Transcript Document
National Vacant Properties Campaign presented by Don Chen, Smart Growth America Smart Growth America What Are Vacant Properties? • Abandoned Buildings • Single Family Residential (Owner) • Multi-Family (Absentee) • Commercial and Industrial • Vacant Lots – No Legitimate Uses • Substandard and Unsafe Buildings & Houses Hidden Community Assets • On average, 15 percent of city land is usable but vacant; equivalent to 12,367 acres (19.3 square miles) for the typical city. • Cities in the South reported an average of 19.3 percent vacant land. • In the Northeast, there is an abandoned property for every 52 households. Source: Pagano & Bowman, Brookings Institution, 2000 How Do Vacant Properties Hurt Communities? • In Philadelphia, homes within 150 feet of an abandoned and vacant property lost $7,627 of its value; within 150 to 300 feet, $6,819; within 300 to 450, $3,542. • The 11,000 vacant properties in Rhode Island’s five major cities are estimated to cost them $1.3 billion in property value. How Much Tax Revenue is Lost? and how much could be gained? • In St. Paul, a rehabilitated property is estimated to produce 11 times more tax revenue than an abandoned and vacant property. • The St. Paul study also estimated that the rehabilitation of a property “generates $13,507 in enhanced property tax revenues” because of the private investment in surrounding properties. How Do Vacant Properties Affect Other City Services? • Over 12,000 fires are reported in vacant structures every year, resulting in $73 million in property damage (70 percent are suspicious or incendiary). • In Austin, researchers found that 83 percent of unsecured vacant buildings showed evidence of illegal activities; crime rates on blocks with such properties were twice as high as similar streets without vacant properties. • In Richmond, city officials found that proximity to a vacant property was the most closely correlated factor in predicting neighborhood criminal activity. Costs of Maintenance and Safety • St. Paul, MN spends an estimated $205,304 just to maintain abandoned properties (boarding them up, cutting grass, hauling trash, shoveling snow, repairing sidewalks, etc.) • In Trenton, NJ, these maintenance costs range from $500,000 to well over $1 million per year. The Barriers to Reclaiming Vacant Properties Four Barriers to Reclaiming Vacant Properties I. Code Enforcement II. Tax Delinquency III. Title Problems IV. Local Government Policies Source: Frank Alexander, Renewing Public Assets for Community Development, LISC, 2000. I. Code Enforcement The Barriers • • • • Outdated housing and building codes Ineffective Enforcement Proceedings Time Delays Ineffective Remedies The Opportunities • • • • Code Revision – Building, Housing, Vacant Land Shift from In Personam to In Rem Jurisdiction Shorter Time Periods Super Priority Status for Abatement Liens II. Tax Delinquency The Barriers • • • • High Delinquency Rates Taxes Exceed Fair Market Value Lengthy Tax Foreclosure Procedures Bulk Sale of Tax Liens The Opportunities • • • • Reform of Tax Foreclosure Laws Shorter Time Periods Complete Notice to All Interested Parties Halt the Sale of Tax Liens III. Title Problems The Barriers • • • • Lack of Probate (Heir Property) Defunct Corporations Open Mortgages of Record Prior Foreclosures The Opportunities • Judicial Enforcement of Taxes and Liens • Title Company Role in Statutory Reforms • Notice to All Parties Revealed by Title Exam IV. Local Government Policies The Barriers • Inadequate Data on Delinquencies and Violations • Inadequate Staff for Inspections & Enforcement • Inadequate Disposition Policies The Opportunities • Creation of G.I.S. Database • Coordination Between Tax Officials and Planning Departments • Modification of Disposition Policies • Single Purpose Entities – Land Bank Authorities Preventing Abandonment • Build the capacity of property owners and managers to preserve work force housing • Housing inspection programs and ordinances • Pro active code enforcement—slumlord task forces • Community Oriented Policing partnerships • Foreclosure prevention and other ways of preserving single-family homes Assessment—Know Your Territory • Develop a property information system • Identify ‘early warning’ factors • Make it user-friendly for communities • Inventory vacant properties • Building characteristics and ownership • Investigate site conditions • Assess local govt. programs and ordinances • Understand particular local conditions affecting abandonment Stabilization • Exercise local code enforcement powers to abate unsafe/dangerous conditions • Criminal Prosecution and Civil Enforcement • Administrative Abatement Processes • Tailor the appropriate remedy to the situation • Investigate site conditions and create ownership profiles • Receivership as temporary remedy for substandard housing Rehabilitation Resources & Assistance • Financial resources & technical assistance • Rehabilitation incentives: • Grants and loans • Permit streamlining • Capacity building in property management and ownership • Apartment Owner Associations Trainee Programs • Partnerships with CDCs, nonprofit, and private financial institutions Property Transfer or Acquisition • Legal procedures – property rights – and due process • Tax delinquency and foreclosure • Other acquisition and disposition strategies • Land banking Long Term Revitalization Policies and Programs • Comprehensive plans and strategic frameworks • Affordable housing policies and programs • Building and Rebuilding Markets • GOAL: foster a climate that attracts residents and private investors Opportunities for Revitalization • Infill Development — channel growth • Affordable and Work Force Housing • Rebuilding Neighborhoods • Crime Reduction • Livable Communities and Prosperous Regions National Vacant Properties Campaign • Practitioners (Property Owners and Government Agencies) Toiling in Isolation without Plans • Complex Issues--Difficulty Making the Case for Action (Inventory, Clearing Title, Reforming Regulations) • Lack of Major Clearinghouse for Information, Best Practices and Learning • No Way to Connect with Consultants, Assistance, Experts to Help Communities Campaign Goals • Build a Coordinated Movement and a Network of Experts • Communications Tools to Make VP Reclamation a National Priority • Provide Communities with Information about Policy Innovations and Cutting Edge Research • Technical Assistance: Community Workshops and Longer-Term Intensive Partnerships Initial Progress • Assembling Partners, Funders and Advisors • Generating Buzz at Conferences (Smart Growth in New Orleans, APA in Denver) • Brochure and Web Site (www.vacantproperties.org) • Preparation of Technical Assistance and Research Papers • July 9th Roll Out Current Efforts • Articles and Reports (briefing for smart growth funders, magazine articles, op eds) • Information Resources for Internet Portal (best practices, recent research, organizational resources, case studies) • Technical Assistance Workshops; Working Directly with Some Communities (Las Vegas, NV, etc.) • Outreach through Speeches and Presentations (National Trust for Historic Preservation Conference in Denver, Partners for Smart Growth in Portland, OR) • Research & Policy Forum (June 2004) Additional Resources • National Vacant Properties Campaign www.vacantproperties.org • Smart Growth America: • www.smartgrowthamerica.org • ICMA’s Case Studies: www.icma.org/vacantproperties • LISC: www.liscnet.org/resources • Fannie Mae Foundation: www.knowledgeplex.org • Brookings Center on Urban & Metropolitan Policy: www.brook.edu