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 and the City of Pittsburgh Land Reserve
For City Agencies and Employees June 4th, 2010
Staff Contact: Bethany E. Davidson – 412.391.6732 x201 or [email protected]
Overview
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Who / What is VPWG?
Brief History of Land Recycling
State of Vacancy in Pittsburgh
Treasurer’s Sale and Land Reserve
Overview
• CDCs and Land Recycling
• Question and Answer
VPWG
• What: Work on issues of blight and
abandonment in the City of Pittsburgh
• When: Formed in 1988
• Who: Open to any and all in the city
– Made up of CDCs and CBOs, representatives of
elected offices, government agencies
– 2 Neighborhood Co-Chairs
• How: Staffed for 12 years through CDBG,
housed at PCRG (Pittsburgh Community
Reinvestment Group)
– Meet monthly as neutral cross-sector table to discuss
policy, vet ideas, understand current property issues
Issues
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Scalable Land Recycling System
Land Acquisition Processes
Tax Collections
Code Enforcement
Policy [Local, State, Federal]
– SideYard Sales/Garden Waiver Program
– CARC and GLS Lien Portfolios
– Disruptive Properties and Rental Permitting
• Demolitions and Greening
• Access to Data / Parcel Information
Methods of Acquisition
• City of Pittsburgh Sideyard Sales Program
• Bank / Real Estate Owned (REO) properties
– PCRG Partnerships with local & national lenders
• Second Class City Treasurer’s Sale
– Intent is tax collection, not foreclosure mechanism
• City of Pittsburgh Property Reserve
– Non-profit community development organizations
– 300 property maximum (234 currently)
Vacancy in the City of Pgh
• 112,918 Total Residential Parcels in the City
• 15,487 Vacant Residential Parcels in the City
(13.7%)
• 84,989 Single Family Homes in the City
• 4,576 Single Family Homes in the City not
receiving mail delivery due to vacancy (5.4%)
• Vacant lots and properties are concentrated in
several neighborhoods
Provided by the Community Information System (CIS)
Land Reserve History
• Reserve established by Council Bill 402 of 1998
Enabled creation of a land reserve, process for
lien buybacks, and provisions for future lien
portfolio sales
• City lien portfolio sold in 1996 to Capital Asset
Research Corporation (CARC), bought back in
2007
• County Lien portfolio sold at same time – only
partially bought back
• 3TB – Three Taxing Bodies agreement
Land Reserve 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)
• Formal Request for Time Extension (properties with clear
title)
• 30 day default notification from City
• 1 year restriction on utilizing Reserve if in Default
Properties
Eligible
• 1+ prior Years Tax
Delinquent
• Vacant/Abandoned
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Ineligible
Payment plan
Sheriff’s
Sale/Foreclosure
Bankruptcy
Paid in Full
Already in Process
Private Bidder
Side Yard Sale
Other 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
– Developer and financing commitments
Land Reserve 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)
 Formal Request for Time Extension (properties with clear
title)
 30 day default notification from City
 1 year restriction on utilizing Reserve if in Default
Application and Selection
 Project Feasibility Application
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Strategic (not speculative) development plan
Development and financing plan
Due diligence
Community/political support
 Partners
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Urban Redevelopment Authority
City Finance, Real Estate Department
Pittsburgh Community Reinvestment Group
Allegheny County Dept. of Economic Development
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
Current System Issues
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Quantity Limit
Capacity
Resources
Maintenance
Timeline
Complex
Question / Answer
Thank You