• “Vacant to Vibrant: A guide for revitalizing vacant lots in
your neighborhood” produced by Carnegie Mellon
University Heinz School of Public Policy and
Management, Fall 2006
• “Policy Recommendations: Greening Vacant Lots for
Pittsburgh’s Sustainable Neighborhood Revitalization”
produced by Carnegie Mellon University Heinz School of
Public Policy and Management, Fall 2006
• “Vacant Property: Strategies for Redevelopment in the
Contemporary City” by Luke Wilkinson, Georgia Institute
of Technology, MCRP 2011
• “Green Investment Strategies: How They Matter for
Urban Neighborhoods” by Wachter, Gillen and Brown of
the Wharton School of Business at University of
Pennsylvania, 2007
GREATER OHIO POLICY CENTER
Greater Ohio Policy Center is available to advise
applicants through:
• Email
• Phone
• In person, as needed
For our assistance, please contact:
Marianne Eppig
Manager of Research and Communications
[email protected]
614-224-1087
QUESTIONS?
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http://greaterohio.org/
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